Hello, The dividends you are going to pay yourself must be based on the net accounting result, that is to say your result after taking into account income tax (IS). In your case, the amount of the gross dividend is 10,059 euros. Be careful, however, that your company must deduct from this amount the sums due in respect of social contributions and the non-flat-rate deduction of income tax. Have a nice day. Sincerely, Thibaut CLERMONT. Pingback: Accounting linked to the partner`s current account| Simple accounting, accounting and administrative information But if the total loss N (i.e. €200,000) (your answer), can we allocate it to the transfer to a new debtor and have a creditor carried forward / optional reserves of €300,000 from N-1 on the same accounts? In sole proprietorship, the settlement of the appropriation of profits is very simple: the result is transferred to the credit or debit of account 101 «Individual capital». This entry must be recorded at the beginning of the following financial year. For example, if a sole proprietorship closes its accounts on 31 December of year N, the allocation of the profit and loss account should be recorded on 1 January N+1.
From the moment the company makes a profit, shareholders are required to allocate at least 5% of their amount to a legal reserve account until it reaches 10% of the share capital. As soon as this threshold is reached, this assignment obligation expires. Share capital x 10% — account balance 106100 (previous year) Hello, First of all, the accounting treatment of the use of your profits depends on the decisions of the sole shareholder, which are recorded in a special register. You must respect these decisions. Finally, insofar as the partner is personally taxed on the profit made, given the IR tax regime of the EURL (whether or not he receives this profit), I strongly advise you to assign it to an affiliated account 455. Do not forget to constitute the legal reserve under the conditions provided for by law. Good afternoon. Sincerely, Thibaut CLERMONT.
Hello, to answer your question, the date of recognition of a profit allocation is the date on which the competent legal body decides on the allocation of the profit of the association (surplus or deficit). As a general rule, this is the date of the general meeting (it is advisable to refer to your articles of association). Similarly, the allocation of profits is made in accordance with the statutes. In the event of a deficit, it may be offset by any transfer to a new creditor or by free reserves. The excess can be effectively debited from the «Carry Forward to New Debtor» account. It should also be checked, for example, that the statutes do not provide for the prioritization of reservations. As for your accounting entry (for the accounting on the day of the general meeting approving the loss, usually evidenced by a report), it seems correct to me (provided that there is a «transfer to the new creditor» before imputation of the loss; otherwise, it will be necessary to allocate the excess loss to account 119). In the latter case: – You debit account 110 «Carry forward again (balance)» for the amount of account 110 if it is less than the amount of the loss – You debit account 119 «Carry forward again (debit balance)» for the excess of the loss – and you credit account 129 «Net income (deficit)» for the entire loss.
Sincerely, Thibaut CLERMONT. This account shall be opened when the grant agreement provides: In reality, I cannot advise you for a simple and valid reason: it is necessary to estimate the expected tax result for this year. If it is large enough, the carry-forward is not necessary, since the deficit carry-forward «absorbs» all or part of your tax profit for the following year and you thus realize a tax savings. On the other hand, if you expect the future of your business to be pretty bleak and you will still suffer losses in the future, opt for the postponement. Other parameters must also be taken into account. Thank you for your encouragement. Good night. Sincerely, Thibaut CLERMONT. Hello, no, you can only withdraw the amount of the «net» dividend from social contributions and the flat rate of non-deduction of income tax is 11,424 euros; unless you are exempted from paying the 21% deposit (subject to the income conditions of the tax household).
It is the company that pays the social security contributions and the IR payment to the Treasury (declaration and payment within one month of distribution). Have a nice day. Sincerely, Thibaut CLERMONT. Hello, you must first respect the rules provided for in your statutes, as well as those established by law (in particular with regard to the endowment of the legal reserve). You can also apply the accounting treatment described in point 3. B, since you personally pay tax on these amounts: Allocation to the sole shareholder to the balance of account 4551 «Partner – Current Accounts».
