ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY AT SKCOMPANY VIETNAM JOINT STOCK COMPANY

DUY TAN UNIVERSITY INTERNATIONAL SCHOOLUNDERGRADUATE THESIS TOPIC: ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY AT SKCOMPANY VIETNAM JOINT STOCK COMPANY MENTOR : MA... With th

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DUY TAN UNIVERSITY INTERNATIONAL SCHOOL

UNDERGRADUATE THESIS

TOPIC:

ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY AT SKCOMPANY VIETNAM

JOINT STOCK COMPANY

MENTOR : MA Nguyen Thi Kim Huong STUDENT : Tran Thi Nhu Quynh

CLASS : K23 PSU KKT1

ID NUMBER : 2320252825

Da Nang – 2021

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In the system of management tools, accounting is one of the most effectivemanagement tools It is a reliable source of data and information for the State to runthe economy, inspect and control the activities of industries and regions In theeconomy, the general indispensable trend of investors, large, medium and smallbusiness owners is aiming to achieve profits They are very concerned about the endresult for a period of time (months, quarters and years) that they put their capitalinto investing in the business That leads to the accounting department at theenterprise to closely monitor the purchase and sale process until determining thebusiness results, for fast, complete and timely accounting Good implementation ofthis process will help businesses recover capital quickly, offset costs, and fulfilltheir obligations to the state, invest in development, and improve the lives ofworkers The accounting system in the units plays a very important role, especiallyfor companies doing business in the field of commerce, it is imperative to buy andsell goods and determine business results With that awareness, combined withpractical research at Skcompany Vietnam Joint Stock Company, I decided to choosethe topic: " Accounting for fees earned, expenses and income summary atSKcompany Vietnam Joint Stock Company " Because of time and business theexperiment is still limited, so it is unavoidable to stumble and lack We sincerelyhope the teachers and the Company for comments and additions to make my topicmore complete, I myself overcome my weaknesses, accumulate experience andimprove capacity in practice in the future The research method used in this topic isqualitative method

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I pledge that the topic: " Accounting for fees earned, expenses and incomesummary in Skcompany Vietnam joint stock company" is my internship report inrecent years under the direction: Dr Nguyen Thi Kim Huong Several clearsources and footnotes are used in the report

The data and research results are honest, I would like to take fullresponsibility, the discipline of the subject and the policy set out if any problemoccurs

Signature: Date:

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First, I would like to thanks sincerely to the teacher of International School inDuy Tan University who help me to quip the neccessary knowledge andconvernient environment in time learning as well as time of graduation thesis

I would like to express my gratitude to my supervisor Dr.Nguyen Thi KimHuong who was helped from the select topics to gudie the way, content to do all.Thanks to her support, so I could complete thesis on the time stipulated

I would like to express my sincere thanks to the management and the brothersand sisters in Skcompany Vietnam Joint Stock Company for creating favorableconditions and wholeheartedly guiding me throughout my internship at thecompany Practical contact, answering questions help me have more understanding,practical knowledge and requirements in future work

With limited knowledge and limited internship at the company, my reportcannot avoid its shortcomings I look forward to receiving comments and commentsfrom teachers and brothers and sisters in the Skcompany Vietnam Joint StockCompany It will be a valuable practice for you to improve yourself in the future.Thank you sincerely !

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TABLE OF CONTENTS

ABSTRACT

DISCLAIMER

ACKNOWLEDGEMENTS

TABLE OF CONTENTS

LIST OF DIAGRAMS

LIST OF IMAGES

INTRODUCTION 1

CHAPTER 1 LITURATURE RENTING VIEW OF ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY IN SERVICE BUSINESS 3 1.1 GENNERAL ISSUES OF ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY 3

1.1.1 Accounting concept for fees earned 3

1.1.2 Cost related concept 3

1.1.3 Business results at service company concept 4

1.2 ACCOUNTING FOR FEES EARNED 4 1.2.1 Fees earned recognition conditions 4

1.2.2 Vouchers 5

1.2.3 Detail Accounting 6

1.2.4 General Accounting 7

1.3 ACCOUNTING FOR COST OF SERVICE SOLD 8 1.3.1 Concept of accounting for cost of service sold 8

1.3.2 Vouchers 9

1.3.3 Detail accounting 9

1.4 ACCOUNTING FOR SELLING EXPENSES AND ADMINISTRATIVE EXPENSES 12 1.4.1 Concept of accounting for selling expenses and administrative expenses 12

1.4.2 Vouchers 12

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1.5 ACCOUNTING FOR FINANCIAL INCOME AND EXPENSES 15 1.5.1 Accounting for financial income 15

1.5.2 Accounting for financial expenses 18

1.6 ACCOUNTING FOR OTHER INCOME AND EXPENSES 20 1.6.1 Accounting for other income 20

1.6.2 Accounting for other expenses 22

1.7 ACCOUNTING FOR INCOME TAX EXPENSES 24 1.7.1 Concept of income tax expenses 24

1.7.2 Vouchers 24

1.7.4 General accounting 25

1.8 ACCOUNTING FOR INCOME SUMMARY AND TRANFERRING NET INCOME/ NET LOSS 26 1.8.1 Concept of accounting income summary 26

1.8.3 General accounting 27

CHAPTER 2 METHOD OLOGY OF ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY IN SKCOMPANY VIETNAM JOINT STOCK COMPANY 30 2.1 HISTORY OF SKCOMPANY VIETNAM JOINT STOCK COMPANY 30 2.1.1 History of Skcompany VietNam Joint Stock Company 30

2.1.2 Advantages and disadvantages of the company in the course of operation 31

2.1.3 Characteristics of organizational structure model of Skcompany VietNam Joint Stock Company 31

2.1.4 Characteristics of the accounting system in Skcompany VietNam Joint Stock Company 34

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2.2 METHOD OLOGY OF ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY 38

2.2.1 Characterics of services provided at the company 38

2.2.2 Accounting for fees earned 39

2.2.3 Accounting for cost of service sold 46

2.2.4 Accounting for selling expenses and administrative expenses 50

2.2.5 Accounting for financial income 56

2.2.6 Accounting for financial expenses 60

2.2.7 Accounting for other incomes 63

2.2.8 Accounting for other expenses 63

2.2.9 Accounting for income summary 67

2.2.10.Accouting for income tax expenses 70

2.2.11.Accounting for Tranfering Retained earning 70

CHAPTER 3.SOME RECOMMENDATIONS TO COMPLETE THE ACCOUTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY 73 3.1 COMMENT ON THE ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY IN SKCOMPANY VIETNAM JOINT STOCK COMPANY 73 3.1.1 Advantages 73

3.1.2 Disadvantages 74

3.2 SOME SOLUTIONS TO IMPROVE THE ACCOUNTING SKCOMPANY VIETNAM JOINT STOCK COMPANY 75 3.2.1 Solution of accounting work 75

3.2.2 Solution to increase revenue 76

3.2.3 Cost-saving solutions 76 CONCLUSION 78

BIBLIOGRAPHY

APPENDICES

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LIST OF DIAGRAMS

Diagram 1.1: Accounting for fees earned 8

Diagram 1.2: Accounting for cost of service sold 11

Diagram 1.3: Accounting for selling expenses expenses and administrative expenses

14Diagram 1.4: Accounting for financial income 17

Diagram 1.5: Accounting for financial expenses 20

Diagram 1.6: Accounting for other income 22

Diagram 1.7: Accounting for other expenses 24

Diagram 1.8: Accounting for income tax expenses 26

Diagram 1.9: Accounting for income summary and tranferring net income/ net loss

28

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LIST OF IMAGES

Image 1.1: Subsidrary leger of fees earned 6

Image 1.2: Production cost and expenses 9

Image 1.3: Subsidrary leger 15

Image 2.1 : Organizational chart of the company's management apparatus 32

Image 2.2: Diagram of accounting organization structure at Skcompany VietnamJoint Stock Company 34

Image 2.3: Main creen Tri Viet Accounting office software 36

Image 2.4: The order of recording on the computer 37

Image 2.5: Commercial Incoive No.0000052 39

Image 2.8: Service invoice statement sold 41

Image 2.9: Subsidrary Ledgers Account No.5111 43

Image 2.10: General Joural 45

Image 2.11: Ledger account No.511 46

Image 2.12: Employee salary sheet in December 46

Image 2.13: Employee salary sheet in December Bonus 47

Image 2.14: Allocation table of tools and instruments 47

Image 2.18: Invoice value-added tax No.0013712 50

Image 2.19: Invoice value-added tax No.0000531 50

Image 2.20: Electric payment request 51

Image 2.21: Salary payment sheet 51

Image 2.22: Service fee receipts 52

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Image 2.27: Credit notes 56

Image 2.28: Subsidrary Ledgers Account No.515 57Image 2.29: General Joural 59

Image 2.31: Debit notes 60

Image 2.35: Paper to pay money into the state budget 63Image 2.36: Paper to pay money into the state budget 64Image 2.37: Subsidrary Ledgers Account No.811 65Image 2.38: General Joural 66

Image 2.43: Subsidrary Ledgers Account No.4212 71Image 2.44:General Joural 72

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The reason to choose the topic: In the current economic conditions, in order tosurvive and develop, businesses must conduct production and business activitieseffectively, but the final effect must be reflected through the sub-aggregation ofprofits from operations its business and rate To achieve the above goal, the salesmust be greater than the cost spent As a result, sales revenue and sales results aretwo sides of a problem, with a proportional relationship with each other, in whichrevenue is a prerequisite, determining the ultimate efficiency of the business.Stemming from the importance of the above problem, through an internship atSKCompany Vietnam Joint Stock Company, with the help of the Board ofDirectors, the Accounting Department staff, and the enthusiastic guidance of theteacher Instructor: Nguyen Thi Kim Huong I went into research subject:

“Completing the accounting for fees earned, expenses and income summary atSKcompany Vietnam Joint Stock Company”

Objectives of the study : By studying this topic, we can help us betterunderstand the results of production and business activities of enterprises, considerthe implementation of the general accounting system, accounting for sales, costsand determine What are the business results in particular in the business, is theaccounting different from what has been learned in university or not? Thereby, it ispossible to draw out the advantages and disadvantages of the accounting system indetermining business results so that the business operation of the business is moreand more effective

Research Content: Learn the theory of cost, expense and income generalaccounting at the company Find out the current status of the organization of fee,expense accounting and income collection at the company Evaluate the basicadvantages and disadvantages in accounting work at the company

Research question:

- Accounting for revenue, expenses and determining business results inbusinesses include what content?

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- How is the current situation of revenue, expense accounting and businessresults determination at Skcompany Vietnam Joint Stock Company in terms offinancial accounting and management accounting?

- What solutions to improve revenue and expense accounting and determinebusiness results at Skcompany Vietnam Joint Stock Company?

Research Methods : The research method used in this topic is qualitativemethod

Place of graduation practice : Skcompany Vietnam Joint Stock Company.

In addition to the introduction and conclusion, the content of the thesisincludes 3 chapters:

Chapter 1: Liturature renting view of accounting for fees earned, expenses andincome summary in service business

Chapter2 : Method ology of accounting for fees earned, expenses and incomesummary in skcompany vietnam joint stock company

Chapter 3: Some recommendations to complete the accouting for fees earned, expenses and income summary

Although I have tried very hard, but because I do not have much practicalexperience, the thesis is sure to avoid errors Therefore I would like to receive thecomments of teachers and students to complete more than all his thesis

Thank you sincerely!

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CHAPTER 1 LITURATURE RENTING VIEW OF ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY IN SERVICE

BUSINESS 1.1 GENNERAL ISSUES OF ACCOUNTING FOR FEES EARNED,

EXPENSES AND INCOME SUMMARY

1.1.1 Accounting concept for fees earned

Fees earned is a revenue account that appears in the revenue section at thetop of the income statement It contains the fee revenue earned during areporting period The amount reported as fees earned would be the amount ofcash received from customers during the reporting period, if the reporting entity

is operating under the cash basis of accounting Alternatively, the accountcontains the amount of fees actually earned during the reporting period,irrespective of the amount of cash received from customers, if the reportingentity is operating under the accrual basis of accounting

The Fees Earned account is most commonly used in the services industry,where it contains billings for such services as tax consulting, auditing fees, andgeneral consulting The account can also be used in situations where a mix ofgoods and services are sold to customers; in this case, revenues are apportionedbetween the Fees Earned account (for services rendered) and one or more goodssold accounts (M Bragg, 2021)

1.1.2 Cost related concept

A cost is the waste of resources a business achieves one or more specificgoals In other words, or according to the financial accounting's classification, it

is the amount payable to perform economic activities such as production,transactions in order to buy the goods and services necessary for theproduction process business (Nhị, 2006)

Cost incude: Cost of service sold, Selling expenses and Businessadministration expenses, Financial expenses, Other expenses, Income taxexpenses

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1.1.3 Business results at service company concept

Business results is the expression of the amount of profit or loss from theenterprise's operations in a certain period of time (Nhị, 2006)

Business results of an enterprise include: Results of production andbusiness activities: Is the difference between net revenue and cost of goods sold(including products, goods, investment properties and services, production costs

of construction products installation, expenses related to real estate investment activities such as: Depreciation, repair and upgrade costs, operating lease costs, ), sales and management costs enterprise.

Thedeductionfrom feesearned

+

FinancialIncome -

Financialexpenses -

Sellingexpenses andadministrative

Other operating results: Is the difference between other incomes and other expensesand corporate income tax expense

Net income/

Net loss =

Income fromOperating +

Other incomeexpensesCorporate income tax payable: is a tax directly on the profits of businesses

Incometaxpayable

=

NetIncome

Income taxrate

1.2 ACCOUNTING FOR FEES EARNED

1.2.1 Fees earned recognition conditions

 An enterprise recognizes sales revenue only when it simultaneouslysatisfies the following conditions:

- The enterprise has transferred most of the risks and benefits associated withthe ownership of products and goods to the buyer

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- The enterprise no longer holds the right to manage the goods as the owner

or control of the goods

- The revenue can be measured reliably When the contract provides that thebuyer is entitled to return products or goods, purchased under specific conditions,the enterprise is only allowed to record revenue when such specific conditions cease

to exist and the purchaser is not permitted the right to return products or goods(unless customers have the right to return goods in exchange for other goods orservices)

- The business has received or will gain economic benefits from the sale.Expenses related to sales transactions can be determined

 An enterprise recognizes revenue from providing services only when itsimultaneously satisfies the following conditions:

- The revenue can be measured reliably When the contract provides that thebuyer is entitled to return the purchased service under specific conditions, theenterprise is recognized only when such conditions cease to exist and the buyer isnot entitled to return the service service provided

- The enterprise has received or will gain economic benefits from thetransaction of providing that service

- Completed work is identified at the time of reporting

- Determining the costs incurred for the transaction and the cost to completethe transaction of providing that service

1.2.2 Vouchers

The main vouchers used fees earned for are :

- Value-added tax invoices, common sales invoices

- Receipts

- Bank notes

- Other relevant documents

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1.2.3 Detail Accounting

1.2.3.1 Books

The accountant uses subsidiary Ledgers Account No.511

Image 1.1: Subsidrary leger of fees earned

1.2.3.2 Accouting Method

The Accounting method is:

Column A: Record accounting date

- Columns B, C: Write down the number and date of the term used for entry

- Column D: Record the content of the arising economic profession

- Column E: Enter the number of the reciprocal account

- Columns 1, 2, 3: Enter the quantity, unit price and amount of the volume ofgoods (products, investment properties or services) sold or provided

- Column 4: Enter the value added tax (excise tax, export tax) payablecalculated on the sales of goods (products, services, investment property) sold orprovided

- Column 5: Enter the amount to be deducted from income tax (if any) such as:Trade discounts, returned goods, sales discounts,

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After adding "The arising amount", calculate the "Net revenue" indicator in column

3 Column 3 = Column 3 minus (-) Column 4 and Column 5 Target "Cost of servce

sold": Enter the cost price of goods (products, investment properties, services) sold.

Grossprofit =

Netrevenue -

Cost ofservice sold

1.2.4 General Accounting

1.2.4.1 Accounts

 Used account

- Account No.511- Sales of goods and service provision

 Account No.511 has a rule debit & credit:

Debit:

- Indirect taxes payable (VAT, special consumption, export, andenvironmental protection)

- Sales of goods returned are carried forward at the end of the period

- Sales discount at the end of the period

- Trade discounts carried over at the end of the period

- Transfer net revenue to account No.911 "Determination of businessresults"

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1.3 ACCOUNTING FOR COST OF SERVICE SOLD

1.3.1 Concept of accounting for cost of service sold

Cost of service sold is the actual cost of the inventory of the product (orincludes the cost of buying goods attributable to the goods sold during the period -for commercial enterprises), or the actual cost of the service, Services are completedand defined as the consumption and the amounts are included in the cost todetermine the business results in the period (Nhị, 2006)

Diagram 1.1: Accounting for fees earned

(2)

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1.3.2 Vouchers

The main vouchers used for service sold are : Summary of production Expenses

1.3.3 Detail accounting

1.3.3.1 Books

Subsidrary Ledger of operation expenses Account No.632

Image 1.2: Production cost and expenses

1.3.3.2 Accounting method

The Accounting Method is:

Based on the detailed books of production and business expenses in theprevious period - section "Closing balance", write in the line "Opening balance" inthe appropriate columns (Columns 1 to Column 8)

- Part "Amount arising in the period": Based on accounting vouchers (originaldocuments, distribution tables) to record in detailed books of production andbusiness expenses as follows:

- Column A: Enter date and month of entry

- Columns B, C: Write the number, date and month of the voucher used forentry

- Column D: Record interpretation of the arising economic profession

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- Column 1: Enter the total amount of the arising economic transaction.

- From Column 2 to 8: Based on the content of arising economic transactions,write in the appropriate columns corresponding to the cost content to meet themanagement requirements of each enterprise account

- The part (line) "Closing balance" is determined as follows:

Credit incurred

1.3.4 General Accounting

1.3.4.1 Accounts

 Used account:

Account No.632: Cost of goods sold

 Account No.632 has a rule debit & credit: For production and servicebusiness (Periodic checking method )

Debit:

- Cost of finished goods in stock at the beginning of the period

- The amount of the provision for devaluation of inventories (the differencebetween the allowance made in this year is greater than the amount created in theprevious year that has not been used up)

- Cost of capital of finished products brought in and finished services

- Transferring cost of finished products sold or completed servicesdetermined to be sold during the period to Debit of Account No.911 "Determination

of business results

Account No.632 doesn’t balance

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1.3.4.2 Accounting method

Note :

(1) Cost of finished goods sold or work in process sold

(2) Cost of goods slod

(3) Wastage, loss of inventory is calculated on the cost of service sold

(4) Over head costs unallocated are recognized to cost of services sold duringthe period

(5) Selling real estate invesment

(6) Accumulated depreciation

(7) Depreciation of real estete investment

214

(9)(10)

111,331,334

335

242(6)

Diagram 1.2: Accounting for cost of service sold

(7)

(12) 156,155138,152,153,155

(3)

229(13)

2147

TK 214(8)

(11)

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(8) Real estate investment cost

(9) Cost application

(10) Quote expense to temporarily calculate the cost of real estate sold in the

period

(11) Transfer

(12) Input inventory sales returned

(13) Reversal of provision for devaluation of stocks

1.4 ACCOUNTING FOR SELLING EXPENSES AND

ADMINISTRATIVE EXPENSES

1.4.1 Concept of accounting for selling expenses and administrative expenses

Selling expenses are all costs incurred in the process of selling products, goodsand services, including: Cost of sales staff, cost of packaging materials, depreciation

of fixed assets, costs of purchasing services In addition to serving sales activities,other expenses in cash have been spent on sales activities (Nhị, 2006) Generaland administration expenses are all costs related to the operation of businessmanagement, administrative management and general management of the wholeenterprise such as: expenses for management staff of enterprises, costs of materials,office supplies, depreciation of fixed assets, taxes, fees, charges, provisioning costs,expenses for services purchased from outside, other expenses in cash spent to servethe general management practice of the entire enterprise (Nhị, 2006)

1.4.2 Vouchers

The main vouchers used for selling expenses and administrative expenses are:

- Payment note, debit note

- Distribution of raw materials, materials, tools

- Out put Inventory vouchers

- Table of distribution of wages and social insurance

- Spreadsheet and depreciation allocation for fixed assets

- Prepard expenses allocation table

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1.4.3.1 Books

Subsidrary Ledger of production cost and expenses Account No.642

The form of the book is similar to the Account No.632

 Account No.642 has second level accounts:

- Account No.6421: Selling expenses

- Account No.6422 : Adminitration expenses

Debit:

- Administration and business expenses incurred in the period

- Provisions for bad debts and payable provisions (The difference betweenthe provision that must be established in this period is larger than the provisionmade in the previous period that has not been used up)

Credit:

- Business management expense reductions

- Reversal of provision for doubtful debts, provision for payables (thedifference between the provision made in this period is smaller than the allowancewhich has not been used up in the previous period)

- Transfer administrative expenses into account No.911 "Determination ofbusiness results"

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1.4.4.2 Accounting Method

Note:

(1) Supplies expenses and other expenses

(2) Salary expenses and salary deductions

(3) Depreciation cost of fixed assets

(4) Input value added tax is not deductible if it is included in selling expensesand administrative expenses

(5) Prepaid expenses adjuted

(6) Outside service costs

(6)

Diagram 1.3: Accounting for selling expenses expenses and administrative

expenses

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(8) Transfer

(9) Revert the provision for goods insurance

1.5 ACCOUNTING FOR FINANCIAL INCOME AND EXPENSES

1.5.1 Accounting for financial income

1.5.1.1 Concept of accounting for financial income

The revenues counted as financial income: Interest: such as loan interest, depositinterest, deferred sale interest, installment payment, interest on investment in bonds,treasury bills, discount on payments enjoyed by purchase of goods, services,financial leasing interest , Income from property rental, letting others use theproperty Dividends, distributed profits, Income from investment activities, short-term and long-term securities trading; Income from transfer and lease ofinfrastructure; Income from other investment activities; Interest difference due tosale of foreign currencies, interest from foreign currency exchange rate difference;Interest difference on capital transfer; (Nhị, 2006)

1.5.1.2 Vouchers

The main vouchers used for financial income are :

- Payment, Credit notes, bank statements anh Other relevant documents

1.5.1.3 Detail Accounting

a Books

The accountant uses Subsidrary Ledger Account No.515

Image 1.3: Subsidrary leger

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b Accouting Method

The Accounting Method is:

Detailed books of accounts are opened for each account, for each paymentobject (for each cost content, capital source …)

- Column A: Enter date and month of entry

- Columns B, C: Write the number, date and month of the voucher used forentry

- Column D: Record summary interpretation of the arising economicprofession

- Columns 1, 2: Enter the amount incurred on the Debit or Credit side

- Columns 3, 4: Record the balance of the Debit or Credit side after eacharising transaction

- Opening balance line: Get data from the payment tracking detailed book ofthe previous period (line "Closing balance") to record in Column 3 or Column 4 asappropriate

1.5.1.4 General accounting

a Accounts

 Used account:

Account 515: financial income

 Account 515 has a rule debit & credit:

Debit:

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

- Transfer financial income to 911 account “Determined business results"

Credit:

- Dividends, dividends and profits shared.

- Interest from the sale of investments in subsidiaries, joint ventures,associates

- Discount payment to be enjoyed

- Exchange rate interest arising in the period of the business activity

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- The exchange rate gain arises when selling foreign currencies.

- Exchange rate interest upon re-evaluation at the end of the fiscal yearmonetary items denominated in foreign currencies of business activities

- Transferring or distributing exchange rate interests of capital constructioninvestment activities

- Revenue from other financial activities generated in the period

413

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(4) Sale of foreign currency earnings

(5) Swapping stock

(6) Transfer of exchange rate differences

1.5.2 Accounting for financial expenses

1.5.2.1 Concept of Accounting for financial expenses

Financial operating expenses include expenses or losses related to financialinvestment activities, borrowing and borrowing costs, costs of capital contribution

to joint ventures, loss of short-term securities transfer , transaction costs of sellingsecurities…; provision and reversal of provisions for diminution in the value ofsecurities investments, other investments, losses in foreign currency sales… (Nhị,2006)

1.5.2.2 Vochers

The main vouchers used for financial expenses are :

- Debit notes, bank statements

- VAT incoive

a Books

Account No.635: Financial expenses

Account No.635 has a rule debit & credit:

Debit:

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- Interest expense, interest deferred payment, interest property finance leaserental.

- Losses from selling foreign currency

- Discount payment for buyers

- Losses due to liquidation or sale of investments

- Exchange rate loss incurred in the period; Foreign exchange loss due to theyear-end reassessment of monetary items denominated in foreign currencies

- The amount of the provision for impairment of trading securities and for loss ofinvestment in another entity

- Other financial investment expenses

Credit:

- Reversal of provisions for impairment of trading securities, and for loss of investments in other entities (the difference between the allowance made in thisperiod is smaller than the allowance made in the previous year that has not beenused up)

- Items recorded as a decrease in financial expenses;

At the end of the accounting period, carry over all financial expenses incurred

in the period to determine the business results

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(5) Exchange rate loss

(6) Revert the provisiob for securities investment

(7) Transferring financial expenses

1.6 ACCOUNTING FOR OTHER INCOME AND EXPENSES

1.6.1 Accounting for other income

1.6.1.1 Concept of accounting other income

Other Income is the kind of income that an enterprise does not foresee or has aplan but is unlikely to realize, or is income that occurs infrequently, other thanrevenue-generating activities Other income arising can be due to subjective reasons

of the business or objectivity (Nhị, 2006)

Diagram 1.5: Accounting for financial expenses

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The accountant uses Subsidrary Ledger Account No.711.

- Account No.711: Other income

- Account No.711 does not have a second level account

- Other income generated during the period.

3331

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(1) Income from disposal of fixed assets

(2) Value added tax (if any)

(3) Included in other income payale liabilities cannot be indentified

(4) Receive grants, donations of supplices, goods

(5) Taxes deducted from other income ( if any )

(6) Transfer of other income

1.6.2 Accounting for other expenses

1.6.2.1 Concept of accounting other expenses

Other expenses are expenses that the business has not foreseen or expected but

is unlikely to implement, or are expenses that occur infrequently, in addition toactivities that generate revenue Other costs incurred may be due to subjectivereasons of the business or objectivity (Nhị, 2006)

(6)

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- Accounting bill

a Books

- Account No.811: Other expenses

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(1) Other expenses in cash (expenses for liquidation, sale of fixed assets )(2) Tax fines, retrospective payment of taxes, contract breaches

(3) Record a decrease in fixed assets due to liquidation or sale

(4) Tranfer of other expenses incurred in the period

1.7 ACCOUNTING FOR INCOME TAX EXPENSES

1.7.1 Concept of income tax expenses

Income tax expenses is the tax imposed on taxable income of production and business establishments that generate taxable income in the tax period Corporate income tax includes: current corporate income tax and deferred corporate income tax costs incurred in the year as a basis for determining the business results of the enterprise in the year current finance (Nhị, 2006)

1.7.2 Vouchers

- Provisional corporate income tax return

- Declaration for adjustment of corporate income tax

1.7.3.1 Books

(3)

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Account No.821: Income tax expenses

Account No.821 - Corporate income tax expense has 2 tier 2 accounts

- Account No.8211 - Current corporate income tax expenses

- Account No.8212 - Deferred corporate income tax expenses

Debit:

- Corporate income tax incurred in the year

- Corporate income tax of previous years, additional payable due to detection

of non-material errors of previous years, is recorded as an increase in corporate income tax expense of the current year

Credit:

- The actual corporate income tax payable in the year is smaller than theprovisional corporate income tax payable and deducted from the corporate incometax expense recognized in the year

- The corporate income tax payable is reduced due to the detection of material errors of the previous years, recorded as a decrease in corporate income taxexpense in the current year

non Transferring the difference between the corporate income tax expenseincurred in the year is greater than the amount recorded for reduction of corporateincome tax expense in the year into account No911 - "Determination of businessresults"

Account No.821 doesn’s balance

(1)

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(1) Corporate income tax payment

(2) Quarterly, the enterprise income tax shall be temporarily paid for, and additionally adjusted, corporate income tax

(3) Reducing adjustment when the amount of provisional tax payable in theyear is greater than the payable amount determined at the end of the year(4) At the end of the closing period for transferring corporate income taxexpenses

1.8 ACCOUNTING FOR INCOME SUMMARY AND TRANFERRING NET INCOME/ NET LOSS

1.8.1 Concept of accounting income summary

The income summary account is a temporary account into which all incomestatement revenue and expense accounts are transferred at the end of an accountingperiod The net amount transferred into the income summary account equals the netprofit or net loss that the business incurred during the period Thus, shifting revenueout of the income statement means debiting the revenue account for the totalamount of revenue recorded in the period, and crediting the income summaryaccount At the end of a period, all the income and expense accounts transfer theirbalances to the income summary account (VAS 14, 2001)

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The method of accounting for detailed income summary is similar toaccounting for financial income, opening detailed accounts of accounts for eachsubject

1.8.3 General accounting

1.8.3.1 Accounts

 Used account

- Account No.911: Income summary

- Account No.911 does not have a second level account

Debit:

- Cost of capital of products, goods, investment property and services sold.

- Financial expenses, corporate income tax and other expenses

- Selling expenses and business administration expenses

- Interest carry-over

Credit:

- Net sales of products, goods, investment properties and services sold

during the period

- Revenue from financial activities, other income and deduction of corporateincome tax expense

(8)

(7)(6)(5)

421

821

(9)

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(1) Tranfer cost of service sold

(2) Tranfer of selling expenses and administrative expenses

(3) Tranfer of financial expenses

(4) Tranfer of other expenses

(5) Tranfer of fees earnd

(6) Tranfer revenue from financial income

(7) Tranfer of other income

(8) Tranfer of income tax expenses

(9) Tranfer profits and losses

(10) Tranfer profits and losses

Diagram 1.9: Accounting for income summary and tranferring net

income/ net loss

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CHAPTER 2 METHOD OLOGY OF ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY IN SKCOMPANY

VIETNAM JOINT STOCK COMPANY 2.1 HISTORY OF SKCOMPANY VIETNAM JOINT STOCK COMPANY 2.1.1 History of Skcompany VietNam Joint Stock Company

 Active Point Special

Skcompany Vietnam Joint Stock Company was established under the BusinessRegistration Certificate No 0401910408 dated July 5, 2018 The Company is an

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independent accounting unit, operating under the Enterprise Law, the Company'sCharter and current relevant legal regulations.

 Head office address: 08 Nguyen Thi Bay, Thanh Khe Tay Ward, ThanhKhe District, Da Nang City

 Operation status: In operation (has been granted a technical certificate)

 Representative first name: Than Thanh

 Department of tax management:Tax Department of Thanh Khe district

 Ownership form: Joint Stock Company

 Main business areas: Trade and Services

 Main business sectors

- Computer consulting & computer system administrator

 Accounting form: General Journal

Skcompany Vietnam Joint Stock Company was established in 2018, this is abusiness enterprise on the main field of computer programming The enterpriseoperates on the principles of independent accounting in order to create profits, wellorganize and manage services to ensure quality standards, to make customers happyand satisfied Operating within the legal framework of the state and subject to thestate management Performing the duties of paying taxes and other amounts to thestate Producing and supplying goods and services to meet the needs of customers.Fulfill obligations, train and create favorable conditions to improve employees'lives, and benefit regimes for employees Build and implement well the proposedplans, constantly improve management skills, expand the scope of activities

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