What are the accounting entries for the settlement and payment of social security?

Social security refers to a social and economic system that provides income or compensation for people who have lost their ability to work, are temporarily unemployed or suffer losses due to health reasons. How to make accounting entries when social security needs to be paid back in the process of enterprise settlement?

Accounting treatment after social security payment is settled.

First of all, in the annual social security settlement, overdue social security is accounted for through the previous annual profit and loss adjustment account. The accounting entries that an enterprise should prepare are as follows:

Debit: profit and loss adjustment of previous years-social security (company part)

Other receivables-social security (personal part)

Loans: bank deposits

Accounting entries of income tax settlement

When the annual income tax is settled:

Debit: previous year's profit and loss adjustment

Loan: Taxes payable-Income tax payable

Pay back income tax:

Borrow: taxes payable-income tax payable

Loans: bank deposits

Carry-forward previous year's profit and loss adjustment:

Debit: Profit Distribution-Undistributed Profit

Credit: adjustment of profit and loss in previous years

When the annual income tax is settled:

Annual settlement of income tax in the current year:

Debit: bank deposit

Credit: income tax expense

Annual settlement and refund of income tax in previous years:

Tax refund received:

Debit: bank deposit

Loan: Taxes payable-Income tax payable

When carrying forward:

Borrow: taxes payable-income tax payable

Credit: adjustment of profit and loss in previous years

Meanwhile:

Debit: previous year's profit and loss adjustment

Credit: profit distribution-undistributed profit

What is the profit and loss adjustment account of previous years?

Last year's profit and loss adjustment accounts for the events that occurred this year to adjust last year's profit and loss, and the important early mistakes found this year are related to the adjustment of last year's profit and loss. Including the items that need to be adjusted between the balance sheet date and the financial report approval date.