How the assets of the profit are accounted for

Mondo Finance Updated on 2024-01-30

How the assets of the profit are accounted for

1. Accounting treatment of inventory surplus.

1.When a profit is discovered, credits that are not used before are used, goods in transit or raw materials are found debit, balances are credited, goods or finished goods are credited, prior year profit and loss adjustments are credited, taxes payable are credited - VAT payable (inputs) is credited to bank deposits.

2.Prior year profit and loss adjustments are carried forward and prior year profit and loss adjustments are debited to credit profit distributions - undistributed profits.

2. Accounting treatment of fixed assets.

1.Fixed assets are debited, prior year profit and loss adjustments are credited, surplus reserves and profit distributions are credited when a surplus is discovered.

2.Prior year profit and loss adjustments are carried forward and prior year profit and loss adjustments are debited to credit profit distributions - undistributed profits.

3. Cash surpluses for which the cause cannot be ascertained.

Borrow: Cash, Credit: Loss and Excess of Property to be Disposed of; After the reasons are ascertained: borrow: property loss and excess to be disposed of, credit: other accounts payable (belonging to the amount payable or temporarily received from external units and individuals), non-operating income (cash surplus that cannot be ascertained after approval).

Fourth, the reason for which it is not possible to ascertain the inventory surplus.

Borrow: raw materials, credit: loss and excess of property to be disposed of; Borrow: Loss and surplus of property to be disposed of, Credit: Management expenses.

5. Fixed assets that cannot be ascertained for profit.

Borrow: Fixed Assets, Credit: Profit and Loss Adjustment for Previous Years; Borrow: Profit and Loss Adjustment for Previous Years, Credit: Profit Distribution - Undistributed Profit.

6. Cash losses that cannot be ascertained.

Borrow: Loss and excess of property to be disposed of, Credit: Cash; After the reasons are ascertained: borrow: other receivables (which belong to the responsible unit or individual to compensate for losses), administrative expenses (cash inventory losses that cannot be ascertained), non-operating expenses (extraordinary losses), credit: property losses and overages to be disposed of.

7. Inventory losses for which the cause cannot be ascertained.

Borrow: property loss and surplus to be disposed of, Credit: raw materials; After the reasons are ascertained: borrow: raw materials (residual materials are in storage), other receivables (belong to the responsible units or individuals to compensate for losses), management expenses (material damage caused by mismanagement), non-operating expenses (extraordinary losses), credit: property loss and overflow to be disposed of.

8. Inventory loss of fixed assets for which the cause cannot be ascertained.

Borrow: Property loss and excess to be disposed of, accumulated depreciation, provision for impairment of fixed assets, Credit: fixed assets; After the reasons are ascertained: borrow: other receivables (which belong to the responsible unit or individual to compensate for losses), non-operating expenses (extraordinary losses) credit: property loss and excess to be disposed of.

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