MINISTRY OF FINANCE ACADEMY OF FINANCE GRADUATION THESIS ACCOUNTING FOR SALES AND DETERMINATION OF BUSINESS RESULTS AT DUNG NHI PRODUCTION TRADING AND IMPORT EXPORT JOINT STOCK COMPANY Mentor PhD Thai[.]
MINISTRY OF FINANCE ACADEMY OF FINANCE GRADUATION THESIS ACCOUNTING FOR SALES AND DETERMINATION OF BUSINESS RESULTS AT DUNG NHI PRODUCTION TRADING AND IMPORT EXPORT JOINT STOCK COMPANY Mentor : PhD Thai Ba Cong MSc Nguyen Ba Linh Major : Corporate Accounting HA NOI - 2022 MINISTRY OF FINANCE ACADEMY OF FINANCE GRADUATION THESIS ACCOUNTING FOR SALES AND DETERMINATION OF BUSINESS RESULTS AT DUNG NHI PRODUCTION TRADING AND IMPORT EXPORT JOINT STOCK COMPANY Mentor : PhD Thai Ba Cong : MSc Nguyen Ba Linh Major : Corporate Accounting HA NOI - 2022 DECLARATION I hereby declare that this thesis is my own work and effort and that has not been submitted anywhere for any award Where other sources of information have been used, they have been acknowledged The data and results described in the thesis are derived from the actual situation of the practice company Hanoi, February 21, 2022 Student ACKNOWLEDGEMENT Firstly, I am deeply indebted to my supervisors PhD Thai Ba Cong and MAc Nguyen Ba Linh, whose help, stimulating suggestions and encouragement helped me all the time of research for and writing of this thesis I also want to thank Dung Nhi Production Trading and Import Export Joint Stock Company for giving me permission to commence this thesis in the first instance, to the necessary research work and to use departmental data I have furthermore to thank the former Vice Director and Accounting Manager as well as all seniors at Dung Nhi Production Trading and Import Export Joint Stock Company who gave and confirmed this permission and encouraged me to go ahead with my thesis Especially, I would like to give my special thanks to my family whose patient love enabled me to complete this work DECLARATION Table of Contents ACKNOWLEDGEMENT List of diagram List of image 10 List of screen 11 LIST OF ABBREVIATIONS 12 INTRODUCTION 13 The urgency of the subject 13 The purposes of the dissertation 14 The object and scope of the dissertation 14 Research Method 15 The structure of the dissertation 15 CHAPTER 1: BASIC THEORY OF ACCOUNTING FOR SALES AND DETERMINATION OF BUSINESS RESULTS IN COMMERCIAL ENTERPRISES 16 1.1 General concepts and tasks of sales accounting and determining business results of enterprises 16 1.1.1 General overview of sales accounting and determination of business results 16 1.1.1.1 The concept of sale and determining business results 16 1.1.1.2 Relationship of sales and determination of business results 16 1.1.1.3 Roles and tasks of accounting for sales and determining business results 17 1.1.2 Classification of sales methods in commercial enterprises 18 1.1.3 Payment methods 20 1.2 General theory of accounting for sales and determination of business results 20 1.2.1 Accounting for revenue and revenue deductions 1.2.1.1 Accounting for revenue 20 20 1.2.1.1.1 Definition of revenue 20 1.2.1.1.2 Revenue recognition 21 1.2.1.1.3 Revenue recognition principles 22 1.2.1.1.4 Accounting documents and accounts used 23 1.2.1.1.5 Accounting entries 25 1.2.1.2 Revenue deductions 26 1.2.1.2.1 Definition of revenue deductions 26 1.2.1.2.2 Accounting documents and accounts used 27 1.2.1.2.3 Accounting entries 27 1.2.2 Accounting for COGS 28 1.2.2.1 Definition 28 1.2.2.2 Accounting documents and accounts used 28 1.2.2.3 Method of calculating the cost of goods exported from stock 29 1.2.2.4 Accounting entries 31 1.2.3.1 Definition 33 1.2.3.3 Accounting entries 34 1.2.4 Accounting for financial income and financial expense 35 1.2.4.1 Definition 35 1.2.4.2 Accounting documents and accounts used 36 1.2.4.3 Accounting entries 38 1.2.5.1 Definition 40 1.2.5.2 Accounting documents and accounts used 42 1.2.5.3 Accounting entries 43 1.2.6 Accounting of income tax expense 44 1.2.6.1 Definition 44 1.2.6.2 Accounting documents and accounts used 44 1.2.6.3 Accounting entries 44 1.2.7 Accounting for business result 45 1.2.7.1 Definition 45 1.2.7.2 Accounting documents and accounts used 46 1.2.7.3 Accounting entries 46 1.2.8 Presenting information about sales accounting and determining business results on financial statements 47 1.2.9 Sales accounting and determination of business results in terms of IT application 1.2.9.1 Definition 50 50 CONCLUSION OF CHAPTER 53 CHAPTER 2: THE ACTUAL SITUATION OF ACCOUNTING FOR SALES AND DETERMINATION OF BUSINESS RESULTS AT DUNG NHI PRODUCTION TRADING IMPORT EXPORT JOINT STOCK COMPANY 54 2.1 Overview of Dung Nhi Production Trading Import Export Joint Stock Company 54 2.1.1 The process of formation and development of the company 54 2.1.2 Characteristics of production and business organization of the company 57 2.1.3 Characteristics of management organization at Dung Nhi Production Trading Import Export Joint Stock Company 61 2.1.4 Characteristics of organization of accounting work at Dung Nhi Production Trading Import Export Joint Stock Company 65 2.1.4.1 Features of the organization of the accounting apparatus 65 2.1.4.2 Accounting policies applied in Dung Nhi Production Trading Import Export Joint Stock Company 66 2.1.4.3 Introduction to accounting software company used 70 2.2 The actual situation of accounting for sales and determination of business results at Dung Nhi Production Trading Import Export Joint Stock Company 77 2.2.1 Accounting for revenue 77 2.2.1.1 Characteristics of products, goods, markets and the process of consuming goods and products of the company 77 2.2.1.2 Payment method 79 2.2.1.3 Accounting documents and accounts used 79 2.2.1.4 Detailed and general accounting for revenue 79 2.2.1.5 Accounting for Deduction Revenues 99 2.2.2 Accounting for Cost of Goods sold 2.2.3 Accounting for selling expense and administrative expense 2.2.3.1 Accounting for selling expense 2.2.3.2 Accounting for Administrative expense 2.2.4 Accounting for financial income and financial expense 2.2.4.1 Accounting for financial income 99 104 105 109 113 113 2.2.4.2 Accounting for Financial expenses 117 2.2.5 Accounting for income tax expense 120 2.2.6 Accounting for determination of business results 123 2.3 General assessment of accounting for sales and determination of business results at Vietnam Trading and Technology Equipment Joint Stock Company 127 2.3.1 Advantages 128 2.3.2 Limit 131 CONCLUSION OF CHAPTER 133 CHAPTER 3: SEVERAL SOLUTIONS TO IMPROVE ACCOUNTING FOR SALES AND DETERMINATION OF BUSINESS RESULTS AT DUNG NHI PRODUCTION TRADING AND IMPORT EXPORT JOINT STOCK COMPANY 134 3.1 Development orientation of the company 134 3.2 Improvement requirements and principles 134 3.2.1 Perfecting Requirements 134 3.2.2 Principles of completing accounting work at Vietnam Trading and Technology Equipment Joint Stock Company 135 3.3 Recommendations to improve the accounting work at Dung Nhi Production Trading and Import Export Joint Stock company 136 3.4 Conditions for implementing solutions to complete sales accounting and determine business results at Dung Nhi Import-Export Production and Trading Joint Stock Company 139 3.4.1 On the side of the state and authorities 139 3.4.2 The responsible of Dung Nhi Trading Production Import Export Joint Stock Company 141 CONCLUSION OF CHAPTER 142 CONCLUSION 143 REFERENCES 144 LIST OF DIAGRAM Diagram 1.1: Accounting entries for revenue 25 Diagram 1.2: Accounting entries for instalments revenue and deferred revenue 25 Diagram 1.3: Accounting entries for sales agent revenue 26 Diagram 1.4: Accounting entries for revenue deductions 27 Diagram 1.5: Accounting entries for cost of goods sold according to perpetual inventory count 31 Diagram 1.6: Accounting entries for cost of goods sold according to periodic inventory method 32 Diagram 1.7: Accounting entries for selling expenses and administrative expense 34 Diagram 1.8: Accounting entries for finanacial income 38 Diagram 1.9: Accounting entries for financial expense 39 Diagram 1.10: Accounting entries of other income 43 Diagram 1.11: Accounting entries of other expenses 43 Diagram 1.13 – Accounting entries for Income Summary 46 Diagram 1.14: Business lines 57 Diagram 1.15: Company’s model trading 62 Diagram 1.16: Organization of accounting works 65 Diagram 1.17: The form of accounting book 67 Diagram 1.18: Accounting entry in the form of computerised accounting 69 Diagram 1.19: Company’s good rotation process 78 LIST OF IMAGE Image 2.1: Registration certificate 56 Image 2.2: VAT Invoice of Dung Nhi transaction 80 Image 2.3: Ledger Account 511 89 Image 2.4: General Journal printed from VACOM software 93 Image 2.5: Ledger account 632 102 Image 2.6: Detailed ledger account 632 102 Image 2.7: Goods delivery note 103 Image 2.9: Ledger account 6421 108 Image 2.10: VAT invoice for administrative expense 109 Image 2.11: Ledger account 6422 112 Image 2.12: Ledger account 515 115 Image 2.13: Detailed Ledger account 515 116 Image 2.14: Ledger account 635 118 Image 2.15: Detailed Ledger account 635 120 Image 2.16: Leder account 821 122 Image 2.17: Ledger account 911 126 10 ...MINISTRY OF FINANCE ACADEMY OF FINANCE GRADUATION THESIS ACCOUNTING FOR SALES AND DETERMINATION OF BUSINESS RESULTS AT DUNG NHI PRODUCTION TRADING AND IMPORT EXPORT JOINT STOCK COMPANY Mentor... activities and determination of business results at Dung Nhi Production Trading and Import Export Joint Stock Company The object and scope of the dissertation - Research object: Accounting for sales and. .. Production Trading and Import Export Joint Stock Company Chapter 3: Several solutions to improve accounting for sales and determination of business results at Dung Nhi Production Trading and Import Export