graduation thesis accounting for revenue and evaluating business results at catel company limited

3.1 The principle for improving Accounting system in Catel Company Limited ...105 3.2 Some suggestions for improvement of accounting for revenue and business result in Catel Company Limi

ACCOUNTING FOR REVENUE AND EVALUATING BUSINESS RESULTS AT

CATEL COMPANY LIMITED

HA NOI – 2021

I hereby declare that this thesis is my own work and effort and that has notbeen submitted anywhere for any award Where other sources of information havebeen used, they have been acknowledged.

The data and results described in the thesis are derived from the actualsituation of the practice company

Hanoi, 2021

Student

Le Minh Khoi

2

DECLARATION 2

CHAPTER 1: GENERAL THEORY ON ACCOUNTING FOR REVENUE AND BUSINESS RESULT IN ENTERPRISES 10

1.1 Importance of accounting for revenue and business result in a

commercial company 10

1.1.1 Definition of revenue and business results 10

1.1.2 Classification of revenue 10

1.1.3 Characteristics and importance of revenue and business result 11

1.2 Accounting for revenue and business result in a commercial company 11 1.2.1 Methods of sales and payment 11

1.2.2 Accounting for revenue in commercial companies 13

1.2.3 Accounting for revenue deduction 18

1.2.4 Accounting for cost of goods sold 21

1.2.5 Accounting for selling expenses and administrative expenses 28

1.2.6 Accounting for financial income and financial expenses 34

1.2.7 Accounting for other income and other expenses 40

1.2.8 Accounting for corporate income tax 45

1.2.9 Accounting for business result 48

1.3 Accounting for revenue and business result in application with

accounting software 51

1.4 Presentation on F.S 53

1.4.1Presentation Acc 511 on financial statement 53

1.4.2Presentation Acc 632 on financial statement 53

1.4.3Presentation Acc 642 on financial statement 54

1.4.4Presentation Acc 515 and Acc 635 on financial statement 54

1.4.5Presentation Acc 711 and Acc 811 on financial statement 54

1.4.6Presentation Acc 821 on financial statement 55

Conclude of Chapter 1: GENERAL THEORY ON ACCOUNTING FOR

REVENUE AND BUSINESS RESULT 55

CHAPTER 2: ACCOUNTING FOR REVENUE AND BUSINESS RESULT IN

CATEL COMPANY LIMITED 2.1 Overview about Catel Company Limited 57

2.1.1 Introduction of The Establishment and development of Catel Company Limited .57

2.1.2 Organizations in Catel Company Limited 60

2.1.3 Accounting organization in Catel Company Limited 61

2.2 Accounting for revenue and business result in Catel Company Limited 67

2.2.1 Accounting for revenue 67

2.2.2 Accounting for cost of goods sold 78

2.2.3 Accounting for selling and administrative expenses 83

2.2.4 Accounting for financial income 90

2.2.5 Accounting for Financial expenses 94

2.2.6 Accounting for other income and other expense 95

2.2.7 Accounting for corporate income tax 95

In which: 95

2.2.8 Accounting for business results 96

2.2.9 Presentation on Financial Statement 99

2.3.1 Some evaluations of Accounting system in Catel Company Limited 102

2.3.2 Strengths 102

2.3.3 Weakness 103

Conclude of Chapter 2: ACCOUNTING FOR REVENUE ANDBUSINESS RESULT IN CATEL COMPANY LIMITED

104 CHAPTER 3: SOME COMMENTS AND SUGGESTIONS ON ACCOUNTING FOR REVENUE AND BUSINESS RESULT IN CATEL COMPANY LIMITED 105

3.1 The principle for improving Accounting system in Catel Company Limited 105

3.2 Some suggestions for improvement of accounting for revenue and business result in Catel Company Limited 106

3.3 Requirements for improving Accounting system in Catel Company Limited 107 CONCLUDE 108

LIST OF ABBREVIATIONS

VAS Vietnam accounting standard

VAT Value – added tax

C/O Certificate of origin

C/I Certificate of Inspection

PKC “Phieu ket chuyen” – Transfer notes

CIT

1 Rationale of choosing the topic

Along with the development of the world economy, in order to survive and develop,businesses must conduct production and business activities effectively but the finaleffect must be reflected through the target of total profit from business operationsand its rate To achieve the above purpose, the sales revenue must be greater thanthe expense (including cost of goods sold, cost of sale, and management expense)

So, sales revenue and sales results are two sides of a problem, they have aproportional relationship with each other in which revenue is the prerequisite andfinal decision of the business In business activities, in addition to purchasinginputs, producing or purchasing to create products, enterprises must sell to collectmoney to create their revenue This is an important part of the enterprise's survival

In order to catch this part, students should have an understanding of the process oforganizing accounting activities in small and medium-sized enterprises, how todetermine revenues, expenses and production and business results of each type.From the importance of the above issue, through the internship period CatelCompany Limited, with the help of the Board of Management, Finance -Accounting Department, together the careful guidance of MSC Pham Phuong Anh,

I would like to do a research about the topic: “Revenue- expenses and determiningbusiness results at Catel Company Limited”

2 Aims of the study

Through studying this topic, we can evaluate the organization, revenuemanagement, expenses, and business results of enterprises in services enterprises ingeneral and Catel Company Limited in particular and consider the implementation

of the accounting system of the enterprise Is that accounting system different fromwhat we were learned in university? Thereby, the advantages and disadvantages ofthe accounting system can be drawn, and some recommendations are proposed to

contribute to the improvement of the accounting system in determining business results for the enterprise.

3 The subject and scope of the study

Accounting for revenue, expenses, and business results from the perspective of financial accounting at Catel Company Limited in 2021

- Scope of the study: Catel Company Limited

- Scope of time: the year 2021

- Scope of figures: the year 2021

4 Research methods

To complete this thesis, I used the following research methods:

-Research and reference materials: Read, refer to the curriculum compiled byteachers, books, good essays of senior students at the university library to have abasis for the research topic

- Interview method: I applied this method during the internship period It helps meanswer questions and have a better understanding of accounting work at thecompany It also helps me to gain practical experience for myself

- Data collection and processing method: Applied to collect company data, then alldata will be processed and selected to put into the thesis accurately, scientifically,giving readers the most effective information

- Statistical method: Based on statistics to analyze, compare and contrast from it topoint out the points and disadvantages in the business in order to find out the causesand solutions, therefore apply remedies to the company in general and theaccounting work, determine business results in particular

Structure of thesis

The content of the thesis consists of 3 chapters:

Chapter I: General theory of accounting for revenue, expenses and business results

in enterprises

Chapter II: Practical situation of accounting for revenue, expenses and business

results at Catel Company Limited

Chapter III: Solutions to improve accounting for revenue, expenses and business

results at Catel Company Limited

Due to limited time and ability, my writing could not avoid mistakes I look forward

to receiving the reviews, comments and direct advice from MSC Pham PhuongAnh, other teachers in Accounting Department, my mentors and my friends toimprove my writing

Thank you sincerely!

CHAPTER 1: GENERAL THEORY ON ACCOUNTING FOR

REVENUE AND BUSINESS RESULT IN ENTERPRISES

1.1

Importance of accounting for revenue and business result in a

commercial company

1.1.1 Definition of revenue and business results

Income is defined in the Framework for the Preparation and Presentation ofFinancial Statements (also defined in the VAS01- the general standard) as increases

in economic benefits during the accounting period in the form of inflows orenhancements of assets or decreases of liabilities that result in increases in equity,other than those relating to contributions from equity participants Incomeencompasses both revenue and gains Revenue is income that arises in the course ofordinary activities of an entity and is referred to by a variety of different namesincluding sales, service delivery fees, interest, dividends, and royalties:

(a) Sales: Sales of products made by the enterprise and sale of purchased goods;(b) Service delivery: Performance of the agreed contractual work in one or more accounting periods;

(c) Interests, royalties, dividends, and shared profits

Revenue is the gross inflow of economic benefits during the period arising in thecourse of the ordinary activities of an entity when those inflows result in increases

in equity, other than increases relating to contributions from equity participants.(VAS 14 - Revenue and other incomes)

Revenue is recognized when it is probable that future economic benefits will flow tothe entity and these benefits can be measured reliably

1.1.2 Classification of revenue

Revenue is the income a company receives as a result of its business activities, typically through the sale of goods or services, rents, and other sources

Revenues can be classified as operating revenue and non-operating revenue

- Operating revenues are those that originate from main business operation, called

“Revenue from selling goods and services”

- Non-operating revenues are earned from some side activity, including incomefrom financial activities and other income.

• Income from financial activities included: interest, rental income, income fromsecurities investment and trading activities, income from transfer or lease ofinfrastructure, interest difference due to the sale of foreign currencies, interest ratedifference,…

• Other income is the revenue from unusual activities that does occur often:liquidation of fixed assets, bad debts written off have now been recovered, reversingprovision for devaluation of inventories,…

1.1.3 Characteristics and importance of revenue and business result

Revenue is the most fundamental metric for any company, a crucial part of financialstatement analysis Revenue is known as the top line because it appears first on acompany's income statement Net income, also known as the bottom line, isrevenues minus expenses There is a profit when revenues exceed expenses Toincrease profit, and hence earnings per share for its shareholders, a companyincreases revenues and/or reduces expenses Investors often consider a company'srevenue and net income separately to determine the health of a business

Besides, if carried out effectively, these above professions will put a handinto increasing the accounting productivity in general Thanks to that, accountinginformation will be helpful for directors and managers in making sound decisions,which will raise the business profitability

a) Direct sales

Direct sales is the method of delivery to the buyer directly at the warehouse

of the enterprise Goods when delivered to customers must be paid or agreed to pay.After this package of goods is brought out of stock, the seller company will lose theownership power of such goods This method includes wholesales and retail sales.Wholesale:

Wholesale of goods is a form of sale to commercial units, productionenterprises The characteristics of wholesale goods are that the goods are still inthe field of circulation, not yet entered the consumer sector Therefore, the value anduse value of the goods have not been realized Wholesale goods are usually sold inbatches or sold in bulk Selling price fluctuates depending on the quantity of goodssold and the payment method In wholesale usually includes two methods:

- The method of wholesale goods through the warehouse: Wholesale of goodsthrough the warehouse is the method of wholesaling goods in which the sold goodsmust be exported from the storage of the enterprise

- Direct shipping wholesale method: According to this method, the commercialenterprise, after purchasing the goods, receives the purchased goods, does not bring

it to the warehouse but sells it directly to the buyer

Retail sale:

Retail is a method of selling directly to consumers and economic organizations

of the nature of consumption Retailers usually sell in small volumes, changeaccording to customers' requirements, with stable selling prices Other methods:Sales through agents, consignment Sales with deferred payment, installmentpayment,

b) Sales through agents (Consignment sales)

It is the method of delivery through the channel of agents Different from direct sales, after the package of goods is brought out of stock, it still belongs to thecompany and is not considered to be in consumption phase The company only

records sales revenue when the agent reports to sell such goods When goods are sold, the company must pay commissions for the agent which is considered as a

selling expense.

Sales of goods on consignment for agents are recorded as sales revenue onlywhen:

- The company has received money payment from the customers;

- The customer has received his package of goods and agrees to pay;

- The customer has advanced the amount of purchase payment of the

package of goods;

- The package of goods on consignment is paid via bank

1.2.2 Accounting for revenue in commercial companies

1.2.2.1 Supporting documents

Organization of accounting vouchers:

Accounting with the function of helping business owners in organizingaccounting and statistics to provide sufficient and timely information on economic-financial activities of the business Therefore, it is necessary to organize salesaccounting and determine the sales results in accordance with the currentaccounting regime The chief accountant should guide the accountants in usinginvoices and documents, including:

- Other relevant documents

- Credit notices of banks

- Account 5112 - Sales of semi-finished products: This account is used to recordrevenue and net revenue of product quantities (finished products, semifinishedproducts) determined to be sold in an accounting period of the enterprise Thisaccount is mainly used for material production industries such as industry,agriculture, construction, fishery, forestry,

- Account 5113 - Service provision turnover: This account is used to reflect theturnover and net turnover of the completed service volume, provided to customersand is determined to be sold in a period This account is mainly used for servicessuch as transportation, post office, tourism, public services, scientific and technicalservices, accounting and auditing services, etc

- Account 5118 - Other revenues: This account is used to reflect the turnover from

sale, liquidation of investment properties, subsidies and subsidies of the State…

Diagram 1.1: Order of accounting for sales revenue

Account 511

- Indirect taxes payable (VAT, special

consumption, export, and environmental

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 911account "Determination of businessresults"

- Sales of products, goods,investment properties and serviceprovision of the enterprise in theaccounting period

Revenue closing entry Sales

revenue

Acc 3331

Output VAT

1.2.2.3 Method of accounting for several major transactions

Diagram 1.1: Order of accounting for sales

revenue

(1) Dividends and interests in the period divided to the enterprise after the first day

(2) Assigning and recovering financial investments

(3) Securities conversion

(4) Settlement discount received

(5) Selling foreign currencies

(6) Interest on selling investments

(7) Gradual allocation of interest due to sales on deferred or interest payments(8) Exchange rate gains due to the revaluation of foreign currency balances at theend of the period

(9) Transfer of financial income to determine results

Acc (5a)

(10b)

(10a)

Diagram 1.9: Chart of Account 635

(8b)Acc 152, 156, 211, 242(8a)

(1) Refund the difference of provision for devaluation of securities investment and loss of investment in other entities

(2) Handling exchange rate losses due to revaluation of end-of-year foreign currency items into financial expenses

(3) Making provision for devaluation of securities and provision for loss of investments in other entities

(4) Loss of selling investments

(5a) Investment proceeds from investments

(5b) Cost of sale of investments

(6) Settlement discount allowed for buyers

(7) Loan interest payable, distribution of interest on deferred or installment payment

(8) Foreign currency selling profits (8a), losses (8b)

(9a) Buy goods and services in foreign currency

(9b) Exchange rate loss

(10a) Payment of debts in foreign currency

(10b) Exchange rate loss

(11) Transfer of financial income to determine results

1.2.7 Accounting for other income and other expenses

Other income is income other than sale income of the enterprise arising in the

accounting period

- Income from sale or liquidation of fixed assets;

- The difference between the fair value of the assets divided from the BCC is higherthan the cost of the construction of the jointly controlled asset;

- Interest difference due to reassessment of materials, goods and fixed assetscontributed as capital to joint ventures, investments in associates, and other long-term investments;

- Income from property sale and leaseback operations;

- Taxes payable when selling goods or providing services but are later reduced orrefunded (refunded export duties, VAT, special consumption tax, and environmentalprotection are payable but then are reduced)

- Collecting fines for breaches of the contract by the customer;

- Collecting third party indemnities to compensate for lost assets (for example,insurance indemnities, business relocation compensation and similar amounts);

- Collection of bad debts which have been written off;

- Collection of payable debts with unidentified owners;

- Bonuses of customers related to the sale of goods, products and services are notincluded in the revenue (if any);

- Incomes from gifts and gifts in cash or in kind given to enterprises byorganizations and individuals;

- Value of promotional goods not returned;

- Other incomes other than the above

Other expenses incurred due to events or operations separate from normal activities

of the enterprise Other business expenses may include:

- Expenses for liquidation, sale of fixed assets (including costs of bidding forliquidation activities) The proceeds from the sale of bidding documents on theliquidation or sale of fixed assets shall be recorded as a decrease in the cost of theliquidation or sale of the fixed asset;

- The difference between the fair value of the assets divided from the BCC issmaller than the cost of construction of the jointly controlled asset;

- Residual value of the fixed asset broken down;

- Residual value of fixed assets liquidated or sold (if any);

- Loss difference due to reassessment of materials, goods, fixed assets contributed

as capital to subsidiaries, joint ventures, investments in associates, other long-terminvestments;

- Fines payable for breaching economic contracts, administrative fines;

- Other expenses

1.2.7.1 Document accounting used

Acc 711 – Other income

- At the end of the accounting period,

transfer other income arising in the period

to 911 account "Determination of business

results"

- Other income earned in the period

Accounting principles of Account 811 - Other expenses reflects expenses incurred due to events or operations separate from normal activities of the enterprise

Acc 811 – Other expense

- Other expenses incurred - At the end of the period, transfer all

other expenses incurred in the period

to 911 account "Determination ofbusiness results"

(3)

1.2.7.3 Method of accounting for several major transactions

Diagram 1.10: Chart of Account 711

(1) Income from sale, liquidation of fixed assets;

(2) Collecting penalties for customers who breach contracts

(3) Receiving grants, donating materials, goods and fixed assets

(4) Taking into account other income liabilities cannot be determined

(5) Reduced import and export taxes, excise taxes, and environmental protection taxes

(6) Transfer other income into account 911

(2)

(4)

(5)

Diagram 1.11: Chart of Account 811

Acc 211

Acc 111, 112, 333, 338

(1): Expenses incurred during the process of liquidation or sale of fixedassets; other expenses such as expenses for dealing with losses caused by businessrisks,

(2): The residual value of fixed assets that are liquidated or sold

(3): Fines for violating economic contracts; Fines, tax arrears

(4): At the end of the period, closing entry from Acc 811 to Acc 911

1.2.8 Accounting for corporate income tax

Corporate income tax expenses includes current income tax and deferred income taxexpenses incurred during year

- Current corporate income tax expenses are corporate income taxes payablescomputed on taxable income during the fiscal year, and current business income taxrate

- Deferred business income tax expenses are business income taxes payables in thefuture, incurred from:

+ Recording deferred income tax payables in year;

+ Returning deferred business income tax expenses which were recorded

in previous years

(4)

(2)

(3)

- Revenues from deferred income tax are decrease recording deferred corprate income tax incurred from:

+ Recording deferred income tax assets during year;

+ Returning of deferred income tax payables recorded in previous years.How to determine current CIT expenses:

Payable corporate income tax = Taxable income x Current tax rate

1.2.8.1 Document accounting used

- Payment slip, Tax declaration, Tax receipts

1.2.8.2 Accounting Used

Acc 821 – Income tax expense This account has two level-two accounts:Acc 8211 – Current tax expense

Acc 8212 – Deferred tax expense

Other related accounts: Acc 3334, Acc 243, Acc 374,

Acc 821 – CIT

- Corporate income tax expenses incurred

in the year;

- The corporate income tax of the

previous years, which must be

additionally paid because of detecting

non-material errors of the previous years,

is recorded as an increase in the corporate

income tax expense of the current year

- The actual amount of corporateincome tax payable in the year issmaller than the amount of provisionalcorporate income tax to be deductedfrom the enterprise income tax expenserecorded in the year;

- The payable corporate income taxamount to be reduced shall be recorded

as a decrease in material errors of theprevious years, and the corporateincome tax expense shall be recorded

as a decrease in the current year;

- Transfer the difference between theincome tax expense arising in the yeargreater than the amount recorded toreduce the income tax expense of theyear into account 911 - "IncomeSummary"

(4) (2)

1.2.8.3 Method of accounting for Corporate income tax

Diagram 1.12: Chart of Account 821 Acc 111, 112 Acc 3334 Acc 821 Acc 911

(1) The amount of corporate income tax in the period is determined by the enterprise

(2) Transfer of corporate income tax costs

(3) The difference between the temporarily paid corporate income tax is larger than the amount of corporate income tax payable

(4) Do payment of Corporate income taxes

1.2.9 Accounting for business result

Orders of recording accounting books according to computerized accounting form:

(1) Everyday, based on accounting vouchers or the summary sheet of accounting vouchers of the same type that has been checked, used as a basis for book entry, determining the debit account, the credit account to input data into the computer calculated according to pre-designed tables and tables on accounting software According to the process of accounting software, information is automatically entered into general accounting books (ledger, general diary ) And related detailed accounting books and cards

(3)(1)

(2) At the end of the accounting period, make allocation and carryover entries Thecomparison of aggregate data with detailed data is done automatically and alwaysensures accuracy and truthfulness according to information entered during theperiod Accountants can check and compare figures between accounting books andfinancial statements after printing them out.

Perform operations to view and print books of financial statements, managementreports according to the request of providing information from all levels of businessmanagement

At the end of the month and year, general accounting books and detailed accountingbooks are printed out on paper, bound to the holy book and followed legalprocedures in accordance with regulations on manual accounting books

* Business results determination formula:

+ Before taxes (1):

(1) = (2) - (3) + (4) - (5) - (6) - (7) + (8) - (9)

Therein:

(2) – Net revenue from sales and services rendered

(3) – Cost of goods sold

handle accounting software on the computer

-Account ledger

-General accounting book

- Financial Statement

1.2.9.1 Document accounting used

+ Acc 911 – Income Summary Acc 911 used to determine and reflect the results ofbusiness operations and other activities of the enterprise in an annual accountingperiod

+ Acc 421 – Undistributed profit Acc 421 reflect business results, distribution andhandling of business results of enterprises

+ Other related accounts: Acc 511, Acc 632, Acc 6421, Acc 6422,

1.2.9.2 Accounting used

Account 911- Income summary is used to determine and reflect the results of

business operations and other activities of the enterprise in an accounting period

Acc 911 – Income summary

- Cost of capital of products, goods,

investment properties and services sold;

- Financial expenses, corporate income tax

and other expenses;

- Selling and administrative expenses;

- Interest transfer

- Net sales of products, goods, investment properties and services sold during the period;

- Revenue from financial activities, other income and deduction of corporate income tax;

- Carry-forward of losses

1.2.9.3 Method of accounting for Income summary

Diagram 1.13: Chart of Account 911 Acc 632, 642, 635 Acc 911 Acc 511, 515

(1) Transfer of cost of goods sold, financial expenses, business management costsand other costs

(2) Transfer of enterprise income costs

(3) Transfer revenue, financial revenue and other income

(4) Loss of business operation losses in the period

(5) Transfer of profits from business activities in the period

(5)

(4)(2)

Acc 421Acc 821

(3)(1)

For sales accounting and determining sales results, the use of software isextremely important The accounting software for this part has the followingutilities:

- Helping to account for sales and determine sales results conveniently, quickly,information is processed promptly

- Software can calculate cost price relatively accurately, in addition solve a largeamount of calculations

- Cost of goods sold, revenue as well as information to determine sales results arestored fully and securely because users can set passwords for accountinginformation to use

* Work execution process

Step 1: Organize the encryption of legal objects

Step 2: Organize the accounting voucher system in accordance with the conditions for performing accounting on the computer

Step 3: Organize the accounting account system

Step 4: Select and apply an accounting form

Specifically, with sales accounting and determining sales results, we have the sales accounting information processing process and determine the results as follows:(1) Everyday, the accountant is based on the checked accounting documents or thesummary sheet of the same documents, used as a basis for book entry, determiningthe debit account, the credit account to enter data entered into the computeraccording to the pre-designed tables on accounting software

According to the accounting software's process, the information is automaticallyupdated in general accounting books, ledgers, diaries and related accountingbooks and cards

(2) At the end of the month (or any other time necessary), the accountant performscarryover entries to determine whether the sales result is a profit or loss in theaccounting period, distributing the results to provide information for the objectsusing information The comparison between the aggregate data and the detailed data

is done automatically and always ensures the accuracy and truthfulness of theinformation entered in the period Accountants can check and compare accountingbooks with financial statements after they have been printed out, bound in booksand carried out legal procedures in accordance with the manual accounting books.

1.4

Presentation on F.S

1.4.1 Presentation Acc 511 on financial statement

- The presentation of accounting for revenue is showing on in code 01: Revenuefrom sale of goods and rendering services

- To prepare the “ Revenue from sale of goods and rendering services” for a fiscalyear, accountants base on the following data: Previous year’s income statement;Data on accounting books of account 511

- Accountants base on the actual revenue earned in the period of the revenue toprepare the “Revenue from sale of goods and rendering services” in the column

“Current year”- This amount is the one to be transferred from account 511 to ac 911

at the end of period In the column “Previous years”, accountants base on theprevious year’s income statement

1.4.2 Presentation Acc 632 on financial statement

- The presentation of accounting for revenue is showing on in code 11: Cost ofgoods sold and services rendered

- To prepare the “Cost of goods sold and rendering of services” for a fiscal year,accountants base on the following data: Previous year’s income statement; Data onaccounting books of account 632

- Based on the accumulated cost of goods sold in the period to be transferred to Ac

911, accountants prepare the “Cost of goods sold and rendering of services” in thecolumn “Current year” In the column “Previous years”, accountants base on theprevious year’s income statement

1.4.3 Presentation Acc 642 on financial statement

- The presentation of accounting for revenue is showing on in code 24: Generaladministration expenses

- To prepare the “Selling expenses and General and administrative expenses” for afiscal year, accountants bas on the following data: Previous year’s incomestatement; Data on accounting books of account 642

- Accountants base on the accumulated credit data of the selling expenses andadministrate expenses to prepare the “Selling expenses and General andadministrative expenses” in the column “Current year” In the column “Previousyears”, accountants base on the previous year’s income statement

1.4.4 Presentation Acc 515 and Acc 635 on financial statement

- The presentation of accounting for revenue is showing on in code 21: Income fromfinancial activities and code 22: Expenses from financial activities

- To prepare the “Income from financial activities and Expenses from financialactivities” for a fiscal year, accountants bas on the following data: Previous year’sincome statement; Data on accounting books of account 515 and account 635

- Accountants base on the accumulated credit (account book 635) or debit (accountbook 515) data of the financial income and financial expenses to prepare the

“Income from financial activities” and “Expenses from financial activities” in thecolumn “Current year” In the column “Previous years”, accountants base on theprevious year’s income statement

1.4.5 Presentation Acc 711 and Acc 811 on financial statement

- The presentation of accounting for revenue is showing on in code 31: Otherincome and code 32: Other expenses

- To prepare the “Other income and other expenses” for a fiscal year, accountantsbase on the following data: Previous year’s income statement; Data on accountingbooks of account 811, 711

- Accountants base on the accumulated credit (account book 811) or debit (accountbook 711) data of the revenue to other income and other expenses the “Otherincome and Other expenses” in the column “Current year” In the column “Previousyears”, accountants base on the previous year’s income statement

1.4.6 Presentation Acc 821 on financial statement

- The presentation of accounting for revenue is showing on in code 51: Currententerprise income tax expense

- To prepare the “Current enterprise income tax expense” for a fiscal year,accountants base on the following data: Previous year’s income statement; Data onaccounting books of account 821

- Accountants base on the accumulated credit or debit data of the corporate incometax to prepare the “Current business incomes tax expense” and “Deferred businessincomes tax expense” in the column “Current year” In the column “Previousyears”, accountants base on the previous year’s income statement

1.4.7 Presentation Acc 511 on financial statement

- The presentation of accounting for revenue is showing on in code 02: Deduction

- To prepare the “Deduction” for a fiscal year, accountants based on the following data: Previous year’s income statement; Data on accounting books of account 511

- Accountants base on the accumulated data which is arising in the debit of account

511 in this period to prepare the column “Current years” In the column “Previousyears”, accountants base on the previous year’s income statement

Conclude of Chapter 1: GENERAL THEORY ON ACCOUNTING FOR REVENUE AND BUSINESS RESULT

Through the process of learning the general theory of sales accounting anddetermining sales results in commercial enterprises based on the current Circular200/2014 / TT-BTC issued by the Ministry of Finance on December 22, 2014,prescribing the latest corporate accounting regime, guiding accounting for theapplication of corporate accounting regime to their own enterprises, readersunderstand the theoretical basis of sales and determine business results incommercial enterprises From there, readers see the importance of sales accountingand determine business results for the business To achieve high profits and afoothold in the market, businesses must define themselves a right path, a clear plan,and carefully calculate the costs Sales accounting and determining business resultsmust be organized scientifically, reasonably and in organized with the company'sstructure This is essential and meaningful in providing timely and accurateeconomic information

Above, I presented the general theory of sales accounting and determiningsales results in a commercial enterprise, next I will present the current situation ofaccounting of nevenue and evaluating business results at Catel Company Limited.

CHAPTER 2: ACCOUNTING FOR REVENUE AND BUSINESS RESULT IN CATEL LIMITED COMPANY

2.1 Overview about Catel Limited Company

2.1.1 Introduction of The Establishment and development of Catel Limited Company

Some information about Catel Limited Company

Company name: Catel Limited Company

Head office: 3 Nguyen Bieu, Quan Thanh, Ba Đinh, Ha Noi

Tax code: 0106105757

Phone: 024 6267 3838

Type of Company Limited liability:

Website : Catel.vn

The Establishment and development of Catel Limited Company

Catel Co., Ltd was established in 2013, specializes in importing and distributing allkinds of computers, batteries, and office equipment

Creativity and patience are the business philosophy of Catel Co., Ltd Thisphilosophy is applied to all members of the Company and is a guideline for alldealings with customers, partners, the environment, and society The company arealways consistent with the set goals, dynamic and creative in every action and job toachieve those goals, which is practiced continuously throughout the production andbusiness process of the Co., Ltd Catel Patiently build and develop long-termrelationships with customers and partners That belief has helped the company tohave a custom system in most provinces Through work, those relationships havebecome close, creating a cultural value that helps to have joy and motivation togrow business Our creative activities are geared towards human development andenvironmental protection Avoiding waste, building order from the smallestprocesses in all aspects of business activities, thereby providing customers with thebest services and the most convenience during the cooperation process

Each member of Catel Co., Ltd welcomes customers to join and cooperate for along time in order to unleash creativity, develop business and create new culturesthat contribute more value to the community and social

2.1.2.1 Organizations in Catel Limited Company

2.1.2.2 The main activities of Catel Limited Company

Wholesale and retail : stationery, books, newspapers, magazines and

stationery in specialized stores

Wholesale and retail of computers, peripherals and software

Wholesale retail of electronic and telecommunications equipment and components, office machinery, equipment and spare parts

Repair of electrical equipment, electronic and optical equipment

Wholesale and retail household goods ( detail : suitcases, briefcases, bags, wallets, leather and other imitation leather goods; electrical household appliances, lamps and electric luminaires; beds, cabinets, tables, chairs and similar furniture

Wholesale and retail grocery goods : food, foodstuffs, beverages, tobacco in specializedstores

Rental of machinery, equipment and other tangible goods

Provision of motor vehicle rental and reservation services and support services related

to tourism organization and promotion

2.1.2.3 Organizational structure

2.1.2 Accounting organization in Catel Limited Company :

2.1.3.1 Organization of the accounting department

2.1.3.2 Accounting policies are applied at the company

✓ The annual accounting period starts from January 1 to December 31

✓ Accounting currency: VND

✓ Applied accounting regime: Big enterprise accounting system issued according

to Circular 133/2014/TT-BTC dated December 22, 2014 of the Ministry of Finance

✓ Applied accounting forms: General journal

✓ Method of calculating inventory cost: Average method at the end of the period

✓ The annual accounting period starts from January 1 to December 31

✓ Inventory accounting method according to perpetual inventory method

✓ Fixed asset depreciation method: Straight-line method

✓ Method of calculating VAT: VAT deductible method

✓ Accounting software used: MISA