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boi Hanh La Thi Bich

Ngay Nop: 12-thg 11-2020 08:51SA (UTC+0700) ID Bài Nộp: 1443442759

Tên Tập tin: L_-Th_-B_ch-H_nh.docx (198.43K)

Đềm từ: 8457

Đếm ký tự: 66106

Student: La Thi Bich Hanh Major: Accounting

Class: Advanced Accounting 59B Student’s ID: 11171497

Supervisor: Ph.D Pham Thi Thuy

HÀ NỘI - 2020

INTRODUCTION The construction industry has created the power to step in and perform the period of industrialization and modernization of Vietnam This growth of the construction industry is reasonable with the steady growth of the national economy, the improvement of urbanization, and a rehabilitation from the real estate market Demand for basic construction is becoming more necessary for society Along with the development of technology, corporations, companies have _ established strengthening, continued to make intensive investment in technological innovation, increased production capacity, competitiveness of products in industry, prepared the premise advanced to regional economic integration and international in the next period

By the end of 2016, Circular 133/2016/TT-BTC issued by the Ministry of Finance on guidance for the Enterprise Accounting System, stipulates that a significant change in the accounting operations to match the country's trend in growth This change requires businesses to adjust to the fact, to upgrade quickly Accounting internships can therefore help students get the chance to apply the theory in practice to have a better understanding about the accounting work of enterprises in a specific business sector Additionally, this internship also allows students to follow modern methods of accounting, such as applying accounting software to the job

Understanding the importance of the accounting internship for students, especially students majoring in accounting, I have interned in the accounting department of Hung Dung one-member company limited With the guidance of senior accountants in the accounting department, I have completed this Accounting Internship Report This report consists of three main chapters as follows:

Chapter 1: Overview of technical — economic management and organizational structure of Hung Dung one-member company limited

Chapter 2: An introduction to accounting organization and system applied in Hung Dung one-member company limited

Chapter 3: Evaluation accounting organization and system in Hung Dung one- member company limited

Sincerely thanks!

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CHAPTER 1 OVERVIEW OF TECHNICAL — ECONOMIC MANAGEMENT AND ORGANIZATIONAL STRUCTURE OF HUNG DUNG ONE-MEMBER

COMPANY LIMITED 1.1 History of the Establishment and Development of Hung Dung one-member company limited

On May 7, 2010, Hung Dung company was established and officially named “Hung Dung one-member company limited” by Mr Nguyen Huy Hung, he is the owner of the company, as well as the director and the legal representative

e Vietnamese name: Công ty trách nhiệm hữu hạn một thành viên Hùng Dũng e Type of company: One-member Company Limited

e Business code: 5400345738 e Head office address: Hamlet 9,Su Ngoi Commune, Hoa Binh City, Hoa Binh Province, Vietnam

e Email: congtyhungdunghb@ gmail.com e Phone number: 0912608445

e Chartered capital: 2.5 billion VND The original business lines that were registered on the business license were: e Coal mining, processing, and retailing

e Mining metal and non-metal ores e Wood gathering

In 2015, the company stopped exploiting minerals and wood, changed its business lines to buy and sell construction materials: sand, stone, and gravel because the previous business products did not bring the desired profit as well as had high cost: cost of renting machines, workers.,

1.2 Features of business operations 1.2 Functions and Responsibilities

During 10 years of operation, Hung Dung one-member company limited specializes in providing construction materials, namely sand, stone and gravel to customers who are families in the area of Hoa Binh province, and their needs are home remodeling or reconstruction The company's goods source is not fixed, it can be obtained from companies or households mining sand, stone and gravel in Phu Tho province, as long as the price is cheaper and the quantity of goods is guaranteed

With the motto of prompt, timely, products with stable quality and keeping trust with customers According to commitments and agreements with customers, Hung Dung one-member company limited has been and will meet all the needs of customers in the local area, worthy of the beliefs of works,

1.22 Main business activities The company has two main business activities: ° Purchase of goods (sand, stone, gravel): The company does not self- exploit but buys from mining companies or self-exploiting households The particular place of purchase 1s in Phu Tho province In the past, the company's suppliers were only local to facilitate quality control and for easy transportation, and the company did not buy goods from companies outside the province to avoid additional costs and quality risks But currently, Hoa Binh province has banned the exploitation of sand, stone and gravel within the province, so the company has to buy from suppliers in Phu Tho province The company's supplier of goods is not fixed but will change whenever a match of equal quality and cheaper price is found

° Selling goods (sand, stone, gravel): The company's regular customers are mainly households in Hoa Binh province They buy goods from the company to build houses, repair household works,

1.2.3 Features of technology and production process Figure | describes the process of purchasing goods from suppliers in Phu Tho province

| Collect information and choose the most suitable

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changed to buy from suppliers from Phu Tho province, the exploitation source is

still sand, stone and gravel on the bank of the Da River in Phu Tho province, so in

terms of goods quality, there is not much difference between the providers The company's director - Mr Hung will prioritize which suppliers sell at a cheaper price, so the company's supplier will change whenever someone supplying cheaper raw goods appears The company also can have more than one supplier at the same time Finding suppliers will be responsible for Mr Hung, he mainly relies on his long-term experience and wide network to find suitable suppliers

2 Determine purchase quantity, prepare orders of purchasing goods : The quantity of goods the company needs can be determined according to customer requirements or company inventory needs When receiving purchase information from a customer or checking that the inventory is insufficient according to the company's inventory needs, the sales staff will create a purchase proposal to present to the manager for approval

3 Checking the goods and transferring to the warehouse: After receiving the goods, the warehouse staff will check whether the goods and the quantity are the one that the company needs If an error occurs, the item will be returned to the supplier for replenishment or exchange If there is no error, the goods will be delivered to the yard

4 Payment and save related documents: The accountant will finish the payment as the last step of the purchase process All related documents will be retained for 5 years

The figure 2 describes the process of selling construction materials for

directors and by word of mouth The fact that the company has open-pit sand, gravel, and stone storage is also a form of customer attraction There are two ways that the customer can order with the company The first is to speak directly to the director - Mr Hung if the two of them have a personal relationship, then Mr Hung will notify the sales department of this order The second option is that the customer will contact the company's sales department to place an order, set the date, time and the quantity of the item to be purchased This order will be notified to Mr Hung

2 Delivery of goods: After completing the order, the customer will hire a truck to pick up the goods according to the quantity and the scheduled time, the company is not in charge of delivering the goods to the customer Money will be paid in advance or on delivery by cash or bank transfer The goods delivery process is carried out under the supervision of the director, Mr Hung

3 Invoice of sales and related documents: The total payment amount will include the goods price and other factors under the value added tax law The accountant will end the payment as the last step of the selling process All related documents will be retained for 5 years

1.3 Organizational structure The figure 3 describes the organizational structure of the company

The Director

Administration and human

Business Department Accounting Department resources department

Business Department: The sales department is responsible for the purchase and sale of the company, here is sand, stone, gravel Including 2 employees, one is in charge of purchasing, the other is in charge of sales

The person in charge of the sale has a direct relationship between the company and the customers: processing the order, monitoring the goods when the customer comes to pick up the goods, all customer requests or complaints will be recognized and handled by her Currently the company does not have a website or social media account for marketing, but mainly relies on the relationship of the director, word of mouth and sometimes the company will go to construction works

under construction to distribute leaflets

The business department has a close relationship with the Accounting department In case of having to return goods to the supplier or customer wishing to return goods, the sales department will receive and solve the problem first, then the accounting department will work to make the appropriate adjustment

Accounting Department: Including 3 employees This department is responsible for all accounting duties including recording transactions, tracking the company's assets and liabilities,

Administration and human resources department: Including 2 employees One is the storekeeper and the other will support the sales department in recruiting workers to drive excavators, people to clean warehouses in shifts Some other duties of the administration department:

° Manage office equipment ° Keep the office clean and enJoyable to work ° Recruit new employees

° Planning for internal activities of the company: gifts for employees on holidays, organization of parties,

income

Current Ratio: In 2017, the company has just paid off short-term debts, so the CR is very high Then in 2018 the current ratio of the company's payment was

1.27, which was a good ratio However, in 2019 it dropped to 0.93, which was a

negative signal because current assets were less than current liabilities, the company's ability to pay short-term debt was deteriorating

Inventory Turnover: The inventory turnover ratio in 2017 was much lower than the other two years because the company did not sell much sand and gravel this year (it can be seen that revenue this year was particularly

low), and the inventory was much However, this ratio had improved

significantly in 2018 due to a large increase in revenue But it lagged behind

in 2019 This was because from 2018 to 2019, company revenue increased,

but in return, inventory was twice as much as last year, leading to an increase in the number of days needed to sell inventory In this case the company should have an appropriate marketing and sales plan to boost sales to quickly acquire back an ideal inventory turnover ratio

In general, for the period 2017 to 2019, the three ratios above showed that: the company were managing its assets ineffectively, the ability to pay short-term debt was getting worse, the number of days it takes to sell inventory was increasing Although there were some positive signs in 2018, in general, the financial situation in these 3 years of the company was not good

Return on assets 0.1% 0.32% -

Current ratio 0.94 1.27 1022.6

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Net revenue 7.978.988.093 5.011.261.131 73.88 1.820 Net income 5.768.908 6.716.502 (5.502.139) Total Asset 10.444.616.017 | 4.763.312.528 1.706.597.084 Total Liabilities 7.177.425.027 3.051.410.446 1.411.504 Current Asset 6.729.131.102 3.860.120.472 1.443.405.028 Current Liabilities | 7.177.425.027 3.051.410.446 1.411.504 Cost of goods sold | 7.118.301.738 4.842.625.612 70.886.104 Inventory 2.290.312.297 1.401.820.638 378.682.909

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CHAPTER 2 AN INTRODUCTION TO ACCOUNTING ORGANIZATION AND SYSTEM APPLIED IN HUNG DUNG ONE-MEMBER COMPANY

LIMITED

2.1 Structure of accounting organization The accounting department of the company includes 3 people: the chief accountant and two accountants The accounting system of the company is centralized Centralized accounting system is that system in which all records are kept in one place This place may be physical or digital It controls all departments and branches budgets, accounts receivables, account payable, expenditures,

incomes and other transactions’ records

The figure 4 describes the structure of accounting organization

Chief Accountant

Receivable and Payable Accountant Sales accountant

each account in detail

Receivable and Payable Accountant: One of the two accountants takes charge of this The person who is responsible for accounting for and tracking

Beside receivable, this person also is responsible for payable: The payable accountant is to maintain wonderful relationships with suppliers making sure that everyone gets paid on time This employee is also responsible for paying attention to opportunities to save money such as illustrating whether there are cash discounts or incentives could be acquired if the payment is made earlier or not Also the payable accountant has to make sure that there is no late payment which require late-payment interest is existing

Sales accountant: The other accountant is responsible for receive and process all orders from the sales department: check inventory, track progress and delivery ability of orders, check and control selling price, sales mechanism, promotion policy in accordance with company regulations, control and monitor payment mechanism, commission for customers by each customer in each project, review and control the debt limitation of the customer and the debt term of the client as compared with the provisions in the economic contract, directly involved in inventories, finished products, at factories, and warehouses

2.2 Features of Accounting System 2.2.1 General Accounting Policies

Currently the company is adopting Circular 133/2016/TT_BTC approved by the Ministry of Finance for small and medium enterprises

The currency used in Hung Dung company is Viet Nam Dong (VND) A financial year in Hung Dung would usually start on the Ist January and

end on 31st December The financial statements are finished and handed out to the director - Mr

Hung There is no financial statement made monthly or quarterly

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The Value-Added Tax calculation method now applied in Hung Dung company is the deductible method Hung Dung fully observes Vietnamese regulations on accounting, invoices and documents as prescribed by the relevant laws and register to pay tax according to the deductible method The VAT deductible method is specified as follows:

Payable VAT amount = Output VAT amount — Creditable input VAT amount

Fixed assets depreciation method used in Hung Dung is the straight-line method This is the depreciation method that the company has chosen, informed the tax agency directly managing it and has been consistently implemented by the company throughout the use of fixed assets This method is easy to calculate and keep track, it is also easy for the manager to re-check if he needs

2.2.2 Features of Accounting Documents ° Accounting documents management The company records transactions by computer, using an accounting software named "Phan mem ke toan song Da" and designed according to the principle of common journal form The fiscal year starts on 01/01 / N and ends on 31/12 /N

According to Article 40 of the Accounting Law, accounting documents which are stored must be originals and must be archived within twelve months after the end of the annual accounting period or the end of accounting works

In addition, if according to the law, companies must store accounting

documents in many different ways However, due to the size, characteristics of

business operations and requests from managers, Hung Dung Company only stores documents for 5 years: Accounting records used for the daily management and administration of accounting units that are not used specifically for the reporting of accounting books and the preparation of financial statements are not kept in the accounting department's voucher collection for at least 5 years from the end of the accounting period such as receipt, transaction slips, warehousing notes and delivery notes

For example, when an order from customer arises, based on a contract, the accountant willwill make a request for goods dispatch to the storekeeper to carry out the goods dispatch procedures At the same time, the accountant proceeds to

2.2.3 Features of Chart of Accounts The Company applies the registered account map according to Circular 133/2016 / TT-BTC dated August 26, 2016 of the Ministry of Finance guiding the Corporate Accounting System effective from 01/01/2017

Accounts are used to classify and systemize economic and financial transactions according to their economical content Like other small companies, Hung Dung company uses most of the accounts listed according to the Ministry of

Finance's Circular no 133

The system of accounting accounts for small and medium-sized enterprises includes level | accounts, level 2 accounts, accounts in the Balance Sheet and accounts outside the Balance Sheet as prescribed in this accounting regime There are only some of the following changes:

- The company does not use the following accounts: account 121_

Trading securities, account 128_ Held-to-maturity investments, account 155 _ Finished products, account 157_ Goods sent for sale, account 228_ Investments in

equity in other entities, - The company does not use off-balance-sheet accounts, reserve accounts such as provision for diminution in value of trading securities, provision for impairment of investments in other entities, provisions for doubtful debts,

- The following accounts are used at level 1, not detailed: account

152_Materials, account 154_Cost of production and business in progress, account 156_ Goods, account 334_ Payable to employees

Normally, in order for the accounting work to be done quickly and accurately, the company details the accounts in accordance with the organizational characteristics of management and construction activities of the organization However, due to the characteristics of Hung Dung's business activities are very simple: providing construction materials (sand, stone, gravel) for people in Hoa Binh province to repair or build houses Therefore, basically, the company

154 Production and business in progress 156 Goods

211 Fixed assets 2111 Tangible fixed assets 214 Depreciation of fixed assets 2141 Depreciation of tangible fixed assets 242 Prepaid expenses

333 Taxes and other payables to the State 3331 Value added tax payable

33311 Output VAT 3334 Corporate income tax 3338 Environmental protection tax and other taxes 33382 Other taxes

334 Payables to workers 411 Owner's invested capital 4111 Owner's invested capital 421 Undistributed after-tax profit

911 Determination of business results

2.24 Features of Accounting Books Accounting book form is a way of combining different types of accounting

books in a certain order

The selection of an appropriate accounting book form must be based on the

size, structure of assets, capital sources and characteristics of the business process

of the enterprise, accounting qualifications and information requirements for the manager and facilities, technical equipment for management and accounting Hung Dung Company has chosen accounting books in the form of general diary, which is an accounting book format suitable to the company's conditions and favorable for accounting software The fiscal year starts on 01/01/N and ends on 31/12 /N

Figure 2: Accounting record work flow

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Accounting books in use at Hung Dung company: general ledger and detailed ledger of accounts according to the account balance sheet The act of recording books from documents to detailed ledger is done by the accountant in charge Every day, accountants shall rely on accounting documents or the general sheet of checked accounting documents of the same sort to be used as a basis for entering and assessing data entry debit and credit accounts, accessing the computer according to the tables given by the accounting software Then, through the software, the data is exported according to the detailed ledger of the accounts, synthesized into a general ledger, finally the computer will give the financial statements that the accountant needs Due to the application of computerized accounting, the most important step is to input data into the computer through accounting software Immediately after entering data, accountants can get general ledger, detailed ledger or financial statements that they need However, every month, there are regulations on checking and comparing books Data is automatically entered into general accounting books (Ledger) and _ related accounting books and vouchers according to the accounting software system Accountants perform closing operations (book addition) at the end of the year (or any time necessary) and prepare financial statements The comparison between aggregate data and detailed data is done automatically, ensuring consistency, truthfulness, and consistency with the data entered at the time After printing on paper, accountants can check and compare statistics between accounting books and financial statements Take the required actions to print the financial statements Year-end general accounting books and detailed accounting books are printed out on paper, bound into books and followed legal procedures according to regulations on manual accounting books

2.2.5 Features of Accounting Reports Hung Dung Company only has financial statements, no_ internal management accounting reports

Financial statements are prepared at the end of every year This type of report would then be handed out to the managers and the owners of the company - Mr Hung The company's financial statements are prepared in the computer-based accounting system that is currently used in the company and would be printed in papers at the end of each fiscal year

A fiscal year of the company would be started on 01/01 / N and ended on 31/12 / N The financial statements are:

17 - Balance Sheet

- Income Statement - Trial Balance

Normally a Vietnamese corporate needs to prepare a Balance Sheet, Income Statement, Cash Flow and Notes to Financial Statement However, there are no Cash Flow included in the Hung Dung company’s financial statements as the director does not require the accounting department to do this type of report Cash flow statements are only prepared when the company works with the bank, but when filed on the tax system, this type of report is not required

2.3 Features of some key accounting cycles in Hung Dung one-member company limited

2.3.1 Accounting for inventory 2.3.1.1 Feature of inventory in the company Being a construction business, Hung Dung Hung Dung one-member company limited uses a large amount of materials related to the construction

industry: sand, stone, gravel

- The process of purchasing inventory: The inventory is acquired from a variety of suppliers, most of which come from mining companies or self-exploiting households Goods are transported to and collected at the warehouse, so preservation should be careful, avoiding the loss that affects the process of construction and cost When a customer orders and comes to pick up goods, they are issued to be sold Warehouses are guarded and managed by warehouse keepers Storekeepers will manage the inflow and outflow of inventory through the recording of warehouse cards

- For management of inflow of inventory: Based on the order of customers, the business department purchase inventory; and when inventory is transported to the warehouse, persons in charge will conduct input inventory procedure

- For management of outflow of goods: Based on the number of purchase orders from customers, the person in charge of the sale shall make a written request for supply goods Then, goods will