After the end of a business year, the company needs to set aside the statutory surplus reserve for the profit before dividends, but the company distributes the profits this year in a certain order. The statutory surplus reserve is set to 65,438+00%, and the arbitrary surplus reserve is set to 5%. So how do I make accounting entries for dividends and statutory surplus reserves?

Accounting entries for extracting statutory surplus reserve from dividends

1. Transfer this year's profit to profit distribution.

Debit: this year's profit

Loan: Profit Distribution-Undistributed Profit

2. Payment of income tax

Accrual time

Debit: income tax expense

Loan: Taxes payable-income tax

time of payment

Debit: Taxes payable-income tax

Loans: bank deposits

3. Withdraw statutory surplus reserve (after-tax profit is more than 65,438+00%), common reserve (after-tax profit is more than 5%) and arbitrary surplus reserve (calculated according to the proportion stipulated in the Articles of Association).

Debit: profit distribution-withdrawal of statutory surplus reserve

Profit distribution-withdrawal of provident fund

Profit distribution-withdraw any surplus reserve.

Loan: surplus reserve-statutory surplus reserve

Surplus reserve-accumulation fund

Surplus reserve-any surplus reserve

4. Dividend distribution (according to the resolution of the board of directors)

Borrow: Profit Distribution-dividend payable

Loan: dividend payable

5. Carry-over profit distribution

Debit: profit distribution-undistributed profit

Loan: profit distribution-withdrawal of statutory surplus reserve-withdrawal of provident fund.

What is the tax payable?

Taxes payable include value-added tax, consumption tax, enterprise income tax, resource tax, land value-added tax, urban maintenance and construction tax, property tax, land use tax, travel tax, education surcharge and other taxes paid by enterprises according to law, as well as personal income tax collected and remitted by enterprises before being turned over to the state.