What does the lender mean by the profit lender for the year
The profit of the year refers to the operating results of the enterprise in a certain accounting period, including the net amount of income minus expenses, and the gains and losses directly included in the current profit. The lender represents the increase or decrease of the account, and in the current year's profit, the lender represents the net profit or net loss realized by the enterprise during the year.
The debit side represents the net profit realized by the enterprise for the current year, that is, the balance of the income realized by the enterprise after deducting expenses, taxes and losses. The credit represents the net loss incurred by the business during the year, that is, the part of the loss, taxes and expenses incurred by the business that exceeds the revenue realized by the business.
Specifically, if the net profit realized by the enterprise for the current year is positive, the debit side records that amount; If the net loss incurred by the business during the year is negative, the credit records the amount. At the end of the period, the amount of all debits and credits is summarized, and the amount obtained by the borrower and borrower is the net profit or net loss of the enterprise for the current year.
The method of representing the credit side of the current year's profit is different from the accounting rules in the daily operation of the enterprise. In day-to-day operations, the debit side indicates an increase in assets and a decrease in liabilities, and the credit side indicates an increase in liabilities and a decrease in assets. However, in the current year's profit, the meaning of the borrower is based on the actual situation, and the main concern is the change in profit.
It is important to note that in actual accounting, the method of representing the borrower side of the current year's profit may be different. Therefore, the specific method of representing the borrower needs to be determined according to the accounting system and accounting standards adopted by the enterprise. At the same time, when preparing financial statements, it is also necessary to pay attention to the impact of the representation of the borrower on the financial statements to ensure the accuracy and reliability of the financial statements.