TOPIC ACCOUNTING FOR SALES AND DETERMINING INCOME SUMMARY AT THE MINH HANH TRADING SERVICE CO , LTD

DUY TAN UNIVERSITY INTERNATIONAL SCHOOL ((((( UNDERGRADUATE THESIS TOPIC ACCOUNTING FOR SALES AND DETERMINING INCOME SUMMARY AT THE MINH HANH TRADING SERVICE CO , LTD STUDENT HA THI UYEN PHUONG MENT.

DUY TAN UNIVERSITY INTERNATIONAL SCHOOL  - UNDERGRADUATE THESIS TOPIC: ACCOUNTING FOR SALES AND DETERMINING INCOME SUMMARY AT THE MINH HANH TRADING & SERVICE CO., LTD STUDENT MENTOR CLASS NUMBER : HA THI UYEN PHUONG : MBA HOANG ANH THU : K24PSUKKT : 24202505584 DA NANG , 2022 ABSTRACT In current competitive market, business activities take place in two phases of buying and selling Thus, in business activities, selling is a basic business, business cycle can only take place smoothly when sales are well organized, increasing profitability Through this thesis, I hope to be able to approach and analyze the basic issues related to accounting for sales and determining business incomes at Minh Hanh Trading & Service Co., Ltd in a certain period of time To go deeper into understanding the issues related to the accounting at Minh Hanh Trading & Service Co., Ltd I have used the research method: • Research method, reference: Read, refer, learn the textbooks compiled by lecturers to teach; research the documents collected during internship in the company to serve as a theoretical basis for the research topic • Methods interview: Used during the internship, helping me answer my questions and understand better about the accounting work at the Company, thereby also helping me accumulate practical experience sacrifice for yourself One of the main purposes of the topic is to realize how important of accounting for sales and income summary, particularly at Minh Hanh Trading & Service Co., Ltd This helps me have more overview on the work of accounting for sales and income summary Therefore, I can propose solution to improve the consumption accounting of businesses in particular and to complete my undergraduate thesis DISCLAIMER I certify that the attached thesis is my original work No other person’s work has been used without due acknowledgement Except where I have l clearly stated that I have used some of the material, it has not been presented by me for examination in any other course or subject at this or any other institution I understand that the work submitted may be reproduced and/or communicated for the purpose of detecting plagiarism I understand that should this declaration be false; I am libel to be penalized under the Duy Tan University regulations Signature: Date: ACKNOWLEDGEMENT First of all, I would like to express the sincerest thanks to all faculty of Duy Tan University, especially lecturers from Accounting and Auditing Department and International School Department, who taught and imparted valuable knowledge during years of study and practice at the university I sincerely thank Ms Hoang Anh Thu, who directly guide for giving me insightful suggestions and feedback for this university graduation thesis Without her guidance, I was not be able to complete it I would also like to thanks the officers in the accounting department in Minh Hanh Trading & Service Co., Ltd, who enthusiastically helped me and create opportunities to further study my topic in the process of implementing this thesis However, due to time and knowledge is still limited so this thesis cannot avoid the shortcomings I am looking forward to receiving comments and contribution of our teachers and officer in the business to complete TABLE OF CONTENTS ABSTRACT i DISCLAIMER iii ACKNOWLEDGEMENT LIST OF ABBREVIATIONS LIST OF EXHIBIT LIST OF FIGURES RESEARCH PROPOSAL CHAPTER 1: LITERATURE REVIEW ON ACCOUNTING FOR SALES AND INCOME SUMMARY IN THE COMPANY 1.1 GENERAL OVERVIEW OF ACCOUNTING FOR SALES AND INCOME SUMMARY 1.2 ACCOUNTING FOR SALES 1.2.1.1 Vouchers 1.2.1.2 Detailed accounting .6 CHAPTER 2: METHODOLOGY OF ACCOUNTING FOR SALE AND INCOME SUMMARY AT MINH HANH TRADING & SERVICE COMPANY 24 2.1 INTRODUCTION OF MINH HANH TRADING & SERVICE COMPANY 24 2.1.2.3.2 Functions and duties of accounting operations 28 2.2 ACCOUNTING METHODS OF SALES AND DETERMINATION OF BUSINESS RESULTS AT MINH HANH TRADING & SERVICES CO., LTD 30 2.2.2 Revenue deduction accounting 34 2.2.4.2 Accounting for administrative expenses 41 CHAPTER 3: SOME SOLUTIONS TO IMPROVE THE ACCOUNTING FOR SALES AND INCOME SUMMARY AT THE MINH HANH TRADING & SERVICE CO.,LTD 61 3.1 SOME GENERAL COMMENTS ON ACCOUNTING FOR SALES AND INCOME SUMMARY AT AT THE MINH HANH TRADING & SERVICE CO.,LTD 61 3.2 SOME SUGGESTIONS FOR IMPROVEMENT OF ACCOUNTING FOR SALES AND INCOME SUMMARY AT THINH HUNG AUTOMOTIVE COMPANY LIMITED 63 CONCLUSION 65 BIBLIOGRAPHY & REFERENCES 66 LIST OF ABBREVIATIONS VAT : Value added tax COGS : Cost of goods sold No : Number LIST OF EXHIBIT LIST OF FIGURES RESEARCH PROPOSAL 1.Reason for choosing a reseach topic Currently, the world economy in general and Vietnam in particular have changed a lot, especially after the epidemic period There are many changes The change of the economy has a great influence on businesses and vice versa, the activities of enterprises also have a great influence on the economy Any business, whether large or small, operating in the field of production and trade, must pay attention to the consumption stage Good sales performance and defining results are important in determining business performance In order to achieve high efficiency in production and business activities of enterprises, accounting is an important and effective management tool, responsible for collecting and processing information accurately and transparently With regard to product consumption, accountants must closely reflect and monitor the costs and aggregates related to the consumption to determine reasonable business results Through the process of product consumption, business managers can grasp the situation of products, know the flow of their goods and products, better understand the needs of the market Thereby helping them make more informed decisions and make the right business strategies Stemming from the above issues, to learn more about consumption accounting and accounting methods to determine business results at Minh Hanh Trading & Service Co., Ltd 2.Research questions • Systemize the theoretical basis of Accounting for sales and income summary of the company • Find out, analyze current situation of Accounting for sales and income summary Comment and propose a number of solutions to contribute to perfecting the Accounting for sales and income summary Subject and Scope of research Subject: Consumption accounting and business determination 4.Research methods • Collecting accounting data of the company 2.2.7.2 Detail accountant a Subsidiary ledger Accountant of Minh Hanh Trading & Service Co., Ltd uses Ledger account 811Other expenses 54 b Recording method Figures 23 Account Details Ledger No 811 2.2.8 Accounting for other income 2.2.8.1 Voucher On December 31, 2020, Minh Hanh Trading & Service Co., Ltd received an amount: 70,000,000, the seller has not been identified The Board of Directors decides to recognize this amount in other income of the year 55 GIẤY BÁO CÓ CỦA NGÂN HÀNG (THU) NGÀY 31 THÁNG 12 NĂM 2020 Số phiếu: Tài khoản nợ: Liên số: BC00005 112 Người nộp: Đơn vị: Về khoản: NỘI DUNG TÀI KHOẢN Nguyễn Thị Bình An chuyển tiền 131 TỔNG TIỀN: SỐ TIỀN 70,000,000.00 70,000,000.00 Số tiền (viết chữ): bảy mươi triệu đồng chẵn Kèm theo: chứng từ gốc: Đã nhận đủ số tiền (viết chữ): NGÀY 31 THÁNG 12 NĂM 2020 THỦ QUỸ NGƯỜI LẬP PHIẾU (Ký, họ tên) (Ký, họ tên) 56 Figures 24 Credit Advice of Account 131 57 2.2.8.2 Detail accountant a Accounting books Accountant of Minh Hanh Trading & Service Co., Ltd uses the ledger account Cr 711- Other income b Recording method Figures 25 : Account Details Ledger No 711 58 2.2.8.3 General Accouting Figures 26 Account Details Ledger No 711 2.2.9 Accounting for business income 2.2.9.1 Detail accountant a Subsidiary ledger At the end of each quarter, the accountant records the data in the book Thinh Hung Automobile Co., Ltd.'s accountant uses the Company's Account Ledger Number 911- Summary of income 59 b Recording method Figures 27 Account Details Ledger No 911 Figures 28 Account Details Ledger No 911 60 2.2.10 Accounting for Corporate income tax 2.2.10.2 General Accounting a General books At the end of each month, based on total income and total accounting expenses, the CIT amount (to be paid if any) is determined In case there is no accounting, the account will be transferred to Account 421 to determine business results b Accounting method Figures 29 Subsidiary Ledger of Account No 911 61 CHAPTER 3: SOME SOLUTIONS TO IMPROVE THE ACCOUNTING FOR SALES AND INCOME SUMMARY AT THE MINH HANH TRADING & SERVICE CO.,LTD 3.1 SOME GENERAL COMMENTS ON ACCOUNTING FOR SALES AND INCOME SUMMARY AT AT THE MINH HANH TRADING & SERVICE CO.,LTD 3.1.1 Strength Through my internship and research at the Minh Hanh Tranding & Income realize that the company has some advantages as follows: General comment • The Board of Directors of the company are people with high professional qualifications and experience in managing and operating the company • Professional, skilled and dedicated staff and technicians at work • Working among flexible divisions, with mutual support in the business process of the company • Enterprises use "Bravo Accounting Software" This software has the advantage of reducing the workload of accountants in the accounting period, easily correcting and adjusting when errors are detected Accounting apparatus • The company uses a centralized accounting model, each accountant is in charge of different departments to avoid overlapping and regular comparison Each other creates a premise for the accounting work to synthesize on accurate reports The financial accounting apparatus organization has well performed the function of advising the Director on the management of the company's goods, assets and money The accounting apparatus is really a reliable source of information about the financial situation of the company during the time since its inception • The company's accounting system is quite strict Always strictly abide by the decisions of the leaders of the Company, in accordance with the laws of the State The 62 assignment in the accounting team is quite clear, creating high efficiency in the working process Accounting books • The form of accounting books of the company uses the form of "Recording Vouchers" This form is very suitable for the company, helping the process of rotating, comparing and checking documents in detail, clarity, and accuracy to meet the information requirements of leaders Account system • The Company is always updated with the latest information on the current accounting regime and complies with accounting principles as prescribed by the Ministry of Finance Currently, the Company is using the latest account system of the Ministry of Finance and is allowed to open more detailed accounts related to revenue and income general accounting, creating conditions for accurate recording and spending detail each item Documentation system Minh Hanh tranding & service Co., Ltd applies the accounting system in accordance with Circular No.133/2016/TT-BTC dated 01/01/2017 of the Ministry of Finance and legal documents guiding the preparation and rotation of documents from The company's document system is relatively complete and consistent with the company's production and business characteristics and State regulations Accounting Software • The company uses accounting software to help minimize accounting workload, provide timely, accurate information and respond to the decisions of the management board, improve the efficiency of the company's accounting Accountants just need to enter the original documents into the machine, the data will be updated in the relevant books quickly and accurately The company's accounting system is simple and compact, convenient for checking and comparing when there are errors For many years, companies have applied accounting information to management to make decisions for each period 63 3.1.2 Weaknesses Besides the above advantages, the company still has limitations that need to be overcome in order to perfect the accounting work of the business: • The use of accounting software has not achieved perfect control For example, deleting, correcting unrecorded data, number of hits, no access right, no connectivity between accounting management software, businesses, fixed assets and tools This issue requires a complete computerized accounting information system in the company • Although the company applies Circular 133, but the documents are Circular 200, so it will not guarantee the consistency of documents • The company's revenue has parts: vehicle revenue, spare parts and service revenue But it is only the cost of the vehicle and parts and the cost of the service provision is included in the labor cost of the sales department This leads to inaccurate differentiation of cost types 3.2 SOME SUGGESTIONS FOR IMPROVEMENT OF ACCOUNTING FOR SALES AND INCOME SUMMARY AT THINH HUNG AUTOMOTIVE COMPANY LIMITED After practicing and finding out the current status of accounting for determining business results at Minh Hanh tranding & service Co., Ltd , based on the above comments, I would like to propose some solutions to perfect the accounting and determine the business results of the company as follows: • Increase sales, Diversified goods, reduce cost of capital, find good sources reduce administration expenses • The company should forecast consumption The forecast will set the stage for appropriate production plans, and there will be assurance that the quantity of finished goods is always at a safety level, no shortage for sales or large surplus increasing storage cost • The company should have a debt recovery employee When the customer pays the debt, the debt collector of the company will be responsible for urging the customer to repay 64 • In order to attract more new customers and retain a large number of long- term customers, in order to increase sales, increase profits, the company should have policies to encourage large volume buyers by applying pressure Use trade discounts or sales allowances Company may apply trade discount • Expand consumption market, focusing on industrial zones • The company should plan to remodel or build some new warehouses to ensure better inventory • Marketing department needs to study, master the situation of consumption and consumption markets • The company should apply document templates according to Circular 133 to ensure consistency between documents • The company should separate repair service costs from selling costs to determine cost of goods sold of specific repair service revenue • To maximize the capacity as well as the dedication and constructive ability of the employees, the company needs to have positive related policies 65 CONCLUSION Through practice at at Minh Hanh tranding & service Co., Ltd , initially I have become acquainted with accounting work I have learned the company’s accounting department organization as well as its accounting methods It can be said that the company has got significant achievement with non-stop growth and its market position is increasingly confirmed Through the thesis, it can be seen that the rational organization of accounting for sales and income summary plays a very important role in every business’s performance because this accounting practice is the basis of the income statement, an important financial statement of the enterprise Thanks to information about consumption and business results, the enterprise manages its sales activities better, ensures that sales activities take place smoothly and operating activities makes high efficiency for the enterprise, improve workers’ living standard In the first time I have contacted with the reality, I have learned a lot of useful things There is a non-simple process between the reality and theory The theory follows available patterns while the reality is extremely varied and complex Besides that, because of limited practice time, the thesis is not free from shortcomings So, I look forward to comments from friends and lecturers One more time, I sincerely thank Ms Hoang Anh Thu, who enthusiastically helped me complete my thesis I also would like to thank the leadership and accounting staff at Minh Hanh tranding & service Co., Ltd for help during practice at the company 66 ... GENERAL COMMENTS ON ACCOUNTING FOR SALES AND INCOME SUMMARY AT AT THE MINH HANH TRADING & SERVICE CO. ,LTD 61 3.2 SOME SUGGESTIONS FOR IMPROVEMENT OF ACCOUNTING FOR SALES AND INCOME SUMMARY. .. solutions to improve the Accounting for sales and Income Summary at Minh Hanh Trading & Service Co. , Ltd CHAPTER 1: LITERATURE REVIEW ON ACCOUNTING FOR SALES AND INCOME SUMMARY IN THE COMPANY 1.1 GENERAL... 1: Literature review about Accounting for sales and Income Summary in the Company Chapter 2: Methodology of Accounting for sales and Income Summary at Minh Hanh Trading & Service Co. , Ltd Chapter