How to use the accounting entries of undistributed profits? Under what circumstances?

Undistributed profit is the undistributed profit of an enterprise. Distribution can be continued in future years, and it is an integral part of owners' equity before distribution. Its main purpose is to adjust the "profit this year" subject.

"Undistributed profit" detail account: accumulated undistributed profit or accumulated uncompensated loss at the end of accounting year.

At the end of the year, the enterprise will realize the annual net profit (or loss) from "profit of the year" to "profit distribution-undistributed profit" detailed account:

1. If it is net profit, then:

Borrow: "profit this year"

Loan: "profit distribution-undistributed profit"

2. If it is a loss, then:

Borrow: "Profit Distribution-Undistributed Profit"

Loan: "this year's profit"

3. At the same time, the balance of other detailed accounts in the Profit Distribution account will also be transferred to the Profit Distribution-Undistributed Profit account.

Borrow: "Profit Distribution-Undistributed Profit"

Loan: "profit distribution"

The subjects belong to the following detailed subjects: withdrawal of statutory surplus reserve, withdrawal of statutory public welfare fund, withdrawal of reserve fund, withdrawal of enterprise development fund, withdrawal of employee bonus and welfare fund, return on profit investment, preferred stock dividend payable, withdrawal of arbitrary surplus reserve, common stock dividend payable and capitalized common stock dividend.

Borrow: "Profit Distribution-Other Transfers"

Loan: "profit distribution-undistributed profit"

After year-end carry-over, the credit balance of the "Profit Distribution-Undistributed Profit" detail account is the accumulated undistributed profit of the enterprise, and if it is the debit balance, it is the accumulated uncompensated loss of the enterprise.

Note that there is no balance in other detailed accounts of "Profit Distribution" at the end of the year.

Extended data:

(1) Contents of retained earnings

Surplus reserves and undistributed profits are collectively referred to as retained earnings.

Surplus reserve is divided into statutory surplus reserve and arbitrary surplus reserve. Enterprises have great autonomy in the use and distribution of undistributed profits.

(II) Carry-forward this year's profit

1. Profit for this year

Debit: this year's profit

Loan: Profit Distribution-Undistributed Profit

2. Loss this year?

Debit: profit distribution-undistributed profit

Loan: profit this year

(3) Extraction of surplus reserve

Debit: profit distribution-withdrawal of statutory surplus reserve/withdrawal of arbitrary surplus reserve.

Loan: surplus reserve-statutory surplus reserve/arbitrary surplus reserve?

Debit: profit distribution-undistributed profit

Credit: profit distribution-withdrawal of statutory surplus reserve/withdrawal of arbitrary surplus reserve.

Note that the legal person enterprise shall withdraw the statutory surplus reserve at 10% of the after-tax profit (after making up the loss). When the accumulated amount of the statutory surplus reserve fund exceeds 50% of the registered capital, the statutory surplus reserve fund can no longer be withdrawn.

(4) The shareholders' meeting announced the cash dividend.

When the shareholders' meeting is announced:

Borrow: profit distribution-cash dividend payable Loan: dividend payable

Debit: profit distribution-undistributed profit

Credit: profit distribution-cash dividends payable

When actually distributed:?

Borrow: dividend payable.

Loans: bank deposits

(5) The shareholders' meeting announces the stock dividend.

There is no need to make accounting entries when the shareholders' meeting is announced.

Stock dividends actually paid:

Borrow: profit distribution-dividend to share capital.