In a commercial organization, the main goal of the activity is to make a profit. Therefore, the owners are always interested in the value of the "retained earnings" indicator. This is the money that the company can divide between the founders or leave on the accounts of the organization for the purposes of its further development.
Instructions
Step 1
Usually, in the first years of the company's existence, retained earnings generated at the end of the year are sent to the reserve fund for further investment, payment of bonuses or the acquisition of property.
Step 2
If the organization is on the general chart of accounts, then you have access to accounting data for the last year. By the way, from January 1, 2013, the responsibility for accounting will be assigned to all companies, including those applying the simplified taxation system or paying a single tax on imputed income. So, the amount of retained earnings (that is, profit after paying income tax) is reflected on account 84. If the company recorded a loss, its value is reflected as a debit, while a positive result is shown as a loan.
Step 3
If during the year the organization carried out a revaluation of fixed assets (with the influence of such actions on the amount of additional capital), paid interim dividends or changed the authorized capital, then these changes should affect the final value of retained earnings. They must be added or subtracted, depending on whether it was a profitable or an expense transaction.
Step 4
Please note that the value of line 1370 of the balance sheet must coincide with line 2400 of the income statement. This rule works if during the year there was no distribution of dividends, which are reflected in the debit of account 84.
Step 5
Please note that the distribution of profits based on the results of the year is categorized as events that occurred after the reporting date. Therefore, in the reporting period for which the company distributes profits, no entries are made in accounting. Thus, the data on account 84 in the reporting year cannot contain information on the distribution of dividends at the end of this year, while they must reflect the operations on the decision to use the profit received at the end of the last year.
