ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY

ABSTRACT I DISCLAIMER II ACKNOWLEDGEMENTS III LIST OF ABBREVIATIONS VI LIST OF DIAGRAMS VII RESEARCH PROPOSAL 1 CHAPTER 1: LITERATURE REVIEW OF ACCOUNTING FOR SALES AND DETERMINING BUSINESS INCOME 3 1.1. OVERVIWE OF ACCOUNTING FOR SALES DERTERMINATION OF BUSINESS INCOME 3 1.1.1. Concept of accounting for sales and determination of business activity results 3 1.1.2. The meaning of accounting for sales and determination of business results 7 1.1.3. Task of accounting for sales and determination of business results 7 1.2. THE METHOD OF SALES AND PROCEDURES VOUCHERS 7 1.2.1. The method of sales 7 1.2.2. Procedures, vouchers 8 1.3. ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULT 9 1.3.1. 9 Accounting for revenue from sales and providing service 9 1.3.2. Accounting for sales deductions 12 1.3.3. Accounting for cost of goods sold 15 1.3.4. Accounting for selling expenses 17 1.3.5. Accounting administrative expenses 20 1.3.6. Accounting for financial income 22 1.3.7. Accounting for financial expenses 24 1.3.8. Accounting for other income 26 1.3.9. Accounting for other expenses. 28 1.3.10. Accounting for income tax expenses 29 1.3.11. Accounting for determining of business results 31 CHAPTER 2: METHODOLOGY OF ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 33 2.1. INTRODUCTION OF NAM ANH DUC LIMITED LIABILITY COMPANY 33 2.1.1. History and developement of Nam Anh Duc Limited Liability Company 33 2.1.2. Organizational structure of management of the company: 35 2.1.3. Organization of accounting system in the company 38 2.2. ACTUAL SITUATION OF ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULTS AT IN NAM ANH DUC CO., LTD: 41 2.2.1. Accounting for revenue from sales and providing service 41 2.2.2. Accounting for sales deduction 50 2.2.3. Accounting for cost of goods sold 50 2.2.4. Accounting of selling expenses 59 2.2.5. Accounting for administrative expense 67 2.2.6. Accounting for financial income: 75 2.2.7. Accounting for financial expenses 79 2.2.8. Accounting of other income 84 2.2.9. Accounting of other expenses 88 2.2.10. Accounting determines consumption results 92 CHAPTER 3: SOME SUGGESTIONS OF CONSUMPTION ACCOUTING AND DETERMININNG BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 98 3.1. SOME GENERAL COMMENTS ON ACCOUNTING SYSTEM AND CONSUMPTION ACCOUTING AND DETERMININNG BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 98 3.1.1. General comment on the accounting system 98 3.1.2. General comments on accounting for sale and determining business results at company 99 3.2. SOME SUGGESTIONS FOR IMPROVEMENT OF COMPANY’S ACCOUTING FOR SALE AND DETERMINING BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 101 3.2.1. Some suggestions for improvement of accounting system 101 3.2.2. Some suggestions for improvement of accounting for sale and determining business results 102 CONCLUSION 103 BIBLIOGRAPHY 104 SUPERVISOR’S CONFIRMATION 105

DUY TAN UNIVERSITY

INTERNATIONAL SCHOOL

UNDERGRADUATE THESIS

TOPIC: ACCOUNTING FOR SALES AND

DETERMINING BUSINESS RESULTS AT NAM ANHDUC LIMITED LIABILITY COMPANY

STUDENT: Nguyen Le Phuong Thao

ID NUMBER: 2320257495Da Nang – 2021



NÀM IV

In current competitive market, commercial enterprises role in cargo traffic,promote the production process Business activities take place in two stages ofbuying and selling Thus, in business operations, sales is the basic businessoperations, business cycles can only go on smoothly when sales are well-organized,increasing profitability

Throught this thesis, I can analyze, assess the ability and operation related toaccounting for sale and determining business results in Nam Anh Duc limitedliability company which include sales, deductions of Revenue, cost of good sold,seeling and administrative expenses, financial income, financial expenses, otherincome, other expenses, determining business results.

From the research, I will appreciate the advantages and diavantages ofaccounting for sale and determining business results and give solutions to improvethe disadvantages of in Nam Anh Duc limited liability company

I certify that the attached thesis is my original work No other person’s workhas been used without due acknowledgement Except where I have l clearly statedthat I have used some of the this material, it has not been presented by me forexamination in any other course or subject at this or any other institution.

I understand that the work submitted may be reproduced and/or communicatedfor the purpose of detecting plagiarism I understand that should this declaration befalse, I am libel to be penalized under the Duy Tan University regulations.

Signature: _ Date: _

I would aslo like to thank the staff of Nam Anh Duc Limited LiabilityCompany, who helped me and made favorable conditions for me in the process ofimplementing.

Despite much effort, due to limited knowledge and short time practicalresearch in the company, the thesis can’t avoid mistakes I look forward to recevingyour comments to complete this thesis

ABSTRACT IDISCLAIMER IIACKNOWLEDGEMENTS IIILIST OF ABBREVIATIONS VILIST OF DIAGRAMS VII

1.1.3 Task of accounting for sales and determination of business results 7

1.2 THE METHOD OF SALES AND PROCEDURES VOUCHERS 7

1.2.1 The method of sales 7

1.2.2 Procedures, vouchers 8

1.3 ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULT 9

Accounting for revenue from sales and providing service 9

1.3.2 Accounting for sales deductions 12

1.3.3 Accounting for cost of goods sold 15

1.3.4 Accounting for selling expenses 17

1.3.5 Accounting administrative expenses 20

1.3.6 Accounting for financial income 22

1.3.7 Accounting for financial expenses 24

1.3.8 Accounting for other income 26

1.3.9 Accounting for other expenses 28

1.3.10 Accounting for income tax expenses 29

1.3.11 Accounting for determining of business results 31

CHAPTER 2: METHODOLOGY OF ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 33

2.1 INTRODUCTION OF NAM ANH DUC LIMITED LIABILITY

2.1.1 History and developement of Nam Anh Duc Limited Liability Company332.1.2 Organizational structure of management of the company: 35

2.1.3 Organization of accounting system in the company 38

2.2 ACTUAL SITUATION OF ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULTS AT IN NAM ANH DUC CO., LTD: 41

2.2.1 Accounting for revenue from sales and providing service 41

2.2.2 Accounting for sales deduction 50

2.2.3 Accounting for cost of goods sold 50

2.2.4 Accounting of selling expenses 59

2.2.5 Accounting for administrative expense 67

2.2.6 Accounting for financial income: 75

2.2.7 Accounting for financial expenses 79

2.2.8 Accounting of other income 84

2.2.9 Accounting of other expenses 88

2.2.10 Accounting determines consumption results 92

CHAPTER 3: SOME SUGGESTIONS OF CONSUMPTION ACCOUTING AND DETERMININNG BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 98

3.1 SOME GENERAL COMMENTS ON ACCOUNTING SYSTEM AND CONSUMPTION ACCOUTING AND DETERMININNG BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 98

3.1.1 General comment on the accounting system 98

3.1.2 General comments on accounting for sale and determining business results at company 99

3.2 SOME SUGGESTIONS FOR IMPROVEMENT OF COMPANY’S ACCOUTING FOR SALE AND DETERMINING BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 101

3.2.1 Some suggestions for improvement of accounting system 101

3.2.2 Some suggestions for improvement of accounting for sale and determining business results 102

SUPERVISOR’S CONFIRMATION 105

LIST OF DIAGRAMS

Diagram 1-3.Accounting for cost of goods sold17

Diagram 1-5.Accounting for administrative expenses21

Diagram 1-7.Accounting for financial expenses25

Diagram 1-10 Accounting for income tax expenses29Diagram 1-11 Accounting for deferred income tax expenses30Diagram 1-12 Accounting for determining business results31

Diagram 2-3.The accounting process of general journal37

RESEARCH PROPOSAL

In the trend of international economic intergration, along with Viet Nam isentry the WTO, competition on the international market has been increasingfiercely Especially in the current period, Viet Nam economy cant’t avoid theinfluenxe from that competition

Additionally, to survice and develop in the market economy, businesses mustalways create accountant strong foothold prestige and quality of products Theobjective of business is profit Therefore, profit is considered an importanteconomic leverage in the business In the business operation, sales process anddetermining business results is the most important process It decides the success orfailure of the organization.

During the intership period in Nam Anh Duc Limited Liability Company withthe guidance of the supervisor, board of directors and all employees in the company

with my knowledge I have chose the topic: “Accounting for sale and determining

business results” for my undergraduate thesis

3 Subject and Scope of Research

- Subject: accounting for sales and determining business results at at Nam AnhDuc Limited Liability Company.

- Scope: Nam Anh Duc Limited Liability Company (Transactions incurred inDecember of 2020).

4 Research methods

- Collecting accounting data of the company.

- Observing, interviewing, learning form staff of accounting department in thecompany.

- Comparing, analyzing and synthesizing data in the company.- Find out information on newspaper, book, internet, …

- Following to the Circular 200 of the Ministry of Finance.

CHAPTER 1: LITERATURE REVIEW OF ACCOUNTING FOR SALESAND DETERMINING BUSINESS INCOME

1.1 OVERVIWE OF ACCOUNTING FOR SALES & DERTERMINATIONOF BUSINESS INCOME

1.1.1 Concept of accounting for sales and determination of business activityresults

1.1.1.1 Concept of accounting for sales

Sale is the transfer of ownership of a product, goods, or service made to acustomer, and at the same time the proceeds of the sale or the right to collectmoney The money earned or earned by selling products, goods or services is calledrevenue Sales can be recorded before or during the collection.

There are two forms of sales:- Cash sales

- Credit sales

1.1.1.2 The concept of accounting determines consumption results

Consumption results in an enterprise are the results of production and businessactivities, financial performance results and other operating results.

The results of production and business activities are the difference between netsales of goods and services on one side and cost of goods sold, selling expenses andadministration expenses on the other.

Financial performance is the difference between a financial revenue from oneside and a financial expense on the other.

The determination of business results in an enterprise is usually conducted atthe end of the period and such results are expressed in profit indicators.

1.1.1.3 Concept of revenue

a Concept:

Turnover is the total value of economic benefits the enterprise receives in theaccounting period, arising from its normal production and business activities(business and production activities), contributing to increasing equity The revenuegenerated from a transaction or event is determined by the agreement between the

enterprise and the buyer or user of the property It is determined by the fair value ofamounts received or will be obtained after deduction of trade discounts, salesrebates, and returns.

b Conditions for recording revenue:

Turnover and expenses related to the same transaction must be simultaneouslyrecognized according to the matching principle and must comply with the fiscalyear.

According to the provisions of Points 10, 16 and 24 of the Standard ofRevenue and Other Income - the current accounting regime, only recognize revenuein the accounting period when simultaneously satisfying the conditions forrecording revenue from sales, service rendered revenue, interest income, royalties,dividends, and shared profits.

When the conditions for revenue recognition are not satisfied, the revenueaccount is not recorded.

 According to Point 10 of the Revenue and Other Income Standard - thecurrent accounting regime, sales revenue is recognized when all five of thefollowing conditions are simultaneously met:

1 The enterprise has transferred most of the risks and benefits associated withownership of the product or goods to the buyer.

2 The enterprise retains neither continuing managerial involvement to thedegree usually associated with ownership nor effective control over the goods sold;

3 Turnover is determined with relative certainty.

4 The enterprise has gained or will gain economic benefits from salestransactions.

5 Determining expenses related to sales transactions.

 According to Point 16 of the Revenue and Other Income Standard - thecurrent accounting regime, the transaction revenue of service provision isrecognized when all four following conditions are satisfied:

1 Turnover is determined with relative certainty.

2 Being able to obtain economic benefits from the service provisiontransaction.

3 Determining the completed work piece on the date of making the BalanceSheet.

4 Determine the costs incurred for the transaction and the cost to complete thetransaction to provide that service.

 According to Point 24 of the Revenue and Other Income Standard - thecurrent accounting regime, the revenue generated from interest, royalties, dividendsand shared profits of the enterprise is recognized when it satisfies VND, under thesecond four conditions:

1 Being able to gain economic benefits from such transactions.2 Revenue is determined reliably.

1.1.1.4 Cost of goods sold concept

Cost of goods sold is an aggregate economic indicator, which reflects the totalamount subtracted from net revenue to calculate the business results of eachaccounting period in the enterprise accounting inventories by the method of regulardeclaration Frequently, the cost of goods sold is an expense that is usuallyrecognized simultaneously with revenue according to the appropriate methodbetween sales and deductible expenses.

Goods that businesses buy for warehousing, immediate delivery orconsignment… are produced and purchased from many sources, in many differentplaces, so their actual value at different times is often different Therefore, whencalculating the actual price of warehouse, one of the following methods must becalculated:

- Weighted average method.

- First in - First out (FIFO) method.

1.1.1.5 The concept of selling expenses

Selling expenses are expenses paid by enterprises related to the consumptionof goods, labor and services in the period such as expenses of sales staff, expensesof sale tools and advertisements

1.1.1.6 General and administration expenses concept

General and administration expenses are expenses incurred in common withthe whole operation of the whole enterprise, which cannot be separated for any oneactivity Enterprise management expenses include many types such as expenses formanaging goods consumption results, administration and other general expenses.

1.1.1.7 Concept of revenue from financial activities

Receivables include: interest; Income from asset leasing, letting others useassets, dividends, shared profits ; Income from securities investment and tradingactivities; Income from transfer or lease of infrastructure; Income from otherinvestment activities; Interest difference from sale of foreign currencies; Differencein transfer interest and capital.

1.1.1.8 Financial expense concept

Financial expenses, including expenses or losses related to financialinvestment activities, expenses for loans and borrowings, expenses for capitalcontribution to joint ventures, associates and losses Transfer of short-termsecurities, securities transaction costs, ; Provision for devaluation of securitiesinvestment, losses incurred when selling foreign currencies, exchange rate losses

1.1.1.9 Other income concept

Receivables from activities that occur infrequently: Revenues from the sale ofgoods, redundant assets, fully allocated tools payables but need not be paid,revenues from the liquidation of assets, bad debts which have been written off butare now recovered, reversing the provision for devaluation of inventories

1.1.1.10 Other expense concepts

These are expenses incurred from separate events or operations with normalactivities of enterprises, including: Liquidation and sale of fixed assets and residualvalue of fixed assets liquidated and sold (if); The difference in losses due torevaluation of supplies, goods and fixed assets put into contribution of joint venturecapital, investment in associated companies and other long-term investments; Finesfor breaching economic contracts; Fines, retrospective tax payment; Other expenses.

1.1.2 The meaning of accounting for sales and determination of businessresults

Consumption of finished products or sales is a decisive factor in the success orfailure of the business Consumption represents the competitiveness and prestige ofbusinesses in the market Besides, sales results are also general quality indicatorsthat reflect the final financial results of business activities in the enterprise If thefinancial situation is good, it proves that the business is operating effectively andhas conditions to improve its financial capacity.

At the same time, business results help businesses capture all businessactivities through indicators that reflect business results Help businesses clearlyidentify the factors affecting the type of business activity Thereby creatingfavorable conditions for businesses to develop and operate effectively.

1.1.3 Task of accounting for sales and determination of business results

Calculate, record, accurately reflect expenses related to business results toaccurately reflect business results through each period and each activity.

Timely accounting of profit distribution situation, providing sufficient data forthe quarterly finalization.

Participate in stocktaking, evaluation, reporting periodic business results,monitoring the payment situation and business results of the business.

1.2 THE METHOD OF SALES AND PROCEDURES VOUCHERS1.2.1 The method of sales

1.2.1.1 Direct sales method

Under this method, when the buyer purchases appoint professional staff toreceive goods in warehouses or in the factories After the purchase is completed, thebuyer will sign the sale documents then goods is determined to be consumed Buyerbear all losses during the transport (Pham & Associate, 2011).

1.2.1.2 Sales on consignment

Under this method is businesses will ship to agents in accordance with theterms in the contract However, this sent goods remain under the ownership of thebusinesses until it is determined to be sales After the end of the contract, the

businesses will return a remuneration to agents This is also called a agencycommission Agency commission is calculated as a percentage of the total saleprice This amount is recorded into account sales (Pham & Associate, 2011).

1.2.1.3 Deferred or installment payment method

With these items have a relatively high value, for people who have middleincome may be consume, businesses will conduct sales according modes deferredinstallments payment According to this method, when delivered to the buyeridentified as consumed The buyer will pay the first time at the time of purchase of aportion of the money to pay, the remainder will be repaid over many periods,however they must pay interest rate is called deferred or installment (Pham &Associate, 2011).

1.2.1.4 Shipping method

Under this method, the enterprise transfers goods to the place of purchaseunder the signed sales contract This quantity of goods transported is owned of thebusiness When goods are delivered and buyer pay or accept payment (signeddelivery voucher), the goods that are defined as consumed All losses in the processshipped to the buyer by the enterprise bear This method is applied to customersregularly have purchase relations with business (Pham & Associate, 2011).

1.2.1.5 Other methods

In addition to the sales in method, businesses can use the product to paysalaries, bonuses for employees, materials and goods exchanged or provided onrequest of the state (Pham & Associate, 2011).

1.2.2 Procedures, vouchers

When sales, the seller should have invoiced sales (in the form of the Ministryof Finance, VAT invoice deductions, VAT invoices directly or invoices wereregistered and approved) Besides, there are other types voucher relating to thetransactions: cash receipts, delivery bill, bank's notice, the list of goods sold

When receiving a written request from the customer purchases the chiefaccountant should consider selling to customers or not, if they agree to sign saleschief accountant approved and transferred to approve directors Written request

approval of purchases has been transferred to the parts warehouse Based onpurchase amount on paper storekeepers make delivery bill, then delivery bill totransfer up the accounting department to VAT invoices VAT invoice shall be madein copies 3, copies 1 is save in a receipt book, copies 2 delivered to guests, andcopies 3 used internally to record books

1.3 ACCOUNTING FOR SALES AND DETERMINING BUSINESSRESULT

1.3.1

Accounting for revenue from sales and providing service

1.3.1.1 Vouchers

Accountant uses the following vouchers to record sales:

- Sales Invoices: Used in enterprises that apply tax in direct method or itemsthat are not subject to VAT.

- VAT Invoice: Used in enterprises that apply tax on deductible method

- Economic contract, order, delivery arrangement, inventory of sold goods,inventory or invoice and storage.

- Payment Documents: coupon, bank statement

1.3.1.2 Detailed accounting

a Detail books

Subsidiary ledger of Account No 511 – Revenue sales and providing services,the accountant uses the subsidiary ledger, from No, S35 - DN accompanied withDecision Issued under Circular No 200/2014/TT-BTC of Vietnamese Ministry ofFinance as follows:

Exhibit 1-1: Sales Subsidỉay Ledger of Account No 511

(Circular 200/2014/TT-BTC)b Accounting method

- Column A: To write the date which an accountant writes into the book - Column B, C: To write the number sign and date of the document which

used to write into the book.

- Column D: To write the content of the accounting event accrued.- Column E: To write the contrast account.

- Column 1, 2, 3: To write the quantity, unit price, total price of the productwhich supplied by the business.

- Column 4: To write VAT accounted base on the sales of the business.

- Column 5: To write the sales deduction like: Trade discounts, sales returnand allowance.

- After adding “The number accrued”, counting “Net sales” then write into thecolumn 3 [Column 3 = Column 3 – (Column 4 + Column 5)] “Cost ofgoods sold”: Write the cost of goods sold of the product whichsold/provided.

“Gross margin” = “Net sales” – “Cost of goods sold”

Everyday, based on documents related to sales or synthetic table of accountingdocument, accountant must carefully checked and prepare voucher Based on thevoucher, accountant will prepare the voucher register and post to the ledger Allaccounting document, after having been served as basis for the preparation ofvoucher, will be recorded in detailed sales books or sales notes At the end of themonth, accountant will journalize closing entry.

- Revenue from sales of products goods, real estate investment and service by

business in the accounting period.

Account 511 has no ending balance

 Account 511 - sales and service providers, account 6 Level 2:

- Account 5111: Good sales

- Account 5112: Finished product sales- Account 5113: Services sales

- Account 5114 : Subsidization sales

- Account 5117: Investment real estate sales- Account 5118: Other sales

b Accounting method

Following the Circulars 200/2014/TT-BTC

Diagram 1-1: Accounting for sales

1.3.2 Accounting for sales deductions1.3.2.1 Vouchers

Exhibit 1-2: Subsidỉay Ledger of Account No 521-Sales deductions

(Circular 200/2014/TT-BTC)b Accounting method

Sales deductions (if any) are recorded in column 5• Column 5 - Record sales deductions

Total Increases

- Net sales is record in column 3: column 3 = column 3 - column 4 - column 5 - COGS: record cost of goods sold (products, real estate investment and

services)

- Gross profit = Net sales - COGS

Accounting method of Account 521- Accounting for sales deduction similaraccounting method of Account 511 - Accounting for revenue from the sales andproviding service.

- Trade discount has accepted payment for customers.- Sales allowances approved by the buyer.

- Sales returned has refunded to buyers or deducted from the accountreceivable from customers on the number of sold.

- At the end of period, transfer all trade discount, sales returns and salesallowances to Account 511 - Sales Revenue to determine net revenue ofreporting period.

Account 521 has no balance

Account 521 - Sales deduction has three accounts level 2:- Account 5211: Trade discount

- Account 5212: Sales returns- Account 5213: Sales allowances

b Accounting method

Diagram 1-2: Deductions for sales

1.3.3 Accounting for cost of goods sold

Accountant uses the following vouchers:

- For COGS the vouchers used are inventory delivery note - Some other relevant documents (if any).

1.3.3.2 Detailed accounting.

a Detail books

Accountant uses COGS subsidiary ledger to record COGS in the period

Exhibit 1-3: Subsidỉay Ledger of Account No 632

(Circular 200/2014/TT-BTC)b Accounting method

Based on the book details the business costs of production period - the"Closing", to be filled in the "Opening balance" in the appropriate column (Column1 Column 8).

The "Number in the period": Based on the accounting documents (originaldocuments, allocation table) to record in the production and business details asfollows:

- Column A: To write the date which an accountant writes into the book

- Column B, C: To write the number sign and date of the document whichused to write into the book

- Column D: To write the content of the accounting event accrued- Column E: To write the contrast account

- Column 1: To write the total amount of the accounting event accrued

- From column 2 to column 8: Based on the content of the accounting eventaccrued to write into each suitable expense column to satisfy the request ofeach account of the business

- The row of “Ending inventory” determined following:

Ending inventory = Beginning inventory + Debit accrued – Credit accrued1.3.3.3 General accounting.

a Account used

Accounting for Cost of goods sold uses account No 632 - Cost of goods sold(COGS) Structure and content of account No 632:

- COGS during the period

- Costs of raw materials, labor costs in excess of normal levels andmanufacture overhead expenses fixed non-allocated are included in theCOGS in the period

- Loses of inventory after deducting the compensation due to personalresponsibility

- Provision for devaluation of inventory

- Cost of construction and homemade fixed assets exceeding the normal levelis not included in the original cost of self-constructed and self-made tangiblefixed assets

- Transfer the cost of products, goods and services sold during the period toAccount 911

- The reversal of provision for devaluation of inventories at the end of thefiscal year

- Value of returned goods sold

- The trade discount, sales discount received after the purchase has beenconsumed

- The refund of accrued expenses for estate goods is determined to be sold Itwill be refunded when selling goods

Account 632 - Cost of goods sold has no ending balance.

b Accounting method

Diagram 1-3: Accounting for cost of goods sold

1.3.4 Accounting for selling expenses1.3.4.1 Vouchers

- Payment table

- Allocation table wages and social insurance

- Depreciation Expense related to Selling Department- VAT invoice

- Inventory delivery voucher

1.3.4.2 Detailed accounting

a Detail books

Exhibit 1-4: Subsidiary Ledger of Account No 641 – Selling expenses

(Circular 200/2014/TT-BTC)b Accounting method

Similarly, the accounting method of the accounting for the cost of goods sold.

- Amounts recorded to reduce selling expenses

- Transferring Selling expenses into Account 911 – Determining of businessresults

Account 641 - Selling expenses has no ending balance.

Account 641 - Selling expenses has six accounts level 2:

- Account 6411: Employee cost

- Account 6412: Material, packing cost- Account 6413: Tool cost

- Account 6414: Fixed asset depreciation- Account 6415: Warranty cost

- Account 6417: Outside purchasing service cost- Account 6418: Other cost

b Accounting method

Diagram 1-4 Accounting for selling expenses

1.3.5 Accounting administrative expenses

1.3.5.1 Vouchers.

Accountant uses the following vouchers:

- Payroll register

- Depreciation allocation sheet

- VAT invoice, sales invoice

- Allocation table wages and social insurance- Inventory delivery voucher

1.3.5.2 Detailed accounting.

a Account used

Accountant uses administrative expenses subsidiary ledger to recordadministrative expenses in the period The detailed accounting procedure is similarto that of accounting for revenue from sales and providing services.

- Actual enterprise management expenses incurred in the period.

- Provisions for doubtful receivables, provisions payable (The differencebetween the number of provision to be made in this period is larger than theamount of reserves made in the previous period which have not been usedup).

- Amounts recorded to reduce administrative expenses;

- Reversal of provisions for doubtful debts, provision for payables (thedifference between the number of provision must be made in this period andthe smaller than the unused reserve of the previous period);

- Carryin over management expenses into account Number 911"Determination of business income".

Account 642 - Administrative expenses has no ending balance.Account 642 - Administrative expenses has eight accounts level 2:- Account 6421: Employees cost

- Account 6422: Tools cost- Account 6423: Stationery cost

- Account 6424: Fixed asset depreciation- Account 6425: Taxes, fees, charges- Account 6426: Provision cost

- Account 6427: Outside purchasing service cost- Account 6428: Other cost

b Accounting method

Diagram 1-5 Accounting for administrative expenses

1.3.6 Accounting for financial income

Book details the accounts opened by each account, payment for each object(each content costs, capital ).

- Column A: Write the date of record books

- Column B, C: Write the number sign and date of the voucher used - Column D: Write summary of transactions incurred

- Column E: Write the reciprocal account

- Column 1,2: Write the amount incurred on debit or credit

- Column 3,4: Write the debit or credit after any transactions incurred

- The row of Beginning Inventory is the number amount in the “EndingInventory” to write in column 3 or column 4.

1.3.6.3 General accounting.

a Account used

- The payable VAT amount calculated by the direct method (if any)

- Close financial income to income summary 911 to determine business result.CREDIT

- Financial income incurred in period.

 Account 515 - Revenue from financial activities has no ending balance. Account 515 - Revenue from financial activities has no account level 2

Account 515 has no ending balance

b Accounting method

Diagram 1-6 Accounting for financial income

1.3.7 Accounting for financial expenses

1.3.7.1 Vouchers used

Accountant uses the following vouchers:- For financial expenses

- The vouchers used are debit note- Payment vouchers

- Foreign currency bills

- Purchase invoices with foreign currency payment…

- Losses due to liquidation or transfer of investments;

- Loss of exchange rate arising in the period; Foreign exchange losses due torevaluation at the end of the financial year with monetary items denominatedin foreign currencies;

- Amount of provision for devaluation of trading securities, provision forinvestment losses in other entities;

- Other expenses of financial investment activities

- Refunding provision for devaluation of trading securities, provision for lossof investment in other units

- Amounts recorded to reduce financial expenses

- At the end of period, transfer all financial activities expenses incurred in theperiod to determine business results

Account 635 has no closing balance

b Accounting method

Diagram 1-7: Accounting for Financial expenses

1.3.8 Accounting for other income

1.3.8.2 Detailed accounting.

a Detail books

Accountant uses other income subsidiary ledger to record other income in theperiod The detailed accounting procedure is similar to that of accounting forrevenue from sales and providing services.

Diagram 1-1: Accounting for other incomes

1.3.9 Accounting for other expenses.

Account for other expenses uses Account 811 - Other expenses Structure andcontent of Account 811:

b Accounting method

(The ministry of Finance, circular 200, Article 94, Clause 3)

Diagram 1-2: Accounting for other expenses

1.3.10 Accounting for income tax expenses

1.3.10.1 Vouchers used

Accountant uses the following documents:- Payment voucher

- Income tax return

- Income tax declaration form

1.3.10.2 Detailed accounting

a Detail books

Accountant uses income tax expenses subsidiary ledger to record income taxexpenses in the period The detailed accounting procedure is similar to that ofaccounting for revenue from sales and providing services.

b Accounting method

The accounting method is similar to accounting for revenue from sales anfproviding services.

1.3.10.3 General accounting

a Account used

- Current income tax incurred in the period.

- Curent income tax payable of previous year to payable of previous year dueto detecting not significant errors of the previous year.

The actual income tax payable that firms have to submit in year is smaller thanthe rent payable immersed deduction on income tax expense that was recordedoperating business

Account 8212 and the larger the arising amount on the Credit side of Account8212 "Deferred enterprise income tax expenses" arising in the period to the Debitside of Account 911 - "Determining business income”.

Account 821 - Income tax expense has no ending balanceAccount 821 has two accounts level 2:

 Account 8211: Current business income tax charge Account 8212: Deferred business income tax charge

Account 821 account has no ending balance

Diagram 1-10: Current corporate income tax expense accounting