Future earnings. Deferred income - what is it? Application of the “Deferred Income” account

Deferred income is income received in the reporting period, but related to future reporting periods.

From this article you will learn:

1. What applies to deferred income?
2. How to organize accounting for future income
3. In what order should such amounts be inventoried?

Deferred income includes, for example, income from the rental of property, when the terms of the contract stipulate that rent is paid for a certain period in advance; subscription fee; revenue from passenger transportation on monthly and quarterly tickets; and so on.

In this article we will talk about accounting for future income.

Every accountant should know this!

Which account is used to record future income?

Account 98 “” is intended for information about future income. Sub-accounts can be opened for the account, depending on the types of receipts, according to the Instructions for the Chart of Accounts:

• “Income received for future periods”;
• “Gratuitous receipts”;
• “Upcoming debt receipts for shortfalls identified in previous years”;
• “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables, etc.”

Where are deferred income reflected in the balance sheet?

In the form of the balance sheet, a separate section is allocated for deferred income. line 1530. But only those receipts that are directly stipulated in regulatory documents should be included there.

Thus, deferred income includes budget funds received to finance expenses. As well as the unused balances of funds at the end of the reporting period, recorded in account 86 “Targeted financing”. Similarly, the amounts of received grants, technical assistance (assistance), etc. are taken into account.

In addition, included deferred income lessor companies can take into account the difference between the total amount of lease payments and the cost of the leased property, which is listed on the balance sheet of the lessee (clause 4 of the Directives, approved by order of the Ministry of Finance of Russia dated February 17, 1997 No. 15). Any other income is reflected in current income or accounts payable.

In general, the indicators on line 1530 “Deferred income” as of December 31 of the previous year and as of December 31 of the year preceding the previous year are transferred from the Balance Sheet for the previous year.

Postings for accrual and write-off of future income

Deferred income is reflected on the credit of account 98 in correspondence with the cash accounts or settlements with debtors and creditors. And the amounts of income are written off in the debit of account 98 upon the onset of the reporting period to which these incomes relate, in correspondence with the income account (account 90 or 91, depending on the type of income).

The subaccount “Gratuitous receipts” in correspondence with accounts 08 “Investments in non-current assets” and others reflects the market value of assets received free of charge, and in correspondence with account 86 “Targeted financing” - the amount of budget funds allocated by a commercial organization to finance expenses. The recorded amounts are written off to the credit of account 91 “Other income and expenses” for fixed assets received free of charge - as depreciation is calculated, for other material assets received free of charge - as they are written off to the accounts accounting for production costs (sales expenses).

On the credit of the sub-account “Upcoming debt receipts for shortfalls identified in previous years” in correspondence with account 94 “Shortages and losses from damage to valuables” reflect shortfalls of valuables identified in previous reporting periods (before the reporting year), found guilty by persons, or amounts awarded for recovery by the court. At the same time, account 94 is credited with these amounts in correspondence with account 73 “Settlements with personnel for other operations” by the subaccount “Settlements for compensation of material damage”. As the debt for shortfalls is repaid, account 73 “Settlements with personnel for other operations” is credited in correspondence with the cash accounts. At the same time, the amounts received are reflected in the credit of account 91 sub-account “Other expenses” (profits of previous years identified in the reporting year) and debit account 98 “Deferred income”.

On the credit of the subaccount “The difference between the amount to be recovered from the perpetrators and the cost of shortages of valuables” in correspondence with account 73 “Settlements with personnel for other operations”, the subaccount “Calculations for compensation of material damage” reflects the difference between the amount to be recovered from the perpetrators persons, and the cost of shortages of valuables. As the debt accepted for accounting in account 73 is repaid, the corresponding amounts of the difference are written off from account 98 to the credit of account 91 of the “Other expenses” subaccount.

For your convenience, we have listed the corresponding accounts in accordance with the Instructions for the Chart of Accounts below.

For example, as a rule, under the terms of the lease agreement, tenants pay rent in advance for an entire quarter or even six months. The payment cannot be considered in full as income for the reporting period when the rental payment was received. The received funds are divided into equal shares, and each share is recognized as income for the current reporting period on a monthly basis. In this situation, the amount of the received payment is initially credited to account 98 ". In this case, the accounting entry is drawn up:

DEBIT 51 Current accounts CREDIT 98 Deferred income.

This posting is made for the entire amount of the received payment; and then monthly in equal shares the received income of future periods is written off to the income of the current period by the following accounting entry:

DEBIT 98 Deferred income CREDIT 91 Other income and expenses.

A similar situation occurs when making expenses, when the expense is carried out in one period, but relates to several reporting periods. For example, payment for car insurance is carried out in one reporting period, and we receive car insurance services throughout the entire period of validity of the insurance policy.

Example. Accounting for deferred income in connection with a lease agreement

On February 18, 2015, Polet LLC entered into a lease agreement for premises with Uspeh LLC for a period of 120 days. The acceptance certificate for the premises was signed on March 1, 2015. In accordance with the terms of the agreement, the tenant is obliged to pay rent in advance for six months.

On February 28, 2015, funds in the amount of 24,000 rubles, including VAT (20% - 4,000 rubles), were transferred to the bank account of Polet LLC.

The following entries were made in the accounting records of Polet LLC:

upon receipt of payment

Debit 51 Credit 98-1

24,000 rub. - the receipt of rent is reflected;

Debit 98-1 Credit 68

4000.8 rub. (24,000 x 16.67%) - VAT is calculated on the advance received;

at the end of each month

Debit 98-1 Credit 90-1

4000 rub. (RUB 24,000: 6 months) - monthly rent is reflected as part of income from the sale of services;

Debit 90-3 Credit 68

RUB 666.67 (RUB 4,000 x 20%: 120%) - VAT is calculated on the monthly rent amount;

Debit 68 Credit 98-1

666.8 rub. (RUB 4,000 x 16.67%) - VAT has been restored in relation to the amount relating to the reporting month.

Example. Accounting for deferred income in connection with the gratuitous receipt of materials

Under the donation agreement, on January 10, 2015, Vector LLC received raw materials from the founder - granulated sugar in the amount of 1 ton, the market value of which was 12,000 rubles. In January, 500 kg of granulated sugar were written off for production, in February and March - 250 kg each.

In accordance with clause 8 of PBU 9/99, assets received free of charge are reflected in accounting as part of non-operating income. Property received free of charge is reflected in accounting at market value as of the date of capitalization, confirmed by documents or expert evidence.

When transferring raw materials, a Transfer and Acceptance Certificate dated January 10, 2015 was drawn up. When raw materials arrived at the warehouse of Vector LLC, a receipt order dated January 10, 2015 was issued.

The following entry was made in the accounting records:

Debit 10 Credit 98-2

12,000 rub. - posting of materials at market value.

As the specified property is used in its activities in the reporting period (when inventory (materials) are released into production), their value is recognized as non-operating income in accounting.

At the end of January 2015, based on reports from materially responsible persons, the amount of granulated sugar written off for production was determined.

In accounting, the write-off of materials is reflected as follows:

Debit 20 Credit 10

6000 rub. (12 rubles/kg x 500 kg) - raw materials are written off for production;

Debit 98-2 Credit 91-1

6000 rub. - raw materials received free of charge written off for production are recognized as non-operating income of the reporting period.

Similar transactions were made in February and March 2015 in the amount of 3,000 rubles. (12 RUR/kg x 250 kg).

Which line in the balance sheet shows deferred income?

In the form of the balance sheet, deferred income is allocated separate line 1530. Only those receipts that are directly stipulated in regulatory documents should be included there. Thus, deferred income includes budget funds received to finance expenses. As well as the unused balances of funds at the end of the reporting period, recorded in account 86 “Targeted financing”. Similarly, the amounts of received grants, technical assistance (assistance), etc. are taken into account. In addition, as part of deferred income, lessor companies can take into account the difference between the total amount of lease payments and the cost of the leased property, which is listed on the balance sheet of the lessee (clause 4 of the Instructions , approved by order of the Ministry of Finance of Russia dated February 17, 1997 No. 15). Any other income is reflected in current income or accounts payable.

How to take inventory of deferred income

In order for the accounting of future income to be reliable, an inventory of the relevant amounts is carried out. When taking inventory, you need to check whether income is correctly allocated to the appropriate accounts. And check whether the amounts correspond to the primary documentation, and whether they are reflected in accordance with the company’s accounting policies.

In the balance sheet, in the section intended to reflect information about the organization’s obligations, there is an article “deferred income”. Moreover, there is no definition of the concept “” in domestic regulatory documents, only the Instructions for the application of the financial and economic activities of an organization, approved by Order of the Ministry of Finance of Russia dated October 31, 2000 N 94n (hereinafter referred to as the Instructions for the application of the chart of accounts), characterizes account 98 “Future income periods".
So, in accordance with the Instructions for the use of the Chart of Accounts account 98 “Deferred income” is intended to summarize information:
- about income received (accrued) in the reporting period, but relating to future reporting periods;
- about upcoming receipts of debt for shortfalls identified in the reporting period for previous years;
- about the differences between the amount to be recovered from the guilty parties and the value of the valuables accepted for accounting when shortages and damage are identified.
For this purpose, the Chart of Accounts provides for the opening of the following subaccounts to account 98 “Deferred Income”:
98-1 "Income received for future periods";
98-2 "Gratuitous receipts";
98-3 “Upcoming debt receipts for shortfalls identified in previous years”;
98-4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”, etc.

Income received for deferred periods

On subaccount 98-1 "Income received for future periods" the movement of income received in the reporting period, but relating to future reporting periods, is taken into account: rent or apartment payments, utility bills, revenue for freight transportation, for the transportation of passengers on monthly and quarterly tickets, subscription fees for the use of communications equipment, etc. The credit of account 98 “Deferred income” in correspondence with the accounts for cash or settlements with debtors and creditors reflects the amounts of income related to future reporting periods, and the debit - the amounts of income transferred to the corresponding accounts upon the onset of the reporting period for which these incomes are included.
Let's analyze these facts of economic activity. For example, an organization has received cash or other funds from individuals or legal entities against the upcoming delivery of products, goods, works (services) in the future. In our opinion, in this case there are all the signs of recognition of accounts payable to the recipient of funds. However, it should be noted that travel tickets are usually not refundable. Thus, the organization will definitely provide this service, and the amounts received will become income in the following reporting periods. Commenting on this type of service as rent, it should be noted that the lease agreement can be terminated and the lessor will be forced to return these funds back. Therefore, based on the principle of conservatism, these amounts cannot now be recognized as income. The presence of intermediate categories is by no means a means of promoting greater understanding of financial reporting indicators. At the same time, it should be noted that an accounting account is a way of summarizing accounting data on types of property, liabilities and business transactions according to certain economic characteristics. Professor Ya.V. Sokolov notes that “any fact of economic life must be qualified in the terms of the adopted chart of accounts. By choosing a chart of accounts, the accountant predetermines the order of accounting records. This is possible due to the fact that the current Chart of Accounts is not registered with the Ministry of Justice of Russia and, therefore, is advisory in nature, but this does not mean that for the sake of a falsely understood freedom and unnecessarily, every accountant should draw up his own plan.” The attention of the magazine's readers should also be drawn to the fact that the legislator proposes to reflect this information on the "Deferred Income" account; at the same time, in the Accounting Regulations “Accounting Statements of an Organization” PBU 4/99, approved by Order of the Ministry of Finance of Russia dated 07/06/1999 N 43n, for the purposes of the balance sheet this information is classified as liabilities (in the section “Short-term liabilities”). In this case, it would be appropriate to recall the statement of the German accountant E. Schmalenbach (1873 - 1955), who defined all liabilities as income that has not yet become expenses.
Accounting provisions belong to the second level of the regulatory system, and the Chart of Accounts and Instructions for its application belong to the third. Therefore, in some cases, an organization can use one or another account to reflect individual transactions, but the reflection of these transactions in the financial statements of the organization is based on other requirements.

Value of assets received free of charge

On subaccount 98-2 "Free receipts" The value of assets received by the organization free of charge is taken into account. In the credit of account 98 “Deferred income”, in correspondence with account 08 “Investments in non-current assets” and other accounts, the market value of assets received free of charge is reflected, and in correspondence with account 86 “Targeted financing” - the amount of budget funds allocated by a commercial organization for financing expenses. Amounts recorded on account 98 “Deferred income” are written off from this account to the credit of account 91 “Other income and expenses”:
- for fixed assets received free of charge - as depreciation is calculated;
- for other material assets received free of charge - as production costs (sales costs) are written off to accounts.
The theory and practice of accounting is based on the principle of correspondence, the essence of which is that income must correspond to the expenses through which they (income) were received. Meanwhile, Professor Ya.V. Sokolov notes that from time immemorial, gratuitous receipts have been attributed to the profit of the reporting period when this gift was received and, naturally, this was considered the profit of that reporting period. True, there were accountants who said that the balance sheet asset reflected the actually invested capital, and the funds received “for free” were assessed pro memoria - for memory and were valued at 1 ruble. But recently, notes Ya.V. Sokolov, the desire for theoretical purity has led to the fact that the market value of an object received free of charge is included in future income. Thus, the gift is recognized as income, but because the gift will generate income over several years, the income from it is spread out over those several years, understating the income accountants report.
It should be noted that there is another way to receive property free of charge to the organization - surplus property identified during the inventory. In this case, this property is valued at market value. At the same time, in the Instructions for using the Chart of Accounts, the value of this property is not classified as deferred income. In Art. 12 of the Federal Law of November 21, 1996 N 129-FZ “On Accounting”, in relation to the reflection of information on the value of surpluses, it is stated that “excess property is accounted for, and the corresponding amount is credited to the financial results of the organization, and for a budgetary organization - to increase financing (funds) )". Thus, this amount is immediately recognized as other income. We believe that there are no fundamental differences between these operations. In both cases, the property is received free of charge; the legislator also established the same method of valuation for this property - market value. Therefore, there is every reason to reflect these transactions uniformly in accounting.
We consider it necessary to agree with the opinion of Ya.V. Sokolov that theoretically it would be more correct to admit that depreciation is not charged for fixed assets received free of charge. In this case, the cost of finished products does not include depreciation. This emphasizes that depreciation can be considered a transfer of previously incurred expenses, and not a fund for the renewal (renovation) of fixed assets.

Upcoming debt receipts for shortfalls identified in previous years

On subaccount 98-3 "Upcoming debt receipts for shortfalls identified in previous years" the movement of upcoming debt receipts for shortfalls identified in the reporting period for previous years is taken into account. The credit of account 98 “Deferred income” in correspondence with account 94 “Shortages and losses from damage to valuables” reflects the amounts of shortages of valuables identified in previous reporting periods (before the reporting year), found guilty by persons, or the amounts awarded for collection on them court. At the same time, account 94 “Shortages and losses from damage to valuables” is credited with these amounts in correspondence with account 73 “Settlements with personnel for other operations” (sub-account “Settlements for compensation of material damage”). As the debt for shortfalls is repaid, account 73 “Settlements with personnel for other operations” is credited in correspondence with the cash accounts while simultaneously reflecting the received amounts on the credit of account 91 “Other income and expenses” (profits of previous years identified in the reporting year) and debit account 98 “Deferred income”.
I'M IN. Sokolov noted that “accountants at first did not see the problem, then they “woke up from their sleep” and began to pull everything that was possible under this category. At first these were “gifts”, then even past losses were included here.”

The activities of any enterprise are carried out with the aim of making profit. However, income may be current or relate to the future - to periods that have not yet occurred. The order of reflection of the latter has its own specifics. Let us further consider in detail how the organization’s income is recorded for the coming years.

In which account are revenues for the coming years reflected?

Accounting for future income is carried out on account 98. Such funds include accrued (received) payments in the reporting year, but relating to the future (years that have not yet come). This account also reflects the expected receipts of debt for shortfalls that were identified in the current period, but occurred in the past. On the account 98 summarizes information about the difference formed between the amount of recovery from the perpetrators and the cost of material assets that were taken into account in the event of damage (shortcoming).

Types of income

Deferred income may include:

• Rental payment received.
• Revenue from passenger transportation based on quarterly tickets.
• Payment of utilities and so on.

It is necessary to distinguish deferred income from advances. The latter are received by the enterprise for work or goods, the time of provision (delivery) of which is clearly defined. When the due date arrives, the advance payment is offset. Future income received is repaid virtually continuously. Receipts are recognized as such in the part of the period to which they relate.

Subaccounts

Their purpose depends on the category of funds received by the enterprise. So, to the account. 98 sub-accounts can be opened:

Let's look at the features of postings for each subaccount.

Profit received for future years

According to subaccount. 98.1 records the movement of revenues that were received in the reporting year, but relate to upcoming periods. They include, in particular, rent or apartment payments, utility bills, revenue for passenger and freight transportation on quarterly/monthly tickets, subscription fees for the use of communications equipment, and so on. According to Kd sch. 98 “Deferred income” reflects amounts related to upcoming years in correspondence with accounts recording cash or settlements with creditors and debtors. According to DB, payments are made, transferred upon the onset of the reporting year to which they relate, to the appropriate accounts. Analytical accounting is carried out for each type of income.

Free funds

Subaccount 98.2 records the value of assets that were received by the enterprise without payment. According to Kd sch. 98 reflects the market price of these funds in correspondence with the accounts “Investments in non-current funds” and others, and the budget amount allocated by the enterprise to finance costs is with the account. 86. Write-off is carried out in the CD of account 91, which records other receipts and expenses:

Analytical reporting is carried out for each receipt.

Deferred income from shortages

Correspondence with the account for losses due to damage to valuables (account 94) reflects the amount identified for previous reporting years (before the current one) or imposed for recovery from the guilty persons by court order. At the same time, the account is credited for these amounts. 94 in correspondence with account. 73, recording settlements with personnel for other operations (sub-account for compensation for material damage). As the debt is repaid, the amounts pass through the CD account. 73. The movement of payments is carried out in correspondence with cash accounts. At the same time, the amounts received are reflected according to the CD account. 91 and db sch. 98.

Accounting for the difference

It is carried out under subaccount 98.4. Here the difference is recorded between the amounts that must be recovered from those responsible for missing or damaged material and other assets and their value recorded in the accounting of the enterprise. According to Kd sch. 98 in correspondence with account. 73 reflect the indicated indicator. In the process of repaying the debt that was accepted on the account for settlements with personnel for other transactions, the corresponding amounts of the difference are written off from the account. 98 in CD count. 91, recording other income and expenses.

Conclusion

The above material describes the procedure for accounting for deferred income in four subaccounts. Depending on the specifics of the enterprise’s activities and the nature of the funds received, there may be more or less. In any case, the movement of payments and the summarization of the information received on income for the coming periods is carried out according to the account. 98. Correspondence of accounts in postings should not cause any particular difficulties. When taking into account the difference between the amounts for compensation for damage caused and the cost of material assets, it is necessary to carry out a reconciliation against the primary documentation. It reflects the cost at which damaged or missing objects were accepted into the enterprise.

• Purpose of the article: displaying information about income recorded this year, but relating to a future period, as well as information about the balance of funds received from budget targeted funding.
• Line in the balance sheet: 1530.
• Account numbers included in the line: credit balance of account. 98 and the balance in the account credit.

Deferred income in the accounting department of an enterprise means amounts received and accrued in the company’s accounting records in the current reporting year, but these receipts relate to future periods. These amounts include:

• payment of rent (for example, when renting out your own production premises, offices, etc.);
• transfer of utility bills;
• payment for communication services under subscription agreements;
• revenue received for freight transportation, etc.

Something to keep in mind! Receipt of advance payments from the buyer is not included in deferred income and is shown on account 62.

In addition to the listed deferred income, line 1530 of the balance sheet includes the following data:

1. Incoming funds from budget targeted financing.

   Government targeted funding can be used to invest capital costs (for example, modernization of the production process and purchase of the latest technological equipment) or cover current costs (salaries of employees, purchase of materials, etc.). When investing capital expenditures, the target money is taken into account as part of deferred income when these assets are put into operation at the enterprise.

   Investment of current payments - finances are displayed on the account. 98 at the time of accepting purchased materials for accounting, calculating employee wages, etc.

2. Fixed assets, equipment received by the organization free of charge (a separate sub-account is opened in the company's accounting records, corresponding to the account for the equipment received). Accrued depreciation is written off to the financial result of the company in Kt.
3. For leasing transactions, line 1530 displays the difference that arises between the total amount of payments transferred under the agreement and the full cost of the property - the object of the leasing agreement.

According to the Chart of Accounts, accounting for future income is carried out on account 98: the credit of the account records information about accrued income in correspondence with source accounts (for example, Dt08 Kt98, DT86 Kt98, etc.). When a period occurs in which these receipts can be classified as income, the amounts are written off from the debit of account 98 as income from ordinary activities or other income.

Line 1530 of the balance sheet of the financial statements refers to the Short-term liabilities section of the balance sheet: the amounts of the credit balance of account 98 and unused funds of budgetary targeted financing from the account loan are displayed here. 86 as of December 31 of the current year, the previous year and the one preceding the previous one.

Regulatory regulation

Using the account 98 to collect information about incoming income related to the future is carried out in accordance with the Chart of Accounts and other regulatory documentation, for example, PBU 13/2000, which reveals the specifics of accounting for state aid.

Practical examples on accounting for deferred income

Example 1

In November 2017, the limited liability company Topor received a production machine free of charge from a regular buyer. The market value of this equipment is 400 thousand rubles.

Business transactions in company accounting

400 thousand rubles - capitalization of property received free of charge (the machine is placed on the receipt in the company's accounting at its market value).

400 thousand rubles - putting the resulting machine into operation.

As the machine is used, depreciation will be charged on it: Dt20 (44) Kt02. Its cost will be gradually written off from account 98 to the amount of accrued depreciation: Dt98.2 Kt91.1.

Line 1530 of the balance sheet of the limited liability company Topor, based on the results of 2017, will display the cost of the property received free of charge, minus the depreciation accrued on it.

In the process of operating an organization, income may arise that was received in the reporting period but relates to future periods.

To account for such income, passive account 98 “Deferred income” is used.

The presence and use of this account is associated with the use matching method(matching rule). The content of this method involves assigning facts of economic life to the reporting period (and, therefore, is reflected in accounting) in which they took place, regardless of the actual time of receipt. In other words, in accordance with international accounting standards, income is recognized not according to the reporting period in which it arose, but according to the reporting period to which these income relate.

Account 98 “Deferred income” is intended to summarize information:

about income received (accrued) in the reporting period, but relating to future reporting periods;

about upcoming receipts of debt for shortfalls identified in the reporting period for previous years;

about the difference between the amount to be recovered from the guilty persons;

on the value of valuables accepted for accounting when shortages and damage are identified.

Sub-accounts can be opened to account 98 “Deferred income”:

98-1 “Income received for future periods”;

98-2 “Gratuitous receipts”;

98-3 “Upcoming debt receipts for shortfalls identified in previous years”;

98-4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables”, etc.

Synthetic accounting of future income is maintained in journal order No. 15. Analytical accounting for account 98 is carried out by:

for subaccount 1 – for each type of income;

for subaccount 2 - for each gratuitous receipt of valuables;

for subaccount 3 - for each type of shortage;

for subaccount 4 - by type of missing values.

On subaccount 98-1 “Income received for future periods” the movement of income received in the reporting period, but relating to future reporting periods, is taken into account: rent or apartment payments, utility bills, revenue for freight transportation, for the transportation of passengers on monthly and quarterly tickets, subscription fees for the use of communications equipment, etc.

The amounts of income received or accrued reflect

Kt 50,51,52,55,76– Dt 98-1

When the reporting period begins:

Dt 98-1 – Kt 90.91

Examples.

1. Various payments have been received against deferred income (rent received in advance, utility bills, rent, etc.)

Dt 50,51,52,55 – Kt 98-1

2. Various payments have been accrued against deferred income

Dt 76 – Kt 98-1

3. A portion of future income is written off (at the onset of the period to which they relate) to increase income from ordinary activities.

Dt 98-1 – Kt 90-1

4. The same, but for types of activities not related to the usual activities of the organization.

Dt 98-1 – Kt 91-1.

On subaccount 98-2 “Free receipts” The value of assets received by the organization free of charge is taken into account.

On the credit of account 98 (subaccount 2) in correspondence with account 08 “Investments in non-current assets” and others, the market value of assets received free of charge is reflected. It should be borne in mind that the amount of the value of gratuitously received assets is included in the gross taxable profit not immediately upon receipt, but gradually as they are used. Therefore, the amounts recorded in account 98 (subaccount 2) are written off from this account to the credit of account 91 “Other income and expenses” (subaccount 1) in the following order:

For fixed assets received free of charge - as depreciation is calculated;

For other material assets received free of charge, as production costs (selling expenses) are written off to accounts.

Examples.

Fixed assets were received free of charge (market value is reflected).

Dt 08 – Kt 98-2

2. The cost of fixed assets is written off as they accrue

depreciation.

Dt 98-2 – Kt 91-2.

Current assets were received free of charge.

Dt 10,15,41 – Kt 98-2

The value of current assets received free of charge is written off as they are used in production and trading activities.

Dt 98-2 – Kt 91-1.

On subaccount 98-3 “Upcoming debt receipts for shortfalls identified in previous years” the movement of upcoming debt receipts for shortfalls identified in the reporting period for previous years is taken into account. The credit of account 98, subaccount 3, reflects the amounts of shortages of valuables identified in previous reporting periods (before the reporting year), found guilty by persons, or the amounts awarded for recovery by the court in correspondence with account 94. Simultaneously Account 94 is credited for these amounts in correspondence with account 73 (subaccount 2).

As the debt for shortfalls is repaid, account 73, subaccount 2 is credited, and cash accounts are debited (accounts 50, 51, 52) with simultaneous reflection of amounts received on the credit of account 91

(subaccount 1) and the debit of account 98 (subaccount 3).

Examples.

The shortage of valuables identified in the reporting year, but relating to previous reporting periods, is reflected.

Dt 94 – Kt 98-3

The amount of the shortage of valuables is attributed to the perpetrators.

Dt 73-2 – Kt 94

Cash was received to repay the debt for the shortage of valuables for previous reporting periods.

Dt 50,51,52 – Kt 73-2

The received amount of debt for the shortfall for previous reporting periods was written off to increase income from activities not related to ordinary ones.

Dt 98-3 – 91-1.

On subaccount 98-4 “The difference between the amount to be recovered from the guilty parties and the book value for shortages of valuables” the difference between the amount recovered from the guilty persons for missing material and other valuables and the cost listed in the organization’s accounting records is taken into account.

The identified difference is reflected on the credit of account 98, subaccount 4, and the debit of account 73, subaccount 2. As the debt recorded on account 73 is repaid, the corresponding amounts of the difference are written off from account 98, subaccount 4 to the credit of account 91, subaccount 1.

Examples.

The difference between the amount to be recovered from the guilty parties and the cost listed in the accounting records is reflected.

Dt 73-2 – Kt 98-4

The difference amount is written off as the debt is repaid.

Dt 98-4 – Kt 91-1.

Conclusion: The final financial result consists of the financial result from ordinary activities, other income and expenses, and extraordinary ones. Account No. 99 “Profits and losses” is intended for accounting of financial results. The remaining profit (loss) at the end of the year is written off to account No. 84 “Retained earnings (uncovered loss)”

The distribution of profit received is carried out on the basis of a decision of the general meeting of shareholders in a joint-stock company, a meeting of participants in a limited liability company or another competent body when using active-passive account 84 “Retained earnings (uncovered loss)”.

In the process of operating an organization, income may arise that was received in the reporting period but relates to future periods. To account for such income, passive account 98 “Deferred income” is used.