91 account - "Other income and expenses". Account 91: Postings

The analysis of the profit or loss received by the enterprise based on the results of the reporting period should be based on the structure of this indicator. This will provide an opportunity for further cost planning and stabilization of income values. Dynamics of the indicator, its composition can be analyzed on the basis of tax and accounting data of the enterprise.

The concept of income and expenditure organization

Each commercial enterprise is created with the purpose of reception of the income (economic gain). To obtain a more substantial amount of income, the owners choose the type of activity that, in their opinion, will ensure a stable and high level of profitability of the enterprise.
When forming the final result of the work based on the results of the current reporting (intermediate or basic period), each organization receives a loss or profit from the implementation of its core business. In case of excess of proceeds from the sale of goods, services over the amount invested in the production process, the enterprise has income for the analyzed period. If the costs of carrying out activities exceed the revenue received, then the enterprise receives a loss based on the results of the work . The definition of income and loss of the enterprise is not unique, with the help of accounting transactions, postings and primary documents, it is necessary to constantly analyze the structure of revenue and expenses. Both profit and loss are formed not only as a result of the main activity of the organization, there are a number of positions that affect the final economic outcome of a particular firm, an enterprise not in the direction chosen as the prevailing one. In accounting, management and tax accounting, these positions are reflected in the account "Other income and expenses" 91 and its sub-accounts.

Structure of the company's income

In accordance with the rules of PBU 9/99, enterprises are considered to increase the economic benefits of the organization in connection with the receipt of assets (cash, working capital and non-current assets) and the fulfillment of obligations that lead to an increase in capital (the exception is the investment of owners through authorized capital). The following incomes are not incomes:

• Advances from the buyer.
• Mortgaged property.
• The amounts of taxes received, subject to transfer from budgets of different levels (excises, VAT, duties, sales tax, etc.).

The incomes of each business enterprise can be divided into two enlarged types: other types and income from the core activity. Revenue from the sale of products (services) produced, services provided, works performed within the chosen direction, refers to the income from the main line of business (account 90), among others, the following types of income:

1. Operating (91 account):

• Realization of property.
• Interest on loans issued.
• Income from the lease of the OS.
• Participation in the authorized capital of the third organization, etc.

2. Non-sales (91 account):

• Inventory surpluses.
• Exchange rate differences, positive.
• Penalties received from counterparties.
• Overdue debts of the creditor organization (over 3 years).

3. The organization receives emergency incomes as a result of emergencies (insurance payments, realization of parts of property affected by a natural disaster, etc.).

Classification of expenses

The expenses of the enterprise are classified according to the requirements of PBU 10/99. As an expense, accounting is taken to decrease the economic indicator from the work of the organization due to the disposal of assets and the occurrence of situations associated with a decrease in capital. Depending on the type and nature of the occurrence, all expenses are divided into other expenses and received as a result of the implementation of the main line of business. Expenses related to the main line of activity arise when the costs for production, production of goods, in the process of providing services and work are formed. If the organization as a main line of work has chosen to lease out non-current assets, structures, machinery and equipment, then all expenses of this type are related to the basic production costs. Other expenses are subdivided:

1. Operating (91 account):

• Taxes transferred to various budgets.
• Fee for the use of borrowed (attracted) funds.
• Payment for banking services for keeping accounts and providing information on them.
• Acquisition of non-current assets, disposal of operating assets as a result of wear (physical or moral) or when the equipment fails (in case of impossibility of repair, modernization).

2. Non-sales (91 account):

• Penalties, penalties, fines under contracts with counterparties (in the event of breach of contractual obligations by the enterprise).
• Expenses for charity.
• Overdue accounts receivable (not repaid more than 3 years).
• Exchange rate differences are negative (in the presence of currency contracts).
• Lack of excess of the natural loss rate, detected by the results of the inventory (in the absence of the guilty person).

3. The company incurs extraordinary expenses as a result of natural disasters, man-made accidents, fires, etc.

Reflection in accounting

The accounting account 91 is designed to reflect in the accounting of the organization other, non-operating, operating expenses and revenues. The entire period preceding the annual report, other expenses and revenues of the organization are accumulated on the active-passive accounting 91 account, which in the chart of accounts (unified) accounting is called "Other income and expenses " . At the same time, the correspondence of account 91 depends on the expense and (or) income item, the analytical accounting should be carried out on the basis of the accounting policy of the organization for each item separately, this will greatly simplify the analysis of the indicator composition when evaluating the result of the work of the enterprise. To this account, the following sub-accounts are necessarily opened:

- 91/1 "Other income" - is intended to reflect all types (except extraordinary) of the enterprise's income not related to its primary business.

- 91/2 "Other expenses" - this sub-account reflects other, non-current, operating expenses.

- 91/9 "Balance of other income and expenses" - account 91 is closed through this sub-account.

Workflow under account 91

Postings for 91 accounts are made on the basis of well-formed primary documents, which are filled by the accounting department for each specific type of expense and income, respectively. The documents are as follows:

1. The accounting reference is applied at transfer in structure of incomes (operational, внереализационных, other) reserves of not used payments, calculation of deviations in cost accepted on the accounting ТМЦ, the sums of incomes of the future periods.
2. The invoice is used when calculating interest on loans, loans, income from participation in the warehouse (authorized capital) of the third enterprise, income from owning securities.
3. Inventory inventory, expenses and incomes on the basis of this document are posted to account 91 in correspondence with active accounts for the inventory accounting, finished goods, cost accounts of main and auxiliary productions.
4. The act of acceptance and transfer of the main non-current assets at write-off of the residual value of sold or written-off non-current assets.
5. The settlement depreciation schedule is used to write off the depreciation of the assets charged to the objects that are on lease.

Reflection on debit 91 accounts

The debits (account 91) of the posting are the following: the costs of maintaining and servicing the conserved items of property, disposals, write-offs of fixed assets, operations with containers, losses of previous periods discovered in the current year, overdue accounts receivable, penalties for non- Liabilities, exchange differences, fees for the use of loans, loans, loans, litigation costs, etc.

Correspondence of accounts

Reflection of information on credit account 91

Account 91, credit transactions are processed for the following types of business transactions: income from the sale of fixed assets, proceeds from gratuitous receipt of assets (negotiable and non-current), received penalties, forfeits under contracts with counterparties, exchange differences, dividends received from participation in other Partnerships, income from the provision of loans, loans, proceeds from the sale of intangible assets, innovative developments, the amount of overdue creditors, and so on.

Correspondence of possible accounts

The process of closing 91 accounts

For each reporting period, information on incomes and expenses of non-operating nature is collected on the loan and debit of 91 accounts. Before closing of each reporting period, the turnover of sub-accounts is summarized for all analytical items. The turnover (debit) of the subaccount 91/2 "expenses" and the turnover (credit) of the subaccount 91/1 "revenues" are compared, the turnover difference indicates the income or loss from other (not the main) activity was received by the organization for the current period. The received amount is the balance for the sub-account 91/9. Each month, 91/9 is transferred to the financial and economic result of the organization's work and should not be reflected in the annual balance sheet (it does not have an interim balance).

Closing 91 accounts, posting:

- Д-т 91/9 К-т 99. The subaccount of the balance (income) is closed.

- Д-т 99 К-т 91/9. Closed balance (loss).

The entry is made on the basis of the compiled accounting certificate, which reflects the process of closing the subaccounts of the account 91. At the same time, on open subaccounts, the turnover is accumulated consecutively, during all reporting interim periods (month, quarter, half-year).

Accounts (subaccounts) of the 91st are finally closed at the end of each year, when the balance sheet is being reformed, consistently following business transactions:

- Dr 91/1; К-т 91/9 Closing of the sub-account "Other income".

- Д-т 91/9; In correspondence with К-т 91/2 closing of the sub-account "Other expenses".

In the annual balance sheet account 91 and its sub-accounts should not be reflected, all turnover is closed on the financial result. When analyzing the revenues received for the analyzed period, non-operating and other revenues should be less than 5-6% of the total volume, in which case the profit of the enterprise has a clear structure and is derived from the main activity of the organization.