Why is the debit balance of the current year s profit a loss?

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

The balance of the current year's profit account represents the net profit or net loss accumulated 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.

When the profit is carried forward at the end of the period (month), the amount of each profit and loss account should be transferred to this account and the profit and loss account should 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.

Borrow: Profit for the current year.

Credit: Cost. Expenses.

Borrow: income. Credit: Profit for the year.

Therefore, when the income is greater than the cost and expense, the balance is on the credit side, that is, the profit. When the income is more than the cost and expense, the balance is on the debit side, that is, the loss is made.

The debit side of the profit account for the year is transferred to the fees and costs, and the credit side is transferred to the incomeYou have made a mistake in the direction of borrowing, see the following entries for details, I hope it can help you!

Profit or loss carried forward for the period Product sales revenue 1028592 profit or loss carried forward for the period Profit for the year 1028592

Profit or loss carried forward for the current period Profit for the current year.

Profit or loss carried forward for the period Cost of goods sold.

Profit or loss carried forward for the period Administrative expenses - Payroll 25200 Profit or loss carried forward for the period Administrative expenses - office expenses.

Profit or loss carried forward for the period Administrative expenses - business entertainment expenses 924 Profit or loss carried forward for the period Administrative expenses - **Fee 800 Profit or loss carried forward for the period Administrative expenses - travel expenses 60

Profit or loss carried forward for the period Administrative expenses - transportation expenses 12377 Profit or loss carried forward for the period Administrative expenses - low-value consumables.

Profit or loss carried forward for the period Administrative expense - depreciation.

Profit or loss carried forward for the period Administrative expenses - welfare expenses 48

Profit or loss carried forward for the period Administrative expenses - other 1067 Profit or loss carried forward for the period Finance expenses - Handling fees.

Maybe it's a mistake.

The credit of the current year's profit is the income transferred in, and the fees, costs, and taxes transferred in by the debit side.

Entries should be.

Borrow: main business income.

Other business income.

Non-operating income.

Credit: Profit for the year.

Borrow: Profit for the current year.

Credit: Cost of Principal Operations.

Taxes and surcharges on the main business.

Other business costs.

Operating expenses. Management fees.

Finance Expenses. Non-operating expenses.

Income tax.

It should be: at the end of the period, the income is transferred from the debit side of the Operating Income account to the credit of the current year's profit account, and the cost and expense are transferred from the credit side of the Cost account to the debit side of the current year's profit account; Profit is only expressed when the income is greater than the expense, i.e., when the Profit for the Year account has a credit balance.

I think you misunderstood the meaning of the title, which focuses on the subject of "Profit for the Year". If the income is transferred in, the "current year's profit" is on the debit side, and if the "current year's profit" credit is greater than the debit side, it will be a loss. I almost fainted when I saw you.

As for the understanding of this year's profit account, your statement is only half understood, (I can't say that you know half of it,..The credit balance of the "Profit for the Year" account is the net profit realized in the current period; The debit balance is the net loss incurred in the current period.

The debit balance of "profit for the year" is the net loss incurred in the current period.

The debit balance of the current year's profit is expressed as a loss for the current year.

The balance of the current year's profit account represents the net profit or net loss accumulated 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.

The income realized by the credit registered enterprise in the current period, including main business income, other business income, investment income, "subsidy income", non-operating income, etc.; The expenses and expenses incurred by the debit registered enterprise in the current period include the cost of main business, taxes and surcharges on main business, other business expenses, operating expenses, management expenses, financial expenses, investment income (net loss), non-operating expenses, income tax, etc.

01 The debit balance of the current year's profit represents the net loss incurred in the current period. The balance of the current year's profit account represents the net profit or net loss accumulated during the year, which is not carried forward at ordinary times, and is transferred to the profit distribution undistributed profit account at the end of the year. The income realized by the credit registered enterprise in the current period, including main business income and other business income.

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. When the enterprise carries forward the profit at the end of the period, it should transfer the amount of each profit and loss account to this account and settle the profit and loss account. The credit balance after carry-forward is the net profit realized in the current period; The debit balance is the net loss incurred in the current period.

The balance of the current year's profit account represents the net profit or net loss accumulated during the year, which is not carried forward at ordinary times, and is transferred to the profit distribution undistributed profit account at the end of the year. The income realized by the credit registered enterprise in the current period, including main business income and other business income. The expenses and expenses incurred by the debit-registered enterprise in the current period include the cost of main business, taxes and surcharges on the main business, other business expenses, operating expenses, management expenses, financial expenses, investment income, non-operating expenses, income tax, etc.

After the amount incurred by the borrower is offset, if it is a credit balance, it means the net profit realized by the company's operating activities in the current period, and if it is a debit balance, it means the loss incurred by the enterprise in the current period.

In order to make the "Profit of the Year" account provide the amount of profit of the current period accurately and timely without increasing the workload of compiling entries, the unit adopts a multi-column format on the "Profit of the Year" account page in actual work. The accounts of "main business income", "main business cost", "main business tax and surcharge" are changed from the first-level account to the second-level account under "current year's profit", which reduces the workload when carrying forward. However, the product ledgers under "Revenue" and "Cost" still need to be registered by quantity and amount.

According to the "Schedule" account page at the end of the middle and end of the period, there is no need to check multiple account books when preparing the profit and loss statement, and only the "current year's profit" can meet the needs of preparing the profit and loss statement. "Operating expenses", "management expenses", "financial expenses" and other expenses, which are not large in amount or have a small number of business transactions, can also be directly used as the secondary account of "current year's profit" to reduce the workload carried forward. If the above-mentioned expenses are large or the number of transactions incurred is large, it is still necessary to set up a sub-account according to the actual situation and carry it forward to the "Profit of the Year" account at the end of the period.

If the profit of the year is a credit balance, it means that the profit of the year is made and it should be distributed as follows:

1. First, transfer the balance to the undistributed profit loan: the current year's profit credit: profit distribution - undistributed profit.

2. If the profit at the beginning of the year is distributed on the debit side, it means that the loss of the previous year is made up with the profit carried forward from the current year, and the balance is still on the debit side after making up for the loss, and the loss is left to be made up in the following year. The balance of profit distribution after carrying forward the profit of the current year is on the credit side.

The balance of the current year's profit is on the debit side, proving the loss of the current year, and the direct debit: profit distribution - undistributed profit Credit: profit of the current year It's OK, and the income tax at the beginning of the year is paid: income tax expense Credit: tax payable - income tax payable When making up the payment, borrow: tax payable - income tax payable.

Credit: Bank deposits.

If the profit of the year belongs to the owner's equity account, and the balance of the profit of the year is on the debit side, it will be carried forward to the credit side of the profit distribution - undistributed profit, indicating that the current year is in a state of loss. Make the following accounting entries directly:

Debit: Profit distribution - undistributed profit.

Credit: Profit for the year.

If the balance of the current year's profit is on the credit side, the balance should be transferred to the undistributed profit, indicating that the current year is in a profitable state, and the following accounting entries should be made:

Borrow: Profit for the current year.

Credit: Profit distribution – undistributed profit.

The balance of the current year's profit is on the debit side, and the income tax is calculated based on the amount of the current year's profit. First, calculate the amount of the current year's profit, then calculate the income tax payable, and finally carry the income tax to the current year's profit account. When income tax is carried forward:

Borrow: Profit for the current year.

Credit: The collapse of the yard to balance the tax expenses.