Passive account 42 in accounting is used by retail trade organizations to summarize information about the amounts of trade margins on products sold at sales prices. In addition, discounts from suppliers for expected losses of goods and reimbursement of transportation costs are also taken into account here. Let's figure out how trade margins are formed in the accounting of retail companies.

Account 42 in accounting

Trade margin (TM) is the monetary expression of gross income added to the original purchase price of a product, used by an enterprise to reimburse direct and indirect costs in terms of product sales. The company has the right to keep records of goods according to the chosen method approved in the accounting policy - at the purchase price or at the sales value (clause 13 of PBU 5/01). Moreover, this right is not given to all trading companies, but only to retailers.

TN arises when accounting at sales prices and, according to Order No. 94n dated October 31, 2000, is reflected on the account. 42. The amount of the accrued margin is formed on the loan account. 42 in correspondence with accounts – , , , , . In a special way, debit postings are made on account 42 “Trading margin” - not directly through the debit of the account. 42, but by reversing amounts from the loan. Analytics is carried out separately for goods sold and shipped. The methodology for calculating TN is established by companies independently - as a percentage of the sales price, in a fixed amount or in a fixed percentage.

Account 42 “Trade margin” – postings:

• D 41 K 42 – TN accrued.
• D 90.2 K 42 – the reversal of the technical document for goods sold is reflected.
• D 91.2 K 42 – reflects the write-off of the excess markdown over technical requirements.
• D 44 K 42 – reversal reflects the write-off of technical specifications for products used for the needs of the organization.
• D 94 K 42 – reflects the write-off of technical specifications in terms of shortages/damage to products identified during the property inventory process.

Accounting account 42 – postings with examples

Example 1

A retail company purchased 8 computers for subsequent resale at a price of 21,240 rubles, incl. VAT 3240 rub. The markup is set at 25%. The accrual of TN is reflected in accounting using the following entries:

• D 41 K 60 for 144,000 rubles. – computers have been deposited into the seller’s warehouse.
• D 19 K 60 for 25,920 rubles. – VAT is allocated in the supply.
• D 60 K 51 for 166,920 rubles. – payment has been made for the goods under the agreement with the supplier.
• D 68 K 19 for RUB 25,920. – the tax is subject to reimbursement.
• D 41 K 42 for 36,000 rubles. – TN was accrued for computers (18,000 x 25% x 8 pcs.).
• D 51 K 90.01 for 212,400 rubles. – implementation has been carried out.
• D 90.2 K 41 for 212,400 rubles. – reflects the implementation of the party.
• D 90.2 K 42 for 36,000 rubles. – reversal of TN.
• D 90.03 K 68 for 32,400 rubles. – VAT payable.
• D 90.09 K 99 for 144,000 rubles. – profit from the sale is reflected.

Example 2

A retail store spent materials totaling 28,000 rubles on repairs of its own premises, TN is 30%. Postings in accounting:

• D 44 K 41 for 28,000 rubles. – reflects the write-off of building materials.
• D 44 K 42 8400 rub. – reversal reflects the write-off of technical inventory for inventory items spent for one’s own needs.

Account 42 is intended to summarize information about trade margins (discounts, mark-ups) on goods in organizations engaged in retail trade, if they are recorded at sales prices. Let's look at accounting procedures in two common situations.

Buying and selling goods

Consider a standard situation: a company buys and resells goods. These goods are part of inventories acquired or received from other legal entities or individuals and intended for sale (clause 2 of PBU 5/01). They are taken into account at the actual cost, which in this case is equal to the amount paid to the supplier excluding value added tax (clauses 5, 6 of PBU 5/01). In accordance with paragraph 13 of PBU 5/01, firms selling retail are allowed to account for purchased goods at their selling price with a separate accounting of markups (discounts).

It is required to reflect the purchase and sale of goods in the accounting of a retail trade enterprise. At the same time, the price of suppliers may vary slightly from batch to batch, and the selling price is valid for a long time.

Example
At the beginning of the month, 40 units of goods were not sold, the selling price of each of them is 1180 rubles. A total of 47,200 rubles. (including value added tax RUB 7,200). On the credit of account 42 for these goods, a trade margin in the amount of 15,200 rubles is reflected. The trade margin on unsold goods is determined by the average percentage.

During the month, three batches of this product of 10 units each were purchased at the following price of 10,030 rubles. (including VAT 1530 rub.), 9440 rub. (including VAT 1440 rub.) and 8850 rub. (including VAT 1350 rub.). A total of 28,320 rubles. (10,030 + 9,440 + 8,850), including VAT 4,320 rubles.

This month, 60 units of goods were sold. Sales revenue amounted to 70–800 rubles. including value added tax RUB 10,800.

At the beginning of the month, account 42 reflected a trading margin in the amount of 15,200 rubles. For goods received during the month, it amounted to 11,400 rubles. (10 units x 3 lots x 1180 rubles - 24,000 rubles). The debit of account 41 at the beginning of the month reflects the sales value of goods equal to 47,200 rubles. (1180 RUR x 40 units). The selling price of goods received this month is 35,400 rubles. (30 units x 3 lots x 1180 rub.). At the end of the month, the sales value of unsold goods amounted to 11,800 rubles. (47,200 + 35,400 - 70,800).

To calculate the trade margin on goods sold, you must first determine its average percentage. It is equal to the ratio of its amount at the beginning of the reporting period and the markup on goods received during the reporting period to the amount of goods sold (turnover) and the balance of goods at the end of the reporting period. Then you need to multiply the resulting result by the amount of sales revenue. The trade margin on goods sold amounted to RUB 22,800. ((15,200 rub. + 11,400 rub.) : (47,200 rub. + 35,400 rub.) x 70,800 rub.).

The accounting entries should look like this:

Markdown of goods and its subsequent sale

An organization selling retail keeps records of goods at sales prices. The product was damaged upon delivery. In connection with this, a markdown was carried out. In accordance with paragraph 13 of PBU 5/01, organizations selling retail are allowed to account for purchased goods at their selling price with a separate accounting of markups (discounts).

To summarize information about the availability and movement of goods, account 41 “Goods” is intended, about trade margins - account 42 “Trade margin” (Instructions for using the chart of accounts for accounting financial and economic activities of organizations, approved by order of the Ministry of Finance of Russia dated October 31, 2000 No. 94n).

In accordance with subparagraph “b” of paragraph 29 of the Methodological guidelines for accounting of inventories, approved by order of the Ministry of Finance of Russia dated December 28, 2001 No. 119n, the organization must write off the actual cost of goods from account 41 to the debit of account 94 and at the same time capitalize it according to market price (taking into account physical condition). When marking down, the trade margin must be reversed to the credit of account 42 in correspondence with the debit of account 94.

According to paragraph 9 of PBU 5/01, the current market value is understood as the amount of money that can be received as a result of the sale of the specified asset (excluding VAT).

The perpetrators have not been identified, so the amount of losses can be recognized as sales expenses. In this case, from account 94 the amount of losses is written off to the debit of account 44 (clauses 5, 7 of PBU 10/99).

Example
As part of its activities, the retail company received tekloceramic electric hobs from the supplier’s warehouse. When delivered to the store, one of them was damaged (a chip appeared). It was decided to sell it at a reduced price. The markdown of this panel exceeds the trade markup.

The panel was purchased at a price of RUB 23,600. (including VAT 3600 rub.) per unit of goods. The selling price is set at 29?500 rubles. (including VAT 4500 rub.) per unit of goods. Trade margin per unit of goods is 9,500 rubles. Due to the chip, the selling price of the goods was reduced by 50 percent to the amount of 14,750 rubles, including value added tax (2,250 rubles).

The defects of the goods are discussed with the buyer upon sale.

The amount of losses amounted to 7,500 rubles. (the difference between the purchase and sale price of a product without value added tax). Since the perpetrators have not been identified, the losses are attributed to the organization.

In this case, the accountant needs to write down:

One of the types of entrepreneurship is trade in products and goods wholesale and retail. The seller’s profit in this case is considered to be the trade margin, which is the difference between the initial cost of the product and the final selling price. In the article we will analyze the meaning and definition of trade margins, as well as accounting entries for account 42.

Trade margin value

In order to obtain the planned profit, the seller, when selling goods, forms the cost using the amount of markup on the original cost. The resulting difference must cover all estimated costs, including the following:

• VAT and other indirect taxes;
• sales costs (third-party services, employee salaries);
• other expenses.

At the same time, the markup ensures not only the covering of expenses, but also the profit of the seller. At the same time, the value of the trade margin should not impede the further competitiveness of the product on the market in comparison with other similar items.

Video lesson. Account 42 in accounting “Trade margin”: examples

Video lesson on accounting for account 42 “Trade margin”. The lesson is taught by the chief accountant, expert, site teacher Gandeva N.V. Typical situations, examples and wiring are considered ⇓

Determination of trade margin

To determine the final cost of goods in wholesale and retail trade, different algorithms are used.

When selling wholesale, the trade margin is the difference between the wholesale selling price and the purchase price.

To account for retail trade, it is allowed to accept goods not only at cost, but also at final sales prices. Such actions are permissible, since sometimes it is impossible to determine the natural value of a unit of goods. An exception is a unit of large products, for example, household appliances. But when selling smaller goods (office supplies, food), detailed accounting is impossible. In retail companies, it is preferable in such cases to account for goods at selling prices.

The selling price of a product consists of the cost price and an added margin. The latter value can be established by organizations independently, with some exceptions indicated below.

It is possible to set a markup using the Register of Retail Prices, approved by the manager. For any type of product, information is provided about the supplier, the purchase price, the amount of markup in % terms, and the final market price. Each place of subsequent sale can have its own price.

The approved register may look like this:

The markup can also be uniform for all types of goods or depend on their type. It is recommended that the chosen method of determining retail prices be fixed in the current accounting policy.

State regulation of pricing

Prices for certain products are controlled by the state. The government determines the acceptable price for certain goods that have special social significance. If a product is on the List of Price-Controlled Products, then their total cost, including markup, must be formed in accordance with current laws and regulations at the federal and local levels.

If there is a steady increase in prices for goods of social importance, the Government has the right to temporarily limit their maximum limit. But this can be done if the price increase level exceeds 30% over a 30-day period. The maximum permissible value of the cost of such goods, established by the Government, can be maintained for up to 90 days.

Socially significant goods include the following: meat, milk, sunflower oil and butter, flour, eggs, sugar, salt, bread, cereals, potatoes, some types of fruits and vegetables. In addition to food products, the list of goods for which control over selling prices can be established includes children's products, medicines, medical products, goods intended for sale in the Far North and regions equivalent to it.

If cases of overpricing are detected for goods regulated by states, the responsible persons and organizations will face fines. For management, fines of up to 50,000 rubles are provided, for legal entities - in the amount of twice the amount of revenue exceeded as a result of overstatement for the entire period of overstatement, but for a total duration of no more than a year.

Accounting for trade margins (account 42: postings)

In the accounting of trade enterprises, trade margins are accounted for separately. For these purposes, the “Trade margin” account is used. All kinds of discounts and product losses and other data can also be reflected here.

When determining the markup, the following entries can be used:

1. Dt 41-2 - Kt 42 - the extra charge is reflected.
2. Dt 90 - Kt 42 - margin amounts reversed as a result of damage or loss of goods.

For the balance of goods, the markup is determined as follows: a percentage consisting of the ratio at the beginning of the month of the amount of the markup on inventory balances and received for the month to the amount of goods sold and final balances. The amount for goods sold is determined based on sales prices.

In organizations that pay VAT, the formation and accounting of markups is different. For example, tax defaulters (organizations using the simplified tax system or exempt from VAT) create a markup on account 42 itself.

If a trading company is a payer of this indirect tax, then it must use 2 subaccounts:

• 42-1 - accrued markup on the price from the supplier;
• 42-2 - VAT on the sales price, which is part of the markup.

When selling goods at retail, the tax amount is included in the final price.

Example. A trading company, which is a VAT payer, purchased goods for further sale at a price of 354 rubles per unit, including 18% VAT. Quantity of goods: 80 pieces. The trade margin is 20%. In accounting, the company uses subaccounts 42-1 and 42-2.

The following transactions will be reflected in the accounting:

Dt 41-2 - Kt 60 - 300*80=24,000 rub. - goods received from the supplier.

Dt 19 - Kt 60 - 54*80*=4320 rub. ― reflected input VAT from the supplier.

Dt 68 ― Kt 19 ― 4320 rub. ― the tax amount is accepted for deduction.

Dt 41-2 - Kt 42-1 - 4800 rub. ― trade margin on the price of goods without tax.

Dt 41-2 ― Kt 42-2 ― 864 rub. ― VAT is taken into account as part of the trade margin.

The total markup amount is 4800 rubles. + 864 rub. = 5664 rubles for the total batch of goods received. At the same time, the selling price of 1 unit of goods is 424.80 rubles.

In some circumstances, the trading margin may be reduced. This happens due to a sale and the need for a markdown. The operation to reduce the markup is reversed by the following posting:

Dt 41 - Kt 42 - reversal according to the amount of the markup.

Dt 91-2 - Kt 41 - excess of the reduction amount over the markup.

The trade margin indicator is used when setting prices for goods sold by retail enterprises. To record the amounts of trade margins, account 42 is used. In the article we will talk about the procedure for forming the realized margin on goods and, using an example, we will consider the main accounting entries for account 42. Content

• 1 The procedure for creating trade margins
• 2 Typical transactions for account 42
  • 2.1 Creating a markup on a product - example
  • 2.2 Postings for writing off margins on goods sold

The procedure for forming trade margins According to the law, each enterprise has the right to independently determine the retail price of the goods sold. Consequently, the amount of the trade margin and, as a consequence, the selling price of the goods is determined by the organization in each individual case.

Postings on account 42 - realized trade margin

When determining the markup, the following entries can be used:

1. Dt 41-2 - Kt 42 - the extra charge is reflected.
2. Dt 90 - Kt 42 - margin amounts reversed as a result of damage or loss of goods.

For the balance of goods, the markup is determined as follows: a percentage consisting of the ratio at the beginning of the month of the amount of the markup on inventory balances and received for the month to the amount of goods sold and final balances. The amount for goods sold is determined based on sales prices.

Accounting for trade margins

In addition to food products, the list of goods for which control over selling prices can be established includes children's products, medicines, medical products, goods intended for sale in the Far North and regions equivalent to it. If cases of overpricing are detected for goods regulated by states, the responsible persons and organizations will face fines.

For management, fines of up to 50,000 rubles are provided, for legal entities - in the amount of twice the amount of revenue exceeded as a result of overstatement for the entire period of overstatement, but for a total duration of no more than a year. Accounting for trade margins (account 42: postings) In the accounting of trade enterprises, trade margins are accounted for separately.
For these purposes, the “Trade margin” account is used. All kinds of discounts and product losses and other data can also be reflected here.

Accounting in trade

In all these cases, it is necessary to reverse the amount of the trade margin taken into account in the sales price of the goods: Debit 41 Credit 42 – the trade margin on goods has been reduced as a result of their markdown; Debit 44 Credit 42 – trade margin on goods used for own needs is written off; Debit 94 Credit 42 – the trade margin on goods disposed of as a result of shortages or damage has been written off. When writing off goods as a result of damage or damage, an act is drawn up in the TORG-15 form.

Info

It was approved by Decree of the State Statistics Committee of December 25, 1998 No. 132. Revaluation of goods is carried out on the basis of the order of the manager.

Postings for accounting for trade margins in retail trade

To reflect data on the value of the trade margin, account 42 is used, on which the following information can be taken into account:

• Trade margin;
• The amount of discounts;
• Possible loss of goods;
• Additional shipping costs.

The trade margin can be reflected in transactions as follows:

• The trade margin is calculated using the following posting: Dt 41 Kt 42 - the trade margin has been generated.
• For retail sales, subaccount 41.2 is most often used - goods in retail trade. The posting in this case takes the form: Dt 41.2 Kt 42 - trade margin for retail sales.
• When accounting for goods sold, the value of the trade margin is reversed, corresponding with the sales account (account.
  90).

Postings for accounting of goods in retail at sales prices

The trade margin is the organization's income. If the goods sold are subject to taxes: VAT, excise taxes, then they are included in the markup. To document the size of the trade margin, the company compiles a register of retail prices. It serves as the primary document on the basis of which the markup is calculated. There is no established form for such a register. Therefore, it can be compiled in any form.

Note that the approximate form of this document is given in Appendix 2 to the letter of the Ministry of Economy dated December 20, 1995 No. 7-1026. The register of retail prices must contain the following details: – company name; – date of compilation; - serial number; – signature of the director, chief accountant and company seal.
The register must reflect the following information: – name of the product; – purchase price of the goods (excluding VAT); – the company’s trade margin; – the amount of accrued VAT; – retail price per unit of goods.

Rules for maintaining accounting records in trade

Profit/loss from sales" 99 "Profits and losses" When writing off defects in trade, the postings will be the following, if the defect is detected after the goods have been posted and it is not the supplier's fault: Operation Debit account Credit account Defective goods are detected in the warehouse 94 "Shortages and losses from damage to valuables" 41 Losses of goods were written off within the limits of natural loss norms 44 94 Losses in excess of natural loss norms were written off (in the absence of guilty persons) 91 "Other income and expenses", subaccount "Other expenses" 94 Losses from defective goods were attributed to guilty persons 73 “Settlements with personnel for other operations” 94 Accounting in retail trade: account 42 If an organization engaged in retail trade accounts for goods at sales prices, account 42 “Trade margin” is used to summarize information about trade margins (discounts, markups) on goods Order of the Ministry of Finance dated October 31, 2000 No. 94n).

Accounting in trade postings

The sale of essential food products is also subject to state regulation. In relation to other products, it is allowed to establish a trade margin in any amount.

Attention

But in this case, the pricing process is greatly influenced by competition, which restrains the growth in the cost of goods. Trade enterprises have the right to set either a single markup for the entire assortment or use different values ​​that determine prices for individual product groups.

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Postings for accounting for trade margins Postings for sales transactions give an idea of ​​the profit received.

Account 42: trade margin. example, wiring

The government determines the acceptable price for certain goods that have special social significance. If a product is on the List of Price-Controlled Products, then their total cost, including markup, must be formed in accordance with current laws and regulations at the federal and local levels. If there is a steady increase in prices for goods of social importance, the Government has the right to temporarily limit their maximum limit. But this can be done if the price increase level exceeds 30% over a 30-day period. The maximum permissible value of the cost of such goods, established by the Government, can be maintained for up to 90 days. Socially significant goods include the following: meat, milk, sunflower oil and butter, flour, eggs, sugar, salt, bread, cereals, potatoes, some types of fruits and vegetables.

Selling expenses" 44 Profit from the sale of goods was identified at the end of month 90, sub-account "Profit/loss from sales" 99 In retail trade, accounting (entries) in organizations that keep records of goods without using account 42 will generally be similar to accounting for wholesale sales (taking into account the specifics of settlements - in cash and using plastic cards). It is important to consider that accounting entries in trade also depend on whether the seller holds title to the goods.

Indeed, in commission trading, the commission agent will have different entries: Operation Debit account Credit account Accepted goods on commission 004 Sold goods on commission 50, 57, 62 76, subaccount “Settlements with the principal” Write off sold commission goods 004 Costs associated with the sale of commission goods are reflected , not reimbursed by the principal 44 60, 10, 70, 69, etc.

Trade margin in retail trade accounting entries

As a result, the following entry appears: Dt 90 Kt 42 - the trade margin on goods sold is determined. According to Kt 42 (reversal), the following transactions are also reflected in correspondence with the corresponding accounts:

• Issued goods;
• Written-off goods;
• Damage, shortage.

The formation of trade margins in accounting also depends on whether the seller is a VAT payer. If the organization is on a simplified system or uses UTII, then it is allowed to record the markup directly on account 42.

If the seller charges VAT, then you will need to use subaccounts:

• 42.1 - trade margin at the supplier’s price;
• 42.2 - VAT is included in the trade margin.

Thus, when selling goods at retail, the amount of VAT is included in the final price, that is, the seller calculates and pays the tax in the generally accepted manner.

Account 42 “Trade margin” is passive, has a credit balance that shows the amount of trade margin attributable to the balance of goods, and is intended to account for the amount of trade margins (discounts, markups) on goods in retail enterprises, if they are recorded at sales prices . Account 42 “Trade margin” upon receipt of goods is credited for the amount of trade discounts (markups), and debited for the amount of trade discounts (markups) on goods sold, released or written off due to natural loss, defects, damage, shortages, etc.

The amounts of discounts (mark-ups) in the part related to sold goods are reversed to the credit of account 42 “Trade margin” and the debit of account 90 “Sales”, subaccount 2 “Cost of sales”. The amounts of discounts (mark-ups) in the part related to goods sold and released from warehouses and bases are determined according to the issued invoices and are written off (reversed) in a similar manner. The amounts of discounts (mark-ups) relating to unsold goods are clarified on the basis of inventory records by determining the applicable discount (mark-up) on goods in accordance with the established sizes.

In the future, when selling and writing off goods, the amount of trade margins (discounts) on goods sold is calculated at an average percentage. The average percentage is determined monthly as the quotient of division (balance at the beginning of account 42 minus turnover on the debit of account 42 plus the amount of markup made for the current reporting period): (balance of goods at the beginning of the month plus the selling price of goods sold during the reporting period), multiplied 100%

The amount of trade margin attributable to goods sold is determined by multiplying the selling price of goods sold by the average percentage of trade margin (discount).

When writing off the cost of missing and stolen inventory items, the amounts of discounts (markups) related to these values ​​are reflected in the debit of account 42 “Trade margin” and the credit of account 98 “Deferred income” (subaccount “Difference between the amount to be recovered from guilty persons, and the book value for shortages of valuables").

Analytical accounting for account 42 “Trade margin” should provide separate reflection of the amounts of discounts (mark-ups) and differences in prices related to goods in warehouses and bases, at retail enterprises and to goods shipped.