99 account - "Profits and losses". Debit and credit account 99

Accounting accounts are designed to fix in them all monetary transactions. In this review, 99 "Profits and Losses" account will be considered in detail. The reader will learn about what functions it performs, can it have its own categories, how to work with it and close it. The information is accompanied by examples that help to reveal the topic better.

Purpose of account 99

Each company works for the sake of achieving the main goal - increasing profits. The financial result is the sum of all revenues from each type of activity. To sell goods or services, you will need to invest money, but as far as it turns out to be profitable in the reporting period, it becomes known after summarizing all information about cash costs and revenues. It is for this purpose that 99 accounts are intended, in which:

• Increase or decrease in income from the core business (D90 K99);
• The balance of other expenses and revenues for the reporting period (D91 K99);
• The impact of emergencies on economic activity (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 instruction, the account in question has no categories. The accountant can independently create them, taking into account the requirements of the enterprise (analysis, control, reporting). In this connection, 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 returns";
• 99/4 "Unexpected Costs";
• 99/5 "Profits tax";
• 99/6 "Tax contributions".

The last three sub-accounts can have a balance 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.

Correspondence on debit

99 the account can interact on a debit with different categories:

• "Fixed assets" (01).
• "Profitable investments in the MC" (03).
• "Devices for installation" (07).
• "Contributions to non-current assets" (08).
• "Materials" (10).
• "Animals in rearing and rearing" (11).
• "Change in the cost of MCs" (16).
• "VAT on purchased valuables" (19).
• "The main production" (20).
• "General production and general economic costs" (25, 26).
• "Defective products" (28).
• "Commodity production" (41).
• "Currency and settlement accounts" (52, 51).
• "Semi-finished products of own production" (21).
• "Cashier" (50).
• "Finished products" (43).
• "Auxiliary production" (23).
• "Shipped products" (45).
• "Service shops 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 on wages and other procedures" (69, 70, 73).
• "Retained earnings" (84).
• "Sales of products" (90).
• "Other income and expenses" (91).
• "Costs in future periods" (97).
• "Intraeconomic calculations" (79).
• "Financial transactions with creditors and debtors" (76).

What can be posting

The debit of account 99 reflects losses of the enterprise for various kinds of activity. Examples of business transactions can be found in the table.

Correspondence on the loan

Account 99 "Gains and Losses" interacts on a loan with the following categories:

• "Materials" (10).
• "Financial transactions with suppliers and contractors" (60).
• "Currency and settlement accounts" (52, 51).
• "Retained earnings" (84).
• "Realization of goods" (90).
• "Shortcomings and damage from damaged values" (94).
• "Reserves for future costs" (96).
• "Special accounts in banks" (55).
• "Intra-economic calculations" (79).
• "Financial transactions with creditors and debtors" (76).
• "Other expenses and revenues" (91).
• "Settlements with employees for various operations" (73).

Loan operations

The table below gives some examples that allow you to understand what kind of 99 credit posting records reflecting the company's profit (income) can have.

Features of the closure of the 99 profit and loss account

The result of the company's activity in monetary terms is reflected in the comparison of debit and credit turnover. In this regard, it is required to close certain accounting accounts (99, 90, 91). In the conditions of modern productions, it is very important to correctly determine and economically justify the procedure in question. For competent tasks, the specialist should follow a special rule. First of all, you should close 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).

Sequence of closing 99 accounts

The operation under consideration is carried out according to the following algorithm:

1. Closing account 90 "Sale of products." Comparing revenues and expenses from sales, you can generate a final result from the main activity of the company. At the end of the year, the debit reflects the actual cost of goods sold, including all costs. The amount of the sale is formed on the loan. The final value equals the difference between the credit balances and the debit of account 90 and 90/3 "VAT". If the debit balance is more than the credit balance, do the following posting: D99 K90 (loss), in the opposite case - D90 K99 (profit).
2. In account 91 , the same operations should be performed as in the first stage. If the financial results are negative, the posting of D91 K99 and D99 K91 is posted for positive ones.
3. Thus, the closing of the account 99 is done 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 an uncovered loss. Results are credited or debited to account 84.

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

Knowing all the distinctive features of the 99 Profit and Loss account, young specialists 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 legitimate activity of enterprises is impossible.