I. Profit and loss adjustment of future events:
If the previous year's profit and loss adjustment events of an enterprise belong to the events after the balance sheet date, that is, the events that occurred between the annual balance sheet date and the financial report approval date, they should be adjusted according to relevant regulations. Accounting procedures are as follows:
1. Carry forward the amount of profit and loss to be adjusted to the account of "Profit and Loss Adjustment in Previous Years", and record it as a credit when the profit should be increased and as a debit when the profit should be decreased.
2. Adjust the income tax. When paying income tax, debit the account of "adjustment of profit and loss in previous years" and credit the account of "tax payable-income tax payable"; Make the opposite entry when offsetting the overpaid income tax.
II. Profit and loss adjustment for non-future events:
If the previous year's profit and loss adjustment of the enterprise does not belong to the event after the balance sheet date, it should be handled according to the relevant regulations. Accounting procedures are as follows:
1. Carry forward the amount of profit and loss to be adjusted to the account of "Profit and Loss Adjustment in Previous Years", and the adjustment method is the same as that for future events.
2. Transfer the balance of the previous year's profit and loss adjustment account to the current year's profit account. Relevant tax adjustment shall be carried out at the same time when it is incorporated into the current period-end income tax calculation; The adjustment of surplus reserves shall be incorporated into the profit distribution at the end of the current period.
20 14 years to reduce income, need to rush back:
Debit: Bank deposit-1000
Credit: adjustment of profit and loss in previous years-1000
20 14 underpaid income tax:
Debit: profit and loss adjustment of previous years 1000* income tax rate
Loan: tax payable-income tax payable 1000* income tax rate
When the profit and loss of the previous year is adjusted to the credit balance, the accounting entry is: Debit: Profit adjustment loan of the previous year: profit distribution-undistributed profit. When the profit and loss of the previous year is adjusted to debit balance, the accounting entry is: debit: profit distribution-undistributed profit credit: profit and loss adjustment of the previous year.
Extended data
Connotation of accounting subjects adjusted by profit and loss in previous years
1, "adjustment of profit and loss in previous years" refers to the adjustment made by an enterprise to the amount of profit and loss over-calculated or under-calculated in previous years, so that it will not affect the total profit of this year.
2. "Profit and loss adjustment in previous years" mainly adjusts important errors in previous years and events after the balance sheet date. It is neither a profit and loss account nor an equity account. As a transitional account of profit and loss items, its balance is finally transferred to the "profit distribution-undistributed profit" account.
3. The amount of "profit and loss adjustment in previous years" is not reflected in the current income statement, but in undistributed profits.
4. There is no balance after the "previous year's profit and loss adjustment" is finally carried forward.
Baidu Encyclopedia-Adjustment of profit and loss in previous years