Expenses in accounting is a decrease in profit through the disposal of assets of the organization, for example, cash or the appearance of any liabilities to other organizations.
Instructions
Step 1
The costs associated with the production of products are divided into direct and indirect. Direct costs are, for example, the wages of personnel directly involved in the production of products, the purchase of material for the production of products. Indirect costs are recognized: the salary of the administrative and management department, other costs that do not affect the production of products, for example, office supplies.
Step 2
Indirect costs are reflected on account 25 "general production costs" or on account 26 "general business expenses". At the end of the month, the expenses recorded on account 25 are summed up and written off by posting: D20 "main production" K25.
Step 3
They also do the same with expenses that are reflected on account 26, only they are credited from account 26. You can also write off from account 26 to debit 90 "sales".
Step 4
After moving the finished product to the warehouse, the accountant must reflect this by posting D43 "finished goods" or 40 "output" K20.
Step 5
After the sale of the product, a record is made: D90.2 "cost of sales", K43 "finished goods".
From the above, it follows that the amount of expenses can be viewed by opening the balance on account 90.
