NET INCOME AND MANDATORY BALANCE REFORMATION

This article will help you understand for beginners accountants in the accounting of profits and losses. It tells on what account the company reflect the profit or loss, how often to do it, and why the account balance of 90 "Sales" is not shown in the balance sheet. When closing the sub-account account 90 "Sales", which is transferred to profit or loss from account 99 "Profits and losses ", that is the balance of the Reformation, and why it is needed.