Account turnover 99. Determination of financial results and closing of the year

How is the final financial result of an enterprise’s activities for the year formed? How are the results summed up? In this article, we will take a closer look at account 99 “Profits and Losses”, why it is needed, and what transactions in account 99 are reflected during the year. Accounting for the financial results of an organization's activities shows the company's effectiveness.

In the last article we looked at it, where I already indicated the connection between the accounts. 90 and 99. We also looked at and saw the connection between the count. 91 and 99. Let's move on.

By the way, in the near future we will deal with .

Accounting for the financial results of an enterprise's activities

The financial result for the month is formed using the account. 99.

What does the financial result consist of?

1. financial results for main activities,
2. other income and expenses.
3. income and expenses related to emergency situations at the enterprise (fires, natural disasters, etc.).
4. accrued

By debit account 99 losses are reflected, and profits on the loan.

1. When reflecting the financial result for the main activities of the account. 99 corresponds with .

Postings to reflect profit and loss from main activities:

• D90/9 K99- entry to reflect profit from the main activity.
• D99 K90/9- entry to reflect losses from the main activity.

2. When taking into account other income and expenses, account. 99 corresponds with .

Postings for recording other income and expenses:

• D91 K99- other income is taken into account.
• D99 K91- other expenses are taken into account.

3. When accounting for income and expenses related to emergency situations, account. 99 corresponds with various accounts, .

4. When accounting for accrued income tax payments, account. 99 corresponds with .

At the end of the month, the total account balance is calculated. 99, if the final balance is debit, the organization is at a loss this month, if the balance is credit, it is in profit.

At the beginning of each month, the balance of account 99 is transferred from the previous month to the current month. Throughout the year, the balance of profits or losses accumulates in account 99 on an accrual basis. At the end of the year 99 closes with final entries on .

Video lesson “Accounting for profit and loss on account 99: typical entries, examples”

This video lesson reveals the rules of accounting for account 99 “Profit and Loss”, examines the corresponding accounts, standard entries and accounting examples. The lesson is taught by a consultant and expert of the site “Accounting for Dummies, Chief Accountant Gandeva N.V. ⇓

You can download the slides and presentation for the video using the link below.

Postings for closing account 99

• D99 K84- final financial result - profit.
• D84 K99- the final financial result is a loss.

At the beginning of next year. 99 opens again.

As a result, on the account. 84, either profit (on credit) or loss (on debit) is reflected at the end of the year. Account 84 is used to distribute profits for any needs of the organization, for example, for payments to founders. Also, if previously on the account. 84 there was a loss, then this year’s profit can cover the loss of previous years.

This is where we end with the study of the Fundamentals of Accounting, we have analyzed the main business transactions occurring in the enterprise, and examined how the final financial result is calculated. Before we start preparing accounting and tax reporting, let’s look at taxation: what taxes exist and how they are calculated. I suggest you go to section Step 2.-.

Accounting accounts are designed to record all monetary transactions. This review will examine in detail account 99 “Profit and Loss”. The reader will learn about what functions it performs, whether it can have its own categories, how to work with it and close it. The information is accompanied by examples to help better explain the topic.

Purpose of account 99

Every enterprise works to achieve the main goal - increasing profits. Financial result is the sum of all income from each type of activity. For or services you will need to invest money, but how profitable this will be in the reporting period will become known after summarizing all the information on cash costs and receipts. This is exactly what the 99 account is intended for, which can reflect:

• increase or decrease in income from the main activity (D90 K99);
• the balance of other expenses and income for the reporting period (D91 K99);
• the impact of emergency situations on economic activities (force majeure, accidents);
• accrual of amounts intended for calculating taxes (interaction with account 68).

Is it possible to open new subaccounts?

According to the instructions, the account in question has no categories. An accountant can create them independently, taking into account the requirements of the enterprise (analysis, control, reporting). In this regard, the following system could be introduced:

• 99/1 “Profit or loss from the sale of goods”;
• 99/2 “Balances of miscellaneous income (expenses)”;
• 99/3 “Unexpected income”;
• 99/4 “Unexpected expenses”;
• 99/5 “Income tax”;
• 99/6 “Tax contributions”.

The last three subaccounts can have a balance in debit and credit. You can also open category 99/9 “Net profit or loss”, which will show the amount of income received (deductions) for the reporting period.

Debit correspondence

99 account can interact by debit with different categories:

What kind of wiring can there be?

The debit of account 99 reflects the enterprise's losses for various types of activities. Examples can be seen in the table.

	Damage from installation equipment due to unpredictable events (fire, hurricane, natural disaster, etc.).
	Deferred tax assets were written off.
	The costs of the main production for canceled orders are included in losses.
	The amount of VAT on MT (material assets) has been written off.
	Production losses caused by unpredictable events.
	Reflection of costs from defects.
	Losses of finished products.
	Calculation of income tax.
	Damage from canceled orders is included in losses
	Identification of the balance of insurance premiums.
	The amounts intended for contributions to the preventive measures fund have been determined.

Loan correspondence

Account 99 “Profits and losses” interacts on the loan with the following categories:

• "Materials" (10).
• “Financial transactions with suppliers and contractors” (60).
• “Currency and current accounts” (52, 51).
• “Retained earnings” (84).
• “Sales of goods” (90).
• “Shortages and damage from damaged valuables” (94).
• “Reserves for future expenses” (96).
• “Special bank accounts” (55).
• “Intra-household calculations” (79).
• “Financial transactions with creditors and debtors” (76).
• “Other expenses and income” (91).
• “Settlements with employees for various operations” (73).

Loan transactions

The table provides some examples to help you understand what a 99 credit entry account may have, reflecting the profit (income) of the company.

	Identification of excess materials.
	Receipt of income from unexpected situations to the cash register.
	Crediting on profits.
	Attribution of the excess amount intended for the repair of fixed assets to the results of the reporting period. A similar exception is provided for in some enterprises.
	Reflection of the financial result from intermediary activities (account credit 99 characterizes income).
	Write-off of profit from the main activities of the organization.
	Identification of balances of insurance reserves.
	The final entry of the last month in the reporting period, which writes off the amount of the net loss.

Features of closing 99 profit and loss accounts

The result of the company's activities in monetary terms is reflected when comparing debit and credit turnover. In this regard, it is necessary to close some accounting accounts (99, 90, 91). In modern production conditions, it is very important to correctly define and economically justify the procedure in question. To perform tasks competently, a specialist must be guided by a special rule. First of all, you should close the accounts of industries and companies with the largest number of clients receiving the least amount of counter services, and in the opposite situation - in the last place (maximum services and minimum buyers).

Sequence of closing account 99

The operation in question is carried out according to the following algorithm:

1. Closing account 90 “Product sales”. By comparing income and expenses from sales, you can formulate the final result from the company’s core activities. At the end of the year, the debit reflects the goods sold, taking into account all costs. The loan is used to generate the sales amount. The total value is equal to the difference between the credit and debit balances of account 90 and 90/3 “VAT”. If the debit balance is greater than the credit balance, make the following entry: D99 K90 (loss), otherwise - D90 K99 (profit).
2. The same operations should be carried out as in the first stage. If financial results are negative, posting D91 K99 and D99 K91 are posted if they are positive.
3. Thus, account 99 is closed last. The result that was formed by comparing the debit and credit balances of accounts 90 and 91 is retained profit remaining at the disposal of the organization, or uncovered loss. The results are entered in credit or debit of account 84.

The final completion of the procedure is carried out by gradually closing distribution and expense accounts. This allows you to create a preliminary working balance that reflects the real financial position of the organization.

Knowing all the distinctive features that the 99 “Profit and Loss” account has, young professionals will be able to understand all the features of accounting. Do not forget about PBU, as well as reference and legal systems, without which the legal activities of enterprises are impossible.

In this material, which continues the series of publications devoted to the new chart of accounts, an analysis of account 99 “Profits and losses” of the new chart of accounts is carried out. This commentary was prepared by Y.V. Sokolov, Doctor of Economics, Deputy. Chairman of the Interdepartmental Commission on Reforming Accounting and Reporting, member of the Methodological Council on Accounting under the Ministry of Finance of Russia, first President of the Institute of Professional Accountants of Russia, V.V. Patrov, professor of St. Petersburg State University and N.N. Karzaeva, Ph.D., deputy. Director of the audit service of Balt-Audit-Expert LLC.

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 composed of the financial result from ordinary activities, as well as other income and expenses, including extraordinary ones. The debit of account 99 “Profits and Losses” reflects losses (losses, expenses), and the credit reflects the profits (income) of the organization. A comparison of debit and credit turnover for the reporting period shows the final financial result of the reporting period. 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”; losses, expenses and income due to emergency circumstances of economic activity (natural disaster, fire, accident, nationalization, etc.) - in correspondence with accounts of material assets, settlements with personnel for wages, cash, etc. ; accrued payments of income tax and payments for recalculation of this tax from actual profits, as well as the amount of tax penalties due - in correspondence with account 68 “Calculations for taxes and fees”. 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)”. The construction of analytical accounting for account 99 “Profits and losses” should ensure the generation of data necessary for drawing up a profit and loss statement.

From the point of view of the theory of dynamic balance, account 99 “Profits and losses” is the most important resultant account in the entire system of accounts. From the point of view of the theory of static balance, this is an account on which the financial result is formed and it acts as a regulating additional account to account 83 “Additional capital”, and at the end of the year it acts as an operating, screen account and transfers the balance to account 84 “Retained earnings” ". And in the spirit of static theory, it disappears from the balance. The balance sheet turns out to be without a financial result, the balance sheet without profit (loss). Thus, in this case, the compilers of the chart of accounts consistently apply the theory of static balance; the owners see in the balance sheet not the profit itself, but retained earnings.

During the month, account 99 “Profits and losses” reflects extraordinary income and expenses as a result of force majeure events. They always arise for reasons beyond the control of the administration (fires, nationalization, natural disasters, accidents, etc.)

In all such cases, shortages and losses of valuables occur.

Since these shortages arise for reasons beyond the control of the administration, they are not posted through account 94 “Shortages and losses from damage to valuables,” but are immediately written off to the debit of account 99 “Profits and losses.”

Thus, a very important rule arises:

• losses caused by current work must be entered through account screen 94 “Shortages and losses from damage to valuables”;
• losses caused by emergency circumstances should be immediately written off to account 99 “Profits and losses”.

Debit 99 "Profits and losses"
Credit 41 "Goods"

If goods were accounted for at sales prices, then the following entries are made:

Debit 99 “Profits and losses” - for the cost of purchasing missing goods, Debit 42 “Trade margin” - for the amount of the markup falling on missing goods, Credit 41 “Goods” - for the entire amount of missing goods, valued at sales prices.

According to subparagraph 7 of paragraph 2 of Article 266 of the Tax Code of the Russian Federation, losses from natural disasters, fires, accidents and other emergencies, including costs associated with preventing or eliminating the consequences of natural disasters or emergencies, are considered non-operating expenses and are taken into account for tax purposes.

The instructions for using the chart of accounts state that “the construction of analytical accounting for account 99 “Profits and losses” should ensure the generation of data necessary for drawing up a profit and loss statement.”

The instructions for this account do not provide for subaccounts, therefore the accountant has the right to enter subaccounts based on the requirements of the management of the organization, including the needs of analysis, control and reporting.

We offer the following subaccount system:

• 99.1 "Profit (loss) from sales"
• 99.2 "Balance of other income and expenses"
• 99.3 "Extraordinary Income"
• 99.4 "Extraordinary expenses"
• 99.5 "Income tax"
• 99.6 "Tax sanctions".

For subaccounts 99.3 “Extraordinary income” and 99.4 “Extraordinary expenses”, analytical accounts should be opened for each type of these incomes and expenses (insurance compensation, material assets received from write-off of assets, losses from fires, losses from accidents, losses from floods, etc.). P.)

Subaccount 99.3 "Extraordinary Income" will have only a credit balance, subaccounts 99.4 "Extraordinary Expenses", 99.5 "Income Tax", 99.6 "Tax Sanctions" will only have a debit balance, and subaccounts 99.1 "Profit (loss) from sales" and 99.2 "Balance of other income and expenses" can have both a credit and debit balance.

You can also open another subaccount 99.9 “Net profit (loss)” to account 99 “Profits and losses”, to which at the end of the month the balance of the remaining subaccounts is written off. The balance of this subaccount will show:

• credit - the amount of net profit for the reporting period;
• debit - the amount of loss for the reporting period.

Accounting entries for account 99 “Profits and losses” can be presented as follows.

The procedure for accounting for income and expenses and identifying the financial results of business activities.

During a year:

1. Monthly write-off:

a) profit from sales;
b) loss on sales;

2. Monthly write-off of excess:

a) other income over other expenses;
b) other expenses over other income;

3. Calculation of income tax and tax sanctions.

4. Reflection in accounting:

a) extraordinary income;
b) extraordinary expenses;

In December of the reporting year.

5. Write-off of financial results for the reporting year:

a) retained earnings;
b) uncovered loss.

Records on subaccounts of account 99 “Profits and losses” are kept cumulatively throughout the year, which facilitates the process of drawing up a profit and loss report (form No. 2).

The relationship between the indicators of this report and the above sub-accounts is shown in Table 1.

Table 1

The relationship between the indicators of the profit and loss statement and the subaccounts of account 99 “Profits and losses”

An organization that received a loss in the previous tax period has the right to reduce the tax base for the profit tax of the current tax period by the entire amount of the loss received or by a part of this amount (carry forward the loss to the future). Carrying forward this loss is possible for ten years following the tax period in which the loss was incurred. However, in this case, the amount of the transferred loss in any reporting (tax) period cannot exceed 30% of the tax base.

A loss not carried forward to the next year may be carried forward in whole or in part to the next year out of the next nine years.

If an organization has incurred losses in more than one tax period, such losses are carried forward to the future in the order in which they were incurred.

Thus, the current account 99 “Profits and losses” differs from the previous account 80 “Profits and losses” in several fundamental points:

1. On account 99 “Profits and losses” only the difference between other income and expenses (except for extraordinary ones) is written off monthly, while on account 80 “Profits and losses” both other income and other expenses were recorded in detail.
2. The accrual of payments of income tax and tax penalties was previously reflected in the debit of account 81 “Use of profit”, and currently - in the debit of account 99 “Profits and losses”.
3. The third difference follows from the second. The balance of account 80 “Profits and losses” showed the amount of profit (loss) before tax, and the balance of account 99 “Profits and losses” showed the amount of net profit, that is, after tax.

Greetings! Today we will look at the process of “closing the month” for a real company providing services. We'll see how our accounting theory works in practice. At the same time, let’s once again learn to “look at the turns.”

According to the basics of accounting theory and our new knowledge, let's try to predict what we should see after the “closing of the month.” For clarity, let’s take as a basis the Turnover Balance Sheet (TSV) of our enterprise. Here is an example of OSV.

Is this not what we expect to see?

• Account 26 should have no balance at the end of the month.
  those. BalanceEndingDebit(SKD) = 0
• Accounts 90 and 91 must be without balance
• Some amounts should appear in the Turnovers for the period for account 99

Let's see how our turnover has changed.

I'll comment a little.

Look, account 26 at the end of the month was “closed” - it became 0. This is good. Here's a log of the wiring showing how it happened.

As we can see, expense accounts “transfer” their accumulated amounts from their Credit to Debit account to the financial result account. Remember the financial result formula? What accounts are involved?

So, Debit 90 and 91 accounts collect the expenses of our company for the current month.

Postings to account 99

Now we can calculate the financial result for each of them. Calculating the financial result is some kind of action on 90, 91 accounts. As you remember, accounts 90 and 91 after summing up the financial result should be equal to 0. And the final result of financial activity will be on account 99.

Zero balances for accounts 90 and 91 should be for the account as a whole. Sub-accounts of these accounts will have balances until December 31, pending the procedure - balance reformation. But more on that later.

This is how the situation looks in our SALT for accounts 90, 91 and 99. This situation arises after the “transfer” of expenses to account 90, BUT until closing 90, 91.

Look, I have highlighted key accounts from the entire SALT to show the intermediate stage of “closing the month”. We see that account 26 has been closed: its balances are zero. And, in our case, the amount of account 26 was displayed in the Debit of account 90.

In our example, the company has only account 26. If there were an account 44, it would also be closed and the amount from it would go to the Debit of account 90.

Thus, Debit 90 of account collects amounts from the company’s expense accounts, plus accumulates the cost of goods sold and products. Cost, as you understand, is available to manufacturing and trading companies. For us, only accumulated expenses from account 26.

Now we see that on accounts 90 and 91 different amounts were formed for Debit Turnover (DO) and Credit Turnover (CR). It turns out that for each of these accounts there is a final balance: 1705778.54 and 11374.53. Now it doesn’t make much difference for us where this balance is - in Debit or Credit. Only one thing is important to us:

Closing accounts 90 and 91 implies such actions so that the balance turns to zero. Those. we must make such entries for each account in correspondence with 99 so that our numbers - 1705778.54 and 11374.53 - go away. Those. the remainder would become zero. This is the rule for closing a total of 90 and 91 accounts - the balance on them should be zero.

And in order for the balances to become zero, we must transfer the existing differences between DO and KO (these are final balances) by posting to account 99. In other words,
— for account 90 we will “add” 1705778.54 to Debit.
— for 91 accounts we will “add” 11374.53 to the Credit

The following report shows how we “add the necessary numbers” through postings, thereby closing accounts 90 and 91. The closure of these accounts will be correct if, after that, their balances at the end of the period (month) become 0.

As you can see, the closure of accounts 90 and 91 goes through their internal subaccounts 90.9 and 91.9 in correspondence with account 99. Where 90.9 (91.9) will appear in the Debit or Credit entry depends on where there are not enough amounts so that the account at the end of the period gives 0.

Conclusion
Now we have looked at the very, very, very simple option of what “turnover” looks like and the principle of “closing the month” for companies providing services.

For trading organizations, SALT looks somewhat different. For example, we will see 41 and 44 counts. For production ones - it will be 20, 25, 40, 43, 44.

All businesses can have 76 and 73 accounts. In addition, many enterprises have 01 accounts with their own 02 and 08 auxiliary accounts.

All this diversity is not as complicated as it seems at first glance. Whatever accounting accounts you have to deal with in accounting, everything will come into “turnover”, where it will be necessary to take the amounts from all accounting accounts of Expenses and “move” them to accounts 90 and 91. Then from accounts 90 and 91, move the resulting balances to account 99. And so on every month until December. In December, there will be another operation called “balance sheet reform” at the “closing of the month.”

For the “closing the month” process, there is some more basic knowledge that affects the rules for transferring amounts to account 90. We look at all this in practical classes and learn how to solve such accounting situations from the event to the end of the month.

Addition
The article raised questions, which was expected. Accounting is not a difficult subject, but all its numbers and rules make it difficult, confusing and confusing. The first questions showed that more clarification should be given to this article. The following article answers two important questions:
— should more details be given in the SALT?
- in SALT for account 26 there are different amounts - is this an error in the article?

BP 2.0 Accounting experts, please tell me what entries should be made to close account 99, balance sheet reformation, judging by the turnover: http://s019.radikal.ru/i633/1312/27/6823dd89e531.jpg

P.S. Standard situation: a “dying” enterprise, another accountant was told to do the closing of the year, for whom the closing was always “done by the 1C program itself.” And in this case, the entire year, the closing of months was done by manual postings by another chief accountant. Accordingly, now at the end of the month - December (balance sheet reform), nothing is closed automatically. There is no point in setting it up now. The accountant only knows that everything should go to account 84. And what intermediate postings should be - it’s difficult to say. Therefore, everything smoothly flowed to me. Therefore, I ask you not to discuss the accountant, but to help with the postings.

If it’s difficult, that is, auditors or PBU

Get your work in order using the 1C configuration "IT Department Management 8"

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Accounting entries when closing a financial year for legal entities are drawn up in the following sequence:

1. Closing accounts for cost accounting (including indirect costs).
2. Closing 90 accounts, calculating company profits.
3. Balance sheet reformation: closing the main accounts for accounting for the company’s income and expenses, analyzing the financial condition of the enterprise, the efficiency of business activities, obtaining an indicator of the organization’s net profit or net loss.

Closing the year is a summary of the financial results of the organization as of December 31 of the reporting year.

Before closing, it is necessary to double-check all basic data and carry out mandatory regulatory operations:

1. Reconcile settlements with counterparties, analyze accounting documentation, restore the sequence of displaying business activities (analysis of accounts 50, 51, 60, 62, 76, etc.).
2. Calculate employee wages, taxes and insurance contributions at the end of the year (accounts 70, 68, 69).
3. Analyze the balances of goods and inventories (accounts 41, 10, 43). Conduct a warehouse inventory and adjust data if necessary.
4. Calculate depreciation on fixed assets, carry out revaluation (account.
5. Check the costs incurred (monitoring accounts 20, 29, 25, 26, 44, etc.).
6. Calculate all received income and expenses of the company (balances from accounts 90 and 91 are written off to account.

   Account 99 “Profits and losses”. Accounting for financial results. Postings

Something to keep in mind! According to the legislation of the Russian Federation, the submission of financial statements to the tax authorities is carried out before March 31 of the year following the reporting year. However, all verification activities before the end of the year should be carried out gradually throughout the 4th quarter.

After the preparatory procedures are completed, the year is closed - the balance sheet is reformed, in which the company's net profit or net loss is revealed.

Basic accounting entries for year-end closing

Sales analysis

To summarize the results of activities of organizations for ordinary activities, it is necessary to analyze the subaccounts of account 90:

• 90.1: this subaccount displays all receipts received by the company for goods sold. The balance of the subaccount is the revenue received for the period:

  Dt50.51 Kt90.01 - payment received;

  Dt62 Kt90.01 - sales revenue is reflected;

• 90.02: cost of goods sold upon sale:

  Dt90.02 Kt41 - write-off of the accounting value of goods;

  Dt90.02 Kt20 - cost of work performed;

• 90.03: VAT accrued for payment to regulatory authorities is displayed:

Every month, the subaccount data is compared, and the balance is transferred to subaccount 90.09, which displays the calculated financial results: Dt - loss; Kt - profit.

When closing the period, the balances of 90.09 go to the debit of account 99 with the profit received for ordinary types of business activities and to the credit of the account. 99 for unprofitable work.

Analysis of non-operating activities

For transactions not related to the organization’s normal business activities, the analysis is carried out on the basis of monitoring subaccounts of 91 accounts:

• 91.01: the subaccount is intended to contain information about other income of the company. These may include: exchange rate differences, surplus inventories as a result of inventory, income from borrowed funds provided to counterparties, etc.:

  Dt50.51 Kt91.01 - income received from the sale of own equipment;

  Dt73 Kt91.01 - income from loans provided in the form of interest paid;

• 91.02: information about all non-operating costs is collected here: bank commissions, shortages of goods, tax fines and penalties, etc.:

  Dt91.02 Kt66.67 - payment of interest for the use of borrowed funds;

  Dt91.02 Kt01 - reduction in the cost of equipment based on the results of revaluation.

Every month, the subaccount data is compared, and the balance is transferred to subaccount 91.09, which displays the calculated financial results: Dt - loss; Kt - profit.

When closing the period, the balances of 90.09 go to the credit of account 99 for profit received for ordinary types of business activities and to the debit of the account. 99 for unprofitable work.

Balance Reformation

After closing all main accounts in accordance with the rules of accounting and analyzing all collected information, the balance sheet is reformed - identifying the overall financial result and assigning it to the account. 84 for subsequent distribution. The reformation carried out can tell about the effectiveness of the organization’s use of labor and material resources:

1. Dt99 Kt84 - display of profit undistributed during the year;
2. Dt84 Kt99 - information about uncovered losses.

Decisions on the distribution of profits or methods of covering losses are made at the general meeting of owners after the approval of the annual financial statements.

A practical example of preparing year-end closing transactions

Limited Liability Company "Kolosok" is engaged in the sale of office chairs purchased from suppliers for 3,000 rubles (including VAT 18% - 457.62). During the year, the purchase price did not change, so the selling price remained constant: 5,000 rubles (including 18% VAT - 762.71). During the year, all goods were sold (40 units).

In addition, the company pays for bank services, which amounted to 890 rubles.

Accounting entries for completed business transactions:

• Dt41 Kt60: 101,694.20 rubles - receipt of office furniture to the warehouse for further sale;
• Dt19.03 Kt60: 18,305.80 rub. - VAT from the supplier;
• Dt51 Kt90.01: 200,000 rubles - proceeds from the sale of chairs;
• Dt91.02 Kt41: 101,694.20 rub. - write-off of the cost of chairs (the cost of Kolosok LLC includes only the purchase price of suppliers);
• Dt90.03 Kt68.02: RUB 30,508.47 - calculation of VAT payable to the tax authorities;
• Dt91.02 Kt51: 890 rub. - bank commissions.

Results for account 90 at the end of the month:

Dt: RUB 101,694.20 + 30,508.47 rub. = 132,202.67 rub.

Kt: 200,000 rub.

Final balance: 67,797.33 rubles - profit received from the sale.

Results for 91 accounts at the end of the month:

Dt91.09 Kt91.02: 890 rub. - loss.

Closing of the year:

Dt90.09 Kt99: 67,797.33 rub. - profit from ordinary types of business activities is displayed.

Dt91.09 Kt99: 890 rub. - loss from non-operating activities.

At the end of the reporting year, Kolosok LLC received profit, which will be included in undistributed profit:

Dt84 Kt99: 66,907.33 rub. - determination of the financial results of the company’s economic life at the close of the year, as of December 31.

Questions and answers on the topic

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What is balance sheet reformation?

Publication date

Balance Reformation is a procedure that is carried out annually, especially in large companies and corporations, by decision of the board of directors. Its purpose is to establish the final financial result for the past year. This is done on the basis of a comparison of indicators of revenue and profit received and data on the use of funds.

Balance Reformation is a process that can only be carried out if there is appropriate permission or order from an authorized person. As a rule, the board of directors, convened annually, approves a representative by general vote, or investors resolve issues directly at the meeting.

Balance sheet reformation: postings

So, first of all, you should familiarize yourself with the accounting entries compiled by a specialist of the enterprise. Of particular interest is account 80, called “Profits and Losses,” since it contains amounts that reflect the receipt of funds and their direction for certain needs. Accordingly, the credit side indicates a loss of financial resources, and the debit side indicates their inflow by source. It becomes clear that the company’s position at the reporting date largely depends on the balance of this account.

After it has been decided that balance reform must be carried out, the accountant, based on the wishes and requirements of the management team, distributes profits. Most of it is intended for the owners; it is divided into shares in proportion to the amounts of investor deposits. If, as a result of this operation, a surplus is formed, then it is attributed to a special account 88, which is given the self-explanatory name “Retained earnings of previous years.” This amount is then partially sent to reserve accounts to cover unexpected expenses.

Currently, not all enterprises believe that balance reform is an important and necessary element in accounting practice. However, this procedure really helps the management team to clearly show investors and owners how much money they receive from the operation of the company and where other resources are allocated. In this regard, we can conclude that reformation serves as a fairly effective mechanism that does not lose its relevance at all times.

This area also has its shortcomings and difficulties.

The procedure itself is not a super complex scheme that requires an investment of time and effort. Problems often arise due to poor accounting practices. Often the “stumbling block” is the mistakes made at the time of closing accounts and summing up results.

Closing 99 accounts

In order to avoid such significant errors, companies should pay special attention to the audit of financial documentation. High-quality and timely inspection will increase not only productivity, but also the degree of trust on the part of inspection services.

The annual financial statements must first be finalized and then the balance reform, during which the profit of the previous reporting period is written off and other accounts are closed. The undistributed balance will go towards covering losses from previous years. The economic meaning of this procedure lies in a slight improvement of the compiled balance sheet. In the future, it will be easier to work with such a document, since all the necessary postings have been made and the accounts are closed.

A legal entity has the right to independently choose a specific method for carrying out reformation, having previously noted the method in the documents. In addition, this process requires no less accuracy and literacy from a specialist, since third-party audit organizations also carefully check the formatted balance sheet.

Balance Reformation

When preparing annual financial statements, it is necessary to reform the balance sheet in order to start accounting “on a new page” in the new year. First of all, it is necessary to close accounts 90 “Sales”, 91 “Other income and expenses” and 99 “Profits and losses”. As a rule, balance sheet reformation entries are dated December 31st.

Closing account 90 "Sales"

During the year, account 90 collects data on the organization’s income and expenses for ordinary activities. Various sub-accounts are opened for account 90 “Sales”. To account for sales revenue, subaccount 90-1 “Sales Revenue” is opened. The cost of products sold (goods, works, services) is reflected in subaccount 90-2 “Cost of sales”. The amount of value added tax included in the price of products sold (goods, works, services) is taken into account in subaccount 90-3 "Value Added Tax", and the amount of excise tax included in the price of products sold is taken into account in subaccount 90-4 " Excise taxes." If an organization pays export duties, then it is additionally necessary to use subaccount 90-5 “Export duties”. Firms can use other subaccounts, for example 90-6 “Sales Tax”, 90-7 “Sales Expenses”, 90-8 “Administrative Expenses”.

To reflect the financial result from ordinary activities, subaccount 90-9 “Profit/loss from sales” is used.

Attention! At the end of each month, the accountant compares the amount of debit turnover in subaccounts 90-2 - 90-8 with credit turnover in subaccount 90-1.

Debit account 99

The resulting result is the profit or loss from sales for the month. This amount is written off at the end of the reporting month to account 99 “Profits and losses”. If a profit is made from sales, the following posting is made:

Debit 90-9 Credit 99

If a loss is incurred, an entry is made:

Debit 99 Credit 90-9

It turns out that at the end of each month there is no balance in the synthetic account 90 “Sales”. However, all subaccounts of this account have debit or credit balances, the value of which accumulates. These balances cannot be written off during the year.

On the last day of December of the reporting year, after writing off the financial result for December, all subaccounts must be closed inside account 90 “Sales”. In this case, the balances on them are transferred to subaccount 90-9:

Debit 90-9 Credit 90-2 (90-3, 90-4, 90-5, 90-6, 90-7, 90-8)

• the balance of subaccounts of account 90 is written off;

Debit 90-1 Credit 90-9

• The balance of the "Revenue" subaccount is written off.

As a result of these entries, as of January 1 of the new reporting year, the subaccounts of account 90 “Sales” do not have a balance.

Example. In the accounting records of the production enterprise Vasilek LLC at the end of 2002, there was a balance on the loan of subaccount 90-1 in the amount of 630,000 rubles. And the debit balances for account 90 “Sales” were as follows:

subaccount 90-2 - 345,000 rubles;

subaccount 90-3 - 100,000 rubles;

subaccount 90-6 - 30,000 rubles;

subaccount 90-7 - 80,000 rubles;

subaccount 90-9 - 75,000 rubles.

When reforming the balance sheet, the accountant of Vasilek LLC will make the following entries:

Debit 90-1 Credit 90-9

• 630,000 rub. — the balance of the “Revenue” subaccount is written off;

Debit 90-9 Credit 90-2

• RUB 345,000 — the balance of the “Cost of sales” subaccount is written off;

Debit 90-9 Credit 90-3

• 100,000 rub. — the balance of the “Value Added Tax” subaccount is written off;

Debit 90-9 Credit 90-6

• 30,000 rub. — the balance of the “Sales Tax” subaccount is written off;

Debit 90-9 Credit 90-7

• 80,000 rub. — the balance of the “Sales Expenses” subaccount is written off.

Closing account 91 "Other income and expenses"

Operating and non-operating income and expenses are recorded in account 91. The structure and procedure for its use are similar to the structure and procedure for use of account 90 “Sales”.

Three sub-accounts are opened for account 91:

• 91-1 "Other income";
• 91-2 "Other expenses";
• 91-9 "Balance of other income and expenses."

In addition to these, enterprises can also introduce additional sub-accounts for separate accounting of non-operating income and expenses:

• 91-3 "Non-operating income";
• 91-4 "Non-operating expenses".

Note. At the end of each month, the accountant compares the turnover in subaccounts: debit turnover in subaccounts 91-2 and 91-4 with credit turnover in subaccounts 91-1 and 91-3.

The resulting result represents the profit or loss for the month. This amount is written off at the end of the reporting month to account 99 “Profits and losses”. If a profit is made, the following entry is written:

Debit 91-9 Credit 99

• the amount of profit for the month is reflected.

And if a loss is received, then an entry is made:

Debit 99 Credit 91-9

• reflects the amount of loss received for the month.

Thus, at the end of each month, account 91 has no balance. However, the subaccounts of this account still have a debit or credit balance.

After writing off the financial result for December - December 31 - the subaccounts of account 91 must be closed. To do this, balances from other subaccounts are written off to subaccount 91-9 with the following transactions:

Debit 91-9 Credit 91-2 (91-4)

• the balance of the subaccounts “Other expenses” and “Non-operating expenses” was written off;

Debit 91-1 (91-3) Credit 91-9

• The balance of the subaccounts “Other income” and “Non-operating income” was written off.

Example. In 2002, Vasilek LLC reflected the following data on account 91:

• operating income - 40,000 rubles;
• operating expenses - 35,000 rubles;
• non-operating income - 123,000 rubles;
• non-operating expenses - 103,000 rubles;
• profit from operating and non-operating operations - 25,000 rubles.

At the end of the year, the accountant, reforming the balance sheet, made the following entries:

Debit 91-1 Credit 91-9

• 40,000 rub. — operating income written off;

Debit 91-9 Credit 91-2

• 35,000 rub. — operating expenses written off;

Debit 91-3 Credit 91-9

• 123,000 rub. — non-operating income is written off;

Debit 91-9 Credit 91-4

• 103,000 rub. — non-operating expenses are written off.

Closing account 99 "Profits and losses"

During the year, the financial result from ordinary activities, as well as from operating and non-operating income and expenses, is written off to account 99 during the year. It also collects emergency income and expenses. It also reflects the income tax debt to the budget and fines for tax violations. Thus, the account balance of 99 is equal to the current year's net profit or loss. With the final entries of December, this balance is transferred to account 84 “Retained earnings (uncovered loss).”

If the company made a profit at the end of the year, then the following entry is made in accounting:

Debit 99 Credit 84

• The net profit of the reporting year was written off.

Example. For 2002, Vasilek LLC has the following results:

• profit from ordinary activities - 75,000 rubles;
• profit from operating and non-operating operations - 25,000 rubles;
• income tax - 24,000 rubles.

The following entries were made in the accounting records:

Debit 90-9 Credit 99

• 75,000 rub. — the financial result from product sales was identified;

Debit 91-9 Credit 99

• 25,000 rub. — reflects the balance of other income and expenses;

Debit 99 Credit 68 subaccount "Calculations for income tax"

• 24,000 rub. — income tax is charged;

Debit 99 Credit 84

• 76,000 rub. (75,000 + 25,000 - 24,000) - the final financial result has been identified.

If the organization received a loss at the end of the year, the entry will be as follows:

Debit 84 Credit 99

• the loss of the reporting year is written off.

Example. Let us use the conditions of the previous examples, adding only that in 2002 the penalties assessed by the tax inspectorate of Vasilek LLC amounted to 80,000 rubles.

The following entry was made in the accounting records:

Debit 99 Credit 68 subaccount "Settlements with the budget for penalties"

• 80,000 rub. — the amount of penalties payable to the budget has been accrued.

Thus, at the end of the year, Vasilek LLC received a loss of 4,000 rubles. (80,000 - 76,000).

When reforming the balance sheet, the accountant will make the following entry:

Debit 84 Credit 99

• 4000 rub. — the loss of the reporting year is written off.

O. Kurbangaleeva

Supervisor

methodology department

accounting and auditing

LLC "Audit Alliance"

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

The first are formed on account 90 “Sales”, which we discussed 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 “Profits and losses” is used, the debit of account 99 shows losses, the credit shows profits.

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

Profit and loss

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

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