The "Profit and Loss Adjustment of Previous Years" account should be carried forward to the "Profit Distribution - Undistributed Profit" account.

1. When the profit and loss of the previous year is adjusted to the credit balance, the accounting entries are: Debit: Adjustment of the profit and loss of the previous year? Credit: Profit distribution - undistributed profits 2. When the profit and loss of the previous year is adjusted to the debit balance, the accounting entry is:

Debit: Profit distribution - undistributed profits? Credit: Previous year's profit and loss adjustment Extended information: Accounting processing ① The surplus reserve withdrawn by the enterprise in accordance with regulations is debited to this account (withdrawal to statutory surplus reserve, withdrawal to discretionary surplus reserve),

The account "surplus reserve - statutory surplus reserve, discretionary surplus reserve" is credited.

The reserve funds, enterprise development funds, employee rewards and welfare funds withdrawn by foreign-invested enterprises in accordance with regulations are debited to this account (withdrawal of reserve funds, withdrawals of enterprise development funds, withdrawals of employee rewards and welfare funds), and credited to "surplus reserve——"

"Reserve Fund, Enterprise Development Fund", "Employee Salary Payable" and other subjects.

② For cash dividends or profits distributed to shareholders or investors by resolution of the shareholders' meeting or similar organization, this account (cash dividends or profits payable) will be debited and the "dividends payable" account will be credited.

Stock dividends distributed to shareholders upon resolution by a shareholders' meeting or similar organization should be debited to this account (dividends converted into equity) and credited to the "share capital" account after the capital increase procedures are completed.

③ To use the surplus reserve to make up for losses, debit the "surplus reserve - statutory surplus reserve or discretionary surplus reserve" account and credit this account (surplus reserve to make up for losses).

④ At the end of the year, the enterprise should transfer the net profit realized throughout the year from the "Profit for the Year" account to the "Profit Distribution - Undistributed Profit" account, and transfer the balance of other relevant detailed accounts under the "Profit Distribution" account to

Transfer to the "Undistributed Profit" detail account.

After carry forward, the credit balance of the "Undistributed Profit" detail account is the amount of accumulated undistributed profits; if it is a debit balance, it represents the amount of accumulated uncompensated losses.

After the carry-forward, except for the "undistributed profits" detailed account, there should be no balance in other detailed accounts of this account.