Profit available for distribution = net profit realized in the current year+undistributed profit at the beginning of the year (or loss not made up at the beginning of the year)+other increase.
Profits available for distribution shall be distributed in the following order:
(1) Withdraw the statutory surplus reserve;
According to the provisions of the Company Law, a company-owned enterprise shall draw legal surplus reserve at 65,438+00% of its net profit (minus losses in previous years). The proportion of legal surplus reserve of an unincorporated enterprise can exceed 65,438+00% of its net profit.
When the accumulated amount of statutory surplus reserve fund reaches 50% of the registered capital, it may not be withdrawn.
Note: The undistributed profit at the beginning of the year should not be included in the calculation of the extraction base of statutory surplus reserve.
① If the undistributed profit at the beginning of the year is positive, that is, the accumulated profit over the years.
Withdrawn surplus reserve = net profit × withdrawal ratio of surplus reserve
② If the undistributed profit at the beginning of the year is negative, that is, accumulated losses over the years.
Withdrawal of surplus reserve = (net profit-uncompensated losses at the beginning of the year) × withdrawal ratio of surplus reserve
(2) Withdraw any surplus reserve;
Companies and enterprises may withdraw surplus reserves according to the resolution of the shareholders' meeting.
The difference between statutory surplus reserve and arbitrary surplus reserve lies in their different basis, the former is based on national laws and regulations; The latter is determined by the authority of the enterprise.
(3) Distribution of profits to investors
Surplus reserves can be used to cover losses, increase capital, distribute cash dividends or profits, etc.
After the above distribution:
Undistributed profit at the end of the period
= distributable profit-withdrawal of surplus reserve-distribution of profit to investors
= undistributed profit at the beginning of the year+net profit realized in the current period+other transfers-withdrawal of surplus reserve-distribution of profits to investors.
How to calculate the profit distribution to investors?
The distributable profit of an enterprise is equal to the net profit plus the undistributed profit at the beginning of the year plus the surplus reserve to cover losses and other adjustment factors.
Profit available for distribution refers to the profit available for investors after deducting the after-tax amount such as surplus reserve.
The undistributed profit at the end of the year is the profit that can be distributed by investors after deducting the preferred stock dividend payable, withdrawing any surplus reserve, paying ordinary dividends and increasing paid-in capital.
How to make accounting entries when an enterprise decides to distribute profits to investors?
Profit distribution refers to the distribution of the net profit realized by enterprises between enterprises and investors in accordance with the distribution form and order stipulated by the national financial system.
The process and result of profit distribution is an important issue related to whether the legitimate rights and interests of owners can be protected and whether enterprises can develop stably for a long time. Therefore, enterprises must strengthen the management and accounting of profit distribution. The main body of enterprise profit distribution is investors and enterprises, and the object of profit distribution is the net profit realized by enterprises. Profit distribution time is the time to confirm profit distribution, to fulfill the obligation of profit distribution, and to make the decision of profit distribution internally and externally.
Withdraw (the enterprise decides to distribute profits to investors)
Debit: Profit Distribution-Withdraw Profit Payable
Loan: profit payable
leave behind
Debit: Profit Distribution-Undistributed Profit
Credit: Profit Distribution-Withdrawal of Profit Payable
distribute
Borrow: profit payable
Loan: bank deposit (or cash on hand)
How to calculate the profit distribution of investors? Bian Xiao compiled the calculation formula of distributable profit for everyone. In the calculation of distributable profits, he also explained the calculation of extracting statutory surplus reserve, extracting arbitrary surplus reserve and distributing profits to investors in order. If you have a bad memory, you should keep all the information in case of emergency.