Account 911- Income summary

1. Accounting principles
This account is used to identify and record results of operating activity and other activities during an account year. Results of operating activities of business include: Results of operating activities, results of financial activities and of other activities.
- Results of operating activities is differential between net sales and cost of goods sold (including products, goods, investment properties and services, costs of construction products, costs relating to investment property business activities, such as: depreciation expenses, costs of repairs and upgrading, operating lease expenses, expenses of liquidating and liquidating investment property), selling expenses and General administration expenses.
- Results of financial activities is differential between revenues and expenses from financial activities
- Results of other activities are differential between Other Income and other expenses, and income tax expenses.
b) This account must record completely and exactly results of business activities in account period. Results of business activities must be applied of detailed accounting corresponding to
every kind of activity (activities of production, processing, trade and commerce, services, finance...). In each type of business activity, detailed accounting for every kind of products, industries, services can be necessarily applied.
c) Sales and income items which are posted in this account are net sales and net income

2. Structure and contents of account 911 - Income summary
Debit side:
- Costs of products, goods, investment perpetration and services which were sold.
- Costs of financial activities, income tax expenses and other expenses;
- Selling expenses and General administration expenses;
- Profits transferred
Credit side:
- Net revenues from products, goods, investment properties and service sold in period;
- Revenues from financial activities, Other Income, and decrease record in business income tax expenses;
- Losses transferred.
Account 911 does not have ending balance.

3. Method of accounting for several major transactions
At end of account period, transferring net sales to Account ―Determination of business activity‖, record:
Dr 511 - Revenues from sales and rendering services
Cr 911 - Income Summary
b) Transferring costs of products, goods, services consumed in period, expenses related to investment property business activity, such as: Depreciation expenses, repair and upgrading expenses, operating lease expenses, expenses of liquidating and transferring investment property, record:
Dr 911 - Income Summary
Cr 631 - Cost of goods sold
c) At end of account period, posting revenues from financial activities and Other Income, record:
Dr 515 - Revenues from financial activities
Dr 711- Other Income
Cr 911 - Income Summary
d) At end of account period, transferring expenses of financial activities and other expenses, record:
Dr 911 - Income Summary
Cr 635 - Financial expenses
Cr 881 - Other expenses.
dd) At end of account period, posting current income tax expenses, record:
Dr 911 - Income Summary
Cr 8211- Current business income tax expenses.
e) At end of account period, posting differential between Debit amount and Credit amount of Account 8212 ―Deferred business income tax expenses‖
- If Account 8212 has: Debit amount greater than Credit amount, then the differential will be recorded a follows:
Dr 911 - Income Summary
Cr 8212 - Deferred business income tax expenses
- If Debit amount of 8212 is smaller than Credit amount of Account 8212, then posting the differential will be recorded a follows:
Dr 8212 - Deferred business tax expenses
Cr 911 - Income Summary
g) At end of account period, posting selling expenses incurred during period as follows:
Dr 911 - Income Summary
Cr 641 - Selling expenses
h) At end of account period, transferring General administration expenses induced during period as follows:
Dr 911 - Income Summary
Cr 642 - General administration expenses.
i) Transferring income in the period to undistributed post-tax profits:
- Transferring profits, record:
Dr 911 - Income Summary
Cr 421 - undistributed post-tax profits
- Transferring losses, record :
Dr 421 - undistributed post-tax profits
Cr 911 - Income Summary
k) Periodically, dependent cost-accounting units assigned to monitor income in the period, but not to monitor undistributed post-tax profits transfer income in the period to the superior units:
- Transferring losses, record:
Dr 911- - Income Summary
Cr 336 – Inter-company payables
- Transferring losses, record :
Dr 336 – Inter-company payables
Cr 911 - Income Summary

Source: Circular 200, Article 96