Basic standard payroll entries. Basic standard entries for wages Debit 20 credit 10.04 means

In the process of carrying out activities, an economic entity produces a number of certain production costs, as a result of which it is planned to receive income. These costs involve a time dimension. To account for them, account 20 is used in accounting; here, the amounts of expenses are accumulated and, when the process is completed, are written off to the appropriate account.

Existing standards establish that all costs for the production of products, provision of services or performance of work until the completion of the established process are subject to reflection on account 20.

Here the accumulation of expenses associated with the main activity for which the company was created occurs. Therefore, it is called account 20 “Main production”.

All costs accumulated on this account are called work in progress. This is due to the fact that the invoice reflects them until the moment when they form the cost of the product.

This account is used in almost every enterprise, regardless of the field of activity, with the exception of trade. These can be industrial, agricultural enterprises performing construction and installation work, transport and communications, etc.

If a company creates finished products, then closing account 20 means that it is produced. For works and services, closing the 20th account implies that the entity has provided or fulfilled the obligations stipulated by the agreements.

Attention! For small businesses, a simplified accounting procedure is provided, which implies that all company expenses should be taken into account in account 20. Other accounts (23,25,26) are not applied in this case.

Accounting for information about incurred costs on account 20 is carried out on the basis of supporting documents and is used by management to manage the business entity.

What is included in the account

Account 20 reflects all costs associated with the main activity of the company.

Therefore, the following expenses should be taken into account on the account:

• Material costs are the cost of raw materials, materials, semi-finished products, fuel and others spent on production, that is, what forms the basis of the finished product.
• Costs of services and work of third-party companies involved in the creation of the finished product.
• Remuneration of key personnel with mandatory contributions to extra-budgetary funds.
• Depreciation charges for fixed assets involved in the creation of the finished product.
• Indirect costs that are superimposed on the cost of the finished product - costs of auxiliary production, non-production, factory overhead, sales costs, etc. - they should be reflected on account 20 in the case when the accounts for their accounting are closed at the end of the reporting period.
• Other costs for the production of finished products (taxes, duties, etc.)

The first items relate to direct costs - those that are directly related to production. The cost of the above expenses accumulates while the production process is taking place, and upon its completion they are all written off from account 20 to the cost of the finished product, work, service.

Attention! If the product did not pass technical control and was recognized as a manufacturing defect, the costs of its production previously recorded on account 20 should be written off to the production defect account (usually 28).

Characteristics of account 20 “main production”

Account 20 according to the current one is active, since it reflects the company’s assets. It has a debit balance reflecting the cost of work in progress, that is, costs that have not yet formed the cost of a product or service.

Debit turnover reflects the expenses incurred by a business entity for the production of finished products, provision of services or performance of work. The credit of the account records the cost of production written off for finished products.

The balance at the end of the reporting period is determined by summing the balance at the beginning and the turnover on the debit side of the account and subtracting from it the turnover on the credit side of the account.

Attention! Many business entities, especially those who provide services and work, have a balance of 0 at the end of the reporting period for account 20.

However, this rule does not apply to organizations engaged in production activities. For them, this indicator reflects the products launched into production.

According to financiers, from this year, enterprises are required to create reserves for vacation pay for accounting purposes. Let's consider the rules for using such reserves.

Everything remains unchanged in tax accounting

As before, in tax accounting for the payment of vacation pay, a reserve can be created at the discretion of the enterprise.

If a reserve is not created, vacation pay amounts are taken into account for profit tax purposes as labor costs.

Moreover (using the accrual method) it is proportional to the vacation days falling in the corresponding months.

Therefore, for example, if in August an employee was paid vacation pay for the period from August 15 to September 11, it is impossible to take into account the entire amount of payment in August. This month, only that part of the vacation pay that falls on the days of rest provided for August should be included in expenses.

And the rest of the vacation pay must be recognized in September. This is stated, in particular, in the letter of the Ministry of Finance of Russia dated June 14, 2011 No. 07-02-06/107.

But in accounting, vacation pay now needs to be calculated taking into account PBU 8/2010 “Estimated liabilities, contingent liabilities and contingent assets” (approved by order of the Ministry of Finance of Russia dated December 13, 2010 No. 167n). Thus, the organization’s obligations in connection with the emergence of employees’ right to paid leave are estimated (letter of the Ministry of Finance of Russia dated June 14, 2011 No. 07-02-06/107).

In other words, if previously enterprises could decide for themselves whether to form them or not, now only small enterprises can not do this (then they will take vacation pay into account in the labor costs of the month in which they are accrued).

However, a specific methodology for the formation of valuation reserves, unfortunately, has not been established, so the enterprise needs to develop it independently and consolidate it in its accounting policies.

The ideal option would be to form a reserve at the end of each month for each employee based on the number of rest days he earned during that month and his average earnings, determined in the prescribed manner.

But this is very labor-intensive, and the only benefit is to correctly generate reporting indicators. Therefore, the organization has the right to provide for other methods of forming an estimated liability. The main thing is to justify and consolidate a specific procedure in the accounting policy.

Example 1.

The accounting policy of Krasnoderevshchik LLC stipulates the following methodology for the formation of estimated liabilities in relation to payment of vacations.

Since all employees are entitled to vacation pay for 28 calendar days, the estimated liability is formed evenly throughout the year based on the annual wage fund as follows:

– the expected annual amount of vacation pay is calculated (by dividing the annual wage fund by 12 months and by 29.4 and multiplying the result by 28);

– the monthly amount of increase in the valuation reserve is determined (the calculated expected annual amount of vacation pay is divided by 12).

Let us assume that the annual wage fund for workers of Krasnoderevshchik LLC for 2011 is 2,600,000 rubles.

Then the expected annual amount of vacation pay for this category of employees is equal to:

RUB 2,600,000 : 12 months : 29.4 × 28 days = 206,349.21 rub.

And the monthly amount of the created valuation reserve will be:

RUB 206,349.21 : 12 months = 17,195.77 rub.

Please note: regarding whether it is also necessary to reserve the amount of insurance premiums from vacation pay, experts have differing opinions.

Some suggest forming an estimated liability for the entire amount, including both the vacation pay itself and the insurance premiums from it. But there is another point of view.

The fact is that the obligation to pay vacation pay actually arises for the enterprise as a result of past events - for each month worked, employees earn the right to a certain number of days of vacation (in case of dismissal, compensation or vacation followed by dismissal).

But the obligation to pay insurance premiums arises only when payments are actually accrued in favor of employees. That is, until vacation pay is accrued, the company does not need to pay insurance premiums on it.

Therefore, it is necessary to form an estimated liability only for the amount of the vacation pay itself, and insurance premiums are not reserved in accounting, they are recognized as expenses at a time as they are actually accrued.

Estimated liabilities should be taken into account in the “Reserves for future expenses” account.

When creating estimated liabilities for the payment of vacation pay, their value is included in expenses for ordinary activities (in the debit of accounts , , ...).

Example 2.

Let's continue to look at example 1.

Every month during 2011, the accountant creates (increases) an assessment reserve in relation to upcoming expenses for paying vacation pay to staff by writing:

DEBIT 20 CREDIT 96

– 17,195.77 rub. – the estimated reserve for the payment of vacation pay to workers has been increased.

Let’s assume that in August vacation was granted to two employees and they were accrued vacation pay in the amount of 43,000 rubles.

Let's also assume that:

– standard deductions for these employees are no longer provided;

– insurance premiums (including contributions for injuries) are paid at a rate totaling 34.2 percent.

The accountant reflected the accrual and payment of vacation pay as follows:

DEBIT 96 CREDIT 70

– 43,000 rub. – vacation pay is accrued (part of the estimated liability is written off to account for the recognition of accounts payable for the payment of vacation pay);

DEBIT 20 CREDIT 69

– 14,706 rub. (RUB 43,000 × 34.2%) – insurance premiums were accrued for the amount of employees’ vacation pay;

DEBIT 70 CREDIT 68

– 5590 rub. (RUB 43,000 × 13%) – personal income tax is withheld from the amount of vacation pay;

DEBIT 70 CREDIT 50

– 37,410 rub. (43,000 – 5590) – vacation pay was paid.

But the main difference between the new estimated liabilities and the old reserves for the payment of vacation pay is that if the funds of the estimated liability are insufficient, the enterprise’s expenses for vacation pay are reflected in accounting in the general manner. In other words, there cannot be a debit balance on the account.

That is, if the amount of vacation pay accrued in the current month exceeds the amount of the estimated liability created by that moment, an entry is made to the debit of the account only for the amount that is in this account, and the difference (excess) is charged directly to the debit of the enterprise’s cost accounting accounts.

Accordingly, in the future, the amount of the estimated liability created in the following months should be adjusted.

After all, if vacation pay has already been paid to someone, the obligation for it will no longer be formed in the current year.

Example 3.

Let's continue to look at the previous examples.

Let's assume that in September vacation pay was accrued to employees in the amount of 115,000 rubles.

Prior to this, for the period from January to August inclusive, the estimated liability (account credit turnover) was formed in the amount of:

RUB 17,195.77 × 8 months = 137,566.16 rub.

Thus, in August the estimated liability in the amount of RUB 43,000 was already used.

This means that the balance of unused estimated liabilities (account balance as of September 1, before accrual of vacation pay in September) is:

RUB 137,566.16 – 43,000 rub. = 94,566.16 rub.

And the amount of vacation pay accrued in September is 115,000 rubles. As we can see, it exceeds the amount of the generated estimated liability. This means that the accountant needs to accrue vacation pay in September like this:

DEBIT 96 CREDIT 70

– 94,556.16 rub. – vacation pay was accrued within the amount of the previously formed estimated liability (the estimated liability was written off to account for the recognition of accounts payable for the payment of vacation pay);

DEBIT 20 CREDIT 70

– 20,433.84 rub. (115,000 – 94,556.16) – vacation pay was accrued in excess of the amount of the previously formed estimated liability;

DEBIT 20 CREDIT 69

– 39,330 rub. (RUB 115,000 × 34.2%) – insurance premiums are accrued for the amount of vacation pay;

DEBIT 70 CREDIT 68

– 14,950 rub. (RUB 115,000 × 13%) – tax is withheld from the amount of vacation pay;

DEBIT 70 CREDIT 50

– 100,050 rub. (115,000 – 14,950) – vacation pay was paid.

In addition, in the future it is necessary to take into account the fact that some employees have already received vacation pay in excess of the amount of the previously formed estimated liability. That is, deductions should become smaller.

The validity of recognition and the amount of the estimated liability is checked at the end of the year, as well as upon the occurrence of new events related to this liability. In the end it could be:

– increased in the manner established for the recognition of an estimated liability;

– reduced in the manner established for writing off an estimated liability;

– remain unchanged;

- completely written off.

Excess amounts of the reserve are included in other income of the enterprise.

Important to remember

When creating a reserve for paying vacations to employees, it is more profitable for an enterprise to choose for accounting purposes the same procedure for its formation as in tax accounting. True, if the reserve funds turn out to be insufficient, then the amount of excess vacation pay in accounting can be written off as expenses immediately, and for profit tax purposes - only at the end of the year based on the results of the inventory.

Accounting account 20 is the active calculation account “Main production”. Using simple examples for dummies, let's look at typical transactions for account 20 in accounting, as well as what transactions are used to close account 20.

Manufacturing enterprises use account 20 to record production costs, namely the costs of creating new products (services, works). In addition to costs, account 20 also reflects the material value of work in progress:

Determination of production costs

Production costs include direct costs attributable to the production of specific products, services provided or work of the main activity.

The following types of direct costs can be distinguished:

• Expenses for the purchase of raw materials for production and materials for the provision of works and services;
• Remuneration of production workers;
• Depreciation and repair of production fixed assets;
• Losses from marriage;
• Modernization, introduction of new technologies;
• Other costs of the production process.

Important! At the end of the reporting period or where there is no more detailed division (for example, auxiliary production and others), account 20 also displays:

• Expenses of auxiliary and service production;
• Indirect costs for the management and maintenance of main production.

Definition of work in progress (WIP)

Work in progress includes:

• Material assets that are in production or processing, as well as accepted for production, but not yet participating in the production process;
• Unshipped released products to storage warehouses.

To determine the amounts of work in progress, first describe all of the above material assets at the end of the reporting period, and then establish their valuation.

Account 20 Main production

Main properties of account 20 “Main production”:

• Only the valuation is taken into account;
• It is active and does not have a negative balance at the end of the period, but may have a positive balance, which is a cost indicator of work in progress;
• In addition to synthetic accounting, analytical accounting is also carried out in the context of types of products, costs (estimates) and by divisions of the organization.

Correspondence 20 accounts in accounting

Account 20 “Main production” corresponds with the following accounts:

Table 1. By debit of account 20:

Dt	CT	Wiring Description
20	02	Accrual of depreciation of fixed assets
20	04	Introduction of new technologies into production
20	05	Calculation of depreciation of intangible assets
20	10	Write-off of materials, inventory, workwear and other things for production
20	16	Variance in the cost of materials written off for production
20	19	Non-refundable VAT on works (services) is included in costs
20	21	Write-off of semi-finished products for production purposes
20	23	Auxiliary production costs written off
20	25	General production costs taken into account
20	26	General business expenses taken into account
20	28	defects are included in production costs
20	40, 43	Manufactured products are written off for production needs or returned for revision
20	41	Goods written off for production needs
20	60	The work of third parties is taken into account in production costs
20	68	Amounts of taxes and fees written off for production needs
20	69	Insurance premiums for production workers have been calculated
20	70	Wages of production workers accrued
20	71	Accountable amounts were paid for production needs
20	73	Compensation to an employee for production costs (for example, a personal car, telephone calls)
20	75	The founders contributed the costs of the main production to the authorized capital
20	76.2	Claims against contractors and downtime
20	79	Production costs associated with the organization's divisions on a separate balance sheet
20	80	Acceptance of work in progress for accounting as a contribution to the authorized capital
20	86	Acceptance of work in progress for accounting as targeted financing
20	91.1	Excess work in progress was capitalized
20	94	Shortages and losses within the norms in the production process, without blame
20	96	The amount of reserves in production costs is taken into account
20	97	Write-off of a share of future expenses for production expenses

Table 2. For account credit 20:

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Dt	CT	Wiring Description
10	20	Returnable materials or own material assets (for example, containers) have been capitalized
15	20	Write-off of works, services of main production
21	20	Semi-finished products are capitalized
28	20	Costs written off to correct defects
40 (43)	20	The actual cost of manufactured products is written off (produced products are capitalized)
45	20	Transfer of products (works, services) to third parties
76.01	20	Insurance compensation costs written off
76.02	20	Reduced costs for the amount of claims made to contractors and downtime
79	20	Costs written off due to targeted financing of main production
90.02	20	The cost of services sold is written off
91.02	20	Costs in connection with the disposal of other assets of the organization (fixed assets, materials, etc.) or loss of work in progress due to emergencies are included in other expenses
94	20	Shortages in main production reflected
99	20	uncompensated losses due to extraordinary circumstances are included in losses

Closing 20 accounts

Important! The method of closing account 20 should be specified in the accounting policy, and it should also indicate the distribution base, if necessary.

There are 3 options for closing an account:

• Direct method;;
• Intermediate method
• Direct sales of manufactured products.

Important! Before closing account 20, it is necessary to allocate the balances of work in progress.

Direct method

During the reporting period, the actual price is not known, and manufactured products are accounted for at conditional prices, for example, at planned cost.

When closing the month, the cost of manufactured products is adjusted to the actual cost.

Closing account 20 directly - postings:

Important! When using this method, it is impossible to account for manufactured products at actual cost during the month.

Intermediate method

This method uses additional account 40 “Product Output”, which records deviations of the planned cost from the actual cost. For credit - planned cost, for debit - actual cost.

At the end of the month, the total amount of deviations is written off proportionally to account 43 “Finished products” and 90.02 “Cost of sales”.

Closing account 20 in an intermediate way - manual postings:

Dt	CT	Wiring Description
43	40	Finished products were capitalized at planned cost
90.02	43	Sold products written off at planned cost
At the end of the month
40	20	The actual cost of manufactured products is written off
43	40	Adjusting entries that bring the planned cost to the actual cost
90.02	40

Direct sales of manufactured products

In this option, manufactured products are not stored, but are sold immediately from production. In this case, production costs are written off to cost of sales. Services are closed in this way.

Closing account 20 when selling services - manual postings:

Dt	CT	Wiring Description
At the end of the month
90.02	20	Actual cost written off to cost of sales

Examples of using account 20 in accounting

Let us consider the procedure for using account 20 “Main production”, as well as its closure using examples.

Example 1. Direct closing method

The Trigolki enterprise produces evening dresses. The accounting policy stipulates that product output is accounted for on account 43 “Finished products”, without taking into account account 40 “Product output”. During the month, 20 pieces of products were produced and 10 of them were sold at a price of 5,000.00 rubles. The planned cost was RUB 3,000.00. per piece

The amount of production costs is 70,000.00 rubles. of them:

• Material expenses – RUB 55,000.00;

Postings to account 20 in the form of a table according to the example:

date	Account Dt	Kt account	Amount, rub.	Wiring Description	A document base
Production costs
10.10.2016	20	10	55 000,00		Requirement invoice
Output
16.10.2016	43	20	60 000,00
Sales of finished products
20.10.2016	62	90.01	59 900,00	Sales proceeds	TORG-12
20.10.2016	90.03	68	9 900,00	VAT charged
20.10.2016	90.02	43	30 000,00
31.10.2016	20	70	10 000,00	Salary accrued
31.10.2016	70	68	1 300,00	Personal income tax withheld
31.10.2016	20	69	3 020,00	Insurance premiums accrued
Closing the month
31.10.2016	20	02	1 473,41
31.10.2016	43	20	10 000,00
31.10.2016	90.02	43	5 000,00

Example 2. Intermediate closing method

The Trigolki enterprise produces evening dresses. The accounting policy stipulates the use of account 40 “Product Output”. During the month, 10 pieces of products were produced and 7 of them were sold at a price of 4,500.00 rubles, VAT in total. The planned cost was RUB 2,700.00. per piece

The amount of production costs is 30,393.41 rubles. of them:

• Material expenses - 15,900.00 rubles;
• The amount of depreciation is RUB 1,473.41;
• Remuneration and contributions – RUB 13,020.00.

Solution to the example with transactions in the form of a table:

date	Account Dt	Kt account	Amount, rub.	Wiring Description	A document base
Production costs
10.10.2016	20	10	15 900,00	Raw materials written off for production process	Requirement invoice
Output
16.10.2016	43	40	27 000,00	Production of evening dresses (at planned cost)	Production report, receipt order (when moving to a warehouse)
Sales of finished products
20.10.2016	62	90.01	31 500,00	Sales proceeds	TORG-12
20.10.2016	90.03	68	4 805,08	VAT charged
20.10.2016	90.02	43	18 900,00	Write-off of planned cost of goods sold
Payroll for production workers
31.10.2016	20	70	10 000,00	Salary accrued	Time sheet, payslip
31.10.2016	70	68	1 300,00	Personal income tax withheld
31.10.2016	20	69	3 020,00	Insurance premiums accrued
Closing the month
31.10.2016	20	02	1 473,41	Depreciation of production machines has been calculated
31.10.2016	40	20	30 393,41	Adjustment of production output
31.10.2016	43	40	3 393,41	Adjustment of planned cost to actual cost
31.10.2016	90.02	43	2 375,39	Adjustment of cost of goods sold

Example 3. Direct sale of released products (production of services)

The RemontTorg enterprise provides repair services. October 20, 2016 repair work was provided in the amount of 20,000.00 rubles, the planned cost of which was 15,000.00 rubles.

Production costs amounted to RUB 17,000.00. of them:

• Material costs – RUB 2,000.00;
• The amount of depreciation is RUB 1,980.00;
• Remuneration and contributions – RUB 13,020.00.

Closing account 20 manually when providing services:

date	Account Dt	Kt account	Amount, rub.	Wiring Description	A document base
Production costs
10.10.2016	20	10	2 000,00	Spare parts and raw materials written off for the production process	Requirement invoice
Providing repair work
20.10.2016	62	90.01	23 600,00	Sales proceeds	TORG-12
20.10.2016	90.03	68	3 600,00	VAT charged
20.10.2016	90.02	20	15 000,00	Write-off of planned cost of goods sold
Payroll for production workers
31.10.2016	20	70	10 000,00	Salary accrued	Time sheet, payslip
31.10.2016	70	68	1 300,00	Personal income tax withheld
31.10.2016	20	69	3 020,00	Insurance premiums accrued
Closing the month
31.10.2016	90.02	20	2 000,00	Adjustment of the cost of work performed

Tax consultant

All forms of joint activities have their own procedure for maintaining accounting records and reflecting information in financial statements.

Since specific accounting entries are not described in PBU 20/03, and accounting for jointly carried out operations and jointly used assets has not yet been described, we will try to help the accountant navigate by giving a possible accounting option for each of the processes.

Joint Operations

In a joint process, each participant performs a certain stage of production (performing work, providing a service) using only their own fixed assets, materials, financing and other assets, without using the funds of other participants.

In accounting, each participant reflects all business transactions related to the execution of the contract in the usual manner, its share of expenses and obligations, as well as its due share of economic benefits, products or income in accordance with the terms of the contract. All transactions are shown separately, for example, on additionally opened sub-accounts to the asset and liability accounts. A separate balance sheet is not drawn up, the contribution to general activities is not transferred to financial investments, but continues to be accounted for as an asset in the relevant accounts, but separately in analytical accounting.

PBU 20/03 prescribes the use of the rules for separating information that are established by PBU 12/2000 “Information by segments”.

Features of accounting are provided for by an organization that performs the final stage of production (work, services). The share of production that is due to other parties to the contract must be taken into account on the balance sheet. Since the Chart of Accounts does not provide for a special off-balance sheet account for accounting for such operations, you can open such an account yourself, calling, for example, “Products under a joint activity agreement.” Can you use accounts?

“Inventory assets accepted for safekeeping” or 003 “Materials accepted for processing”, since accounting for these transactions is similar to transactions with customer-supplied raw materials, commission agreement, safe storage).

At the time the final finished products to be transferred to the partner are transferred to the warehouse, this off-balance sheet account will be debited, and after the products are transferred to the partner, the products will be written off to the credit of this account.

If, under an agreement, this participant sells common products, works or services, then he takes into account the income of other participants in the transaction as obligations to transfer this income to partners.

Example 1.

The Zima company produces trucks. There is a demand in the market for specialized vehicles that can be produced on the chassis of the Zima company, retrofitting it, for example, with a crane, a living compartment, a communications laboratory, vans, etc. A joint activity agreement has been concluded with the Vesna company, according to which the chassis is created by the company "Winter", and the company "Vesna" carries out retrofitting of the machine according to the buyer's order and sells him the finished product. Proceeds from the sale of a specialized machine are, by agreement, divided in proportion to the costs of both firms in its creation.

During the reporting period of the year, within the framework of joint activities, the Zima company had the following operations:

Use of fixed assets in a joint process. The initial cost of fixed assets used in the joint process is 100 thousand rubles, depreciation was charged on them in the amount of 6 thousand rubles.

The employees' salary with accruals amounted to 20 thousand rubles.

Materials used to assemble the chassis amounted to 60 thousand rubles.

In total, the Zima company incurred expenses in the amount of 86 thousand rubles. The chassis for 2 cars was assembled. This semi-finished product was transferred to the Vesna company for further assembly of trucks.

The Vesna company incurred costs for the production of finished products and its sales in the amount of 129 thousand rubles.

Revenue from the sale of 2 trucks amounted to 295 thousand rubles, incl. VAT 18% -45 thousand rubles. It was distributed among partners in a ratio of 2:3, in proportion to expenses. The Zima company is owed 295*86/(86+129)=118 thousand rubles, incl. VAT is 18 thousand rubles, and for the Vesna company - 177 thousand rubles. , incl. VAT 27 thousand rubles.

We will reflect the transactions in the accounting records of the Zima company.

To reflect transactions in this process, the company uses separate subaccounts to synthetic accounting accounts (to simplify the example, all these subaccounts are assigned the number 2). Mutual settlements for joint activities are accounted for in subaccount 3 “Settlements for due dividends and other income.”

The following entries were made in the accounting of the Zima company for the reporting period:

100,000 rub. – fixed assets participating in the jointly carried out operation are reflected;

6,000 rub. - depreciation was accrued on fixed assets used in the joint operation;

If fixed assets are used not only for joint activities, but also for own production, it is difficult to separate them in accounting.

20,000 rub. – wages (with deductions) were accrued to workers for work performed in a joint operation;

60,000 rub. – materials used to create the chassis;

86,000 rub. – the released chassis were registered in the warehouse;

86,000 rub. – the chassis was transferred to the Vesna company;

118,000 rub. – income related to the joint operation is reflected;

18,000 rub. – VAT accrued for payment to the budget on sales related to the joint operation;

14,000 rub. (118,000 – 18,000 – 86,000) – reflects the profit of the reporting period from participation in a joint operation.

Thus, the company “Zima”, according to the general process in a joint operation, at the end of the reporting period has the following balances in subaccounts in analytical accounting:

• Debit 01-2– 100,000 rub.
• Credit 02-2– 6,000 rub.
• Credit 70-2, 69-2– 20,000 rub.
• Credit 68-2– 18,000 rub.
• Debit 76-3– 118,000 rub.
• Credit 90-1-2– 118,000 rub.
• Debit 90-3-2– 18,000 rub.
• Debit 90-2-2– 86,000 rub.
• Debit 90-9-2 and correspondingly Credit– 14,000 rub.

This data on sub-accounts of joint activities should be summarized line by line with data on the main activities and reflected in the balance sheet of the Zima company.

The Vesna company carries out the final stage of the joint process and the sale of finished products, and the transactions will be reflected in its balance sheet as follows:

86,000 rub. (2 chassis) – semi-finished product was received in quantity and price according to the advice note;

86,000 rub. (2 chassis) – the semi-finished product was released into production for further assembly of the truck;

129,000 rub. – actual costs for the production of trucks as part of a joint operation are reflected;

In this case, it is possible to receive your share of products at your own warehouse at the price of the actual cost.

And the share of products to be transferred to the partner will be reflected, for example, in the debit of the account.

In our case, we capitalize common 2 different assembled cars like this:

215,000 rub. (86,000 + 129,000) – 2 trucks, jointly owned in a ratio of 2:3, were registered in the warehouse;

215,000 rub. (86,000 + 129,000) – vehicles were shipped to customers;

177,000 rub. – income related to the joint operation is reflected;

27,000 rub. – VAT accrued for payment to the budget on sales related to the joint operation;

129,000 rub. – own expenses for the production of final products are written off;

21,000 rub. (177,000 – 27,000 – 129,000) – reflects the profit of the reporting period from participation in a joint operation

118,000 rub. – the debt to the partner “Zima” for the payment of income related to the joint operation is reflected;

RUB 295,000 – money has been received from the buyer;

118,000 rub. – the debt to the Zima company in terms of its share of revenue was repaid.

End of example

The example shows that all products owned jointly by partners are capitalized off-balance sheet. It is difficult for this example to divide 2 different machines between participants in proportion to the costs. But it is possible to divide, for example, grain grown together.

Example 2.

The Zima company and the Vesna company have joined forces in growing grain. Expenses for the reporting period are related as 2:3. After the harvest, the produce was divided among the partners.

Then, in the accounting of the Vesna company, the products will be reflected as follows:

– grain has been entered into the warehouse to be transferred to the company “Zima” (2 parts of the grown volume at a price corresponding to the share of total costs),

– grain is transferred to a partner;

– grain belonging to the company “Vesna” was capitalized (3 parts of the grown volume at a price corresponding to the company’s share in total costs).

Difficulties in the joint process can arise only when preparing primary documents and invoices, especially in cases where the agreement determines the share of each participant in joint expenses. If the company “Winter” actually needs to recognize an additional part of the expenses of the company “Spring” in its balance sheet as part of the joint expenses attributable to its part of the revenue, the posting Debit 90-2 Credit 76-3 will be used. Problems with VAT reimbursement for these expenses can be avoided if the documentation is completed correctly, and then the input VAT on these expenses, reflected in the accounting entry Debit Credit 76-3, will be taken for deduction.

Perhaps in such a situation it would be better to use a contract for the regular sale of a semi-finished product - a chassis - to the Vesna company (example 1).

In the case of division of finished products between partners at the end of the general process, when each partner will independently sell their part of the product, operations should be reflected in the same way as raw materials supplied by the customer.

If firms jointly provide services or perform work, then, naturally, there will be no off-balance sheet accounting of finished products.

In the Explanatory Note to the balance sheet, each participant reflects information on the joint process as a reporting segment, highlighting the information

· about the assets used in the joint process,

· its share in income and expenses,

· assumed obligations that arose directly in connection with participation in such a process.

Similar requirements for disclosure of information in the financial statements of each participant in controlled transactions are contained in paragraph 10 of IFRS 31 “Financial reporting of participation in joint ventures”. In accordance with paragraph 12 of IFRS 31, separate accounting records may not be made in this process, separate financial statements for joint activities may not be prepared, and management accounts may be used to evaluate the results of such activities.

Shared Assets

Shared assets are property that is in common shared ownership of the parties to the agreement for their joint use for the purpose of obtaining economic benefits (income). There is assumed to be joint control and ownership of one or more assets contributed or acquired for the purpose of the joint venture. A company separate from the participants is not created.

Each of the parties to the agreement controls the share of income through its share in the jointly used assets. Each can receive its share of the output produced by the assets and bears its own costs associated with the contract and its share of the joint costs.

In this situation, the accounting is similar to the previous situation. The only difference is that each participant reflects not only his own expenses and obligations, but also his share in the total expenses and obligations.

Assets owned by the party to the agreement on the right of shared ownership and contributed by him as a contribution continue to be accounted for by him in the relevant accounting accounts and are not transferred to financial investments.

And all transactions are reflected separately in analytical accounting according to the corresponding synthetic accounts; a separate balance sheet is not maintained. The participant who is entrusted with settlements with buyers (customers) reflects the income of other participants as obligations to them.

Example 3.

The Zima company and the Vesna company jointly own the building, the shares are in a ratio of 1:2.

The space is rented out for offices, the price varies per 1 sq. m. m of rented premises, often the premises may be temporarily idle. However, according to the agreement between the participants, income and expenses are distributed in proportion to the shares of ownership.

Let’s assume that during the reporting period, the building as a whole received rental income in the amount of 118,000,000 rubles, incl. VAT 18,000,000 rub. Expenses for operating the building amounted to 59 million rubles, incl. 9 million VAT,

The cost of a jointly controlled building is reflected in the fixed assets of each participant in proportion to its share in the common property (clause 6 of PBU 6/01).

Similar to example 1, each participant will take into account their expenses and income on their balance sheet in accordance with the general decision. The "Winter" company will reflect 1/3 of the total income and expenses, and the "Spring" company will reflect 2/3 of the total.

Revenue will be reflected in the balance sheet of the company "Zima" in the amount of 39.33 million rubles. (118 million rubles x 1 part: (1+2) parts) with VAT 6 million rubles, and expenses in the amount of 19.67 thousand rubles. (59 million rubles x 1 part: 3 parts), incl. VAT 3 million rubles.

On the balance sheet of the Vesna company, revenue will be reflected in the amount of 78.67 million rubles, incl. 12 million VAT, and expenses - 39.33 million rubles. (59 million rubles x 2 parts: 3 parts), incl. VAT 6 million rubles. (9 million rubles x 2 parts: 3 parts).

If settlements with tenants and suppliers will be carried out by one partner, or both at the same time, firms recognize the obligation to reimburse expenses to the partner in accordance with the decision for a given reporting period.

End of example

In the Explanatory Note to the balance sheet, each participant reflects within the reporting segment on joint activities:

· its share in jointly used assets,

· its share in the total expenses incurred, income received and liabilities incurred,

· any obligations and expenses incurred by him that arose in connection with participation in the agreement (for example, to finance his share of assets).

Similar disclosure of information is required by clause 16 of IFRS 31. In accordance with clause 18 of IFRS, separate financial statements may not be prepared, but participants can maintain them to assess the effectiveness of joint activities. Accounts may be limited to expenses jointly incurred by the participants and shared among them in accordance with their agreed shares.

Cooperative activity

This part of the PBU regulates accounting in a situation where accounting for common property is entrusted to one participant - a legal entity and a separate balance sheet is maintained for joint activities.

Here we draw the accountant’s attention to the new procedure for accounting for deposits from partners, which differs from the rules of PBU 19/02 “Accounting for Financial Investments,” as well as the rules for calculating depreciation from an authorized partner on depreciable property received as contributions from partners.

Accounting for a friend in his own balance sheet

A partner who contributed assets under a joint venture agreement reflects them as part of financial investments (accounting account 58-4). Moreover, at the cost at which they are reflected in the balance sheet on the date of entry into force of the agreement. For example, fixed assets - at their residual value, and not at the value determined in the simple partnership agreement. This is an important new clarification that differs from the rules of PBU 19/02. If significant, such contribution is reflected in the financial statements as a separate item as part of financial investments.

Example 4.

The Zima company and the Vesna company entered into an agreement on joint activities, and the Vesna company was entrusted with maintaining a separate balance sheet.

The Zima company contributed equipment with an initial cost of 100 thousand rubles, depreciation charges were accumulated in the amount of 20 thousand rubles, the duration was set to 5 years. The contractual value (conditional assessment of the contribution) of the equipment was determined by the parties to be 100 thousand rubles.

In the accounting records of the Zima company, the following entries were made at the time of transfer of equipment to joint activities:

- 100,000 rub. – the initial cost of the fixed asset disposed of as a contribution is reflected;

- 20,000 rub. – depreciation accrued during operation is written off.

- 80,000 rub. (100,000 – 20,000) – residual is taken into account as a contribution to joint activitiescost of retired equipment.

End of example

Upon termination of joint activity, the partner is reflected in the repayment of the contribution accounted for as part of financial investments. The assets received by the partner after the termination of the joint activity are taken into account by him in the valuation according to which they are listed in a separate balance sheet of the partnership on the date of the decision to terminate the joint activity. And if there is a difference between the valuation of the contribution accounted for as part of financial investments and the value of the assets received after the termination of the joint activity, it is included in operating income (expenses) when forming the financial result.

Example 5.

We use the data from example 4. After the end of the joint activity, the fixed asset is returned to the Zima company. It was on the balance sheet of the Vesna company amounting to 70,000 rubles.

In the accounting records of the Zima company, the following entries were made at the time of return of equipment from joint activities:

- 70,000 rub. – a fixed asset was received to repay a contribution to a joint activity (valued at its residual value in a separate balance sheet).

- 10,000 rub. (80,000 – 70,000) – the difference between the valuation of the deposit and the value of the assets received is taken into account as part of operating expenses.

End of example

If depreciable property is returned, then a new useful life is established for it (clause 15 of PBU 20/03) according to the rules of PBU 6/01.

The partner reflects his share of profits (losses) to be received (repaid) as part of operating income (expenses), for example, income - accounting entry Dt 76-3 Kt 91-1. The corresponding amount of income (losses) will be reflected in Form No. 2.

In the Explanatory Note to the balance sheet, the partner must disclose the following information on the reporting segment of the joint activity: participation share (contribution), share in general contractual obligations; joint expenses and income.

Accounting with a partner conducting the general affairs of a simple partnership

An authorized partner maintaining a separate balance sheet for joint activities, the partners' contributions are taken into account in correspondence with the account in the assessment provided for in the agreement, and it does not depend on the book value of this property of the partner.

Example 6.

Let's use the data from example 4 and reflect the operation in a separate balance sheet.

- 100,000 rub. – the initial cost of the fixed asset contributed as a contribution is reflected at the contractual value.

End of example

The calculation of depreciation for this fixed asset does not depend on the timing and methods of calculating depreciation that the Zima company previously used. When accepting an object for accounting, the Vesna company, within the framework of a separate balance sheet, establishes an independent useful life of the object and the method of depreciation.

In the event of termination of the partnership, the liquidation balance sheet is drawn up as of the date of termination of the joint venture agreement. And the property due to each partner as a result of the division is taken into account as repayment of his share of participation (contribution).

Example 7.

Let's use the data from example 5 and reflect the operation in a separate balance sheet.

- 100,000 rub. – the initial cost of the fixed asset disposed of as a contribution is reflected in the contractual valuation;

- 30,000 rub. – depreciation accrued during joint activities is written off.

- 70,000 rub. (100,000 – 30,000) – the return of property to repay the participant’s share is taken into account.

The return of deposits in cash and other property (both previously contributed to the joint activity by its participants, and created (acquired) as part of the joint activity) is reflected in a similar way.

The division of property that was in the common shared ownership of the partners is carried out in the manner established by Article 252 of the Civil Code of the Russian Federation. According to clause 4 of Article 252 of the Civil Code of the Russian Federation, in the event of a disproportion between the property allocated in kind to a participant in a joint activity and his share in the property right, this disproportion is eliminated by payment of the appropriate amount of money or other compensation.

This situation may arise, for example, when a participant in a simple partnership is transferred (returned) a fixed asset that he previously contributed as a contribution to the joint activity. The residual value of the returned fixed asset due to depreciation during the period of joint activity is less than the amount of the participant’s contribution reflected in the account. In this case, the difference equal to the amount of accrued depreciation is reimbursed to the participant in cash or other property by agreement of the parties.

Example

The company's accounting policy stipulates that it uses standard forms as primary documents. According to the calculation, the amount of depreciation of fixed assets owned by Aktiv CJSC for January 2013 amounted to 12,000 rubles. However, the chief accountant of Aktiva O.V. Borisova, entering the depreciation entry into the business transactions journal, mistakenly wrote down the amount of 15,000 rubles:

DEBIT 20 CREDIT 02

– 15,000 rub. – depreciation of fixed assets has been calculated.

The error was discovered on March 15, 2013. Excessively accrued depreciation amount of RUB 3,000. must be reversed using the posting:

DEBIT 20 CREDIT 02

– 3000 rub. – the excessively accrued amount of depreciation of fixed assets was reversed.

The basis for this posting is an accounting certificate signed by the chief accountant. Since there is no standard form for an accounting certificate, Aktiv developed it independently.

The completed certificate will look like this:

There is no need to put a stamp on primary documents, since it is not a mandatory requirement. If the company uses standard forms of primary documents, in which the seal is already provided, then it is better to put it in order to fill out all the details of the document.

Certificate of acceptance and transfer of fixed assets (form No. OS-1)

A standard form is provided for the act of acceptance and transfer of fixed assets. Its form was approved by Decree of the State Statistics Committee of Russia dated January 21, 2003 No. 7.

The act applies:

· when putting a fixed asset into operation. It can be purchased from a supplier, received free of charge or under a leasing agreement, or created at the enterprise;

· when selling (transferring) a fixed asset to another company.

The act is drawn up by a commission appointed by order of the head. An act is drawn up for each fixed asset item. The act is accompanied by shipping documents and technical documentation.

It is necessary to draw up as many copies of the act as there are parties involved in the transaction.

If you bought a fixed asset at retail or created it yourself, then you do not need to indicate information about the delivery company on the first page. In this case, the act is drawn up in one copy.

The column “Date of acceptance for accounting” is filled in by the recipient company, and the column “Date of write-off from accounting” is filled in by the delivery company.

In the “Account, subaccount and analytical accounting code” field, the delivery company indicates the account in which the object was accounted for before its sale, and the recipient company indicates the account in which it will be accounted for.

If the fixed asset belongs to several companies, fill out the line “Participants in shared ownership” and indicate the size of the shares. All other information should be reflected in proportion to these shares.

If the cost of a fixed asset is expressed in foreign currency, indicate it both in foreign currency and in rubles on the date of capitalization.

The date of drawing up the act must be the same, but the numbers may differ, since each company has its own numbering.

Section 1 needs to be filled out only when accepting or transferring an object that has been in operation. Information about it is provided by the transferring company. If you bought an object at retail or created it yourself, you do not need to fill out this section.

Section 2 filled out only by the recipient of the fixed asset in his copy.

Set the useful life of the object taking into account the period of its use by the previous owner. Approximate service life for all groups of fixed assets is given in Decree of the Government of the Russian Federation of January 1, 2002 No. 1.

In the column “Method of calculating depreciation”, indicate one of the methods of calculating depreciation in accounting.

In the “rate” column, you need to indicate the depreciation rate, which you need to know for the straight-line method and the reducing balance method.

It is calculated like this:

The act is signed by all members of the commission, employees who accepted and handed over the fixed asset, the chief accountant and approved by the head of the organization.

The completed act is submitted to the accounting department.

Based on the act, the accountant will make the following entries:

DEBIT 08 CREDIT 60 (75, 76, 98-2, ...)

– an object of fixed assets has been capitalized;