Accounting. Accounting for reserves for upcoming expenses (the most important)

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Accounting. Accounting for reserves for upcoming expenses (the most important)

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81. Accounting for reserves for future expenses

In order to evenly include future expenses in production or circulation costs of the reporting period, an organization can create reserves for:

▪ upcoming payment of vacations to employees;

▪ payment of annual remuneration for length of service;

▪ payment of remunerations based on the results of work for the year;

▪ repair of fixed assets;

▪ production costs for preparatory work due to the seasonal nature of production;

▪ upcoming costs for land reclamation and implementation of other environmental measures;

▪ upcoming costs of repairing items intended for rental under a rental agreement;

▪ warranty repairs and warranty service; covering other anticipated costs and other purposes provided for by the legislation of the Russian Federation, regulatory legal acts of the Ministry of Finance of the Russian Federation.

The balance sheet at the end of the reporting year reflects in a separate item the balances of reserves that are carried over to the next year, determined on the basis of the rules established by the regulatory acts of the system of regulatory accounting regulation.

The fact of creating a reserve for future expenses is reflected in the order on accounting policy.

The reservation of certain amounts is reflected in the credit of account 96 "Reserves for future expenses" in correspondence with the accounts of accounting for production costs and sales costs. The following entries are reflected in the accounting.

1. Formation of a reserve for future expenses at the expense of the costs of the main and auxiliary production:

Debit of account 20 "Main production" (23 "Auxiliary production"

Credit of account 96 "Reserves for future expenses".

2. Deductions to the reserve for future expenses due to overhead costs:

Debit of account 25 "General production expenses" Credit of account 96 "Reserves of forthcoming expenses".

3. Deductions to the reserve at the expense of general business expenses:

Debit of account 26 "General expenses" Credit of account 96 "Reserves of forthcoming expenses".

4. Formation of a reserve at the expense of the cost of selling products:

Debit of account 44 "Expenses for sale"

Credit of account 96 "Reserves for future expenses".

The use of reserve funds is reflected in the debit of account 96 “Reserves for future expenses”.

1. Write-off of actual expenses for the amount of remuneration to employees during vacation and annual remuneration for length of service:

Debit of account 96 "Reserves for future expenses" Credit of account 70 "Settlements with personnel for wages".

2. Write-off of actual expenses for the cost of repair of fixed assets carried out by a subdivision of the organization:

Debit account 96 "Reserves for future expenses" Credit account 23 "Auxiliary production".

3. Use of the reserve to cover the costs of depreciation of funds:

Debit of account 96 "Reserves for future expenses" Credit of account 02 "Depreciation of fixed assets".

4. Use of the reserve to cover general business expenses:

Debit account 96 "Reserves for future expenses"

Credit of account 26 "General expenses".

The correctness of the formation and use of amounts for a particular reserve is periodically (and at the end of the year mandatory) checked according to estimates, calculations, etc. and adjusted if necessary.

Analytical accounting on account 96 "Reserves for future expenses" is carried out on separate reserves.

Author: Kabkova E.N.

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