Formation accounting. Formation of accounting. Historical stages of accounting development
17. Accounting: goals and objectives. Organization of accounting at the enterprise.
Accounting is an orderly system for collecting, registering and summarizing information about the assets, liabilities, income and expenses of an organization and their changes in value terms. By the way, this system is formed through a continuous, continuous, documentary reflection of all business transactions.
Purpose of Accounting- formation of timely, high-quality information about the financial and economic activities of the enterprise, necessary for the management and establishment of a market economy, for the preparation, justification and adoption of management decisions at various levels, for determining the behavior of the enterprise in the market and identifying the position of competing enterprises, etc.
Main tasks of accounting:
formation of complete and reliable information about economic and financial processes, results of the organization’s activities;
control over the availability and movement of property, the use of material and raw materials, fuel and energy, labor and financial resources in accordance with the current laws of the Russian Federation, norms and regulations approved by organizations;
control over the formation and use1 of sources to create the organization’s property;
identifying reserves for increasing the efficiency of the organization’s economic and financial activities;
preparing data to produce reliable financial statements used by investors, lenders, suppliers, customers, tax authorities and other interested parties;
formation of the actual cost of manufactured products (works, services);
determination of the financial results of the organization.
Organization of accounting at the enterprise
Accounting is mandatory for any enterprise, regardless of its organizational and legal form and field of activity. The basic rules for organizing and maintaining accounting records are the same for all enterprises.
Accounting is governed by laws, regulations and accounting regulations. But the rules established by legislative documents imply a variety of accounting decisions. Therefore, each enterprise, in accordance with the specifics of its activities, has the right to choose those options that will ensure its most efficient operation.
Issues such as organization, form and technique of accounting are decided by the enterprise independently. Responsibility for organizing accounting at the enterprise and compliance with the law when carrying out business operations lies with the heads of organizations.
The Federal Law “On Accounting” dated November 21, 1996 No. 129-FZ stipulates that, depending on the volume of accounting work, accounting at an enterprise can be carried out:
accounting as an independent department;
an accountant on the staff of the enterprise;
special centralized accounting department serving several enterprises;
an accountant working under a contract;
the head of the enterprise personally.
In large enterprises, accounting is divided into several departments, for example, accounting, material, production, finished products, capital investment accounting, etc.
The settlement group carries out all calculations for wages and deductions from them, and also monitors the use of the wage fund, and keeps records of calculations for the unified social tax.
The material group keeps records of the acquisition of material assets, settlements with suppliers, storage of materials and their write-off for production. At small enterprises, the material group keeps records of the receipt of fixed assets, intangible assets and finished products; at large enterprises, special groups are created for these purposes.
The production group keeps track of costs for all types of production, calculating the cost of manufactured products, as well as accounting for the costs of work in progress.
At large enterprises, a financial group is allocated, whose employees keep track of funds and settlements of the enterprise with other legal entities and individuals.
The accounting department of an enterprise ensures the processing of documents, the rational maintenance of accounting records in accounting registers and the preparation of reports based on them. The accounting department interacts with all departments of the enterprise, receives all the necessary information for accounting and reporting.
The chief accountant, together with the head of the organization, signs documents that serve as the basis for the acceptance and issuance of inventory and cash, as well as documents related to settlement, credit and monetary obligations. The specified documents without the signature of the chief accountant are considered invalid and will not be accepted for execution.
The accountant is prohibited from accepting for execution documents on transactions that contradict the law and violate contractual and financial discipline. The accountant notifies the head of the organization in writing about such documents. Upon receipt of a written order from the manager to accept the specified documents for accounting, the accountant executes it, but the head of the organization bears full responsibility for the illegality of the transactions performed.
Historical stages of accounting development
to form the outlook of an accountant as a specialist.
The history of science (from the Greek ictoria - narrative, story about what has been learned, researched) is a reflection of the centuries-old development of the cognitive activity of mankind. It allows you to show the process of formation of problems and their solutions, teach objectively, and evaluate new things. By studying history, an accountant cannot change it, but he is able to rethink it. Accounting methodology passed 6
main stages, multiplying, becoming more complex and improving. At the same time, the achievements of the previous stages were organically included in the previous stages and dissolved in them.
1. stage of development is Naturalistic (its time periods from 4000 BC - 500 BC).
The more accurately accounting records what is happening on the farm, the better. This is how the central concept of accounting arises - a fact of economic life. At this stage, the accountant’s thought is quite primitive; he wants to reflect in accounting what he sees and what he works with. At first it is simple to reflect, then the accuracy of the reflection turns into an ideal. Accounting has always been, is and will be based on the facts of economic life. In the most general terms fact of economic life
- this is what the accountant must register according to the monitoring program. Any unit of property located in the organization must be recorded in accounting. This is how inventory is born and with it material (inventory) accounts. Each fact of economic life that gives rise to obligations of the parties must also be reflected in accounting, and this leads to such an accounting method as collation (reconciliation of mutual settlements), and in accounting itself to record it settlement accounts arise.
All the facts of the state were predetermined by the first accounting methods - inventory
- a statement of what exists, and collation
- establishing who owes what to whom. The facts of the action (normal work) and the facts of the event (force majeure) were reflected there as a statement.
And to register the facts of economic life, the first accounts appeared: inventory (material) and settlement accounts (contractual). At this stage, it is very important to understand that initially the facts predetermine accounting, but over time, accounting itself will create the facts of economic life.
Now let's talk about what exactly happened at this stage in history:
In Ancient Egypt, at this stage, they learned to make papyrus, on the scrolls of which the facts of economic life were recorded, an inventory of property was carried out and current records were taken of the receipt and issue of silver, bread, etc. On the papyrus, three persons noted the number of valuables to be released, the actual release, and the identification of deviations. The vacation documents contained a permitting resolution. At the end of the day, a report was compiled. A significant aspect was the daily removal of residues. So we can conclude that already in ancient times, accountants performed various operations, despite the fact that no books on “bookkeeping” or “accounting” have yet been found. Also in the accounting of Ancient Egypt there is an estimate dating back to 2500–2400. BC, which is confirmed by documents and cannot be refuted. Also at this stage, accounting flourished in Persia in 522. BC Payment for work was carried out in kind or in cash according to “demand - along with”. Already at this time there were travel certificates, according to which officials, upon presentation, received food according to the norms.
Thus, we move into stage 2 of development with the first accounts that have appeared (inventory and settlement accounts). When making papyrus, the facts of economic life were recorded, an inventory of property was carried out, and current accounting was carried out. At that time, the vacation documents contained a permitting resolution. Labor was paid in kind or in money. There were travel certificates.
2. stage of development – Cost (Time periods 500 BC - 1300 AD).
The first appearance of money occurred (the first coins appeared in the 5th century BC), which led to the emergence of a new technique - assessments, which was carried out in all cases where money acted as a measure of value. From that moment on, the object of accounting - the fact of economic life - bifurcated, because first it was reflected in natural measurement, and then (or simultaneously) in monetary measurement. Monetary valuation introduces a certain convention into accounting.
But the appearance of money had another consequence: the division of accounting into patrimonial
And office
. In the first, the emphasis is on accounting for the state and movement of values - property (income and expenses are a consequence of this movement). In the second - to account for income and expenses, and the condition and movement of property is considered as a consequence of the implementation of the budget (estimate). In the patrimonial accounting system, the emphasis is on assessing the property owned by the enterprise; in the cameral accounting system, the emphasis is on executing estimates. The disadvantage of the first is that it does not allow one to control the expected facts of economic life, the disadvantage of the second is that the entire property complex, except money, falls out of the accounting system.
At this stage of development, accounting was carried out both in physical and monetary terms.
Moving on to the practical part at this stage I would like to say that:
Ancient Egypt was the birthplace of bookkeeping on papyrus scrolls (“loose sheets”), while in Babylonia For the first time, records were kept on cards made of soft and wet clay in the form of plates - “tablets”. Inscriptions were made on these plates with a reed stick and they were stored in clay jugs or reed baskets. Among the surviving primary “documents” there are “work orders” for work, statements of expenses for “wages”. Even then, when accounting for material assets, incoming and outgoing documents were actually grouped, and most importantly, the “balance” was already displayed. This is what concerns Babylonia, but there are other countries that also applied their achievements in accounting, for example:
IN Ancient Greece records were kept on tablets whitened with plaster or on papyrus, as in Ancient Egypt. Also, Ancient Greece became the birthplace of the first calculating device - abacus. Which consisted of boards with grooves along which pebbles moved. Each of these grooves was intended for a separate number series. It was typical for Ancient Greece that only rich people were appointed to register material assets, because the state benefited from shortages. For example: if someone stole 5 drachmas, then he should have already given 50 to the state, i.e. Thus, he covered his shortfall 10 times. To prove the veracity of the reports, an inventory was carried out. Even then, documents on payments (taxes) were distributed and stored according to deadlines. Receipt of money (taxes), deletion of payers, return of lists, information about late payments and defaulters contributed to the emergence of linear and non-linear (positional) records.
At the second stage of development, many people made their own discoveries, and these achievements also affected Rome:
IN Rome accounting entries were made on canvas, papyrus, parchment, and wooden tablets coated with wax. The main achievements were manifested in the creation of a system of accounting registers. Even then, the first code books appeared. And when registering debts for the first time in development the terms “debit” and “credit” appear, but the two-way form of the arrangement of numbers is random, and not the principle of double entry. Budget accounting is developing in Rome; the estimated appropriations and their implementation are reflected in the book, which can be considered as first balance state economy. Even then, in construction, depreciation was taken into account when assessing structures. An apparatus of auditors and controllers was also created.
Drawing a conclusion about Western Europe, we can say:
In stage 2, to summarize, we can say that the bifurcated accounting object was reflected first in natural and then in monetary dimensions. The first calculating device appeared - ABACUS. Payment documents were distributed and stored according to deadlines. Accounting register systems appeared. The first code books also appear. For the first time in development, the terms “debit” and “credit” are used. A certain system for recording cash transactions has developed.
3. stage of development - Digraphic (accounts for the time 1300 - 1850).
At this stage, further development of patrimonial accounting occurs. At this stage it is divided into unigraphic
– based on the need for information reproduction of economic processes. It provides, as it were, a certain clarity for users to understand information about business processes (a simple record); accounting is based on a property balance; And digraphic
– based on the need for information reproduction of economic processes on the idea of accounting realism .
Realism presupposes the absence of complete adequacy between real and informational facts of economic life. It is based on a system of headings and separate accounts that make up the General Ledger (double entry) instead of a property balance sheet. Both branches of accounting exist today, but in general digraphic accounting has received much greater development. However, the spread of small businesses and the advent of computer technology have clearly revived the possibilities of unigraphic accounting, based on simple recording.
There has been a revolution in the chart of accounts because... conditional accounts (accounts of order and method) appeared; equity accounts - the capital account and its additional profit and loss account.
At this stage it was also typical:
☞ the emergence of various ways of recording facts of economic activity in accounting registers (magazines, statements, etc.) in the form of systematic and chronological records;
☞ manufacturing production;
☞ coexistence of natural exchange and commodity-money relations.
During the reign of Alfonso the Wise in Castile (Spain) in 1263, it was published special law “On mandatory annual reporting by managers of state-owned enterprises.”
In the second half of the fifteenth century. in the writings of Benedetto Cotruglia (1458) For the first time, accounting is talked about as a science. Benedict Cotrugli, in his work entitled “On Trade and the Perfect Merchant”, in the chapter “On Merchant Accounting”, sets out the essence of accounting in three books - the Main Book, the Journal and the Memorial, using double entry in the accounts.
In Venice in 1494, a book on mathematics by the French monk Luca Pacioli, “The Set of All Arithmetic, Geometry, the Doctrine of Proportions and Relations,” was published. This book consisted of 2 parts: the first part contained arithmetic and algebra, and the second – geometry. Each part was divided into departments, which, in turn, were divided into tracts. The first part, section 9, contains the 11th treatise “On Accounts and Records” consisting of 36 chapters. This work outlines the Venetian way of conducting transactions for medieval merchants. Luca Pacioli is the author of the following five main principles of accounting, which have not lost their meaning today:
☞ he gave a theoretical interpretation of double entry (without using the terms “Dt” and “Kt”), created a personal accounting model and laid the foundations for its legal interpretation, which was confirmed in the works of E. Desgrange and G. Cerboni.
☞ the personalistic accounting model has led to the possibility of independent consideration of such accounting categories as “debit” and “credit”. This created the conditions for distinguishing accounting as an independent science.
☞ He considered accounting as an independent method, based on the use of double entry and used to reflect business processes.
☞ he introduced double entry on accounts, which are considered as an accounting system (plan). In his opinion, the organization of the system (plan) could not be permanent, but should depend on the goal pursued by the administration.
☞ For the first time, modeling based on combinatorics has been introduced into accounting, which makes it possible to build a general model within which any accounting problem is interpreted as a special case.
The ideas of Luca Pacioli were developed by his followers. As a result, such a science was formed as accounting. Crown of this period there was widespread use double entry method. However, accounting is not yet considered as a separate science, and the course “accounting” is included as a separate section in mathematics.
In Germany, where on February 13, 1498, the Holy Roman Emperor Maximilian I signed the following decree: “We command the clerk of our chamber, the trusted and diligent scribe who keeps the books, from now on to be called an accountant, which should now be Christoph Stecher.” So for the first time the word appeared "accountant".
Followers of Luca Pacioli spread the use of accounting in various industries: Alvise Casanova (1558) - shipbuilding; A. di Pietro (1586) – monastic farming and banks; YES. Maschetti (1610) – industry; Ludovico Flori (1636) – hospitals, government organizations; Bastiano Venturi (1655) – agriculture. The first ever society of accountants was created in Venice in 1581.
Also characteristic of the 16th century was operational accounting - identifying the results of each operation. But there was also no reporting at this time. Since the 17th century, an accounting system appeared in which costs and output were measured on a single account at the trading stage of accounting development; an accounting system based on the use of the “Production” account (account 20), as well as the “Purchases” and “Sales” accounts (account 90) appeared. . At the same time, the total costs of the enterprise associated with supply, production and sales were attributed without distribution to the “Profit and Loss” account (account 99). Data on already purchased goods was recorded in the debit of the account, and data on sold goods was recorded in the credit of the “Production” account.
In 1773 in the Edinburgh directory there were 7 accountants, and by the beginning of the 19th century. in the directories of large cities in England and Scotland there were more than 50 of them. Adopted in 1844. Law on Companies provided for mandatory audits of bankrupt firms. This law was passed to ensure that firms study the causes of bankrupt firms and not repeat their mistakes.
Now moving on to our country, we can say what happened at this stage in our country.
In Russia, since 1645, there is information about the existence of both general and city estimates, but there were no specific ones about execution.
In 1653, the first Trade Charter in Russian history was introduced.
In 1783, the first printed guide to accounting, “The Key of Commerce,” was published in St. Petersburg without indicating the author. And already in Moscow, which began to be called merchant due to the particularly rapid development of trade, in 1790 the book “The Honorable Merchant, or Accounting”, consisting of 3 parts, was published.
In Russia, accounting as a science developed only in the first half of the 19th century. Its founders were K.I. Arnold, I.N. Akhmetov, E.A. Mudrov. Arnold came from Germany and was the first accounting teacher in Moscow; Akhmetov is an employee of a St. Petersburg trading company; Mudrov is a teacher of mathematics and physics at the Olonets gymnasium. (Petrozavodsk).
The first textbooks on accounting appeared in Russia in the 19th century. in 1831 K. Clark and V. Nemchinov published a textbook “Numeracy Science”.
This stage took almost 6 centuries in historical development and is characterized by the emergence of double entry, chronological and systematic entries in balance sheet accounting, the General Ledger, control methods and led to the creation of national trading systems. It is also the first time that accounting is spoken of as a science. A book on mathematics by the French monk Luca Pacioli, “The Set of All Arithmetic, Geometry, the Teaching of Proportions and Ratios,” has been published. The appearance of the first “accountant”.
4. stage of development - Theoretical-practical(It took only half a century in its development, but had an important contribution to history in 1850 - 1900).
The desire to understand the content of the processes being taken into account and to make the accounting procedure more efficient led to the emergence of conditional categories (balance sheet, profit, cost, production and distribution costs), and accounting practice is also aimed at better understanding it and influencing it more effectively. This is reflected in the new differentiation of accounts. Now, along with “own” accounts (material, calculations, own funds), completely conditional “metaphysical” accounts (resultative and contrarian) appeared, and accounting began to take on the appearance of no longer a photograph, but something similar to an x-ray.
This stage of development of accounting occurs at the time:
☞ revolutionary transformations in the field of production - transition to a machine technological basis;
☞ developing various forms of business transactions and increasing the volume of both trade and financial transactions.
This period was characterized by uniform approaches to the basics of systematizing accounting records.
This stage is characterized by the emergence of industrial accounting, which determines the cost of production and methods for distributing overhead costs. But The pinnacle of this stage was creation of charts of accounts for enterprises.
The need to improve enterprise management led, at the beginning of the organizational stage of accounting development, to the establishment of analytical accounting. Main contribution the development of accounting at this stage was division of accounting into two: financial and analytical and the emergence of the principles of management accounting, solving tactical management problems based on the determination and analysis of results by centers of responsibility, the widespread use of planned indicators in financial and management accounting: standards, norms, estimates, foresight data, etc. With the beginning With the industrial revolution, professional accountants began to appear. That is, accountants who were specially trained and were engaged only in accounting activities.
It is also marked by the development of previously unknown forms of entrepreneurship in industry and trade. The emergence of financial securities markets and numerous scandals related to financial fraud forced individual countries to place accounting systems under government control and regulation and to establish an audit institution. During this period, various accounting theories emerged: legal - in France, economic - in Italy, cameral - in Germany.
Each member of the Society of Accountants, formed in 1854 in Edinburgh, was entitled by royal charter to the title of "chartered accountant". That is, he took an oath of allegiance to Queen Victoria.
At this stage, accounting organically uses a system of planned indicators that characterizes both the overall results of the enterprise and the activities of responsibility centers. Accounting, which accumulates planned indicators, was called budgetary and presented information characterizing the balance sheet, profits and losses, self-financing, supply, production, sales, and the activities of responsibility centers. Accounting at this stage integrated the functions of accounting and planning, and in its depths a new specialty “managerial control” was born.
Moving on to the exact dates, we can say that in 1880, with the approval of Queen Victoria, the Institute of Chartered Accountants in England and Scotland was created. It is believed that from this moment on, the profession of professional accountant received recognition at the state level.
At the end of the 19th century, theory emerged from practice, and new methodologies, computing devices and apparatus appeared. At the end of the 19th beginning of the 20th century. accounting becomes a science.
This stage in development took only half a century, but despite this, many transformations took place, such as the emergence of conventional categories (balance sheet, profit, cost, production and circulation costs), and completely conventional “metaphysical” accounts also appeared. But its pinnacle was the creation of charts of accounts for enterprises. There was also a development of accounting into two: financial and analytical.
5. stage of development - Scientific (It also took only half a century in its development from 1900 to 1950).
For many centuries, accounting existed as a practical activity (bookkeeping). It included a set of procedures, the choice between which was made by trial and error. In the middle of the 19th century. The legal interpretation of accounting prevailed since the beginning of the twentieth century. its economic understanding gained recognition. Both scientific directions coexisted, from time to time the influence of one increased, the other weakened, but neither of them had dominant importance and neither of them disappeared. At the same time, the emergence of conventional categories was spontaneous at first. But at a certain moment there was a need to understand them. It began through interpretation central category – balance.
Some understood it as a consequence of double entry, others as a simplified inventory inventory. The latter required confirmation what led to the emergence of modern audit.
Cost accounting and costing of products, works and services are of essential importance at this stage. In cost accounting, patrimonial accounting is related to cameral accounting. The latter recorded costs in accordance with the estimate, the former - as they arose. Costing theory arose at the beginning of the twentieth century. It involved calculating the full cost, i.e. including both direct and indirect costs. By the mid-30s, principles were formulated direct costing- a method in which only direct costs are included in the cost, which made it possible to expand production volumes, reducing selling prices to the calculated partial cost. In the early 50s, a method was proposed cost accounting by responsibility centers, i.e. accounting of costs by location where they are recorded. From the middle of the 19th century. the spread of joint stock companies and changes in taxation led to a sharp increase in tax legislation. A number of European countries (Germany, France, Sweden, Belgium, Denmark, Luxembourg, etc.) are introducing strict and very detailed accounting regulations.
Essentially, this stage became the period of formation of accounting as a field of scientific knowledge. Most of the authors, among them Francesco Villa, D. Massa, E. Pisani, A.P. Rudanovsky sought to formulate the theoretical foundations of accounting.
In 1917 The Association of Public Accountants became the American Institute of CPAs, with strict qualification requirements but no certification. Later, the American Society of Certified Public Accountants appeared with a certificate. But already in 1936. these two societies merged, and in 1957 they became known as the American Institute of Certified Public Accountants.
In 1941, the American Institute of Certified Accountants defined accounting as follows: “Accounting is the art of recording, classifying and summarizing accounts by recording in monetary terms transactions and events which, at least in some part, are of a financial nature and also interpretation of the results obtained.”
In 1944, French scientist Jean-Baptiste Dumarchais proposed an international coat of arms for accountants, consisting of three figures: sun– accounting covers economic activities; scales– balance; And Bernoulli curve, symbolizing that accounting, once established, will exist forever, and the motto “science, trust, independence.” In 1946, the International Congress of Accountants approved the coat of arms as international emblem of accountants.
At this stage, in Russia (1906) in St. Petersburg, I. Maksimov’s book “Accounting. A brief historical outline of the development of bookkeeping and its importance in commercial, industrial and agricultural enterprises.”
To sum up the entire 5th stage of development, we can say that only at this stage the emblem of all accounting workers appeared, the principle of direct costing was formulated, and the central category – balance – was interpreted. This stage is also characterized by the fact that accounting, along with solving tactical problems, began to solve strategic management problems based on the use of computers in accounting and a clear division of costs into variables proportional to production volume.
6. stage of development - Modern
(which started in 1950 and continues to this day).
This stage led to the development of dynamic and statistical interpretations of balance and to attempts at some synthesis of them. The dynamic interpretation and evolution of calculation methods led to the birth of management accounting, and the statistical interpretation predetermined the emergence of international financial reporting standards (IFRS) and national accounting. Both interpretations influence the formation of tax accounting.
In general, the nature of accounts is changing, there is a transition from accounting for enterprises to accounting for the entire national economy; accounts cease to reflect fairly accurate legal phenomena and begin to concentrate the movement of information, each account becomes a “black box” with an input (debit) and an output (credit). At this stage, it was realized that accounting is kept in the interests of various groups participating in economic processes, and unified accounting is kept in the interests of the state, financial accounting - for current and potential owners, management - due to the needs of the administration. However, accounting is the same for all persons. His past hides from us, leaving only broken fragments, the connection between which we must trace.
In 1970, the Institute of Accountants stated that the function of accounting is “to provide quantitative information, primarily of a financial nature, about business entities for the purpose of using this information to make management decisions.”
It is characterized by the development of basic principles for an objective assessment of the property and legal status of an independent economic entity, target orientation in building an accounting system, and expansion of state regulation of the national accounting and reporting system.
Characterized by the development of principles for assessing the property and legal status of business entities in the external market environment and in connection with making effective business decisions to extract future economic benefits; development and implementation of International Accounting and Auditing Standards.
Despite the existence of general trends in the development of the world economy, one cannot fail to note the special role of individual states in the development of accounting.
At this last stage, it should be noted that in general the nature of accounts is changing, each account becomes a “black box”, having an input (debit) and an output (credit). The development and implementation of International Accounting and Auditing Standards is underway. The development of new general scientific directions has had a profound impact on accounting. Analysis, information theory, cybernetics, control theory, and the use of modern computer technology have greatly contributed to the improvement of accounting.
CONCLUSION
Throughout my speech, I mentioned many names of scientists who made enormous contributions to the history of accounting. These are: Luca Pacioli, Jean-Baptiste Dumarchais, Benedetto Cotrugli, I would also like to say about our Russian scientists, such as Alexander Pavlovich Rudanovsky, Fyodor Venediktovich Yezersky - the creator of the 3rd form of accounting, Karl Ivanovich Arnold.
An accountant is a promising profession worthy of attention. The science of Accounting is worth learning and I wish our students success in mastering it.
Only professionals can raise the country.
Mastering a profession is the duty of every specialist. An accountant is no exception!
Thank you very much for your attention!
Accounting for the use of profits in an organization is carried out on the basis of the decision of its participants. Where can the profit received be directed? How to correctly reflect the use of profit in transactions? You will find explanations on these issues in our article.
Accounting for profit generation
There are 4 types of profit in accounting:
- operating room;
- from other operations;
- clean;
- unallocated.
Operating profit is defined as the positive difference between credit and debit turnover on account 90, which at the end of the month is transferred to account 99:
Dt 90-9 Kt 99.
Profit from other operations is formed in the same order as operating profit. Only amounts for calculation are taken from account 91:
Dt 91-9 Kt 99.
Net profit is calculated on a monthly basis after closing the balance between credit and debit turnover in account 90 and account 91 and charging income tax:
Dt 68 Kt 99.
The formation of retained earnings is carried out once a year when the balance formed at the end of the year on account 99 is written off to account 84:
Dt 99 Kt 84.
You will find detailed explanations on determining the amounts of each type of profit and reflecting them in accounting in our articles:
Accounting for the use of profit in an organization
The use of profit in an organization should be carried out only on the basis of the decision of its founders (participants). All transactions for spending profits recorded in accounting, but not confirmed by the specified decision, will be considered illegal, and the financial statements will be considered unreliable.
The use of profit can be represented schematically:
Let's take a closer look at the reflection in the postings of each of the areas of profit use indicated in the diagram.
External use of profits
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Operation |
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Profit generated at the end of the year |
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Dividends and bonuses accrued based on the results of the year |
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Interim dividends, bonuses (for a quarter, half a year, 9 months). Note! This entry is not recorded in the chart of accounts, but from a logical point of view, interim dividends can only be paid out of net profit (account 99), since retained earnings (account 84) are formed only at the end of the year |
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Charitable payments to citizens and organizations |
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Financial assistance to employees |
Internal passive use of profits
Internal active use of profits
When using profits to develop the organization and cover losses for previous years, its movement is taken into account only in analytical accounts. This movement is not reflected in any way in synthetic accounting. This fact is due to the fact that the profit received is not withdrawn from current turnover, but continues to work.
The purchase of fixed assets, intangible assets and other costs for optimizing the organization’s activities, made at the expense of profits, are accounted for in the usual manner without using account 84.
And in order to understand how much of the profit received is aimed at optimizing activities, and what remains unclaimed, it is recommended to open at least the following sub-accounts for account 84 “Retained earnings”:
- subaccount 1 “Profit received”;
- subaccount 2 “Profit in circulation”;
- subaccount 3 “Loss of previous years”.
And when the organization’s participants make a decision on the use of profits, record them with internal postings to account 84:
- Dt 84-1 Kt 84-2 - the profit received is used to purchase new equipment.
- Dt 84-1 Kt 84-3 - the profit received is used to cover the losses of previous years.
Using the profits of non-profit organizations
Separately, we should highlight the profit received by the NPO from its business. NPOs can use this profit only to carry out their statutory activities and related organizational expenses. The profit received by an NPO cannot be distributed among its participants and employees. Therefore, in accounting, the use of profit can be reflected in only one entry:
Dt 84 Kt 86 - the profit received is aimed at increasing target funds.
Results
When profits are paid to the founders, employees of the organization or third-party citizens and organizations, it is written off to the accounts of settlements with recipients of funds. When the profit is attributed to the increase in the reserve and authorized funds of the organization, it is written off to the capital accounts. And when profit remains in the organization’s turnover, its movement is recorded only in analytical accounting.
Accounting in all organizations, regardless of their form of ownership, is subject to the same requirements, regulated by various regulatory documents. Let us list the main of these requirements.
1. The organization maintains accounting records of property, liabilities and business transactions by double entry on interrelated accounting accounts included in the working chart of accounts, which is adopted by organizations on the basis of the Chart of Accounts approved by state bodies.
2. Accounting for property, liabilities and business transactions of organizations is carried out in the currency of the Russian Federation - in rubles. Documentation of property, liabilities and other facts of economic activity, maintenance of accounting registers are carried out in Russian.
3. Compliance with the adopted accounting policies during the reporting year is mandatory for all organizations. This policy, as a rule, provides for the following requirements: completeness, timeliness, prudence (avoid hidden reserves), priority of content over form (based not so much on the legal form as on the economic content of the facts), consistency (equality of analytical accounting data with turnover and balances according to synthetic accounting accounts on the last calendar day of each month), rationality (rational accounting based on the specifics of the activity and the size of the organization).
4. In accounting, the current costs of production. performance of work and provision of services and costs associated with capital investments are accounted for separately.
5. Property owned by an organization under proprietary rights is accounted for separately from the property of other legal entities owned by this organization.
6. Accounting is maintained by the organization continuously from the moment of its registration as a legal entity until reorganization or liquidation in the manner established by the legislation of the Russian Federation.
7. Responsibility for organizing accounting, providing financial statements, complying with the law when performing business transactions, and ensuring mandatory audits in cases established by the legislation of the Russian Federation are borne by the heads of organizations.
TO accounting tasks include:
- generation of complete and reliable information about the activities of the organization and its property status, necessary both for internal users of financial statements - managers, founders, participants and owners of property of organizations, and external - investors, creditors, etc.;
- providing information necessary for internal and external users of financial statements to monitor the organization’s compliance with the legislation of the Russian Federation when carrying out business operations and their expediency. safety and use of material, labor and financial resources in accordance with approved norms, standards and estimates:
- preventing the emergence of negative phenomena in the financial and economic activities of organizations, identifying and mobilizing intra-economic reserves and forecasting the results of the organization’s work for the current period and for the future;
- promoting competition in the market.
In the accounting literature in recent years, a new concept has often appeared - the accounting principle.
The principle is the basis, the initial, basic position of accounting as a science, which predetermines all subsequent statements arising from it. In our opinion, the following can be considered the basic principles of accounting.
The principle of autonomy - assumes that this or that organization exists as a single independent legal entity; the organization’s property is strictly separated from the property of its co-owners, employees and other legal entities. Accounting data represents a unified system that meets the objectives of property management, obligations and business operations carried out by the organization in the process of its operation. Accounting elements that do not have an impact on business processes are removed from the accounting system as unnecessary. Accounting and balance sheets reflect only the property that is recognized as the property of this particular organization.
Double entry principle - consists in reflecting economic phenomena, facts and transactions, predetermined by the use of double entry in accounts, simultaneously and for the same amount in the debit of one account and the credit of another account.
The principle of the operating organization is assumes that the organization is functioning normally and will maintain its position in the market in the foreseeable future, paying off obligations to suppliers and consumers and other partners in the prescribed manner. This principle makes it necessary to link the organization's assets with its future profits that can be obtained with the help of these assets. This principle acquires particular importance when assessing the property and liabilities of an organization.
The principle of objectivity (registration) is that all business transactions must be reflected in accounting, be registered throughout all stages of accounting, and be confirmed by supporting documents on the basis of which accounting is kept.
Principle of prudence (conservatism) implies a certain degree of caution in the process of forming judgments necessary when making calculations under conditions of uncertainty. which avoids overstating assets (or income) and understating liabilities (or expenses). Adherence to the principle of prudence helps to prevent the occurrence of hidden reserves and excessive inventories, deliberate understatement of assets (or income) or deliberate overstatement of liabilities (or expenses). Neglect of this principle will lead to the fact that accounting statements will cease to be neutral and, therefore, lose reliability.
Accrual principle (conditional facts of economic activity) - all transactions are recorded as they occur, and not at the time of payment, and relate to the reporting period when the transaction was completed. This principle can be roughly divided:
- on the principle of recording income (revenue) - income is reflected in the period when it is recognized and not paid;
- principle of correspondence - income of the reporting period must be correlated with the expenses through which the income was received; expenses (income) related to the corresponding income (expenses) recognized in each reporting period are accounted for separately.
The principle of periodicity - regular, periodically repeated balance sheet summarization of accounting information - preparation of a balance sheet and other forms of reporting for the year, half a year, quarter, month; This principle ensures the comparability of reporting data and allows the calculation of financial results after certain periods.
Confidentiality principle lies in the fact that the content of internal accounting information constitutes a trade secret of the organization, for the disclosure of which and damage to the interests of the business entity, liability is provided.
The principle of monetary measurement involves the quantitative measurement of the facts of economic activity and the use of the country's currency as a unit of measurement.
The principle of succession - reasonable commitment to national traditions, achievements of domestic science and practice.
Accounting principles, being the basis, the general concept of accounting, contribute to the development of its standards. Failure to comply with or violation of these principles will lead to significant distortions of accounting information, to its loss of objectivity and reliability and, consequently, to the impossibility of using it in the process of making management decisions aimed at improving the activities of the organization.
Requirements for information generated in accounting
Based on the main goal of accounting - providing all users with the necessary information for making informed management decisions, the formation and development of the production, economic and financial activities of the organization, and in accordance with the mentioned law, the main objectives of accounting are:
generation of complete and reliable information about the economic and financial activities of the organization, its property status and performance results, i.e. information necessary for making informed management decisions;
provision of information necessary to control: I) compliance with the legislation of the Russian Federation when the organization carries out business operations and their expediency: 2) the availability and movement of property and
obligations; 3) for the use of material, labor and financial resources in accordance with approved norms, standards and estimates; . preventing negative results from the organization’s financial and economic activities and identifying internal reserves to ensure its financial stability. The information generated within the framework of accounting is used, as noted, to develop tactics and strategies for the development of the organization’s activities.
The decisions that users make based on accounting information depend on the quality of that information. Therefore, the information generated in accounting must be useful for users. For information to be considered useful to them, it must meet the requirements of relevance, reliability and comparability. Such requirements are also called qualitative characteristics of information.
Relevance information is determined by its ability to influence decisions made by interested users, helping them evaluate past, present and future events, confirming or changing previously made assessments of the organization's activities. The relevance of information is influenced by its content and materiality. Essential information is recognized, the absence or inaccuracy of which may influence the decisions of interested users.
Reliable information is considered to contain no significant errors. To be reliable, information must objectively reflect the facts of economic activity. The latter should be reflected in accounting based not so much on their legal form, but on their economic content and business conditions, i.e. The priority of content over form must be respected. Reliability of information is ensured by:
- truthfulness— an objective representation of the actual state of affairs;
- neutrality - information should be free from one-sidedness and should not influence the decisions and assessments of interested users in order to achieve predetermined results or consequences;
- prudence(caution) - property and income should not be overstated, and liabilities and expenses should not be understated. In this case, the creation of hidden reserves is not allowed. One of the specific manifestations of prudence is the reflection of profit in accounting only after the completion of business transactions (facts of economic activity), and loss - from the moment the assumption of the possibility of its (loss) occurrence arises;
- completeness— information generated in accounting must reflect all the facts of economic activity.
Comparability means that interested users must be able to compare information about an organization over different periods of time to determine trends in the financial position and financial performance of the organization. Users of information must also be able to compare information about different entities to compare their financial position, financial performance and changes in financial position.
The requirement of comparability is ensured by ensuring that interested users are informed of the accounting policies adopted by the entity, any changes in those policies and the effect of those changes on the financial position and financial performance of the entity. Ensuring comparability does not mean unification and does not imply any obstacles to improving accounting rules and accounting procedures. An organization should not at all keep records of any fact of economic activity in the same way as before, if the adopted accounting policy does not ensure the implementation of the requirements of relevance and reliability.
In practice, a choice between different requirements is often necessary. The task is to achieve an optimal balance between requirements. Thus, when generating information in accounting, factors limiting the relevance and reliability of information must be taken into account.
One factor that may limit the relevance of information is its timeliness. Excessive delay in providing information to interested users may result in loss of relevance. To ensure the timeliness of information, it is often necessary to provide it before all aspects of the business are known, thereby compromising the reliability of the information. Waiting for the moment when all aspects of the fact of economic activity become known can ensure high reliability of information. but make it of little use to interested users, i.e. the information will lose its relevance.
It should be noted that the benefits derived from accounting information must exceed the costs of preparing (receiving) the information. This means that accounting should not be cumbersome and the costs of maintaining it should be lower than the cost of the results expected from using the generated information.
According to the Federal Law of the Russian Federation “On Accounting”, all organizations carrying out business activities as legal entities are required to maintain accounting records. Based on this Law, the “Regulations on accounting and financial reporting in the Russian Federation” were adopted, which explains the necessary principles.
Every day millions of payments are made around the world. They are made by both ordinary people and businesses. Any business must take into account its own payments to keep them under control. Therefore, any payment is accounted for through accounting entries.
Accounting entries are accounts, drawn up on actual papers, reflecting the amount of a business transaction that is subject to accounting.
Any information about actions performed on accounts is marked with a double entry, i.e. in the debit of one account and in the credit of another, for an identical amount. With its help, all accounts assume a single interconnected structure.
The relationship between debit and credit accounts formed through the process of double entry is called a correspondent accounts account, and the accounts involved in this relationship are called correspondent accounts.
To understand the concept of accounting for debit and credit accounts, the following features of account accounting were introduced into accounting:
- asset – reflects the values owned by the organization;
- liability – displays the organization’s debt to creditors;
- active-passive account – displays one-time debit and credit debt.
Posting table with trading examples:
Table: Receipt of goods from the supplier. 
Table: Sales of goods at the time of shipment (OPT). 
Table: Sales of goods at the time of shipment (Retail). Accounting entries for beginners under an assignment agreement
An assignment agreement is a replacement of a creditor for an obligation. There are three parties to the contract. Accounting for parties looks like as follows:
- debtor– all debt transactions are reflected in analytical accounting. Costs identified during the validity of the assignment agreement are reflected in other expenses. Changing the lender will not affect financial accounting;
- assignor– the assignment agreement does not generate either income or expenses. But the fact of execution of the operation increases its liquidity;
- assignee– when assigning a debt, records it in debit as a receivable for the amount of the debt, then displays it in credit pending the transfer of funds.
The following table with examples for an assignment agreement will help beginners make accounting entries:
Table: Postings under the assignment agreement. Cash transactions in accounting
Cash transactions involve receiving, issuing and storing cash. Accounting for cash transactions is based on the regulations of the Tax Code of the Russian Federation.
What is depreciation of fixed assets in simple words? The answer is found
When maintaining a cash register, the following documents are used:
- cash receipt order - to record cash receipts;
- expense cash order - to record cash expenses;
- cash book – takes into account all movements on the cash register.
Table of accounting entries with answers:
Provision of services
An organization can either provide services to third parties or use the services of a third party. Accounting for accounting entries in this case will be different.
The main tasks are the following:
- reliable and complete information content of all transactions performed;
- providing information to all participants in the process;
- avoiding a negative outcome for these operations;
- proper documentation;
- competent reflection of expenses in the process of operations;
- receiving monetary profit from the transaction.
Table with answers for business transactions related to the provision of services to third parties:
Table: Provision of services to third parties. 
Table: Obtaining services from a third party. How to prepare accounting entries for fixed assets?
An organization that has fixed assets on its balance sheet is obliged to take them into account in the balance sheet. It is worth noting some features in this process:
- By accepting a fixed asset for accounting, its initial cost is determined;
- a fixed asset has a useful life - this is the period during which it generates income;
- it is necessary to depreciate the fixed asset, i.e. write off its partial cost;
- revaluation is not mandatory, the organization has the right to carry it out;
- expenses for capital or current repairs of fixed assets are recorded on debit expense accounts;
- write-off of a fixed asset occurs in the event of no profit being made or its disposal.
Table of accounting entries for fixed assets with examples:
Closing of the year
According to the law, a period is defined for which all economic activities of the organization are carried out; this period lasts from January 1 to December 31. Based on this period, January 1 is the new reporting date, and December 31 is the final one.
You can read how to independently draw up an accounting certificate about correcting an error and writing off debt
Closing the year sums up all the annual financial results of the organization. That is, it resets the balances on accounts 90 and 91, and closes account 99. As a result, the total, profit or loss is recorded in account 84.
Closing is done on a full year basis. In accounting, the year end is shown as December 31st. After closing, the organization begins a new period with zero financial balances.
Table with examples:
Examples of accounting entries for taxes and state duties
Tax expenses and state duties are displayed in the period of actual payment. Based on the purpose of the payment, you need to consider:
- write-off of costs for core activities;
- posting of costs to other expenses if they are not related to the main activity;
- accounting as part of the property.
Payment of taxes and state duties is carried out from the organization's current account. When paying, you must take into account all the payer's details and the correct purpose of the payment.
Examples of postings are clearly shown in the following table:
Loans issued
The organization has the right to issue a loan to a third party organization or individual. Such a transaction must be certified in writing on both sides as a loan agreement. The loan agreement usually specifies the interest level, the period of validity of the agreement, and the payment schedule.
If the interest level is not determined, you can take the current refinancing rate as a basis. The loan agreement can also be interest-free, which must also be stated in the agreement.
The loan can be issued either in cash or in kind; it is worth noting that VAT is not assessed for a cash loan. The amount of interest received is included in sales revenue or other income. This does not affect financial results.
Acquiring
Acquiring is non-cash payments with the buyer through an intermediary, which is the bank, on the basis of a concluded agreement between the organization and the acquiring bank.
This operation has the following features:
- use of a POS terminal for processing bank cards;
- The POS terminal is listed on an off-balance sheet account (if provided by a bank), or as a fixed asset (if acquired as an asset of an organization);
- proceeds from the sale are credited to the account in an amount reduced by the amount of the acquiring bank's commission, but the entire amount of proceeds is indicated in the income;
- the acquiring bank's commission is included in the costs.
Accounting entries for acquiring in the table:
Accounting is equipped with a large number of entries; an experienced accountant knows that the reflected data must be correct and literate, in accordance with established rules. First of all, the accountant must understand the importance of this and be aware of the responsibility that lies with him.
If information is distorted or trying to avoid providing it, the manager and accountant will be held liable under Art. 15.11 Code of Administrative Offenses of the Russian Federation.
How to prepare accounting entries correctly? Watch the following video for recommendations: