Accounting for retained earnings (uncovered losses). Retained earnings (uncovered loss) Accounting for retained earnings

One of the final entries in accounting is “accounting for retained earnings.” After all, the work of any enterprise is aimed at a specific financial result. Summarizing the results of commercial activities, such a result reveals how profitable the enterprise was. The result of financial activity can be imagined as the difference between income and expenses. Expenses are calculated based on the list of necessary costs incurred by the organization, and income is the sum of all receipts for a given period.

Determination of enterprise income

In accounting, all income can be divided into two types:

Income from basic activities of an organization or enterprise. This type of income is also known as “revenue”;
Other types of income.

Revenue can be correctly accounted for only if it meets the following requirements:

The enterprise must have all permits, patents, licenses to carry out its commercial activities;
Revenue for the reporting period can be calculated mathematically;
The economic benefits of the enterprise have increased;
Services, works or goods are no longer the property of the enterprise. Ownership remains with the final buyer.

Other types of income are the result of additional activities of the enterprise. The second group of income includes:

Registration of warehouse, industrial, office and other premises for rent - if these transactions are not included in the list of basic activities;
Contributions for shares in the authorized capital of third-party organizations;
Profit from joint activities;
Interest on loans provided and income from deposits;
Income from penalties reimbursed under the terms of execution of business contracts;
Funds contributed from the sale of property that is on the balance sheet;
Revaluation of assets;
Unaccounted profits from previous periods.

A separate line in the list is financial injections received due to various emergency circumstances. These are mainly proceeds from insurance payments issued as compensation for damage caused by fire, flood and other natural disasters.

This can also include the value of assets recognized as good after write-off, or bad debts returned.

Determination of Gross Profit

The current paragraphs of the “Regulations...” determine gross profit by the difference between the amounts of sales proceeds (excluding VAT) and the nominal cost of sales of goods sold, services provided or work performed.

Profit from sales is usually written as the difference between two components:

Reducible – gross profit of the organization;
Deductible – expenses associated with sales.

Sometimes this difference is greater than the profit received. If, after a period of time, the company is in the red, a loss appears on the balance sheet.

The profit or loss ratio is increased by adding the amount of other income to the total value, and reduced by the amount of other losses.

The result of the calculations is profit, which serves as the basis for accrued taxes. After transferring the necessary taxes and fees, net profit (loss) remains on the company’s balance sheet.

Display of financial result

In the chart of accounts 90, the group of accounts is responsible for the financial result. This indicator combines two types of profit:

Sales results for the basic type of activity;
Other income or expenses.

Based on the results of calculations, financial profit is calculated.

The enterprise's revenue for the reporting period is posted to Kt. Accounts 9O. The cost of sales is shown there, only by debit. The difference between costs and revenue forms the financial result. Every month, in subaccount 9 to account 9O, the result of the sale is displayed. The total profit is recorded in the debit of the specified subaccount and in the credit of the account. 99. If the reporting period was completed without profit and a loss was recorded, these indicators are reflected by reverse entry.

Financial profit is tracked in accounts such as:

Sales;
Other expenses and income;
Profit and loss.

In essence, they are cumulative. Data is entered into these cells throughout the year. These results are needed to fill out the Income Statement form.

During the year, the total accruals of income tax paid fall on the Dt.99 account. On the last working day 99 the account is cleared. The total amount, which is a reflection of the final annual financial result, is reflected in account 84, which is called “retained earnings.” If, when calculating the results of business activities, losses are obtained, the balance will hang on the debit of account 99.

After paying state taxes and fees, net profit remains in the accounts of enterprises. It needs to be posted to the credit of account 84, from the debit of account 99. Losses are reflected in the same account by reverse entry.

After summing up the balance sheet should reflect the actual financial result.

It can be written as follows:

Determination of the monthly financial result (profit) from the sale of goods, services, work (basic type of activity): Account debit. 90 subaccount 9 (Profit and loss from sales) Credit 99 (Profit and loss);
Determination of the monthly financial result (loss) from the sale of goods, works, services (main activity): Debit 99 account, credit 90 account subaccount 9;
Business expenses of an enterprise: losses of fixed assets, goods, materials or finished products are reflected by posting: Dt. 84 “Profit and losses” - Credit account. 41 “Goods”, count. O1 “fixed assets” or account. 43 “Finished products”;
Amount of retained earnings of the reporting year: Dt. "Profit and Loss", Kt. 84 (this entry is reflected once at the end of the reporting year);
Enterprise income from insurance compensation amounts: Dt. 51, Kt.99;
Accrued income tax is reflected as follows: Dt.99, Kt.68.

Display of retained earnings

Retained earnings in accounting should be listed in areas of possible use. For example, it can be divided into various consumption or accumulation funds. Enterprises and organizations where the possibility of creating special-purpose funds is provided for by the charter can open sub-accounts to the account. 84 “Retained earnings”.

This account should be displayed in such a way as to show information on the areas of accumulation and use of enterprise funds in the most accessible way. It should be taken into account that all funds of retained earnings can be divided into used and unused. There are funds that have simply been accumulated in this account. There are funds that have already been used as an incentive for the development of the enterprise. You can't mix them.

Account 84 is cumulative. It collects information about uncovered losses or retained earnings in the company’s accounts. Profit is the property of shareholders or owners of a given enterprise; they can dispose of it in full.

The accounting department of a joint stock company must distribute profits based on the minutes of the annual meeting of shareholders of the joint stock company. Based on the decisions of the company’s meetings, the enterprise’s accounting department distributes the final profit according to areas.

If it was decided to send all the profit as payments, this operation is reflected by the posting: Dt.84-Kt.75. Sometimes instead of 75 invoices they use 70, which is called “settlements with personnel”. If an organization pays dividends, then taxes must be withheld from these accrued amounts. This operation can be reduced to the form: Dt.75-2 – Kt.68 (Calculations for taxes and fees). Our country's tax base allows dividends to be paid in several ways. For example, through the cash desk of an enterprise, the amounts paid will be recorded in accounting as: Dt.75-Kt.50. When paying dividends through a bank account, the posting will look like: Dt.75-Kt.51 “bank accounts”. If the shareholders or founders of this enterprise are foreign citizens - non-residents, then accruals on dividends in this case must be carried out through a foreign currency account. Accounting entry in this case: Dt.ac.75 – Ct.ac.52 (Currency accounts). Dividend payments may also be made in non-cash form.

Instead of cash, you can pay shareholders with fixed assets, finished products, goods or materials. In this case, Dt. 84 accounts will correspond with Kt. Account 41 – “Goods”, 10 “materials”, 43 “Finished products”, O1 “fixed assets” and so on;

The final retained earnings, according to the decision of the shareholders, are sometimes directed to financial assistance by employees, social workers. payments, modernization of production. Such a distribution of funds is possible if provided for by the statutory documents of the enterprise or organization and agreed upon by the minutes of meetings. Such areas of spending do not affect the main accounts, but can be reflected in the analytics of account 84.

Display of uncovered loss

It happens that at the end of a financial period a commercial enterprise does not make a profit and is left with uncovered losses. In this case, the issue of financial results is also submitted for discussion at the meeting of shareholders.

All shareholders of a joint stock company must decide from what sources uncovered losses will be repaid. Currently, the legislative framework of the Russian Federation allows in this case to do the following:

The detected loss is transferred in equal parts to the future period of the organization’s activities;
The loss is repaid immediately.

Those enterprises that plan further work and are aimed at obtaining results are interested in gradually writing off the loss. This is done by partially reducing the tax base for paying income tax. Over some time, it is gradually reduced in equal parts, and in subsequent tax periods the income tax may be reduced. This is done until the company fully covers its losses.

But provided that the company suspends its activities or changes its form of ownership, it is advisable to pay off the loss of the reporting period immediately. This is done in several ways:

Reducing the authorized capital to the value of net assets. In this case, the posting will look like: Dt.8O “Authorized capital” Kt.84;
When paying off accrued losses, reserve capital funds are used: Dt.85 (reserve capital) Kt.84;
Repayment of the amount of accrued loss with targeted contributions from company participants: Dt.75 (settlements with founders) Kt. 84.

Thus, the profit and loss values of any organization or enterprise are closely related to the financial result. The main nuance of retained earnings is its intended use. The decision to invest this amount should be accompanied not by verbal orders from superiors, but by relevant documents.

An accounting employee can distribute profits only in the next reporting period (next calendar year), and only on the basis of confirmed documents regulating this distribution.

It should be remembered: if after the reporting period the company records a loss, an unscheduled tax audit may be scheduled. The state is not interested in unprofitable enterprises, so decisions on this must be made with full responsibility. All documents and decisions on the results of the enterprise’s activities must be certified and presented by the inspection body. Accounting must convincingly demonstrate the negative result obtained and present documents that decide the fate of repayment of losses. If, by decision of the owners, it is planned to attract borrowed finance, then there must be an agreement with the borrowers, which will precisely indicate the loan repayment plan. In case of repayment of funds will be carried out at the expense of targeted contributions from shareholders, the corresponding decision must be documented in the minutes of shareholders and certified by a notary.

Management accounting. Cheat sheets Zaritsky Alexander Evgenievich

113. Accounting for retained earnings (uncovered losses) of an enterprise

Accounting for retained earnings (uncovered loss) is kept in passive account 84 “Retained earnings (uncovered loss)”. Account 84 is intended to summarize information about the presence and movement of amounts of retained earnings or uncovered losses of the organization.

The amount of net profit of the reporting year is written off with the final turnover of December to the credit of account 84 “Retained earnings (uncovered loss)” in correspondence with account 99 “Profits and losses”. The amount of the net loss of the reporting year is written off with the final turnover of December to the debit of account 84 “Retained earnings (uncovered loss)” in correspondence with account 99 “Profits and losses”.

The direction of part of the profit of the reporting year to pay income to the founders (participants) of the organization based on the results of approval of the annual financial statements is reflected in the debit of account 84 “Retained earnings (uncovered loss)” and the credit of accounts 75 “Settlements with founders” and 70 “Settlements with personnel for wages” " A similar entry is made when paying interim income.

The write-off of the loss of the reporting year from the balance sheet is reflected in the credit of account 84 “Retained earnings (uncovered loss)” in correspondence with accounts: 80 “Authorized capital” - when the amount of the authorized capital reaches the value of the organization’s net assets; 82 “Reserve capital” - when funds from reserve capital are used to pay off losses; 75 “Settlements with founders” - when repaying the loss of a simple partnership at the expense of targeted contributions of its participants, etc.

Analytical accounting for account 84 “Retained earnings (uncovered loss)” is organized in such a way as to ensure the generation of information on the areas of use of funds. At the same time, in analytical accounting, funds of retained earnings used as financial support for the production development of the organization and other similar activities for the acquisition (creation) of new property and not yet used can be divided.

Subaccounts in the chart of accounts for account 84 are not allocated. Transactions on this account are recorded only in December (31st day) of the reporting year.

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Question 46 Analysis of the formation of retained earnings It is advisable to begin the analysis of retained earnings by studying its composition and the dynamics of changes in individual items. The following articles of Form No. 2 “Report on

Or loss) is reflected in account 99 “Profits and losses”.

On December 31 of each year, when the balance sheet is reformed, the amount of net profit (loss) received is debited from account 99 “Profits and losses” to the account 84 “Retained earnings (uncovered loss)”- active-passive.

Opening balance (by debit) - the amount of uncovered losses of previous years at the beginning of the period.

The organization's accountant made the following accounting entries:

Dt 84 Kt 75-2,300,000 rub. - dividends accrued to an individual;

Dt 84 Kt 75-2,700,000 rub. - dividends of the organization are accrued;

Dt 75-2 Kt 68 90,000 rub. - tax on personal income is assessed (at a rate of 30%);

Dt 75-2 Kt 68 63,000 rub. - income tax was charged on dividends of a Russian company (at a rate of 9%);

Dt 75-2 Kt 51,210,000 rub. - dividends were paid to an individual;

Dt 75-2 Kt 51,637,000 rub. - dividends were paid to the organization.

The synthetic accounting register for account 84 “Retained earnings (uncovered loss)” is order journal No. 15.

Analytical accounting for account 84 is carried out in the areas of use of retained earnings (writing off uncovered losses).

When an organization uses an automated form of accounting using the software product "1C: Enterprise", the registers of synthetic accounting are the turnover of account 84 (General Ledger), analysis of account 84, balance sheet, etc. The analytical accounting registers are the balance sheet for account 84, analysis of account 84 by subconto, turnover between subcontos, account card 84, account card 84 by subconto, etc.

Main correspondence for account 84 “Retained earnings (uncovered loss)”

Contents of operations	Debit	Credit
The remaining unused profit of the reporting year was written off	99	84-1
The loss of the reporting year is written off	84-1	99
Retained earnings of the reporting year are transferred to retained earnings of previous years	84-1	84-2
The uncovered loss of the reporting year is transferred to the uncovered loss of previous years	84-2	84-1
Accrued income (dividends) from participation in the capital of the organization to the founders who are on the staff of the organization	84	70
Accrued income (dividends) from net profit to founders who are not on the staff of the organization	84	75-2
Part of the net profit is used to replenish reserve capital	84	82
Net profit is used to repay losses from previous years	84-1	84-2
Net profit is used to replenish the authorized capital	84 75-1	75-1 80
The reduction of the authorized capital is reflected in order to bring it into line with the size of the organization’s net assets	80	84
Repayment of losses from reserve capital is reflected	82	84
Targeted contributions from the organization's participants were used to pay off the loss.	75 (70)	84

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Accounting for retained earnings (uncovered loss)

To account for the financial results of the organization’s activities, the Chart of Accounts for accounting the financial and economic activities of organizations (as amended by Order of the Ministry of Finance of the Russian Federation dated May 7, 2003 N 38n) provides for a system of accounting accounts: 90 “Sales”, 91 “Other income and expenses”, 99 “ Profits and losses", 84 "Retained earnings (uncovered loss)".

Account 90 “Sales” is intended to summarize information on income and expenses associated with the organization’s normal activities, as well as to determine the financial result for them. This account reflects, in particular, revenue and cost.

When recognized in accounting, the amount of revenue from the sale of goods, products, performance of work, provision of services, etc. is reflected in the credit of account 90 “Sales” and the debit of account 62 “Settlements with buyers and customers.” At the same time, the cost of goods sold, products, works, services, etc. is written off from the credit of account 41 “Goods” to the debit of account 90 “Sales”.

Account 91 “Other income and expenses” is intended to summarize information on other income and expenses of the reporting period. In the credit of account 91 “Other income and expenses” during the reporting period the following are reflected: receipts associated with the provision for a fee for temporary use (temporary possession and use) of the organization’s assets - in correspondence with the accounts of settlements or cash; receipts related to the provision for a fee of rights arising from patents for inventions, industrial designs and other types of intellectual property - in correspondence with accounts for accounting settlements or cash; receipts related to participation in the authorized capitals of other organizations, as well as interest and other income on securities - in correspondence with settlement accounts, etc.

The debit of account 91 “Other income and expenses” during the reporting period reflects: expenses associated with the provision for a fee for temporary use (temporary possession and use) of the organization’s assets, rights arising from patents for inventions, industrial designs and other types of intellectual property property, as well as expenses associated with participation in the authorized capital of other organizations - in correspondence with cost accounts; the residual value of assets for which depreciation is calculated and the actual cost of other assets written off by the organization - in correspondence with the accounts of the relevant assets; expenses associated with the sale, disposal and other write-off of fixed assets and other assets other than cash in Russian currency, goods, products - in correspondence with cost accounts; expenses for operations with containers - in correspondence with cost accounts, etc.

Account 99 “Profits and losses” is intended to summarize information on the formation of the final financial result of the organization’s activities in the reporting year. The final financial result (net profit or net loss) is made up of the financial result from ordinary activities, as well as other income and expenses. The debit of account 99 “Profits and Losses” reflects losses (losses, expenses), and the credit reflects the profits (income) of the organization.

Account 99 “Profits and losses” during the reporting year reflects:

- profit or loss from ordinary activities - in correspondence with account 90 “Sales”;
- the balance of other income and expenses for the reporting month - in correspondence with account 91 “Other income and expenses”;
- the amount of accrued conditional income tax expense, permanent liabilities and payments for recalculation of this tax from actual profit, as well as the amount of tax penalties due - in correspondence with account 68 “Calculations for taxes and fees”.

“Business transactions are reflected in account 99 “Profits and losses” on the so-called cumulative principle, that is, on an accrual basis from the beginning of the year. By comparing credit and debit turnover in account 99 “Profits and losses,” the final financial result for the reporting period is determined.”

At the end of the reporting year, when preparing annual financial statements, account 99 “Profits and losses” is closed. In this case, by the final entry in December, the amount of net profit (loss) of the reporting year is written off from account 99 “Profits and losses” to the credit (debit) of account 84 “Retained earnings (uncovered loss)”.

Account 84 “Retained earnings (uncovered loss)” is intended to summarize information about the presence and movement of amounts of retained earnings or uncovered losses of the organization.

The net profit of an organization for the reporting year represents the final financial result of its activities for this period, identified on the basis of accounting for all business transactions.

Retained earnings from previous years represent the remainder of the profit remaining at the disposal of the organization based on the results of work for the previous reporting year and decisions made on its use (direction to reserves formed in accordance with legislation or constituent documents, to cover losses, to pay dividends, etc. ). Based on this, net profit is formed on the organization’s balance sheet only at the end of the current (reporting) year, i.e. We are talking about reflecting the organization’s operations in the accounting accounts for the current period.

The main part of the financial result is generated at the enterprise SMU Communications LLC from the main type of activity.

At the enterprise SMU Communications LLC, according to Form No. 2 “Profit and Loss Statement” (Appendix 6), for 2009, profit from the main activity was received in the amount of 3,287 thousand rubles. Profit is reflected by posting:

Dt sch. 90 “Sales” (subaccount 90/9)

K-t sch. 99 "Profits and losses"

In the amount of 3287 thousand rubles

Net profit at the end of 2009 amounted to 347 thousand rubles, which was written off by accounting entry:

Dt sch. 99 "Profits and losses"

K-t sch. 84 “Retained earnings (uncovered loss)”

In the amount of 347 thousand rubles.

The net profit remaining at the disposal of the enterprise is used to pay dividends.

In addition to paying dividends, retained earnings can be used for other purposes. For accounting purposes, funds transferred in connection with the implementation of charitable activities, sporting events, recreation, cultural and educational events and other similar events in accordance with clause 12 of the Accounting Regulations “Organization Expenses” (PBU 10/99) are other expenses and are reflected in the debit of account 91 “Other income and expenses”. However, such payments can also be made at the expense of retained earnings, since the decision on the use of retained earnings in a joint stock company or limited liability company is within the competence of the general meeting of shareholders (participants). Therefore, if the minutes of the general meeting of shareholders (participants) determine that some expenses should be incurred at the expense of profits, in accounting this expense should be reflected in the debit of account 84 “Retained earnings (uncovered loss”).

Thus, when closing (reforming) the balance sheet after making an appropriate decision, the shareholders (participants) of the company must reflect the direction of profit to reserve capital, for consumption needs and for the payment of dividends to the founders. The distribution of profit to consumption and accumulation funds is reflected in internal records in account 84 “Retained profit (uncovered loss”), and in analytical accounting the used and unused parts of net profit are distinguished.