#Accumulated profit and loss:
It is an account with the nature of a creditor, if it is for the current year, as the current profit and loss, and if it is related to the profit and loss of the previous year or previous years.
It is called accumulated profit and loss.
The accumulated profit and loss account or annual profit and loss is a permanent account (balance sheet) and is reflected as one of the headings of shareholders’ equity.
So it is not transferred to any account.
As the name suggests, the balance of the accumulated profit and loss account is accumulated every year and is not transferred to any account.
Accumulated profit and loss:
The accumulated profit and loss or annual profit and loss account is a permanent account whose balance is transferred to the next year and in all companies, including stocks, etc.
Shares are treated in the same way with this account, but it should be noted that the accumulated profit and loss account, because it is an account that is neutral in nature, can also
During the period or at the end of the period, it becomes a debit or a credit, and it depends on the events that occurred during the financial year, for example, if an expense is made that belongs to the year
It is a previous financial year that belongs to the previous financial year, it will be debited in the accumulated profit and loss account in the desired financial year, and if an income is realized or it causes a deduction.
The expenses of the previous years, for example, they received additional insurance premiums for the social security insurance last year and returned it to the company this year, because in the previous year under the title
The cost is reflected and has an impact on the current profit and loss. This payment is credited in the accumulated profit and loss account.
Ramsal himself should pay, this payment should be debited in the accumulated profit and loss account.
It is important and controversial and has a wide scope, and one of the accounts that must be dealt with specifically and carefully in the audit matter is the profit account and
The accumulated loss can even be transferred to the partners’ current account at the end of the period. Regarding the accumulated profit and loss account (yearly), the differences in the principles
There is accounting and tax accounting, which should be considered tax accounting in this case.
Mehdi Koh Soltani (financial services, accounting, financial and tax consultant):
Link to the audit accounting clinic
https://t.me/joinchat/BnzBsTuioTshiXBwf9bBPQ