How undistributed profits are calculated in the balance sheet

Undistributed Profit Calculation Formula:

Net operating income = operating income - operating expenses - depreciation of productive fixed assets - production tax + net income from rental housing, net income from leasing other assets and net rent converted from self-owned housing, etc. Net property income does not include premium income from the transfer of ownership of assets.

Real growth rate of per capita disposable income = (per capita disposable income in the reporting period per capita disposable income in the base period) Household consumption** index -100%.

Monetary funds + inventories + net fixed assets, i.e. cash + bank deposits + raw materials + inventory goods + production costs + fixed assets - accumulated depreciation.

The number of undistributed profits in the balance sheet of the current year = the sum of the number of "net profits" in the column "Accumulated for the year" in the profit and loss statement for December of each previous year - 10% statutory surplus reserve fund + 5% of the Community Chest + x% of the reserve fund that can be withdrawn according to the general meeting of shareholders (based on the provisions of the articles of association + profits distributed to shareholders].

Special note: This is a more complex problem, if the net profit of the year is negative, no provision will be made; If it's a positive number. It may also include the issue of using profits from previous years to cover losses.

Undistributed Profit = Current Year's Profit + Profit Distribution.

In terms of accounting treatment, undistributed profits are accounted for through the "profit distribution" account, which should be accounted for in detail by "withdrawing statutory surplus reserve", "withdrawing arbitrary surplus reserve", "cash dividends or profits payable", "dividends converted into share capital", "making up losses from surplus reserves" and "undistributed profits".

Undistributed profits have two meanings: one is the profit that is set aside for disposal in subsequent years; The second is the profit for which a specific purpose is not specified. Relative to the rest of the owner's equity, the business has greater autonomy over the use of undistributed profits.

1. The undistributed profit of the current year is obtained based on the profit of the current year and is carried forward from the profit of the current year.

2. The balance of the current year's profit is on the credit side when making a profit, and it needs to be carried forward to the undistributed profit at the end of the year, and there is no balance of the current year's profit after the carryover.

Borrow: Profit for the current year.

Credit: Undistributed Profit - Undistributed Profit.

If it is a loss, then make the opposite accounting entry).

3. If you are referring to the profit distribution at the end of the period in the balance sheet, the formula is:

Undistributed profit at the beginning of the period + net profit for the period - various surplus reserves withdrawn - profit ceded + undistributed profit adjusted for profit or loss of previous years.

Undistributed profit at the end of the period = undistributed profit at the beginning of the period + net profit for the period - (withdrawal of surplus reserve + distribution to shareholders + others) - (surplus reserve to make up for loss + others).

Among them, "withdrawal of surplus reserve + distribution to shareholders + others" is the distribution of profits this year, and "surplus reserve to make up for losses + others" is the internal carry-over of owners' equity.

In terms of accounting treatment, undistributed profits are accounted for through the "profit distribution" account, which should be accounted for separately "withdrawing statutory surplus reserve", "withdrawing arbitrary surplus reserve", "cash dividends or profits payable", "dividends converted to share capital", "making up losses from surplus reserves" and "undistributed profits".

After paying the income tax, the total profit realized by the enterprise in the current year can be distributed in the following order:

1. Make up for the losses of previous years; (There is no need to make special accounting entries to cover losses with profits).

2. Withdraw the statutory surplus reserve and public welfare fund; (The surplus reserve is used to cover losses or increase capital; The Community Chest can only be used for the collective welfare of employees).

3. Withdraw any surplus reserve;

4. Distribution of dividends on preferred shares;

5. Distribution of dividends on common shares.

The last thing that remains is the year-end undistributed profit.

When accounting for undistributed profits, the following issues should be noted:

1) The accounting of undistributed profits is carried out through the account "Profit distribution - undistributed profits".

2) The accounting of undistributed profits is generally carried out at the end of the year, and at the end of the year, the net profit realized in the current year is carried forward to the credit of the "Profit Distribution - Undistributed Profits" account. At the same time, the amount of the current year's profit distribution is carried forward to the debit side of the "Profit distribution - undistributed profit" account.

3) The credit closing balance of the "Profit Distribution - Undistributed Profit" account carried forward at the end of the year reflects the accumulated undistributed profit, and the debit closing balance reflects the accumulated uncovered loss.

The undistributed profit in the balance sheet at the beginning of the year plus the net profit in the income statement or income statement is the ending number of the undistributed profit in the balance sheet

Undistributed profit in the balance sheet = current year's profit balance + previous year's undistributed profit.

The beginning of the year of undistributed profit on the balance sheet is the year-end balance of "Profit Distribution - Undistributed Profit" of the previous year.

The number at the end of the period is the closing balance as of the current month = the profit distribution at the beginning of the year - the balance of undistributed profits + the balance of the current year's profits.

The data of 100,000 + 5,000 is your total profit.

If we put this total profit - income tax data = net profit.

Sales profit of the month = 800 * (80-45) (1-17%) = 23,240 yuan.

Financial expenses = 180 yuan.

The pre-tax profit of the month = 23240-180 = 23060 yuan.

The number of undistributed profits at the end of the period = the number of undistributed profits at the beginning of the period + the profit before tax of the current month * (1 - income tax rate) = 43

1) The "Profit for the Year" account should be carried forward to "Undistributed Profit" at the end of the year, and this entry is generally made in December.

2) Since the "current year's profit" will be closed after the carryover, the balance is zero, so there is no need to add it.

In general, I fill in the undistributed profit according to the balance of the current year's profit + the balance of the profit distribution in the general ledger, and this figure is definitely correct.

Some people say that undistributed profit = the beginning of the year of undistributed profit + the cumulative number of net profit in the income statement (excluding surplus reserve and other gains and losses) If there is no profit distribution in the current year and the profit and loss adjustment of previous years, it is also correct; Not comprehensive enough.

If there is no profit distribution for the current year and no profit and loss adjustment for previous years, which is also true, why is it different from the two calculated figures? Could it be that after several accounts have been done, the cumulative net profit in the income statement is wrong? Will 1 and 2 not be equal?

Probably not. You can see this in your account.

If the results of 1 and 2 are different, it means that there was an adjustment to the economic events of the previous year or that the profit distribution was made in the current year.

Balance sheetThe calculation of undistributed profit is as follows:

Undistributed Profit at the End of the Year Balance Sheet Profit for the current year.

The balance of undistributed profits (there is no balance of the current year's profit at the end of the year, and the balance at the end of the year has been transferred to the profit distribution undistributed profit, and the balance at the end of the year is the account balance of the undistributed profit).

What is clearer is the balance of undistributed profits at the end of the year in the balance sheet and the balance sheet of undistributed profits at the beginning of the year in the income statement.

The cumulative number of net profits.

Because undistributed profit refers to the net profit realized by the enterprise after making up for the loss, the surplus reserve is withdrawn.

and the profits that remain in the enterprise after the distribution of profits to investors, it has two meanings, one is the profits that are left for disposal in the following years; The second is the profit for which a specific purpose is not specified. Relative to owner's equity.

For the rest of the business, there is greater autonomy over the use of undistributed profits.

Introduction

Undistributed profit is the undistributed profit of the enterprise, which can continue to be distributed in subsequent years, and is a part of the owner's equity before the distribution; Undistributed profit can be positive or negative, and if it is negative, it reflects the accumulated losses over the years.

Undistributed profit is the undistributed profit of the enterprise, which can continue to be distributed in the following years, before the distribution, it is a component of the owner's equity, from the quantitative point of view, the undistributed profit is the balance of the undistributed profit at the beginning of the period plus the net profit realized in the current period, minus the various surplus reserves withdrawn and the profits ceded.

The balance of undistributed profits at the end of the year in the balance sheet = the balance of the current year's profit + the balance of undistributed profits (there is no balance of the current year's profit at the end of the year, and the balance at the end of the year has been transferred to the profit distribution - undistributed profit, and the balance at the end of the year is the account balance of the undistributed profit).

The balance of undistributed profits in the balance sheet = the balance of undistributed profits at the beginning of the period + the total profit of the year; The chain is in the red.

If it is positive, it is an undistributed profit, and if it is negative, it means that it is an uncovered loss;

The undistributed profit at the beginning of the period is the balance at the end of the previous year, and the profit of the current year refers to the cumulative number of the current year, such as October, which is the cumulative number of 1-10;

In terms of accounting treatment, undistributed profits are accounted for through the "profit distribution" account, which should be accounted for in detail by "withdrawing statutory surplus reserves", "withdrawing arbitrary surplus reserves", "cash dividends or profits payable at a loss", "dividends converted into share capital", "making up losses from surplus reserves" and "undistributed profits".

The undistributed profit of the balance sheet, the beginning of the bridge = the undistributed profit under the profit distribution account of the previous year, the number at the end of the period = the undistributed profit under the profit distribution account of the previous year + the balance of the profit account of the current year (the net profit in the income statement), at the end of the year, the net profit realized in the current year after the income and expenditure of the current year are offset shall be transferred to the "profit distribution" account and debited"Profit for the year"account, which is credited to the Profit Distribution ——— Undistributed Profit account; If it is a net loss, it will be rolled over as an accounting entry for the opposite model. After carryover"Profit for the year"There should be no balance on the account.

Undistributed profit in the balance sheet = undistributed profit at the end of the previous year + profit of the current year - surplus reserve for the current period - dividend for the current period + surplus reserve for the current period to make up for the loss.

Extended reading: Undistributed profit at the end of the period = undistributed profit at the beginning of the period + net profit for the period - (withdrawal of surplus reserve + distribution to shareholders + others) + (surplus reserve to make up for losses + others).

Among them, "withdrawal of surplus reserve + distribution to shareholders + others" is the distribution of profits this year, and "surplus reserve to make up for losses + others" is the internal carry-over of owners' equity.

Undistributed Profit Calculation Formula:

Net operating income = operating income - operating expenses - depreciation of productive fixed assets - production tax + net income from rental housing, net income from leasing other assets and net rent converted from self-owned housing, etc. Net property income does not include premium income from the transfer of ownership of assets.

Real growth rate of per capita disposable income = (per capita disposable income in the reporting period per capita disposable income in the base period) Household consumption** index -100%.

Monetary funds + inventories + net fixed assets, i.e. cash + bank deposits + raw materials + inventory goods + production costs + fixed assets - accumulated depreciation.

Undistributed profit at the end of the balance sheet = undistributed profit at the beginning of the period + net profit for the period - (withdrawal of surplus reserve + distribution to shareholders + others) - (surplus reserve to cover losses + others). Undistributed profit refers to the profit reserved or to be distributed in the next year, and it is also the profit retained by the enterprise to distribute to investors after making up for the loss and withdrawing the surplus reserve. It can be used to continue distributions in subsequent years, and is part of owners' equity before distribution, and quantitatively undistributed profit is the opening undistributed profit plus the net profit realized in the current period minus the various remaining reserves after the profit is withdrawn and shared.

Compared with the rest of the owner's equity, the enterprise has greater autonomy over the use of undistributed profits and is less restricted by national laws and regulations.

How to verify accounting errors in undistributed profits?

Clause. 1. Review the soundness and effectiveness of the internal control system for undistributed profits. The auditor may prepare a questionnaire on the internal control system for undistributed profits and review the content and implementation of the system.

Clause. 2. Analyze and compare the changes in the balance of the undistributed profit account. The auditor should compare the actual balance of the undistributed profit account for the current period with the previous period, compare and analyze whether there is any abnormal situation, and further check the disadvantages.

The auditor should also analyse the changes in the account of undistributed profits for the current year.

Clause. 3. Check the authenticity and legitimacy of undistributed profits. Undistributed profit is the result of adjustments to realized profit and distributed profit at the end of the year.

The undistributed profit in the balance sheet is calculated as the accumulated undistributed profit of the previous year plus the net profit of the current year, minus the distributed profit of the current year.

For Hu Ze, the accumulated undistributed profit in previous years may be positive or negative. It depends on the actual operation of the enterprise. If the business is well run, it can naturally achieve profitability; If the business is not run well, it will naturally lose money.

The net profit in the income statement is the profit realized by the enterprise in the current period. Of course, the net profit of a business can be positive or negative! Generally speaking, the net profit in a company's income statement comes from the total profit.

Article 5 of the Accounting Law of the People's Republic of China.

Accounting institutions and accounting personnel shall conduct accounting in accordance with the provisions of this Law and exercise accounting supervision.

No unit or individual may instruct, instigate, or compel accounting institutions or accountants to forge or alter accounting vouchers, accounting books, and other accounting materials or provide false financial accounting reports in any way.

No unit or individual may retaliate against accounting personnel who perform their duties in accordance with the law and resist acts in violation of the provisions of this Law.

Article 6 Accountants who conscientiously implement this Law, are loyal to their duties, adhere to principles, and make remarkable achievements shall be given spiritual or material rewards.