How to calculate the annual net profit of a company.

First calculate the total profit (i.e., the base for calculating income tax) = revenue from main business - cost of main business - taxes and surcharges on main business - selling expenses - administrative expenses - financial expenses - non-operating expenses + non-operating income = 860-510-85-60-80-12-12+6 = 107

Income tax = 107 * 25% = 26.75

Net Profit = 107-26.75=80.25

There is an issue to be noted here, non-operating expenses and non-operating income are included in the calculation of income tax, for example, late payment of taxes (non-operating expenses), can not be included in the deduction of income tax. This is usually when doing the annual income tax return, the audit will be pulled out, but usually you have to understand.

Expanded:

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Profit for the year refers to the net profit (or net loss) of an enterprise for a certain fiscal year, which is determined by the calculation of the components of the enterprise's profit, and is a dynamic indicator of the gradual accumulation of the enterprise from January to December of the calendar year. Profit for the year is a summary account. The credit side of the registration of the enterprise realized during the period of income, including the main business income, other business income, investment income, non-operating income and so on.

The debit side of the registration of the costs and expenses incurred by the enterprise in the current period, including the cost of doing business, business taxes and surcharges, other business costs, selling expenses, administrative expenses, financial expenses, investment income (net loss), non-operating expenses, income tax expense. After offsetting the debit and credit amounts, if the credit balance represents the net profit realized by the enterprise's operating activities during the period, if the debit balance represents the loss incurred by the enterprise during the period.

In order to make the "profit for the year" account can be accurate and timely to provide the amount of profit for the period without increasing the workload of the preparation of journal entries, units in the actual work of the "profit for the year" page using multi-column. The "main business income", "main business costs", "main business taxes and surcharges" and other subjects, from the first level of accounts into the "profit for the year" under the secondary accounts. Profit" under the use of secondary accounts, reducing the workload of the carry-over.

But the product ledger under "Revenue" and "Cost" still needs to be registered by quantity and amount. According to the "Schedule" page at the end of the period out of the incurred amount, in the preparation of profit and loss account without having to look at a number of books, only through the "profit for the year" to meet the needs of the preparation of profit and loss account.

"Operating expenses", "administrative expenses", "financial expenses" and other expenses, the monthly amount is not large or the number of business transactions is not large, can also be used directly as a "profit for the year". "Profit for the year" secondary account to reduce the workload of the carry-over. If the above expenses are large or the number of business transactions is large, it is still necessary to set up a detailed account according to the actual situation, and carry forward to the "profit for the year" account at the end of the period.

Reference:

Baidu Encyclopedia - Profit for the year