How to write off accounts payable

Accounts payable are unfulfilled payments of an enterprise for obligations to suppliers and contractors for purchased goods and services, tax authorities for accrued taxes, employees of an organization for accrued salaries, and founders for paying dividends.

Instruction manual

one

The amount of accounts payable should be recorded from the moment of its occurrence to full repayment to the counterparty or write-off. Overdue payables are written off if the limitation period has expired. The write-off occurs for each type of obligation based on an inventory or a written order from management. These amounts are credited to the accounts of financial results from commercial enterprises and to accounts of increased income from non-profit.

2

The amount of accounts payable with an expired limitation period should be attributed to other income. In this case, the account of settlements with counterparties is debited (account 60, 66, 67, 68, etc.) and the account 91, subaccount 1 "Other income" is credited.

3

For the purposes of calculating income tax, the amounts of debts payable are included in non-operating income. But there is a rule. If you write off tax arrears, for example, if they are reduced, then this amount is not included in income.

4

Amounts payable are recorded in non-operating income, i.e. subject to attribution to financial results, therefore, write-off of these amounts should be done in a timely manner. Otherwise, the actions of the enterprise may be regarded by the tax authorities as concealing non-operating income.

5

As for the deposited wages of employees, for the purposes of taxation of profits, it is included in non-operating income after the expiration of the limitation period, which in accordance with Russian labor legislation should not exceed three months.

6

For enterprises that combine a common taxation system and a single tax on imputed income, non-operating income includes only that part of accounts payable that arose as part of the general taxation system.