Q&A: accounting

NAS No. 21 provides four accounts in group 4700 for employee debts, two of which are close to your situation:

The official text itself points to two paths: - In the table of examples for income accounts (paragraph 383, line 3), the sale of products to an employee is shown as Dt 4790 – Ct 9010, 9020, 9030 (this line covers sales to an employee, including the sale of special clothing). - Account 4710 is intended for goods sold "on credit"; its withholding entry is separate: Dt 6710 – Ct 4710 (paragraph 290, line 15).

Accordingly: an ordinary sale to an employee goes to 4790; a sale "on credit" paid in instalments on a schedule goes to 4710. The standard does not give a clear boundary between the two cases (for example, how many days of deferral count as "credit"). So write in your accounting policy which one you use and apply it consistently.

Example (compiled by the author, hypothetical figures). "Nafis pishiriq" LLC sold employee Sardor a box of pastries: selling price 300,000 soums, cost 210,000 soums. The company is taken as not a VAT payer (if it is a VAT payer, VAT is added to the sale entries; its rules are not the subject of this answer). Sardor's accrued salary for the month is 2,400,000 soums.

At the end of the month the balance on 4790 for Sardor is 0. Profit: 300,000 − 210,000 = 90,000 soums (the difference between sales income and cost). The part of the salary paid to Sardor will be 300,000 soums less than the accrued amount before the withholding.

Two notes: 1. Analytical accounting of settlements with employees is kept per employee (end of paragraph 205). That is, 4790 must have a separate card such as "Sardor", "Madina". 2. How much may be withheld from salary and the legal procedure for it are set by labour legislation; this answer does not cover it, so check with a lawyer.

Source: NAS No. 21, paragraphs 200, 205, 290 (lines 11 and 15), 383 (line 3) and 390.

This is a royalty — a payment for using another organisation's asset (brand, recipe, know-how). Under NAS No. 21, an organisation's obligations for royalties are recorded in account 6930 "Royalties payable", which is credited in correspondence with expense accounts (paragraph 300). Analytical accounting is kept for each creditor.

Example (prepared by the author, amounts are illustrative). October revenue of "Shahrisabz kofe" LLC is 150,000,000 soums. Royalty under the contract: 150,000,000 × 4% = 6,000,000 soums.

9690 is "Other expenses on financial activities". That is why this amount appears in the statement of financial results not in period expenses but in the line "Other expenses on financial activities" (line 210) (Regulation approved by Order No. 181, Appendix 2).

Royalty unpaid at month-end goes to the balance sheet line "Other payables" (line 760) (Regulation approved by Order No. 181, Appendix 1).

Practical tip: have the contract state clearly from which revenue (with or without VAT) the royalty is calculated — otherwise a dispute with the brand owner will arise every month. If the royalty recipient is a foreign company, check the tax consequences separately.

Source: NAS No. 21, paragraphs 300 and 309; Regulation approved by Order No. 181 of the Minister of Economy and Finance, Appendices 1 and 2.

A penalty is recorded as income only in the amount acknowledged by the supplier or set by the economic court. A claim amount that has only been raised and not acknowledged is not reflected in the accounts (NAS No. 21, paragraph 213, subparagraph "d").

Example (prepared by the author, amounts are illustrative). "Marg'ilon tola" LLC concluded a contract with a supplier for 80,000,000 soums, with an agreed penalty of 0.1 percent of the contract amount for each day of delay. The delay is 10 days:

80,000,000 × 0.1% × 10 = 800,000 soums.

4860 is "Claims receivable", 9330 is "Fines, penalties and surcharges collected". Under paragraph 398, fines and penalties collected from debtors for breach of business contracts are recorded precisely to the credit of 9330.

Note: paragraph 213 of the standard also mentions linking this amount with 9390 "Other operating income", while paragraph 398 and the tables point to 9330. Record your choice in the accounting policy and apply it consistently. In the statement of financial results both go to the line "Other income from core activities" (line 090) (Regulation approved by Order No. 181, Appendix 2).

Practical tip: obtain a written document from the supplier acknowledging the penalty (a letter or a reconciliation statement) — this very document is the basis for the entry in 4860.

Source: NAS No. 21, paragraphs 213, 214, 216, 226, 398 and 405; Regulation approved by Order No. 181, Appendix 2.

The liability is recorded when the court decision is issued and in the amount set by the court. Under NAS No. 21, debt for fines, penalties and forfeits for non-compliance with contractual obligations is accrued in the amount acknowledged or recognised by arbitration (the court) (table to paragraph 309, line 14). While the dispute is ongoing, no entry is made on this line.

Which accounts: - 6960 "Claims payable" — claims raised by buyers and other organisations, and our debt for acknowledged (recognised) fines, penalties and forfeits; it is credited in correspondence with expense accounts (paragraph 303). Analytical accounting is kept for each creditor and claim (paragraph 304). - 9430 "Other operating expenses" — fines and penalties are recorded precisely in this account (paragraph 410).

Example (prepared by the author, amounts are illustrative). The lessor demanded a forfeit of 15,000,000 soums from "Denov savdo" LLC. The firm did not agree, and the economic court set 9,000,000 soums.

Once paid, the debt in 6960 is closed. In the statement of financial results this expense appears in the line "Other operating expenses" (line 070) (Regulation approved by Order No. 181, Appendix 2).

Practical tip: if the dispute carries over from one reporting period to the next, the accountant and the manager should discuss together whether to describe it in the notes to the annual statements.

Source: NAS No. 21, paragraphs 303, 304, 309, 410 and 412; Regulation approved by Order No. 181, Appendix 2.

Since there is no obligation to repay, it is not a loan. Under NAS No. 21, income received free of charge in the form of cash and cash equivalents is recorded to the credit of account 9380 "Non-repayable financial assistance" in correspondence with cash accounts (paragraph 403).

Example (prepared by the author, amounts are illustrative). While dealing with the aftermath of a mudflow, "Kosonsoy qandolat" LLC received 50,000,000 soums of non-repayable assistance from a partner company.

9380 is a transit account in group 9300 "Other income from core activities": it is closed at the end of the period and leaves no balance. In the statement of financial results the amount appears in the line "Other income from core activities" (line 090) (Regulation approved by Order No. 181, Appendix 2).

When this entry does not fit:

Practical tip: obtain a letter or agreement from the partner stating that the money is not to be repaid — this is the main document for the entry in 9380. Check the profit tax consequences separately under the Tax Code.

Source: NAS No. 21, paragraphs 403 and 405; Regulation approved by Order No. 181, Appendix 2.

Not expensed immediately. Postage stamps are a cash equivalent and are recorded in account 5610 "Cash equivalents (by type)" at nominal value (NAS No. 21, paragraph 235). On purchase 5610 is debited, and when used it is credited in correspondence with expense accounts (same paragraph). Analytical accounting is kept by type.

Example (prepared by the author, amounts are illustrative). "Qibray nashr" LLC bought 300 stamps with a nominal value of 5,000 soums: 300 × 5,000 = 1,500,000 soums. During the month 120 were used for office correspondence: 120 × 5,000 = 600,000 soums.

At month-end 180 stamps remained: 180 × 5,000 = 900,000 soums. On the balance sheet this amount is shown in the line "Other cash and cash equivalents (5500, 5600, 5700)" (line 360) (Regulation approved by Order No. 181, Appendix 1).

If the stamps are bought for cash, the entry is Dr 5610 Cr 5010 (table to paragraph 236, line 1). If a shortage is found at stocktaking and charged to the financially responsible person — Dr 4730 Cr 5610 (table to paragraph 206, line 10).

Practical tip: account for stamps in a separate book like cash in the till, and count the balance every month and reconcile it with 5610 — even if the amount is small, uncontrolled stamps quickly "disappear".

Source: NAS No. 21, paragraphs 206, 235, 236 and 409; Regulation approved by Order No. 181, Appendix 1.

No. Goods bought for resale are carried in account 2910 "Goods in the warehouse" at purchase cost (NAS No. 21, paragraph 145). If you use them yourself or process them, they are no longer goods for sale, so they are removed from 2910. The table in paragraph 154 of NAS No. 21 has a separate line for each case.

Note: the table in paragraph 154 has no line that charges goods directly to administrative expenses. The table shows the goods first being transferred to materials and then the materials being used.

Example (prepared by the author). At "Rangin Qurilish Mollari" LLC the purchase cost of one bucket of paint is 120,000 soums. During the month, 15 buckets were used to paint the office and 40 buckets were given to the colour-mixing workshop.

The paint mixed in the workshop is received into the warehouse as finished goods: Dt 2810, Ct 2010. Its amount is the actual cost made up of the 4,800,000 soums of paint and the workshop's other costs attributable to this product, because finished goods in 2810 are carried at actual production cost (paragraph 138).

Why does this matter? If the paint stays in 2910, the stocktake will show a shortage of 15 + 40 = 55 buckets, and the "Goods" line in the balance sheet will be overstated. If you charge the paint given to the workshop to the cost of goods sold, the gross profit from trading will be wrong.

Tip: document every issue from the warehouse with an internal delivery note and state its purpose clearly (own needs or processing) — the account is chosen on the basis of exactly this document.

Source: NAS No. 21, paragraph 104 (line 13), paragraph 138, paragraph 141 (line 1), paragraph 145, paragraph 154 (lines 8 and 10).

No. In all three cases the products leave account 2810 "Finished goods in the warehouse", but the account debited depends on where the products went (NAS No. 21, table in paragraph 141).

Line 6 lists accounts 2010, 2310, 2510, 2710 and 9410–9430 for internal needs: which one is used depends on which department used the products.

Example (prepared by the author). At "Paxtaoy To'qimachilik" LLC the actual production cost of one towel is 45,000 soums.

As a result, 1,350,000 soums is allocated to the cost of products together with the workshop's expenses, 450,000 soums becomes an administrative expense and 2,250,000 soums an other operating expense. If you record everything in 9430, the cost of products looks too low and other expenses too high.

Tip: document every issue with an internal requisition and delivery note and state the receiving department clearly — the account is chosen on the basis of exactly this document. The tax consequences of a free transfer are examined separately.

Source: NAS No. 21, paragraphs 138 and 141.

No. Products given to an agent for sale are still yours; they are not in the warehouse but remain on your balance sheet. Account 2830 "Finished goods transferred under agency (commission) agreements" exists for this (NAS No. 21, paragraph 140). The sale is recognised when the agent sells the products, and the same entries are made as for 2810.

Example (prepared by the author). "Lola Keramika" LLC gave 200 vases (cost 80,000 soums each) to the "Uy Bezagi" shop. At the end of the month the shop sent a report that 150 of them had been sold at 130,000 soums each. Amounts exclude VAT.

In the books of the principal ("Lola Keramika"):

At the end of the month, 50 vases remain in 2830: 16,000,000 − 12,000,000 = 4,000,000 soums.

In the books of the agent ("Uy Bezagi"), the vases are not its property, so they are carried in off-balance sheet account 004 "Goods accepted under agency (commission) agreements" at the price stated in the acceptance and transfer certificate (paragraph 441). The shop's own income is the agency fee: Dt 4010, Ct 9010 (paragraph 383, line 5).

Tip: obtain a sales report from the agent every month and reconcile the balance in 2830 with the actual stock in the shop. Analytical accounting for 2830 is kept by responsible persons, product types (grades, batches) and storage locations (paragraph 140); you can additionally set a separate breakdown for each agent in your accounting policy.

Source: NAS No. 21, paragraphs 140, 141, 383 and 441.

It is not a sale. A branch is a separate division of the legal entity, so transactions between them are kept as intra-company settlements. At head office, the branch's debt is recorded in account 4110 "Receivables from separate divisions": it holds settlements for property and tangible assets transferred to the division, payment of wages to the division's employees and other current transactions (NAS No. 21, paragraph 176). Debt in the opposite direction — the organisation's current liabilities to its branches — is recorded in account 6110 "Payables to separate divisions" (paragraph 259).

Example (prepared by the author). "Sarbon Savdo" LLC sent its branch goods worth 60 million soums and transferred 25 million soums for wages. Later the branch returned 40 million soums to head office's account.

In the books of head office:

Balance of 4110 at head office: 60 + 25 − 40 = 45 million soums.

If the branch sends goods to head office, head office records Dt 2910, Ct 6110 (paragraph 154, line 3). If the branch keeps a separate balance sheet, set out the entries in its own books in the accounting policy.

Why not 9020? 9020 "Revenue from sale of goods" is for sales to customers. Goods transferred to a branch do not leave the legal entity; they only move from one place to another within it. If you record this as a sale, revenue will appear twice when the branch sells the goods to a real customer.

In the balance sheet these amounts have separate lines: "Debt of separate divisions (4110)" — line 230, "Debt to separate divisions (6110)" — line 620 (Regulation approved by Order No. 181, Appendix 1).

Tip: analytical accounting for 4110 is kept for each separate division (NAS No. 21, paragraph 177), and for 6110 also separately for each division (paragraph 260). At the end of the month, check the head office and branch balances with a reconciliation statement.

Source: NAS No. 21, paragraphs 154, 176, 177, 178, 259 and 260; Regulation approved by Order No. 181, Appendix 1.

No. 9010 is for sales of finished products and 9020 for sales of goods. But for you the yarn is a raw material (1010 "Raw materials and supplies"), and selling it is not your core activity. Under NAS No. 21, the value of materials disposed of to outside parties is written off to account 9220 "Disposal of other assets" (paragraph 104, line 16). The debit of 9220 records the carrying amount of the asset sold and the credit the sales proceeds, and the difference is closed as a gain or loss (paragraph 393).

Example (prepared by the author). "Gilam Nur" LLC sold yarn with a cost of 18,000,000 soums for 21,000,000 soums (excluding VAT; VAT is not considered in this example).

If the yarn had been sold for 16,000,000 soums, there would have been a loss of 2,000,000 soums: Dt 9430, Ct 9220 (line 27, b).

As a result, 9220 is closed with a zero balance. In the statement of financial results this sale does not increase net revenue; the gain appears within "Other income from core activities" (line 090).

Why does this matter? If you record the yarn in 9020, net revenue and gross profit are artificially inflated and profitability ratios are distorted.

Source: NAS No. 21, paragraphs 104 (line 16), 393 and 394; Regulation approved by Order No. 181, Appendix 2.

No. The line is the customer's property; you received it only for installation. When another party's property is temporarily with you, paragraph 437 of NAS No. 21 provides for keeping it on an off-balance sheet account using the simple (single-entry) system. There is a separate account for the contractor: 005 "Equipment accepted for installation" (paragraph 442).

Rules of paragraph 442:

Your own installation costs and income are kept on the ordinary accounts:

Example (prepared by the author, hypothetical figures). "Ustoz Montaj Servis" LLC is installing a packaging line in the workshop of "Qo'rg'ontepa Sut" LLC. In the customer's handover document, the line is divided into three units.

For the installation, the firm used cables and fasteners worth 18 million soums from its own warehouse and accrued 42 million soums in wages to the installers: the debit of 2010 accumulated 18,000,000 + 42,000,000 = 60,000,000 soums. When the work is finished and the line is handed over to the customer under an act:

Gross profit from installation: 90,000,000 − 60,000,000 = 30,000,000 soums. The example is simplified: mandatory payroll contributions and VAT calculations are not included.

Note: the line worth 1 billion soums never goes to 9030 or 4010. The income is only your service, the installation fee. If records are kept by unit, it is clear which unit has been returned when the installation is handed over in stages.

Source: NAS No. 21, paragraphs 120, 174, 437 and 442.

Such a workshop is auxiliary production. Under paragraph 123 of NAS No. 21, the costs of production that is auxiliary to primary production are summarised on account 2310 "Auxiliary production"; the activities listed in paragraph 124 include the repair of fixed assets.

Step 1. Costs are accumulated in the debit of 2310 (table to paragraph 126):

Step 2. At the end of the month, the actual cost of the workshop's services is transferred from the credit of 2310 to the users. Paragraph 125 lists 2010, 2510, 2810, 9130 and 9420 among the accounts that correspond with the credit of 2310.

Example (prepared by the author, hypothetical figures). October costs of the repair workshop of "Temir Qanot Mash" LLC: materials 9.6 million, wages 12 million, depreciation 2.4 million — 24 million soums in total. The workshop worked 200 hours. Working hours were taken as the allocation base (this is the author's choice; set the base in your accounting policy). Cost of one hour: 24,000,000 / 200 = 120,000 soums.

If a balance remains on 2310 at the end of the month, it represents the value of work in progress (paragraph 125). Analytical accounting is kept by cost elements, cost items and product types (same paragraph).

Source: NAS No. 21, paragraphs 75, 120, 123, 124, 125 and 126.

Under paragraph 121 of NAS No. 21, semi-finished products produced by the organisation itself in a full cycle may be recorded on account 2110 "Semi-finished products of own production". The examples given in the paragraph include spun yarn in the textile industry — exactly your case.

Under the same paragraph, the debit of 2110 records the costs of producing semi-finished products in correspondence with 2010; the credit records those transferred for processing in correspondence with 2010, and those sold in correspondence with 9110.

Example (prepared by the author, hypothetical figures). In October, "Marg'ilon Ipak" LLC spun 10 tonnes of yarn at an actual cost of 42,000 soums per 1 kg.

Under line 1 of the table to paragraph 174, the journal entry for sales revenue is Dr 4010 – Cr the relevant account of the 9010–9030 group. Since the cost is recorded on 9110, it is consistent to show the revenue on the matching account 9010 (author's interpretation; set this in your accounting policy).

In the balance sheet, the balance of 2110 is not shown on a separate line but in the line "Work in progress (2000, 2100, 2300, 2700)" (line 160) (Appendix 1 to the Regulation approved by Order No. 181).

Source: NAS No. 21, paragraphs 120, 121, 122 and 174; Regulation on the Deadlines for Submission, Composition and Content of Financial Statements, approved by Order No. 181 of the Minister of Economy and Finance dated 8 October 2024, Appendix 1.

Yes, but not on the balance sheet. The furniture does not belong to you, so it is not recorded as an asset on accounts of the 1000 or 2900 groups. Under paragraph 437 of NAS No. 21, valuables that do not belong to the organisation but are temporarily at its disposal are accounted for on off-balance sheet accounts, and records on them are kept using the simple (single-entry) system. The account for your case is 002 "Inventories accepted for safekeeping".

Requirements of paragraph 439:

Do not confuse it with similar off-balance sheet accounts intended for other situations (paragraphs 440–441):

Example (prepared by the author, hypothetical figures). "Sharq Mebel" LLC handed over 300 chairs to the warehouse of "Bek Logistik" LLC; in the act, the value of one chair is 320,000 soums. "Bek Logistik" records a receipt on 002: 300 × 320,000 = 96,000,000 soums, with the analytics "Sharq Mebel", chair, warehouse No. 2. A month later the owner took away 120 of them: a disposal on 002 of 120 × 320,000 = 38,400,000 soums, leaving 180 chairs or 57,600,000 soums.

The storage fee, however, is "Bek Logistik"'s own service income: show it on the ordinary balance sheet accounts and do not mix the value of the furniture with income.

Source: NAS No. 21, paragraphs 437, 439, 440 and 441.

If a numbered form is lost, money may be lost with it. That is why NAS No. 21 has a separate off-balance sheet account for such forms: 006 "Strict-accountability forms" (paragraph 443).

Rules of paragraph 443:

Example (prepared by the author). By order, the director of "Toza Mashina" LLC included the coupon forms in the list of strict-accountability forms and set a conventional value of 100 soums per form.

At the end of the month the cashier hands in the remaining forms, counted by number: the safe should contain No. 1451–2000. If any number is missing, it shows up immediately.

Note: on 006 the forms are kept not at purchase price but at a conventional value and by quantity. The money paid to the printing house is reflected as an ordinary expense on balance sheet and transit accounts; the money a customer pays for a coupon is a separate matter related to service income.

Source: NAS No. 21, paragraphs 437 and 443.

Money issued to an employee on account is recorded in group 4200 "Advances issued to employees". Under paragraph 180 of NAS No. 21, these accounts are debited in correspondence with cash accounts and credited in correspondence with accounts for purchased assets or expenses.

Which sub-account? Buying raw materials is neither a business trip (4220, paragraph 182) nor a purchase of low-value items and supplies for general business needs (4230, paragraph 183). Under paragraph 184, advances not recorded in 4210–4230 are recorded in 4290 "Other advances issued to employees". Analytical records are kept for each advance issued (paragraph 184).

Example (compiled by the author, VAT ignored for simplicity). "Zarafshon mebel" LLC transferred 8,000,000 soums from its settlement account to a purchasing employee. With supporting documents, the employee brought raw materials worth 7,450,000 soums and returned 550,000 soums to the account.

Result: 4290 is closed (8,000,000 − 7,450,000 − 550,000 = 0).

Under line 10, assets received through an accountable person are recorded, depending on their type, in accounts of four groups: 0710–0890 (capital investments and equipment to be installed), 1010–1090 (materials), 1110–1120 (animals being raised and fattened), 2910–2990 (goods). If the money is issued from the cash desk, the first entry is Dt 4290 – Ct 5010 (line 4), and if the balance is returned to the cash desk, Dt 5010 – Ct 4290 (line 6).

Note: if the money is transferred in advance not to the employee but to the supplier firm itself, it is not an amount on account but an advance paid to a supplier, recorded in 4310 "Advances paid to suppliers and contractors for inventories" (paragraphs 186, 187).

Tip: before transferring an advance, set out its purpose and amount in an order or application. When the employee returns, the expense report is easy to check against that purpose.

Source: NAS No. 21, paragraphs 180, 182–187.

Warranty-related costs are also collected in account 2610 "Production defects (rejects)". Under paragraph 131 of NAS No. 21, its debit collects the costs of detected defective output as well as the costs of warranty repairs. Its credit records amounts that reduce the losses and the net loss written off to production costs.

Example (compiled by the author, VAT ignored for simplicity). "Issiq uy texnika" LLC, for heaters sold in the current year:

• the first customer was sent a new heater from the warehouse, with a cost of 2,400,000 soums, in place of the defective one;
• a service firm repaired the second customer's heater under the warranty for 350,000 soums;
• spare parts worth 400,000 soums at the price of possible use were removed from the defective heater returned by the first customer.

Calculation: 2,400,000 + 350,000 − 400,000 = 2,350,000 soums. 2610 is closed.

Three more cases (paragraph 132):

• if the loss is charged to the employee at fault who caused material damage: Dt 4730 – Ct 2610 (line 13);
• if the consumer had the defective product repaired himself and we must reimburse the cost: Dt 2610 – Ct 6990 (line 10);
• losses from non-compensable defective output of previous years: Dt 9430 – Ct 2610 (line 14).

The amount recoverable from a supplier that delivered substandard material is also recorded to the credit of 2610 (paragraph 131), but the table in paragraph 132 has no separate line for it, so set the correspondence in the accounting policy.

Tip: keep analytical records by workshop, product type, cost item and cause of the defect (paragraph 131) — at the end of the year you will see which model generates the most warranty costs.

Source: NAS No. 21, paragraphs 131–132.

Account 8910 "Provisions for future expenses and payments" is intended for this. Under paragraph 375 of NAS No. 21, the provision is created in the established manner so that expenses are included evenly. When it is accrued, 8910 is credited, and when the actual expenses are incurred, they are written off from its debit. The provision is reviewed from time to time, and always at the end of the year, and adjusted if necessary. Analytical records are kept separately for each type of provision.

Example (compiled by the author). "Tong sut" LLC set a provision for repairs of workshop equipment in its accounting policy: 2,000,000 soums a month. In December its own repair workshop (auxiliary production) carried out repairs worth 20,600,000 soums.

Calculation: 12 × 2,000,000 = 24,000,000; 24,000,000 − 20,600,000 = 3,400,000 soums.

Result: the repair cost was spread evenly over monthly production cost, and December's cost did not jump suddenly.

On the balance sheet, the balance of 8910 is shown in line 470 ("Provisions for future expenses and payments") (Appendix 1 to the Regulation approved by Order No. 181).

Tip: set the monthly amount based on actual repair costs in previous years and compare it once in the middle of the year — then there will be no large surplus or shortfall at the end.

Source: NAS No. 21, paragraphs 375–376.

If this procedure is chosen in the accounting policy, NAS No. 21 provides for using two accounts: 1510 "Procurement and acquisition of materials" and 1610 "Material cost variances" (paragraph 102). Materials may be accounted for at accounting prices, and the variance from the actual cost is calculated monthly and recorded in 1610 (paragraphs 88 and 89).

The procedure in brief:

• the supplier's invoice and transport costs are collected in the debit of 1510 (paragraph 114, lines 2 and 6);
• the material is received into the warehouse at the accounting price (paragraph 88; entry — paragraph 114, line 9);
• the difference between the actual cost and the accounting price is transferred to 1610 (paragraph 114, line 11);
• at the end of the month the variance in 1610 is allocated to cost accounts in proportion to the accounting-price value of the materials used (paragraph 115).

Example (compiled by the author, amounts excluding VAT). At "Lola bo'yoq" LLC the accounting price of paint is 50,000 soums per 1 kg. 1,000 kg of paint was received: supplier's invoice 52,000,000 soums, delivery service 1,500,000 soums. During the month 600 kg was issued to production.

Calculation: actual cost 52,000,000 + 1,500,000 = 53,500,000; variance 53,500,000 − 50,000,000 = 3,500,000. Share: 3,500,000 × 30,000,000 / 50,000,000 = 2,100,000 soums. The 1,400,000 soums remaining in 1610 relates to the 400 kg still in the warehouse.

If the actual cost is lower than the accounting price, the difference is recorded the other way round: Dt 1510 – Ct 1610 (paragraph 114, line 11, "a").

Source: NAS No. 21, paragraphs 88, 89, 102, 104, 114–116.

Claims are kept in account 4860 "Claims receivable" (NAS No. 21, paragraph 213). Money received credits this account, and amounts that later turn out not to be receivable are returned to the accounts in which they were recorded earlier (paragraph 214). Analytical records are kept separately for each claim.

Example (compiled by the author, amounts excluding VAT). "Oydin plast" LLC had recorded granules worth 40,000,000 soums in 1010. Later a defect was found in a part worth 6,000,000 soums. The supplier refunded 4,000,000 soums and did not accept 2,000,000 soums.

Result: 4860 is closed. Value of materials in 1010: 40,000,000 − 6,000,000 + 2,000,000 = 36,000,000 soums. The rejected 2,000,000 soums remained in the cost of materials.

There is one important rule for fines, late payment interest and forfeits: under sub-paragraph "d" of paragraph 213, they are recorded to the debit of 4860 in correspondence with 9390 "Other operating income" in the amount accepted by the payer or set by an economic court. A claim amount not accepted by the payer is not recorded in the accounts.

Tip: send the claim in writing and attach the defect report — if the supplier refuses, you will go to court with these documents.

Source: NAS No. 21, paragraphs 104, 213, 214, 226.

Under NAS No. 21, a loan given to employees is kept in two parts: the portion repayable in the next 12 months in account 4720 "Employees' debt for loans granted" (paragraph 201, which also gives a loan for individual housing construction as an example), and the rest in account 0930 "Long-term receivables from employees" (paragraph 79). Analytical accounting for both accounts is kept by each employee.

Example (prepared by the author, hypothetical figures). "Bodomzor qandolat" LLC gave an employee a loan of 36,000,000 soums; 1,000,000 soums is withheld from his salary every month (36 months).

When 1,000,000 soums is withheld from the salary each month, the balance of 4720 decreases. The standard's model tables have no separate line for this transaction. Paragraph 201 gives the rule itself in words: for the amount of payments received from indebted employees, 4720 is credited in correspondence with account 5010 "Cash in national currency", 5110 "Settlement account" or 6710 "Payroll settlements with employees", depending on the accepted method of payment. When withheld from salary, it corresponds with 6710. Set the exact journal entry in your accounting policy.

Balances at the end of the first year: in 4720, 12,000,000 − 12,000,000 (withheld over 12 months) + 12,000,000 (transferred from 0930) = 12,000,000 soums; in 0930, 24,000,000 − 12,000,000 = 12,000,000 soums. Total 24,000,000 soums, i.e. 36,000,000 − 12,000,000 (the amount repaid in one year).

Tip: state clearly in the loan agreement the amount, term and procedure for withholding from salary. Whether interest is charged on the loan and what tax consequences this has for the employee — check this separately on the basis of the agreement and the Tax Code.

The building is not put on the balance sheet, because it does not belong to you. But leaving it completely outside the accounts is not correct either. Under paragraph 437 of NAS No. 21, valuables that do not belong to the organization but that it is temporarily using, including fixed assets received under an operating lease agreement, are kept in off-balance sheet accounts, and accounting in these accounts is kept in a simple system (without a second account). The leased building is kept in account 001 "Fixed assets received under operating lease" at the value stated in the agreement; analytical accounting is kept by each lessor and each item (paragraph 438).

Example (prepared by the author, hypothetical figures). "Navbahor ulgurji" LLC leased a building: value in the agreement 600,000,000 soums, rent 8,000,000 soums a month.

Which expense account the rent goes to depends on the purpose for which you use the building. If you pay several months' rent in advance, the portion relating to future months sits in account 3110 "Prepaid operating lease rent" (paragraph 158) and is transferred to expenses every month.

Why 001 is needed: it makes it easy, during an inventory count, to separate which property in the building is yours and which is the lessor's, to know what to return when the agreement ends, and to quickly draw up a list of leased items for the notes to the financial statements.

No, they must remain under control. Under paragraph 98 of NAS No. 21, account 1080 "Tools, implements and household supplies" records tools, implements and household supplies that form part of current assets. Their cost may be charged to expenses in full when they are put into use, but to ensure their safekeeping, accounting continues in off-balance sheet account 014 "Tools, implements and household supplies in use" by workshop, warehouse and individual user. When an item becomes unusable, it is removed from 014 on the basis of a formal write-off certificate (paragraphs 99 and 451).

Example (prepared by the author, hypothetical figures). "Ziyo o'quv markazi" LLC bought 10 chairs at 450,000 soums (4,500,000 soums) and 4 calculators at 150,000 soums (600,000 soums). Total: 5,100,000 soums.

Result: the balance of 014 is 5,100,000 − 450,000 = 4,650,000 soums. This amount does not affect the balance sheet, but it shows how many items are in whose hands.

Which item goes to 1080 and which is a fixed asset is set by the organization in its accounting policy. Practical tip: keep the 014 analytics by room or employee and hand items over against a signature — when an employee leaves, it is immediately clear what he has to return.

NAS No. 21 has a special off-balance sheet account for this situation: 007 "Debts of insolvent debtors written off as losses". Under paragraph 444, a debt written off as a loss because of the debtor's insolvency is monitored in this account for five years from the moment of write-off — if the debtor's financial position changes, it may become possible to collect it. Paragraph 444 gives the rule itself in words: if a debt previously written off as a loss is collected, the cash accounts are debited for the amount received in correspondence with account 9390 "Other operating income", and at the same time 007 is credited for that amount. The standard's model table also has a matching line: "Income from previously written-off receivables" — Dt receivable accounts — Ct 9390 (paragraph 405, line 11). So the amount can be recorded either directly through the cash account (paragraph 444), or by first reinstating the debt in 4010 and then closing it with the cash received, Dt 5110 – Ct 4010 (paragraph 174, line 3); either way the income in 9390 is the same. Set the method you use in your accounting policy.

Example (prepared by the author, hypothetical figures). "Ohangaron qurilish materiallari" LLC had not created an allowance and had written off a buyer's debt of 14,000,000 soums as a loss.

The remaining 14,000,000 − 9,000,000 = 5,000,000 soums in 007 stays under monitoring until the five-year period ends.

Why the amount becomes income (9390): the debt in 4010 was closed two years ago, and its expense was recognized that year in 9430. The money received now is this year's other operating income. Account 4010 may be used here only as an intermediate step (paragraph 405, line 11) and is closed again with a zero balance once the cash arrives.

If the debt was written off against the allowance for doubtful debts, the first line would be Dt 4910 – Ct 4010 (paragraph 174, line 7). Analytical accounting in 007 is kept by each debtor (paragraph 444).

No. When the money arrives, the service has not yet been provided, so this is revenue of future months. Paragraph 265 of NAS No. 21 says that account 6230 "Other deferred income" records income received as an advance but relating to future periods, and gives rent payments, ticket sales and magazine subscription payments as examples. An annual membership is exactly the same: revenue is recognized in each month in which the service is provided.

Example (prepared by the author; the amounts are hypothetical, taxes are not considered separately). In November "Polvon fitnes" LLC sold 20 annual memberships at 3,600,000 soums: 72,000,000 soums. One month's share: 72,000,000 : 12 = 6,000,000 soums.

At year-end: revenue 12,000,000 soums, balance of 6230 72,000,000 − 12,000,000 = 60,000,000 soums. This amount appears on the balance sheet as a current liability: the gym owes its customers another 10 months of service.

The difference from 6310 "Advances received from buyers and customers – current portion": an advance in 6310 is closed against the buyer's debt (4010) when the goods are shipped or the work is handed over (paragraph 272, line 2). With a membership, revenue is recognized month by month in equal shares and goes directly from 6230 to 9030. Write clearly into your accounting policy which type of receipt is kept in which account.

Tip: if the membership term exceeds 12 months, also bear in mind that the long-term portion needs to be shown separately.

Under paragraph 62 of NAS No. 4, the value of the inventory balance and of inventories being disposed of is determined by one of three methods: at the identified cost of the relevant unit, at weighted average cost (AVECO), or at the cost of the inventories purchased first (FIFO). For each group of inventories only one method is applied throughout the year, and it is chosen based on the consistency of the accounting policy (paragraph 63); the value of the balance at the end of the period is also determined according to the chosen method (paragraph 67).

Under FIFO, the cost of goods sold first takes the price of the earliest batch, while the balance at the end of the month remains at the prices of the latest batches (paragraph 66). Under AVECO, total cost is divided by total quantity (paragraph 65).

Example (compiled by the author, hypothetical figures). At the beginning of the month the "Shirin diyor" shop has 100 boxes of biscuits at 20,000 soums each (2,000,000 soums). In the middle of the month another 200 boxes arrived at 23,000 soums (4,600,000 soums). During the month 250 boxes were sold.

Under both methods a total of 6,600,000 soums is allocated; it is just split differently between goods sold and the balance. Journal entry: Dt 9120 "Cost of goods sold" – Ct 2910 "Goods in the warehouse" (5,450,000 under FIFO, 5,500,000 soums under AVECO).

When prices are rising, FIFO shows a lower cost of sales and a higher balance. Whichever method is chosen, do not change it in the middle of the year.

When goods in retail trade are kept at selling price, the markup is accumulated separately in contra account 2980 "Trade markup" (NAS No. 21, paragraph 152). Under paragraph 61 of NAS No. 4, the cost of goods sold is found by subtracting from their selling value the trade markup attributable to those goods.

Markup attributable to goods sold = sales turnover × average trade markup percentage.

Average percentage = (markup balance at the beginning of the period + markup on goods received during the period) : (selling value of the goods balance at the beginning of the period + selling value of goods received during the period).

Example (compiled by the author, hypothetical figures; VAT ignored for simplicity). The "Bodomzor" shop:

Average percentage: 8,000,000 : 40,000,000 = 20%. During the month goods worth 25,000,000 soums were sold. The markup attributable to them: 25,000,000 × 20% = 5,000,000 soums. Cost: 25,000,000 − 5,000,000 = 20,000,000 soums.

Journal entries (NAS No. 21, paragraph 154): when goods arrive, Dt 2920 – Ct 6010 24,000,000 (purchase value) and Dt 2920 – Ct 2980 6,000,000 (markup); disposal of goods sold, Dt 9120 – Ct 2920 25,000,000; markup relating to goods sold, Dt 2980 – Ct 9120 5,000,000. As a result, 20,000,000 soums remain in 9120.

Check: at the end of the month goods worth 15,000,000 soums (selling value) remained; their markup is 3,000,000 and their cost 12,000,000 soums. Opening cost 8,000,000 + purchases 24,000,000 = 32,000,000 = sold 20,000,000 + balance 12,000,000.

No, only the payable. Under paragraph 8 of NAS No. 22, monetary items in foreign currency are revalued every month at the Central Bank rate on the last date of the reporting month. A payable to be settled in currency is a monetary item (paragraph 9). But advances given without a right of return are excluded from monetary items: they are non-monetary items and are not remeasured when the rate changes (paragraphs 9 and 10).

The exchange difference is income or expense from financial activities (paragraph 11): a positive difference is recorded in account 9540 "Foreign exchange gains", a negative difference in account 9620 "Foreign exchange losses" (NAS No. 21, paragraphs 417 and 424).

Example (compiled by the author, hypothetical rates). "Ipak yo'li elektronika" LLC:

Journal entry: Dt 9620 – Ct 6010 500,000 soums (the payable increased in soums). The advance remains in account 4310 at 23,800,000 soums. When goods arrive from B, the part equal to the advance is recognised at the rate on the date the advance was paid (paragraph 12): Dt 2910 – Ct 6010 23,800,000, then the advance is offset: Dt 6010 – Ct 4310 23,800,000.

Tip: mark each currency balance as "monetary" or "non-monetary". Then, in the month-end revaluation, you will not remeasure advances by mistake.

Under NAS No. 5, after recognition a fixed asset is carried at its original or revalued amount, and the chosen method is stated in the accounting policy (paragraph 12). If the revaluation method is chosen, it is applied to all groups of fixed assets (paragraph 29). The amount of an increase in value is recorded in the account "Adjustments from revaluation of long-term assets" within reserve capital (paragraph 30).

Under paragraph 354 of NAS No. 21, an increase is recorded on the credit of 8510. If the value later decreases, the part within the increase previously accumulated for the same item is recorded on the debit of 8510, and any decrease exceeding it is recognised as an expense in account 9430 "Other operating expenses".

A land plot is a convenient example: it is not depreciated (NAS No. 5, paragraph 38), so depreciation does not get mixed into the calculation.

Example (compiled by the author, hypothetical figures). The land plot of "Yashil vodiy agro" LLC is carried at 300,000,000 soums.

In the second year the decrease is 80,000,000 soums. Of this, 60,000,000 soums is closed from 8510 against the earlier increase, and the remaining 20,000,000 soums (80,000,000 − 60,000,000) becomes an expense of that year. As a result, the balance in 8510 for this item falls to zero, and the land is carried at 280,000,000 soums.

Tip: keep the analytical records for 8510 separately for each item; otherwise there is a risk of covering a decrease in one item with an increase in another.

No. Under NAS No. 10, government assistance is recognised as income systematically over the periods in which the expenses it compensates are recognised (paragraph 9). Assistance related to a depreciable asset is usually transferred to income over the periods in which depreciation is charged on that asset and in proportion to the depreciation charged (paragraph 12).

There are two ways to present asset-related assistance (paragraph 16):

• the assistance is presented as earmarked receipts and is regularly transferred to income over the useful life of the asset;
• the assistance reduces the carrying amount of the asset and affects the financial result through lower depreciation.

The chosen method is set in the accounting policy and disclosed in the notes (paragraph 20). One more condition: government assistance is not recognised until there is reasonable assurance that the company will comply with the conditions and that the assistance will be received (paragraph 7).

Under NAS No. 21 (paragraph 374, rows 1 and 2), when notice of the subsidy is received, Dt 4890 "Other receivables" – Ct 8820 "Subsidies" is recorded, and when the money arrives, Dt 5110 – Ct 4890.

Example (compiled by the author, hypothetical figures). "Oqtepa sut" LLC bought pasteurisation equipment for 150,000,000 soums, with a useful life of 5 years and straight-line depreciation. A subsidy of 60,000,000 soums was received for the equipment.

Under both methods the effect on annual profit is the same: 18,000,000 soums. The difference is in how the statements look: under the first method the balance sheet shows the equipment at full value and a separate balance of earmarked receipts; under the second, the equipment appears at the reduced value. At the end of the first year under method 1, 60,000,000 − 12,000,000 = 48,000,000 soums remain in 8820.

If the conditions are not met, the assistance is repaid, and this does not adjust prior periods: asset-related assistance is reflected by reducing the balance of earmarked receipts or by increasing the carrying amount of the asset (paragraph 19).

Practical tip: track the subsidy conditions (type of asset, location, period for purchasing or holding it) in a separate list. Selling the equipment early or moving it elsewhere may lead to having to repay the assistance.

When an employment contract is terminated, the employer makes a full settlement with the employee. The settlement includes:

• wages the employee has not yet received;
• compensation for all main and additional leave the employee has not used;
• other payments, if they are provided for by labor legislation, other legal acts on labor or the employment contract.

When is it paid? All amounts due to the employee are paid on the day the employment contract is terminated. If the employee did not work on that day, the amounts must be paid no later than three days after the employee requests the settlement.

Example (compiled by the author, hypothetical figures). Nodira, a salesperson at "Oqsaroy mebel" LLC, leaves on 14 November. The accountant prepared the settlement sheet in advance:

Tax is withheld from this amount in line with the law, and the rest is transferred to Nodira on the same day, 14 November. Had Nodira not come to work on 14 November, the settlement would have been paid within three days of her request.

Tip: as the leaving date approaches, check the leave balance, deductions and extra contract payments in advance — then nothing urgent is left for the last day and the payment is not delayed.

Wages "in an envelope" means handing over part (or all) of the money that should be officially accrued and paid to an employee under the employment contract in cash, without documents. Such money does not appear in the accounting records or in tax reporting. This breaks the law and harms the employee's social rights.

Liability. Article 175^4 of the Code of Administrative Liability establishes administrative liability for paying wages in prohibited forms: officials are fined from 10 to 15 times the base calculation amount (BCA). In other words, the fine applies to the official personally, such as the company's director.

What does the employee lose? Unofficial money is not part of their documented income. So the social guarantees that depend on it, such as income-related payments, and the income they can prove with documents look smaller.

Example (prepared by the author, hypothetical figures). The director of "Yashil vodiy savdo" LLC writes 2 million soum into salesperson Sardor's contract and pays him another 3 million soum in cash every month without documents. If an inspection finds this, the director may be fined 10 to 15 times the BCA. The right way: state the full wage in the employment contract, accrue it and pay the withheld taxes on time.

Advice: formalise employment relations and pay wages in full in an official form — this protects both the employee and the director.

Yes, but only within the limits the law allows. Under Article 22 of the Labour Code, every employee must observe the internal labour regulations and labour discipline. General advice: it is sensible to state the start time clearly in the internal labour regulations, so that it is easy to show which rule the lateness breaches.

When discipline is breached, the employer is entitled to apply one of the disciplinary measures listed in Article 312 of the Labour Code. There are three: 1) a reprimand; 2) a fine of no more than 30% of the average monthly wage; 3) termination of the employment contract. So a fine is not the only type of penalty, and it has an upper limit.

If the lateness keeps happening, Article 161 may come into play: an employee's systematic breach of their work duties may be grounds for terminating the employment contract. "Systematic" means that within one year from the day a disciplinary penalty was applied, the employee committed another disciplinary offence. In other words, the one-year period runs from the day the disciplinary penalty was applied, so it is best to record the penalty in a written document with an exact date.

Example (prepared by the author, hypothetical figures): Javlon, a storekeeper at "Oqtosh qadoqlash", has an average monthly wage of 5,000,000 soum. In March he was late several times and was given a reprimand. In July he was late again. This happened within a year of the reprimand, so it fits the definition of a systematic breach. If the employer now chooses a fine, the maximum is 5,000,000 × 30% = 1,500,000 soum. A fine of 2,000,000 soum would exceed the limit. Also, because the breach is systematic, the employer may consider terminating the employment contract under Article 161.

General advice for the accountant: calculate and check that the fine does not exceed 30% of the employee's average monthly wage; if you do not have the employer's written document (order) on the penalty, the cautious approach is to withhold nothing. Check the procedure for applying a penalty and the method for calculating the average monthly wage in the Labour Code itself; the journal entry for the withholding is not given in this answer.

Money issued to an accountable person sits in the advance accounts of group 4200. For example, an amount issued for general business needs is recorded in account 4230 "Advances for general business expenses": Dt 4230 – Ct 5010 (NAS No. 21, table in paragraph 185, row 4). When the employee submits the expense report, the expense is transferred to the relevant account; for an administrative expense: Dt 9420 – Ct 4230 (same table, row 13).

If the amount spent exceeds the amount issued, the company now owes the employee. Under NAS No. 21 (paragraph 306), this debt is shown on the credit of account 6970 "Payables to accountable persons": the overspending on administrative needs is recorded as Dt 9420 – Ct 6970 (table in paragraph 309, row 15). When the difference is paid to the employee, the debt decreases: since 6970 is a liability account, the decrease goes to its debit and the cash goes to the credit of the cash account. The standard's table does not list this payment as a separate row; it follows from the nature of the account. Analytical records for 6970 are kept separately for each employee.

Example: Sherzod, the storekeeper at "Nurafshon mebel", was given 1 500 000 soum for small office purchases. He brought receipts for 1 720 000 soum. Journal entries: Dt 9420 – Ct 4230 1 500 000; Dt 9420 – Ct 6970 220 000; when the difference is paid from the cash desk, the debt in 6970 is closed: Dt 6970 – Ct 5010 220 000.

A mid-month advance is money paid for salary that has not yet been accrued. That is why it is recorded not directly in 6710 but in account 4210 "Salary advances": Dt 4210 – Ct 5010 (NAS No. 21, table in paragraph 185).

At month-end the salary is accrued (for example, for management staff Dt 9420 – Ct 6710), and then the advance paid is withheld from that salary: Dt 6710 – Ct 4210. Paragraph 181 says exactly this: monthly advances are written off at month-end from the credit of 4210 to the debit of 6710. After that, no balance should remain in 4210.

Example: Dilnoza, an accountant at "Yashil vodiy", was paid an advance of 2 000 000 soum on the 15th. At month-end she was accrued a salary of 5 000 000 soum (for simplicity we leave out deductions). Journal entries: Dt 4210 – Ct 5010 2 000 000; Dt 9420 – Ct 6710 5 000 000; Dt 6710 – Ct 4210 2 000 000. The remaining amount to be paid out is 3 000 000 soum.

If the person at fault is known, the shortage is not a company expense but the employee's debt. NAS No. 21 has a ready-made entry for a cash shortage identified during an inventory count: Dt 4730 "Employees' debt for compensation of material damage" – Ct 5010 (table in paragraph 206, row 10).

The debt is closed in one of two ways: the employee returns the money to the cash desk (Dt 5010 – Ct 4730), or the amount is withheld from his or her salary (Dt 6710 – Ct 4730). Both ways are set out in paragraph 202. A case where the person at fault is not identified is recorded differently; do not mix it up with this one.

Example: a shortage of 350 000 soum was found in the cash desk of "Chinor dorixona". Feruza, the cashier, immediately returned 150 000 soum and agreed to have the rest withheld from her salary. Journal entries: Dt 4730 – Ct 5010 350 000; Dt 5010 – Ct 4730 150 000; Dt 6710 – Ct 4730 200 000. As a result, the balance in 4730 drops to zero.

No. An expense is recognised in the period to which it relates (NAS No. 21, paragraph 118). A prepaid service is first recorded in account 3120 "Prepaid service fees" (paragraph 159): Dt 3120 – Ct 5110. The table in paragraph 161 of the standard gives exactly this entry for a subscription for the coming year.

Then each month the relevant share is transferred to expenses (paragraph 157): for an office service, Dt 9420 – Ct 3120. This way each month's profit carries the same burden, and the month in which the payment was made does not appear as a "loss".

Example: in December "Mohir print" paid 12 000 000 soum for a subscription covering the 12 months of the next year. In December: Dt 3120 – Ct 5110 12 000 000. From January, each month: Dt 9420 – Ct 3120 1 000 000. At the end of June, 3120 holds a balance of 6 000 000 soum: this is the subscription that has not yet been "used".

Surplus goods are an asset of the company, and failing to record them distorts the balance sheet. Under NAS No. 21, surplus goods identified during an inventory count are taken on charge as Dt 2910 "Goods in the warehouse" – Ct 9390 "Other operating income" (table in paragraph 154, row 7).

Before taking them on charge, it pays to look for the cause: a surplus often arises from re-sorting, a wrong item code or a delivery note issued for other goods by mistake. In that case one item shows a surplus and another a shortage, and each must be analysed separately.

Example: the "Ziynat gul" shop found a surplus of 40 vases, which the inventory committee valued at 1 200 000 soum. Journal entry: Dt 2910 – Ct 9390 1 200 000. When the vases are later sold, their cost is written off in the usual way with Dt 9120 – Ct 2910.

Under an operating lease, the debt to the lessor is kept in account 6910 "Operating lease payable" (NAS No. 21, paragraph 298). Each month, when rent is accrued, an expense account is debited: if the office is used for administrative needs, Dt 9420 – Ct 6910. On payment: Dt 6910 – Ct 5110.

If rent is paid several months in advance, the part relating to future months is recorded not as an expense but in account 3110 "Prepaid operating lease rent" (paragraph 158) and transferred to expenses month by month. Analytical records for 6910 are kept separately for each lease agreement.

Example: the "Ilm ziyo" training centre pays rent of 4 000 000 soum a month. March: Dt 9420 – Ct 6910 4 000 000; payment: Dt 6910 – Ct 5110 4 000 000. If in April the centre pays three months' rent in advance, the 8 000 000 soum for the following two months waits in 3110.

The allowance is kept in account 4910 "Allowance for doubtful debts". This is a contra-asset account: it reduces the accounts receivable in 4010 as presented on the balance sheet. When the allowance is created: Dt 9430 "Other operating expenses" – Ct 4910 (NAS No. 21, paragraph 217).

After that, three things can happen. If the debt is recognised as uncollectible, it is written off against the allowance: Dt 4910 – Ct 4010. If the customer pays after all, the money closes 4010 as usual, and the part of the allowance not used by the end of the year following the year in which it was created is added to that year's profit: Dt 4910 – Ct 9390 (paragraphs 218–219). Analytical records are kept for each debtor.

Example: the "Barhayot" shop owes "Tong savdo" 6 000 000 soum. At year-end an allowance is created: Dt 9430 – Ct 4910 6 000 000. The following year the shop pays 2 000 000 soum (Dt 5110 – Ct 4010), the remaining 4 000 000 is recognised as uncollectible (Dt 4910 – Ct 4010), and the unused allowance of 2 000 000 is returned to profit at the end of that year with Dt 4910 – Ct 9390.

It is easy to split the chain into four links. 1) Raw materials are released to production: Dt 2010 "Primary production" – Ct 1010 "Raw materials and supplies". 2) Wages and other direct costs are also accumulated on the debit of 2010. 3) The finished product enters the warehouse: Dt 2810 "Finished goods in the warehouse" – Ct 2010. 4) On sale, the cost is written off: Dt 9110 – Ct 2810, and revenue is recorded as Dt 4010 – Ct 9010. These are all relationships from the tables of NAS No. 21.

The benefit of this chain: the balance left in 2010 at month-end is work in progress, and the balance in 2810 is product not yet sold. Both appear separately on the balance sheet.

Example: in a month the "Shirin non" bakery used flour and sugar worth 9 000 000 soum, and the bakers were accrued wages of 6 000 000 soum. In total, bread worth 15 000 000 soum entered the warehouse (Dt 2810 – Ct 2010). 80 percent of it, that is, 12 000 000 soum worth, was sold: Dt 9110 – Ct 2810 12 000 000. Bread worth 3 000 000 soum remained in the warehouse.

Scrapping is also a disposal of a fixed asset, so everything goes through 9210 "Disposal of fixed assets". Initial cost: Dt 9210 – Ct 0130. Accumulated depreciation: Dt 0230 – Ct 9210. Usable parts obtained from scrapping: Dt 1090 "Other materials" – Ct 9210 (tables of NAS No. 21).

At the end, the difference left in 9210 is the result. A debit balance is a loss: Dt 9430 – Ct 9210. A credit balance is a gain: Dt 9210 – Ct 9310 (NAS No. 21, paragraph 392). Scrapping costs (for example, wages accrued for dismantling) are also accumulated on the debit of 9210.

Example: the machine tool of the "Temir qanot" workshop was bought for 50 000 000 soum, and its depreciation is 46 000 000 soum. After dismantling, spare parts worth 1 500 000 soum were taken into the warehouse. In 9210: debit 50 000 000, credit 46 000 000 + 1 500 000. The remaining 2 500 000 soum is a loss: Dt 9430 – Ct 9210.

Reserve capital is kept in account 8520 "Reserve capital (fund)". It is formed in accordance with the founding documents and legislation (NAS No. 21, paragraph 356). An allocation from profit is recorded with the entry from the table in paragraph 365: Dt 8710 "Retained earnings (uncovered loss) of the reporting period" – Ct 8520.

This entry is not a cash movement: the company's money in the bank does not decrease; the amount simply moves from one item to another within equity. For this reason, having reserve capital does not mean having separate "reserve money".

Example: "Bek qurilish" LLC earned a net profit of 80 000 000 soum at year-end. By decision of the meeting, 8 000 000 soum was allocated to the reserve: Dt 8710 – Ct 8520 8 000 000. The total of the "Equity" section of the balance sheet does not change; only its internal composition changes.

Under NAS No. 21 (paragraph 9), a fixed asset received free of charge is recorded on the debit of the fixed asset account and the credit of 8530 "Property received free of charge". For the sewing machine: Dt 0130 "Machinery and equipment" – Ct 8530.

At what amount? NAS No. 5 (paragraph 19) gives the answer: the initial cost of a fixed asset received under a gift agreement is its fair value at the date it is recognized, including the costs associated with receiving it. The taxation of property received free of charge is governed separately by tax legislation (NAS No. 21, paragraph 357).

Example: the "Nafis tikuv" workshop received the machine under a gift agreement, and its fair value was assessed at 18 000 000 soum. Entry: Dt 0130 – Ct 8530 18 000 000. After that, depreciation is charged on the machine using the method set in the accounting policy.

Everything is accumulated in account 9210 "Disposal of fixed assets" (NAS No. 21, paragraphs 392 and 394). The debit receives the initial cost; the credit receives the accumulated depreciation and the sale amount. The difference between the two sides shows the result.

Example: the initial cost of the "Shamol servis" compressor is 30 000 000 soum, its depreciation is 18 000 000 soum (carrying amount 12 000 000), and the buyer pays 15 000 000 soum. For simplicity, there is no VAT in this example. 1. Dt 9210 – Ct 0130: 30 000 000 (initial cost written off). 2. Dt 0230 – Ct 9210: 18 000 000 (depreciation closed). 3. Dt 4010 – Ct 9210: 15 000 000 (sale amount). 4. Dt 9210 – Ct 9310: 3 000 000 (gain: 15 mln − 12 mln). Now both the debit and the credit of 9210 total 33 000 000, so the account is closed.

If the sale amount is less than the carrying amount, the loss is recorded with Dt 9430 – Ct 9210. If the seller is a VAT payer, the VAT charged is recorded with Dt 9210 – Ct 6410, and the result changes accordingly.

The shortage is first taken to account 5910 "Shortages and losses from damage to valuables": Dt 5910 – Ct 2910 (NAS No. 21, examples in paragraph 154). This is an intermediate stage of "unresolved loss".

Then there are two routes. If the person responsible is identified, the amount is recovered from them: Dt 4730 – Ct 5910. If it is impossible to identify who is responsible, the shortage is written off to expenses: Dt 9430 "Other operating expenses" – Ct 5910 (examples in paragraph 412).

Example: an inventory count at the "Do'stlik maishiy" shop revealed a shortage of 1 400 000 soum. The commission could not find who was responsible. Entries: Dt 5910 – Ct 2910 1 400 000, then Dt 9430 – Ct 5910 1 400 000. The inventory count report and the commission's decision serve as supporting documents.

Software is an intangible asset and is kept in account 0430 "Software". First the purchase costs are accumulated in account 0830 "Acquisition of intangible assets" (NAS No. 21, paragraph 70). Once the initial cost is formed, the software is recognised in 0430: Dt 0430 – Ct 0830 (paragraph 47, row 1).

Amortization is calculated month by month using the method set in the accounting policy (paragraph 49). If the software is used for management purposes: Dt 9420 "Administrative expenses" – Ct 0530 "Amortization of software" (examples in paragraph 52).

Example: "Ipak yo'li logistik" bought the software for 24 000 000 soum. The accounting policy sets the straight-line method and a useful life of 4 years, with a residual value of zero. Monthly amortization: 24 000 000 ÷ 48 = 500 000 soum, entry Dt 9420 – Ct 0530.

Once the company is registered, the founder's debt for their share arises in 4610: Dt 4610 – Ct 8330 (NAS No. 21, examples in paragraph 198). If the founder pays for the share with property instead of money, this debt decreases. The examples in the same paragraph show Dt 0110–0190 – Ct 4610 when founders contribute fixed assets; for a vehicle, this is Dt 0160 "Vehicles" – Ct 4610.

At what value is the truck recorded? Under paragraph 17 of NAS No. 5, unless the law provides otherwise, the monetary value agreed by the founders is the initial cost.

Example: Akmal aka, a founder of "Qo'rg'on agro", handed over a truck valued by the founders at 50 000 000 soum in place of his 50 000 000 soum share. Entry: Dt 0160 – Ct 4610 50 000 000. After that, his debt in 4610 is closed. The acceptance and transfer certificate and the founders' decision serve as supporting documents.

The money did not leave the company; it only moved from one place to another, from the bank to the cash desk. So the entry is between two cash accounts: Debit 5010 "Cash in national currency" – Credit 5110 "Settlement account".

Example: the "Lola gullari" shop withdrew 6 000 000 soum in cash from the bank. The cashier writes a cash receipt voucher, and the bank statement shows the same amount as an outflow. The amounts in both documents must match.

In the opposite case, when the takings from the cash desk are deposited at the bank, the entry is reversed: Debit 5110 – Credit 5010.

This is an advance paid. Until the goods arrive, it is neither an expense nor goods, but a claim on the supplier (an asset). Advances paid for inventories are recorded in account 4310: Debit 4310 – Credit 5110.

When the goods arrive, they are taken into the warehouse (Debit 2910 – Credit 6010), and then the advance paid earlier is set off against the debt to the supplier: Debit 6010 – Credit 4310.

Example: "Bahor qurilish" LLC paid a factory 20 000 000 soum in advance for paint. If the goods have not arrived by the end of the month, this amount sits on the balance sheet as a receivable and is not charged to expenses.

Better not. If an entry vanishes without a trace, nobody can check it later, especially if the period has been closed or the reports have been filed. An error is not deleted; it is fixed with a correcting entry. Three methods are used in practice:

1. Red storno (red reversal). The wrong entry is posted again to the same accounts but with a negative amount, which cancels it. Then the correct entry is posted. The name comes from negative amounts being shown in red in the ledgers.
2. Reversing entry. The accounts of the wrong entry are swapped: the debited account is credited and the credited account is debited. This closes the wrong entry, and then the correct one is posted.
3. Additional entry. If the accounts are right but the amount is too low, one more entry for the missing difference is posted to the same accounts.

The difference between red storno and a reversing entry: storno does not inflate the account turnover, while a reversing entry increases both debit and credit turnover.

Example: accountant Dilnoza charged the cost of office paper to 9430 instead of 9420. She cancels the entry in 9430 with a red storno and then posts the amount correctly to 9420. It is best to document the reason for the correction in a short accounting memo.

If the error is material and affects the financial statements of previous years, the way it is reflected is set out separately in Chapter 10 of NAS No. 1.

Under NAS No. 5, a fixed asset is a tangible asset used in the business over a long period (more than one year). A printer usually lasts longer than a year, so it meets this condition.

However, the standard gives the head of the company the right to set, in the accounting policy, the criteria for recording assets as fixed assets. In other words, the company itself writes down in its accounting policy which items are recorded as fixed assets. Open that document first.

Example: the accounting policy of "Sarbon logistika" contains a clear criterion. If the printer meets it, the printer is recorded as a fixed asset and depreciated over its useful life. If not, it is accounted for in another way set out in the accounting policy.

It is a clear sign of an error. 5010 is an asset account: it can only have a debit balance or zero. A credit balance would mean "minus money" in the cash desk, which cannot happen in reality: you cannot pay out more cash than you have.

The cause is usually one of these: a cash receipt voucher was not entered, a payment was recorded twice, a payment was entered with a date earlier than the receipt, or an amount was posted to 5010 instead of another account.

Example: at the "Shirin non" bakery, the takings for the 3rd were not entered, and on the 4th cash was paid out for wages. As a result, the cash account showed a credit balance. Comparing the cash book and the vouchers day by day finds the error quickly.