Accounting for income and expenses from the non-operating and operating categories is carried out on special account 91, to which subaccounts are often opened. Sub-account 91-1 “Other income” is intended for the bookkeeping of non-operating and operating income. Sub-account 91-2 “Other expenses” is required to account for expenses of an operational and non-operating nature. Sub-account 91-9 is needed to identify the difference between other income and expenses for the previous period.
Accounting for other expenses
Entries for these sub-accounts are made cumulatively for the entire reporting year. At the end of the month, it is customary to determine the balance for the reporting month. The balance is monthly described in a special subaccount. When the reporting year ends, all subaccounts that are open to account 91, except for the balance subaccount, are closed by entries in subaccount 91-9.
For sub-account 91-1 on his loan are reflected:
- revenues associated with the provision for intermittent use of company assets for a fee;
- income related to the granting of rights arising from patents for industrial images, inventions, and other types of intellectual property for a fee;
- revenues associated with other organizations in participation in the authorized capital;
- income related to sales and other write-offs of fixed assets, as well as other assets that are different from products, cash, goods;
- interest associated with the receipt of profit for the provision of financial assets of the organization for use, as well as interest for the use of funds by the bank in the account in which the funds of the organization are located.
Other operating expenses are recorded at debit 91-2:
- the costs associated with the provision for intermittent use of the assets of the company for some fee;
- expenses for granting rights related to patents for industrial designs, various inventions, as well as other types of intellectual property for a fee;
- expenses associated with the participation of other organizations in the authorized capital;
- expenses associated with the disposal, sale, as well as other write-offs of funds and assets other than goods, financial assets and products;
- the residual value of the assets, interest paid by the organization, expenses associated with the payment of services, estimated reserves and deductions.
other expenses
Accounting Regulation 10/99 governs operating expenses. It takes into account the costs of the direct activities of the company, in addition to those that make up the cost of production that has already been sold. Operating expenses are those associated with the following:
- participation of other companies in the authorized capital;
- the provision of the company’s assets for temporary use;
- disposal, write-off of goods or fixed assets;
- deductions to specialized valuation reserves;
- repayment on loans and credits;
- deductions to reserves.
Other expenses are related to the Tax Code. It is customary to include the amounts of fees and taxes that are credited to the financial results of the functioning of the company.
Operating expenses include expenses on the sale of funds. It is customary to include the residual value, packaging costs, transportation, and others. Operating expenses from write-offs should be reflected in the reporting period with which they are associated.
Information about the costs of any institution should be disclosed in the accounting documentation. The profit and loss statement of the company contains expenses divided by the cost of goods, products, services, work, administrative and commercial expenses, non-operating and operating expenses, as well as extraordinary, if any. All this belongs to the category “Other expenses”.