What should I do if the profit balance of this year is carried forward to the profit distribution en

Profit for the year. On the credit side, the net profit realized for the period is described.

The profit for the year is carried forward on the credit side and the accounting entry for profit distribution is:

Borrow: Profit for the current year.

Credit: Profit Distribution – Undistributed Profits.

Profit Account for the Year:

1. Nature of account: owner's equity.

2. Account purpose: to calculate the net profit or net loss realized by the enterprise in the current period.

3. Account structure: the debit is reduced, and the amount of various expenses, costs and taxes transferred from the relevant account is registered; Credits are added to record amounts transferred from the relevant accounts; The debit balance at the end of the period represents the net loss incurred in the current period; The closing credit balance represents the net profit incurred during the period. There is no balance after the year-end carry-over to the profit distribution account.

Profit Distribution Account:

1. Nature of account: owner's equity.

2. Account purpose: Accounting for the balance after the distribution of corporate profits and the distribution of previous years.

3. Account structure: debit decreases, registers distributed profits; The increase in credits is recorded as the net profit for the current period carried forward from the profit of the current year. The closing balance is on the credit side, representing the accumulated undistributed profits; The closing balance is on the debit side, indicating the accumulated losses incurred.

Before the end of the year, the current profit and loss should be carried forward to the "current year's profit" account, and then the "current year's profit" must be made before the settlement.

If the Profit This Year balance is a credit number, it represents a profit:

Borrow: Profit for the current year.

Credit: Profit Distribution – Undistributed Profits.

If the balance is a debit, it means a loss:

Debit: Profit distribution - undistributed profits.

Credit: Profit for the year.

In the balance sheet in December, fill in the balance sheet of "profit of the year" at the end of the period when it is not transferred, and fill in the balance of the "undistributed profit" account in the column of undistributed profit, so that the statement is flat, and there is no need to modify the beginning of the statement. When you make a statement at the beginning of the year, you can directly fill in the balance of "undistributed profits" in the column of the beginning of the year, and the beginning of the current year's profit is 0.

Carry forward revenue to current year profits. Borrow: main business income.

Credit: Profit for the year.

Carry forward expenses to the current year's profit.

Borrow: Profit for the current year.

Credit: Administrative expenses.

Finance Expenses. After the carry-forward is completed, a credit balance appears on the profit account for the current year.

Carry forward the current year's profit to the profit distribution.

Borrow: Profit for the current year.

Credit: Profit Distribution – Undistributed Profits.

Accounting Treatment:1. This part reflects the net profit (or net loss) realized by the enterprise in the current period.

2. When the enterprise carries forward the profit at the end of the period (month), it shall transfer the amount of each profit and loss account to the account of the department to balance the profit and loss account. The credit balance after the carry-forward of this paragraph is the net profit realized in the current period; The debit balance is the net loss incurred during the period.

3. At the end of the year, the net profit of the current year will be transferred to the "profit distribution" account, and the "profit distribution - undistributed profit" account will be debited; If the net loss is reversed. There is no balance after the carryover.

At the end of the year, the profit distribution should be carried forward, and the main accounting treatment is as follows:

1. The profit at the end of the period of the enterprise and the profit distribution entries are:

Annual profit carried forward to profit distribution:

Borrow: Profit for the year, Credit: Profit Distribution - Undistributed Profit, 2. Withdrawal of Statutory Surplus Reserve and Arbitrary Surplus Reserve:

Borrow: Profit Distribution - Statutory Surplus Reserve, Profit Distribution - Arbitrary Surplus Reserve, Credit: Surplus Reserve - Statutory Surplus Reserve, Surplus Reserve - Arbitrary Surplus Reserve, 3. Distribution of dividends:

Borrow: Profit Distribution - Dividends Payable, Credit: Dividends Payable, Carry-forward Distributed Profits:

Debit: Profit Distribution - Undistributed Profits, Credit: Profit Distribution - Withdrawal of Statutory Surplus Reserve, Profit Distribution - Withdrawal of Discretionary Surplus Reserve.

Profit distribution - dividends payable, with surplus reserves to cover losses in previous years:

Borrow: surplus reserve, credit: profit distribution - surplus reserve transferred in, enterprise loss at the end of the period, profit distribution entries are:

Debit: Profit Distribution - Undistributed Profit, Credit: Profit for the Year.

Debit: Profit distribution - undistributed profits.

Credit: Profit Distribution – Withdrawal of Statutory Surplus Reserve.

Credit: Profit distribution – withdrawal of any surplus reserve.

Credit: Profit Distribution – Dividends Payable.

The surplus reserve is used to cover the losses of previous years.

Borrow: surplus reserve.

Credit: Profit distribution - transfer of surplus reserves.

The object of enterprise profit distribution is the net profit of the enterprise after paying income tax, and these profits are the rights and interests of the enterprise, and the enterprise has the right to distribute it independently. The relevant laws and regulations of the state have also made relatively clear provisions on the basic principles, general order and major proportions of enterprise profit distribution, and their purpose is to ensure the orderly progress of enterprise profit distribution, safeguard the legitimate rights and interests of enterprises, owners, creditors and workers, and promote enterprises to increase accumulation and enhance their ability to prevent risks.

Extended Material: Profit Distribution.

Profit distribution refers to the distribution of the total profits realized by the enterprise and the profits distributed from the joint venture units between the state and enterprises and between enterprises in a certain period of time (usually annual).

The procedure for profit distribution is generally divided into three stages:

1) Based on the total profits realized by the enterprise plus the profits distributed from the associates, i.e., the total income of the enterprise, before the payment of income tax and adjustment tax, the tax-exempt items of the associates, creditors and enterprises of the enterprise shall be deducted for the initial distribution according to the regulations. The tax exemption items deducted mainly include: profits distributed to joint ventures, profits from repayment of infrastructure loans and special loans, profits from repayment of loans, employee benefits and incentives withdrawn, profits from previous years, and various individual retained profits of enterprises (such as net profits left to enterprises for "three wastes" products, profits left to enterprises for processing and assembly business with foreign materials), etc.

For enterprises that implement the contract operation responsibility system, after the pre-tax profit distribution, they shall hand over the contract profits in the form specified in the contract (turning over the profit increment contract, turning over the profit base lump sum and excess income share, etc.) during the contract operation period, and no income tax and adjustment tax will be levied. The balance of the total income after deducting the initial distribution is the taxable income of the enterprise.

2) Based on the taxable income of the enterprise, the tax payable shall be calculated according to the prescribed income tax rate and the adjusted tax rate, and shall be redistributed between the state and the enterprise. The balance of taxable income after deducting the tax payable is the retained profit of the enterprise.

3) Based on the retained profits of the enterprise, the retained profits of the enterprises shall be transferred to various special purposes according to the prescribed ratio**.

The profit and loss account is carried forward to the current year's profit (which can be done at the end of each month), and then the current year's profit is carried forward to the profit distribution - undistributed profit at the end of the year.

The profit of the current year reflects the profit and loss of the enterprise in the current year, so it is not calculated across the year, and it must be carried forward to the "profit distribution and undistributed profit" at the end of the year, regardless of whether it is a profit or a loss in the current year. If the "profit of the current year" is not carried forward at the end of the year and is carried forward to the next year, the account will not reflect the profit or loss of the enterprise for the current year, and the purpose of this section will be lost.

Accounting Treatment:1. This account accounts for the net profit (or net loss) realized by the enterprise in the current period.

2. When the profit is carried forward at the end of the period (month), the amount of each profit and loss account shall be transferred to this account and the profit and loss account shall be settled. The credit balance of the subject after the carry-forward is the net profit realized in the current period; The debit balance is the net loss incurred in the current period.

3. 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, debited to this account, and credited to the "profit distribution - undistributed profits" account; For example, make the opposite accounting entry for the net loss. There should be no balance in this account after the carryover.

The above content reference: Encyclopedia - Profit of the year.

Summary: Profit and loss should be carried forward first. With the profit of December, this should be after completing all the accounts of the month and posting, the profit and loss at the end of the point period, and the program automatically generates the profit and loss of the voucher before you need to manually enter the profit of the year.

Entries:

The balance of the current year's profit account represents the accumulated net profit or net loss during the year, which is not carried forward at ordinary times, and is transferred to the profit distribution account at the end of the year at one time.

Borrow: Profit for the current year.

Credit: Profit Distribution – Undistributed Profits.

In the case of a loss, a reverse entry is made.

If the current year's profit on the previous year's old ledger is not carried forward to the Profit Distribution – Undistributed Profit account. In the new account of the next year, it is directly recorded in the profit distribution - undistributed profit, and the summary column is recorded, and the profit of the previous year and the current year is carried forward.

The carry-over of the current year's profit does not directly affect the statement, and the income statement is calculated and generated gradually according to each item, which has little to do with the current year's profit or profit distribution, and will not have much impact. Profit distribution: This account mainly affects the provision of surplus reserve and the distribution of profits. However, the surplus reserve is to be accrued and checked.

Therefore, it can be transferred together for three years, but it should be transferred separately and not together, otherwise it will not be clear that the surplus provident fund to be withdrawn every year will not be clear.

Answer: 1. Sui Xun only carries forward income first:

Borrow: main business income.

Other business income.

Non-operating income.

Credit: Profit for the year.

2. Carry-forward costs, fees and taxes:

Borrow: Profit for the current year.

Credit: Cost of Principal Operations.

Taxes and surcharges.

Other operating expenses.

Operating expenses. Management fees.

Finance Expenses. Non-operating expenses.

Income tax. 3. Carry-over investment income:

Net income: borrowed: investment income.

Credit: Profit for the year.

Net loss: borrow: profit for the year.

Credit: Investment income.

Fourth, the annual carry-over profit distribution:

Net profit realized for the year after offsetting the income and expenses of the year:

Borrow: Profit for the current year.

Credit: Profit Distribution – Undistributed Profits.

If it's a loss:

Debit: Profit distribution - undistributed profits.

Credit: Profit for the year.

What is the correct order of distribution of the company's profits?

The company distributes dividends to shareholders in a certain order. In accordance with the relevant provisions of China's company law, the distribution of profits shall be carried out in the following order:

The first step is to calculate the profit available for distribution. The net profit (or loss) for the year is combined with the undistributed profit (or loss) at the beginning of the year to calculate the profit available for distribution. If the profit available for distribution is negative (i.e. a loss), no subsequent distribution can be made; If the profit available for distribution is positive (i.e., the profit accumulated this year), a subsequent distribution is made.

The second step is to withdraw the statutory surplus provident fund. The statutory surplus reserve fund shall be calculated according to the net profit of the current year after deducting the accumulated losses at the beginning of the year. The base for withdrawing surplus provident fund is not the profit available for distribution, nor is it necessarily the after-tax profit of the current year.

Only if there is no accumulated loss at the beginning of the year, the amount to be withdrawn can be calculated based on the profit after tax for the current year. This kind"Make up for the loss"It is carried out on a book basis, and has nothing to do with the backward transfer of losses under the income tax law, and the key is that dividends cannot be paid out with capital, nor can surplus provident funds be withdrawn without accumulated surpluses.

The third step is to withdraw any surplus provident fund.

The fourth step is to pay dividends (distribution of profits) to shareholders (investors).

If the general meeting of shareholders or the board of directors of the company violates the above-mentioned profit distribution order and distributes profits to shareholders before making up for losses and withdrawing statutory surplus reserve funds and community chests, the profits issued in violation of the regulations must be returned to the company.

How to make accounting entries from the carry-forward of the current year's profit to profit distribution? That is, the two accounts are borrowed and loaned, and the final distributable profits are transferred to the undistributed accounts, and the changes in the two of them will not cause changes in equity, but the undistributed profits must be strictly followed in accordance with the procedures before they are distributed, as shown in the above information.