Account 42 “Trade margin” is intended to summarize information about trade margins (discounts, markups) on goods in organizations engaged in retail trade, if they are recorded at sales prices.
Account 42 “Trade margin” also takes into account discounts provided by suppliers to organizations engaged in retail trade for possible losses of goods, as well as for reimbursement of additional transportation costs.
Account 42 “Trade margin” is credited when goods are accepted for accounting for the amount of trade margin (discounts, markups).
Amounts of trade margins (discounts, markups) on goods sold, released or written off due to natural loss, defects, damage, shortages, etc., are reversed to the credit of account 42 “Trade margin” in correspondence with the debit bills 90"Sales" and other relevant accounts. 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.
The amount of discount (mark-up) on the balance of unsold goods in organizations engaged in retail trade can be determined by a percentage calculated based on the ratio of the amount of discounts (mark-up) on the balance of goods at the beginning of the month and turnover on the credit of account 42 "Trade margin" (excluding reversed amounts) to the amount of goods sold during the month (at sales prices) and the balance of goods at the end of the month (at sales prices).
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 retail organizations and to goods shipped.
Account 42 "Trade margin"
corresponds with accounts
| by debit | on loan |
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41 Products 44 Selling expenses 90 Sales 94 Shortages and losses from damage to valuables |
Application of the chart of accounts: account 42
- How should the markup (in percentage) be reflected in retail trade in accounting?
In accounting, account 42 “Trade margin” is used. Account 42 reflects information about trade margins (discounts, mark-ups...). Like any other operation, the markup... ;Goods" and the credit of account 42 "Trade margin" for the difference between the cost... of the selling price of goods on the credit of account 42 "Trade margin" is reversed to the debit... 600,000 rubles, and the trade margin (balance on account credit 42) is 100,000 rubles...
- Formation of the initial (purchase) cost of goods in a retail trade organization
To reflect trade margins (discounts), account 42 “Trade margins”. The Instructions for account 42 “Trade margin”, approved by the Order... indicate that: “Account 42 “Trade margin” is intended to summarize information on trade margins (discounts, markups... additional transport costs. Account 42 “Trade margin” is credited "When accepting... the components of the trade margin in the following order: · account 42 “Trade margin” subaccount 42-1 “Trade margin”; · account 42 “Trade margin” subaccount 42-2 ...
- Retail trade in glass, porcelain, earthenware
- Retail
Trade margin (discount) account 42 “Trade margin”. The Instructions for account 42 “Trade margin”, Chart of Accounts, indicate that: “Account 42 “Trade margin...” is intended to summarize information about trade margins... at sales prices. Account 42 “Trade margin” also takes into account discounts, ... transportation costs. Account 42 “Trade margin” is credited when accepting...
- Calculation of gross profit in a retail organization using sales prices
Reverse the amount of the trade margin reflected in account 42 “Trade margin”. This... invoice 42 “Trade margin” for the month); N in - trade margin on disposed goods (debit turnover on account 42 “Trade margin ... account 42 “Trade margin”); N in – trade margin on disposed goods (debit turnover on account 42 “Trade margin”); Nk - trade margin... on the balance of goods at the end of the reporting period (account balance 42 “Trade margin...
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Taking into account the trade margin, naturally, account 41 “Goods” arose in correspondence with account 42 “Trade margin”. In addition... in relation to account 42 “Trade margin” it was said: “Account 42 “Trade margin” is intended to summarize information on trade margins (discounts... sub-accounts, namely: · 42.1 “Trade margin”; · 42.2 “VAT ". Correspondence of accounts Amount, rubles Contents... transactions Debit Credit 41 “Goods” 42.1 “Trade margin...
- Preparation of documents and determination of financial results from the provision of catering services
The structure of the trade margin in the organization Diana LLC under account 42 “Trade margin” the following sub-accounts are opened: 42.1 “Trade margin”; 42 ... balance and credit turnover on account 42 “Trade margin” (amount A). 2. The final sums up... maintains analytical accounting for account 42 “Trade margin” (42.1 “Trade margin” and 42.2 “VAT”), then a similar... “sub-account “Cost of sales” 42.1 “Trade margin” 2048 Trade margin is reversed , attributable to sold products...
- Markdown of goods. Consider the nuances
The amount of the trade margin, then the accountant makes a reversing entry in the debit of account 41 ... in correspondence with the credit of account 42 “Trade margin”. EXAMPLE 2 ... 2 pcs.) - the realized trade margin was reversed; DEBIT 90 subaccount “VAT” ... . If the amount of the markdown exceeds the trade margin (that is, the sales value... the entire amount of the trade margin: DEBIT 41 CREDIT 42 - the trade margin on discounted items is reversed... - the markdown of goods in excess of the trade margin is reflected. If we approach the situation formally...
- Accounting for retail sales of glass, porcelain, earthenware
That is, reverse the amount of the trade margin reflected in account 42 “Trade margin”. According to the Instructions for the Plan... of the month and turnover on the credit of account 42 “Trade margin” (without taking into account reversed amounts) by... the period (balance of account 42 “Trade margin” at the beginning of the reporting period); TN p - trade margin on goods...; ТН в – trade margin on disposed goods (turnover in the debit of account 42 “Trade margin”); T – trade turnover... in the amount of 80,000 rubles; For account 42 “Trade margin” - 15,514 rubles; Behind...
- Retail trade of books
- Furniture retail
Retail trade organizations reflect the trade margin on the credit of account 42 “Trade margin” in correspondence with the debit... of account 41 “Goods”. Proceeds from the sale..., that is, reverse the amount of the trade margin reflected in account 42 “Trade margin”. This difference, representing the gross... . All goods have a trade markup of 40%. Correspondence of invoices Amount, rubles Contents of the transaction...
- Features of retail trade in air conditioners and ventilation equipment
Retail trade organizations reflect the trade margin on the credit of account 42 “Trade margin” in correspondence with the debit... of account 41 “Goods”. Proceeds from the sale..., that is, reverse the amount of the trade margin reflected in account 42 “Trade margin”. This difference, representing the gross... . All goods have a trade markup of 40%. Correspondence of invoices Amount, rubles Contents of the transaction...
- Accounting price of products (raw materials) in public catering
Trade margin. And since it was possible to account for raw materials taking into account the trade margin, naturally, an account arose... 41 “Goods” in correspondence with account 42 “Trade margin”. Entry... or account 41 “Goods”, or at the selling price with the addition of a trade margin and..., respectively, with reflection on account 41 “Goods... adding a trade margin. Let’s assume that at Bogatyr LLC the trade margin is...
- Accounting for the sale of finished products and determining the financial result of a catering organization
Then, in the credit of account 42 “Trade margin”, the amounts of trade discounts and markups on... prices are taken into account as accounting prices; the trade margin is a source of income. ... » 42 “Trade margin” - reversed The trade discount (margin) relating to sold products and goods is written off Trade margin, ... in practice there are several ways to determine the trade margin, however, the most common is... (account 41.2) Using the average percentage, you can determine what trade margin is...
- Your organization buys goods and materials at a discount
The application of the Chart of Accounts does not provide for debit turnover on account 42 “Trade margin”. If... the resulting discount is written off to the debit of account 90 ... account 60 and at the same time adjust the trade margin in correspondence with the credit of account 42, then the amount of the trade margin... will decrease. But on the score...
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 forming 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:
- Dt 41-2 - Kt 42 - the extra charge is reflected.
- 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 on the simplified tax system or exempt from VAT) create a markup on account 42 itself.
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.
It needs to be documented with an inventory document. This document should indicate: – name of the product; - quantity of goods; – old and new retail prices; – the cost of the goods in old and new prices; – the amount of depreciation or revaluation. HER.
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.
The chosen method will need to be fixed in the accounting policy. Get 267 video lessons on 1C for free:
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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 payments - 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's postings will be different: 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 VAT amount is included in the final price, that is, the seller calculates and pays the tax in the generally accepted manner.
One of the types of entrepreneurship is trade in products and goods wholesale and retail. In this case, the seller’s profit 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 allowed 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:
| Product | Provider | Cost price | Markup 1 | Retail price 1 | Markup 2 | Retail price 2 |
| Pen | LLC "Prestige" | 45.00 rub. | 30% | 58.50 rub. | 35% | 60.75 rub. |
| Pen | LLC "Titan" | RUB 54.00 | 30% | 70.20 rub. | 35% | RUR 72.90 |
| Pencil | LLC "Dream" | 25.00 rub. | 30% | RUB 32.50 | 35% | 33.75 rub. |
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 final 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:
- Dt 41-2 - Kt 42 - the extra charge is reflected.
- 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 on 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 amount of the markup 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.
Account 42 of accounting is a passive account “Trade margin”, which summarizes information about discounts/mark-ups on goods of retail enterprises, when reflecting the movement of goods at sales value. This account also reflects discounts from retail suppliers, expenses for possible losses of goods or reimbursement of additional transportation costs.
A trade margin is an added value to the purchase price of a product, used by an organization to cover the costs of selling the product, paying indirect taxes and, ultimately, making a profit.
Account 42 “Trade margin” is passive and is credited when goods are accepted for accounting in the amount of a discount (mark-up) or trade margin.
The main subaccounts 42 accounts are presented in the figure:
The purpose of analytical accounting for account 42 is to ensure separate accounting of the amounts of discounts (markups) and price differences:
- goods for retail trade;
- goods shipped.
The amount of the discount (mark-up) on the balance of unsold goods can be determined by %, based on the ratio of the amount of the discount/mark-up on the balance of goods at the beginning of the month and the turnover on KT 42 accounts without taking into account reversed amounts to the amount of goods sold and their balance at the end of the month:
Postings to account 42 “Trade margin”
The main transactions for account 42 are shown in the table:
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| Dt | CT | Wiring Description | A document base |
| 41 | 42 | Reflection of the amount of trade margin on goods received/reflection of write-off of trade margin (markdown of goods) | Register of retail prices |
| 44 | 42 | The write-off of the amount of trade margin on goods used for own needs is reflected | Accounting information |
| 90.02 | 42 | The amount of the trade margin has been reversed (realized trade margin) | Register of retail prices, Accounting certificate |
| 94 | 42 | The write-off of the amount of trade margin on disposed goods as a result of shortage/damage is reflected. | Inventory report, Inventory list, Accounting certificate |
Examples of transactions and postings on account 42
Example 1. Accrual and write-off of trade margins
Let’s say the Procter store purchased 8 multicookers at a price of 2,360 rubles, incl. VAT – 360 rub. The markup on goods without VAT is 35%.
The accrual of trade margins in the Procter store is reflected in the following transactions:
| Dt | CT | Transaction amount, rub. | Wiring Description | A document base |
| 41 | 60 | 16 000 | Receipt of goods from the supplier | Packing list |
| 19 | 60 | 2 880 | VAT accepted for accounting | Packing list |
| 68 VAT | 19 | 2 880 | Tax deduction received | Invoice |
| 60 | 51 | 18 880 | Payment has been made to the supplier for the goods | Bank statement/ Payment order |
| 41 | 42 | 9 488 | The trade margin on goods received is reflected | Register of retail prices |
Subsequently, the Procter LLC store sold all 8 multicookers at a price of 3,186 rubles, incl. VAT.
The sale of goods and the write-off of trade margins at Procter LLC are reflected in the following transactions:
| Dt | CT | Transaction amount, rub. | Wiring Description | A document base |
| 50 | 90.01 | 25 488 | Revenue from the sale of goods is reflected | PKO (KO-1) |
| 90.02 | 41 | 25 488 | The book value of goods has been written off | Implementation report |
| 90.02 | 42 | 9 488 | Realized trade margin reversed | Register of retail prices, Accounting certificate-calculation |
| 90.03 | 68 VAT | 3 888 | VAT accrued for payment to the budget | Implementation report |
| 90.09 | 99 | 5 600 | Financial result from the sale of goods | SALT |
Example 2. Accounting for trade margins when writing off goods for own needs
Let's assume that LunaM LLC sells construction materials at retail. To renovate the store premises, we used our own building materials in the amount of 31,000 rubles. The trade margin is 30%.
Accounting for trade margins when writing off goods for the own needs of LunaM LLC is reflected in postings.
Account 42 “Trade margin” is widely used by organizations operating in the retail trade sector to display information about trade margins on products sold, which are recorded at the enterprise at sales prices.
Account 42 in accounting is collective information about the markups established by enterprises on assets sold to consumers when maintaining accounting records of available products at retail prices. Used by trading companies to control differences between the estimated sales value and the purchase price set by suppliers, i.e. information is summarized about the organization’s possible income from retail trade.
Attention! The basis of retail trade is the transfer of assets exclusively to the end consumer.
Account 42 in accounting is one of the components of monitoring the activities of a company in the retail trade sector. The main information is concentrated here:
- Amounts set by the company in excess of the purchase price of the goods to make a profit from the activities carried out.
- Discounts provided by suppliers to sellers - for possible product losses or reimbursement of transportation costs.
Attention! With each change in selling prices, information should be displayed on account 42.
Account 42 “Trade margin” is passive. The loan displays information about the amount of amounts established by the organization in excess of the purchase price for goods sold when capitalizing purchased assets from suppliers. When selling products or writing them off due to various situations (spoilage, defects, natural loss), the amount of the displayed trade margin is reversed from the credit account. 42 in correspondence with the relevant accounts (for example, 90 “Sales”).
The amount of the approved discount (mark-up) on the balance of products of enterprises operating in the retail trade that were not sold during the period under review can be calculated based on a percentage. The interest, in turn, is defined as the ratio of amounts in excess of the purchase price accrued on the balance of products at the beginning of the month (credit balance of account 42) plus credit turnover of the account. 42, to the total amount of goods sold in the period (accounted for at sales prices) and the final balance of products in the warehouse at the end of the month (Dt account 41).
Analytical monitoring
The main purpose of using the account. 42 - ensuring a separate display of the amounts of markups established by retail organizations for products sold.
Attention! Account 42 is used exclusively in organizations that record purchased goods on account 41 at sales prices.
Normative base
Using the account 42 to display information about the amounts accepted by companies in excess of the purchase price for goods sold in order to benefit from activities, is carried out in accordance with the current Chart of Accounts, approved by Order of the Ministry of Finance dated October 31, 2000 No. 94, PBU 5/01 “Accounting for inventories » and other legally approved documents.
Basic accounting entries for using account 42
- Displaying the established markup by retail companies when posting products received from suppliers in selling prices
- Reversing records of approved markups
Dt 44 Kr 42 - for goods used to cover the organization’s own needs.
Dt 90.02 Kr 42 - for products sold
Dt 94 Kr 42 - for assets disposed of due to shortages identified during the inventory, or damage.