Net profit is a portion of the balance sheet profit remaining at the disposal of the enterprise after taxes and other mandatory payments. Its volume depends on the amount of the organization's revenue, the cost of production, non-operating and operating income and expenses.
Instructions
Step 1
Remember that in accounting, the net profit is reflected in account 99 "Profit and Loss" and is the final financial result of the enterprise. Net profit is defined as the sum of profit (loss) from sales and profit (loss) from other activities minus income tax and penalties and fines for violation of tax legislation, if any.
Step 2
Net profit is formed from the balance sheet profit, which you can calculate as the sum of profit from the sale of products (works, services), profit from other operations, as well as the difference between income and expenses from non-sales activities.
Step 3
Profits from sales make up the majority of the balance sheet profit. It is defined as the difference between the proceeds from the sale of products and their full cost. Sales profit does not include VAT. If the cost exceeds the value of products sold, then the enterprise has a loss. Please note that the proceeds from the sale of products include the amounts received in payment for products, works, services to bank accounts and to the organization's cash desk. The cost of a product is the cost of producing and selling it. This includes the cost of raw materials, labor costs for workers, rent, management, maintenance and repairs.
Step 4
Profit from other sales is the balance of income and expenses from the sale of products of service, auxiliary and auxiliary industries that are not included in the volume of sales of products from core activities. In addition, this includes financial results from the sale of surplus material values.
Step 5
From the balance sheet profit, you can form a net profit. It is calculated as the difference between the balance sheet profit subject to taxation and the amount of taxes, taking into account the benefits due to the enterprise. Net profit remains at the disposal of the enterprise and can be used to increase its assets, pay dividends or reinvestment.
