Questions about carryover, what is carryover?

Accounting entries for the current year's profits are done in four steps:

1. Carry forward income first:

Borrow: main business income.

Borrow: Other business income.

Borrow: 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.

Credit: Principal business tax and surcharge.

Credit: Other operating expenses.

Credit: Operating expenses.

Credit: Administrative expenses.

Credit: Finance Expense.

Credit: Non-operating expenses.

Credit: 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.

1.The income class is transferred to the current year's profit credit:

Main business income.

Other business income.

Non-operating income.

2.Costs and expenses and various expenses are transferred to the debit side of the current year's profits

Cost of Principal Operations.

Other business costs.

Non-operating expenses.

Management fees. Operating expenses.

Finance Expenses. Taxes and surcharges on the main business.

Income tax. 3.At the end of the year, the profit of the current year is transferred to the profit distribution - undistributed profit.

Hello, carry-forward is a term in accounting that refers to the process of transferring unconsumed or unsettled costs, expenses, or earnings from the previous accounting period to the next accounting period. Specifically, carry-over includes two situations:1

Carry-forward costs and expenses: The production costs, selling expenses, and administrative expenses that have not been settled or fully consumed in the previous accounting period are transferred to the next accounting period for calculating the costs and expenses of the current period, and providing for the prepayment and withholding expenses of the current period. 2.

Carry-forward income: The realized but unsettled income (such as accounts receivable, unrecognized income, etc.) in the previous accounting period is transferred to the next accounting period to facilitate the calculation of current revenue and current profit. Carry-over is a relatively important part of accounting, which is related to the cost accounting, expense control and accuracy of financial statements of enterprises.

Carry-forward, or period-end carry-forward, refers to the transfer of the balance or difference from one account to another account at the end of the period. There are two accounts involved here, the former is the transfer-out account and the latter is the transfer-in account, and generally speaking, after the carry-over, the transfer-out account will have no balance.

It is an important specific business in accounting work, and it is usually the practice of transferring the amount and balance of one accounting account to that account or another accounting account, which is called carryover. There are four purposes of carry-forward: one is to carry out the balance of this account; the second is to calculate the cost for the reporting period; the third is to calculate the profit and loss of the current period before the profit and loss and the realization of profits; Fourth, in order to maintain the continuity of accounting work, it is necessary to transfer the balance at the end of the current fiscal year to the next fiscal year.

"Carry-forward" is an important part of accounting treatment: at the end of the accounting period, expenses need to be carried forward, sales revenue needs to be carried forward, and profits of the year need to be carried forward. The so-called carry-forward is to carry out accounting treatment, and the accounting carry-forward is completed through the preparation of accounting vouchers, summarization, parallel registration of general ledger and sub-ledger and other specific accounting operations.

Let's take an example to illustrate: whether it is an industrial enterprise or a commodity circulation enterprise, as long as there is sales (as long as the industrial enterprise produces finished products), it is necessary to carry forward the cost of products and the cost of product sales.

Expansion: 1. Suppose a batch of products is produced this month, 200,000 yuan is picked up in the month, the salary is 5,000 yuan, and the manufacturing cost is 10,000 yuan, and the product cost will be carried forward at the end of the month. Assuming that the enterprise does not have products at the beginning and end of the period, the total cost is 215,000 yuan.

At the end of the accounting period, the following accounting treatment should be carried forward: borrow: finished products 215,000 credits

Production cost 215,000.

2. If a batch of products is sold this month, the selling price is 190,000 yuan, and the cost is 180,000 yuan, then the sales cost should also be carried forward, and the cost of sales should be borrowed: the cost of product sales is 180,000 credit: the finished product is 180,000 of course, or it is still for sale (if all the payment is received through the bank), then:

Borrow: Bank Deposits 222,300 Credit: Product Sales Revenue 190,000 Credit Tax Payable VAT Payable (Output Tax) 32,300.

3. Finally, if it is the end of the year, there is also a change in the account book to carry over the balance to the first month of the next fiscal year, which is also called carryover.