How to close an account 96. How to close a holiday reserve and what to do with its balances (memo for an accountant). Formation, write-off, typical accounting entries

Name of the reserve Purpose Accounts used in accounting To pay for vacations Funds are allocated for providing holidays to employees during the year 70, 69 For the payment of remuneration to employees for length of service and others Creation of reserves for lump-sum payments to employees, allocation of funds for the remuneration of seasonal workers 70, 69 Repair of fixed assets The possible amounts required for the current maintenance (repair) of property and equipment are determined 20.23 Land reclamation Intended for environmental protection measures 20, 23 Warranty repair and maintenance Reimbursement of expenses to buyers for a malfunction of the purchased goods for warranty service 51 Accounting account 96: typical entries In the figure below is account 96 "Reserves for future expenses" and its typical postings. To enlarge the image, click on it.

Postings on account 96 - reserves for future expenses

Description of the transaction Base document 20 96 27 086 Reflected the amount of the reserve for vacation pay for employees Accounting certificate Example 2. Creation of a reserve for vacation pay based on average earnings vacation days. The salary of employees for the past 2016 is 2,750,000 rubles.

The rest of the holidays for 2016 is 30 days. The average number of days in a month in 2016 is 29.3 days. To calculate the reserve, we use the formula: (average daily earnings + insurance premiums) * vacation balance.

Account 96: reserves for future expenses. example, wiring

Provisions for the creation of a reserve: Dt Kt Amount Description of the transaction 20.1 96.1 100000 A reserve is created for vacation pay 20.1 96.1 22000 A reserve is created for insurance premiums to the Pension Fund 20.1 96.1 2900 A reserve is created for insurance premiums to the FSS A reserve for the repair of fixed assets is created The reserve for repairs is calculated based on the total cost of fixed assets and deduction standards. The reserve for the repair of fixed assets is created on the 20th, 23rd, 26th, 44th account, etc. The annual amount of the reserve should not exceed the arithmetic average of the amount of actual repairs for the previous 3 years.

Having calculated the annual amount, we find the amount of regular deductions for the reserve. If these deductions are made monthly, then the annual amount is divided by 12. If once a quarter, then the annual amount is divided by 4.
Suppose the amount of the reserve for the repair of fixed assets for our organization is defined as 150,000 rubles.

Account 96 in accounting: reserves for future expenses

NU should be closed in the same way as BU, after the closing of the month it turns out that no amounts are put in NU on account 96. Therefore, the question arose, if the program does not do this, maybe it should not be, but if such a situation is possible, does it mean to prescribe it manually? Snovy 6 - 23.11.07 - 11:01 You don't expand the asset repair cost analytic.

Then it is easier for you to live. In general, when calculating the plan, you manually write postings d25 / 26-k96. When you receive repair services from third-party organizations, you need to make postings d96-k60, when using your materials for repairs d96-k10 (there is a big ambush here - if you transferred your materials to the contractor for repairs, then you need to use 10.7 with subsequent reflection in the debit of account 96 , and in 1C they didn’t even hear about it).

Account 96 "reserves for future expenses"

Creation of a reserve for warranty repairs

• Upcoming expenses for vacation pay for employees;
• Costs for current repairs of equipment and fixed assets;
• Warranty and repair costs;
• Other expenses of the organization.

The enterprise has the right to independently establish the procedure for calculating the reserve for paying vacation pay to employees, indicating in the accounting policy, taking into account paragraphs 15 and 16 of PBU 8/2010: estimated scrap rate, warranty repair statistics, and so on.

Closing the month

After analyzing the sales of goods, it was revealed:

• 12% of goods sold are repairable;
• 8% of the sold goods are subject to replacement;
• The average cost of repairs per unit of goods is 650 rubles;
• The average cost of replacing a product is 4,500 rubles;
• During 2017, it is planned to release 5,000 units of goods.

Thus:

• Calculation of the amount of the reserve for 2017: (5,000 * 12% * 650) + (5,000 * 8% * 4,500) = 2,190,000 rubles.
• The amount of monthly accruals to the reserve is: 2,190,000 / 12 = 182,500 rubles.

Postings on the 96th account for the creation of a reserve: Dt Kt Posting amount, rub.

Attention

Snovy 2 - 23.11.07 - 10:12 96 the standard account is not serviced at all. This is the first. The second - what do you have at 96 - there are a lot of things and each one is closed in different ways colnishko 3 - 11/23/07 - 10:16 I have a reserve for repairs at 96. Snovy 4 - 11/23/07 - 10:29 a.m., I'm not jealous. not only is the analytics spreading (for good, the plan and the fact must be taken into account for each OS), but also the second year there is a butting “there are temporary differences in rem.

Foundation or not? many specialists (including myself) argue that temporary differences in rem. there is no fund and cannot be, others believe that since the planned accruals differ from the fact, this is the basis for the formation of time. difference. And another question - you have rem. fund only in BU? Does NU also have it or not? colnishko 5 - 23.11.07 - 10:39 at NU, too.
Also, the costs of auxiliary production need to be written off from credit 23 to debit 96, and a bunch of other operations for debit 96. You don’t need to close the month, because 96 the account is closed only once at the end of the year - if there is no transition to the next. year of the reserve, then the balance of account 96 needs to be reset - cancel the credit, add the debit to the debit of accounts 25-26 (it’s strange why you don’t have 20 and 23). annual amount of the reserve. Then there are PR and VR. Similarly to BU 96, the NU account is also closed only at the end of the year. colnishko 7 - 23.11.07 - 11:07 thanks, it's nice to hear from such an intelligent person. My chief accountant just talked to an economist and came to the conclusion that this is such a mura 96 ​​account. so they are still deciding what and how they will do, but for now I will wait for their decision.
Postings for creating a reserve: Monthly write-off to the reserve: Dt Kt Amount Description of the operation 23 96 12500 Creation of a quarterly deduction operation to the reserve for fixed assets repair Write-off of reserves Write-off of the vacation reserve (example) In our example, a vacation reserve was created in the amount of 124,900 rubles (100,000+ 22000+2900). During the first month, the amount of vacation expenses for employees of the production unit amounted to 60,000. The amount of pension insurance contributions for these holidays was 13,200, insurance contributions to the Social Insurance Fund - 1,740.
Postings on writing off the reserve of vacations Dt Kt Amount Description of the transaction 96.1 70 60000 Vacation accrued to employees 96.1 69.2 13200 Contributions to the Pension Fund accrued 96.1 69.1 1740 Contributions to the FSS accrued Postings to write off the reserve for the repair of fixed assets Fixed assets were repaired in the amount of 56,000 rubles.
Dt Kt Amount Transaction description 96.2 10.1 31600 Written off from the reserve the cost of materials used 96.2 70 20000 Written off from the reserve wage costs 96.2 69.2 4400 Written off from the accrual reserve of the PFR Closing 96 accounts It must be understood that the amount of reserves cannot be calculated with absolute accuracy. The wage reserve, for example, may change for reasons such as:

• dismissal of employees;
• salary change;
• changes in the actual vacation schedule, etc.

If the reserve is exceeded, the amount “from above” is written off at the expense of current costs. If the reserve is not fully spent, then it is carried over to the next year, or canceled. For the reserve for the repair of fixed assets, the unspent balance can be closed to account 99.1 at the end of the year, if the repair is not completed in the current year.
Creation of a reserve for vacation pay based on wages The accounting policy of Vesna LLC reflects the creation of a reserve for vacation pay for employees based on wages. In this case, the reserve is accrued at the end of each month. To calculate the reserve, we use the formula: (OT + insurance premiums) / 28 * 2.33, where

• 28 - the number of vacation days per year for each employee, according to the collective agreement;
• 2.33 - the number of vacation days for 1 month worked.

Hence:

• Insurance premiums - 30.2%;
• Salary in January - 250,000 rubles;
• January reserve: (250,000 + 75,500) / 28 * 2.33;
• Vesna LLC formed a reserve for vacation pay in January in the amount of 27,086 rubles.

Postings on the creation of a reserve in Vesna LLC for deferred vacations on account 96: Dt Kt Posting amount, rub.
Content

• 1 Creation of a reserve
  • 1.1 Creation of a reserve for vacations of the future period
  • 1.2 Postings to create a reserve:
  • 1.3 Creation of a reserve for the repair of fixed assets
  • 1.4 Postings to create a reserve:
• 2 Write-offs
  • 2.1 Writing off the vacation reserve (example)
  • 2.2 Postings for the write-off of the vacation reserve
  • 2.3 Postings for the write-off of the provision for the repair of fixed assets
• 3 Closing 96 accounts

Creation of a reserve Creation of a reserve for vacations of the future period A reserve for vacation pay is created as follows:

• the amount of the reserve for holidays is calculated;
• based on the amount of the vacation reserve, the amount of insurance premium reserves is calculated;
• vacation reserve is created quarterly or monthly.

There are several ways to create a reserve.

Designed to summarize information on the status and dynamics of the amounts planned for the subsequent even write-off of expenses for various production needs. Let's figure out how reserves for future expenses are accounted for, what costs are accumulated on it, and what records are used to write them off .

Reserves for future expenses: account 96

The creation of reserves (fact and criteria) are fixed in the accounting policy of the organization. The reservation of amounts documented by the relevant calculations and accounting forms is reflected in the account. 96, corresponding with accounts for the production and sale of products: D / t 20, 23, 51, 69, 70, 76, 91, 97, 99 - K / t 96.

So, the amounts of reserves divided by items of planned future costs are recorded on this account. Most often, companies practice creating reserves for:

• Payment for vacations (+ insurance contributions to funds) in the coming periods;
• Payment of annual remuneration based on years of service;
• Expenses for seasonal work;
• Costs for the repair of fixed assets, land reclamation, environmental protection measures;
• Expenses for warranty repair and maintenance of facilities, etc.

The actual expenses incurred, included in the previously formed reserve, are reflected in the d-tu account. 96 and written off to production costs in correspondence with cost accounts.

Analytical accounting for accounts. 96 is carried out separately for each created reserve. The correctness of the formation and use of reserve amounts is periodically checked in accordance with calculations, estimates and other accounting documents. If necessary, their dimensions are adjusted. At the end of the year, an inventory is mandatory for reserve operations.

Reserves for future expenses in the balance sheet: line and its name

The reserves of future expenses formed by the company in the balance sheet are recorded in the lines of estimated liabilities:

• In the 4th section "Long-term obligations" - p. 1430;
• In the 5th section "Current liabilities" - p. 1540.

The created reserves are reflected in the indicated lines as long-term or short-term liabilities, based on the period of their circulation. For example, the accrued reserve for staff vacations of the current year will be fully used in the reporting period and, therefore, is considered as a short-term estimated liability, reflected in line 1540. Long-term liabilities include production restructuring operations, i.e. those planned to take place over a period exceeding 12 months.

Reserves for future expenses: postings

Accounting for reserves of future expenses and payments begins with the creation of a reserve:

At the end of the reporting period, on the basis of documented transactions, the accountant carries out itemized write-offs for production costs, ensuring their uniformity and based on the calculation methodology adopted by the company. The main accounting entries are:

Reserves for future expenses: account closure

During the production process, the size of the created reserves may change, therefore, by the end of the year, an overrun of reserve funds or an excess of actually incurred expenses over the reserve is possible. The excess of the reserve can be written off at the expense of current expenses (if justified). If at the end of the year there is a balance of reserve funds, then it is canceled or transferred to the next financial year. It is important to fix the operations for maintaining and closing the 96th account in the accounting policy of the organization.

Account 96 "Reserves for future expenses" is used to create a reserve of planned expenses. The reserve allows you to evenly distribute expenses for income tax purposes. Includes sub-accounts for the reserve of labor costs, seasonal work, equipment preparation, OS repair, etc.

Count 96 is passive. The creation of a reserve is carried out according to Kt, write-off - according to Dt.

Table 1. Types of reserves

Sub-accounts 96 accounts:

Creation of a reserve for vacations of the future period

The reserve for vacation pay is created as follows:

• the amount of the reserve for holidays is calculated;
• based on the amount of the vacation reserve, the amount of insurance premium reserves is calculated;
• vacation reserve is created quarterly or monthly.

There are several ways to create a reserve. The most accurate way is to calculate the average daily earnings and the number of paid vacation days for each employee, but it is also the most time-consuming. The selected method is set in the accounting policy of the organization.

To calculate the amount of the reserve, you can use a less labor-intensive method:

1. distribute employees into groups - in accordance with the cost allocation accounts;
2. for each group, calculate the total number of employee vacations per period, including additional ones;
3. for each group, calculate the average daily earnings;
4. calculate the amount of the reserve: multiply the average daily earnings by the number of vacation days.

Let's say we got the amount of the vacation reserve for the 1st quarter of 100,000 rubles. An operation to create a reserve is created on the last day of the quarter preceding the calculated one.

Creation of a reserve for the repair of fixed assets

The repair allowance is calculated based on the total cost of fixed assets and deduction standards.

The reserve for the repair of fixed assets is created on accounts 20, 44, etc.

The annual amount of the reserve should not exceed the arithmetic average of the amount of actual repairs for the previous 3 years.

Having calculated the annual amount, we find the amount of regular deductions for the reserve. If these deductions are made monthly, then the annual amount is divided by 12. If once a quarter, then the annual amount is divided by 4.

Suppose the amount of the reserve for the repair of fixed assets for our organization is defined as 150,000 rubles.

Reserve postings:

Monthly write-off to the reserve:

Write-off of reserves

Leave reserve write-off (example)

In our example, a vacation reserve was created in the amount of 124,900 rubles (100,000 + 22,000 + 2,900).

During the first month, the amount of vacation expenses for employees of the production unit amounted to 60,000. The amount of pension insurance contributions for these holidays was 13,200, insurance premiums to the Social Insurance Fund - 1,740.

Postings for the write-off of the vacation reserve

Postings for the write-off of the reserve for the repair of fixed assets

Fixed assets were repaired in the amount of 56,000 rubles.

Closing 96 accounts

It must be understood that the amounts of reserves cannot be calculated with absolute accuracy. The wage reserve, for example, may change for reasons such as:

• dismissal of employees;
• salary change;
• changes in the actual vacation schedule, etc.

If the reserve is exceeded, the amount “from above” is written off at the expense of current costs.

If the reserve is not fully spent, then it is carried over to the next year, or canceled.

For the reserve for the repair of fixed assets, the unspent balance can be closed to account 99.1 at the end of the year, if the repair is not completed in the current year.

Due to the requirements of the current legislation (local regulations, court decisions, agreements), in the course of the company's actions, the latter may encounter obligations, in relation to which the amount and term are not defined.

We are talking about valuation obligations, which are reflected in RAS 8/2010. Used for accounting account 96 "Reserves for future expenses".

What it is

The account is used for in order to create a reserve of planned costs. Thus, they ensure an even distribution of expenses in order to pay income tax and other areas. There are sub-accounts for personnel remuneration, seasonal work, equipment preparation activities, repair work with fixed assets, etc.

With proper management of account 96, the enterprise is endowed with the opportunity to avoid problems with the law and rationally plan its own budget.

The word "reserve" has French roots and is translated as reserve. Within the framework of modern accounting practice, it has been operated since the 19th century and involves the share of an asset that is written off as an expense, that is, it must always be filled with the funds presented in the balance sheet asset.

If there is no corresponding content, then use the contract account. The formation of a reserve is an indisputable right belonging to the owner of the enterprise. But this direction should not imply affecting all the interests of the budget.

What is used for

Account 96 is intended for use and generalization of information related to the status and movement of amounts reserved in order to include expenditure areas in certain categories of costs.

By credit certain amounts are reserved, and debit- regulation of actual expenses for which the reserve was previously formed.

The correctness of the formation and application is regularly checked on the basis of these calculations, estimates and rules.

Score 96 wears passive character. Formation is carried out by credit, write-off - by debit.

Accounting procedure

To recognize and reflect estimated liabilities in accounting, take into account a number of conditions mandatory to comply with:

• the organization in the course of past circumstances has an obligation that must be urgently fulfilled;
• it is highly probable that the economic benefits required to fulfill this obligation will be reduced;
• a reasonable estimate of the amount of the estimated liability.

If each position is complied with, the account reflects obligations for:

• holiday pay for employees;
• repair costs associated with fixed assets;
• the cost of warranty service of commodity items;
• court proceedings;
• restructuring of the company.

The legislative framework

In the process of carrying out activities, the accountant is guided by norms and features:

• local regulations adopted within the enterprise;
• orders and orders from the authorities;
• government regulations;
• regional opinions;
• accounting rules (PBU).

All laws are extensive and involve consideration of the situation from several positions.

Formation, write-off, typical accounting entries

Based on the nature of the estimated liabilities, the amount is attributed to expenditure areas by type of activity, as well as to other expenses. As for the maintenance of analytical accounting on the account, it is carried out in the areas of obligations. The credit balance is reflected in the liabilities side of the balance sheet. line 1430.

By debit

1. Dt 96 Kt 23- write-off of expenses for completed current repairs, write-off of costs that are aimed at auxiliary production.
2. Dt 96 Kt 28- displaying the write-off of costs for the elimination of defects.
3. Dt 96 Kt 29- the costs of service industries are written off due to preliminary formation.
4. Dt 96 Kt 51— an increase in the RPR settlement account based on a bank statement.
5. Dt 96 Kt 52- increase in reserves of expenses at the expense of cash.
6. Dt 96 Kt 70- accrual of payment for vacation pay to workers.
7. Dt 96 Kt 97- write-off of repair costs.
8. Dt 96 Kt 99- accrual of an excess amount for the repair of fixed assets.
9. Dt 96 Kt 10-1- write-off of the cost of materials used.
10. Dt 96 Kt 69-3- Calculation and payment of tax contributions.
11. Dt 96 Kt 91-1- attribution to the financial results of the amounts that have been accrued in the current year.

By loan

In the credit direction, the account includes a large number of transactions.

1. Dt 20 (23) Kt 96- reflection of deductions to the reserve intended for the repair of fixed assets.
2. Dt 20 Kt 96- accrual of monetary amounts, the formation of reserves for the payment of vacation pay and the reflection of deductions for the subsequent repair of fixed assets.
3. Dt 23 Kt 96- there has been an accrual.
4. Dt 29 (44) Kt 96- reflection of the amount of monthly deductions for repair operations on fixed assets.
5. Dt 44 Kt 96- reflects payments for repair work on fixed assets of the tenant.
6. Dt 84 Kt 96– the formation of a financial aid fund within the enterprise.
7. Dt 86 Kt 96- Contributions from the Capital Improvement Fund.
8. Dt 97 Kt 96- a reflection of the fact that the actual costs of repair work exceed the reserve that was created for the repair of fixed assets.

In practice, a large number of postings are used, which should be taken into account and taken into account in accounting activities.

Features of closing 96 accounts

The reserve is calculated not 100% accurate. It changes due to exposure a number of factors:

• dismissal of employees;
• changes in salary and ancillary deductions;
• changes in the actual vacation schedule;
• other prevailing circumstances.

When the reserve is exceeded, the amount "on top" is subject to write-off through current expenses. If the expenditure has not occurred in full, it is carried over to the next year or reversed.

What conclusion can be drawn

Account 96 plays an important role in the balance sheet and the activities of the organization as a whole. It has sub-accounts that operate in different directions of expenses, and is responsible for the stocks of the enterprise in order to correctly allocate the budget.

The account corresponds with a large number of other directions and is used in the formation of postings. They characterize the principles of the enterprise and accounting.

96 accounting account is an account entered to reflect the movement of reserves for future expenses of the organization. What regulatory framework governs such reserves? How can an accountant accurately enter the data of account 96 into the balance sheet? What are the nuances in the preparation of accounting entries for account 96? We will answer these questions in the article.

Normative base

Estimated liabilities are reflected on account 96 of accounting. The definition of this concept is given in PBU 8/2010 "Estimated Liabilities, Contingent Liabilities and Contingent Assets". It follows from clause 4 of this document that an estimated liability is an obligation of an organization with an indefinite amount and a period of execution, arising as a result of legislative acts, court decisions, contracts, as well as based on business practices or as a result of the actions of an organization that indicate to other persons that she has assumed certain obligations, which she will subsequently fulfill.

Paragraph 8 of PBU 8/2010 states that estimated liabilities are reflected in account 96 “Reserves for future expenses”.

It should be noted that paragraph 3 of PBU 8/2010 states that this provision may not be used by organizations that have the right to use the simplified accounting method. This is a right, not an obligation of the organization. Thus, the simplistic people independently determine whether to create reserves for future expenses, and if so, for which expenses, and necessarily reflect their decision in the accounting policy.

Characteristics of account 96 and reflection in the balance sheet

Account 96 of accounting is a passive synthetic account included in Section VIII "Financial Results" of the Chart of Accounts. A passive account can only have a credit balance. That is, the accountant, creating a reserve for future expenses, contributes this amount to the credit of account 96 in correspondence with cost accounts. The accountant reflects the write-off of the reserve in the debit of account 96. Thus, it is impossible to write off more from the reserve than was deposited there, which is why the account has a credit balance. Full correspondence of accounts is indicated in the Instructions for the use of the Chart of Accounts.

Analytical accounting for account 96 - Reserves for future expenses is maintained for each created reserve. For these purposes, you can open sub-accounts. For example:

• 96.01.1 "Reserve for the payment of vacation pay to employees";
• 96.01.2 "Reserve for the payment of insurance premiums";
• 96.02 "Reserve for warranty repair and warranty service";
• 96.03 "Other reserves", etc.

Reserves are created monthly, quarterly or annually. Periodicity should be approved in the accounting policy. The accountant creates a reserve on the last date of the reporting period for the next reporting period.

Before this, a reconciliation of the balance of account 96 with the reserved amounts, with the data of estimates and calculations is necessarily carried out and, if necessary, adjusted.

Usually, having a non-zero balance at the end of the year, account 96 in the balance sheet is reflected in liabilities in line 1540 “Estimated liabilities”.

Postings when creating a provision for vacations

The method of calculating the amount of the reserve for vacations is not strictly established, so it must be prescribed in the accounting policy of the organization.

Here is one of the calculation options:

• We divide all employees into groups in accordance with the cost accounts that account for their salaries.
• We summarize all unused vacation days attributable to each included in the group at the end of the period.
• We calculate the average daily earnings per group by dividing the wage fund (payroll) of the group for the period by the number of calendar days in the period and by the number of employees in the group.
• We calculate the reserve by multiplying the average earnings by the amount of unused vacation days.

An example of a calculation with postings can be downloaded.

Don't know your rights?

If at the reporting date the reserve is not used up in full, then it is carried over to the next period. That is, for the new period, we calculate the reserve according to the above rules and form it by crediting account 96 - Reserves for future expenses (sub-account "Reserves for the payment of vacation pay to employees"), the difference between the calculated reserve and the balance on sub-account 96.01.1. Thus, as of the reporting date, we again have the current amount of the reserve on the credit of subaccount 96.01.1.

We do the same with sub-account 96.01.2 “Reserves for the payment of insurance premiums”.

A continuation of the previous example with this posting option can be downloaded from the link.

If the reserve is not enough, then the amounts of vacation pay in excess of the reserve are accrued in the usual way and are charged to the appropriate expense accounts.

Reserve for warranty repair and warranty service

Similarly with the creation of a reserve for holidays, the methodology for calculating the reserve for warranty repairs is fixed in the accounting policy of the organization.

The reserve is calculated as follows:

• We consider the proceeds without VAT from the sale of goods / products covered by warranty repairs over the past three years. If the sale takes place less than three years, then we take the proceeds from the sale for the actual period of sale. If the organization has just started selling warranty goods/products, then it has the right to create a reserve for warranty repairs in the amount of the expected costs of warranty repairs.
• We calculate the actual costs of warranty repairs for the same period for which we calculate the revenue.
• Percentage of deductions to the reserve = expenses for warranty repairs / revenue without VAT from the sale of warranty goods.
• The size of the reserve is determined as follows: reserve = revenue without VAT of guaranteed goods for the reporting period × percentage of deductions to the reserve.

An example of calculating the reserve and processing postings for warranty repairs can be downloaded.

At the end of the reporting period, it is necessary to correct the amounts of the reserve. To do this, we calculate the amount of the reserve for the next period. If there is a balance on subaccount 69.03, that is, the reserve has not been fully used, it can be carried over to the next period, adjusted if necessary.

If the reserve is not enough, then in the reporting period, warranty repairs are carried out in the general manner and are reflected in the cost accounts.

Creation of a provision for unprofitable contracts

Often there are situations when an initially profitable contract becomes unprofitable. And at the same time, unilateral termination of the contract entails considerable sanctions. In such a situation, it becomes necessary to create a reserve for unprofitable contracts. In the case under consideration, the reserve is created in the month when the fact of unprofitability of the contract is discovered.

See an example of postings when creating a reserve for unprofitable contracts.

If the reserve is not enough, then the excess amount is written off in the general manner, attributing to expenses for ordinary activities or other expenses.

If a large amount was reserved, the credit balance on the reserve for unprofitable contracts is written off to other income, that is, to the credit of account 91.01.

Account 96 "Reserves for future expenses" is used to reflect estimated liabilities. The use of this account is not mandatory for business entities that are legally allowed to keep simplified accounting. This is a passive account that may have a balance at the end of the period and is reflected in the balance sheet on line 1540 "Provisions". The credit of the account reflects the creation of a reserve, and the debit shows its use.