99 account - "Profit and loss". Debit and Credit Account 99

Accounting accounts are designed to record all cash transactions in them. This review will examine in detail the 99 account “Profit and Loss”. The reader will learn about what functions he performs, whether he can have his own categories, how to work with and close him. The information is accompanied by examples that help to better reveal the topic.

Purpose of account 99

Each company works to achieve the main goal - increasing profits. Financial result - the sum of all income from each type of activity. For the sale of goods or services, you will need to invest money, but how much it will turn out to be profitable in the reporting period will become known after summarizing all the information about cash costs and receipts. It is for this that the 99 account is intended, in which:

• increase or decrease in income from the main activity (D90 K99);
• the balance of other expenses and income for the reporting period (D91 K99);
• the impact of emergency situations on economic activities (force majeure, accidents);
• accrual of amounts intended for the calculation of taxes (interaction with account 68).

Is it possible to open new sub-accounts?

According to the instructions, the account in question has no categories. An accountant can independently create them, taking into account the requirements of the enterprise (analysis, control, reporting). In this regard, for example, such a system can be introduced:

• 99/1 “Profit or loss from the sale of goods”;
• 99/2 "Balances of various income (expenses)";
• 99/3 "Unexpected income";
• 99/4 "Unexpected expenses";
• 99/5 “Income tax”;
• 99/6 “Tax contributions”.

The last three sub-accounts may have balances in debit and credit. You can also open the category 99/9 “Net profit or loss”, which will show the amount of received income (deductions) for the reporting period.

Debit Correspondence

99 accounts can interact with debit with different categories:

• “Fixed assets” (01).
• “Profitable investments in MC” (03).
• “Devices for installation” (07).
• “Contributions to non-current assets” (08).
• “Materials” (10).
• "Animals on the cultivation and feeding" (11).
• “Change in the value of the MC” (16).
• “VAT on acquired values” (19).
• “Main production” (20).
• “General production and general business expenses” (25, 26).
• “Defective products” (28).
• “Commodity production” (41).
• “Foreign currency and settlement accounts” (52, 51).
• "Semi-finished products of their own manufacture" (21).
• “Cashier” (50).
• “Finished products” (43).
• "Auxiliary production" (23).
• “Shipped products” (45).
• “Serving workshops and farms” (29).
• “Costs for the sale of goods” (44).
• “Cash investments” (58).
• “Settlements with the state budget and social insurance (security)” (68, 69).
• “Financial transactions with accountable persons, as well as employees for remuneration and other procedures” (69, 70, 73).
• “Retained earnings” (84).
• “Sales of products” (90).
• “Other income and expenses” (91).
• “Future Costs” (97).
• “On-house settlements” (79).
• “Financial transactions with creditors and debtors” (76).
  

What may be the wiring

The debit of account 99 reflects the losses of the enterprise for various activities. Examples of business operations can be seen in the table.

Credit Correspondence

Account 99 “Profit and loss” interacts on a loan with the following categories:

• “Materials” (10).
• “Financial transactions with suppliers and contractors” (60).
• “Foreign currency and settlement accounts” (52, 51).
• “Retained earnings” (84).
• “Sales of goods” (90).
• “Gaps and damage from damaged values” (94).
• Reserves for future costs (96).
• “Special accounts with banks” (55).
• “On-farm computing” (79).
• “Financial transactions with creditors and debtors” (76).
• “Other expenses and income” (91).
• “Settlements with employees for various operations” (73).

Loan operations

The table shows some examples that allow you to understand which 99 account postings on a loan reflecting the company's profit (income) can have.

Features of closing 99 profit and loss account

The result of the company's activities in monetary terms is reflected when comparing debit and credit turnover. In this regard, it is required to close some accounting accounts (99, 90, 91). In the conditions of modern production it is very important to correctly determine and economically substantiate the procedure under consideration. For the competent performance of tasks, a specialist should be guided by a special rule. First of all, you should close the accounts of industries and companies with the largest number of customers receiving the least amount of counter services, and in the opposite situation - the last (maximum services and minimum buyers).

Account closing sequence 99

The operation in question is carried out according to this algorithm:

1. Closure of account 90 “Product sales”. Comparing income and expenses from sales, it is possible to form the final result from the core business of the company. At the end of the year, the debit reflects the actual cost of goods sold, taking into account all costs. The loan forms the amount of sales. The final value is equal to the difference between the balance of the loan and the debit of account 90 and 90/3 “VAT”. If the debit balance is greater than the credit, make the following posting: D99 K90 (loss), otherwise - D90 K99 (profit).
2. Account 91 should carry out the same operations as in the first stage. For negative financial results, D91 K99 and D99 K91 are posted with positive.
3. Thus, closing 99 accounts is the last. The result, which was formed when comparing the debit and credit balances of accounts 90 and 91, is retained earnings remaining at the disposal of the organization, or uncovered loss. The totals are recorded on credit or debit of account 84.

The final completion of the procedure is carried out by gradually folding distribution and expenditure accounts. This allows you to create a preliminary working balance reflecting the real financial situation of the organization.

Knowing all the distinguishing features that the 99 Profit and Loss account has, young professionals will be able to understand all the features of accounting. Do not forget about the PBU, as well as reference and legal systems, without which the legal activity of enterprises is impossible.