Accounting for financial results and use of profits. Accounting for financial results Accounting for financial results

The final financial result of the enterprise as a whole is formed at the expense of income and expenses from ordinary activities, as well as other income and expenses.

The first are formed on account 90 "Sales", which we analyzed in detail in, and the second on account 91 "Other income and expenses", an analysis of which can be found.

To form the final financial result, account 99 “Profit and Loss” is used, debit 99 of the account shows losses, credit - profit.

The final results of activities for the year are shown in the balance sheet -.

Profit and loss

At the end of each month, on accounts 90 and 91, the financial result from activities for the past month is formed, the resulting total profit or loss is debited from these accounts to account 99 with the following entries:

• D90 / 9 K99 - reflected profit from ordinary activities,
• D99 K90 / 9 - reflected losses from ordinary activities,
• D91 / 9 K99 - reflected profit from other income and expenses,
• D99 K91/9 - losses from other income and expenses are reflected.

During the calendar year, from month to month, profits and losses accumulate on account 99. In each month, the final balance is calculated and carried over to the next.

In addition to the above income and expenses, the formation of the financial result is also influenced by accrual. The accrual of this tax in the presence of profit is also reflected in account 99 in account 68 “Calculations on taxes and fees” - read more about the account. The entry reflecting the accrual of income tax to pay it to the budget has the form D99 K68.

Account closing 99

At the end of the year, it is necessary to calculate the final financial result from the activities of the enterprise, and 99 accounting accounts must be closed. For this, the final balance at the end of December is considered. 99, the resulting debit balance indicates that the organization's losses for the year exceeded profit, the credit balance indicates the opposite.

The resulting final balance is reflected in the account. 84 "Retained earnings (uncovered loss)".

Postings for closing account 99 at the end of the year:

• D99 K84 - reflects the financial result for the year (profit);
• D84 K99 - reflects the financial result for the year (loss).

As a result of these actions, 99 is completely closed, its balance becomes 0, at the beginning of January of the next year it reopens.

As for account 84, the profit reflected on it can be used for the needs of the organization, for the purchase of non-current assets, or, for example, for the payment of dividends to the founders. In addition, if in previous reporting periods there was a loss, and in the current - profit, then the profit received can cover the losses of previous years.

The concept of financial result

The financial result in accounting is formed on account 99 "Profit and Loss", which is active-passive. This account has either a credit or a debit balance. On a cumulative basis during the year, the debit 99 of the “Profit and Loss” account records losses and losses, and the credit, respectively, profits and incomes. By comparing the turnover on the debit and credit of account 99, the final financial result of the enterprise's activities for the reporting period is determined. The balance on credit 99 of the Profit and Loss account is a profit, and the debit balance is a loss.

The final financial result, that is, net profit or loss, is added up during the year on the 99th account "Profit and Loss" from the following components:

• profit or loss from ordinary activities;
• other expenses and income;
• losses, income and expenses due to emergency circumstances of activity;
• amounts of contingent expense accrued for income tax, permanent liabilities, payments for recalculations of income tax from actual profit, the amount of tax sanctions.

Ready-made works on a similar topic

• Course work Accounting for financial results 440 rub.
• abstract Accounting for financial results 220 rub.
• Test Accounting for financial results 220 rub.

Remark 1

The company receives most of the profit or loss from the sale of finished products, goods, services and works. The financial result from the sale is defined as the difference between the proceeds from the sale, excluding value added tax, excises, duties and other deductions, and the costs of production and sale. The costs associated with the production and sale of products affect the cost and their list is regulated.

Trading, marketing, supply companies calculate the result from the sale of goods by subtracting the purchase price and sales costs from the sale value, which relate to the goods sold for the reporting period.

Features of accounting for financial results

The cost of sales is reflected in the active-passive 90 account "Sales". The debit of this account includes the actual cost of goods sold, the purchase price of goods, expenses, VAT and other expenses. According to the credit of the specified account, proceeds from the sale of products, goods, services, and works are recorded. As a result of comparing the turnovers on debit and credit 90 of the “Sales” account, the result is determined, which is monthly written off from the 90th “Sales” account to the 99th “Profit and loss” account.

If a profit is made, then an accounting entry is made:

• Debit 90 "Sales"
• Loan 99 Profit and Loss.

If a loss is received, then this result is reflected in the entry:

• Debit 99 "Profit and Loss"
• Credit 90 "Sales".

Account 90 "Sales" is closed and has no balance.

All operating and non-operating income, as well as expenses, are reflected in 91 accounts “Other income and expenses”. Analytical accounting for 91 accounts is kept by types of non-operating and operating income and expenses.

Operating expenses and income recorded on account 91 “Other income and expenses” in accordance with RAS 9/99 and RAS 10/99 are:

• results from the sale of fixed assets, material assets, intangible assets, foreign currency;
• receipts due to participation in the authorized capital of third-party organizations;
• income and expenses from the rental of property;
• profit received as a result of joint activities.

The result of the sale or other disposal of fixed assets as a profit or loss is reflected in account 91 “Other income and expenses”. At the same time, the debit of account 91 of the sub-account “Other expenses” indicates the residual value of the fixed assets that have retired and the costs associated with the disposal, the amount of VAT received as part of the proceeds from the sale of fixed assets. On credit 91 of the sub-account “Other income”, the proceeds from the sale of fixed assets are indicated. The result is transferred to account 99 "Profit and Loss". If a profit is made, then a record is made:

• , sub-account "Balance of other income and expenses"
• Loan 99 Profit and Loss.

The resulting loss in accounting is reflected in the posting:

• Debit 99 "Profit and Loss"
• Credit 91 "Other income and expenses", sub-account "Balance of other income and expenses".

Remark 2

It should be noted that the loss resulting from the disposal of fixed assets does not reduce taxable income.

In accounting, the results obtained from the sale of other property of the enterprise are similarly reflected. Income from participation in other companies arises when the enterprise receives a part of the profits of other companies and dividends on shares that belong to the shareholder organization.

To date, it is possible to use two options for reflecting income from participation in other companies:

• on the actual receipt of funds;
• pre-charged on income accounts.

At the time of receipt of funds, accounting entries are made:

• Debett 51 "Settlement Accounts" or 52 "Currency Accounts"

At the end of the month, an entry is made:

• Debit 91 "Other income and expenses"
• Loan 99 Profit and Loss.

The amount of income receivable from contributions to the authorized capital of enterprises, and dividends are reflected in the entry:

• Debit 76 "Settlements with different debtors and creditors"
• Credit 91 "Other income and expenses".

At the end of the month, posting is carried out:

• Debit 91 "Other income and expenses"
• Loan 99 Profit and Loss.

Income payments are reflected in the posting:

• Debit 51 "Settlement accounts", 52 "Currency accounts"
• Loan 76 "Settlements with various debtors and creditors."

Operating expenses include amounts payable on taxes and fees. The accrual of taxes and fees is reflected in the accounting entry:

• Debit 91 "Other income and expenses"
• Credit 68 "Calculations on taxes and fees" (on sub-accounts).

Incomes that are received in the form of fines, penalties, forfeits are reflected in the entry:

• Debit 51 "Settlement account"
• Credit 91 "Other income and expenses".

The amounts of fines, penalties, forfeits accrued to the enterprise for violation of the terms of economic contracts are reflected in the entry:

• Debit 91 "Other income and expenses"
• Loan 60 “Settlements with suppliers and contractors”.

Remark 3

It should be noted that the amounts of sanctions are not included in non-operating expenses, reduce the profit of the enterprise, and are reflected in the accounting entry:

• Debit 99 "Use of profit"
• Loan 68 "Calculations on taxes and fees."

Positive or negative exchange rate differences arise as a result of recalculation at the current exchange rate of the Central Bank of the Russian Federation of currency in the bank on the accounts of the enterprise and settlements that are carried out in convertible currency.

Extraordinary income and expenses include receipts or expenses that arise as a result of extraordinary circumstances of the economic activity of the enterprise. They are accounted for on account 99 "Profit and Loss".

At the end of the reporting year, the final entries for December are the transfer of the amount of net profit or loss to account 84 “Retained earnings or uncovered loss”. The Profit and Loss account has no balance as of January 1 following the reporting year.

The amount of net profit of the reporting year is documented by posting:

• Debit 99 "Profit and Loss"
• Loan 84 "Retained earnings (uncovered loss)".

The amount of net loss of the reporting year is documented by posting:

• Debit 84 "Retained earnings (uncovered loss)"
• Loan 99 Profit and Loss.

In the year following the reporting year, net profit is distributed based on the decision of the general meeting of shareholders or participants. Net profit can be used to pay dividends, to compensate for losses from previous years and for other purposes.

Accounting profit (loss) is the final financial result (profit or loss) revealed for the reporting period based on the accounting of all business operations of the organization for this period. It represents the difference between the income of the organization, determined in accordance with PBU 9/99 "Income of the organization", and the expenses of the organization, determined in accordance with PBU 10/99 "Expenses of the organization".

The formation of the financial result is carried out using accounts 90 "Sales", 91 "Other income and expenses" and 99 "Profit and losses".

Account 90 is designed to systematize and accumulate information on income and expenses for the conduct of ordinary activities of the organization. It forms the financial result from the main activity, which is the main goal of creating an organization. The chart of accounts recommends the following sub-accounts:

• 1 "Revenue", the sub-account is intended to summarize information on revenue;
• 2 "Cost of sales", the sub-account is intended to summarize information on the cost of sales;
• 3 "Value Added Tax", the sub-account is intended to summarize information on the amounts of VAT to be received from the buyer;
• 4 "Excises", sub-account is designed to summarize information
• 0 amounts of excises to be received from the buyer;
• 9 “Sales profit/loss”, the sub-account is designed to identify the financial result (profit or loss) from sales for the reporting month.

Entries on accounts 90-1, 90-2, 90-3, 90-4 are made accumulatively during the reporting year. Monthly, the financial result is revealed by comparing the credit and debit turnovers on these sub-accounts, which is debited from account 90-9 to account 99 “Profit and Loss” by the final turnover. Thus, synthetic account 90 does not have a balance on the reporting date.

At the end of the reporting year, accounts 90-1, 90-2, 90-3, 90-4 are closed by internal entries to account 90-9. Then account 90-9 is closed in correspondence with account 99. On the first day of the new year, there should be no balance on this account.

Account 91 reflects all other income and expenses. The chart of accounts recommends the following sub-accounts:

• 1 “Other income”, the sub-account is intended to summarize information on other income;
• 2 "Other expenses", the sub-account is intended to summarize information on other expenses;
• 9 “Balance of other income and expenses”, the sub-account is designed to identify the financial result from other activities. The procedure for generating information on account 91 is similar to account 90. On the first day of the new year, there should not be a balance on this account.

The final financial result of the organization's activities for the reporting year is revealed on account 99, records for which are cumulative throughout the year. According to the Chart of Accounts, the following information is reflected on account 99 during the reporting year:

• 1) profit (loss) from ordinary activities - in correspondence with an account of 90;
• 2) the balance of other income and expenses for the reporting month - in correspondence with account 91;
• 3) the amount of accrued conditional income tax expense, permanent liabilities and payments for recalculations of this tax from actual profit, as well as the amount of tax sanctions due - in correspondence with account 68.

The debit of account 99 reflects losses (expenses), and the credit - profits (income) of the organization. By comparing the debit and credit turnover for the reporting period, the final financial result of this period is revealed. At the end of the reporting year, account 99 is closed in correspondence with account 84 "Retained earnings (uncovered loss)". On the first day of the new year, there should be no balance on this account.

The process of generating net profit is defined as follows:

Net profit (loss) for the reporting period =

Profit (loss) from sales ± Profit (loss) from other activities - (Income tax ± Income tax recalculation payments + Sanctions for violations of tax laws).

Profit in the reporting month is reflected in the entry

D 90-9 - K 99 - reflects the profit from sales (on the debit of the final turnover of the reporting month).

D 99 - K 90-9 - loss from sales is reflected (on the loan with the final turnover of the reporting month).

Profit from other activities in the reporting month is reflected in the entry

D 91 -9 - K 99 - profit is reflected (on the debit end of the reporting month).

The loss in the reporting month is reflected in the entry

220 . CHAPTER 2. FINANCIAL ACCOUNTING

D 99 - K 91 -9, reflects the loss from other activities (for the loan, the final turnover of the reporting month).

The list of typical business operations for the formation of the financial result is given in Table. 2.23.

Table 2.14

Typical accounting records for the formation of financial results

The ending

Consider a number of examples of accounting for financial results on account 90.

Example 2.54

On January 10, the organization shipped finished products to the buyer and issued an invoice in the amount of 118 rubles, including VAT of 18 rubles. The sale and purchase agreement establishes the moment of transfer of ownership at the time of shipment of products by the buyer. The cost of products sold amounted to 70 rubles. The invoice was paid by the buyer on 25 January.

Journal of business transactions

Example 2.55

On January 10, the organization shipped finished products to the buyer and issued an invoice in the amount of 118 rubles, including VAT of 18 rubles. The sale and purchase agreement establishes the moment of transfer of ownership upon receipt of funds to the seller's settlement account. The cost of products sold amounted to 70 rubles. The invoice was paid by the buyer on 25 January. Revenue for VAT purposes is recognized upon payment.

Let's reflect business transactions in the table.

Journal of business transactions

The financial result is an increase or decrease in the value of the organization's own capital, formed in the course of its entrepreneurial activity for the reporting period. In accounting, it is determined by the indicator of profit or loss.

In accordance with the Regulations on Accounting and Accounting in the Russian Federation, “accounting profit (loss) is the final financial result (profit or loss) identified for the reporting period based on the accounting of all business operations of the organization and the assessment of balance sheet items.”

The main indicators of profit (loss) are:

Gross profit, defined as the difference between the proceeds from the sale of goods, products (works, services) (minus VAT, excises and other obligatory payments) and the cost of goods sold, products (works, services);

Profit (loss) from sales, defined as the difference between gross profit and management and selling expenses;

Profit (loss) before tax, defined as the sum of profit (loss) from sales and other income, reduced by the amount of other expenses;

Net profit (loss) of the reporting period, defined as the difference between profit (loss) before taxation and tax and other obligatory payments from profit.

All these indicators are contained in Form No. 2 "Profit and Loss Statement".

In the balance sheet, the financial result of the reporting period is not reflected as an independent indicator, but is an integral part of the retained earnings (uncovered loss) indicator calculated for the entire period of the organization's activity.

To form the financial results of the organization's activities, accounts 90, 91, 99 are used.

Account 90 "Sales" is designed to record income and expenses from ordinary activities.

Account 91 "Other income and expenses" is used to record income and expenses from other operations.

Account 99 "Profit and Loss" is used to summarize information on the formation of the final financial result of the organization's activities in the reporting year.

This result is made up of the following indicators:

Financial result from ordinary activities in correspondence with an account of 90;

Financial result of other income and expenses in correspondence with account 91;

Accrued conditional income tax (permanent tax assets and liabilities), as well as the amounts of tax sanctions due in correspondence with accounts 68 “Calculations on taxes and fees” and 69 “Calculations on social insurance and security”.

The debit of account 99 during the reporting year reflects losses (losses, expenses), the credit - profits (income) of the organization. Comparison of the debit and credit turnover of account 99 for the reporting period shows the final financial result of the reporting period.

At the end of the reporting year, when compiling the annual financial statements, account 99 is closed. The final entry in December, the amount of net profit (loss) of the reporting year is written off from account 99 to account 84 "Retained earnings (uncovered loss)".

The construction of analytical accounting for account 99 should provide the formation of the data necessary for compiling a profit and loss statement.

Here is the scheme of counting 99.

Example 1. The organization for the period under review received a profit from the sale of products in the amount of 30,000 rubles; surplus materials were identified during the inventory -3500 rubles; payment for bank services amounted to 13,800 rubles; debit debt with expired limitation period in the amount of 1,300 rubles was written off.

The following accounting entries will be made.

The financial result of the reporting period is profit before tax, equal to 21,000 rubles.

Accounting for deferred income

Incomes received in the reporting period, but related to the following reporting periods, are reflected in the balance sheet as deferred income. They are written off to financial results at the beginning of the reporting period to which they relate.

To account for income received (accrued) in the reporting period, but related to future reporting periods, account 98 “Deferred income” is intended. The following sub-accounts can be opened for this account.

Sub-account 98-1 "Income received on account of future periods." In the credit of the sub-account, in correspondence with the accounts of accounting for cash or settlements with debtors and creditors, rent or apartment fees, utility bills, subscription fees for using communication facilities, revenue from passenger transportation on monthly and quarterly tickets and other income received in the reporting period are reflected. period, but relating to future periods.

Sub-account 98-2 "Grant-free receipts". The credit of the sub-account reflects the market value of assets received free of charge.

The amounts recorded on this sub-account are written off to the credit of account 91 “Other income and expenses”:

For fixed assets and intangible assets received free of charge - as depreciation is accrued;

For other tangible assets received free of charge - as they are debited to the accounts of production costs (sales costs).

Sub-account 98-3 "Upcoming receipts of debts for shortages identified in previous years." On the credit of the sub-account, in correspondence with account 94 “Deficiencies and losses from damage to valuables”, the amounts of shortages identified in previous reporting periods (before the reporting year), recognized by the guilty persons, or amounts awarded for recovery by the court are reflected. At the same time, account 94 is credited for these amounts in correspondence with sub-account 73-2 “Calculations for compensation for material damage”.

As the debt for shortages is paid off, subaccount 73-2 is credited in correspondence with cash accounts while simultaneously reflecting the amounts received on the credit of account 91 (profits of previous years identified in the reporting year) and the debit of subaccount 98-3.

Sub-account 98-4 "The difference between the amount to be recovered from the perpetrators and the cost of missing valuables." On the credit of the subaccount, in correspondence with subaccount 73-2, they reflect the difference between the amount recovered from the perpetrators for the missing material and other values ​​and the value recorded in the accounting records of the organization. As the debt is repaid, the corresponding differences are written off from sub-account 98-4 to the credit of account 91.

Typical postings for accounting for financial results are given in Table. one.

Table 1. Correspondence of accounts for accounting of financial results

Literature used: Bochkareva I. I., Levina G. G.
Accounting financial accounting: textbook / I. I. Bochkareva, G. G. Levina;
ed. prof. Ya. V. Sokolova. - M. : Master, 2010. - 413 p.

The main indicator of the financial and economic activity of the organization is the financial result, which is an increase (decrease) in the value of the organization's own capital for the reporting period.

The financial result is formed on the active-passive account 99 "Profit and Loss". This account has a one-sided balance. During the year, the cumulative total for the debit of account 99 “Profits and losses” records losses and losses, and for the credit - profits and incomes. By comparing the debit and credit turnover, the final financial result of the organization's activities for the reporting period is determined. The credit balance of account 99 "Profit and Loss" means profit, the debit balance - loss.

Example 1. The turnover on account 99 “Profit and Loss” for the first quarter amounted to: debit - 10,000 rubles, credit - 12,500 rubles. The balance as of April 1 is credit, i.e. received a profit of 2500 rubles. The turnover for the 2nd quarter was: on debit - 15,000 rubles, on credit - 13,500 rubles, and for the first half of the year since the beginning of the year, the turnover on debit was - 25,000 rubles, on credit - 26,000 rubles. Financial result for the half year: profit of 1000 rubles. (26,000 rubles - 25,000 rubles). In this order, the balance on account 99 “Profit and Loss” is determined by the end of the reporting year.

The final financial result (net profit or net loss) is added during the year on account 99 “Profit and Loss” from:

• profit or loss from ordinary activities;
• other income and expenses;
• losses, expenses and income due to emergency circumstances of economic activity;
• amounts of accrued contingent income tax expense, permanent liabilities and recalculation payments for this tax based on actual profit, as well as the amount of tax sanctions due.

Accounting for financial results from ordinary activities, other income and expenses and extraordinary income and expenses

The organization receives the bulk of the profit (loss) from the sale of finished products, goods, works and services. The financial result from their sale is defined as the difference between the proceeds from the sale of products (works, services) without value added tax, excises, export duties, sales tax and other deductions provided for by law, and the costs of its production and sale. Since the costs associated with the production and sale of products (works, services) have a direct impact on the cost, their list is strictly regulated.

Trade, supply and marketing organizations determine the result from the sale of goods by subtracting from their sale value the purchase price and the amount of sales expenses related to the sold goods for the reporting month.

The result from the sale of products, works, services and goods is revealed on the active-passive account 90 "Sales". The debit of this account reflects the actual cost of goods sold, the purchase price of goods sold, expenses associated with the work performed and services rendered, VAT, sales tax and other expenses. The credit of the account reflects the proceeds from the sale of products, goods, works, services. Comparing the turnover of the debit and credit of account 90 “Sales”, the result (in the form of profit or loss) is determined, which is debited monthly from account 90 “Sales” to account 99 “Profit and loss”.

Upon receipt of profit, an "accounting entry is made:

Dt 90 "Sales"
Kt 99 "Profit and Loss".

The resulting loss is reflected in the entry:

Dr. 99 "Profit and Loss"
Kt 90 "Sales".

Account 90 "Sales" is closed and has no balance.

Operating and non-operating income and expenses are recorded on account 91 “Other income and expenses”.

Income from participation in other organizations arises when the organization receives a part of the profits of other organizations and dividends on shares owned by the shareholder organization.

Currently, two options are used to reflect income from participation in other organizations: by actual receipt of funds or by preliminary accrual of income on accounts.

As funds are received, accounting entries are made:

The accrual of these taxes and fees is reflected in the accounting entry:

Kt 68 "Calculations for taxes and fees" (for the relevant sub-accounts).

Non-operating income and expenses in accordance with PBU 9/99 and PBU 10/99 are:

• fines, penalties, forfeits for violations of the terms of business contracts received (paid); receipts (expenses) in compensation for the losses caused to the organization;
• assets received free of charge, including under a donation agreement;
• profit (loss) of previous years revealed in the reporting year; amounts of accounts payable and depositor (receivable) indebtedness for which the limitation period has expired; positive (negative) exchange rate differences; other non-operating income and expenses (losses from writing off the value of material assets as a result of theft, the perpetrators of which were not identified by court decision, shortages (surpluses) of material assets identified during the inventory, legal costs and arbitration fees, the amount of created reserves for doubtful debts and for depreciation securities, etc.).

Incomes received in the form of fines, penalties, forfeits for violation of the terms of business contracts are reflected:

Dt 51 "Settlement account"

The amounts of fines, penalties, forfeits accrued to the organization for violation of the terms of business contracts are reflected:

Dt 91 "Other income and expenses"
Kt 60 "Settlements with suppliers and contractors".

However, it should be remembered that the amounts contributed to the budget in the form of sanctions are not included in non-operating expenses, but are attributed to a decrease in the organization's profit, which is reflected in the accounting entry:

Dr. 99 "Use of profit"
Kt 68 "Calculations on taxes and fees".

Exchange rate differences (positive or negative) arise in connection with the recalculation at the current rate of the Central Bank of the Russian Federation of cash in bank accounts and settlements carried out in convertible currency.

We remind you once again that the result from operating and non-operating income and expenses, identified on account 91 “Other income and expenses” in the form of profit or loss, is transferred to account 99 “Profit and loss” at the end of the month.

Upon receipt of profit, an accounting entry is made:

Dt 91 "Other income and expenses"
Kt 99 "Profit and Loss".

Upon receiving a loss:

Dr. 99 "Profit and Loss"
Kt 91 "Other income and expenses".

Extraordinary incomes and expenses are receipts (expenses) arising as a consequence of extraordinary circumstances of economic activity (natural disaster, fire, accident, nationalization, etc.). They are taken into account directly on account 99 "Profit and loss".

Extraordinary income includes: insurance compensation; the cost of material assets remaining from the write-off of assets unsuitable for restoration and further use, etc.

The received insurance indemnity is reflected in the entry:

Dt 76 “Settlements with various debtors and creditors”, sub-account “Settlements for property and personal insurance”
Kt 99 "Profit and Loss".

The cost of accepted tangible assets received from the write-off of unusable assets is reflected:

Dt 10 "Materials"
Kt 99 "Profit and Loss".

Extraordinary expenses may include losses from natural disasters, strikes, nationalizations, riots, terrorist attacks and other similar events.

Non-operating and extraordinary incomes are accepted for accounting in the following order: fines, penalties, forfeits for violation of the terms of contracts, as well as compensation for losses caused to the organization - in amounts awarded by the court or recognized by the debtor, in the reporting period in which the court issued a decision on their foreclosure or they are recognized as a debtor; amounts of accounts payable and depository debts for which the limitation period has expired - in the reporting period in which the limitation period has expired; the amount of revaluation of assets - in the reporting period when the revaluation was made; other receipts - in process of formation. Expenses are recognized in the reporting period in which they occurred, regardless of the time of actual payment.

Accounting for retained earnings

At the end of the reporting year, with the closing entries in December, the amount of net profit (loss) identified by comparing the debit and credit turnover on account 99 “Profit and Loss” is transferred to account 84 “Retained earnings (uncovered loss)”. Account 99 "Profit and Loss" is closed and as of January 1 of the year following the reporting year, has no balance.

The amount of net profit for the reporting year is written off:

Dr. 99 "Profit and Loss"
Kt 84 "Retained earnings (uncovered loss)".

The amount of net loss of the reporting year is written off:

Kt 99 "Profit and Loss".

Analytical accounting on account 84 "Retained earnings (uncovered loss)" is organized in the context of: areas of use of the organization's retained earnings; sources of repayment of losses of the organization, etc.

In the year following the reporting year, based on the decision of the general meeting of shareholders (participants), net profit is distributed. It can be used to pay dividends to shareholders and founders, to compensate for losses from previous reporting periods, and for other purposes.

In accordance with the legislation of the Russian Federation, joint-stock companies and organizations with foreign capital reserve capital at the expense of the profit remaining at the disposal of the organization in the established percentage of the authorized capital. Other organizations form the reserve capital voluntarily in accordance with the constituent documents. Capital reservations are especially important to ensure the performance of obligations under the rights of claim of creditors.

When forming reserve capital at the expense of net profit, an entry is made:

Dt 84 “Retained earnings (uncovered loss)”
Kt 82 "Reserve capital".

Tax withheld on dividends reflects:

Dt 75 "Settlements with the founders", sub-account "Calculations for the payment of income"
Kt 68 "Calculations for taxes and fees" (for sub-accounts).

Dividends accrued to individuals working in this organization are reflected on account 70 "Settlements with personnel for wages" as part of the income of employees for the calendar year. In this case, accounting entries are made:

Dividends accrued

Dt 84 “Retained earnings (uncovered loss)”
Kt 70 "Settlements with personnel for wages".

Personal income tax withheld

Dt 70 “Settlements with personnel for wages”
Kt 68 "Calculations on taxes and fees", sub-account "Calculations on personal income tax".

The procedure for paying dividends on shares is announced at their issue and can only be changed by the general meeting of shareholders. The payment of dividends is reflected:

Dt 75 “Settlements with the founders”, sub-account “Calculations for the payment of income”, 70 “Settlements with personnel for wages”
Kt 50 "Cashier", 51 "Settlement accounts", 52 "Currency accounts".

Interest and penalties are not accrued on unpaid and unreceived dividends. Dividends not received within three years are accounted for as other income of the joint-stock company:

Dt 75 “Settlements with founders”, sub-account “Settlements for the payment of income”, 76 “Settlements with various debtors and creditors”
Kt 91 "Other income and expenses".

Disclosure of information on income in financial statements

According to PBU 9/99 "Income of the organization", as part of information on the accounting policy of the organization in the financial statements, the following information is subject to disclosure:

• on the procedure for recognizing the organization's revenue;
• about the method of determining the readiness of works, services, products.

Revenue, operating and non-operating income, which is five or more percent of the total income for the reporting period, are reflected for each type of activity.

In accordance with the requirements of PBU 10/99 "Expenses of the organization" for each type of activity, expenses by type of activity should also be reflected in the reporting.

If the revenue is received as a result of the performance of contracts providing for the fulfillment of obligations by non-monetary means, then the following information should be disclosed in the financial statements:

• the total number of organizations with which these contracts are concluded, indicating the organizations that account for the bulk of such revenue;
• the share of revenue received under the specified agreements with related organizations;
• a method for determining the products (goods) transferred by the organization.

Other income of the organization for the reporting period, not credited to the profit and loss account, are subject to disclosure in the financial statements separately.

The construction of accounting should provide the possibility of disclosing information about the organization's income in the context of current, investment and financial activities.

The main components of the financial result of the organization are given in the income statement.

test questions

1. What is the financial result of the organization?
2. On what account is the financial result of the organization's activities formed? Give a description of it.
3. How is the financial result from the sale of products, goods, works, services determined?
4. Define the concept of "operating income".
5. What does non-operating income include?
6. What are extraordinary income and expenses?
7. What sub-accounts are opened for account 90 "Sales"?
8. What do non-operating expenses include?
9. What is the organization's net income? Where is it taken into account?
10. What is included in operating expenses?
11. For what purposes can the net profit of the organization be spent?
12. What are dividends and when can they be paid?
13. What accounting records are recorded for the accrual and payment of dividends? Give examples.
14. What is the peculiarity of accounting for extraordinary income and expenses?
15. Make accounting entries for the write-off of inventory items lost during natural disasters.
16. Give the classification of the organization's income.
17. Tell us about the procedure for closing account 99 “Profit and Loss”.
18. What regulatory documents define the procedure for accounting for operating and non-operating income and expenses?
19. What amount of income and expenses is considered material?
20. What income information should be disclosed in the financial statements?