Accounting specialists use account 90 "Sales" in their activities. Its debit is used to record income, and its credit is used to record expenses. Sub-account 90.2 is called "Cost of sales", and 90.1 is called "Revenue". The difference between the debit and credit is the company's profit (loss).
The cost of sales is written off to how to add taiwan number on whatsapp the debit of account 90, sub-account 90.2 from the accounts:
20 "Main production";
23 "Auxiliary production";
29 "Service industries and farms";
40 "Release of products, works, services";
41 "Goods";
43 "Finished products".
Also, when recording indicators for the reporting period, costs for the production or sale of goods are included in sub-account 90.2.
Let's take a closer look at account 26 "General business expenses". Depending on the specifics of the accounting adopted in the company, expenses under this item may relate to:
directly into the cost of sales as conditionally constant. In this case, the write-off from account 26 occurs to sub-account 90.2;
to the cost price of the goods produced or services rendered (work performed). Then they are written off from account 26 to the debit of accounts 20, 23 and 29.
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How to Reflect Cost of Sales in the Income Statement
Document form No. 2, which displays the profit (loss) of the enterprise, is now called the "Financial Performance Report". Each organization is required to submit it to the tax service no later than March 31, based on the results of its activities for the year.
All legal entities, including those who use simplified accounting, must do this. Sometimes such documentation is useful when communicating with credit and financial institutions, judicial institutions and business partners.
Financial report
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The report itself and the procedure for filling it out are regulated. The document must necessarily contain a certain number of lines, including the cost of sales. It is filled out as follows:
Name of the indicator Code
Revenue 2110
Cost of sales 2120
Gross profit or loss 2100
Commercial expenses 2210
Management expenses 2220
Profit or loss from sales 2200
Income from participation in other organizations 2310
Interest receivable 2320
Interest payable 2330
Other income and expenses 340–2350
Profit or loss before tax 2300
Current income tax 2410
Other 2460
Net profit or loss 2400
In reporting documentation, cost of sales is one of the key parameters. Line 2120 contains data on the production and sale of a product or service and information on their purchase.
Accounting for cost of sales
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