When the general surplus reserve is used to cover losses. Non-joint stock limited companies should debit the title of "surplus reserve-general surplus reserve" and credit the title of "profit distribution-surplus reserve to make up for losses"; A joint stock limited company debits the title of "surplus reserve-statutory (or arbitrary) surplus reserve" and credits the title of "profit distribution-surplus reserve to increase".
Profit distribution belongs to the owner's equity category, with the credit indicating increase, the debit indicating decrease and accounting treatment. The lender reflects the net profit of this year carried forward from the profit account of this year at the end of the year and the amount of surplus reserve to cover the losses. As the credit balance, the profit distribution at the end of the period indicates the accumulated undistributed profits of the enterprise.
"Profit distribution" belongs to the category of owners' equity, and its debit reflects the distribution of enterprise profits, including the withdrawal of surplus reserve (calculated according to the two detailed accounts of "legal surplus reserve" and "arbitrary surplus reserve"), cash dividend or profit payable (calculated according to the detailed account of "cash dividend payable" or "profit payable"), and the year-end net loss carried forward by this year's profit account (debit "profit distribution-"
The "profit distribution" lender reflects the after-tax net profit of this year carried over from the profit account of this year at the end of the year and the amount of surplus reserve used to make up for losses. Other secondary subjects under the profit distribution at the end of the period are carried forward to the detailed account of profit distribution-undistributed profits, and there is no balance in other secondary subjects after the carry-forward, that is, the ending balance of profit distribution subjects, that is, the ending balance of profit distribution-undistributed profits, which represents the accumulated undistributed profit amount since the establishment of the enterprise; The profit at the end of the period is allocated as the debit balance, which indicates the accumulated losses of the enterprise.