Why does this year s profit belong to the owner s equity account, but it belongs to the profit eleme

At the end of the current year's profit, it will be carried forward to the profit distribution account, and the balance after the carry-over is zero, so it does not belong to the owner's equity. All other owner's equity accounts belong to the owner's equity element.

Owner's equity refers to the right of the owner of the enterprise to claim the net assets of the enterprise. The so-called net assets, which are quantitatively equal to the balance of all assets of the enterprise minus all liabilities, can be expressed by the deformation of the accounting identity, that is: assets - liabilities Owner's equity.

Elements of owner's equity include:

1) Paid-in capital: The paid-in capital of an enterprise refers to the capital actually invested by investors in the enterprise in accordance with the articles of association, or contracts and agreements. The capital invested by the owner in the enterprise does not need to be repaid under normal circumstances and can be used for long-term turnover.

2) Capital reserve: the common rights and interests of investors arising from the appreciation of capital itself or other reasons. This includes capital (or equity) premiums, donated assets, foreign currency capital translation differences, etc.

The capital (or equity) premium refers to the part of the capital invested by the enterprise investor that exceeds its share of the registered capital;

Donated assets refer to the increase in capital reserve of an enterprise due to the acceptance of cash and non-cash asset donations;

The difference in translation of foreign currency capital refers to the difference in the translation of capital due to the difference in the exchange rate adopted by an enterprise in accepting foreign currency investment.

3) Surplus reserve: the accumulation of the enterprise from the realized profits or formed by the enterprise to be retained within the enterprise.

Undistributed profits: Profits that are retained or to be distributed in subsequent years.

The profit of the current year is a profit element in the classification of accounting elements.

Through the summary and carry-forward of profit and loss accounts, the final accounting is profit, and after the year-end carry-over to profit distribution, there is no balance in the current year's profit account.

It is owner's equity in the ledger account classification.

class, on the balance sheet.

, the profit for the year is the undistributed profit that is attributed to the owner's equity. Account is the same as the first position of the Owner's Equity class.

Is the profit of the current year the net profit or net loss of the enterprise in the accounting year, and the profit obtained by the enterprise belongs to the owner's equity accounting account in practice?

Is profit owned by owners' equity?

The profit of the year is the owner's equity account, and the income and profits realized by the credit registered enterprise in the current period, including main business income, other business income, investment income, etc., and the various expenses and expenses incurred by the debit registered enterprise in the current period, including the cost of main business, taxes and surcharges, other business costs, sales expenses, management expenses, financial expenses, etc.

The profit of the year refers to the net profit (or net loss) of an enterprise in a certain fiscal year, which is calculated and determined by the composition of the company's profit, and is a dynamic index formed by the gradual accumulation of the enterprise from January to December of the calendar year.

Profit for the year = operating income - operating costs - taxes and surcharges - selling expenses - administrative expenses - financial expenses - asset impairment loss + fair value change gains and losses + investment income + non-operating income - non-operating expenses - income tax expense.

What is Owner's Equity?

Owner's equity refers to the residual equity due to the owner after deducting the liabilities from the assets, that is, the net amount of resources with future economic interests owned or controlled by an accounting entity in a certain period. The accounting equation "assets - liabilities = owners' equity" clearly shows that owners' equity is essentially a residual equity, which is the difference between all assets of the enterprise and all liabilities, reflecting the property rights relationship of the enterprise.

The ** of owner's equity includes the capital invested by the owner, other comprehensive income, retained earnings, etc., which is usually composed of equity (or paid-in capital), capital reserve (including equity premium or capital premium, other capital reserve), other comprehensive income, surplus reserve and undistributed profits.

This year's profit is an owner's equity account.

Owner's equity refers to the residual equity enjoyed by the owner after deducting the liabilities from the assets of the enterprise. The owner's equity of a company is also known as the shareholders' equity.

Owner's equity is the owner's residual right to claim the assets of the enterprise, which is the part of the assets of the enterprise that should be enjoyed by the owner after deducting the rights and interests of creditors, which can not only reflect the preservation and appreciation of the owner's invested capital, but also reflect the concept of protecting the rights and interests of creditors.

The ** of owner's equity includes the capital invested by the owner, other comprehensive income, retained earnings, etc., which is usually composed of equity (or paid-in capital), capital reserve (including equity premium or capital premium, other capital reserve), surplus reserve and undistributed profits.

The capital invested by the owner refers to the part of the capital invested by the owner in the enterprise, which includes not only the amount of the registered capital or share capital of the enterprise, but also the amount of the invested capital exceeding the registered capital or share capital, that is, the capital premium or the equity premium, which is reflected as the capital reserve (capital premium).

Other comprehensive income refers to the gains and losses that are not recognized in the profit or loss for the current period in accordance with the accounting standards. Retained earnings refer to the internal accumulation of enterprises that are withdrawn or formed from the profits realized over the years, including surplus reserves and undistributed profits.

The profit of the year is a dynamic indicator, which is used to account for the net profit or net loss of the enterprise from January to December. So does this year's profit belong to the owner's equity account? What should I do about the corresponding accounting processing?

Does this year's profit belong to the owner's equity account?

According to accounting standards, owner's equity accounts include paid-in capital, capital reserve, surplus reserve, current year profit, and profit distribution. Therefore, this year's profit belongs to the owner's equity account.

Accounting treatment of the current year's profits.

1) The accounting treatment of the enterprise to carry forward all the income accounts of the lack of group incentives to the profit of the current year:

Borrow: main business income.

Other business income.

Non-operating income.

Credit: Profit for the year.

2) Accounting treatment of all costs, expenses and taxes carried forward to the current year's profits

Borrow: Profit for the current year.

Credit: Cost of Principal Operations.

Taxes and surcharges.

Other business costs.

Selling expenses. Management fees.

Finance Expenses. Non-operating expenses.

Income tax expense.

3) The balance of the investment income is carried forward to the accounting treatment of the current year's profits

Borrow: Investment income.

Credit: Profit for the year.

4) At the end of the year, the enterprise will carry forward the profit of the current year to the accounting treatment of profit distribution

Borrow: Profit for the current year.

Credit: Profit Distribution – Undistributed Profits.

What is the profit for the year?

The debit side of the profit of the current year is the expenses and expenses incurred by the registered enterprise in the current period, including the cost of main business, taxes and surcharges on the main business, other business expenses, operating expenses, management expenses, financial expenses, investment income (net loss), non-operating expenses, income tax, etc.; The income realized by the credit registered enterprise in the current period includes main business income, other business income, investment income, "subsidy income", non-operating income, etc. The profit of this year is calculated and determined by the composition of the company's profits, which is a dynamic indicator formed by the gradual accumulation of the enterprise from January to December of the calendar year, and refers to the net profit or net loss of the enterprise in a certain accounting year.

How the profit for the year is calculated.

Profit for the year = operating income + investment income + non-operating income - cost - tax - expense - non-operating expenses.