Greetings! Today we will look at the process of "closing the month" in a real company providing services. We will see how our accounting theory works in practice. At the same time once again learn to "look into the turnovers."
According to the basics of accounting theory and our new knowledge, let's try to predict what we should see after the “closing of the month”. For clarity, we will take as a basis the Turnover Balance Sheet (OSV) of our enterprise. Here is an example of OSV.
Isn't that what we expect to see?
- 26 account should be at the end of the month without a balance.
those. BalanceClosingDebit(SKD) = 0 - Without a balance, there must be 90 and 91 accounts
- In Turnovers for the period, 99 accounts should have some amounts
Let's see how our "turnover" has changed.
I will comment a little.
Look, the 26th account “closed” at the end of the month - it became 0. This is good. Here is the boo wiring showing how it happened.
As you can see, the expense accounts "transfer" their accumulated amounts from their Credit to Debit to the account for recording the financial result. Remember the financial result formula? What accounts are involved?
So, in Debit 90 and 91 accounts, the expenses of our company for the current month are collected.
Account transactions 99
Now we can calculate the financial result for each of them. The calculation of the financial result is some kind of action on 90, 91 accounts. As you remember, 90 and 91 accounts after summing up the financial result should be equal to 0. And the final result of financial activity will be on account 99.
Zero balances on 90 and 91 accounts should be in the whole account. Sub-accounts of these accounts will have balances until December 31, before the procedure - balance reformation. But more on that later.
This is how the situation for 90, 91 and 99 accounts looks like in our SALT. This situation occurs after the "transfer" of expenses to account 90, BUT before closing 90, 91.
Look, I've highlighted the key accounts from the whole SWS to show the "closing of the month" intermediate stage. We see that the 26th account was closed: the balances on it are equal to zero. And, in our case, the amount of the 26th account was displayed in the Debit of the 90th account.
In our example, the firm has only 26 accounts. If there were 44 accounts, it would also be closed and the amount from it would be transferred to the Debit of 90 accounts.
Thus, Debit 90 of the account collects amounts from the company's expense accounts, plus accumulates the cost of goods sold, products. The cost price, as you understand, is available for manufacturing and trading firms. We have only accumulated expenses from account 26.
Now we see that on accounts 90 and 91 different amounts were formed for the Debit turnover (DO) and Credit turnover (KO). It turns out that for each of these accounts, there is a closing balance: 1705778.54 and 11374.53. Now for us there is not much difference where this balance is - in Debit or Credit. We only care about one thing:
Closing 90 and 91 accounts involves such actions so that the balance turns to zero. Those. we must make such entries for each account in correspondence with 99, so that our numbers - 1705778.54 and 11374.53 - go away. Those. the remainder would be zero. This is the rule for closing 90 and 91 accounts in general - for them the balance must be equal to zero.
And in order for the balances to become zero, we must transfer the existing differences between TO and KO (these are the final balances) by posting to account 99. In other words,
- for account 90 we will "add" 1705778.54 to Debit.
- for 91 accounts we will "add" to Credit 11374.53
The next report shows how we “add the necessary numbers” through postings, thereby closing accounts 90 and 91. The closure of these accounts will be correct if after - the balances on them at the end of the period (month) become 0.
As you can see, the closing of accounts 90 and 91 goes through their internal sub-accounts 90.9 and 91.9 in correspondence with account 99. Where 90.9 (91.9) will stand in the Debit or Credit of the transaction depends on where there are not enough amounts so that the account at the end of the period gives 0.
Conclusion
Now we have considered the most-most-most simple option, what the “turnover” and the principle of “closing the month” look like for companies providing services.
For trading organizations, SALT looks a little different. For example, we will see 41 and 44 accounts. For production - there will be 20, 25, 40, 43, 44.
All enterprises can have 76 and 73 accounts. In addition, many enterprises have 01 accounts with their subsidiary accounts 02 and 08 accounts.
All this diversity is not as difficult as it seems at first glance. Whatever accounting accounts you have to deal with in accounting, everything will come to the “turnover”, where it will be necessary to take the amounts from all accounting accounts of Expenses and “move” them to accounts 90 and 91. Then, from accounts 90 and 91, move the resulting balances to account 99. And so every month until December. In December, at the "closing of the month" there will be another operation called "balance sheet reformation".
For the “closing of the month” process, there are a few more basic knowledge that affect the rules for transferring amounts to account 90. We consider all this in practical classes and learn how to solve such accounting situations from an event to the close of the month.
Addition
The article raised questions, which was to be expected. Accounting is not a difficult subject, but all its numbers, rules make it difficult, confusing and confusing. The very first questions showed that more explanations should be given to this article. The following article answers two important questions:
- should more details be given in the OSV
- in OSV on account 26 different amounts - is this a mistake in the article?
P.S. Standard situation: a "dying" enterprise, the closing of the year was told to be done by another accountant, whose closing was always "made by the 1C program itself." And in this case, the whole year the closing of the months was done by manual postings by another chief accountant. Accordingly, now at the close of the month - December (balance reformation), nothing is closed automatically. There is no point in setting it up now. The accountant only knows that everything should go to account 84. And what intermediate entries should be, he finds it difficult to say. So everything flowed smoothly to me. Therefore, I ask you not to discuss the accountant, but to help with the postings.
If it is difficult, that is, auditors or PBU
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Accounting entries at the close of the financial year for legal entities are compiled in the following sequence:
- Closing of accounts for cost accounting (including indirect costs).
- Closing 90 accounts, calculating the company's profit.
- Reformation of the balance sheet: closing the main accounts for accounting for the income and expenses of the company, analyzing the financial condition of the enterprise, the efficiency of entrepreneurial activity, obtaining an indicator of the net profit or net loss of the organization.
The closing of the year is a summary of the financial results of the organization's activities as of December 31 of the reporting year.
Before closing, it is necessary to double-check all the basic data and carry out mandatory routine operations:
- Verify mutual settlements with counterparties, analyze the documentation carried out in accounting, restore the sequence of displaying business activities (analysis of accounts 50, 51, 60, 62, 76, etc.).
- Calculate salaries to employees, taxes and insurance premiums at the end of the year (sch. 70, 68, 69).
- Analyze the balance of goods and inventories (accounts 41, 10, 43). Take inventory of the warehouse and adjust the data if necessary.
- Calculate depreciation on fixed assets, conduct a revaluation (acc.
- Check the costs incurred (monitoring of accounts 20, 29, 25, 26, 44, etc.).
- Calculate all received income and expenses of the company (balances from accounts 90 and 91 are written off to account
Account 99 "Profit and loss". Accounting for financial results. postings
Should be borne in mind! According to the legislation of the Russian Federation, the submission of financial statements to the tax authorities is carried out before March 31 of the year following the reporting one. However, all verification activities before the close of the year should be carried out gradually throughout the 4th quarter.
After the preparatory procedures are completed, the year is closed - the balance sheet is reformed, in which the net profit or net loss of the company is revealed.
Key accounting entries at the end of the year
Sales analysis
To summarize the results of the activities of organizations for ordinary activities, it is necessary to analyze the sub-accounts of account 90:
- 90.1: This sub-account displays all the receipts received by the company for the goods sold. Sub-account balance - revenue received for the period:
Dt50.51 Kt90.01 - payment received;
Dt62 Kt90.01 - sales revenue is reflected;
- 90.02: cost of goods sold on sale:
Dt90.02 Kt41 - write-off of the book value of goods;
Dt90.02 Kt20 - cost of work performed;
- 90.03: displays VAT accrued payable to regulatory authorities:
Sub-account data are compared monthly, and the balance is transferred to sub-account 90.09, which displays the calculated financial results: Dt - loss; Kt - profit.
At the close of the period, the balances of 90.09 fall into the debit of account 99 with the profit received for ordinary types of business activities and on credit account. 99 for unprofitable work.
Analysis of non-operating activities
For transactions not related to the normal business activities of the organization, the analysis is carried out on the basis of monitoring sub-accounts of 91 accounts:
- 91.01: sub-account is intended for information about other income of the company. These may include: exchange differences, excess inventories as a result of inventory, income from loans provided to counterparties, etc.:
Dt50.51 Kt91.01 - income received from the sale of own equipment;
Dt73 Kt91.01 - income from loans granted in the form of interest paid;
- 91.02: information is collected here on all non-operating costs: bank commissions, shortages of goods, tax fines and penalties, etc.:
Dt91.02 Kt66.67 - payment of interest for the use of borrowed funds;
Dt91.02 Kt01 - decrease in the cost of equipment based on the results of revaluation.
Sub-account data are compared monthly, and the balance is transferred to sub-account 91.09, which displays the calculated financial results: Dt - loss; Kt - profit.
At the close of the period, the balances of 90.09 fall into the credit of 99 accounts with the profit received for ordinary types of entrepreneurial activity and into the debit of the account. 99 for unprofitable work.
balance reformation
After the closing of all main accounts in accordance with the rules of accounting and analysis of all collected information, the balance sheet is reformed - the overall financial result is identified and attributed to the account. 84 for further distribution. The reformation carried out can tell about the effectiveness of the organization's use of labor and material resources:
- Dt99 Kt84 - display of undistributed profit during the year;
- Dt84 Kt99 - information on uncovered losses.
Decisions on the distribution of profits or ways to cover losses are made at the general meeting of owners after the approval of the annual financial statements.
A practical example of compiling postings at the end of the year
Kolosok Limited Liability Company sells office chairs purchased from suppliers for 3,000 rubles (including VAT 18% - 457.62). During the year, the purchase price did not change, so the selling price remained constant: 5,000 rubles (including 18% VAT - 762.71). During the year, all goods were sold (40 units).
In addition, the company pays for bank services, which amounted to 890 rubles.
Accounting entries for business transactions:
- Dt41 Kt60: 101,694.20 rubles - posting office furniture to the warehouse for further sale;
- Dt19.03 Kt60: RUB 18,305.80 - VAT from the supplier;
- Dt51 Kt90.01: 200,000 rubles - proceeds from the sale of seats;
- Dt91.02 Kt41: RUB 101,694.20 - write-off of the prime cost of chairs (the prime cost of Kolosok LLC includes only the purchase price of suppliers);
- Dt90.03 Kt68.02: 30,508.47 rubles. - calculation of VAT payable to the tax authorities;
- Dt91.02 Kt51: 890 rubles. - bank commissions.
Results for the 90th account at the end of the month:
Dt: RUB 101,694.20 + RUB 30,508.47 = 132,202.67 rubles.
CT: 200 000 rub.
Final balance: 67,797.33 rubles - profit from the sale.
Results for 91 accounts at the end of the month:
Dt91.09 Kt91.02: 890 rub. - loss.
Closing of the year:
Dt90.09 Kt99: 67,797.33 rubles. - profit from ordinary types of entrepreneurial activity is displayed.
Dt91.09 Kt99: 890 rub. - loss from non-operating activities.
According to the results of the reporting year, Kolosok LLC received profit, which will be included in retained earnings:
Dt84 Kt99: 66,907.33 rubles. - determination of the financial results of the company's economic life at the end of the year, as of December 31.
Questions and answers on the topic
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What is balance reform?
Publication date
balance reformation is a procedure that is carried out annually, especially in large companies and corporations, by decision of the board of directors. Its purpose is to establish the final financial result for the past year. This is done on the basis of a comparison of indicators of received revenue and profit and data on the use of funds.
balance reformation- this is a process that can only be carried out if there is an appropriate permission or order of an authorized person. As a rule, the board of directors, convened annually, approves the representative by general vote, or investors resolve issues directly at the meeting.
Balance reformation: postings
So, first of all, you should familiarize yourself with the accounting entries compiled by the enterprise specialist. Of particular interest is account 80 called “Profit and Loss”, since it contains amounts that reflect the receipt of funds and their direction for certain needs. Accordingly, on the credit side, there is a loss of financial resources, and on the debit side, their inflow in the context of sources. It becomes clear that the position of the company at the reporting date largely depends on the balance of this account.
After the decision was made that balance reformation should be carried out, the accountant, based on the wishes and requirements of the management team, distributes profits. Most of it is intended for owners, it is divided into shares in proportion to the amounts of investors' deposits. If, as a result of this operation, a surplus has formed, then it is attributed to a special account 88, which has been given the speaking name “Retained earnings of past years”. Further, this amount is partially sent to reserve accounts to cover unforeseen expenses.
At present, not all enterprises believe that balance reformation is an important and necessary element in accounting practice. However, this procedure really helps the management team to visually show investors and owners how much money they receive from the operation of the company and where other resources are allocated. In this regard, it can be concluded that reformation serves as a fairly effective mechanism that does not lose its relevance at all times.
This area also has its drawbacks and difficulties.
The procedure itself is not a super-complex scheme that requires an investment of time and effort. Often problems arise due to illiterate bookkeeping. Often the "stumbling block" is the mistakes made at the time of closing accounts and summing up.
Closing 99 accounts
In order to avoid such significant errors, companies should pay special attention to the audit of financial documents. High-quality and timely verification will increase not only the productivity of work, but also the degree of confidence on the part of the verification services.
The annual financial statements need to be finalized first, then balance reformation, in the process of which the profit of the previous reporting period is written off and other accounts are closed. The unallocated balance will go to cover the losses of previous years. The economic meaning of this procedure is a slight improvement in the balance sheet. In the future, it will be easier to work with such a document, since all the necessary postings have been made, and the accounts have been closed.
A legal entity has the right to independently choose a specific method of reformation, having previously noted the method in the documents. In addition, this process requires no less accuracy and literacy from a specialist, since third-party audit organizations also carefully check the formatted balance sheet.
balance reformation
When compiling annual financial statements, it is necessary to reform the balance sheet in order to start accounting "from a new page" in the new year. First of all, it is necessary to close accounts 90 "Sales", 91 "Other income and expenses" and 99 "Profit and losses". As a rule, balance sheet reform entries are dated December 31st.
Closing account 90 "Sales"
During the year, account 90 collects data on the organization's income and expenses for ordinary activities. To account 90 "Sales" various sub-accounts are opened. To account for sales proceeds, a subaccount 90-1 "Sales proceeds" is opened. The cost of sold products (goods, works, services) is reflected in sub-account 90-2 "Cost of sales". The amount of value added tax included in the price of products sold (goods, works, services) is taken into account on subaccount 90-3 "Value Added Tax", and the amount of excise tax provided for in the price of products sold is taken into account on subaccount 90-4 " excises". If the organization pays export duties, then additionally you need to use subaccount 90-5 "Export duties". Firms can use other sub-accounts, for example, 90-6 "Sales tax", 90-7 "Sales expenses", 90-8 "Administrative expenses".
To reflect the financial result from ordinary activities, subaccount 90-9 "Profit / loss from sales" is used.
Attention! At the end of each month, the accountant compares the amount of debit turnover on subaccounts 90-2 - 90-8 with the credit turnover on subaccount 90-1.
Debit 99 account
The revealed result represents the profit or loss on sales for the month. This amount is written off at the end of the reporting month to account 99 "Profit and Loss". If a profit is received from sales, a posting is made:
Debit 90-9 Credit 99
If a loss is received, an entry is made:
Debit 99 Credit 90-9
It turns out that at the end of each month there is no balance on the synthetic account 90 "Sales". However, all sub-accounts of this account have debit or credit balances that accumulate. You cannot write off these balances during the year.
On the last day of December of the reporting year, after writing off the financial result for December, all subaccounts must be closed inside account 90 "Sales". At the same time, the balances on them are transferred to subaccount 90-9:
Debit 90-9 Credit 90-2 (90-3, 90-4, 90-5, 90-6, 90-7, 90-8)
- the balance of sub-accounts of account 90 was written off;
Debit 90-1 Credit 90-9
- written off the balance of the sub-account "Revenue".
As a result of these entries, as of January 1 of the new reporting year, the sub-account of account 90 "Sales" does not have a balance.
Example. At the end of 2002, the accounting records of the production enterprise Vasilek LLC included a balance on the loan of sub-account 90-1 in the amount of 630,000 rubles. And the debit balances on account 90 "Sales" were as follows:
subaccount 90-2 - 345,000 rubles;
subaccount 90-3 - 100,000 rubles;
subaccount 90-6 - 30,000 rubles;
subaccount 90-7 - 80,000 rubles;
subaccount 90-9 - 75,000 rubles.
Reforming the balance sheet, the accountant of Vasilek LLC will make the following entries:
Debit 90-1 Credit 90-9
- RUB 630,000 - written off the balance of the sub-account "Revenue";
Debit 90-9 Credit 90-2
- 345 000 rub. - written off the balance of the sub-account "Cost of sales";
Debit 90-9 Credit 90-3
- 100 000 rub. — written off the balance of the sub-account "Value Added Tax";
Debit 90-9 Credit 90-6
- 30 000 rub. — written off the balance of the sub-account "Sales tax";
Debit 90-9 Credit 90-7
- 80 000 rub. - written off the balance of the sub-account "Sales costs".
Closing of account 91 "Other income and expenses"
Operating and non-operating income and expenses are accounted for on account 91. The structure and procedure for its use are similar to the structure and procedure for using account 90 "Sales".
Three sub-accounts are opened for account 91:
- 91-1 "Other income";
- 91-2 "Other expenses";
- 91-9 "Balance of other income and expenses".
In addition to these enterprises, they can also introduce additional sub-accounts for separate accounting of non-operating income and expenses:
- 91-3 "Non-operating income";
- 91-4 "Non-operating expenses".
Note. At the end of each month, the accountant compares the turnover on sub-accounts: debit turnover on sub-accounts 91-2 and 91-4 with credit turnover on sub-accounts 91-1 and 91-3.
The revealed result represents the profit or loss for the month. This amount is written off at the end of the reporting month to account 99 "Profit and Loss". If a profit is made, the posting is written:
Debit 91-9 Credit 99
- reflected the amount of profit for the month.
And if a loss is received, then a record is made:
Debit 99 Credit 91-9
- reflects the amount of loss received per month.
Thus, at the end of each month, account 91 has no balance. However, the sub-accounts of this account still have a debit or credit balance.
After writing off the financial result for December - December 31 - the sub-account of account 91 must be closed. To do this, balances from other subaccounts are written off to subaccount 91-9 with the following entries:
Debit 91-9 Credit 91-2 (91-4)
- written off the balance of sub-accounts "Other expenses" and "Non-operating expenses";
Debit 91-1 (91-3) Credit 91-9
- written off the balance of sub-accounts "Other income" and "Non-operating income".
Example. In 2002 Vasilek LLC recorded the following data on account 91:
- operating income - 40,000 rubles;
- operating expenses - 35,000 rubles;
- non-operating income - 123,000 rubles;
- non-operating expenses - 103,000 rubles;
- profit from operating and non-sales operations - 25,000 rubles.
At the end of the year, the accountant, reforming the balance sheet, made the following entries:
Debit 91-1 Credit 91-9
- 40 000 rub. - written off operating income;
Debit 91-9 Credit 91-2
- 35 000 rub. - written off operating expenses;
Debit 91-3 Credit 91-9
- RUB 123,000 - written off non-operating income;
Debit 91-9 Credit 91-4
- RUB 103,000 - non-operating expenses are written off.
Closing account 99 "Profit and loss"
During the year, the financial result from ordinary activities, as well as from operating and non-operating income and expenses, is written off to account 99. In addition, it collects extraordinary income and expenses. It also reflects the debt to the budget for income tax and fines for tax violations. Thus, the balance of account 99 is equal to the net profit or loss of the current year. With the final entries in December, this balance is transferred to account 84 "Retained earnings (uncovered loss)".
If the company made a profit at the end of the year, then the following entry is made in accounting:
Debit 99 Credit 84
- written off the net profit of the reporting year.
Example. In 2002 LLC "Vasilek" has the following results:
- profit from ordinary activities - 75,000 rubles;
- profit from operating and non-sales operations - 25,000 rubles;
- income tax - 24,000 rubles.
The following entries were made in the accounting records:
Debit 90-9 Credit 99
- 75 000 rub. – revealed the financial result from the sale of products;
Debit 91-9 Credit 99
- 25 000 rub. - reflects the balance of other income and expenses;
Debit 99 Credit 68 subaccount "Calculations for income tax"
- 24 000 rub. - income tax is charged;
Debit 99 Credit 84
- 76 000 rub. (75,000 + 25,000 - 24,000) - the final financial result has been revealed.
If the organization at the end of the year received a loss, then the entry will be as follows:
Debit 84 Credit 99
- written off the loss of the reporting year.
Example. We will use the conditions of the previous examples, adding only that in 2002 the penalties accrued by the tax inspectorate of Vasilek LLC amounted to 80,000 rubles.
The following entry was made in the accounting:
Debit 99 Credit 68 sub-account "Settlements with the budget for penalties"
- 80 000 rub. - the amount of penalties payable to the budget has been accrued.
Thus, according to the results of the year, Vasilek LLC received a loss of 4,000 rubles. (80,000 - 76,000).
Reforming the balance sheet, the accountant will post:
Debit 84 Credit 99
- 4000 rub. - written off the loss of the reporting year.
O. Kurbangaleeva
Supervisor
methodology department
accounting and auditing
LLC "Audit Alliance"
Account 99 in accounting is maintained by sub-accounts, depending on the calculations of profit and loss:
- balances on accounts 90 and 91 form the financial result on account 99;
- income tax from account 68.04 is closed to account 99;
- temporary and permanent differences form a conditional income/expense;
- the reformation of the balance sheet closes account 99 for retained earnings (uncovered loss) on account 84.
Account 99 "Profits and losses" is characterized as accumulative for positive and negative financial results of economic activity of enterprises.
How is the structure formed?
In accounting, account 99 refers to active-passive, since on a loan you can see generalized information about the profits received, on a debit - all losses incurred as a result of reflected expenses.
Profits and losses are generated by:
- 90 "Sales" - used by companies to reflect income and expenses from sales of core activities;
- 91 “Other income and expenses” - it accumulates income and expenses from other activities;
- conditional income/expense from the application of the tax is accrued;
- penalties are reflected.
Permanent and deferred tax liabilities and assets take an active part in the formation of the results.
Important point! Score 99 is synthetic. Analytical accounting should be kept without fine detail, grouping the information necessary to generate a report on financial results.
Sub-accounts on which information is collected:
- 99.01 "Profits and losses from economic activities."
- 99.02 "Income tax".
- 99.07 "Other profits and losses".
- 99.09 "Net profit/loss".
In turn, sub-accounts are subdivided into smaller groups. So, 99.02 is formed as a result of movements:
- 99.02.01 "Contingent income tax expense";
- 99.02.02 "Conditional income from income tax";
- 99.02.03 "Permanent tax liability (asset)";
- 99.02.04 "Recalculation of deferred tax assets and liabilities".
Transfer of income and expenses
Account 99 is an indicator of the final financial result from the company's activities, whether it will be negative or positive, depends on the movements in accounts 90 and 91.
Accounts 90 and 91, according to accounting rules, must be closed monthly, that is, the balance is reset to zero. They are closed with the help of correspondence from 99 accounts.
Account 99 example
The company receives income from the rental of premises. Acts and invoices for rent must be issued on the last day of the month, which is confirmed by the letter of the Department of Tax and Customs Policy of the Ministry of Finance of Russia dated June 5, 2018 No. 03-07-09 / 38397.
Therefore, the revenue is finally formed at the end of the month and must be closed immediately to reset the balances to zero. Recordings are being made:
- Dt 62.01 “Settlements with buyers and customers” Kt 90.01 “Revenue” - rent in the amount of 5,000,000 rubles was accrued;
- Dt 90.03 "Value Added Tax" Kt 68.02 "Value Added Tax" - VAT payable in the amount of 18% of the amount of revenue of 762,711.86 rubles is charged;
- Dt 90.02 "Cost" Kt 20 "Main production" - the cost of rent was reduced from the costs incurred in the amount of 3,200,000 rubles.
When comparing the results in the reporting period on sub-account 90.01, a positive credit balance is obtained in the amount of 1,037,288.14 rubles. Account closing posting:
- Dt 90.01 Kt 99.01 in the amount of 1,037,288.14 rubles profit was received from the sale of services.
If the result was a loss, it should be closed to debit 99 of the account.
How is income tax reflected?
In addition to sales, the necessary influence on the formation of 99 accounts is exerted by income tax. Unlike accounting, tax accounting may or may not accept certain incomes and expenses for taxation purposes. Differences between accounts are called permanent and temporary.
Reference! The differences form deferred tax assets (DTA) or deferred tax liabilities (DLT) depending on who remains in debt as a result of the firm's operation.
If the company's debt to the IFTS is obtained, then ITs begin to arrive, which are recorded on account 77 "Deferred tax liabilities".
The debt of the IFTS to the enterprise obtained as a result of calculations is designed to ensure the reduction of IT. They are recorded on account 09 "Deferred tax assets".
Accounts 09 and 77 correspond with 68.04 " Profit tax", Which must be closed monthly on account 99. In this way, income tax is accrued in accounting and transferred to account 99 for reflection in the income statement. Posting plan:
- Dt 68.04 Kt 77 - tax with IT has been assessed;
- Dt 99 Kt 68.04 - the conditional income tax expense was reduced;
- Dt 09 Kt 68.04 - there was a loss with IT;
- Kt 68.04 Dt 99 - conditional income from the company's losses is accrued.
Why reset the profit and loss totals in accounting?
After all the numbers fall on the 99th account, you need to close it. Regardless of other accounts involved in the formation, account 99 will be reset to zero during the annual balance reformation. All data of the organization with the help of this routine operation will be reflected in the account "Retained earnings (uncovered loss)":
- Dt 99 Kt 84 - net profit received;
- Dt 84 Kt 99 - there was a current loss.
The purpose of operations on account 99 is the plan of the enterprise to see the end of their labors to make a profit. For reporting, it can be used when reconciling with Form No. 2.
Important point! Account 99 in the balance sheet after closing at 84, the result is reflected in special line 1370 in section III "Capital and reserves" of the liability. By subtracting this line from the other lines of the section, a very significant indicator for organizations of any sphere is obtained - net assets, by which one can judge financial stability.
The legal status depends on the current fiscal policy, as the Tax Code is constantly being amended.
That synthetic accounting is maintained on synthetic accounting accounts in accordance with the Chart of Accounts for accounting for the financial and economic activities of organizations (Order of the Ministry of Finance dated October 31, 2000 No. 94n). We will talk about account 99 in our material.
Account 99 "Profit and loss"
In accordance with the Chart of Accounts, account 99 “Profit and Loss” is necessary to summarize information on the formation of the final financial result of the organization in the reporting year.
It is on this account that profit or loss from ordinary activities and other operations is accumulated during the year.
Debit 99 is profit or loss
Monthly synthetic accounts 90 "Sales" and 91 "Other income and expenses" are closed ("zeroed"). This is due to the fact that the excess of the debit or credit turnover of these accounts is attributed to account 99.
Let's show what was said on the example of account 90.
During the month, goods were sold in the amount of 118,000 rubles, incl. VAT 18%. The cost of sales is 85,000 rubles. There were no other transactions on account 90.
Despite the fact that turnover continues to accumulate on sub-accounts to account 90 throughout the year (they close only on December 31), the synthetic account 90 itself must be closed at the end of each month. To do this, on the last day of each month, credit and debit turnovers are compared:
In order for account 90 to be closed at the end of the month, it is necessary to debit it for 15,000 rubles:
Thus, account 90 closed:
If at the end of the month the debit turnover of account 90 turned out to be greater than the credit turnover, then a loss occurs, which is reflected in the reverse entry: Debit 99 - Credit 90.
Similarly, profit and loss are revealed for other types of activities, income and expenses from which are taken into account on account 91:
Debit 91 - Credit 99 means that profit has been generated for other activities at the end of the month.
Debit 99 - Credit 91 means that there was a loss on other income and expenses for the month.
Account 99 - for income tax calculations
Account 99 during the year also reflects the amount of accrued, permanent tax liabilities and assets and payments for recalculations of this tax from actual profit, as well as the amount of tax sanctions due. So, the accrual of a conditional income tax expense in accordance with PBU 18/02, as well as simply income tax on the basis of a declaration, if accounting for calculations under PBU 18/02 is not kept, will look like this: Debit 99 - Credit 68. The same the entry will reflect the accrual of fines and penalties to the budget for income tax, VAT and other taxes.
Sanctions against extra-budgetary funds (for example, PFR) must be calculated as follows: Debit 99 - Credit 69 "Calculations for social insurance and security."
If accounting for profit settlements is maintained in accordance with PBU 18/02, then debit account 99 can also correspond, in particular, with account 09 “Deferred tax assets”. So, accounting entry D99 K09 is made when writing off a deferred tax asset in the event of disposal of the object for which it was accrued.
Account closing 99
At the end of the year, account 99 is reset to zero with the difference being credited to account 84 “Retained earnings (uncovered loss)”: the so-called “balance sheet reformation” takes place. At the end of the year, posting Debit 99 - Credit 84 means that the identified total profit for the year for all activities is included in the profits (losses) of previous years. And the loss according to the results of the year is reflected: Debit 84 - Credit 99.
Thus, the answer to the question “Profit on the debit or credit of account 99” is as follows: during the year, the balance on account 99 in credit means profit, and on debit - loss. Accordingly, debiting account 99 during the year means recognizing a monthly loss (as well as accruing income tax and sanctions), and lending - profit. Consequently, crediting account 99 at the end of the year during the reformation of the balance sheet means that the year ended with a loss, and debiting (Debit account 99 - Credit account 84) - profit was received at the end of the year.
20 Mar 2010 10:37
The reformation of the balance sheet consists in closing the accounts that reflected the financial results of the company during the year. It includes zeroing the balance of all sub-accounts opened to accounts 90 "Sales" and 91 "Other income and expenses", and closing account 99 "Profits and losses".
As a result, the revealed amount of net profit or loss for the past year is transferred to account 84 "Retained earnings (uncovered loss)". Thus, the organization starts the new financial year, as it were, from scratch - with zero balances on the accounts for recording financial results and sub-accounts opened for them.
The reformation of the balance sheet is carried out at the end of the reporting year, after all business transactions for the year are reflected in the company's accounting records. In accounting, it is drawn up by the final entries dated December 31 of the reporting year.
Step 1. We close accounts 90 "Sales" and 91 "Other income and expenses"
During the year, account 90 takes into account the income and expenses of the organization for ordinary activities, and account 91 - other income and expenses.
Note. Income from ordinary activities is the proceeds from the sale of products and goods, as well as receipts related to the performance of work and the provision of services (clause 5 of PBU 9/99).
Note. Expenses for ordinary activities are expenses associated with the manufacture and sale of products, the purchase and sale of goods, the performance of work, the provision of services (clause 5 of PBU 10/99).
Accounts 90 and 91 must be closed monthly. This is stated in the Instructions for the Application of the Chart of Accounts for Accounting for the Financial and Economic Activities of Organizations (hereinafter referred to as the Instruction). That is, at the end of each month, it is necessary to compare the debit and credit turnovers on the sub-accounts of account 90 "Sales" and determine the financial result from sales for the reporting month. The result obtained by the final turnover for the month is debited from sub-account 90-9 "Profit/loss from sales" to account 99 "Profit and loss".
Similarly, during the year, account 91 "Other income and expenses" is also closed. Comparing the debit turnover on subaccount 91-2 "Other expenses" and the credit turnover on subaccount 91-1 "Other income", the accountant determines the balance of other income and expenses on a monthly basis. The revealed result (profit or loss) at the end of the month is debited from sub-account 91-9 "Balance of other income and expenses" to account 99.
Reference. What about other income and expenses?
In accordance with paragraph 7 of PBU 9/99 and paragraph 11 of PBU 10/99, other income and expenses are income and expenses related to:
With the provision for a fee for temporary use or temporary possession and use of the organization's assets (if this is not the subject of the company's activities);
Granting for a fee the rights arising from patents for inventions, industrial designs and other types of intellectual property (if this is not the subject of the company's activities);
Sale, disposal and other write-off of fixed assets and other assets other than cash (except for foreign currency), products, goods;
Participation in the authorized capital of other organizations (if this is not the subject of the company's activities).
In addition, other income (expenses) includes:
Fines, penalties, forfeits received (paid) for violation of the terms of contracts;
Receipts in compensation for losses caused to the organization (expenses for compensation for losses caused by the organization);
Profits (losses) of previous years, identified (recognized) in the reporting year;
Interest received for the provision of the organization's funds for use (paid by the organization for the receipt of funds, credits, loans for use);
Amounts of accounts payable and depositor (receivable) indebtedness for which the limitation period has expired;
Receipts (expenses) arising as a consequence of emergency circumstances of economic activity (natural disaster, fire, accident, nationalization, etc.);
Amounts of revaluation (markdown) of assets;
Exchange differences;
Other income and expenses.
Other income is also recognized as assets received free of charge, profit from joint activities (profit received by the organization under a simple partnership agreement), as well as interest for the bank's use of funds held on the organization's account with this bank.
Other items include expenses on payment for the services of credit institutions, deductions to valuation reserves and funds directed to charity, sports, cultural and other similar events.
If profit from sales or other activities is revealed, an entry is made in accounting:
Debit 90-9 (91-9) Credit 99
Written off the amount of profit received per month.
In the event of a loss, the posting looks like this:
Debit 99 Credit 90-9 (91-9)
Written off the amount of loss received per month.
Thus, at the end of each month, accounts 90 and 91 have a zero balance. However, the sub-accounts of these accounts continue to have balances that accumulate throughout the reporting year and are reset only through the reformation of the balance sheet as of December 31.
Note. Postings for closing accounts 90 and 91 must also be made at the end of December of the reporting year.
In other words, the reformation of accounts 90 and 91, carried out at the end of the year, just consists in zeroing the balances of all sub-accounts opened to them. Sub-accounts to account 90 are closed by internal entries to sub-account 90-9 "Sales profit / loss", and sub-accounts to account 91 - to sub-account 91-9 "Balance of other income and expenses". At the same time, the following entries are made in accounting as of December 31 of the reporting year:
Debit 90-1 "Revenue" Credit 90-9 "Profit / loss on sales"
Closed sub-account for accounting of sales proceeds;
Debit 90-9 "Profit / loss on sales" Credit 90-2 "Cost of sales" (90-3 "VAT", 90-4 "Excises")
A sub-account for accounting for the cost of sales (VAT, excises) was closed;
Debit 91-1 "Other income" Credit 91-9 "Balance of other income and expenses"
A sub-account for accounting for other income was closed;
Debit 91-9 "Balance of other income and expenses" Credit 91-2 "Other expenses"
Closed sub-account for other expenses.
Example 1. LLC "Reformation" is engaged in the wholesale trade in food products. During 2008, the organization received proceeds from the sale of goods in the amount of 9,440,000 rubles. (including VAT - 1,440,000 rubles). The cost of goods sold amounted to 4,500,000 rubles, general business expenses and sales expenses - 1,700,000 rubles. The amount of other income (balance on subaccount 91-1) for 2008 is 220,000 rubles, other expenses (balance on subaccount 91-2) - 320,000 rubles. The balances on the sub-accounts of accounts 90 and 91 as of December 31, 2008 are presented in Table. one.
Table 1. A fragment of the balance sheet of Reformation LLC for 2008
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balance at the end of period |
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Name |
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Cost of sales |
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Profit/loss on sales |
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Other income and expenses |
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Other income |
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other expenses |
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Balance of other income and expenses |
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According to the results of 2008, the organization received a profit from sales in the amount of 1,800,000 rubles. (9,440,000 rubles - 1,440,000 rubles - 4,500,000 rubles - 1,700,000 rubles) and a loss from other activities - 100,000 rubles. (320,000 rubles - 220,000 rubles).
With final entries dated December 31, 2008, Reformatsiya LLC closes sub-accounts opened for accounts 90 and 91:
Debit 90-1 Credit 90-9
RUB 9,440,000 - the sub-account for accounting of sales proceeds is closed;
Debit 90-9 Credit 90-2
RUB 6,200,000 (4,500,000 rubles + 1,700,000 rubles) - a sub-account for accounting for the cost of sales was closed;
Debit 90-9 Credit 90-3
RUB 1,440,000 - closed sub-account for VAT;
Debit 91-1 Credit 91-9
220 000 rub. - the sub-account for accounting of other income is closed;
Debit 91-9 Credit 91-2
320 000 rub. - closed sub-account for other expenses.
Step 2. Close account 99 "Profit and Loss"
Account 99 "Profits and losses" is intended for the formation of the final financial result from the work of the organization in the reporting year. During the year, it reflects profits or losses from ordinary activities and the balance of other income and expenses (in correspondence with accounts 90 and 91, respectively). In addition, account 99 takes into account fines and penalties on taxes and fees, as well as the amount of accrued income tax and recalculations on it.
At the same time, if an organization applies RAS 18/02, it cannot reflect the accrual of income tax by making an entry on the debit of account 99 and the credit of account 68. To determine the amount of tax, such a company must adjust the conditional expense (income) for tax on profit. Moreover, according to paragraph 20 of PBU 18/02, the conditional expense (income) for income tax should be accounted for on a separate sub-account opened to the profit and loss account. Consequently, organizations applying RAS 18/02 additionally reflect on account 99 the amounts of accrued conditional income tax expense (income) and permanent tax liabilities (assets).
Note. The conditional expense (conditional income) for income tax is determined as the product of accounting profit (loss) for the reporting period and the income tax rate (clause 20 PBU 18/02).
Note. A permanent tax liability (asset) is understood as the amount of tax that leads to an increase (decrease) in tax payments for income tax in the reporting period (clause 7 PBU 18/02).
Unlike accounts 90 and 91, account 99 does not close during the year. The balance formed on it shows the intermediate results of the financial and economic activities of the organization.
At the end of the reporting year, it is necessary to compare the debit and credit turnover on account 99. The credit balance on account 99 reflects net profit, and the debit balance means that the organization received a loss at the end of the reporting year.
In accordance with the Instruction, account 99 is closed with a closing entry dated December 31, and the amount of net profit received is transferred to the credit of account 84 "Retained earnings (uncovered loss)". If, based on the results of the organization’s work for the year, a loss is generated, its amount is debited to the debit of account 84. That is, you need to make one of the following entries:
Debit 99 Credit 84, sub-account "Retained earnings of the reporting year",
Written off net (undistributed) profit of the reporting year;
Debit 84, sub-account "Uncovered loss of the reporting year", Credit 99
The uncovered loss of the reporting year is reflected.
Thus, the balance on account 99 becomes zero. But after all, sub-accounts are also opened for account 99. What to do with them?
The Instruction does not say anything about the need to close sub-accounts opened for account 99. Despite this, it is advisable to reform account 99 according to the same rules as account 90 or 91. In other words, we recommend introducing an additional sub-account 99-9 "Balance" to account 99 profit and loss". It will form the final financial result - net profit or loss for the reporting year, which at the end of the year is subject to transfer to account 84. At the end of the reporting year, all subaccounts opened to account 99 are closed by internal entries to subaccount 99-9. Such postings for zeroing sub-accounts are dated December 31 of the reporting year.
Note. The construction of analytical accounting for account 99 should ensure the formation of the data necessary for compiling a profit and loss statement (Section VIII of the Instruction).
Recall that when opening sub-accounts to account 99, you need to focus on the composition of the indicators of Form N 2 "Profit and Loss Statement". That is, if necessary, to account 99, you can open sub-accounts of several orders. For example, to subaccount 99-1 "Profit / loss before taxation" (subaccount of the 1st order), it is advisable to provide at least two more subaccounts of the 2nd order, namely:
Sub-account 99-1-1 "Profit / loss from sales";
Sub-account 99-1-2 "Balance of other income and expenses".
If there is a multi-level analytics on account 99, the reformation of this account is carried out in stages. If subaccounts of the 2nd order are opened, the balances on them are transferred by internal records to the corresponding subaccount of the 1st order. Then the balance formed on sub-accounts of the 1st order is written off to sub-account 99-9. Only after that, the balance formed on subaccount 99-9 (net profit or loss for the reporting year) is transferred to the debit or credit of account 84.
Note. The working chart of accounting accounts, including synthetic and analytical accounts (sub-accounts), the organization approves as part of the accounting policy (clause 3, article 6 of the Federal Law of November 21, 1996 N 129-FZ).
Example 2. Let's use the condition of example 1. Let's say Reformation LLC applied PBU 18/02 in 2008. Balances on sub-accounts opened by the organization to account 99, as of the end of 2008, are given in Table. 2.
Table 2
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balance at the end of period |
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Name |
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Profit and loss |
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Profit/loss up to |
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Profit/loss on sales |
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The balance of other income and |
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income tax |
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Conditional expense/income per |
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Permanent tax |
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Tax sanctions |
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Profit and loss balance |
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In accounting, Reformation LLC closes the sub-accounts of the account with 99 entries dated December 31, 2008:
Debit 99-1-1 Credit 99-1
RUB 1,800,000 - closed sub-account 99-1-1 for profit / loss from sales;
Debit 99-1 Credit 99-1-2
100 000 rub. - closed sub-account 99-1-2 for profit/loss from other activities;
Debit 99-1 Credit 99-9
RUB 1,700,000 (1,800,000 rubles - 100,000 rubles) - subaccount 99-1 was closed for accounting for profit / loss before tax;
Debit 99-2 Credit 99-2-1
408 000 rub. - closed sub-account 99-2-1 for recording conditional income/expenditure for income tax;
Debit 99-2 Credit 99-2-2
12 000 rub. - closed sub-account 99-2-2 for recording permanent tax liabilities (assets);
Debit 99-9 Credit 99-2
420 000 rub. (408,000 rubles + 12,000 rubles) - subaccount 99-2 was closed for accounting accruals for income tax;
Debit 99-9 Credit 99-3
1000 rub. - sub-account 99-3 for tax sanctions was closed.
After all subaccounts of the 2nd and 1st orders are closed, the organization compares the debit and credit turnovers on subaccount 99-9. The debit turnover on this sub-account amounted to 421,000 rubles. (420,000 rubles + 1,000 rubles), credit - 1,700,000 rubles. The credit balance for subaccount 99-9 is 1,279,000 rubles. (1,700,000 rubles - 421,000 rubles). This means that according to the results of 2008, LLC "Reformation" received a profit in the amount of 1,279,000 rubles.
With the final entry dated December 31, 2008, the organization closes subaccount 99-9 and transfers the net profit of the reporting year to the credit of account 84:
Debit 99-9 Credit 84, sub-account "Retained earnings of the reporting year",
RUB 1,279,000 - written off net profit for 2008.
Step 3. We reflect the distribution of net profit
In a limited liability company, only the general meeting of its participants has the right to decide on the direction of the organization's net profit for certain purposes, and in a joint-stock company - the general meeting of shareholders. The fact is that the decision on this issue belongs to the exclusive competence of the general meeting of participants (shareholders) of the company. The basis - paragraphs. 3 p. 3 art. 91 and paras. 4 p. 1 art. 103 of the Civil Code of the Russian Federation.
As a rule, the net profit received according to the results of the financial year is directed to the payment of dividends to the participants or shareholders of the company and to replenish the reserve fund. If the organization has uncovered losses of previous years, by decision of the participants (shareholders) of the company, the net profit of the reporting year can be used to pay off such losses. However, prior to the annual meeting of participants (shareholders) of the company, the accountant is not entitled to make any postings on the distribution of net profit in accounting. For example, if there are losses of previous years and profits of the reporting year, he does not have the right to offset these indicators.
An exception to this rule are cases when the goals for which net profit should be directed and a fixed amount (in percentage terms or in the form of a certain amount) of deductions for them are indicated directly in the charter of the company. Then, without waiting for the appropriate decision of the general meeting of participants (shareholders), the accountant records the distribution of net profit for such purposes: annual deductions to the reserve fund or partial repayment of losses from previous years. Naturally, it is necessary to inform the participants (shareholders) of the company about the fact of distribution of profits and specific amounts of deductions before the annual meeting.
Note. The procedure for distributing net profit can be prescribed directly in the charter of the company.
Here are other options for using net profit:
Increasing the authorized capital of the company (subject to the introduction of appropriate amendments to the constituent documents);
Creation of special-purpose funds (accumulation fund, production and social development fund, consumption fund, charitable fund, social sphere fund, corporatization fund for company employees, etc.).
The decision on the distribution of the company's net profit for specific purposes is documented in the minutes of the general meeting of participants (shareholders). This document serves as the basis for making appropriate entries in accounting.
According to the rules enshrined in the Instruction, analytical accounting on account 84 should provide information on the directions for the use of funds. That is, the organization has the right to open the sub-accounts it needs for this account.
Payment of dividends to participants (shareholders)
If part of the profit of the reporting year is directed to the payment of dividends to the participants (shareholders) of the organization, the following entries are made in accounting:
Debit 84, sub-account "Retained earnings of the reporting year", Credit 70
The debt on the payment of dividends to the participants (shareholders) who are employees of the organization is reflected;
Debt on payment of dividends to other participants (shareholders) is reflected.
Note. Dividends on preferred shares of certain types may also be paid out of special funds of the joint-stock company formed earlier for these purposes.
At what point should these entries be made - on December 31 of the reporting year or on the date of the general meeting of participants (shareholders) of the company, that is, already next year?
The announcement of annual dividends based on the results of the organization's activities for the reporting year is classified as an event after the reporting date. So it is said in paragraph 3 of PBU 7/98. If an event occurs after the reporting date, information about it should be disclosed in the notes to the balance sheet and income statement. However, no entries in accounting in the reporting period need to be made (clause 10 PBU 7/98). The organization will reflect the postings on the accrual of dividends only in the period in which the general meeting of participants (shareholders) decides on the direction of profit for the payment of dividends. In other words, these recordings will be made next year.
Note. An approximate list of facts of economic activity that can be recognized as events after the reporting date is given in the Appendix to PBU 7/98.
Example 3. Let's use the conditions of examples 1 and 2. The annual meeting of the participants of LLC "Reformation" was held on March 2, 2009. It approved the organization's reporting for 2008 and decided to use the net profit received in 2008. Part of the profit in the amount of 300 000 rub. It was decided to distribute among the participants of the company in proportion to their shares in the authorized capital.
Reformatsiya LLC disclosed information on declared dividends for 2008 in the explanatory note to the annual financial statements, and did not make any additional entries in accounting for 2008. The company recorded the accrual of dividends with an entry dated March 2, 2009:
Debit 84, sub-account "Retained earnings of the reporting year", Credit 75-2 "Calculations for the payment of income"
300 000 rub. - the debt to the participants for the payment of dividends for 2008 was taken into account.
Note! When paying dividends, the value of net assets is important
A limited liability company is not entitled to make a decision on the distribution of its profits among the participants if, at the time of such a decision, the value of its net assets is less than the authorized capital and reserve fund or becomes less than their size as a result of this decision (clause 1, article 29 of the Federal Law dated 08.02.1998 N 14-FZ).
A joint-stock company is not entitled to make a decision (announce) on the payment of dividends on shares if (clause 3, article 102 of the Civil Code and clause 1, article 43 of Law N 208-FZ):
The value of the company's net assets is less than its authorized capital and reserve fund;
As a result of the payment of dividends, the value of the company's net assets will become less than its authorized capital and reserve fund;
As of the day the decision to pay dividends is made, the value of the company's net assets is less than its authorized capital, reserve fund and the excess of the liquidation value of the placed preferred shares over their nominal value;
As a result of the payment of dividends, the value of the company's net assets will become less than its authorized capital, reserve fund and the excess of the liquidation value of the placed preferred shares over their nominal value.
The procedure for assessing the value of net assets of joint-stock companies was approved by the joint Order of the Ministry of Finance of Russia N 10n and the Federal Commission for the Securities Market N 03-6/pz dated 01.29.2003. Limited liability companies may also be guided by this document. After all, a separate normative act has not been developed for them.
Contributions to the reserve fund
The obligation to form a reserve fund is established only for joint-stock companies. Limited liability companies have the right to create a reserve fund on a voluntary basis (Article 30 of the Federal Law of 08.02.1998 N 14-FZ).
Joint stock companies form a reserve fund according to the rules set forth in paragraph 1 of Art. 35 of the Federal Law of December 26, 1995 N 208-FZ (hereinafter - Law N 208-FZ). The size of the fund is specified in the charter of the company, but its value cannot be less than 5% of the authorized capital.
The reserve fund of a joint-stock company is formed by way of mandatory annual deductions, which are made until the established value of the reserve fund is reached. The minimum amount of annual deductions is 5% of net profit, and the specific amount of deductions is specified in the charter.
The reserve fund can only be used for the purposes listed in paragraph 1 of Art. 35 of Law N 208-FZ.
Note. The reserve fund is intended to cover the losses of the joint-stock company, as well as to redeem bonds and buy back shares of the company in the absence of other means (clause 1, article 35 of Law N 208-FZ).
The formation and use of the resources of the reserve fund are accounted for on account 82 "Reserve capital". Since the amount of annual deductions to the reserve fund is established in the charter of the organization, the accountant has the right, without waiting for the annual meeting of shareholders, to reflect in the accounting records the replenishment of the reserve fund by such an entry:
Annual contributions to the reserve fund were made.
Example 4. Based on the results of 2008, Balance OJSC received a net profit of 270,000 rubles. The authorized capital of the organization is 1,000,000 rubles, the amount of the reserve fund as of January 1, 2008 is 33,000 rubles. The charter of the company states that annually 5% of the net profit of the reporting year is deducted to the reserve fund until the value of the reserve fund reaches 50,000 rubles. (1,000,000 rubles x 5%).
Based on the size of the organization's net profit received in 2008, the amount of annual contributions to the reserve fund for this year should be 13,500 rubles. (270,000 rubles x 5%). Taking into account these deductions, the value of the reserve fund will not yet reach 50,000 rubles. [(33,000 rubles + 13,500 rubles)< 50 000 руб.]. Поэтому в бухучете ОАО "Баланс" 31 декабря 2008 г. делает запись:
Debit 84, sub-account "Retained earnings of the reporting year", Credit 82
13 500 rub. - deductions were made to the reserve fund for 2008.
Repayment of losses of previous years
As already mentioned, in the presence of uncovered losses of previous years, the general meeting of participants (shareholders) of the company has the right to use the net profit of the reporting year to pay them off. Moreover, the entire amount of the net profit of the reporting year or only a part of it (for example, remaining after the payment of dividends) can be directed to these purposes. What amount is directed to cover the losses of previous years, is indicated in the minutes of the general meeting.
Note. For tax purposes, an organization has the right to reduce the taxable profit of the current tax period by the amount of losses of previous years (Article 283 of the Tax Code of the Russian Federation).
Suppose an organization has a significant amount of uncovered losses accumulated over past years. Participants (shareholders) of the company have established the following procedure for their redemption. If in the reporting year the organization receives a net profit, then 10% of its amount is directed to pay off the losses of previous years, the rest of the profit is distributed at the annual meeting of participants (shareholders). This procedure is prescribed in the charter of the company. In such a situation, the accountant has the right, even before the annual meeting, to reflect in the accounting operation for the partial repayment of losses from previous years.
It should be noted that subsequently the general meeting of participants (shareholders) may decide to allocate an additional part of the net profit of the reporting year to pay off old losses, for example, another 5% of the amount of net profit. Then an entry on the repayment of losses in the accounting must be made twice: as of December 31 of the reporting year (on the allocation of 10% of net profit for these purposes) and on the date of the annual meeting (on the use of another 5% of net profit).
Repayment of losses of previous years at the expense of the net profit of the reporting year is reflected in the entry:
Debit 84, subaccount "Retained earnings of the reporting year", Credit 84, subaccount "Uncovered loss of previous years",
Part of the loss of previous years has been repaid.
Use of profit for other purposes
If the participants (shareholders) of the company decided to direct the net profit of the reporting year to increase the authorized capital, the accounting entry must be made:
Debit 84, sub-account "Retained earnings of the reporting year", Credit 80
The authorized capital has been increased.
The Chart of Accounts does not provide for separate accounts or sub-accounts for accounting for special-purpose funds (accumulation fund, consumption fund, social sphere fund, charitable fund, corporatization fund for employees of the company, etc.). Organizations forming these funds record them on account 76 by opening appropriate sub-accounts for it. So, the creation of a fund for the social sphere is reflected in the entry:
Debit 84, subaccount "Retained earnings of the reporting year", Credit 76, subaccount "Social Sphere Fund",
The creation of a fund for the social sphere is reflected.
Note. The corporatization fund for employees of a joint-stock company is spent exclusively on the acquisition of company shares sold by its shareholders for the subsequent placement of shares among employees (clause 2, article 35 of Law N 208-FZ).
Funds of special purpose funds are spent exclusively for the purposes provided for in the charter or other local documents of the company. Suppose, at the end of the year, the amounts of unused funds of the funds remained on account 76. Do I need to write them off to account 84? The accountant has no right to make such decisions independently. After all, all issues related to the use of the organization's net profit are decided by its participants or shareholders. If the annual meeting decides to capitalize the unspent funds of the funds, the accountant will reflect this in the following entry:
Debit 76, subaccount "Accumulation Fund" ("Consumption Fund", etc.), Credit 84, subaccount "Retained earnings of past years",
Included in retained earnings is the unused portion of the fund.
If such a decision is not followed, the funds of the fund not spent in the past year continue to be listed on the corresponding sub-account of account 76 and are intended for use for the same purposes next year.
Suppose the participants (shareholders) of the company decided not to distribute the net profit received in the reporting year. Then the accountant needs to record:
Debit 84, subaccount "Retained earnings of the reporting year", Credit 84, subaccount "Retained earnings of previous years",
The capitalization of the profit of the reporting year was made.
Note. The procedure for the formation of special-purpose funds from net profit and the expenditure of funds from these funds must be prescribed in the charter of the company.
What to do if there is a loss
The loss of the reporting year can be repaid at the expense of undistributed profits of previous years, additional capital (except for the amount of increase in the value of property for revaluation), the reserve fund, targeted contributions of the founders.
In addition, the company has the right to reduce the size of the authorized capital to the value of net assets. After all, the value of the company's net assets should not be less than its authorized capital (clause 4, article 90 and clause 4, article 99 of the Civil Code of the Russian Federation). In this case, the accounting entry is reflected:
Debit 80 Credit 84, sub-account "Uncovered loss of the reporting year",
Decreased share capital.
Note. If at the end of the second and each subsequent financial year the value of net assets turns out to be less than the authorized capital, the company is obliged to reduce the authorized capital (Articles 90 and 99 of the Civil Code of the Russian Federation).
The decision on how to cover the loss of the reporting year is made by the general meeting of participants (shareholders) of the company. This is established in paras. 3 p. 3 art. 91 and paras. 4 p. 1 art. 103 of the Civil Code of the Russian Federation.
As with the distribution of net profit, the repayment of the loss of the reporting year is reflected in the accounting records as of the date of the decision by the annual meeting. If the loss is covered by retained earnings of previous years or additional capital, the accountant makes entries:
The loss of the reporting year was repaid at the expense of the profit of previous years;
Debit 83 Credit 84, sub-account "Uncovered loss of the reporting year",
The loss of the reporting year was repaid at the expense of additional capital.
Note. An increase in the authorized capital of a company to cover the losses incurred by it is not allowed.
Joint-stock companies create a reserve fund, the funds of which can be used, among other things, to cover losses. We emphasize that the funds of the reserve fund are directed to pay off losses only if there are no other sources - if the company does not have retained earnings of past years and its receipt is not expected in the coming years.
Limited liability companies that have formed a reserve fund on a voluntary basis are entitled to spend its funds for the purposes specified in the charter. In other words, they can use the reserve fund to cover the losses of the reporting year, even if there are retained earnings from previous years.
Note. If the sources available to the organization are insufficient to cover the loss of the reporting year, the general meeting of participants (shareholders) decides to reflect the uncovered loss in the balance sheet.
The operation to pay off the loss of the reporting year at the expense of the reserve fund is reflected as follows:
The loss of the reporting year was repaid at the expense of the reserve fund.
Coverage of losses at the expense of additional targeted contributions of the founders is documented by the entry:
Debit 75, subaccount "Calculations on targeted contributions", Credit 84, subaccount "Uncovered loss of the reporting year",
The loss of the reporting year was written off at the expense of the founders.
Example 5. In 2008, Balance LLC received a loss in the amount of 717,000 rubles. In the accounting of the organization as of January 1, 2009, there is retained earnings of previous years in the amount of 420,000 rubles. and a reserve fund - 27,000 rubles. The general meeting of participants, held on March 6, 2009, decided to allocate 50% of retained earnings of previous years and the entire reserve fund to pay off the loss of 2008. It is impossible to write off the remaining amount of the loss, since there are no other means for this.
Debit 84, subaccount "Retained earnings of past years", Credit 84, subaccount "Uncovered loss of the reporting year",
RUB 210,000 (420,000 rubles x 50%) - part of the loss of the reporting year was repaid at the expense of retained earnings of previous years;
Debit 82 Credit 84, sub-account "Uncovered loss of the reporting year",
27 000 rub. - part of the loss of the reporting year was repaid at the expense of the reserve fund;
Debit 84, subaccount "Uncovered loss of past years", Credit 84, subaccount "Uncovered loss of the reporting year",
RUB 480,000 (717,000 rubles - 210,000 rubles - 27,000 rubles) - an uncovered loss is reflected.
Savings account 99 in accounting is practically used in order to generate information about the financial results of any company, regardless of its legal status or industry sector. Generalization of data is carried out for a certain reporting period for all types of activities - main and additional. Consider what is reflected in the 99th account and in what order.
Account 99 in accounting
The main goal of a commercial organization is to make a profit. At the same time, each business operation affects the amount of income and expenses, and account 99 “Profits and losses” is used for the consolidated accumulation of information. For the whole year, it accumulates information on:
- Profit or loss from 90 ch. according to the main OKVED.
- Profit or loss from 91 sch. according to additional OKVED.
- Conditional income/expenses involved in tax calculation.
- Accepted fines, arrears and PNO / ONA (when working according to PBU 18/02).
99 accounting account - this is the last step on the way to the reformation of the balance sheet. The final posting resets the balances by transferring the resulting amounts to the account. 84 . And also business transactions on account 99 reflect the write-off (recording) of losses (surpluses) of inventories and fixed assets received in emergency or force majeure circumstances (emergencies, natural disasters, wars, etc.).
Account 99 - sub-accounts:
- 99.1 - used to reflect the financial results for the company's ordinary OKVED.
- 99.2, 99.3 - used to reflect the financial results for other OKVED.
- 99.4 - to reflect extraordinary income.
- 99.5 - to reflect extraordinary expenses.
- 99.6 - to reflect the amounts of income tax and penalties.
- 99.7 - this reflects the amount of financial results for the reporting period.
- 99.9 - other amounts of financial results may be reflected here.
It should be noted that account 99, a characteristic contained in Order No. 94n dated October 31, 00, can be grouped in a different way, taking into account the analytical needs of the organization and the nuances of filling out reliable and complete accounting.
Count 99 - active or passive?
99 accounting account is an active-passive accounting account. Credit 99 of the account shows the formation of profits and all kinds of income, corresponding with accounts - 90, 91, 84, , , , etc. And the debit of 99 accounts shows the receipt of losses and various expenses, corresponding with accounts - 01, 03, 10, , 07 , , 20, 29, , 28, , , , , , 84, 91, 90, etc.
The incoming or outgoing credit balance on account 99 means the excess of revenue over expenditure, therefore, making a profit by the company. When the balance is reflected in the debit of account 99, it means that the amount of expenses for the period turned out to be more than income and, as a result, a loss occurred. Thus, the balance of 99 accounts on debit indicates a loss, and on a loan - a profit.
Note! 99 account in the balance sheet is not directly reflected, but only after the reformation of balances. In this case, the total amount from the account. 99 is written off to debit or credit account. 84, and then from account 84, the balance on December 31 is entered in line 1370 of the balance sheet.
Account transactions 99
To better understand what the 99 credit account means and what financial result the debit of account 99 shows, we will give a typical example from the activities of the enterprise.
Suppose a trading company is engaged in the sale of equipment. In December, electrical goods were sold for 354,000 rubles, including VAT 18% 54,000 rubles. Additionally, the organization provides a one-time lease of premises, the amount of the rent amounted to 23,600 rubles, including VAT of 3,600 rubles. Let's assume that there were no other transactions for the period, the cost of goods sold is 260,000 rubles, and since December is the final month, the balance is reformed at the same time.
The accountant will post as follows:
- D 90 K 99 for 40,000 rubles. – generated profit from trading activities at the end of the month. In this case, the answer to the question: Credit 99 accounts - profit or loss? unequivocally - profit.
- D 62 K 91.1 for 23600 rubles. - reported rental income.
- D 91.2 K 68.2 for 3600 rubles. - allocated for rent VAT.
- D 91 K 99 for 20,000 rubles. - generated rental income for the month.
- D account 99 09 K 84 for 60,000 rubles. – at the end of the year, the balance sheet was reformed: the revealed profit was included in the financial result for previous periods.
Conclusion - we found out that account 99 “Profit and Loss” is active-passive and is intended for the accountant to determine the amount of profit or loss received by the enterprise during the reporting period. At the end of the reporting period, this account has no balance, since it is reset to zero through reformation by writing off amounts to the account. 84.
