Account 99 profit and. When the accounting entry D99 - K09 is made

That synthetic accounting is kept on synthetic accounts accounting in accordance with the Chart of accounts for accounting of financial and economic activities of organizations (Order of the Ministry of Finance dated 31.10.2000 No. 94n). We will tell you about account 99 in our material.

Account 99 "Profit and loss"

In accordance with the Chart of Accounts, account 99 "Profits and Losses" is necessary to summarize information on the formation of the final financial result of the organization in the reporting year.

It is on this account that profit or loss from ordinary activities and other operations is accumulated throughout the year.

Debit 99 is profit or loss

Monthly synthetic accounts 90 "Sales" and 91 "Other income and expenses" are closed ("zeroed out"). This is due to the fact that the excess of the debit or credit turnover of these accounts is charged to account 99.

Let us show what has been said using the example of account 90.

During the month, the sale of goods for the amount of 118,000 rubles was made, incl. VAT 18%. The cost of sales is 85,000 rubles. There were no other transactions on account 90.

Despite the fact that the turnovers on the sub-accounts to account 90 continue to accumulate throughout the year (they are closed only on December 31), the synthetic account 90 itself must be closed at the end of each month. To do this, on the last day of each month, credit and debit turnovers are compared:

To close account 90 at the end of the month, you need to debit it for 15,000 rubles:

Thus, account 90 was closed:

If at the end of the month the debit turnover of account 90 turned out to be more than the credit one, then a loss occurs, which is reflected by the reverse entry: Debit 99 - Credit 90.

Similarly, profit and loss from other types of activities is detected, income and expenses from which are recorded on account 91:

Debit 91 - Credit 99 means that profit is generated for other activities at the end of the month.

Debit 99 - Credit 91 means that there is a loss on other income and expenses for the month.

Account 99 - for calculations of income tax

Account 99 during the year also reflects the amount of accrued, permanent tax liabilities and assets and payments on recalculations for this tax from actual profit, as well as the amount of tax sanctions due to be paid. So, the accrual of conditional income tax expense in accordance with PBU 18/02, as well as simply income tax based on the declaration, if accounting for calculations under PBU 18/02 is not kept, will look like this: Debit 99 - Credit 68. The same the record will reflect the accrual of fines and penalties before the budget for income tax, VAT and other taxes.

Sanctions before extrabudgetary funds (for example, the FIU) must be calculated as follows: Debit 99 - Credit 69 "Calculations for social insurance and provision ”.

If accounting for profit settlements in accordance with PBU 18/02 is kept, then account 99 on debit can also correspond, in particular, with account 09 "Deferred tax assets". So, accounting entry D99 K09 is made when writing off a deferred tax asset in the event of disposal of the object for which it was accrued.

Closing an account 99

At the end of the year, account 99 is reset to zero with the transfer of the difference to account 84 “Retained earnings (uncovered loss)”: the so-called “balance sheet reformation” takes place. At the end of the year, the posting Debit 99 - Credit 84 means that the revealed total profit for the year for all types of activities is included in the profit (loss) of previous years. And the loss for the year is reflected: Debit 84 - Credit 99.

Thus, the answer to the question "Profit on debit or credit 99 of account" is as follows: during the year, the balance on account 99 in credit means profit, and on debit - a loss. Accordingly, debit account 99 during the year means the recognition of a monthly loss (as well as the accrual of income tax and sanctions), and crediting means profit. Consequently, crediting account 99 at the end of the year with the reformation of the balance sheet means that the year ended with a loss, and debit (Debit account 99 - Credit account 84) - at the end of the year, a profit was made.

IN modern world can not imagine activity of the enterprise without accounting. Correct reporting allows you to have a clear idea of \u200b\u200bthe company's activities, understand its weaknesses and hidden opportunities, thereby improving its efficiency, increase income, and also go to a new level of business.

The result of the activity of any enterprise is profit. Profit is the difference between and the cost of producing goods or services, is an the most important indicator to understand the financial independence of the company. The laws Russian Federation in the field of accounting, it is determined that the reflection of profit should be carried out on 99 account Chart of accounts.

Regardless of the type of business of the enterprise and the form of education, the accountant is obliged to open account 99 and display transactions on it accurately and fully. Account transactions reflect the profit or loss of the company in the reporting period, namely:

1. Income and costs for ordinary activities, which are determined by statutory documents.
2. Profits and losses from emergency activities (elimination of emergency situations, sums insured, loss of equipment, goods, forced stop of production lines).
3. Income tax payments and recalculations and tax penalties, deferred liabilities.

The Profit and Loss account is active-passive, that is, the transaction can be shown on credit or debit - it depends on the situation. The end result of the activity reflects the remainder. On debit 99 of the account, it is necessary to display actions on expenses and losses of the company.

Costs are the sum of all costs incurred by the company for reporting year (month, quarter) as a result of his work. These expenses are the cost of raw materials, the purchase of equipment, payment to employees, the operation of transport, etc. Expenses correspond to the credit with accounts: 64, 03, etc. An example for debit 99 of the account is the loss of goods that occurred as a result of an emergency ( Dt. 99 / ct. 41).

In credit, the accounts show the firm's income. Income - these are all receipts to the current accounts that the company has at the specified time. Examples of income: revenue, profit from operations with securities, interest on investments, rent, etc. The account credit is linked to the following accounts: 90, 72, 8, etc. Example: the action on the loan is to make a profit from the sale of goods or services produced (Dt. 90 / Kt. 99).

Balance

The balance is the difference between profits and expenses that arises from the production and sale of products. The balance is considered the most important indicator in accounting statements... The balance can be initial and final, which is determined at the beginning and at the end of a given time interval.

Of course, any enterprise strives to ensure that profits exceed costs. If the account balance turned out to be debit at the end reporting date, it means that the level of costs exceeded the level of profit. In this case, the balance is negative - the company did not make a profit for reporting period their activities. If the balance is credit, then the company reflects profit with a plus sign in the report on the results of its work.

At the end of each period, organizations it is necessary to close the account and open it again at the beginning of the year... This is done in order to understand how the company works, what its level of profitability is. Since accounting periods are equal to tax periods, it is easy to understand that it is also necessary to zero the balances in order to make tax payments on time and in full.

The opening balance for the future period must always be zero. In order to close the 99 account, you must first close the accounts that are associated with it. These accounts include:

90 "Sales"

This account displays the income from the sale of goods and the provision of services that were generated as a result of the main activity of the organization. For the convenience of accounting, sub-accounts are opened on this account: 90.1, 90.2, 90.3,90.9.

Until July 2017, the depreciation for this equipment in accounting was 216,000 rubles, in tax - 240,000 rubles, the calculated temporary difference was 24,000 rubles. The deferred tax asset was:

24,000 * 20% \u003d 4800 rubles.

Since the company sold this equipment in July 2017, it needs to write off the deferred tax asset. This is done by the following wiring:

Dt. 99 ct. 09 \u003d 4800 RUB

Example 2: by the firm LLC "Sintomat" in 2016, goods were produced and sold for 2,500,000 rubles. Value added tax in the period amounted to 500,000 rubles. Production costs - 1,080,343 rubles. Operating costs, management costs, rental costs and transport are equal to 523,487 rubles.

Account 90.1 - Balance Кт - 2,500,000 rubles.

Account 90.2 - Balance Dt - 1,080,343 rubles.

Account 90.3 - Balance Dt - 500,000 rubles.

Account 44 - Balance Dt - 523,487 rubles.

Closing an account as of 31.12.2016 is carried out by following scheme:

Dt. 90.2 ct. RUB 44 - 523 487

Dt. 90.9 ct. 99.1.1 - (1,080,343 + 500,000 + 523,487) - 2,500,000 \u003d 396,170 rubles.

Total, the credit balance, that is, the company made a profit in 2016 in the amount of 396,170 rubles. Final wiring upon closing the account will be:

Dt. 99 ct. RUB 84 - 396 170

To determine the amount of the income tax liability for the reporting period, it is necessary to fulfill this wiring:

Dt. 99.1.1 CT. 68 - 396 170 * 20% \u003d 79 234 rubles.

When conducting accounting, it is difficult to overestimate the importance of correct execution of account 99 "Profit and Loss", since it is on this account that the result of the enterprise is assessed, further plans for effective business conduct are made and the amount of the tax liability for income tax is determined.

Additional account information is presented below.

What is debit 99 - is it profit or loss? According to the current Chart of Accounts 99 “Profit and Loss” is intended to display the financial results from the operating activities of the company for the current reporting / tax period. The data are summarized for the year during which information on business transactions is cumulatively displayed on this account.

Profit on debit or credit 99

Synthetic and analytical accounting of profit or loss is kept on account 99 (refers to the active-passive type) with the opening of the necessary sub-accounts. A one-sided debit balance implies unprofitable activities. Reflection of data on financial results is made by making the appropriate standard postings:

• Debit 99 Credit 91 means - writing off the unprofitable account balance. 91 "Other expenses".
• Debit 99 Credit 90 - losses for the month from ordinary activities.
• Debit 99 Credit 84 - the balance sheet was restructured for the period by writing off the profit revealed for the billing year to the results of previous periods.
• Debit 99 Credit 69 - sanctions in terms of off-budget payments have been charged.
• Debit 99 Credit 68 - accrual of income tax for the reporting periods; penalties, interest on VAT, other taxes to the budget.

Important! Debit 99 during the period means the occurrence of losses, tax payments, including sanctions; and according to the results of the period - with the help of reformation, it shows the profit for the year.

Accounts 90, 91 are closed monthly to account 99, but at the same time they have balances on analytical sub-accounts. Count. 99 is completely reset to zero at the end of the calendar year.

An example of closing an account. 90, 91, 99 for typical postings:

• Debit 99 Credit 90 - the loss from the work of the company is written off.
• Debit 99 Credit 91 - a loss on expenses recognized as other is written off.
• Debit 99 Credit 84 - annual profit written off, account. 99 closed.

Accounting entry D99 K09 is formed in the following cases:

As part of the application of PBU under No. 18/02 sc. 09 "Deferred tax assets" (SHA) summarizes information on the movement of tax assets. Small business organizations have the right not to apply this PBU. ITA includes the amount of deferred tax liabilities for deductible temporary differences. Accounting for such values \u200b\u200bSHE is organized separately for all types of assets.

Upon disposal of any item for which the temporary difference has arisen, the amount of the deferred tax assets is written off. To do this, a typical posting of Debit 99 Credit 09 is made for the total disposal amount.

An example of SHE write-off:

The company purchased equipment in the amount of 700,000.00 rubles with a term useful use lasting 5 years. The method of calculating depreciation in accounting is the method of reducing the balance, and in tax accounting it is linear. For the current calendar year, depreciation expenses were accrued: for accounting purposes - 233 333.33 rubles; for purposes tax accounting - 140,000.00 rubles.

The amount of the deductible difference \u003d 233,333.33 - 140,000.00 \u003d 93,333.33 rubles. SHE \u003d 93,333.33 x 20% \u003d 18 666.67 rubles, the posting is done: Debit 09 Credit 68 for 18 666.67 rubles.

When an item of fixed assets is disposed of, for example, as a result of a sale, the following entry is made: Debit 99 Credit 09 for 18 666.67 rubles for the disposed asset.

How is the final financial result of the company's activities for the year formed? How are the results summed up? In this article, we will take a closer look at account 99 “Profits and Loss”, what it is for, and what transactions on account 99 are reflected throughout the year. Accounting for the financial results of the organization shows the effectiveness of the company.

In the last article, we sorted it out, there I already indicated the connection between the midpoint. 90 and 99. We also disassembled and saw the connection between the count. 91 and 99. Let's go further.

By the way, in the near future we will deal with.

Accounting for the financial result of the enterprise

The financial result for the month is formed using the account. 99.

What is the financial result?

1. financial result for the main types of activities,
2. other income and expenses.
3. income and expenses related to emergencies at the enterprise (fires, natural disasters, etc.).
4. accrued.

By debit account 99 reflects losses, the loan - profit.

1. When reflecting the financial result for the main activities of the account. 99 corresponds with.

Transactions to show profit and loss from core activities:

• D90 / 9 K99 - posting to reflect profit from the main activity.
• D99 K90 / 9 - posting to reflect the loss from the main activity.

2. Taking into account other income and expenses of the account. 99 corresponds with.

Postings to reflect other income and expenses:

• D91 K99 - other income is taken into account.
• D99 K91 - other expenses are taken into account.

3. When taking into account the income and expenses associated with emergency situations, account. 99 corresponds to various accounts,.

4. When taking into account the accrued payments for income tax account. 99 corresponds with.

At the end of the month, the total account balance is considered. 99, if the final balance is in debit, the organization remained at a loss this month, if the credit balance is in profit.

At the beginning of each month, the account balance 99 is transferred from the previous month to the current month. Throughout the year, the balance of profit or loss is accumulated on account 99 on an accrual basis. At the end of the year nt. 99 closes with final entries on.

Video lesson "Accounting for profit and loss for account 99: typical transactions, examples"

In this video lesson, the rules of accounting for account 99 “Profits and losses” are disclosed, correspondent accounts, typical transactions and accounting examples are analyzed. The lesson is conducted by a consultant and an expert of the site “Accounting for Dummies, Chief Accountant Gandeva N.V. ⇓

You can download the slides and presentation for the video at the link below.

Account closing transactions 99

• D99 K84 - the final financial result is profit.
• D84 K99 - the final financial result is a loss.

At the beginning next year count. 99 reopens.

As a result, on the account. 84 is reflected at the end of the year as either profit (on credit) or loss (on debit). Account 84 is used to distribute profits for any needs of the organization, for example, for payments to founders, Also, if earlier on the account. 84 was a loss, then this year's profit can cover the loss of previous years.

Account 99 in accounting is kept on sub-accounts depending on the calculation of profit and loss:

• balances on 90 and 91 accounts form a financial result on account 99;
• income tax from account 68.04 is closed to account 99;
• temporary and permanent differences form notional income / expense;
• balance sheet reformation closes account 99 for retained earnings (uncovered loss) on account 84.

Account 99 "Profits and losses" is characterized as accumulative for positive and negative financial results of economic activities of enterprises.

How is the structure formed?

In accounting, account 99 is classified as active-passive, since on the loan you can see the generalized information about the profit received, on the debit - all losses resulting from the reflected expenses.

Profits and losses are generated using:

• 90 "Sales" - used by companies to reflect income and expenses from sales of core activities;
• 91 "Other income and expenses" - it accumulates income and expenses from other activities;
• notional income / expense is accrued from the application of the tax;
• penalties are reflected.

Constant and deferred tax liabilities and assets are actively involved in shaping the results.

An important point! The score 99 is synthetic. Analytical accounting should be conducted without fine detail, grouping the information necessary to generate a report on financial results.

Sub-accounts on which information is collected:

1. 99.01 "Profits and losses from economic activities".
2. 99.02 "Income tax".
3. 99.07 "Other gains and losses".
4. 99.09 "Net profit / loss".

In turn, sub-accounts are subdivided into smaller groups. So, 99.02 is formed as a result of movements:

• 99.02.01 "Conditional income tax expense";
• 99.02.02 "Conditional income from income tax";
• 99.02.03 "Permanent tax liability (asset)";
• 99.02.04 “Restatement of Deferred Tax Assets and Liabilities”.

Transfer of income and expenses

Account 99 is an indicator of the final financial result from the company's activities, whether it is negative or positive, depends on the movements in the 90 and 91 accounts.

90 and 91 accounts, according to accounting rules, must be closed monthly, that is, the balance is reset to zero. They are closed with the help of correspondence from account 99.

Example of using account 99

The company receives income from the lease of premises. Acts and invoices for rent must be issued on the last day of the month, which is confirmed by the letter of the Department of Tax and Customs Policy of the Ministry of Finance of Russia dated June 5, 2018 No. 03-07-09 / 38397.

Therefore, the proceeds are finally formed at the end of the month and must be closed immediately to zero the balances. Records are made:

• Дт 62.01 "Settlements with buyers and customers" Кт 90.01 "Revenue" - the rent was charged in the amount of 5,000,000 rubles;
• Dt 90.03 "Value added tax" CT 68.02 "Value added tax" - VAT payable is charged in the amount of 18% of the amount of proceeds 762,711.86 rubles;
• Dt 90.02 "Cost price" Кt 20 "Main production" - the cost of rent is reduced from the costs incurred in the amount of 3,200,000 rubles.

When comparing the results in the reporting period for subaccount 90.01, a positive credit balance is obtained in the amount of 1,037,288.14 rubles. Account closure posting:

• Дт 90.01 Кт 99.01 in the amount of 1,037,288.14 rubles a profit was received from the sale of services.

If the result was a loss, it should be closed on debit 99 of the account.

How is income tax reflected?

In addition to sales, the profit tax has the necessary influence on the formation of account 99. Unlike accounting, tax accounting may or may not accept certain income and expenses for tax purposes. The differences between the accounts are called permanent and temporary.

Reference! The difference is formed by deferred tax assets (SHA) or deferred tax liabilities (DTL), depending on who remains owed as a result of the firm's work.

If the enterprise gets a debt to the IFTS, then IT starts to arrive, which are recorded on account 77 "Deferred tax liabilities".

The debt of the Inspectorate of the Federal Tax Service to the enterprise received as a result of calculations is intended to ensure the reduction of SHE. They are accounted for on account 09 "Deferred tax assets".

09 and 77 accounts correspond with 68.04 "Income tax", which should be closed monthly to account 99. In this way, income tax is charged in accounting and transferred to account 99 for reflection in the income statement. Posting plan:

• Dt 68.04 Kt 77 - tax was charged from IT;
• Dt 99 Kt 68.04 - notional income tax expense has been reduced;
• Dt 09 Kt 68.04 - a loss was formed from SHE;
• Кт 68.04 Дт 99 - notional income from losses of the company is charged.

Why reset the profit and loss totals in accounting?

After all the numbers are on the 99 account, you need to close it. Regardless of the other accounts involved in the formation, 99 the account will be reset to zero with the annual reformation of the balance sheet. All organization data using this routine operation will be reflected in the "Retained earnings (uncovered loss)" account:

• Dt 99 Kt 84 - net profit was received;
• Dt 84 Kt 99 - there was a current loss.

The purpose of operations on account 99 is the company's plan to see the end of its work to make a profit. For reporting, it can be used in reconciliation with Form No. 2.

An important point! Account 99 in balance sheet after the close at 84, the result is reflected on special line 1370 in section III Capital and reserves of the liability. By subtracting this line from the other lines in the section, a very significant indicator for organizations of any sphere is obtained - net assets, by which one can judge financial stability.

Legal status depends on the current fiscal policysince in tax code changes are constantly being made.