Undistributed profit has two meanings: one is the profit reserved for future years; Second, there is no profit specified for a specific purpose. Compared with other parts of owners' equity, enterprises have greater autonomy in the use of undistributed profits.
Distribution can be continued in future years, and it is an integral part of owners' equity before distribution. In terms of quantity, undistributed profit is the balance of undistributed profit at the beginning of the period plus net profit realized in the current period minus extracted surplus reserve and distributed profit.
When accounting for undistributed profits, we should pay attention to the following issues:
(1) Undistributed profit accounting is conducted through the "Profit Distribution-Undistributed Profit" account.
(2) Undistributed profit accounting is generally carried out at the end of the year. At the end of the year, the net profit realized this year will be carried forward to the credit of "profit distribution-undistributed profit". At the same time, transfer the profit distribution amount of this year to the debit of the "profit distribution-undistributed profit" account.
(3) The credit ending balance of the "profit distribution-undistributed profit" carried forward at the end of the year reflects the accumulated undistributed profit, and the debit ending balance reflects the accumulated uncompensated loss.
Baidu encyclopedia-undistributed profit