How to close a support account

Account 23 "Auxiliary production" is closed first of all, since it is the auxiliary production that performs work and services for most areas of the organization. For example, for agricultural organizations, sub-accounts are closed in the following sequence: power supply, gas supply, heat supply, motor transport, production repair, machine and tractor fleet.

You will need

Financial statements for the whole year

Instruction manual

1

First, close your electricity and water accounts. Given that electricity and water are supplied to the organization at clearly set prices, these accounts are closed by the usual write-off of amounts. Payment of electricity is transferred to the accounts of consumers according to the planned assessment of kilowatt hours. And at the end of the year, you can determine the actual cost of a kilowatt hour by the debit of the corresponding subaccount. To get this figure, it is necessary to divide the entire amount of costs by the amount of electricity generated per year.

2

Then calculate the deviation of the existing cost of electricity from the planned one and carry out the adjustment of the costs incurred in the relevant accounts for the amount of the resulting difference.

3

Close the “Water supply” sub-account in the second place, since many organizations have their own wells, which operate at the expense of electricity. Divide the total cost by the total amount of water consumed and you will determine the actual cost of cubic meters of water. Multiply the amount of water consumed by the difference in actual cost from the planned, and you will get the amount of costs that must be written off.

4

Write off transport work performed during the year on a monthly basis for the credit of the account at the planned cost and assign it to the debit of the accounts of consumers of services. After the year, determine the deviation of the actual costs from the planned. For freight vehicles, the unit is 1 ton-kilometer of traffic.

5

Closing the sub-accounts “Repair shop” and “Repair of buildings and structures” depends on the method of accounting for repair costs. Here, the repaired objects are used as the costing object. Just at the end of the year, make adjustments to the overhead costs of the repair shop and the costs of building repairs written off during the year.

6

According to the “Machine and Tractor Park” account, write off during the year from the loan the cost of the performed transport work at the planned cost of one conditional reference hectare. And at the end of the year, make a distribution of costs according to the following items: depreciation of fixed assets, deductions for the repair of fixed assets, other expenses. Distribute the amount of costs for these items in proportion to the volume of work performed and write off the costs without taking into account the amounts that relate to the transport work of tractors.

Closing accounts of auxiliary production