Accounting entries. Financial achievements of main business accounting.

Profit is the final financial result of all business activities of an enterprise in a certain period of time, and it is an important indicator that comprehensively reflects the business results of an enterprise.

1, operating profit

Operating profit is the main source of enterprise profits, which is mainly composed of main business profits and other business profits.

(1) Profit from main business. It is the profit generated by the main business in the production and operation activities of the enterprise. It is the balance of the enterprise after deducting the main business cost, main business tax and additional income. Namely: main business profit = main business income-main business cost-main business tax and surcharge.

(2) other business profits. It is the profit generated by other business activities other than the main business of the enterprise. It is the difference between other business income and other business expenses. That is, other business profits = other business income-other business expenses.

(3) Operating profit. It is the difference between the sum of the main business profits and other business profits of an enterprise and the period expenses. Namely: operating profit = main business profit+other business profit-management expenses-operating expenses-financial expenses.

2. Net investment income

Net investment income is the net amount of investment income after deducting investment losses. Investment income includes profits, dividends and bond interest of enterprises' foreign investment, as well as the difference between the book value and the price obtained by recovering the investment at maturity or transferring it halfway. Investment losses include the difference between the book value and the price obtained by recovering the investment at maturity or transferring it halfway.

3. Net non-operating income and expenditure

Non-operating income and expenditure refers to all kinds of income and expenditure that are not directly related to the production and operation activities of enterprises. Non-operating income is not generated by the capital cost of enterprise production and operation, nor does it need to be paid by the enterprise. It's actually a net income. Non-operating income mainly includes: inventory surplus of fixed assets, net income from disposal of fixed assets, fine income, etc. Non-operating expenses refer to expenses that do not belong to the production and operation expenses of enterprises and are not directly related to the production and operation activities of enterprises, but should be deducted from the total profits realized by enterprises. Non-operating expenses mainly include: inventory loss of fixed assets, net loss from disposal of fixed assets, fine expenses, extraordinary losses, donation expenses, etc.

4. Total profit

The total profit is formed by subtracting the original input cost and a series of other expenses from the income realized through the sales process, plus subtracting the non-operating income and expenditure and the net investment income. Expressed as:

Total profit = operating profit+net investment income+non-operating income-non-operating expenditure

5. Net profit

The net profit of an enterprise is the net profit after deducting income tax from the total profit. Its calculation formula is:

Net profit = total profit-income tax

(2) Profit distribution

According to the Company Law of People's Republic of China (PRC) and other relevant laws and regulations, the net profit realized by the company in that year is generally distributed in the following order.

1, to make up for the losses in previous years.

2. Withdraw the statutory surplus reserve. The statutory surplus reserve fund is drawn at 10% of the after-tax profit. After the accumulated amount of the statutory surplus reserve fund of the company exceeds 50% of the registered capital of the company, it may not be withdrawn.

3. Withdraw the statutory public welfare fund. The statutory public welfare fund is drawn from 5% to 65% of the after-tax profit.

4. Pay dividends on preferred shares.

5. Withdraw any surplus reserve fund.

6. Distribute profits to investors.