The write-off of the balance of other expenses is expressed by an accounting entry

What does account 91 reflect in accounting?

Credit accounts show income related to:

1. Company assets provided for temporary use for a fee. These funds are reflected in correspondence with settlement items or cash accounts.
2. Granted for a fee for temporary use of rights arising from patents for inventions, industrial designs and other products of intellectual activity. They are also reflected in correspondence with cash or settlement accounts.
3. Participation in the authorized capital of a third-party company, interest and other income from securities. These receipts are shown in correspondence with accounts for accounting settlements.
4. Sales and other write-offs of fixed assets and other assets other than Russian cash and products. These incomes are reflected in correspondence with accounting items for settlements or financial assets.
5. Operations with containers.
6. Receiving assets free of charge. These receipts are shown in correspondence with income items for upcoming periods.

   

Rakhunok 91. Zagalnovyrobnichi vitrati

Correspondence on the debit of account 91 “General production expenses”

Correspondence on the credit of account 91 “General production expenses”

Additionally

The profit received by the organization under the terms of the simple partnership agreement is also reflected in 91 accounting accounts. Postings in this case are drawn up in correspondence with Art. 76, showing settlements with various entities. The article under consideration reflects interest receivable or received for providing the enterprise’s funds for use. They are shown in correspondence with items of financial investments or cash assets. Penalties, fines, penalties accrued for violations of contractual terms, recognized as receivable or received are also transferred to 91 accounting accounts. Postings are made in correspondence with items for settlements or recording of funds. Other expenses and income also include:

• Proceeds to compensate for losses incurred.
• Previous period profits discovered in the reporting year.
• Accounts payable amounts.
• Exchange differences.
• Other receipts recognized as non-operating and operating, except emergency.

Tax Code: other expenses for taxation

Below are the main transactions for 91 accounts. How will operations change if they are carried out on a loan:

• Dt62 (76) - Kt91.1 - accrued the cost of lease payments receivable;
• Dt62 (76) - Kt91.1 - interest receivable on securities was accrued;
• Dt62 - Kt91.1 - profit from the sale of assets is reflected;
• Dt66 (67) - Kt91.1 - interest receivable on loans issued;
• Dt98 - Kt91.1 - reflects income from assets received for free use;
• D62 - Kt91.1 - profit of the previous period was reflected;
• D62 - Kt91.1 - accounts payable were written off after the statute of limitations expired;
• D57 - Kt91.1 - reflects the exchange rate difference resulting from the acquisition of the currency of another state;
• D62 - Kt91.1 - other income includes the amount of the reserve for doubtful debts;
• D99 - Kt91.1 - shows the loss from other activities of the company;

Or by debit:

• Dt91.2 - Kt01 - the residual value was written off after the sale of the fixed asset;
• Dt91.2 - Kt04 - the residual value of an intangible asset sent for sale was written off;
• Dt91.2 - Kt10 - cost of materials sold written off;
• Dt91.2 - Kt66 (67) - interest accrued on the loan taken;
• Dt91.2 - Kt20 - accrued costs for mothballing production facilities4
• Dt91.2 - Kt60 - the statute of limitations for accounts receivable has expired, it was included in other expenses;
• Dt91.2 - Kt99 - shows the profit received from the result of other activities.

Chaikoff LLC produces teapots. In addition to the main activity, he has income from renting out one of the production premises. Every month, the tenant of Boomerang LLC pays the company 45,000 rubles in cash.

Chaikoff LLC maintains the premises, monthly expenses are:

• deductions for depreciation—2,500 rubles;
• salary of service personnel—9,000 rubles;
• salary tax—2,000 rubles;
• utility bills - 3500 rubles.

Chaikoff LLC sold production materials that cannot be used in the manufacture of teapots. In monetary terms this amounted to:

• transaction amount - 35,000 rubles;
• cost of materials - 13,000 rubles;
• employee salary including taxes is 8,000 rubles.

Postings
Although income and expenses from other activities are not key for the company and do not significantly affect the financial result, you should not underestimate them. An incorrectly closed account 91 can lead to a distortion of the amount of the taxable base, and this already threatens with penalties from inspection and regulatory authorities.

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All expenses of any organization can be simplified into those related to its core activities and other expenses. It is necessary to generate the necessary data on other expenses in accounting on the basis of Chapter. 3 PBU 10/99.

For other expenses in accounting, this list is open.

For a commercial company, other expenses, as well as costs associated with its main activity, are an important part of the accounting system, since this information influences the adoption of correct management decisions.

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The following requirements apply to expenses in accounting:

• they must be carried out on the basis of any agreement or in accordance with the law;
• expenses are accurately defined in monetary terms;
• there is no doubt that the expenditure transaction will lead to a decrease in economic benefits.

91-1 “Other income”;

91-2 “Other expenses”;

91-9 “Balance of other income and expenses.”

Account 91 at the end of each month does not have a balance - debit and credit turnovers are calculated, their total balance is displayed and recorded on subaccount 91-9 in correspondence with account 99 “Profits and losses”.

Dt 91-9 Kt 99 - profit made;

Dt 99 Kt 91-9 - losses received.

It is recommended to keep analytical accounting of other expenses in account 91 separately for each of the operations in order to have before your eyes a complete picture of their impact on the results of the company’s work.

Dt 91-1 Kt 91-9 - transfer of the balance of other income.

Dt 91-9 Kt 91-2 - transfer of the balance of other expenses.

In the financial statements, other expenses are indicated in the income statement on line 2350.

In the practice of every accountant, there are cases when expenses are incurred that are not related to the main commercial activity. Then the question arises: is it possible to reflect these expenses when maintaining tax records? To answer this, you need to refer to Art. 265 “Non-operating expenses” of the Tax Code of the Russian Federation, which contains a list of expenses not related to the main activity justified for reducing the taxable base.

In reality, there are often expenses of an organization that are accepted in accounting, but cannot be taken into account in tax accounting. The accountant must know them well.

These include, in particular:

• fines and penalties for taxes and payments to the state budget;
• expenses for charitable and cultural and entertainment events, etc.

Not all expenses of an organization reflected in accounting can be taken into account when maintaining tax records. This creates temporary differences that must be taken into account in accordance with PBU 18/02.

In order to correctly form the profit received for calculating tax, you must be guided by a special list of non-operating expenses, which contains Art. 265 Tax Code of the Russian Federation. This list includes:

• costs of maintaining the leased property;
• interest paid on loans taken;
• negative exchange rate differences;
• expenses for disposal of fixed assets;
• court fees and charges;
• maintenance of unused property;
• fines for violation of contractual terms.

Non-operating expenses also include losses from natural disasters, bad debts, damage to material assets in the absence of the culprit, etc.

The list of such expenses is open. It may include other expenses of the enterprise that are not related to production and sales. The main thing is that it is necessary to comply with the condition specified in paragraph 1 of Art. 252 of the Tax Code, - expenses are necessary for the full-fledged activities of the organization and must be documented properly and with all the necessary details.

The moment of recognizing an expense for calculating taxes is also stipulated in the Tax Code of the Russian Federation. If, according to the accounting policy of the organization, the accrual method is used, then you need to use the instructions of clause 7 of Art. 272 of the Tax Code of the Russian Federation. When using the cash method, to write off non-operating expenses, you must be guided by clause 3 of Art. 273 Tax Code of the Russian Federation.

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You will learn what the Tax Code says about non-operating expenses from the article “Art. 265 of the Tax Code of the Russian Federation: questions and answers.”

Debit

The Rules provide for expenses that are transferred to account 91. Accounting should reflect expenses associated with:

1. Providing on a paid basis for temporary use/possession of enterprise assets, rights that arise from patents for industrial designs, inventions, other objects of intellectual property, as well as participation in the capital of other organizations.
2. Disposal, sale and other write-off of fixed assets and other assets other than money in domestic currency, goods.
3. Operations with containers.
4. Payment for services provided by credit institutions.
5. Maintenance of production facilities and mothballed facilities.
6. Compensation for losses caused by the organization.

Costs incurred in connection with legal disputes are also included in account 91 in accounting (examples of entries will be given below).

Postings for accounting for other expenses

Transactions on other expenses are reflected in account 91 “Other income and expenses”, the debit of which records expenses, and the credit records income. For ease of accounting, it is recommended to use subaccounts:

91-1 “Other income”;

91-2 “Other expenses”;

91-9 “Balance of other income and expenses.”

Account 91 at the end of each month does not have a balance - debit and credit turnovers are calculated, their total balance is displayed and recorded on subaccount 91-9 in correspondence with account 99 “Profits and losses”.

The wiring will look like this:

Dt 91-9 Kt 99 - profit made;

Dt 99 Kt 91-9 - losses received.

It is recommended to keep analytical accounting of other expenses in account 91 separately for each of the operations in order to have before your eyes a complete picture of their impact on the results of the company’s work.

The total balance on account 91 on the last day of the month is zero, but debit and credit amounts have been accumulated on its subaccounts since the beginning of the year. At the end of December, amounts from subaccounts 91-1 and 91-2, collected for the year by internal postings, are transferred to subaccount 91-9:

Dt 91-1 Kt 91-9 - transfer of the balance of other income.

Dt 91-9 Kt 91-2 - transfer of the balance of other expenses.

In the financial statements, other expenses are indicated in the income statement on line 2350.

Account 91 in accounting: subaccounts

They can be opened separately for expenses and income, as well as their balances. In account 91.2 in accounting, entries are made cumulatively throughout the reporting year. A monthly comparison of debit turnover for other expenses and credit turnover for income determines their balance. It is written off to the account. 99. As a result, synthetic 91 accounts in accounting do not have a balance as of the reporting date. However, analytical articles have it.

In particular, on the account. 91.02 (accounting account). This means that if the balance is formed during the month when other expenses/income are entered, then the balance is formed during the closing operation. It is reflected in the analytical item of income. If revenues exceed expenses, the balance will go to the account. 91.01 (accounting account). This will be Kd and it indicates profit. If expenses are higher, then the balance will be formed on debit, which will ultimately increase the loss.

Video reference “Account 91. Accounting for other income and expenses”

This video lesson explains how to keep accounting for other income and expenses (account 91), what subaccounts, postings and standard transactions are. The lesson is taught by the teacher of the website “Accounting and Tax Accounting for Dummies”, chief accountant Gandeva N.V. To watch online, click on the video ⇓

https://youtu.be/202ZKa9wP9U

Practical implementation

Let's look at how entries are made to the account. 91.02 (accounting account). These are typical cases:

Important point

Any business entity incurs expenses and receives income by carrying out normal activities. These do not include what is specified in the charter, as many experts believe. Routine activities are those that are performed constantly or quite frequently. To a significant extent, of course, they must coincide with the statutory ones. However, they are not equal to each other. Often, the charter lists more types of activities (just in case) than the enterprise actually carries out. All other business transactions are reflected in 91 accounting accounts. Operating expenses/income are related to the company's activities, but do not constitute its objectives. Non-operating income/expenses are determined by the consequences of such work. The compilers of the instructions for the plan of accounts combined these categories into one. However, it is advisable to consider them separately.

Results

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Reliable reflection of other expenses in accounting and tax accounting helps not only to rid the company of claims from controllers, but also to obtain information for making strategic decisions. Therefore, it is important for an accountant to correctly identify an expense business transaction, using the norms of accounting and tax legislation.

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Operating income

First of all, these are revenues that are associated with the provision of property for rent. When the payment date arrives, the specialist makes the following entry:

Db 76.3 “Calculation of due dividends and other income.”

Kd 91.1 (accounting account for other income).

As a result, profit appears not when the rental payment is received, but when the right to claim it arises. The lessor acts from this moment as the tenant's creditor and remains so until the obligation is repaid. If the owner grants the client the right to use the products of intellectual work, income from such operations is reflected in the same way. If the moment of occurrence of the obligation coincides with the date of repayment, it will be correct if entries are made through the account. 76.3. A similar scheme applies to reflection:

1. Profits from joint activities.
2. Income arising from participation in the authorized capital of third-party companies, including from securities.
3. Interest received on funds deposited in banks or lent.

Non-operating income

They form a complex of various operations and are included in account 91. In accounting for dummies, it is better to analyze the examples in detail. Let's consider the following case.

The counterparties recognized the company's right to a fine or penalty for failure to fulfill contractual terms or this occurred by court decision. As soon as there is an obligation or consent from the client to make a payment, the company has income:

— DB 76.2 “Calculations for claims.”

— Kd 91.1 “Other receipts.”

But as a rule, such settlements should be considered as a disputed debt. The debit of this account records claims against customers (for example, suppliers for improper shipment). Then the entry is made:

— Db 76.2.

— CD 60 “Settlements with contractors and suppliers.”

Accounts receivable are reserved in this case:

— Db 91 “Other costs.”

— Kd 63 “Provisions for doubtful debts.”

After the court decision is made, you can make the following entry:

— Db 63.

— Kd 91.

This scheme will allow you to balance the actions before receiving payment:

- DB 51 "R/s".

— Kd 76.2 “Calculation of claims.”

The above records indicate that the company had no income, but only reimbursed losses incurred earlier. If the claim is not satisfied, the disputed debt is written off from the reserve:

— Db 63 Kd 76.2.

This will allow you to show the consumption at the moment at which it actually occurred.

Account correspondence schemes

Selection based on materials from the information bank “Correspondence of Accounts” of the ConsultantPlus system

Civil relations

In accordance with paragraph 2 of Art. 723 of the Civil Code of the Russian Federation, the contractor has the right, instead of eliminating the deficiencies for which he is responsible, to perform the work again free of charge with compensation to the customer for losses caused by the delay in performance. In this case, the customer is obliged to return the previously transferred work result to the contractor, if the nature of the work makes such a return possible.

Accounting

In the situation under consideration, defects in the work performed were discovered in the year following the year of its completion. The organization performs the work again within the framework of the original contract, that is, until the work is completed again and handed over to the customer, the contract is considered unfulfilled.

In this case, operations related to the discovery of a defect by the customer are reflected in the contractor’s accounting records in the month the defect was discovered, while the accounting records of the previous year for reflecting revenue from the work are not adjusted.

Revenue recognized last year from work in the current year is recognized in accounting as part of other expenses (as losses of previous years identified in the reporting year), which is reflected by an entry in the debit of account 91 “Other income and expenses”, subaccount 91-2 “Other expenses”, in correspondence with the credit of account 62 “Settlements with buyers and customers” (p.

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Costs incurred in performing work in which the customer discovered a defect are recognized in the current year as part of other income (as profit of previous years identified in the reporting year), which is reflected by an entry in the debit of account 20 “Main production” and the credit of account 91, subaccount 91-1 “Other income” (clause

Costs for identified final defects are debited to account 28 “Defects in production” in correspondence with the credit of account 20 (Instructions for using the Chart of Accounts). The indicated losses from defects are written off from account 28 to the debit of account 20 as losses from defects that are not subject to compensation by the culprits (including losses from defects in individual production) (Instructions for using the Chart of Accounts).

Expenses associated with performing work anew, accounted for on account 20 and being expenses for ordinary activities, are written off to the debit of account 90 “Sales”, subaccount 90-2 “Cost of sales”, on the date of delivery of the re-performed work to the customer and recognition of revenue from sales works (clauses 5, 9, 19 PBU 10/99).

Value added tax (VAT)

Repeated performance of work in the situation under consideration is carried out within the framework of one contract. That is, until the work is completed again, the contract is considered unfulfilled. Consequently, the contracting organization has the right to deduct VAT accrued and paid by it to the budget for the work initially delivered to the customer (clause 5 of Article 171, clause 4 of Article 172 of the Tax Code of the Russian Federation).

The tax deduction for VAT in this case is reflected in the debit of account 68 “Calculations for taxes and fees” in correspondence with the credit of account 91, subaccount 91-1.

After re-executing the work and handing it over to the customer, the organization again has an object of VAT taxation (clause 1, clause 1, article 146, clause 1, clause 1, article 167 of the Tax Code of the Russian Federation). The tax base is determined in the manner established by paragraph 1 of Art. 154 Tax Code of the Russian Federation.

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Corporate income tax

During the period when a defect is discovered, the cost of previously recognized income is included in tax accounting as part of non-operating expenses as a loss of previous tax periods identified in the current reporting (tax) period (clause 1, clause 2, article 265 of the Tax Code of the Russian Federation).

The amount of direct expenses related to work performed last year, for profit tax purposes, is taken into account as part of non-operating income as income from previous years identified in the reporting (tax) period (clause 10 of Article 250 of the Tax Code of the Russian Federation).

After repeating the work and handing it over to the customer, the organization recognizes revenue from the work (clause 1 of Article 249, clause 1 of Article 248, clause 3 of Article 271 of the Tax Code of the Russian Federation) and expenses associated with the performance of these works (taking into account the requirements Articles 318, 319 of the Tax Code of the Russian Federation).

As for losses from defects, for profit tax purposes they are classified as other expenses associated with production and sales (clause 47, clause 1, article 264 of the Tax Code of the Russian Federation).

At the same time, we note that, depending on the accounting policy of the organization for tax accounting purposes, losses from defects can be taken into account either as part of direct expenses or as part of indirect ones (clause 1 of Article 318 of the Tax Code of the Russian Federation) {amp}lt;*{amp}gt ;.

Other account correspondence schemes

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Classification

The organization attributes some expenses/income either to ordinary activities or to other expenses/receipts (account 90, 91 in accounting). Among them are remedies for:

1. Provision on a paid basis for temporary possession/use of own assets under a lease agreement.
2. Participation in the capital of third-party enterprises.
3. Providing, on a paid basis, rights that arise from patents for designs, inventions and other intellectual products.

The classification of these expenses/receipts is carried out in accordance with the activities of the enterprise, the type of income, the conditions for their receipt, etc. In many cases, such division is not accompanied by any difficulties. For example, income from ordinary activities may include:

• Revenue from product sales – for manufacturing companies.
• Profit from the sale of goods – for trading companies.
• Proceeds from the provision of transportation services - for transport enterprises and so on.

Breakdown by item

The above income is reflected in the account. 90 "Sales". As for expenses, expenses from ordinary activities are first shown on Db account. 20, 26, 44. They are subsequently written off to the DB account. 90. If an enterprise only rents out property or exclusively invests assets in the authorized capitals of other companies, etc., then such income will be income from ordinary activities. If any expenses/profits are recognized as other, then they are accounted for, respectively, in account 91. The financial result of the transactions performed is also determined according to it.

Clarification of concepts

It is worth noting that the term operating expenses/income was first used in the Financial Results Report and instructions on the rules for filling out reporting forms. These documents were approved by the relevant order of the Ministry of Finance. Until this point, all costs and revenues were clearly divided into the following groups:

1. From the sale of products (services or works).
2. From other sales (OS and other assets).
3. Non-operating expenses/income.

The sources for obtaining information about these costs and revenues were also clearly identified. Thus, for the first group, the count was used. 46, for the second – 47 and 48, for the third – 80. All receipts that were not related to the sale were non-operating. When the concepts of operating expenses/income were introduced, all this logic was broken. This was due to the fact that some income/costs that were not related to sales and, in fact, were non-operating, became operating. In particular, these include expenses/income related to:

• Renting out property.
• Write-offs of fixed assets due to their obsolescence.
• Maintenance of mothballed production facilities.
• Securities services and so on.

Existing subaccounts

Account 91 has several mandatory subaccounts in the following groups of income and expenses:

• 91.1 “Other income” - it records assets that are not the result of the main activity.
• 91.2 “Other expenses account” - expenses spent on operations not related to the main activity are reflected here.
• 91.3 “VAT” - serves to reflect value added tax.
• 91.9 “Balance of other income and expenses” - serves to reflect the balance of other income and expenses received in the reporting month.

Information reflected on account 91 1 and account 91 2 is accumulated over an annual period. Each month, a balance is determined from them, which is written off from subaccount 91.9 to account 99 “Profits and losses”. Therefore, account 91 always has a zero balance at the reporting date. At the end of the year, all subaccounts are closed to subaccount 91.9.

Analytical accounting should be kept separately for each type of income and expense. This should ensure the ability to identify the financial result of the company’s business activities separately for each operation.

Subaccounts

Difficulties of classification

However, there is no clear definition of operating income/expenses. The instructions for filling out reporting forms indicated that they include mainly costs and receipts from operations that are associated with the movement of property. But in this case, a contradiction arises, since there is no movement, for example, when renting out a building or maintaining a mothballed object. There is no definition of operating expenses/income in the PBU, in the methodological recommendations that explain the procedure for generating indicators in reporting. This is a fairly serious gap. It leads to unclear distinction between operating and non-operating income/expenses. As a result, some revenues and expenses are transferred from one category to another. As a result, when dividing, the accountant does not have to think logically, but study regulatory documents and find out which expenses/income the Ministry of Finance considers non-operating and which are operating.

Moment of revenue recognition

It has a big impact on your income. The procedure in accordance with which revenue is recognized is regulated in PBU 9/99, clause 12. Rent or license fees may not act as income from main activities. In this case, it is recognized in accounting in accordance with the assumption of temporary certainty of business events and the terms of the contract. To record revenue other than income from core activities, three conditions must be met simultaneously:

1. The company has the right to receive it. It may come from a corresponding agreement or be confirmed in another way.
2. The amount of revenue can be determined.
3. There is confidence that as a result of a particular operation there will be an increase in the company's economic benefits.

If the specified conditions are met, revenue is recognized in accounting from:

1. Providing temporary use/possession of the company's own assets for a fee.
2. Participation in the capital of other companies.
3. Granting for temporary use/possession of rights arising from patents for inventions, designs or other objects of intellectual work.
4. Sales of fixed assets and other assets other than money (except foreign currency), goods, products.

This category also includes interest received from providing the company’s funds for use. They are accrued for each expired reporting period in accordance with contractual terms. As for penalties, penalties, fines, and compensation for losses reimbursed to the organization, they are recognized in the time period in which the corresponding court decision was made. Amounts of deposits and accounts payable that have expired are recorded in the period in which it ended. The results of revaluation of assets in accounting are recognized in the period to which the date on which the revaluation was carried out relates. Other receipts are recorded as they are identified (formed).