The activity of a commercial enterprise is aimed at making a profit. The success of the company in achieving this goal is measured by the financial result. The report, which presents the financial result for the reporting period, is Form 2 "Profit and Loss Statement". In general terms, the financial result is understood as the difference between the cash received from sales and the costs of the enterprise for the production of goods or services. Consider the financial result and the postings that describe it in more detail.
Entries to reflect revenue recognition
In accounting, to reflect the entries describing the formation of the financial result for the period, account 90 is used with sub-accounts for separate reflection:
- revenue;
- cost of goods sold or services;
- excises;
- profit or loss.
This account reflects the proceeds received from the main activities of the company (the types of activities classified as ordinary are prescribed in the charter of the organization), the proceeds from other activities are reflected in account 91 “Other income and expenses”. So, the proceeds from the sale of a fixed asset will not be reflected in account 90, but will fall on account 91.
D 62 K 90.1 - this entry reflects the recognition of proceeds from the sale of goods and the accrual of receivables.
In accounting, the accrual method is used - i.e. revenue is recognized when the goods are transferred to the customer, not when cash is received for the transaction.
Postings to reflect cost write-offs
Simultaneously with the recognition of revenue, it is necessary to recognize the corresponding expenses - the cost of the product or service that was sold to the buyer, i.e., to recognize the costs incurred for the production of the product or service in this reporting period:
D 90.2 K 41, 43, 45, 20 - this entry reflects the write-off of the cost of goods or services sold.
Postings to reflect the accrued VAT
The sales price includes VAT, which must be allocated as a separate amount in the following entry:
D 90.3 K 68 - this entry reflects the accrual of VAT payable on goods or services sold.
Closing the period and reflecting the financial result
Revenue is credited to account 90, and all costs related to the cost, as well as VAT and excises, are debited. If at the end of the period the balance of account 90 is in credit (i.e., revenue exceeded costs), then the company recognizes profit in this reporting period. If the balance of the account is debit, then the financial result of the company's activities for the reporting period is a loss.
The above sub-accounts are closed to sub-account 90.9 “Profit (loss) from sales”:
D 90.1 K 90.9 - closing of sub-account 90.1 based on the results of the reporting year.
D 90.9 K 90.2, 90.3, 90.4 - closure of sub-accounts 90.2, 90.3, 90.4 based on the results of the reporting year.
D 90.9 K 99 - reflects the accrual of profit from the sale of goods or services.
D 99 K 90.9 - reflects the loss from activities for the period.
Similarly, account 91 is closed to account 99.
Thus, at the end of each month, account 90 has a zero balance, while its sub-accounts have balances during the year. These balances at the end of the month are the opening balances at the beginning of the next month, thus the balance of sub-accounts grows cumulatively, while the total result for account 90 is zero.
On the last day of the reporting period, account 99 is closed by account 84, i.e., account 99 is transferred to the next period with a zero balance.
Organizations earn the bulk of their profits from the sale of products and services. Profit from the sale of products (services) is defined as the difference between the proceeds from the sale of products (services) at current prices and other deductions provided for by the legislation of the Russian Federation, and the costs of its production and sale.
The financial result from the sale of products (services) is determined by account 90 "Sales". This account is designed to summarize information on income and expenses associated with the ordinary activities of the organization, as well as to determine the financial result for them. This account reflects, in particular, revenue and cost of:
* for finished products, semi-finished products from customer-supplied raw materials.
Receipts recognized as proceeds from the sale of goods, products, works, services are reflected in account 90 "Sales".
The following sub-accounts can be opened for account 90 “Sales”:
90-1 "Revenue";
90-2 "Cost of sales";
90-8 "Costs of sale"
90-9 "Profit (loss) from sales".
In accordance with the Chart of Accounts, the amount of proceeds from the sale of goods, products, performance of work, provision of services, etc. is reflected in accounting at the time of its recognition.
The amount of proceeds from the sale of products, the provision of services, etc. is reflected in the credit of subaccount 90-1 “Revenue” and the debit of account 62 “Settlements with buyers and customers”.
The organization has the right to reflect net revenue on subaccount 1 "Revenue" to account 90 "Sales".
The amount of the cost of sold products, services, related to the recognized amount of revenue, is debited from the credit of the sales expense accounts to the debit of account 90 “Sales”.
The write-off of the cost of sold products and services is reflected:
Kt: 20 "Main production", 43 "Finished products".
For the purposes of forming the organization's financial result of activities from ordinary activities, the cost of goods sold, services is determined, which is formed on the basis of expenses for ordinary activities recognized both in the reporting year and in previous reporting periods, and passing expenses related to income generation in subsequent reporting periods, subject to adjustments depending on the characteristics of production and provision.
The write-off of administrative and commercial expenses fully accounted for in the reporting period is reflected if they are recognized as expenses for ordinary activities:
Dt 90 "Sales", sub-account "Cost of sales"
On account 90 “Sales”, contractors reflect the results from the sale or work performed by them under contracts. The credit of account 90 "Sales" reflects the cost of the specified works, determined according to the documents that serve as the basis for settlements between customers and contractors (subcontractors) in accordance with the contract in correspondence with account 62 "Settlements with buyers and customers", and the debit of this account - the actual the cost of the delivered works in correspondence with the account 20 "Main production".
Organizations whose subject of activity is the provision of services, as a rule, do not have work in progress at the end of the reporting period. In this regard, the amount of costs for the provision of services, determined in the accounting accounts, is debited in full to the debit of account 90 “Sales”, sub-account “Cost of sales” on a monthly basis.
Sub-account 90-9 "Profit (loss) from sales" is designed to identify the financial result from sales for the reporting month.
Account 90 "Sales" is used not only to calculate the result of the sale of products and services for the reporting month, but also to generate accumulative data for the income statement.
Entries on sub-accounts 90-1, 90-2 are made accumulatively during the reporting year. On a monthly basis, by comparing the total debit turnover on subaccounts 90-2 and the credit turnover on subaccount 90-1, the financial result from sales for the reporting month is determined. The revealed profit or loss is written off monthly by final entries from subaccount 90-9 to account 99 “Profit and Loss”. Thus, the synthetic account 90 "Sales" is closed monthly, and has no balance on the reporting date.
At the end of the reporting year, all sub-accounts opened to account 90 “Sales” (except for sub-account 90-9) are closed by internal entries to sub-account 90-9 “Profit (loss) from sales”.
Analytical accounting on account 90 “Sales” is carried out for each type of product sold and services rendered, and, if necessary, in other areas (by sales regions, etc.).
The organization is determined by the proceeds from the sale of products for tax purposes either at the time of payment for the shipped products and services rendered, or at the time of shipment of the products and presentation of payment documents to the buyer (customer).
In accounting, products are considered sold at the time of their shipment. That is why, with both methods of selling products for tax purposes, finished products shipped or presented to buyers at sales prices are reflected in the debit of account 62 “Settlements with buyers and customers” and the credit of account 90 “Sales”.
At the same time, the cost of the products shipped or presented to the buyer is written off to the debit of account 90 “Sales” from the credit of account 43 “Finished products”.
The final financial result of the organization's activities is reflected in account 99 "Profit and Loss". Profits are taken into account on the credit of this account, losses on the debit.
The financial result reflects the change in equity for a certain period as a result of the production and economic activities of the organization.
Account 99 "Profit and Loss" is a system provided by the chart of accounts of synthetic positions. This system includes an income and expense account:
- 90 "Sales"
- 91 "Other income and expenses"
- 99 "Profit and Loss"
Within the framework of this system, systematic monitoring of the process of formation of the financial result of the organization's activities during the reporting period is carried out. This system makes it possible to draw up a profit and loss statement.
The final financial result is made up of the financial result from the sale of goods, fixed assets and other property of trade enterprises and income from non-realized operations, reduced by the amount of expenses on these operations.
Accounts 90 "Sales" and 91 "Other income and expenses" are designed to summarize and accumulate information about the income and expenses of the organization.
On account 90, the financial result from economic activity, which is the main goal of the organization, is formed. It is defined as the difference between sales revenue and cost of sales.
The peculiarity of determining the financial result from sales in trade organizations is the preliminary calculation of gross income, which is the sum of the sales margin, determined as the difference between the purchase and selling prices of the goods sold.
To determine the financial result of a trade organization from sales, the amount of costs related to the goods sold and written off from the credit of account 44 “Sales expenses” to the debit of account 90 “Sales” is deducted from the amount of its gross income.
According to the current rules, the volume of sales in accounting and reporting is determined at the time of release or shipment of products, goods, works and services, or as payment for products.
If the accounting policy of an enterprise for taxation purposes determines the calculation of sales volume by the "cash" method, oriented to the amount of proceeds received on the accounts of funds, then the reporting financial result of the enterprise from sales for tax purposes is adjusted to the level determined by the paid sales volume. At the same time, according to accounting data, profit is recalculated from the accrual method to the cash method by adjusting, on the one hand, the volume of proceeds from the sale and, on the other hand, the cost of goods sold.
Other income and expenses included in the overall financial result of the organization are reflected separately from the financial result of sales on account 91 “Other income and expenses” by “expanded” reflection of individual items during the reporting period.
Account 91/1 reflects operating and non-operating income.
Operating income includes:
- 1. Income associated with the provision for a fee for temporary use of the organization's assets.
- 3. Income associated with participation in the authorized capital of other organizations (including interest and other income from securities).
- 4. Interest received for the provision of the organization's funds for use by the bank of funds held on the organization's account with this bank.
Non-operating income includes (Regulations on accounting "Income of the organization" RAS 9/99 dated 06.05.1999 No. 344 Chapter 3 "Other income":
- 1. Fines, penalties, forfeits for violation of the terms of the contract.
- 2. Receipts in compensation for losses caused to the organization.
- 3. Profit of previous years, revealed in the reporting year.
- 4. Amounts of accounts payable and depositor's debts for which the limitation period has expired.
Extraordinary income includes (Regulations on accounting "Income of the organization" PBU 9/99 dated 06.05.1999 No. 34N, chapter 3 "Other income":
- 1. Income arising as a consequence of emergency circumstances of economic activity (natural disaster, accident).
- 2. Assets received free of charge, but accepted for accounting at market value.
- 3. Insurance compensation, the cost of material assets remaining from the write-off of assets unsuitable for restoration and use.
Account 91/2 reflects operating expenses and non-operating expenses.
Operating expenses include (Regulations on accounting "Expenses of the organization" RAS 10/99 dated 06.05.1999 No. 33N, Chapter 3 "Other expenses"):
- 1. Expenses associated with the provision for a fee for temporary use of the organization's assets.
- 2. Expenses associated with participation in the authorized capital of other organizations.
- 3. Expenses related to payment for services rendered by credit institutions.
Non-operating expenses include (Regulations on accounting “Expenses of the organization PBU 10/99 dated 06.05.1999 No. 33N ch. 3 “Other expenses”):
- 1. Penalties, penalties for violation of the terms of contracts
- 2. Compensation for losses caused by the organization
- 3. Asset valuation amounts
Extraordinary expenses include (Regulations on accounting “Expenses of the organization PBU 10/99 dated 06.05.1999 No. 33N ch. 3 “Other expenses”):
- 1. Expenses arising as the consequences of emergency situations (natural disaster, fire).
- 2. Fines, penalties for breach of contracts, compensation awarded by the court or recognized.
At the end of each month, the balance of income and expenses from accounts 90 “Sales” and 91 “Other expenses” is transferred to account 99 “Profit and losses”.
On the account 99 reflect income and expenses. Associated with extraordinary circumstances (extraordinary income and expenses ", as well as the amount of income tax payments. On account 99, the net profit of the organization is declared, which is the basis for declaring dividends and other distribution of profits. This value is transferred by the closing entries of December to account 84 "Retained earnings "/uncovered loss".
Formation of profit (loss) is carried out according to the following algorithm:
Income from ordinary activities - expenses from ordinary activities ± Balance of non-operating income and expenses ± Balance of operating income and expenses ± Balance of extraordinary income and expenses - Income tax ± Income tax recalculation payments - Sanctions for violation of tax laws = Net profit (loss) for the reporting period.
At the end of each month, the organization reveals profit (loss):
reflected profit from sales D 90/9 K 99
reflected loss from sales D 99 K 90/9
Profit (loss) from other activities is recognized using the following entries:
reflected profit from other activities of the organization (final turnover of the reporting month) D 919 K 99
reflected the loss from other activities of the organization (the final turnover of the reporting month) D 99 K 91/9
The formation of the financial result for Vanil LLC takes place on account 99 “Profit and Loss”.
Preliminary data is collected on accounts 90 “Sales” and 91 “Other income and expenses”.
The proceeds from the sale of goods for 2007 consists of retail turnover and income from the lease of trade enterprises - 50,400 rubles.
The cost of goods sold in 2007 amounted to 26,920 rubles.
Gross profit for 2007 amounted to 23,480 rubles.
Non-operating expenses of trade on account 91 “Other income and expenses” included material assistance, rental of vehicles from individuals, newspaper subscriptions for a total of 39 thousand rubles.
Administrative expenses for leased property and FRP from rent up to 4 percent of revenue totaled 1,515 thousand rubles.
Expenses for the sale of products amounted to 611 thousand rubles.
The tax under the simplified taxation system is 166 thousand rubles.
To identify the financial result, accounts 90, 91 are closed.
The formation of profit (loss) in the trade industry occurs in the following order:
Income from ordinary activities 2348 thousand rubles
Expenses for ordinary activities 2126 thousand rubles
Non-operating expenses 39 thousand rubles = Total profit before tax 183 thousand rubles
Current tax under the simplified taxation system 166 thousand rubles = Net profit for the reporting period amounted to 17 thousand rubles
This financial result is to be sent to account 99 (Profit and loss), both during the year and on the reporting date.
The net profit of the organization is subject to crediting to account 84 "Retained earnings"
D 99 K 84 17 thousand rubles
It is possible to achieve large incomes from ordinary activities by increasing the sale of goods through progressive forms of trade; sale on credit, remote trade in public places, holding exhibitions and sales.
The reduction of expenses for ordinary activities can be facilitated by the reduction of expenses for this property for rent and the avoidance of taxes and payments due to the fault of the organization.
The net profit of the organization can be used to increase the salaries of employees, the purchase of computer equipment.
PRACTICAL WORK No. 49
Lesson objectives - educational:
Make a lecture outline
Accounting for the financial result from the sale of products (works, services) is kept on account 90 "Sales". The account is active-passive, not balance. On account 90, both for debit and credit, the same sales volume is reflected, but in different estimates: for credit - at sale prices (free, contractual, etc.), including VAT and excises, for debit - at full cost, including sales costs, VAT, excises and other obligatory payments.
Operations on account 90 are reflected when the proceeds from the sale are recognized in the accounting records, at the time of the transfer of ownership of the products, which is established in the contract and enshrined in the accounting policy of the organization.
Rice. 1 Scheme for determining the financial result
The Chart of Accounts provides for the possibility of keeping records on account 90 “Sales” using special sub-accounts:
90-1 "Revenue" - to account for the receipt of assets recognized as revenue;
90-2 "Cost of sales" - to account for the cost of sales;
· 90-3 "Value Added Tax" - to account for the amounts of VAT due to be received from the buyer (customer);
90-4 "Excises" - to account for the amounts of excises included in the price of products sold
90-5 "Export duties" - to account for the amount of export duties;
90-9 "Profit / loss from sales" to identify the financial result (profit and loss) from sales for the reporting month.
When using these sub-accounts, accounting operations for the formation of income and expenses from ordinary activities will be carried out as follows:
Entries on sub-accounts 90-1 “Revenue”, 90-2 “Cost of sales”, 90-3 “Value added tax”, 90-4 “Excise taxes”, 90-5 “Export duties” are kept during the year;
The financial result from sales for the reporting month is determined by comparing the total debit turnover on sub-accounts 90-2 "Cost of sales", 90-3 "Value added tax", 90-4 "Excise taxes", 90-5 "Export duties" and credit turnover - on subaccount 90-1 "Revenue";
On a monthly basis, the final turnover of the financial result from sales is debited from sub-account 90-9 "Profit / loss from sales" to the account 99 "Profit and Loss";
Synthetic account 90 "Sales" has no balance on the reporting date;
At the end of the reporting year, all sub-accounts opened to account 90 “Sales” (except for sub-account 90-9 “Sales profit / loss”) are closed by internal entries to account 90-9 “Sales profit / loss”.
Correspondence of accounts for accounting for income and expenses from ordinary activities (using separate sub-accounts):
Dr. c. 62 Set of sc. 90-1 - reflection of sales proceeds;
Dt sch, 90-3 Kt sch. 68 - reflection of VAT on revenue;
Dr. c. 90-2 Set of sc. 20, 26, 43, 44, etc. - reflection of expenses included in the cost of sale;
Dr. c. 90-9 Set of sc. 99 - monthly assignment of the amount of profit from sales revealed at the end of the reporting month from a separate sub-account to the profit and loss account;
Dr. c. 99 Set of accounts 90-9 - monthly allocation at the end of the month of the amount of sales loss identified at the end of the reporting month from a separate sub-account to the profit and loss account.
In general, account 90 has no balance at the end of each month; however, all sub-accounts during the year can have a balance, and their value will increase starting from January of each year.
Subaccount 90-1 during the year can only have a credit balance, and subaccounts 90-2.90-3.90-4 90-5 can only have a debit balance. Subaccount 90-9 can have both a debit and a credit balance.
PRACTICAL WORK No. 50
Calculation of the result from the sale of products
Lesson objectives - educational: mastering the procedure for calculating the result from the sale of products
Task 1. Record in the journal of registration of business transactions the correspondence of accounts for the above operations.
Initial data. Business transactions for March 2006
Journal of registration of business transactions for March 2006.
| No. p / p | Document and operation content | Amount, rub. | debit | credit |
| Delivery notes Handed over from production to the warehouse finished products | 1 350 000 | |||
| Invoice and payment request-order Finished products shipped to the buyer at selling prices with VAT | 1 510 400 | |||
| Invoice VAT accrued on sold products, payable to the budget | 230 400 ? | |||
| Statement of shipment and sale Actual cost of shipped products written off | 1 016 000 | |||
| Invoice and payment request-order of the motor transport organization Accepted invoice for the transportation of products from the warehouse of the enterprise to the station of departure: the cost of transportation VAT (18%) | 10 000 1 800? | |||
| Material distribution sheet Consumption of materials for product packaging | 12 000 | |||
| Wage distribution sheet Accrued wages for workers engaged in packaging products | 8 000 | |||
| Wage distribution sheet Deductions for social needs made from wages for product packaging (30%) | 2 400 ? | |||
| An extract from the settlement account Credited to the account for the proceeds for shipped and sold products (see op. 2.) | 1 510 400 ? | |||
| Calculation of accounting Sales expenses are written off on the cost of products paid by buyers | 20 400 ? | |||
| Accounting reference Identifies and writes off the financial result from the sale of products | 231 600 ? |
Task 2.
Required:
1. Indicate the correspondence of accounts for operations.
2. Determine the amount of the financial result of the sale of products.
| op. no. | Content of business transactions | Amount in rubles |
| 1. 2. 3. 4. 5. 6. | Payments of buyers for the sold Products are credited to the current account D 51 K 62 The debt of buyers for the products shipped to them at market value is reflected D 62 K 90 The debt to the budget for VAT received on the sale of products is reflected. Determine the amount by highlighting from the payment amount D 90 K 68 The actual production cost of the finished product is written off to the full cost of goods sold D 90 K 43 The costs of selling the products are written off to the full cost of goods sold D 90 K 44 Determine and write off the financial result from the sale of the Products D 90 K 99 | 920,000 920,000 140,339 to be determined 524,000 42,800 212,861 to be determined |
In order to identify whether the organization has a profit or a loss has been received at the end of the reporting period, it is necessary to determine the financial result. In the article, we will describe in detail what the concept of “financial result” means, what is the methodology for determining it, and what entries it is reflected in accounting.
The concept of financial result
The financial result is understood as an indicator that characterizes the results of the enterprise, namely, profit or loss. The period for determining the financial result is a calendar month.
The value of the financial result is influenced by such indicators as the value, income from non-operating transactions, as well as expenses incurred in connection with the manufacture, acquisition and sale of products.
The financial result is defined as the difference between the profit from sold products (goods, services, works) and the costs of its production (purchase). Also, the indicator of the financial result is revealed minus taxes and fees that are payable to the budget, as well as the costs associated with the sale (delivery of goods to the retail network, salaries to sellers, storage costs, etc.).
Financial result in accounting
To identify the value of the financial result in accounting, data is analyzed:
- financial result for the main activities;
- indicators of other income and expenses;
- accruals on taxes for payment to the budget and excise duties.
The determination of the financial result is carried out by closing the reporting period (month). To do this, the balances of accounts 90 and 91 are rolled up. With this operation, the accountant reveals the overall result from the main activities (account "Sales") and from other operations (account "Other income and expenses").
The procedure for reflecting the financial result includes the following steps:
- Write-off of expenses. All costs for the production (acquisition) and sale of goods (works, services) are written off against sales.
- Analysis of balances on accounts 90 and 91.
- Crediting profit on Kt 99 or crediting loss on Dt 99.
The indicators of the financial result are cumulative in nature, its value for the reporting period is summed up with the values for the previous months (quarters).
An example of reflecting the financial result in accounting
According to the results of February 2016, Flagman LLC sold products (ceramic dishes) in the amount of 951,000 rubles, VAT 145,068 rubles. at a cost of 674,000 rubles. The cost of selling dishes amounted to 34,300 rubles. As of 02/02/2016, the proceeds in payment amounted to 911,000 rubles, VAT 138,966 rubles.
Suppose the transfer of ownership of the goods passes to the buyer at the time of shipment.
The accountant of Flagman LLC will reflect the transactions in the accounting in the following way:
| Dt | CT | Description | Sum | Document |
| 62 | 90 | Reflected revenue from the sale of ceramic dishes | RUB 951,000 | Packing list |
| 90 | 68 VAT | Added VAT amount | RUB 145,068 | Packing list |
| 90 | RUB 674,000 | Costing | ||
| 90 | 44 | 34 300 rub. | Expense Report | |
| 62 | RUB 911,000 | Bank statement | ||
| 90 | 99 | The financial result for February 2016 (profit) of 951,000 rubles was taken into account. — 145,068 rubles. - 674,000 rubles. — 34,300 rubles. | RUB 97,632 |
Let's change the conditions: the buyer receives the ownership of the goods at the time of payment. Let's also assume that sales expenses are subject to write-off against the cost of goods that were sold in February 2016.
Under the changed conditions, the accounting for the operation to reflect the financial result of Flagman LLC will look like this:
| Dt | CT | Description | Sum | Document |
| 45 | Reflected the cost of ceramic dishes | RUB 674,000 | Costing | |
| 62 | Crediting of received payment for the sale of ceramic utensils | RUB 911,000 | Bank statement | |
| 62 | 90 | Recognized sales revenue | RUB 911,000 | |
| 90 | 68 VAT | Added VAT amount | RUB 138,966 | Bank statement, bill of lading |
| 90 | 45 | The cost price of ceramic dishes is reflected, the amount from the sale of which was recognized in the accounting (674,000 rubles * 911,000 rubles / 951,000 rubles) | RUB 645,650 | Costing, bank statement, delivery note |
| 90 | 44 | Reflected the costs of implementation | 34 300 rub. | Expense Report |
| 90 | 99 | The financial result for February 2016 (profit) of 911,000 rubles was taken into account. — 138,966 rubles. — 645,650 rubles. — 34,300 rubles. | RUB 92,084 | Turnover balance sheet, income statement |