How should the balance sheet and income statement reflect the profit and loss of the enterprise?

1. The "undistributed profit" item in the balance sheet reflects the undistributed profit of the enterprise. It should be calculated according to the balance of the subjects of "profit this year" and "profit distribution". Uncompensated losses are marked with "-"in this project.

2. The "undistributed profit" figure on the balance sheet reflects the accounting figure. In the annual income tax report, "make up for the losses of previous years" is filled in according to the figures after tax adjustment. The two are inconsistent, and the accountant does not need to handle the accounts or adjust the figures.

3. The undistributed profit on the balance sheet is the balance of the reporting year, so it should be equal to the net profit of the income statement in the first year of operation (the first year of accounting), but it will not be equal after the second year. Because there are undistributed profits from previous years.