ACKNOWLEDGEMENT

Through my internship at Viet furniture Production and Trading Investment Joint

Stock Company, I realized that Viet furniture Trading Investment and Production Joint
Stock Company is one of the major furniture enterprises in the area Hanoi and also an
effective joint stock company. The company's products are increasingly diversified and of
high quality, with great export value, and annually bring the company high revenue and
profit.
During the internship, I would like to sincerely thank Ms.Vu Thuy Hang - general
accountant, Mrs. Tran Thu Van - tax accountant, and the collective staff of the Public
Accounting Department of the company has helped me in the process of searching and
collecting information about the company and applied accounting profession.
However, because this is the first time exposure to research and practical work,
with cognitive limitations, it is inevitable for all the shortcomings in the process of
learning, presentation and evaluation about the company, so I am look forward to
receiving the evaluation of the Associate Professor Ph.D Le Minh Ngoc!
Thank you sincerely!

Student: Dang Dieu Anh

 INTERNSHIP REPORT FOR ACCOUNTING MAJOR
CATEGORY
LIST OF ABBREVIATIONS
LIST OF TABLES
LIST OF CHARTS
CHAPTER 1:
OVERVIEW OF TECHNICAL – ECONOMIC MANAGEMENT AND
ORGANIZATIONAL STRUCTURE ABOUT FIRM ABC
1.1 History of the Establishment and Development of Firm ABC (1 score)
1 Company name: Viet Furniture Production and Trading Investment Joint Stock
Company (VNT)
2 Address: No. 352, Giai Phong Street, Phuong Liet Ward, Thanh Xuan District, Hanoi
3 Phone: 024.664 93 98 / Fax: 024.3664 93 79
4 Web: http://vietnoithat.com/
5 Email: bieu.tran.vnt@gmail.com
6 Owner: Le Duy Bang - Director of the company
7 Tax code: 0103036076
8 Year of establishment: March 30, 2009
9 Market: Nationwide
10 Business license: 0103671313
11 Charter capital: 19,980,000,000 VND

12 Number of employees: 33 people

Viet Furniture Production and Trade Investment Joint Stock Company (hereinafter
referred to as VF) was established with only 11 employees, initially a wood material
distribution shop named Da Loi Trade and production limited liability company in 2006.
In 2009, in the course of working, VF's Board of Directors found that the wood industry
in the North in particular and the whole of Vietnam is entering a period of transformation,
opening up many trading opportunities. Therefore, with extensive experience in
machinery and equipment issues, catching up with technology trends, VF decided to
explore and expand the scale, increase the charter of deep investment in the field of
furniture manufacturing, this is also a prerequisite year, marking a turning point for VF,
the company changed its name to Viet Furniture Production and Trade Investment Joint
Stock Company, changing the content of business registration. With the main function of
manufacturing and trading OFFICE FURNITURE Products, in which business line is
also expanded such as industrial kitchen equipment, glass partitions, plaster ceilings,
office blinds and some specialized products serving enterprises in export processing
zones.
Since 2009, the company's office furniture factory with a scale and modern more than
1,200 square meters in Ngoc Hoi has officially come into operation. With a system of
modern machinery imported from advanced countries (with a capacity of 40,000 products
/ month), creating high-quality office furniture with modern style, convenience, creating
perfect and comfortable working space for users.
In 2015, the Company has made steady steps on its production and business activities.
Revenue scale has achieved stable growth. VF has created a dynamic and creative
working environment, human values are always appreciated. Taking the human factor is
the key, taking mutual trust and respect to be the highest responsibility in the job, so the
company has trained and recruited a team of skilled employees to always complete well.
large and small commercial contracts.
Taking the quality and supply schedule as the motto of business, this year the Company
also signed cooperation with many prestigious domestic and foreign partners. Along with
the growth in production and business activities, VF's Board of Directors has always
placed corporate culture on an important position in the management and operation
process, this has helped the company become the official distributor of the three biggest
office furniture brands: Hoa Phat Furniture, FAMI Furniture, Furniture 190, at the same
time improving its reputation in the market, the Furmac brand
The company's development orientation is associated with the trend of industrialization
and modernization of the country with the plan to expand the market across the country
and in the region and the nearest time, always catch up with the trend and respond to the
movement of information technology with 2D 3D maxs perspective office interior design
or online sales. During the development process, VF always poses the problem of
sustainable development and creates products with pride not only for VF's staff, but also
for their satisfaction and a beautiful impression on all customers when follow the set
motto "Do with passion"
1.2 Features of business operations
1.2.1 Functions and Responsibilities
Function
Through a long time of non-stop creative work with passion and burning enthusiasm up
to now, with most imported materials, VF brings many products based on specific
designs of each office space room VF provides full service products and services for
office furniture. From the stage of ground measurement -> detailed design -> overall
perspective -> product manufacturing -> construction solutions -> project management ->
completing the whole work item. The main market that the company provides is in Hanoi
and other provinces across the country. On the other hand, the company is constantly
researching and timely grasping the emerging needs in the market and finding ways to
best satisfy those needs. This function is shown as follows:
- Detecting demand for goods and services on the market and finding ways to satisfy that
demand.
- Must constantly improve the quantity and quality of service to customers' needs to
improve business efficiency.
- To well deal with internal and external relationships to build the culture and image of
the company.
Main areas of activity: manufacturing and trading OFFICE FURNITURE products,
specializing in supplying and constructing office sanitary partition systems, common
sanitary areas for buildings with aluminum systems and specialized accessories use.
Mission
The mission of VF Company has been confirmed in both production and trade:
- Establish and execute development and business plans in accordance with the industry
referred to in the certificate of business registration.
- The preparation of corporate strategies, the development of strategic plans and company
priorities.
- Comply with quality professional requirements, strictly follow the method of advanced
manufacturing, reasonable materials and solutions. Organize research into production,
apply scientific and technological innovations to enhance the efficiency and quality of
labor to suit the demand.
- The care and continuous enhancement of working conditions, material and spiritual life,
the promotion and improvement of professional qualifications for workers.
- Comply with and strictly comply with the legislation of the State relating to business
law and related laws.
- Open the accounting books, report the books in compliance with the regulations and
send them to the competent authorities for review and supervision.
1.2.2 Main business activities
Business areas:
• Manufacturing and trading in wood, steel, and aluminum products and equipment for
office interior and exterior. Interior Designing, Consulting, Construction
• Retail sale of household electrical appliances, beds, wardrobes, tables, chairs, doors and
similar furniture, electric lamps and lighting sets, other household appliances, school
equipment
• Supplier of industrial kitchen equipment, office blinds, glass partitions, wood, plaster
ceiling panels, safes, ...
Although the company's activities have many different business fields, but the main
business of the company is the wholesale and retail of office furniture. It accounts for the
largest share of sales in the business results report.
1.2.3 Organizational Features of firm’s operation
7-step workflow:

Contact, exchange with customers

1

Provide design ideas

2

Estimation, 3D design, detailed design of production and construction

3

Estimated schedule, price approval and contract making

4

Receive applications, conduct production

5

Delivery, construction, installation

6

Warranty
7

Table 1 organizational process of business operation

STEP 1: Contact, Receive Customers
Meet the customers directly at the requested location: "Hanoi and neighboring provinces"
or exchange online. Usually, the content of the meeting was to exchange the following
basic information:
- Customer inquiries and detailed introduction, about the company
- To record information and content of interior works communicated and requested by
customers
+ Total ground area for interior construction
+ Number of departments, number of employees, special equipment that you use
+ The boss's special requirements (sitting direction, color, size, age ...)
+ Survey the actual site, measure in detail (as the basis for the design)
+ Estimated time to be finalized.
+ Customer’s special standards.
STEP 2: Provide Design Concept
After the customer communicates basic information. The company will do a
preliminary design for the layout of the premises or the organization of the space
(layout).
This layout is the most important, cross-cutting workflow. To get a perfect office. the
company and the customer have to work together really meticulously. All sizes,
distances, every guest and every space must be used with good use and function.
The layout tells customers the location, direction and area of each department. It is even
more important to know the size of each product, the size of each roadway. Based on
that, you can arrange the position of each employee so that they can coordinate best with
each other in work.
With 11 years of experience in interior design and construction, the company's engineers
are qualified to advise and offer the most reasonable premises, in accordance with the
needs of customers.
"AND THE COMPANY'S DESIGN IS FREE"
STEP 3: Project - 3d Design - Production Details Design.
After the Layout is unified. The architect will plan the design of shapes and colors. The
company will convey to customers with images that are 90% more realistic than the
actual image, using 3D maximization technology.

Figure 1 layout design

With practical experience and creativity of architects, the company will follow your
needs, and give your reasonable advice. The result of the design process will be a set of
images: including the top view of the entire space, photos of other important areas such
as the director's room, meeting room, reception area, common space ...
After the customers are satisfied with the 3D design plan. We will make
construction plans, detailed estimates, and agree on materials for all items to be deployed.
Usually there are the following basic items:
+ Erecting partitions separating space (Partitioning plaster, glass, felt,
veneer ...)
+ Making decorative ceilings, reorganizing lighting and air conditioning (if
necessary)
+ Construction of Electrical, Network, Voice ... systems
+ Construction of decorative items (wood cladding, decorative felt, tiled,
wooden floor, curtain, paint ...)
+ Furniture items (desk, chair, document cabinet, meeting table, safe, Pantry
room ...)
 

 
Figure 2 3D perspective

STEP 4: Promotion, Price and Contract Approval

After completing step 3, means both the customer and the company have agreed on the
design and cost estimates. The company will provide customers with detailed progress
estimates for you to follow:
Based on the approved cost estimates. The two sides will work clearly and frankly on all
terms. In this step, the customer may not sign a contract with the company if he feels the
price is not reasonable, and will not be charged any related fees.
If there is a consensus of both parties, the company and the buyer will carry out
contracting procedures to unify all the work done in the initial steps and include
information on both sides, quantity, quality, payment method, in which:
• For project clients
- Deposit 50% of the order value right after signing the contract.
- Payment of the remaining 50% of the order value right after delivery.
• For online customers
- Small and retail orders: Payment right after delivery and complete installation
- For large orders:
+ Payment of 50% of the order value, right after confirming the order
+ Pay the remaining 50% of the order value right after delivery and complete
installation

 
Figure 3 Progress template
STEP 5: Receive Application, Conduct Production at The Factory
The company continues to receive orders to report to the factory to proceed with
production
Production process
• Import of raw materials: Stamdard and selected timber is gradually imported into the
manufacturing process.
• Lumbering: Wood prepared for the production of furniture is typically wide blocks
which needs to be cut according to design specifications into boards of various sizes. In
order to ensure that the product is well finished, the worker conducting this step must
have careful estimates so that the amount of pre-prepared wood is cut without being lost
or redundant. All steps in the manufacture of wooden furniture must be taken carefully
and prepared.
• Drying of wood: The finished product is soaked with anti-termite chemicals after the
sawn wood is finished and then put into a steam dryer. The measure makes the furniture
more sturdy and difficult for termite insects to strike.
• Select the appropriate wood panels for the project under construction: Then the worker
will study the wooden bars and identify them, select the most appropriate wood panels to
meet the requirements of wooden furniture prepared. Audience. There must be no defects
in the selected wood panels, solid toughness, perfect veins, natural color, no rodents,
cracking, warping, ...
• Outsourcing products: The next step of the production process for wood furniture is to
process the production of finished goods. The craftsman will perform the cutting of the
selected wood panels according to product requirements.
• Product finishing: After that, the consistency of the created product will be tested,
assessed and verified by staff and managers. When the next step is done, the technician
will begin to turn the water to make the furniture lighter, cleaner and dry for natural
color, paint, and spray if necessary to polish the furniture. Each part of the product is then
placed in the packaging phase and shipped to the consumer.
STEP 7: Delivery, Construction, Installation
The parts created will be assembled together to create a complete wooden furniture block
according to order requirements. The company performs all stages from transportation to
construction and site cleaning, cleaning to completion to handing over to customers.
STEP 8: Warranty
The warranty period for all office furniture installed by Viet Furniture is 12 months and is
committed to comply with the State's regulations. The product comes with free warranty
for the following defects:
- Due to production (will replace and repair)
- Due to technical errors during installation
- Failure due to quality of the material

1.2 Organizational structure

 Director

sales marketing design manufacturing accounting

HR department
department department department department department

management after-sales
agent service purchasing QC/maintenance

project workshop
Sales departmentwarranty warehouse
Manufacturing
management

Table 2 Model of organizational structure

- Director: is the person who runs the company's day-to-day business operations, is
responsible to the Board of Members for the implementation of its rights and obligations.
- HR-administration department: With the structure of 1 department manager, one
human resources staff, an administrative staff member and a longtime driver team with 6
members of the administrative and human resources department having the main Perform
specific jobs and advise policies on people's lives in the factory management board, is
responsible for recruiting and managing labor as required to advise the Director on the
form of salary management , bonus, check the monthly salary calculation
- Financial accounting department:
advise company leaders in the field of management of financial and accounting activities
in evaluating the use of assets, money and capital in accordance with the financial
management regime of the state.
Accounting for arising economic transactions, ensuring the legality and rationality of
economic transactions according to current regulations. Make a balance sheet, balance
sheet, and financial report before the Director. To carry out tax settlement procedures,
and pay taxes according to state regulations.
on the basis of the financial plans and business plans of the financial planning
departments of the whole company, monitor and urge the departments to implement the
assigned financial plans, Review cost effective performance of the company's financial
position.
periodically gather to provide information to company leaders about the fluctuation of
capital sources, capital, efficiency in using assets and materials of the company, advise
and propose measures to use capital reasonable, effective, exploiting and mobilizing
capital sources to promptly serve production and business in accordance with State
regulations.
coordinating with functional departments for the company to serve production and
business
- Sales Department: placed under the direct supervision of the Director, responsible for
advising the Director in building a business dispatch plan. Directly manage and expand
product sales network, and make economic contracts. Supply of stationery to meet the
company's business needs.
- Design and Creation Department: The Design Department is a room that performs the
function of advising, for the Chairman, in the management of the design work
organization. Organize to receive and advise leaders on the design of the project, directly
working with design consultants, construction partners on design-related content.
Planning and implementing the project design implementation schedule are assigned
through the following phases: preliminary, editing, construction technical design, interior
and exterior structure design.
- Marketing department: Market Forecast Analysis, to identify needs, market reach,
target market, new market, to collect market information.
Implementation of the latest program of product creation. Develop revenue strategies,
company long-term benefit goals. In order to satisfy the ever-changing needs of
customers, new products are created to keep pace with new technology and techniques, in
line with the fierce competition in the industry.
Market segmentation, targeting, selling products of the same kind, but with different
applications, to satisfy the varying needs of different consumers, thereby positioning the
brand.
Establishing productive media partnerships, establishing good ties with the press and the
media so that top priority is always given to companies.
- Production department: includes the deputy director of the factory, followed by the
design, planning, QC, electromechanical and production departments. Under the direction
of the Director and Deputy Director, the production department plans, prepares
production and is the place to directly perform the production of products.
perform the function of advising and assisting the Director of the Company in the field of
organization and control of the process of product creation, construction, installation and
service to meet customer requirements. Directly manage human resources, assign labor to
serve construction and production. Study the design of the projects assigned to supervise
and monitor, detect errors, shortcomings, warn of potential risks (if any) and propose
modifications, supplements ...
Preside over the project execution process (quality objectives and product requirements;
construction organization plan, human resource plan, material, material, equipment plan,
machine construction machinery, deployment and installation) according to the
requirements of each project and the requirements of the quality management system
Many of the workers directly involved in production of the company have been with the
company since the early days and have become core skilled technical workers at the
factory. People who have been training for many years in Korea, China has contributed to
the training of more than 50% of the current skilled workers at the company.
Relationship between departments
- Coordinate synthesis, check, provide general data throughout the Organization in
compliance with the regulations serving the departments' planning and management
function.
- In preparing each side and the overall strategy of the business, consult with the
necessary departments.
- Advise appropriate agencies to completely enforce the initial recording documents and
to open the required technical cost-accounting books in compliance with state regulations
and methods.
- To assist the Director in checking the implementation of the financial and economic
management regimes of the departments by accounting, statistics and economic analysis.
- Other divisions, under their responsibility, are responsible for the processing and
recording of data, making allocated statistical reports and submitting them to the
accounting department and are responsible for the quality and veracity of the data. Uh.
There.
- Provide the accounting department with the necessary documentation and data for
accounting and review, for economic information work, for economic activity analysis
and for collaboration with the departments responsible for coordinating the work.
- Provide guidelines, technical standards, cost estimates, lists of materials and goods to
the accounting department to carry out the costing and control of the implementation of
such plans and standards.

1.4 Financial position and Financial Performance of the firm ABC

Results of operation’s company for recent years
 Currency unit: VNĐ
Accounts 2017 2018 2019
Net sales 219.959.524.571 178.082.029.963 126.351.247.620

Cost of goods sold 211.411.777.568 167.641.924.100 116.113.564.966

Gross profit 8.547.747.003 10.440.105.863 10.237.682.654

Operating income 251.893.312 192.269.035 173.851.085
Profit before tax 249,501,645 234.242.812 176,830,801

Net income 199.601.316 187.394.250 141.464.641

Supplementary financial information of company: balance sheet and other information

Currency unit: VNĐ
2017 2018 2019
Current assets 64.769.844.798 70.440.329.816 46.120.842.634
Cash and cash 2.424.668.115 4.753.454.870 3.575.571.143
equivalent
Account receivable 43.325.617.876 37.030.075.513 23.600.270.151
Inventories 17.170.867.273 25.883.929.847 15.987.959.332
Long-term assets 3.499.931.591 5.050.191.526 6.482.194.108
Total assets 68.269.776.389 75.490.521.342 52.603.036.742
Current liabilities 63.411.203.044 52.444.553.747 29.415.604.506
Long-term liabilities 2.150.000.000 2.150.000.000 2.150.000.000
Total liabilities 65.561.203.044 54.594.553.747 31.565.604.506
Owner’s equity 2.708.573.345 20.895.967.595 21.037.432.236
Total liabilities and 68.269.776.389 75.490.521.342 52.603.036.742
owner’s equity
Operating cash flow 28.580.979.745 29.968.870.738 15.482.477.241
Number of employees 31 31 33

Overall, the profitability of the company witnessed a downward trend, it declined

significantly due to demand reduction and the tough competition in the interior field
when bigger companies were presenting its new products, also the company was not
keeping up with the new marketing trends, the performance of the company will be
analyzed specifically throughout the ratios below.

Common size balance sheet analysis

Accounts 2017 2018 2019
Current assets
 Cash & cash 3.55% 5.98% 6.80
equivalent
Account receivable 63.46% 46.59 44.86
Inventories 25.15% 32.56% 30.39
Others 2.70% 3.49 5.62
Total 94.87% 88.62% 87.68

Long-term assets
Fixed assets 4.26 3.11 6.83
Others 0.86 3.24 5.49
total 5.12 6.35 11.87
Total assets 100% 100% 100%
Current liabilities 92.88% 65.98 55.92
Long-term 3.15% 2.70 4.09
liabilities
Owner’s equity 3.97% 25.13 39.99%
Total liabilities & 100% 100% 100%
owner’s equity

As we can see, current assets made up the majority of the total assets, even though It
decreased throughout the 3 years but not significant. In which, Cash & cash equivalent
increased gradually between 2017-2019, sharply in the year 2018 when the amount of
cash grew double. Account receivable declined for 16.87% in 2018 and continued to drop
about 2% in 2019. Inventories experienced a fluctuation and comprise for 30.39% in
2019. Long-term assets, dramatically rose in 2018-2019 when fixed assets in 2019 are
twice as much as in 2018.
Current liabilities in 2017 was enormous due to the fact that company borrow a huge
amount of money to expand and maintain their business operations, also rose in account
payable when the company purchased goods on credit, this might cause the company
have a hard time serving their debt loads during economic downturns, it accounted for
92.88% of total liabilities &owner’s equity, this dipped to 65.89% and kept on reducing
about 10.06% accordingly, the company managed itself out of heavily indebted period
that might lead to bankrupt. Long-term liabilities fell about 0.45% in 2018 then increased
to 4.09%. Owner’s equity surged from 3.97% to 25.13% from 2017-2018 because Capital
contributed by owners had a drastic increase of 18000000000 VND, it continued to grow
and took up nearly 40% of total liabilities & owner’s equity

Common size income statement analysis

Accounts 2017 2018 2019
Net sales 100% 100% 100%
 COGS 96.11 94.14 91.90
Gross profit 3.89 5.87 8.10
Operating 0.11 0.10 0.14
income
Other profits (0.001%) 0.02 0.002
Profit before 0.11% 0.13 0.14
tax
Net income 0.09% 0.10 0.11

Even though revenue had declined significantly due to demand reduction and the tough
competition in the interior field when bigger companies were presenting its new products,
the performance of the company had not lost its pace. Cost of goods sold slowly dropped
about 2% each year, gross profit increased the same amount of 2% each year. Operating
income gradually climbed from 0.11% to 0.14% from 2107-2019. Other profits were
negative in 2017 and sharply increased from 2017 to 2018 when the company focus on
producing revenue that doesn’t come from the operations of the business, other income
soared approximately 2404% in comparison to 2017, it again to dropped dramatically in
2019 and occupied for only 0.002% in the total of sales. Profit before tax had an upturn
of 1-2% each year, also did net income when it slightly increased from 0.09% to 0.11%
in 3 years

Financial Ratios Analysis

Financial 2017 2018 2019
structure
Debt Ratio 95.97% 72.32% 60.00%
Debt to equity Ratio 2420.50% 261.27% 150.05%
Equity Ratio 3.97% 27.68% 39.00%

The company debt ratio was at 95.97% in 2017, in which current liabilities account for
96.72% of total liabilities showed that the company might be putting itself at a risk of
default on its loans if interest rates were to rise suddenly, it gradually decreased to
60.00% in 2019 proved the better position of the firm. Debt to equity ratio in 2017 was
extremely high due to the company had been aggressive in financing its growth with
debt, this associated with high risk, however, it had reduced tremendously for about
2159.23% in 2018 when the company increased its equity from 1.980.000.000 VND to
19.980.000.000 VND and continued to drop to 150.05% in 2019. As a result, equity ratio
in 2017 was very low, only at 3.97% and rapidly grew to 27.68% in 2018 and 39.00% in
2019

Profitability 2017 2018 2019

 Gross 3.89% 5.86% 8.10%
Margin
Ratio
Profit Ratio 0.09% 0.10% 0.11%
Return on 0.29% 0.25% 0.27%
Assets
Return on 7.37% 0.90% 0.67%
Equity
Return on 0,11% 0.10% 0.14%
Sales

Both gross margin ratio and profit ratio of the company steadily rose from 1-2% each
year indicated the company had a good performance and utilized its assets well. Return
on assets ratio declined from 0.29% in 2017 to 0.25% in 2018 because of other long-term
assets surged for more than 4 times and finally climbed to 0.27% in 2019 due to the
reduction in current assets. Return on equity ratio in 2017 was 7.37% and drastically fell
to 0.90% and 0.76% respectively because of owners’ equity increased. Return on sales
experienced an upward trend, sharply increased in the 2018-2019 period, by 0.04% from
0.10% expressed the company is good at cost management

Liquidit 2017 2018 2019

y
Quick 75.06% 84.96% 102.44%
ratio
Current 102.19% 134.31% 156.79%
ratio
Working 1.358.641.754 17.995.776.069 16.705.238.128
capital
Times 1.22 times 1.44 times 1.47 times
Interest
Earned
Ratio
Operating 45.00% 57.14% 52.63%
CF/
current
liabilities
Quick ratio of the company gradually grew due to current liabilities reduced, rose sharply
from 2018 to 2019 about 17.48% when both inventories and current liabilities dropped
considerably, reached 102.44% in 2019. The current ratio proved the liquidity of the
company is quite strong when it significantly jumped form 102.19% in 2017 to 156.79%
in 2019, this mainly due to current liabilities dramatically declined nearly a half in 2019.
Working capital in 2017 was low at 1.358.641.754 VND because of high current
liabilities, generally by the increase in account payables and short-term borrowings and
financial leases, however, it decreased sharply throughout the 2 years and result in the
rocket of the working capital when it reached the point of 16.705.238.128 VND.
The low times interest earned ratio at 1.22 times indicates a dangerous situation of the
company in 2017 when it had an enormous debt in comparison to earnings, nevertheless,
interest expense account plummeted for more than a half in 2018 and kept on reducing in
2019, caused the ratio climbed to 1.44 times and 1.47 times respectively, improve the
company’s liquidity even though EBIT slowly dropped. The firm’s ability to cover
current debt with yearly operating cash flow escalated about 12.14% from 2017 to 2018
proved the firm’s had operating well, however it started to declined considerably in 2019,
from 57.14% to 52.63%

Efficiency Ratio 2017 2018 2019

Accounts 5.08 times 4.81 times 5.35 times
Receivable
Turnover
Days’ Sales in 71.85 75.89 68.22
Receivable
Asset Turnover 3.22 2.36 2.40
Ratio
Inventory Turnover 12.31 6.48 7.26
Days’ Sales in 29.65 56.33 50.23
Inventory

Account receivable turnover for 2017 was 5.08 times and decreased about 0.27 times in
2018 due to downward trend of net sales, it begun to rise again in 2019 when account
receivable declined for nearly a half. Although it rose but this was also accompanied by
net sales reduction showed that the firm might not operate better in contrast with the last
2 years. Days’ sales in receivable oscillated throughout the 3 years but had an effective
outcome of 68.22 days in 2019, better than the latest 2 years. Asset turnover ratio
experienced a downward trend from 3.22 in 2017 to 2.36 in 2018 because net sales had a
significant fell, it kept on reducing in 2019 and also total assets too, this made the ratio
increased moderately for 0.04. inventories turnover ratio collapsed for a half in 2017-
2018 due to inventories increased sharply and marginally rose from 6.48 to 7.26 when it
dropped again. Days’ sales in inventory was good in 2017, however it begun to grow for
double in 2017 illustrated the company had not performed as its best to produce profit,
the day decreased to 50.23 in 2019, not favorable in contrast with 2017.
CHAPTER 2: AN INTRODUCTION TO ACCOUNTING ORGANIZATION AND
SYSTEM APPLIED IN FIRM ABC
2.1 Structure of accounting organization

Chief accountant

Genaral
accountant

Salary and social liabilities material,

Tax accountant insurance accountant warehouse Sales accountant
accountant accountant
Table 3 Model of organizational structure
- Chief Accountant, General Accountant
Assigning and directing the company's accountants
Have the right to request the complete and timely transfer of the required data and
records for accounting and accounting checks by all departments of the organization.
The Director of the Accounting Department is entitled to decide on documents relating to
payment, payment of wages, payment of salaries, business cash collection.
Enable the director of the organization to periodically review the company's economic
operations in order to better assess the effects and implications of the business strategy of
the company, identify the waste and harm of the company, inadequate jobs, stagnation
and take remedial action, to ensure improved operational results and income.
Assist the director to maximize the opportunity, save money and increase the productivity
of business resources through the company's financial-accounting work.
Organize financial statements and correctly, honestly, timely and thoroughly represent all
properties and review the company's business performance.
Calculate and subtract taxes in full and promptly to pay the budget, the funds left the
company and pay on time loans, debts receivable and payable
Implement preparation and retraining programs to develop the skills of business
accountants and retraining plans to improve the qualifications of accountants in the
company
All company financial activities are measured and synthesized on the basis of original
documents submitted by the accounting department as required by the finance and
accounting work.
- Tax Accountant
Collect company invoices and emerging documents to track and register.
Prepare monthly and quarterly fiscal reports and pay the business taxes
Prepare reports on financial statements, year-end tax reports, corporate tax (CIT) and
personal tax (PIT)
Check and compare the value-added invoice (VAT) with each establishment's input and
output tax list.
Make monthly general reports of the entire company's production and input VAT, listed
by tax rate,
- Accounting of Money, Salary and Social Insurance
Salaries for accounting, bonuses, social security, health insurance, ... Salary deductions
and other profits. Credit scheduling, cash schedule, bank, unit payment procedures, bank
partners, loan balance tracking, deposit
- Cost and liabilities Accountant
The tax declaration is made monthly to conduct duties with the Administration. Check
and compare the books with the units and enter at the end of the time the monthly data to
record. Track the company's purchasing and selling debt. Track debt collection
fluctuations, debt payment to other subjects Assemble and distribute expenses of sale,
expenses of business administration and allocation of buying expenses of products.
- Warehouse, Raw Materials, Tools Accountant
The job of synthesizing documentation from various accounting parts to be tracked on the
list is to include the allocation table as the basis for measuring the cost and cost of the
product, as well as the monitoring methods and tools. Monthly Materials survey. Track
account 155, synthesize all in-stock finished goods, store. Monitor the monthly flow of
import and export inventory and revenue, register, review records for the economic
transactions that occur.
- Sales Accountant:
Invoicing for sales, monitoring and synthesizing the number of products sold to report on
sales, increase and decrease of products according to requirements of business
management
It has had a positive impact, making the dependency relationship in the accounting
apparatus clearer with the accounting apparatus structured in a centralized model and
features as described above. Ensuring the focus, continuity and strictness of accounting
job management allows the organization to inspect and direct production in time, to
professionalize the employees. Accounting information is often given in a timely manner
for the company's management and course of production and business, which is very
important for the type of trading company, with features and face styles. The business
supplies. On the other hand, accounting reporting performance information is mostly for
internal purposes and for tax authorities (less external because they do not call for
expenditure, take out bank loans, etc.), so the accounting apparatus requires clear, concise
financial statements and few goals. In addition, for the costs that companies may pay, the
construction of a simple accounting system is also acceptable. Therefore, the
organizational structure of the accounting apparatus that the company is applying is
relatively appropriate.
2.2 Features of Accounting System
2.2.1 General Accounting Policies
a) General accounting regime
The accounting account system and financial reporting system used by the company is
the account system and reporting system issued under Circular 200/2014 / QD - BTC for
small and medium enterprises (SMEs) of the Ministry of Finance also the attached
additional circulars
b) Applied accounting method
- Starting from the characteristics of business organization and management
requirements of the Company, currently the company's accounting department is
applying the general journal accounting form. The simple general journal format is very
suitable for use with computers. The Company's accounting process, document
processing, document rotation, and economic information provision are all implemented
on the effect accounting software. This helps the accounting staff to ease their work and
provide quick and timely information data. In the form of General Signing, the
accounting book system at the company includes: general diary, account ledger, detailed
books, general accounts of accounts, types of statements, distribution tables.
- Currency unit used in accounting and principles and methods of converting other
currencies: Vietnam dong (VND). Principle of recognition of cash and cash equivalents:
during the years the transactions in foreign currencies are converted to actual VND at the
date of arising at the exchange rate announced by the Bank for Foreign Trade of Vietnam
- The Company stipulates that the annual accounting year is from January 1 and ends on
December 31 every year.
- Calculate VAT according to the deduction method and the monthly accounting
- Inventory accounting is calculated at cost, according to the regular declaration method,
and determined by its value according to the weighted average method.
- Fixed assets are stated at cost and accumulated depreciation. Depreciation is made on a
straight-line basis.
- The Company has applied Vietnamese Accounting Standards and its guiding documents
promulgated by the State. The reports are prepared and presented in accordance with the
regulations of each applicable accounting standards and circulars currently applied.
- Applied accounting method: machine accounting, using effect accounting software

Figure 4 Effect accounting software

2.2.2 Features of Accounting Documents

Accounting vouchers used in the company shall comply with regulations of the Ministry
of Finance. The company does not use a separate invoice and voucher form because there
are few specific economic operations. The order of document rotation at the Company
according to general regulations includes 4 stages:
 Prepare, receive and process Vouchers according to the elements of the Voucher
(or receive the Document from outside)
Relevant vouchers can be used based on the economic content of the transaction. In
order to be valid, all accounting vouchers must have complete signatures according to
the titles listed on the vouchers; the signatures must be accurate and signed with
ballpoint pens or ink pens. As prescribed for each voucher, accounting vouchers must
be made with a sufficient number of copies.
 Check document:
The accountant, the chief accountant, must verify the legitimacy, legality and
reasonableness of the voucher upon receipt of the voucher and either sign it or send it for
approval to the director. The company director stipulates the decentralization of the
signing of accounting vouchers based on the statute, management criteria, maintaining
tight control and asset protection. The signature on the voucher of the director, chief
accountant and seal must be compatible with the sample of the seal and the correct
signature registered at the bank. The accountant's signature on the voucher must be the
same as the signature registered with the chief accountant
 Classification and arrangement of accounting vouchers, accounting items and
recording
Checking the clarity, truthfulness and completeness of items and components recorded on
accounting vouchers, the legality of economic and financial transactions recorded on
accounting vouchers, comparing accounting vouchers with other relevant records
When testing accounting vouchers, they must refuse to perform when detecting any
breach of the State's economic and financial management laws, regimes and regulations,
(No fund-out, payment or export warehouse, ...) at the same time notify the Director of
the Company to promptly handle the current law. The contents and numbers are not
evident for accounting vouchers made in contravention of protocols, accountants who
review or report the books must return them, request additional procedures and
correction, then act as a recording basis. Uh, journal. The accountant determines the price
on the voucher after reviewing, and records the object to complete the voucher. They can
be used as a base for documenting entries only when the accounting documents have
been reviewed and completed.
 Archiving, preserving vouchers and canceling vouchers:
Vouchers are the legal basis for the recording of the company's books and historical
records, so they must be maintained thoroughly and securely by the accounting
department during use and archiving. Archived accounting vouchers must be original,
registered in the book and archived for security purposes at the end of the accounting
period; if missing or damaged, the record must be accompanied by a copy, capture or
confirmation. Accounting vouchers must be archived for a period of twelve months from
the end of the annual accounting period or from the end of the accounting period,
provided that the expiry of the voucher's expiry date is lost.
Currently, the company applies a system of accounting documents issued under
Circular No. 200/2014 / TT-BTC dated December 22, 2014 of the Ministry of Finance.
* Fixed assets: Handover minutes of fixed assets, Liquidation minutes of fixed assets,
Handover records of completed overhaul fixed assets, Record of fixed assets inventory,
Spreadsheet and depreciation amortization, ...
* Currency: Receipt slip, payment note, advance request, advance payment note,
collection receipt, fund inventory, payment statement, ...
* Sales: payment of goods by agent, consignment. counter card
* Inventory: Receipt of goods in and out of stock, Minutes of testing, inventory of goods,
distribution of materials, tools, ...
* Regarding labor and wages: timesheet, payment sheet of wages, bonuses, overtime
payment sheet, product confirmation sheet or completed work, ...
The rotation order of accounting vouchers is specified by the chief accountant, the
original documents made by the unit or from the outside must all focus on the accounting
department. The units of the accounting department must have the responsibility to
receive and carefully check those vouchers and be correctly identified in order to use
those vouchers for recording in the accounting books.
2.2.3 Features of Chart of Accounts
Currently the company is applying the newly issued account system of the Ministry of
Finance (according to Circular No. 200/2014 / QD-BTC). The company uses the
following accounting accounts:
- Account 632: Cost of goods sold.
- Account 152: raw materials, materials
- Account 153 tools
- Account 511: Revenue from goods sold and service provision
+ Account 5112: Revenue from semi-finished products
+ Account 5113: Revenue from service provision
- Account 521: Revenue deductions
+ Account 5211: Trade discounts
+ Account 5212: Sales returned
+ Account 5213: Discount on sales
- Account 131: Receivable from customers, detailed by name of customer
- Account 331: Payable to seller, also detailed by name of seller
- Account 642: Enterprise administrative expenses
- Account 155: finished products
+ Account 1551: Finished products in warehouse
- Account 821: Corporate income tax expense
- Account 911: Determination of business results
- Account 641: Selling expenses
- Account 642: Enterprise administrative expenses.
In addition, accountants also use other accounts such as: TK111, Account 112, Account
334, Account 338, Account 133, Account 3331. The Company does not use a number of
accounts such as: Account 121, Account 161, Account 221, Account 229, Account 244,
Account 344, ..
Level 2 account system is designed in accordance with the production and business
characteristics of the company, on the basis of level 1 accounts and management
expenses for convenient management and accounting.

2.2.3 Features of Accounting Books

The company is focused on the characteristics of production and business operations, as
well as the actual situation of the company, in order to select an acceptable accounting
book type. In conjunction with the use of Excel software to build accounting tables and
spreadsheets, the Organization has registered to use the General Journal accounting
method and do the accounting on the impact accountant software. There is also no direct
data rotation among the operational accountants, but information is processed directly by
paper parts via the internal network prior to updating to the server. The popular books at
the business are the books in the prescribed form with the sort of accounting book as a
general diary, that is:
+ General book: That is the General Accounts Open Book. The objects are reported in the
summary book according to the measure of value. The summary book data is the basis for
financial statements to be made. The styles of general books used by enterprises:
 General Journal: All emerging economic transactions are expressed in
chronological order when handling all the accounting data of the unit in an
accounting year. As a basis for documentation in the ledger, from the general
diary.
 Ledger: It is a general journal used to chart financial transactions resulting from
accounts. On one or more consecutive pages, each account is opened. The general
journal is the basis for the recording in the ledger.
 Account balance sheet: A book used by the board to verify the accuracy of
accounting documents by testing the accuracy of pairs of data. The resulting
amount and the closing balance from the ledger are the cornerstone for preparing
the balance sheet.
+ Detail book: is the open book for extensive accounts. Objects are documented in the
comprehensive book according to both the measure of value and form. The types of
detailed books that companies use are: detailed cash books, detailed sales books, detailed
buyer and seller books, ... And other types of documents approved by the Finance
Ministry, such as sales invoices, retail lists of products, self-printed invoices and
vouchers of a particular nature.
The company uses effect accounting software, most of the books are programmed and
calculated on the effect software, printed out from computers from this software.

Original
documents

Effect accounting
software

detailed accounting
Public diary
books and cards

ledger Advanced
composite panel

balance sheet
amounts arising

financial report

Table 4 Recording form at the company

Note:
Record daily
Record at the end of the month or periodically
Contrast, check relation

Every day, such as sales invoices, receipts, audit receipts, warehouse receipts, stock exits,
... based on the original true invoices and accounting vouchers will be put in this
Software, then immediately enter the general accounting records (leader, general diary)
and record them in corresponding detailed books and cards. Closing the period at the end
of the accounting quarter and making financial statements. The comparison between the
aggregate data and the detailed data is done automatically and always guarantees the
accuracy and truthfulness of the information entered during the period. General
accountants can analyze and compare figures between accounting books with financial
statements after they have been printed out. At the end of every quarter and year at the
end of the financial year, the general and detailed accounting reports are printed on paper,
rolled up in books and enforced by legal procedure as required. Prepare the balance sheet
for the account and the financial statements at the end of the accounting period.
2.2.4 Features of Accounting Report
Organize accounting reporting system at the Company in accordance with Circular 200 of
the Ministry of Finance. The company's financial statements are prepared twice a year,
mid-year and year-end and include four statements: Balance Sheet, Income Statement,
Cash Flow Statement, Notes to the financial statements.
Annual financial statements include:
- Balance sheet Form B01 - DN
- Report on business results Form No. B02 - DN
- Cash flow statement Form B03 - DN
- Notes to the Financial Statements Form B09 – DN
Interim financial statements:
- Full-form mid-year financial statements, including:
+ Mid-year balance sheet Form B01a - DN
+ Report on interim business results Form No. B02a - DN
+ Interim cash flow report Form B03a - DN
+ Notes to selected financial statements Form B09a - DN
Via a quarterly business performance review, these reports reflect the company's
liabilities, assets, equity, profit and loss results over an accounting year. At the end of the
year, the school accountant is responsible for finishing these reports, sending them to the
company leaders for approval and then submitting them to the authorities as required.
The truthfulness and reasonableness of the financial statements is the manager 's
obligation. The Chief Accountant shall be responsible for assisting the Director in
carrying out all of the accounting work and shall be responsible for the preparation,
presentation, submission and publicity of the report, in accordance with current law. To
meet the requirements for financial statements, the reporting system must comply with
the following basic criteria:
- Business continuity
- Basic principle accrual
- Consistency principle
Materiality and aggregation
- Principle of compensation
In order to prepare financial statements, first of all, there must be sufficient
databases that accurately, truthfully and objectively reflect economic events and
transactions arising at the enterprise. These data have been promptly reflected on
accounting documents, accounting accounts and accounting books. Therefore, before
preparing financial statements, you must perform the following tasks:
- Reflect all legal accounting vouchers into general accounting books and related detailed
accounting books.
- Urge, supervise and conduct inventory and re-evaluation of assets, calculate foreign
currency exchange rate differences, and record those results in relevant accounting books
before closing the accounting books.
- Comparing and verifying receivable and payable debts, assessing bad debts, setting up
and reversing provisions.
- Comparing between general data and detailed data, between general books, compare
data on accounting books with actual inventory, close accounting books and calculate
balance of accounts.
- The accountant in charge of the related operations must complete his duties, contribute
to the good completion of the financial statements.
Managerial statements: includes reports such as management reports providing
information on liabilities, solvency, revenue, loss, and cost of goods reports; report on
progress of goods import, report on sales, increase or decrease of fixed assets, tax
reports ... These reports are prepared by the accountants to send to the Sales Department,
Planning Department and Director to evaluate the Company's operations.
2. 3 Features of some key accounting cycles in firm ABC
2.3.1 Features of Accounting for materials
*Characteristics of Materials.
The company is an enterprise that produces furniture goods. With the specific
characteristics of the product, in the manufacturing process, the Company uses relatively
few types of materials such as oak, industrial wood, glass ... and other auxiliary materials
such as varnish, nails, sand, armor, lime ...
In order to manufacture products, the Company must use relatively few types of materials
due to product homogeneity. The Company's products such as desks, chairs, cabinets,
office partitions ... serve the needs of interior decoration and other essential needs.
However, in order to strictly manage and accurately account the material import and
export situation, material inventory to ensure timely materials serving production, the
Company has classified materials as follows:
• Main raw materials: Industrial wood
• Secondary materials: varnish, lime, abrasive, glue, nails, screws ...
• Recovered scrap: sawdust, wood chips, the materials recovered in the production
process are not reused or used to make laminate.
Also because the types of materials are used relatively little, the Company only classifies
according to the function of the material to the product without coding for the material.
The Company uses account 152 to keep track of both primary and secondary materials.
So when doing detailed accounting for each type of raw material, the accountant records
the name of the material next to the user account.
• Account 1521 - Industrial wood.
Production costs include: purchase costs, processing costs and other directly
related costs incurred to obtain inventory at the current location and status.
• For raw materials in stock
The source of raw materials for product production at Hoang Lam Furniture Joint Stock
Company is mainly purchased domestically and mostly purchased from outside. Raw
materials at the Company are calculated according to the actual price (original price)
principle in accordance with the current accounting standards. Therefore, the actual cost
of the material is calculated by the purchase price without input VAT (the Company
calculates VAT under the deduction method) plus the cost of transportation, handling and
minus trade discounts, receive sales discounts (if any), the payment reflection is tracked
on the accounts. In order to accurately and uniformly evaluate raw materials, the
accountant uses the actual cost of raw materials stocked daily for bookkeeping.
The actual price of raw materials stocked is calculated by the following formula:

actual price value on contract actual deductions

of raw materials = (VAT not + purchase - (if have)
stocked included) cost
Actual purchasing costs include costs in the process of purchasing materials:
Transportation, loading and unloading, storage, checking and warehousing ... And also
depending on the economic contract signed with the house. Supply for which acquisition
costs may or may not be added to the actual cost of raw materials stocked. If shipping
costs are borne by the seller, the actual value of the materials purchased outside the
warehouse does not include the shipping costs.
If the materials are delivered at the company's warehouse, the cost (the price paid to the
seller is exclusive of VAT) includes the shipping costs:
Actual price of value on contract
Raw materials = (VAT not
Stocked included)
Processing costs: inventory processing costs that include costs that are directly related to
the manufactured product, such as direct labor costs, fixed overheads, and variable
overheads. changes arising in the process of converting raw materials, materials into
finished products
• For raw materials to be stocked.
When raw materials are discharged, the cost of raw materials is calculated according to
the weighted average method after each importation:
average unit price
actual cost of each inventory type after each import
posterior =
actual quantity of each inventory type after eachimport
per import

Actual price of quantity of average

raw materials = raw materials x unit
out of stock exported price
*Characteristics of documents
To monitor the situation, import and export of raw materials, enterprises need to use
many different types of documents. There are documents made by the business itself such
as receipt note, ... there are also documents made by other units, handed to the business
such as sales invoices or VAT invoices and there are mandatory documents. such as
warehouse card, warehouse receipt note, delivery note ... There are also guiding
documents such as inspection record, quota delivery note, ... However, no matter what
kind of document is used, the enterprise It is also necessary to comply with the order of
preparing, approving and transferring documents to serve the accounting records and
improve the efficiency of management of raw materials at the enterprise, the types of
documents to track the import – export materials situation include:
- Import documents:
+ Ordinary sales invoices or value-added invoices
+ Warehouse receipt
+ Test record
- Export documents:
+ Delivery note
+ Delivery note cum internal transportation
+ Voucher of delivery of materials according to the limit
- Management tracking documents:
+ Warehouse card
+ Report on materials remaining at the end of the period
+ Inventory record
- VAT invoice
- Besides those documents, the detailed accounting books that the company uses are:
+ Detail book of raw materials, products, goods.
+ Summary of detailed raw materials, products, goods
+ Warehouse card (Warehouse book)
The company uses the parallel card method for detailed accounting of raw
materials, the contents are conducted as follows:
- At the warehouse: the store keeper uses the stock card to reflect the quantity of the
material import, export and inventory. Each voucher has a line on the card store. Stock
cards are opened for each item catalog. At the end of the month, the storekeeper has to
sum up the total amount imported and exported to calculate the quantity of inventories in
terms of quantity according to each material point.
- At the accounting department: the material accountant opens a detailed accounting card
of materials for each list of materials corresponding to the warehouse card, only different
is tracking in terms of value.
Every day or periodically, when receiving the receipt of receipt, delivered from the
warehouse to the material accountant, the warehouse keeper must check, compare and
record on the detailed card of raw materials to calculate the amount. Then, in turn, record
the import-export operations on the relevant materials detailed accounting cards. At the
end of the month, proceed to add the card and compare with the warehouse card. After
comparing and ensuring the correct data, accountants make a detailed summary of input -
output - inventory of raw materials. The data on the detailed sheet of import - export -
raw materials inventory is used to compare with the data on account 152 materials on the
ledger
The parallel card method is simple, easy to record and compare, but also has the
disadvantage of overlapping work. But this method is very convenient when businesses
handle work with computers
 inventory receiving
voucher

detailed import-export-
stock card inventory
accounting
cards or summary sheet
books

inventory delivery
voucher

Table 5 Parallel card recording method

Note:
record daily or recurring
check and comparison
record at the end of the period

The accounting company synthesizes raw materials according to the regular declaration
method. The regular declaration method is a method of monitoring, constantly
systematically reflecting the situation of import - export - inventory of materials and
goods on accounting books, on inventory accounts (151 152) used to reflect the existing
number, the fluctuation of materials and goods in the unit's warehouse, the value of
materials and goods in inventory of the unit, the value of materials and goods in stock on
the accounting books can be determined at any time in the accounting period. This
method is suitable for companies who produce high value items.
* Accounts Used
- Account 152: "Raw materials"
Depending on management requirements of Account 152, the company can open detailed
second-level accounts as follows: Account 1521: Main materials; Account 1522:
Secondary materials; ...
- Account 331 "Account Payables to suppliers"
- Account 151: "Goods in transit"
- Account 133 “Deductible VAT”: Account 133 has a tier 2 account
+ Account 1331: Deductible VAT on goods and services
+ Account 1332: Deductible VAT of fixed assets.
In addition to the above accounts, the accountant also uses other related accounts such as
Account 111, Account 112, Account 141, Account 621, Account 622, Account 627,
Account 642.
*Applying the account
The accounting's recording of purchasing and storing raw materials depends on the
situation of receipt of documents.
Raw materials storage:
- Case 1: Goods and invoices returned at the same time
Based on invoices, import notes and relevant documents, the accounting records: Dr 152:
(value of raw materials stocked without VAT), Dr 133: (Deductible VAT) / Cr 331, 111,
112, 141, ... (Total value of payments to the seller)
- Case 2: In case the goods are in transit
When the accountant only receives the invoice but has not received the receipt note, the
invoice is stored in the dossier folder on the way, if in the month, it is normally recorded
as above, but if at the end of the month, the goods still If you have not returned yet, based
on invoices and relevant documents, the accountant shall write: Dr 151: (The part that is
included in the price of raw materials), Dr 133: (VAT deducted) / Cr331: 111, 112,
141,..: (total value of payments to the seller)
In the following months, when the above goods have returned to the warehouse,
according to the receipt of goods in stock, the following accounts shall be recorded:
Dr152 / Cr 151
- Case 3: Goods returned without invoice
When the accountant only receives the receipt note and has not received the invoice,
based on the actual amount of raw materials stored and the provisional price (accounting
price), the accountant shall record: Dr 152 / Cr. 331
Upon receiving an invoice, the accountant uses a pen to write additionally, or record a
negative number to adjust the provisional price calculated into the invoice price and
reflect the deductible VAT amount. For example, when the invoice price is higher than
the provisional price, the accountant shall write an additional entry: Dr 152: (Actual input
price minus (-) provisional price), Dr 133: (Deductible VAT) / Cr 331: (Payment price
minus (-) provisional price)
- Case 4: Enterprise advances goods to the seller: Debit of Account 331 / Cr. 111,112 ...
Exporting raw materials:
When exporting raw materials used directly for the production of products, for basic
construction activities in enterprises and other needs, based on the actual out-of-stock
price calculated for each user, according to the accounting method determines, the
accountant reflects on the related accounts.
The accountant synthesizes the raw material export slips for each department used,
determines the actual value of the raw materials exported to distribute the value of raw
materials exported to use into production and business costs and records: Dr 621, 627,
641, 642, 623 : (Actual raw material price) / Cr 152: Actual price of raw materials
exported
*Accounting Books
It is achieved according to an impact accounting software program on the computer, in
the form of recording on the computer. Accounting software is developed in accordance
with the principles of one of the four types of accounting, or a combination of the forms
of accounting referred to above. Types of computerized accounting form books:
Accounting software is structured in conjunction with the General Journal Form: Basic
accounting form characteristics General Journal: All financial and economic operations.
The key result must be reported in the Journal, with an emphasis on the General Journal,
in accordance with the chronological order of occurrence and the economic substance
(accounting accounting) of that transaction. Then take details from the Journal for each
evolving transaction to record the Ledger.
General Journal entry form includes the following main types of Journal: General
Journal; Ledger; Detailed accounting books and cards;
 VAT invoice,
material import and
export receipt

Effect accounting
software

detailed accounting
Public diary books and cards of
raw materials

Ledger Acc 152, detailed summary

6111 of materials

balance sheet
amounts arising

Financial report

Table 6 Raw material bookkeeping process

Note
Record daily
Contrast and check relation
Record at the end of the month or periodically

Forms of recording on computer accounting books

- Every day, the accountant shall base on VAT, materials import and export or the check-
up of raw materials to be used as a basis for book entry, determine Account 152, Debit
and Account 152, Credit to enter data. data entered into the computer according to the
pre-designed tables on accounting software.
- According to the process of accounting software, information is automatically entered
into general accounting books (ledger of Account 152), and detailed raw materials
accounting books and cards
- At the end of the month or any time, accountants perform the operations of closing
(adding books) and preparing financial statements. The comparison with the aggregate
data with the detailed data is done automatically and always ensures the accuracy and
truthfulness of the information entered during the period. Accountants can check and
compare figures between accounting books and financial statements after they have been
printed out. Perform operations to print the report to paper.
- At the end of the month, at the end of the year, general accounting books (ledger of
Account 152) and detailed raw materials accounting books are printed out on paper and
bound for books and carry out legal procedures in accordance with regulations on manual
accounting books.

2.3.2 Features of Accounting for Sales

This is an important part of the company because the company both produces and does
commercial business, so selling is equally important in the business process: sales
accounting at the company includes the main profession :
+ Recognition of sales and output VAT of goods sold
+ Recognition of sales deductions: trade discounts, sales discounts, sales returns.
* Documents used:
- economic contracts
- VAT invoice.
- bill of sale
- good delivery receipt
- minutes of liquidation of economic contracts
- Delivery bill.
- Receipts.
- Payment.
- Debit newspaper, Yes newspaper.
- in addition write warranty cards
* To reflect sales, the company uses the following accounts:
- Account 632: "Cost of goods sold" tracks the cost of goods sold in the period. The
structure of Account 632 is as follows: Debit: Recording cost of goods sold during the
period
Credit: Recognizes cost of goods sold and returned cost of goods sold during the period.
- Account 5112: "Sales of finished products" is used to record sales to customers outside
the enterprise. The structure of Account 5112 is as follows:
Debit: Sales of sales returned at the end of the period, discount of sales carried forward at
the end of the period, trade discounts carried forward at the end of the period, net revenue
transferred to account 911 “Determination of business results "
Credit: Sales of goods made in the period
There are also other related accounts such as
- Account 152 - Materials
- Account 155 - Finished goods.
- Account 111,112 - cash, bank deposits
- Account 131 - receivables from customers
- Account 3331 - Value added tax payable
Customer Salesman Accountant Stocker Treasurer
Purchases

Place Check
orders inventory

Short Enough

Announce
back to SD

Make an
Out of stock
invoice

Bookkeepin
g materials
Recei
ve

Payment
procedur
es Cash coll-
Cash
Make a ection and
payment bookkeepi
receipt
ng

Make a
credit
Transfer

Record cash
and deposit

Unpaid Debt
bookkeeping
Table 7 Sales – retail accounting process
end
 Process of detailed accounting: retail, wholesale goods through warehouse or
produce according to design, order
- Detailed book of accounts 155, 131 ...
• Sell
Revenue recognition
Debit of account 131,111,112: the total amount of money receivable / collected from the
customer
Cr 5112: total selling price without VAT
Cr 33311: Output VAT, usually 10%
• Cost recognition: depending on weighted average method to calculate out-of-stock
price, the software runs according to that principle
Dr 632
Cr 1551
• Collecting sales
Dr 111 (collected in cash), 112 (collected via banks)
Cr 131
Process of General accounting:
- Public diary
- Ledger accounts 155, 131, 511, 632 ...
The order of sales accounting organization at the Company is outlined as follows:
Every day, based on original documents such as sales invoices, warehouse release notes,
economic contracts ... have been checked, the accountant enters the accounting software
related entries. The accounting software will automatically put the data on the detailed
book of goods, cost of goods sold ... in the General Journal, detailed book of Account
632,511 and into the detailed card book depending on the detailed accounting method.
At the end of the month, from the detailed book, the accounting software will process and
synthesize on a detailed summary sheet, and from the General Journal, the figures will be
posted to the Ledger of Accounts 511, 632, 156, 131 and from the Ledger on the balance
sheet arises.
Accounting software self-collates data on the detailed summary sheet and ledger of
accounts. Finally, the arising balance sheet has been prepared with a detailed summary of
the accounting software that will provide sales-related items for the preparation of
accounting reports.

Accounting vouchers

Efect accounting
software

Public diary Detailed book Acc

632,511

Ledger Acc detailed summary of

155,632,511,635,131 Acc 632,511

balance sheet amounts

arising

Financial report

Table 8 Sales bookkeeping process

Note
Record daily
Record at the end of the month or periodically
Contrast and check relation
CHAPTER 3 : EVALUATION ACCOUNTING ORGANIZATION AND SYSTEM
IN FIRM ABC

In terms of both size and management qualifications, Viet Furniture

Manufacturing and Trading Co., Ltd has undergone continuous growth. The organization
has now had a relatively large number of quality workers from the early days of its
establishment with a few employees and obsolete facilities, and the infrastructure has not
stopped. Modernization has been strengthened. All will go forward in the future for the
sake of sustainable growth.. Through my internship at the company, I have accumulated
experience and gave my own assessment below on the work and organization of
accounting operations.
3.1 Evaluation of accounting organization
Advantages
Accounting apparatus with a centralized model is structured reasonably relevant to
business operations, the accounting work is in accordance with the law provisions and the
organization with state policies.
There is direct management and coordination between the Chief Accountant and the
Chief Accountant since it is structured according to the online model, information is
given and synthesized easily, accurately, promptly, also synchronized. Furthermore, the
Chief Accountant will advise the accountants directly, ensuring a seamless coordination
between the accounting operations. Applying this type ensures that leadership focuses on
the company's accounting work, ensuring that the purpose is to provide timely, full and
reliable information on production and business activities.
Dynamic accountants meet the criteria of qualifications and discover developments in
progress, understand quickly when there are guiding circulars and new accounting regime
changes. Overall, Each member is responsible for a specific role, assigned to promote the
promotion of skills in accordance with the skill and qualifications of each individual and
to increase the obligation of the assigned job to contribute positively to the job. The
company's accounting and economic management
Moreover, the accounting software used in the business has made a major contribution to
improving the quality of accounting work, providing quick, precise stability. At the same
time, this accounting application often allows the organization to handle job data ,
creating products with a code framework relevant to the characteristics of the company.
In order to efficiently represent the internal management, the works are tracked in depth
and separately in the comprehensive book.
Drawbacks
While the accounting staff of the organization has a high degree of experience, but certain
roles are not specialized, one person has to perform several different duties, such as
material accounting and warehouse keeper, because there are components of accounting
practice that cannot be standardized. In the meantime, the company's size is increasing
day by day, the amount of transactions is increasing, if the accounting department is not
the head of the accounting department, individuals will face several problems in
accounting. On the other hand, it would also be difficult for newly received accountants
to redistribute the specialization parts, which may cause incorrect accounting and a lack
of synchronization in accounting work.
3.2 Evaluation of the accounting system
Accounting work at the company from the date of its establishment up to now has been
more and more complete in terms of accounting policies, accounting regime is applied
appropriately, consistent with the actual conditions of the type of animation. The size of
the company must comply with the principles of the organization of the accounting plan
and the accounting standards of Vietnam.
- The Company uses the system of accounts and forms consistently according to Decision
200/2014 / QD-BTC.
- The accounting sections are assigned tasks to each accountant, ensuring the right
professional and capacity of each person, maximizing the work of the accountant.
- Regularly update financial regulations
- State accounting to ensure the company applies and complies with the regulations and
laws.
Advantages
About the form of recording
The business uses the general journal type, which is a form of scientific notebook that is
strict, restricted to duplicate documents, and complies with the business features of the
organization. The new accounting degree issued by the Ministry of Finance is. In
accordance with the specialization and division of accounting labor at the Organization,
the use of this type of book ensures high specialization of accounting books. The book
method, however, is complex in form, broad in number and type, inconvenient and
impedes the measurement mechanization and perfecting of data processing machine
accounting. But in compliance with the regulations of the Ministry of Finance and the
State, diary books and tables were absolutely, carefully, clearly and systematically
registered in the business. In addition, according to management requirements, the
accountant also developed a system of comprehensive monitoring books, lists and tables,
making it easy for accountants to track and easily locate details quickly. Actually, there is
less work for accounting activities with the application of accounting software and Excel
apps. When required, the making and printing of books and reports is also done simply
and promptly.
About the accounting account system
In compliance with the Ministry of Finance 's legislation, the organization has a general
account scheme. In addition, the systematic opening of accounts has effectively served
the accounting of each product form, each consumer, and supplier. To meet the needs of
maintaining and using computer accounting, the account system offers full knowledge
about relevant items.
About Financial Statements
On time and in the form specified, company reports are prepared. Reports are submitted
in compliance with the appropriate authorities and the reporting statistics are valid on
objective criteria at the right time.
Regarding the division of accountants.
As a large-scale organization with a lot of work to account for, the challenge as seen in
the above diagram allows accountants to specialize, gain expertise, and manage jobs in
each aspect of their operations. Belong quickly to their part. Depending on the amount of
work produced, the number of accountants responsible for that part varies. It is
reasonably fair to organize the current accounting number corresponding to the
accounting parts. Furthermore, the majority of accountants are young people with
technical skills, passion for the job, always mindful of helping each other build a healthy
working atmosphere to sustain all jobs and also complete on time.
It is important to specialize in accounting which has many benefits, but often it also
makes it difficult for the person in charge of the operations to leave the job for whatever
reason, the replacement needs some time to work. In addition, due to the characteristics
of the accounting profession, most of the successors are female (10 employees), who are
familiar with the work, it is also inevitable that job restrictions, such as pace at work, sick
leave, maternity leave, etc, it is unavoidable and also affect productivity as well. For the
rest of the staff, the job is cumulative, so failures are often inevitable.
About equipment
The business has fully fitted accounting machinery and facilities, most of which use a
separate computer and printer to assist the accounting work, but the efficiency of the
machine has not met the requirements. The quality has been decreased because of being
equipped for a long time, most of them have low configuration to decrease the labor
productivity of the workers in the room.
Regarding the accounting method: Most payment transactions are paid by banks and
cash transfers, ensuring control is quick and easy.
Regarding the application of software accounting in the company:
The accounting department with a computer system linked to the internal network has
contributed to improving accounting performance, especially material accounting, since
the work of material accounting is typically accrued at the end of the month because the
cost of the raw materials to be exported is estimated at that time because the regular
workload is often several operations due to the operations. The efficiency of accounting
is shown to be increased compared to before using the machine. In order to avoid data
loss, passwords are built on the device and comply with the standards of caution and
confidentiality of data storage.
We see that the accounting of materials is carried out reasonably, orderly by examining
the general situation of the material accounting work at the company, ensuring
conformity with the accounting regime in accordance with the company's requirements.
Meeting the management criteria at the same time, providing favorable conditions for the
strict management of imports, exports, inventories, measurement and precision of the
value of the raw materials for each customer.
About the organization of accounting vouchers
Vouchers are arranged according to the regulations of the Ministry of Finance in a fair
and valid manner. All documents are taken from legitimate documents, helping business
leaders handle the financial situation, clarifying personal obligations, ensuring the
concepts at each point of document rotation with respect to document management are
structured very closely. Vouchers and invoices are archived once a month by way of
accounting records. The business also prints informative books and summary books
regularly for signing and archiving.
In addition to assisting the workers in the room, the organization of scientific records
allows the search work quickly and promptly helps the accounting work to be carried out
quickly in the next level. Can find the data on metrics needed for the job quickly
Import and export documents are well developed and the strict circulation procedure is
convenient for importing and exporting products. The processes for imports and exports
are carried out in a fair manner. The inventory of raw materials to be decided by the
planning department on the basis of the proposed plan must be checked in terms of
quantity, consistency, requirements, forms and dispatched materials.
Regarding the price of raw materials, inventory
The price of the raw materials stored in the warehouse is measured on the basis of the
real price, and this approach complies with the assumption that the expense is in
accordance with the actual revenue issued by the accounting regime. The Business
measures, using the weighted average method, the cost of raw materials for inventory.
This approach has the benefit of being quick, easy to do, and acceptable for computer
accounting employees.
Drawbacks
Regarding the accounting of administrative expenses: Currently, both revenue and
operating costs are accounted for in administrative expenses, in addition, no distribution
of sales expenses and corporate management costs have an impact on cost management,
allowing business plans
About the delivery of documents: Sometimes the organization also has a delay in
producing papers, the workload at the end of the duration is accumulated, which may lead
to needless mistakes in the recording work. Accounting, such as incomplete or incorrect
recording, affects the quality and timeliness of information provision, thereby impacting
the unit 's management work.
Regarding reporting: The reporting framework has not paid much attention to corporate
internal governance and in-depth reports, in particular comprehensive reports on
management cost information should be designed for Business performance appraisal
partners are favorable.
In certain work phases (cost classification, general sales analysis, ...), the Organization
has been implementing management accounting, yet there are still several drawbacks as
follows: Not deep, not yet paid data, specifically because there is no model, no outlines,
implementation orientations, and no clear and thorough assignment-accountability also
inadequate
Regarding the provisioning: The debt situation of the company also has a number of
difficult receivables that the company does not have a specialist department to do this
task, which would be very complicated if necessary for accounting work. Participate in
this aspect of the job and the backlog of debt increases
Moreover, some economic transactions are of low value and some vouchers have not
been checked in compliance with the prescribed scheme. These are, in theory, invalid
documents, such as receipts, invoice receipts, advance payment notices, which do not
have the full signatures of the director and chief accountant.
 CONCLUSION
The above is my entire general report, the report is written based on some
documents provided by Viet Furniture Production and Trade Investment Joint Stock
Company with the knowledge that i have observed and learned after the internship at the
Company. The article is presented in 3 parts with content: introduction to the company,
introduction of the accounting apparatus in the Company and with my own assessment of
the accounting apparatus in the Company.
The article is my own subjective opinion based on some documents I have
collected along with the knowledge accumulated during my study at the National
Economics University. Due to the lack of knowledge and the short time being in contact
with the actual accounting operation, the article will inevitably lack errors, I hope to
receive comments and suggestions from Associate Professor Ph.D Le Minh Ngoc to
perfect the report and also my knowledge
I sincerely thank you!