What is the difference between profit distribution and undistributed profit, and this year's profit?

1. Accounting elements: assets, liabilities, owners’ equity, revenue, expenses, and profits.

The current year's profit is a profit element in the classification of accounting elements. Through the summary and carryover of profit and loss accounts, the final accounting is profit. After it is carried forward to profit distribution at the end of the year, there will be no balance in the current year's profit account.

In the accounting classification, it belongs to the owner's equity category. In the balance sheet, the current year's profit is included in the undistributed profits in the owner's equity.

The first digit of the account code is the same as the owner's equity code.

2. Different definitions 1. Profit distribution is the distribution between the state and enterprises, and between enterprises according to regulations, of the total profits realized by an enterprise within a certain period (usually a year) and the profits shared from joint ventures.

The profits retained by the enterprise are used as the base, and the retained profits of the enterprise are transferred to various special funds according to the prescribed ratio.

2. Undistributed profits are profits that an enterprise reserves for distribution or distribution in future years.

That is to say, the balance after the first point of profit distribution is the undistributed profit.

3. The "Profit for the Year" account, in terms of economic content, belongs to the owner's equity category, and in terms of purpose and structure, it belongs to the calculation category of financial results.

In the daily accounting of the enterprise, all expenses and income incurred have been included in the relevant income and expense accounts.

On this basis, at the end of the period, all income can be compared with all expenses to determine the profit (or loss) realized during the period.

3. Different subject levels 1. In addition to undistributed profits, the profit distribution account also has other transfers, withdrawals from statutory surplus reserves, withdrawals from discretionary surplus reserves, withdrawals from reserve funds, withdrawals from enterprise development funds, return of profits to investments, and preferred shares payable.

Dividends, common stock dividends payable, common stock dividends converted into capital (or equity), etc.

2. In order to enable the "Profit for the Year" account to accurately and timely provide the current profit amount without increasing the workload of preparing entries, the unit adopts a multi-column format for the "Profit for the Year" account page in actual work.

Convert the "Main Business Income", "Main Business Costs", "Main Business Taxes and Surcharges" and other accounts from the first-level accounts to the second-level accounts under "Profit for the Year", reducing the number of carry-overs.

workload.

However, the product detailed accounts under "Income" and "Cost" still need to be registered according to quantity and amount.

3. This year’s undistributed profits are obtained based on this year’s profits and are carried forward from this year’s profits.

When making a profit, the balance of the current year's profits is on the credit side. It needs to be carried forward to undistributed profits at the end of the year. After the carryover, there will be no balance in the current year's profits.

4. Different accounting applications 1. Profit distribution refers to the distribution of profits realized by an enterprise in the current year or the compensation for losses incurred in the current year in accordance with relevant regulations.

At the end of the year, if the account has a debit balance, it represents the accumulated unrecovered losses over the years; if it has a credit balance, it represents the undistributed profits over the years.

2. Undistributed profit is a secondary account of profit distribution.

Undistributed profit = undistributed profit at the beginning of the period + profit for the year - profit distribution = undistributed profit at the end of the period in the profit distribution statement.

3. The current year's profit is a cumulative account. Monthly income and costs are carried forward to the current year's profit. If the cost is greater than the income, it is a loss. The net profit of the current month is on the debit side. Otherwise, if the income is greater than the cost, it is a loss.

Profit, the current month's net profit for the year is on the credit side.

Whether the balance of this year's profit is on the debit or credit side depends on the balance of this year's profit from the previous month.

Extended information: Accounting treatment of this year's profit 1. This account calculates the net profit (or net loss incurred) realized by the enterprise in the current period.

2. When an enterprise carries forward profits at the end of the period (month), the amount of each profit and loss account should be transferred to this account and the balance of each profit and loss account should be balanced.

After the carry-forward, the credit balance of this account is the net profit realized in the current period; the debit balance is the net loss incurred in the current period.

3. At the end of the year, the net profit realized this year after offsetting the current year's income and expenses should be transferred to the "Profit Distribution" account, debit this account, and credit the "Profit Distribution - Undistributed Profit" account;

For example, make the opposite accounting entry for a net loss.

There should be no balance in this account after the carry-forward.

The balance of the profit account for the year represents the cumulative net profit or net loss realized during the year. This account is not usually carried forward. It is transferred to the profit distribution-undistributed profit account in one go at the end of the year. Debit: profit distribution for the year: profit distribution-undistributed

If the distributed profit is a loss, the opposite entry will be made.