7. LVTN-Bùi Quang Hưng-Tiếng Anh-CQ54 - 21.10

Academy of Finance Graduation thesis
DECLARATION
I hereby declare that this thesis is my work and effort and that has not
been submitted anywhere for any award. Where other sources of information
have been used, they have been acknowledged.
The data and results described in the thesis are derived from the actual
situation of the practice company.
Hanoi, 20 May 2020
Student
Bui Quang Hung
Bui Quang Hung- CQ54/21.10 Page 1

ACKNOWLEDGMENT
Firstly, I would like to show my deep gratitude to my research

supervisor, Mrs. Nguyen Thi Bach Duong, for her patient guidance,
enthusiastic encouragement and useful critiques during the planning and
development of my graduation thesis and for her assistance in keeping my
progress on schedule.
Besides, I also want to thank SK GOLF company limited for giving me

permission to commence this thesis in the first instance, to do the necessary
research work and to use department data. I have furthermore to thank all
accountants at the company who gave and confirmed this permission and
encouraged me to go ahead with my thesis.
Especially, I would like to give my special thanks to my family whose

patient love enabled me to complete this work and my friends from Foreign
Language Faculty for all their help, support, interest and valuable hints.
Finally, because of limited time and knowledge, mistakes are

unavoidable, so I wish to receive more contributions and suggestions to make
my thesis better.

ABSTRACT
In the modern economic world, especially when the number of

bankrupt enterprises is rising; accounting for revenues, expenses and
determine business results have become more and more important to every
company in general, and SK GOLF company limited in particular. Therefore,
I choose the topic “Accounting for revenues, expenses and determine business
results in SK GOLF company limited” for my graduation thesis. It will point
out the importance of having an effective accounting department for revenues,
expenses, and business results.
The main content is shown in three chapters:
Chapter I: Literature review of accounting for revenues, expenses and

determine business results.
Chapter II: Current situation of accounting for revenues, expenses and

determine business results in SK GOLF company limited.
Chapter III: Some suggestions for improving the efficiency of

organizing accounting in the company.
In conclusion, the thesis has already been complete in comparison with

the proposed objective and targets in the introduction.

TABLE OF CONTENT
Introduction............................................................................................................1
1. Rationale....................................................................................................1
2. Aims of the study......................................................................................1
3. Subjects and scope of the study.................................................................2
4. Methodology.............................................................................................2
5. Organization of the study..........................................................................3

determine business results......................................................................................4
1.1. Overview................................................................................................4
1.1.1. Definition........................................................................................4
1.1.2. Requirements management accounting for revenues, expenses and

determine business results.........................................................................5
1.1.3. The tasks of accounting for revenues, expenses and determine

business results..........................................................................................5
1.1.4. The function of accounting for revenues, expenses and determine

business results..........................................................................................6
1.2. Accounting standards govern accounting for revenues, expenses and

determine business results.............................................................................7
1.3. Methods of sales, services provision and payments...............................8
1.3.1. Methods of sales..............................................................................8
1.3.2. Methods of services provision.........................................................9

1.3.3. Methods of payments....................................................................10
1.4. Accounting for revenues, expenses and determine business results....11
1.4.1. Accounting for revenues and revenue deductions.........................11
1.4.1.1. Accounting for revenues........................................................11
1.4.1.2. Accounting for revenue deductions........................................15
1.4.2. Accounting for cost of goods sold (COGS)..................................18
1.4.3. Accounting for selling and administration expenses.....................25
1.4.3.1. Accounting for selling............................................................25
1.4.3.2. Accounting for administration expenses................................27
1.4.4. Accounting for financial income and expenses.............................30
1.4.4.1. Accounting for financial income............................................30
1.4.4.2. Accounting for financial expense...........................................33
1.4.5. Accounting for other expenses and incomes.................................36
1.4.5.1. Accounting for other incomes................................................36
1.4.5.2. Accounting for other expenses...............................................38
1.4.6. Accounting for corporate income tax expense..............................40
1.4.7. Accounting for business result......................................................44
1.5. Systems of accounting forms...............................................................47
1.5.1. General journal..............................................................................47
1.5.2. Journal voucher.............................................................................47
1.5.3. General journal voucher................................................................48
1.5.4. Journal - Ledger............................................................................48

1.6. Accounting for revenues, expenses and business results in the

conditions of machine accounting application............................................48
1.6.1. The need to use information technology in accounting work.......48
1.6.2. Accounting of revenues, expenses and business results under the

conditions of machine accounting application........................................50
CONCLUSION OF CHAPTER I........................................................................53

determine business results in SK GOLF company limited..................................54
2.1. Overview about SK GOLF company limited.......................................54
2.1.1. General information......................................................................54
2.1.2. History and development..............................................................54
2.1.3. Business field and products...........................................................55
2.1.4. Organization..................................................................................56
2.1.5. Accounting system........................................................................57
2.1.5.1. Structure of accounting department.......................................57
2.1.5.2. Accounting form....................................................................59
2.1.5.3. Accounting regime and policies applied................................61
2.1.5.4. System of accounting vouchers..............................................62
2.1.5.5. System of accounting reports.................................................63
2.1.6. Methods of services provision and payments...............................63
2.1.6.1. Methods of services provision................................................63
2.1.6.2. Methods of payments.............................................................63

2.2. Current situation of accounting for revenues, expenses and business

results in SK GOLF company limited.........................................................64
2.2.1. Accounting for revenues and revenue deductions.........................64
2.2.1.1. Accounting for revenues........................................................64
2.2.1.2. Accounting for sales deductions............................................72
2.2.2. Accounting for the cost of goods sold...........................................72
2.2.3. Accounting for selling expenses and administrative expenses.....81
2.2.3.1. Accounting for selling expenses............................................81
2.2.3.2. Accounting for administrative expenses................................84
2.2.4. Accounting for financial income and expenses.............................87
2.2.4.1. Accounting for financial income............................................87
2.2.4.2. Accounting for financial expenses.........................................89
2.2.5. Accounting for other income and other expenses.........................89
2.2.5.1. Accounting for other income..................................................89
2.2.5.2. Accounting for other expenses...............................................89
2.2.6. Accounting for corporate income tax............................................90
2.2.7. Accounting for determine business results....................................90
2.3. Evaluation of accounting for sales and business results in SK GOLF

company limited..........................................................................................92
2.3.1. Strong points.................................................................................92
2.3.1.1. About applying accounting regime........................................92
2.3.1.2. About accounting entries........................................................93

2.3.1.3. About using accounts.............................................................93
2.3.1.4. About accounting books.........................................................93
2.3.1.5. About financial reports...........................................................94
2.3.2. Weaknesses...................................................................................94
2.3.2.1. Accounting software..............................................................94
2.3.2.2. About applying accounting regime........................................95
2.3.2.3. About accounting accounts....................................................95
2.3.2.4. About revenue deduction.......................................................95
2.3.2.5. About prepare accounting reports..........................................96
CONCLUSION OF CHAPTER II.......................................................................97
Chapter III: Some suggestions for improving the efficiency of organizing

accounting in the company..................................................................................98
3.2. Importance and requirements for improving the accounting system for
sales and business result..............................................................................98
3.2.1. Importance.....................................................................................98
3.2.2. Requirements.................................................................................98
3.2.3. Orientation.....................................................................................99
3.2.3.1. About initial accounting.........................................................99
3.2.3.2. About chart of accounts..........................................................99
3.2.3.3. About accounting books.........................................................99
3.2.3.4. About accounting reports.....................................................100

3.3. Some suggestions for improving the accounting system for sales and
business result in SK GOLF company limited..........................................100
3.3.1. Accounting software...................................................................100
3.3.2. About applying accounting regime.............................................101
3.3.3. About accounting accounts.........................................................101
3.3.4. Improving the revenue deduction account..................................102
3.3.5. Improving the preparation of accounting reports........................103
3.3.5.1. Report of cost of goods sold.................................................103
3.3.5.2. Report of selling and administration expenses.....................104
CONCLUSION OF CHAPTER III....................................................................106
CONCLUSION..................................................................................................107
REFERENCES...................................................................................................108

LIST OF ABBREVIATIONS
Number Abbreviation Full phrase
1 Acc Account
2 COGS Cost of goods sold
3 Cr Credit
4 Dr Debit
5 No. Number
6 VAS Vietnamese Accounting Standards
7 VAT Value Added Tax
8 VND Vietnam Dong

LIST OF CHARTS & DIAGRAM & SAMPLES
Flowcharts
1. Flowchart 01 – Accounting entry for direct sales (for company applying

deduction/subtraction VAT method)
2. Flowchart 02 – Accounting entry for direct sales (for company applying

direct VAT method)
3. Flowchart 03 – Accounting entry for sales through agents
4. Flowchart 04 – Accounting entry for trade discounts
5. Flowchart 05 – Accounting entry for sales returns
6. Flowchart 06 – Accounting entry for sales allowances
7. Flowchart 07 – Accounting entry for COGS under perpetual inventory

system (for sales through agents)
8. Flowchart 08 – Accounting entry for COGS under periodic inventory

system (for sales through agents)
9. Flowchart 09 – Accounting entry for COGS under perpetual inventory

system (for direct sales)
10. Flowchart 10 – Accounting entry for COGS under periodic inventory

11. Flowchart 11 – Accounting entry for selling expenses
12. Flowchart 12 – Accounting entry for administration expenses

13. Flowchart 13 – Accounting entry for financial incomes
14. Flowchart 14 – Accounting entry for financial expenses
15. Flowchart 15 – Accounting entry for other incomes
16. Flowchart 16 – Accounting entry for other expenses
17. Flowchart 17 – Accounting entry for corporate income tax expenses
18. Flowchart 18 – Accounting entry for business result
Diagram
Diagram 1.1 Accounting of revenues, expenses and business results in the

condition that an enterprise applies machine accounting
Diagram 2.1: Management of the company
Diagram 2.2: Organization structure of accounting department
Diagram 2.3: Ledger accounting procedures in the form of general journal

with accounting software
Samples
1. Sample 01. VAT invoices
2. Sample 02. Receipt
3. Sample 03. VAT invoice
4. Sample 04. General ledger for Revenue (Acc 511)
5. Sample 05. Goods received note

6. Sample 06. Depreciation schedule
7. Sample 07. Timesheets
8. Sample 08. General ledger for Cost of goods sold (Acc 632)
9. Sample 09. Table of long-term prepaid expenses allocation
10. Sample 10. General ledger for Selling expenses (Acc 641)
11. Sample 11. Golden Life Delux service company’s invoice (VAT)
12. Sample 12. General ledger for Administration expenses (Acc 642)
13. Sample 13. General ledger for Financial income (Acc 515)
14. Sample 14. General ledger of Net income (Acc 911)

INTRODUCTION
1. Rationale
In this modern economic world with many newly established
enterprises that follow a more competitive economic environment, every
company must be flexible and active in their businesses, make as many profits
as possible; else they will fall into bankruptcy. To gain profits, they must
realize the importance of revenue and expenses, then determine the
profitability of the company, besides, the very first objective of every
enterprise is making a profit, so calculating business results is very important
in both forms of accuracy and timeliness. It’s the reason why efficient and
effective accounting management for revenues, expenses and determine
business results plays an important role in the accounting system. SK GOLF
company limited is a company that provides indoor golf practice (screen
golf). This field is new in Vietnam with less competition. It is now one of the
leading companies in this field. Therefore, maintaining its current position
and being the market leader is more important than ever. From this situation,
SK GOLF company limited must have a flexible and effective activities
policy with a well-performed accounting system for revenues, expenses and
business results. So I chose “Accounting for revenues, expenses and
determine business results in SK GOLF company limited” as my graduation
thesis topic.
2. Aims of the study

My study has three objectives:

Firstly, it is to contribute to the background theory of accounting for

revenues, expenses and determine business results, which is done by pointing
out definitions, accounts used and accounting entries for each account related
to determining business results in a services company.
Secondly, it is to illustrate how a company does accounting for

revenues, expenses and determine business results by taking the current
situation at SK GOLF company limited as a case for study.
Thirdly, it is to review the company’s achievements and limitations and

to suggest possible solutions to improve the efficiency of organizing
accounting in the future.
3. Subjects and scope of the study

My study mainly focuses on revenues, expenses and business results –
their definitions, accounts used to do accounting and accounting entries.
Another focus is the accounting method and procedures applied by SK GOLF
company limited. All data and figures belong to accounting fiscal year 2019.
Besides, it is also about preparing financial statements.
4. Methodology
There are two main research methods: qualitative and quantitative
approach that was decided on gathering relevant information from primary
and secondary data sources for the study. The data for the study was collected
from financial statements of SK GOLF company limited (general journals,
ledgers and related vouchers) which is focused on revenues, expenses and
business results. It is the primary data.

The secondary data which were collected from existing literature

formed the literature review of this study. The sources of the secondary data
included books, journals, articles obtained from the internet.
5. Organization of the study

The study comprises three main chapters:

determine business results.

determine business results in SK GOLF company limited.
Chapter III: Some suggestions for improving the efficiency of

organizing accounting in the company.

CHAPTER I: LITERATURE REVIEW OF ACCOUNTING FOR

REVENUES, EXPENSES AND DETERMINE BUSINESS RESULTS
1.1. Overview
1.1.1. Definition
Sales are the transfer of the goods usage right attached to the decision-
making power from the seller to the buyer. In addition, sales are recognized
when the customer makes payment or agrees to pay.
Service provision means the transfer of the right to use the service to
customers and at the same time, it is paid or accepted by customers.
Revenue is the gross inflow of economic benefits during the period

arising from the course of the ordinary activities of an entity when those
inflows result in increases in equity, other than increases relating to
contributions from equity participants.
Expenses are decreases in economic benefits during the accounting

period in the form of outflows or depletions of assets or incurrences of
liabilities that result in decreases in equity, other than those relating to
distributions to equity participants.
Business result is the final result of normal activities and other

activities during the accounting period. Business results in a certain period
may be profit or loss. In case of loss, the business result will be compensated
as regulated and decided by responsible authorities. In the case of profit, the
business result will be allocated as regulated by the financial regime.

1.1.2. Requirements management accounting for revenues, expenses and

determine business results
Revenue and cost have a big role in every business. The management
requirements are set out as follows:
- Strictly manage the sales process with each customer according to each
selling method, payment method, urge customers to pay for goods to fully and
quickly.
- Learn how to properly exploit and expand the market and have policies that
continuously increase revenue and reduce expenses.
- Strict management of selling expenses, administrative expenses, and other

expenses to maximize profits.
- Calculate and determine the business results of each activity, well-

performing its obligations towards the state.
1.1.3. The tasks of accounting for revenues, expenses and determine

business results
To be a tool for the process of management, accounting of revenues,
expenses and business results, it is required to perform well and fully comply
with the following provisions:
- Reflect and record fully, promptly, exactly the current situation and the
fluctuations of each type of service, the price provided, ...
- Reflect and record fully, promptly and accurately the revenues, deductions
of revenue and expenses of each activity in the enterprise, and monitor and
urge receivables from customers.

- Reflect and calculate accurately the results of each activity, monitor the
situation of performance of obligations to the State and the situation of
distribution of results of activities.
- Providing accounting information for the preparation of financial statements

and periodic analysis of economic activities related to the process of sales,
service provision, identification and distribution of results.
1.1.4. The function of accounting for revenues, expenses and determine

business results
Revenue is very important for the entire production and business
activities. First of all, revenue is an important financial source to ensure
covering business costs, ensuring simple reproduction as well as extended
production. Revenue is also a source for businesses to determine their tax
obligations to the state budget. Similarly, the business results of the enterprise
reflect the profit and loss of the enterprise in the period. The accounting of
revenues, expenses and business results helps businesses determine sales
revenue and expenses incurred during the period while helping administrators
have an accurate view of the current situation of the business and make
decisions future. Therefore, accounting requirements in an enterprise must
correctly identify and reflect the business results of its business during the
period.
In order to manage business activities in general as well as revenues,

expenses and business results in particular, there are many different tools in
accounting that are effective tools. In order for the accounting tool to fully
utilize its effectiveness, it requires enterprises to constantly improve more
than the general accounting work such as accounting of revenues, expenses

and determine business results. Therefore, organizing accounting of revenues,

expenses and determine business results is essential to help managers grasp
the operational situation and promote the effective business of the business.
1.2. Accounting standards govern accounting for revenues, expenses and

determine business results
VAS 01: General standard (Promulgated and announced under
Decision No. 165/2002 / QD-BTC of December 31, 2002 of the Minister of
Finance). General standards provide guidelines and guidelines for recording
revenues, costs, revenue factors, cost factors, outcome factors and principles,
and guidelines for the presentation of these factors on Financial statements of
the enterprise.
VAS 02: Inventories (Promulgated and announced under Decision No.

149/2001 / QD-BTC of December 31, 2001 of the Minister of Finance) The
Inventory Standard governs the price determination capital of inventories,
which governs the identification and recognition of provision for devaluation
of inventories.
VAS 14: Turnover and other incomes (Issued and announced under
Decision No. 149/2001 / QD-BTC of December 31, 2001 of the Minister of
Finance) guiding principles and methods of accounting revenue and other
income such as revenue types, time of revenue recognition, methods of
accounting for revenue and other incomes as a basis for recording accounting
books and preparing financial statements

1.3. Methods of sales, services provision and payments

1.3.1. Methods of sales
Currently, enterprises often apply the following sales methods:
(a) Goods wholesale method: a method of selling goods to commercial units

and large-scale manufacturing enterprises. In the wholesale of goods, the
following modes are usually available:
- Mode of wholesale trading via warehouses: means a method of wholesale

goods in which goods must be exported from the enterprises' preservation
warehouses.
- The method of wholesaling goods for direct transport: is the method of

wholesaling goods in which goods sold when purchased from suppliers do not
bring into the enterprise's warehouse but are immediately sold or sold
immediately to customers.
(b) Method of retail sale of goods: a method of direct sale to consumers or

economic organizations or collective economic units in small quantities.
This method includes the following forms:
- Form of centralized retail payment: It is a form of sale in which buying and

selling are collected from buyers and delivery is separated from buyers.
- Retail sales method: Directly collect money from customers and deliver
goods to customers.
- Form of self-service retail: In this form, customers choose the goods that
they need and then bring it to the cashier to pay for the goods, the cashier and
make a sales invoice.

(c) Method of sale by installments: a mode of sale that a commercial

enterprise offers preferential buyers may pay for goods in multiple periods.
Commercial enterprises are entitled to an additional difference between the
installment sale price and the ordinary selling price by the mode of immediate
payment called interest payment by installments. When the commercial
enterprise delivers goods to the buyer, the goods are determined to be
consumed. However, the interest in installments is not recorded in full and
only gradually allocated to financial income in the following periods from the
sale.
(d) Agent selling method: a selling method whereby a commercial enterprise

delivers goods to an agent or consignee to sell goods directly to such
establishments. After the sale of goods, the agent establishment shall pay the
goods to the commercial enterprise and receive a sum of money called an
agent commission. The quantity of goods transferred to the agents is still
owned by the commercial enterprise until the agent pays the sale or accepts
the payment before the sale is completed.
1.3.2. Methods of services provision

Products of service industry in general and affiliate marketing, in
particular, cannot be stored, cannot be consumed elsewhere. Therefore, the
service delivery method is a direct method, directly provided to customers
and customers directly use the service in a certain period of time.
Method of providing the service can be ordered or provide direct

collection service.
- Delivery of services on order:

Usually, customers wishing to use the service will make a deposit,

service business units will conduct a contract or commitment with customers.
When the contract is completed, the customer service is completed, the new
business unit can issue a sales invoice and pay the remaining amount.
- Method of providing the service and collecting money directly:
Under this method, directly provide services and collect money from
guests. The cashier will have to prepare a Sales Report and submit the
proceeds from the accounting and cashier statements.
1.3.3. Methods of payments

There are two typical methods of payment, including direct payment
method and late payment method.
- Direct payment method: After receiving the goods purchased, commercial

enterprises immediately pay the seller, by cash, by bank deposits, by advance
payment, by goods (barter) ... Invoices over 20 million VND must be
transferred according to Circular 26/2015 / TT-BTC in Article 1, Clause 10
amending and supplementing Article 15, Circular 39/2014 / TT-BTC about
the bill selling goods and providing services issued by the Ministry of
Finance.
- Late payment method: The enterprise has received the goods but not yet
paid the seller. The late payment may be made according to the preferential
credit conditions as agreed upon.

1.4. Accounting for revenues, expenses and determine business results

1.4.1. Accounting for revenues and revenue deductions
1.4.1.1. Accounting for revenues
a) Types of revenues: sales revenue, revenue from providing services, revenue
from deposit interest, selling copyrights, dividends, and distributed profit, and
revenue from trading real estates.
b) According to Vietnamese Accounting Standards (VAS) No. 14: Turnover
and other incomes, conditions of recording turnovers:
-An enterprise shall only record turnovers from selling goods if

simultaneously satisfies the following conditions:
 Enterprises have transferred most of risks and benefits associated with

ownership of products, goods to the buyer;
 Enterprises no longer hold the right to manage goods as owners or the
right to control goods;
 Turnovers are determined reliably;
 Enterprises have received or will receive economic benefits from the
sale transaction;
 Costs related to sale transactions may be determined.
- An enterprise shall only record turnovers from providing services if

simultaneously satisfies the following conditions:
 Turnovers are determined reliably;

 Enterprises have received or will receive economic benefits from the
transaction of providing such services ;

 The completed work may be determined at the time of the report;

 Incurred costs for the transaction and the costs to complete the
transaction of providing such services may be determined.
c) Accounting vouchers and invoices used: economic contract, VAT invoice,

normal sales invoice, receipt voucher, payment voucher, other payment
vouchers.
d) Accounts used
Account 511- Revenues from sales and service provisions is used to
record turnovers of enterprises in an accounting period, including turnovers of
selling goods, products and provisions of services for the parent company,
subsidiary company in the same group.
- This account records turnovers of production and trading activities from the
following transactions and operations:
 Sales: Selling products manufactured by business, selling of goods

purchased and real estates invested.
 Providing services: carrying out services agreed in contract for one or
more accounting periods, such as providing transportation or travel
services, leasing of fixed assets in ways of operating lease, turnovers
from construction contract...
 Other turnovers.
- Structure and contents of account 511
Debit side:
 Payable indirect taxes (VAT, excise, export, environmental protection);

 Turnover from returned goods transferred at the end of period;

 Discounts transferred at the end of period;
 Trade discounts transferred at the end of period;
 Transfer of net turnover to account 911 - Income Summary.
Credit side: Revenues from sales of products, goods, real estates invested
and service provision of enterprises performed in accounting period.
Account 511 does not have ending balance
- Account 511 – Turnover from sales and service provisions comprises 6 sub -
accounts:
 Account 5111 – Turnover from sales;

 Account 5112 – Turnovers from finished goods;
 Account 5113 - Turnovers from service provision;
 Account 5114 - Subsidized or price supported turnovers;
 Account 5117 – Turnovers from investment property;
 Account 5118 - Other turnovers.
e) Accounting entries
- For direct sales
Flowchart 01 – Accounting entry for direct sales (for company
applying deduction/subtraction VAT method)ss

Acc 511 Acc 111,112,131,…

(1)
Acc 3331
(2)
Flowchart 01 explanations:
(1) Sales and provisions of services (without VAT)
(2) VAT payable
Flowchart 02 – Accounting entry for direct sales (for company

applying direct VAT method)
Acc 3331 Acc 511 Acc 111, 112, 131

(2) (1)
(1) Sales and provisions of services (with VAT)
(2) VAT payable
- For sales through agents (see Flowchart 03)

Flowchart 03 – Accounting entry for sales through agents

Acc 511 Acc 111, 112, 131 Acc 331 Acc 641
(1) (2)
Acc 3331
(1) Sales of goods (with VAT)
(2) Sales commissions payable to agents (as selling expenses)
1.4.1.2. Accounting for revenue deductions
a) Definition
According to Circular No. 133/2016 / BTC issued on August 26, 2016,

revenue deductions include: trade discounts, sales returns and allowances.
Trade discount is the amount of money that enterprise credited or paid

to customers who bought goods and services in large volume in accordance
with the agreement that the seller will give trade discount to the buyer.
Sales return is the amount of goods sold which have subsequently been
returned due to the following reasons: breaching the commitment or the
economic contract, or in a wrong quantity, quality or specifications.
Sales allowance is a reduction made when the goods are not the same
specifications as those mentioned in the economic contract.
b) Accounting vouchers and invoices used: VAT invoice (adjustable invoice),
record of the sale price reduction.
c) Accounts used

Account 521 - Revenue deductions is used to record the deducted

adjusted amounts in revenue from sales and service provisions incurred in the
period.
Debit side:
 Trade discount accepted to settle for customers.
 Sales allowances agreed for buyers;
 Revenues sales returns of which buyers are refunded or which are

deducted from accounts receivable of customers about sold products,
goods volume
Credit side: At the end of account period, transferring the total trade
discount, sales allowance, revenues of sales returns to account 511 - Revenue
from sales and service provisions to determine net sales of the reported
period.
Account 521 - Revenue deductions do not have ending balance.
- Account 521 comprises 3 sub-accounts
 Account 5211 – Trade discount;
 Account 5212 - Sales returns;
 Account 5213 - sales allowances.
d) Accounting entry
Flowchart 04 – Accounting entry for trade discounts

Acc 111, 112, 131 Acc 5211 Acc 511

(1) (3)
Acc 3331
(2)
(1) Value of trade discounts (without VAT)
(2) VAT payable of trade discounts
(3) At the end of the period, transfer the ending temporary balance of trade
discounts to acc 511
Flowchart 05 – Accounting entry for sales returns
Acc 111, 112, 131 Acc 5212 Acc 511

(1) (5)
Acc 3331
(2)
Acc 632 Acc 155, 156 Acc 111, 112, 131 Acc 641
(3) (4)
(1) Value of sales return (without VAT)
(2) VAT payable of sales return
(3) Put the volume of goods returned into warehouse

(4) Incurred selling expense of goods returned
(5) At the end of the period, transfer the ending temporary balance of sales
return to acc 511
Flowchart 06 – Accounting entry for sales allowances
Acc 111, 112, 131 Acc 5213 Acc 511

(1) (3)
Acc 3331
(2)
(1) Value of sales allowances (without VAT)
(2) VAT payable of sales allowances
(3) At the end of the period, transfer the ending temporary balance of sales
allowances to acc 511
1.4.2. Accounting for cost of goods sold (COGS)
a) Definition
Cost of goods sold is the total cost associated with the sale process,
including cost of goods sold for sale, selling expenses and administrative
expenses allocated to goods sold during the period.
For service providers, the cost of service provision includes staffing
costs and other costs directly related to the provision of services, such as
supervisory costs and related general costs.

b) According to VAS 2 - Inventory, cost of goods sold can be calculated by

the following methods:
 Specific identification method
 Average expense method
 First-in, first-out method
 Last-in, first-out method
- Calculating COGS
Cost of goods sold (COGS) = Expense of goods, services + Selling
expenses+ Administration expenses
c) Accounting vouchers and invoices used: goods delivery note, goods
received note, record of inventory of goods, contract of purchase, bill of sale.
d) Accounts used
Account 632 - Cost of goods sold is used to record cost of goods,

products, services, investment property, costs of production of construction
products (for construction business which are sold during the period.
Furthermore, this account is also used to record costs relating to business of
investment property, such as: depreciation expenses, costs of production,
costs of investment property operation under operating lease method (in case
costs cure is not great), costs of transfer, liquidating investment property.
Structure and contents of account 632
- In case business applies perpetual inventory system.
Debit side:

 Costs price of products, goods, services sold during period.

 Costs of raw materials, materials, part of labor costs in excess of
normal level, and fixed overhead cost unallocated and added to costs of
goods during the period.
 Waste, loss of inventory after excluding compensation received from
responsible individuals.
 Costs of building, of business‘ own made fixed assets in excess of
normal level, which are not added to prime cost of firm‘s own made
tangible fixed assets.
 Provision for devaluation in inventory value (difference between
allowances for decrease in inventory value planned for this year and
redundancies of allowances planned for last year).
Credit side:
 Transferring cost price of products, goods, services sold during period

to account 911 - Income Summary‘‘
 Transferring total costs of investment property business incurred in
period to determine trading results.
 Remission of provision for devaluation in inventory value at fiscal
year-end (negative difference between provision planned for this year
and that of last year)
 Sales returns to be stored
 Remission of accrued expense for real estate determined to be sold (the
difference between the accrued expenses higher than actual costs
incurred).

 Trade discounts, sales allowance received after purchasing consumed

goods.
 The import tax, special excise tax, environmental protection tax
calculated to the value of goods purchased when delivering goods for
sale but such taxes are refunded.
Account 632 does not have ending balances.
- In case business applying periodical inventory system.
For commercial business:
Debit side:
 Cost of goods sold in period

 Provision for decrease in inventory value (positive difference between
provision planned for this year and that of last year).
Credit side:
 Transferring costs price of goods consigned for sales but not yet sold
definitely.
 Remission of provision for inventory decrease at fiscal year-end
(negative difference between provision for this year and that of last
year);
 Closing out cost price of goods delivered to Dr 911 - Income Summary.
For operating business:
Debit side:

 Costs price of beginning inventory of finished goods Inventory;

 Provision for inventory devaluation (positive difference between
provision planned for this year and the provision planned for last year).
 Costs price of finished goods inventory have been stored and services
have been implemented.
Credit side:
 Transferring costs price of ending inventory of finished goods to Dr

155 - Finished goods;
 Remission of provision for inventory devaluation at fiscal year-end
(negative difference between provision for this year and that of last
year);
 Transferring costs price of finished goods delivered for sales, services
determined to be sold in period to Dr 911 - Income Summary.
e) Accounting entries
For sales through agents (consignment sales)
 For perpetual inventory system (see Flowchart 07)
Flowchart 07 – Accounting entry for COGS under perpetual
inventory system (for sales through agents)

Acc 156 Acc 157 Acc 156

(1) (3)
Acc 331 Acc 632

(2) (4)
Acc 133
(1) Sales of finished goods from warehouse
(2) Sales of goods directly to agents not through warehouse
(3) Goods on consignment are returned back
(4) Cost of goods sold transferred to acc 632 at the end of the period
 For periodic inventory system (see Flowchart 08)

Flowchart 08 – Accounting entry for COGS under periodic
inventory system (for sales through agents)
Acc 157 Acc 632

(1)
(2)
(1) The beginning balance of goods on consignment transferred to acc 632

at the beginning of the period

(2) The value of goods on consignment in the period but have not been
sold
For direct sales

 For perpetual inventory system (see Flowchart 09)
Flowchart 09 – Accounting entry for COGS under perpetual
inventory system (for direct sales)
(2)
Acc 156 Acc 632
(1)
Acc 911
(3)
(1) The amount of goods for direct sales from warehouse
(2) The value of goods on consignment in the period which are returned
back to the warehouse
(3) Cost of goods sold transferred to acc 911 at the end of the period
 For periodic inventory system (see Flowchart 10)

Flowchart 10 – Accounting entry for COGS under periodic inventory

(3)
Acc 156 Acc 611 Acc 632 Acc 911
(1) (5)
(4)
Acc 157, 151, …

(2)
(6)
(1) The ending balance of finished goods in stock transferred to acc 611
(2) The value of goods issued to sell in the period
(3) Transfer the value of goods in transit and goods on consignment
(4) At the end of the period, value of goods sold transferred to acc 632
(5) Transfer cost of goods sold to acc 911
(6) The value of goods return
1.4.3. Accounting for selling and administration expenses

1.4.3.1. Accounting for selling
a) Definition: Selling expenses are all expenses incurred in relation to selling
process of goods and services.
b) Accounting vouchers and invoices used: delivery receipt, salary payment
sheet, VAT invoice, Sales invoice, receipt, payment slip, debit note, credit
note, and other vouchers.

c) Accounts used
Account 641 - Selling expenses is used to record expenses actually
incurred in process of selling products, goods, providing services, including
publicity expenses, demonstration expenses, advertising expenses, sale
commission, warranty charges of goods and products (excluding construction
activity), maintenance charges, cost of packing, transportation.
Debit side: Costs incurred relating to process of selling products, goods,
rendering services incurred in period.
Credit side:
 Items reduced selling expense in the period;
 Transferring selling expenses to Dr 911 - Income Summary to calculate

operating results in the period.
- Account 641 comprises 7 sub-accounts:
 Account 6411 - Payroll expenses;
 Account 6412 - Costs of materials, package;
 Account 6413 - Costs of tools, supplies;
 Account 6414 - Depreciation cost of Fixed assets;
 Account 6415 - Costs of warranty
 Account 6417 - Costs of outsourcing services;
 Account 6418 - Other cash expenses.
d) Accounting entry (see Flowchart 11)

Flowchart 11 – Accounting entry for selling expenses
Acc 334, 338,… Acc 641 Acc 911

(1) (7)
Acc 142, 242, 152, 153,… Acc 111, 352,…

(2) (6)
Acc 214
(3)
Acc 352, 154

(4)
Acc 112, 331,…

(5)
Acc 133
(1) Selling staff’s salary, wages and related social insurance, health insurance,
trade union fees…
(2) Expenses and allocation expenses of supplies and tools.
(3) Deprecation of fixed assets used for selling and distribution purposes
(4) Provisions for warranty expenses or warranty expenses incurred without

previous provision.
(5) Services and other expenses in cash.
(6) Reducing selling expenses (Reserve provision…)

(7) Selling expenses allocated and transferred to determine operation result
1.4.3.2. Accounting for administration expenses

a) Definition: Administration expenses are all expenses incurred in relation to
such activities as businesses, administration management, and others which
are carried out in the company in general.
b) Accounting vouchers and invoices used: delivery receipt, salary payment
sheet, VAT invoice, Sales invoice, receipt, payment slip, debit note, credit
note, and other vouchers.
c) Accounts used
Account 642 - General administration expenses used to record
overhead costs of business including salary expenses of business‘
administrative staffs (salary, wages, subsidies,...); social insurance, medical
insurance, labor union expenses, unemployment insurance of administrative
staff, expenses of office materials, labor instruments, depreciation of fixed
assets used for administration, lease rent, license tax, provision for bad debts,
outsourced services (electricity, water, telephone, fax, assets warranty, fire
and explosive accidents,...) other cash expenses (expenses of entertainment,
customer conference...).
Debit side
 General administration expenses actually incurred in period;
 Provision for bad debts, provisions for payables (positive difference

between provision for this period and unspent provision for last
period);

Credit side:
 Items reduced general administration expenses;
 Returning provision for bad debts, provisions for payables (negative

difference between provision for this period and unspent provision for
last period);
 Transferring general administration expenses to account 911 ―Income

Summary.
Account 642 does not have ending balance.
- Account 642 - General administration expenses, comprises 8 sub - accounts:
 Account 6421 - Expenses of administrative staffs;
 Account 6422 - expenses of administrative materials;
 Account 6423 - Expenses of office requisites;
 Account 6424 - Depreciation expenses of fixed assets;
 Account 6425 - Tax, duties, fees;
 Account 6426 - Provisions;
 Account 6427 - Expenses of outsourced services;
 Account 6428 - Other explicit expenses.

Flowchart 12 – Accounting entry for administration expenses

Acc 334, 338,… Acc 642 Acc 911

(1) (9)
Acc 142, 242, 152, 153,… Acc 111, 352,…

(2) (8)
Acc 214 Acc 352

(3) (7)
Acc 111, 333

(4)
Acc 352
(5)
Acc 112, 331,…

(6)
Acc 133
(1) Office staff’s salary, wages and related social insurance, health insurance,
trade union fees…
(2) Expenses and allocation expenses of supplies and tools.
(3) Deprecation of fixed assets used for general administration purposes
(4) Business tax, land rentals and other fees
(5) Provisions for doubtful debts and other provision payables for business
restructuring, loss from risky contracts
(6) Services rendered and cash expenses.

(7) Provision reserved

(8) Reducing administration expenses
(9) Administration expenses allocated and transferred to determine operation
result
1.4.4. Accounting for financial income and expenses
1.4.4.1. Accounting for financial income
a) Definition: Financial incomes are all incomes gained in relation to financial
activities of the company, including :
- Interests: interests on loans, interests on cash in banks, on credit sales,
installment sales, earnings from investment bond, notes, discounts earned
from purchasing goods, services
- Distributed dividends and earnings in stage after the date of investment;
- Revenues from buying or selling activities of short or long-term securities;
Interest of transfer of capital when liquidating contributed capital in joint
venture, capital invested in associate companies, in subsidiary companies and
other capital investments;
- Revenues from other investment activities;
- Gains on exchange rates, including gains from selling foreign currencies;
- Revenues from other financial activities.
b) Accounting vouchers and invoices used: bill, receipts, bank credit note,
deposit interest slip,…
c) Accounts used
Account 515 - Revenues from financial activities is used to record
revenues from interests, copyrights, dividends, distributed income, and other

income from financial activities of enterprises.

Debit side:
 VAT payable under direct method (if any)
 Transferring net revenues from financial activities into account 911-

Income Summary.
Credit side: Revenues from financial activities incurred in the period.
Flowchart 13 – Accounting entry for financial incomes

Acc 911 Acc 515 Acc 111, 112,…

(7) (1)
Acc 112…
Acc 121, 221, 222,…

(2)
Acc 111, 331,…

(3)
Acc 112 …
Acc 129, 229
(4)
Acc 3387
(5)
Acc 413
(6)
(1) Gain from selling and disposing financial investments
(2) Dividend and profit gained in form of new investments.
(3) Payment discount gained.
(4) Gains from foreign exchange difference incurred during the accounting
period
(5) Allocating and recognizing pre – received financial income.
(6) Gains of foreign exchange difference incurred from revaluating monetary
items based on foreign currencies at the end of the fiscal year.
(7) Transferring financial income to determine operation result

1.4.4.2. Accounting for financial expense

a) Definition: Financial expenses are all expenses incurred in relation to
financial activities of the company, including:
- Expenses related to financial investments such as: loss from investments,
other expenses which are not capitalized in the investments
- Borrowing expenses such as: interest
- Expenses related to foreign currencies translation, loss from foreign
exchange rate difference
- Provision for financial investments
- Other expenses related to financial activities
b) Accounting vouchers and invoices used: payment, bank's debit note, loan
interest slip,…
c) Accounts used
Account 635 - Financial costs is used to record financial operating cost
including expenses or losses relating to financial investment activity,
expenses of lending and borrowing, costs of capital contributed to joint
venture, to associates, losses from short-term security transfer, expenses of
security selling transaction; provision for business security decrease,
provision for losses from investment in other units, losses incurred when
selling foreign currency, losses from exchange rate...
Debit side:
 Interests expenses of loan, of credit purchases, of financial lease;
 Losses from selling foreign currency;

 Discounts for buyers;
 Losses from liquidating, transferring investments;
 Loss on exchange rates incurred in period; Losses on exchange rates

revaluated at fiscal year-end of accounts derived from foreign
currencies;
 Provision for decreases in business security price, provision for loss

from investment in other units;
 Expenses of other financial investment activities.
Credit side:
 Return of provision for business security price decrease, provision for

loss from investment in other units (difference between provision
planned for this period and that of last year);
 Items recorded a decrease of financing costs;
 At end of account period, closing out total costs incurred in period to

determine trading results.
Flowchart 14 – Accounting entry for financial expenses

Acc 413 Acc 635 Acc 911

(1) (8)
Acc 121, 221, 222, 223,… Acc 129, 229

(2) (7)
Acc 111, 112
Acc 111, 131,…

(3)
Acc 129, 229

(4)
Acc 111, 335, 242,…

(5)
Acc 1112, 1122,…

(6)
Acc 152, 211,…
(1) Recording losses of foreign exchanges difference incurred due to
revaluation of monetary items based on foreign currencies at the end of the
year
(2) Recording loses due to selling and disposing financial investments
(3) Recording payment discounts paid.
(4) Provision for short and long term investments
(5) Interest paid, allocation of prepaid interests

(6) Losses of foreign exchange incurred due to transactions arising during the
period.
(7) Financial investments provision reserved
(8) Administration expenses allocated and transferred to determine operation
results.
1.4.5. Accounting for other expenses and incomes
1.4.5.1. Accounting for other incomes
a) Definition: Other income is the income generated from activities other than
normal business activities.
- Content of other incomes
 Proceed of disposal of fixed asset;
 Gains from the revaluation materials, goods and fixed asset that are
used to contribute or invest into associates or other long-term
investment;
 Gains from contract compensation by the customers;
 Tax refund from the State Budget;
 Accounts unidentifiable as to whom they are payable;
 Sales-related tips or awards (if any offered by suppliers which are not
included in sales)
 Gifts or donations in cash or in-kind by organizations and individuals;
 Other incomes
b) Accounting vouchers and invoices used: receipt, bank credit note, property
liquidation and transfer record.

c) Accounts used
Account 711- Other income is used to record other income, revenues
not from operating activity of business.
Debit side:
 VAT payable (if any) computed under direct method on Other Income
of business which pays VAT under direct method.
 At end of account period, posting Other Income generated during

period to Account 911 - Income Summary.
Credit side: Other income incurred during period.
Flowchart 15 – Accounting entry for other incomes
Acc 911 Acc 711 Acc 111, 112, …
(6) (1)
Acc 3331
Acc 111, 112, …

(2)
Acc 111, 152

(3)
Acc 331, 338

(4)
Acc 352
(5)

(1) Proceeds from disposal or sale of fixed assets
(2) Penalty gained from partners who break business contracts.
(3) Account receivable which previously – deleted is recovered in the period.
(4) Account payables to un-known creditors
(5) Construction warranty provision reversed
(6) Transferring other income to determine operation result
1.4.5.2. Accounting for other expenses
a) Definition: Other expenses are expenses of activities other than production
and business activities that generate turnover of the enterprise.
- Content of other expenses
 Expenses from disposal and liquidation of fixed assets and their net
book value.
 Losses from revaluation of materials, goods and fixed asset which are
contributed in joint ventures, associates…
 Compensation for breaches of contracts;
 Tax penalty;
 Other expenses
b) Accounting vouchers and invoices used: VAT invoice, payment slip, bank
debit note, record of handling redundant and missing accounts, tax receipt, ...
c) Accounts used
Account 811- Other expenses is used to record expenses incurred from
events or operations separated from normal operation of business.

- Structure and content of account 811

Debit side: Other expenses incurred.
Credit side: At end of account period, posting total other expenses
incurred during period to acc 911 - Income Summary.
Flowchart 16 – Accounting entry for other expenses
Acc 111 Acc 811 Acc 911

(1) (7)
Acc 211, 213 Acc 111, 112

(2) (6)
Acc 214
Acc 111, 112, 152

(3)
Acc 111, 338, 331

(4)
Acc 211, 213

(5)
Acc 214, 224, …
(1) Other expenses in cash arising
(2) Net book value of disposed fixed assets
(3) Other expenses due to disposing and selling fixed assets
(4) Penalty due to breaking business contracts of tax penalty

(5) Difference of revaluation price lower than net book value of the fixed
assets brought to invest in joint ventures or associates
(6) Other expenses reduced
(7) Transferring other expenses to determine operation result
1.4.6. Accounting for corporate income tax expense
a) Definition
Corporate income tax is a direct tax collected on the final business

results of an enterprise.
Income tax expense (or income tax expense) is the total current tax
expense and deferred income tax expense when determining the profit or loss
of a period.
Current business income tax expenses are business income taxes

payables computed on taxable income during year, and current business
income tax rate.
Deferred business income tax expenses are business income taxes

payables in the future, incurred from:
- Recording deferred income tax payables in year;
- Returning deferred business income tax expenses which were recorded in

previous years.
Revenues from deferred income tax are decrease recording deferred

business income tax incurred from:
- Recording deferred income tax expenses during year;

- Returning of deferred income tax payables recorded in previous years.
b) Content of corporate income tax expense

- Each quarter, based on the tax declaration, the accountant records estimated
current income tax into current income tax expense.
- At the end of fiscal year, if the estimated income tax is less than the actual
current income tax to be paid, the accountant should record additional tax into
current income tax expense. In case estimated income tax is higher than actual
income tax to be paid for the year, the accountants should decrease the current
income tax expense by the difference between the estimated income tax and
the actual income tax payable.
- If the entity detects immaterial errors relating to income tax payable of the
previous year the accountants should record the increase or decrease of the
income tax payable of the previous year in current income tax of the current
year.
- At the end of the fiscal year, the accountants should transfer the current
income tax to determine operation result.
c) Accounting vouchers and invoices used: provisional corporate income tax
return, CIT adjustment declaration, CIT finalization return, payment to the
State Budget, and other relevant documents.
d) Account used
Account 821 - Business income tax expenses is used to record income
tax expenses of business, including current income tax and deferred income
tax expenses incurred during year, these expenses will be based to determine
operating results after tax of business in current financial year.

-Structure and content of account 821
Debit side:
 Business income tax expenses currently incurred during year;

 Current business income tax of previous years payable additionally due
to detecting insignificant errors of the previous year recorded an
increase in current business income tax expense of the current year;
 Deferred income taxes expenses incurred during year from recording
deferred income tax payables (positive differential between deferred
income tax incurred in year, and deferred income tax payables which
were returned during the year).
 Recording deferred income tax expenses (positive differential between
deferred business income tax which were returned in year, and deferred
income tax incurred during the year).
 Posting differential between amount of Cr 8212 - Deferred income tax
expenses, which is greater than amount of Dr 8212 - Deferred income
tax expenses‖ incurred in period, to Cr 911 - Income Summary.
Credit side:
 Current business income tax actually paid in year which is smaller than
income tax expenses temporarily payables, will be deducted from
current business income tax expenses recorded during year;
 business income tax payable recorded a decrease due to detecting
insignificant errors of the previous year recorded an increase in current
business income tax expense of the current year;

 Decrease record of deferred business income tax expenses and

recording deferred income tax asset (positive difference between
deferred income tax incurred in year and deferred income tax assets
returned during year).
 Decrease record of deferred income tax expenses (positive differential
between deferred income tax payables which has been returned during
year and deferred income tax payables induced during year);
 Transferring positive difference between current income tax induced in
year, and decreasingly recorded amount income tax expenses in year, to
Account 911 - Income Summary.
 Transferring positive differential between amount at Dr 8212, and
amount at Cr 8212 - Deferred business income expenses‖ induced in
period, to Dr 911 - Income Summary.
Account 821 has no ending balance
-Account 821 – Business income tax expenses, comprises 2 sub - accounts:
 Account 8211 - Current business income tax expenses ;

 Account 8212 - Deferred business tax expenses.

Flowchart 17 – Accounting entry for corporate income tax expenses
Acc 3334 Acc 821 Acc 911

(1) (2)
(3)

(1) CIT payable in the period determined by the enterprise itself
(2) The difference between the temporarily payable CIT is larger than the
payable amount
(3) Transferring CIT expense
1.4.7. Accounting for business result

a) Definition
Results of operating activities is differential between net sales and cost
of goods sold (including products, goods, investment properties and services,
costs of construction products, costs relating to investment property business
activities, such as: depreciation expenses, costs of repairs and upgrading,
operating lease expenses, expenses of liquidating and liquidating investment
property), selling expenses and General administration expenses.
Results of financial activities is differential between revenues and
expenses from financial activities
Results of other activities are differential between Other Income and
other expenses, and income tax expenses.
b) Accounts used
Account 911- Income summary is used to identify and record results of
operating activity and other activities during an accounting year. Results of
operating activities of business include: Results of operating activities, results
of financial activities and of other activities.

Debit side:
 Costs of products, goods, investment perpetration and services which

were sold.
 Costs of financial activities, income tax expenses and other expenses;
 Selling expenses and General administration expenses;
 Profits transferred
Credit side:
 Net revenues from products, goods, investment properties and service

sold in period;
 Revenues from financial activities, Other Income, and decrease record

in business income tax expenses;
 Losses transferred.

c) Accounting entry (see Flowchart 18)
Flowchart 18 – Accounting entry for business result

Acc 632 Acc 911 Acc 511

(1) (5)
Acc 641, 642 Acc 515, 711

(2) (6)
Acc 635, 811

(3)
Acc 821
(4)
Acc 421 Acc 421

(7) (8)
(1) Transferring cost of goods sold
(2) Transferring selling and administration expenses
(3) Transferring financial and other expenses
(4) Recording corporate income tax payable
(5) Transferring net sales and internal sales
(6) Transferring financial and other incomes
(7) Transferring business result to acc 421 in case of profit
(8) Transferring business result to acc 421 in case of loss

1.5. Systems of accounting forms

There are 4 systems of accounting forms: General journal; Journal
voucher; General journal voucher; and Journal - Ledger.
1.5.1. General journal
- The most typical characteristic is that this system uses General journal book
to record all economic and financial activities in time order and in the
relationship with correspondent accounts, then uses information in General
journal to open related ledgers for related accounts.
- System of books: Normal daily journal, General journal, Ledgers for
necessary accounts, and Detail accounts.
- Accounting for revenues, expenses and business results often uses following
books: Sales journal; General journal; Ledgers for Account 511, 641, 642...,
911; Sales detail book; and Detail payment book with customers…
1.5.2. Journal voucher
- The most typical characteristic is that all economic and financial activities of
the company reflected in original vouchers will be classified, accumulated
and formed into the journal voucher book, and then ledgers for related
accounts will be prepared based on the journal voucher.
- Using this form, recording under time order is separate from recording under
systematical order.
- System of books: Journal voucher; Ledgers for necessary accounts; and
Detail books.
- Accounting for revenues, expenses and business results often uses following
books: Journal voucher; Ledgers for Account 511, 641, 642, 911…; Sales
detail book; Detail payment book with customers.

1.5.3. General journal voucher

- This form’s characteristic is that all economic and financial activities
reflected in original vouchers are all classified to record in general journal
voucher, then at the end of the fiscal year, information will be collected from
general journal voucher to ledgers of related accounts.
- System of books: General journal vouchers; Ledgers for necessary accounts;
Detail accounting books; and Others: Allocation table, list table for
calculation…
- Accounting for revenues, expenses and business results uses following
books: General journal voucher; Ledgers for 511, 641, 642, 911…; Detail
sales book; and Detail payment book with customers.
1.5.4. Journal - Ledger
- The most typical characteristic of this form is that Journal - Ledger is used
as the only general book to record all economic and financial activities
chronologically and systematically.
- System of books: Journal - Ledger; Detail books.
- Accounting for revenues, expenses and business results uses following
books: Journal - Ledger; Detail sales book; Detail payment book with
customers.
1.6. Accounting for revenues, expenses and business results in the
conditions of machine accounting application
1.6.1. The need to use information technology in accounting work
As we all know, the basic function of accounting is to provide
information about the economic and financial situation in the business for
managers. The implementation of this function is good or not, first of all,

depends on the regularity, timeliness, and accuracy of the information. Today,

with the development of information technology, putting computers into use
in accounting has been relatively common. Computerization of accounting
not only solves handling problems and provides quick and convenient
information, but it also increases the labor productivity of the accounting
apparatus.
In general, when organizing accounting work by machine, accountants

need to understand the following factors:
- All of the above-mentioned application software can be used as accounting

work for any enterprise using accounting ledgers such as accounting
vouchers, public diary or ledger diary. Therefore, businesses can base on the
actual conditions of the size and qualifications of employees to decide which
accounting software to use and the appropriate form of accounting books.
- A uniform system of coding of accounts and detailed accounting objects

must be set up for the whole enterprise.
- Must select the method to enter accounting data (inputting when making
original documents, inputting data when ending document rotation process,
when importing data into a spreadsheet ...). Any input by any method must be
set up for the database - which contains all accounting information of the
enterprise.
- When the database is available, the accessibility of all types of application

software is very positive. The accounting reports such as lists, ledger
vouchers, ledgers, detailed books, import and export, debt summary tables are
relatively easy to access. Especially some financial statements and

management accounting reports can also apply the software's ability to

retrieve.
- Finally, it is necessary to pay attention to the number of accounting staff and

the accounting profession, computers of the accounting staff, the assignment,
and coordination of work among the various accounting departments as well
as among ministries. Other relevant departments in the business.
1.6.2. Accounting of revenues, expenses and business results under the

conditions of machine accounting application
Encrypt the object
To perform the accounting organization on the computer, it is necessary

to encode, declare and install the relevant objects to ensure a close connection
between information flows.
Encryption is a form of performing classification, symbols, and

classification of objects to be managed. Encryption allows easy identification
and search of objects when calling codes.
Determining the object to be coded is entirely dependent on the

requirements of enterprise administration. Typically, the following objects
should be encoded in the sales accounting and determine the sales results:
customers, goods, vouchers, accounts ... This coding is done through lists.
Determine the category
- Account categories
The accounting system is the backbone of the entire system. Most

accounting information is reflected via accounts. Therefore, the construction

of an accounting system will determine the entire ability to process and

exploit subsequent information, especially in processing accounting data on
the machine.
By systematic declaration and coding, together with the design of states

and connections (which may be a numerical, character, or a combination of
both, depending on the characteristics of the organization's accounting
work). ), the sales account may declare additional sub-accounts through the
following ways:
Approve account numbers and related accounts according to the list of

accounts prescribed by the State to declare corresponding identification codes
depending on the management requirements of enterprises together with
declaration and interpretation. Specifically.
Through the declaration of specific information about the accounts,

declare the relationship between the main account and the detailed account.
- List of documents
The organization, monitoring, management, update, rotation and

handling of documents on a computer system need to be carried out and
strictly comply with the process of document rotation, update, and processing.
Enterprise regulations.
For management, each original document carries an identifying code.

With voucher codes, it is possible to filter and print detailed lists and general
tables for each type of voucher.
- List of customers

This list is used to track details for each department and accounts
receivable of each customer. Each customer is identified by a code called a
customer code. Depending on the size and scope of transactions that
determine the encryption method accordingly and effectively.
- Menu of goods
The management of import, export, and inventory of goods is done

through the list of goods. Each good carries its own code, besides the code,
are other descriptive attributes such as name.
The order of accounting of revenues, expenses, and business results in

the condition that the enterprise applies machine accounting.
Diagram 1.1 Accounting of revenues, expenses and business results

in the condition that an enterprise applies machine accounting
- Advance, record sales of goods providing services

- Calculate and reflect the cost of goods sold.
- Accounting for revenues deductions.
- Accounting of sales expenses and enterprise management expenses.
- Accounting of revenue, income and other expenses ...
Perform operations and determine results

- transferred to determine net revenue.
- transferred expenses, revenue in the period.
Provide information
- Detailed accounting books, general accounting books
- Accounting book of revenue and expenses
- Financial statements

CONCLUSION OF CHAPTER I
By studying chapter 1, we can get the most general knowledge about

accounting for revenues, expenses and determine business results. Help us
understand what is sales, what is determining business results, the relationship
between revenues, expenses and determine business results; or requirements,
the role and duties of accounting for revenues, expenses and determine
business results. It also helps us understand the basic content of accounting
for revenues, expenses and determine business results such as methods of
sales, services provision and payment that are commonly applied by
businesses, accounting records applied in accounting for revenues, expenses
and determine business results or accounting for revenues, expenses and
determine business results under conditions of applying accounting software.
This chapter helps us understand the cost of goods sold, revenues,

revenue deductions, selling expenses, administrative expenses, other income,
and other expenses. In terms of content, accounting method, the account used
helps to create a premise to conduct research on the status of accounting for
revenues, expenses and determine business results at the enterprise. And from
there can give comments to improve accounting for revenues, expenses and
determine business results at the enterprise.

CHAPTER II: CURRENT SITUATION OF ACCOUNTING FOR

REVENUES, EXPENSES AND DETERMINE BUSINESS RESULTS IN
SK GOLF COMPANY LIMITED
2.1. Overview about SK GOLF company limited

2.1.1. General information
- Company name: SK GOLF limited liability company
- Abbreviation: SK GOLF company limited
- Name in Vietnamese: Công ty trách nhiệm hữu hạn SK GOLF
- Trading name: SK GOLF CO., LTD
- Company type: Limited liability company with 2 or more members
- Tax code: 0107747203
- Registration & management: Hanoi Tax Department
- Address: B1 Floor, Unit B1.5A, Golden Palace Building, Me
Tri Ward, Nam Tu Liem District, Hanoi City
- Legal representative: Kim Minkyun
- License date: March 4, 2017 (Has been in operation for 3 years)
- Main industry: Sport facility activities
- Charter capital: VND 10,058,400,000
2.1.2. History and development

SK GOLF company limited is a 100% foreign-owned limited liability
company established in Vietnam under the Investment Registration
Certificate No. 658165016 dated March 2, 2017, issued by Hanoi Department
of Planning and Investment and Business Registration Certificate No.
0107747203 date March 4, 2017, issued by the Business Registration
Department of Hanoi Planning and Investment Department. Accordingly:

charter capital of the company is VND 10,058,400,000 ( Ten billion, fifty-

eight million, four hundred thousand Vietnamese dongs).
With almost 3 years operating the business in Vietnam, SK GOLF

company limited has earned a reputation in the services field. In the company,
the slogan is “bring customer satisfaction through best quality service” so the
company has many loyal clients and so far the company has successfully
finished projects.
2.1.3. Business field and products

As stated in the Investment License, the business line of the company are:
- Golf instruction;
- Rental of indoor golf practice (screen golf);
- Services providing food and drinks.
In year 2019, main business activities is services.
- The main consumption market of SK GOLF Co., Ltd. is the entire Hanoi
area.
- The main customer is young people
Business process of the company

- First, the company will purchase machinery and equipment, warehoused
goods for business purposes. Besides, the sales department will find
customers through marketing.
- Then customers come and experience golf and dining services at the
company.

- Finally, the accounting department will make an invoice to customers and

collect money.
2.1.4. Organization
Diagram 2.1: Management of the company
Director
Engineering Technology Accounting Department Business and Human

Department Resources Department
Department

Because of small size, the enterprise has three departments:

Engineering Technology Department, Accounting Department, Business and
Human Resources Department.
The director is Mr. Kim Minkyun. He is the legal representative;

determining and implementing policies and making decisions on development
strategy, about the company’s annual business plan.
The engineering technology department is basically the unit responsible

for technical activities in the enterprise:
- Carry out the design, technical supervision of the equipment, machinery;
- Advice directors on technology and techniques;
- Evaluate the norms and product quality.
The accounting department has tasks to:

- Build a system of accounting and statistical system of the whole unit is

increasingly complete, consistent with the requirements of business
operations and current accounting and financial regimes’
- Record, reflect fully, promptly, accurately and truthfully the economic

operation arising in the course of production and business according to the
prescribed accounting regime;
- Detect and promptly report violations of assets and violations of financial

regulations.
The business and human resources department has tasks to:
- Prepare and deploy business plans;
- Deal directly with the customer system, the supplier system;
- Perform sales activities to bring revenue;
- Recruiting appropriate personnel for the company.
2.1.5. Accounting system

2.1.5.1. Structure of accounting department
The form of organization of accounting applied by SK GOLF company
limited is concentrated form.
Diagram 2.2: Organization structure of accounting department

Chief accountant
General accountant Cashier
The accounting department includes three people: chief accountant,

general accountant and cashier.
Chief accountant is the person who covers all accounting work of the
company, decides everything in the accounting department, advises and
assists the director and is the responsible person of the company.
Chief accountant also tracks cash and bank deposits, revenue and
liabilities.
General accountant responsible for the synthesis of documents, supply

and check the accuracy and completeness of accounting information before
the chief accountant to set up financial statements. At the same time, general
accountant make notes, manages and keeps daily track inventory.
At the end of the month, general accountant calculating wages and

social insurance for employees and completing one report of “Allocating
wages and social insurance”, and asset allocation.
Cashier is a person who collects money and pays money when there are
transactions related to cash arising, daily prepares cash book and compares
cash book with payment accounting.

2.1.5.2. Accounting form

The company applies accounting forms of general journal with
accounting software.
A computerized accounting system provides speed, accuracy, reliability

and helps in recording, summarizing and analyzing the accounting
transactions with the best suitable method and moreover make the reporting
so easy to the top-level management.
Diagram 2.3: Ledger accounting procedures in the form of general

journal with accounting software
Accounting documents - Book, accounting

card details
Computer - Detailed general
In which: Daily Software ledger.
- General diary
- Ledger
At the end of month or - Balance sheet that
arises …
Accounting documents
summary table
period
Introduce the accounting software the company is applying:

FINANCIAL
STATEMENT

MISA SME.NET – the accounting software is designed for small and

medium-sized enterprises. It fully satisfies all demands of business activities
such as: Cash Management, Bank Management, Procurement, Sales, Invoice
Management, Taxes, Inventory, Fixed Assets, Instruments & Tools, Payroll,
Production Cost, Contracts Management, Budgets, and General Ledger.
Misa accounting software has many advantages:
- Misa accounting software is one of the pioneering applications in supporting

warehouse management, accounting, taxes, sales, ... helping employees and
managers save more than 50% of the time, increase job performance.
- Help businesses meet the reporting schedule for the tax department on time,
accurately and clearly.
- The processes in accounting are detailed and clear. The output reports
become easier to understand. It helps business leaders make timely decisions.

Managers also easily understand what the parameters shown on Misa

accounting software are.
- Fast and timely evaluation in real-time helps businesses promptly handle the
company's financial problems.
- The data is automatically backed up, the process of storage and data
recovery is easy. It helps you avoid the risks when data problems occur.
When there is a change in accounting personnel, you do not have to worry
about finding and processing data.
2.1.5.3. Accounting regime and policies applied

- The company has performed accounting word according to the enterprise
accounting regime of Vietnam issued together with Circular No.
200/2014/TT-BTC dated 22/11/2019 of the Ministry of Finance on the
“Guiding enterprise accounting regime” and Circular No. 53/2016/TT-BTC
dated 21/03/2016 of the Ministry of Finance on guidelines, amendments of
some articles of Circular No. 200/2014/TT-BTC.
- The accounting period is the month, counting from the first day to the end of
the last day of the month.
- The company applies accounting forms of general journal with accounting

software.
- The accompanying financial statements are presented in Vietnam Dong

(VND), under the historical cost convention and in accordance with
prevailing accounting standards of Vietnam, accounting system for

enterprises of Vietnam and other legal regulations related to preparation and

presentation of the financial statements.
- Recognition principle of tangible assets: at historical cost (original cost).
- Method of depreciating tangible assets: Tangible fixed assets are depreciated

using the straight-line method over their estimated useful lives, in accordance
with Circular No 45/2013/TT-BTC dated 25/4/2013 issued by Ministry of
Finance.
- Depreciation period:
Depreciation period ( years)

Machinery , equipment =
06−08
- SK GOLF Co., Ltd is applying the deduction VAT method.
- Recognition principle of inventory: Inventory is recognized at historical

cost.
- Method of accounting for inventory: Periodic inventory method.
- Method of valuing inventory: Specific identification method.
- Account system applied at SK GOLF Co., Ltd comply with the provisions of
Decision No.15/2006/QD-BTC of the Ministry of Finance.
2.1.5.4. System of accounting vouchers

- For cash: receipt voucher, payment voucher…
- For inventory: goods receipt note, goods dispatches note…

- For fixed assets: fixed assets delivery and receipt notes, fixed assets disposal
minutes…
- For wages and salaries: timesheet, payroll slip…
- For sales: VAT receipt, journal voucher…
2.1.5.5. System of accounting reports

- Balance Sheet (Form B01 – DN)
- Income Statement (Form B02 – DN)
- Cash Flow Statement (Form B03 – DN)
- Notes to Financial Statements (Form B09 – DN)
2.1.6. Methods of services provision and payments

2.1.6.1. Methods of services provision
Services provision method of SK GOLF Co., Ltd. is a method of
providing direct collection services.
Method of providing services and collecting money directly: According

to this method, SK GOLF company limited directly provides services and
collects money from customers. The cashier will have to prepare a Sales
Report and submit the proceeds from the accounting and cashier statements.
Types of services the company provides are: Indoor golf practice and
on-site catering services.
2.1.6.2. Methods of payments

- SK GOLF Co., Ltd uses both payment methods: cash payment and non-cash
payment (transfer via bank account).

 Direct payment in cash:
According to this method, when a buyer uses services from SK GOLF

Co., Ltd., the customer will pay immediately to the business in cash.
 Payment via bank:
The method of payment via bank is widely used because it is simple,
cost-effective, convenient for customers to use, fast payment speed, wide
scope of application, and significantly reduces the amount of cash in
circulation. If agreed by SK GOLF Co., Ltd., the buyer will record the debt to
pay the transfer within the agreed date.
2.2. Current situation of accounting for revenues, expenses and business

results in SK GOLF company limited
2.2.1. Accounting for revenues and revenue deductions
2.2.1.1. Accounting for revenues
- Content: Revenue at the company includes revenue from indoor golf
practice activities, and from food and beverage services.
- Time of recording revenue: At SK GOLF Co., Ltd, the time of revenue is

determined when the customer pays for golf and dining services.
Based on the service contract and the provisions of VAS 14, the time of
revenue recognition is recorded at the time of issuing VAT invoice.
- Documents used include: Receipt, VAT invoice, bank credit note.
- Account used: Company use account 511- Revenues from sales and service
provisions, open account details 5113 - Turnovers from service provision.

Related account: account 111, account 112, account 131 - details for
each customer, account 33311- output VAT.
- Accounting books used: general journal, general ledger …
- Steps of accounting for revenues
 Step 1: Issue VAT invoices
When the customer pays, accountant will issue a VAT invoice. The
VAT invoice is made in 3 copies:
- Contact 1: save
- Contact 2: delivery of customers
- Contact 3: internal
*) Revenue accounting process:
In order to reflect the service provision operation, the accountant issues

a VAT invoice to customers then customers pay in cash or by bank for use
company's services.
Example: On November 5, 2019, the company had a sales invoice for

the customer used indoor golf practice services and total sales amount is
100.000 VND (include 10% VAT). The customer paid in cash. Here are the
VAT invoice and receipt issued by SK GOLF company limited.

Sample 01. VAT invoices

Sample 02. Receipt
 Step 2: Voucher input
After issuing VAT invoices, the accountant responsible for sales will
open the accounting system and start to input necessary journal vouchers.
Accounting entries


Example: On November 12, 2019, the company had a sales invoice for
Nokwon C&I Co., Ltd used indoor golf practice services and food and drinks
services and total sales amount is 1.122.000 VND (include 10% VAT).
Nokwon C&I Co,. Ltd paid by bank. Here is the VAT invoice issued by SK
GOLF company limited.
Sample 03. VAT invoice

Accounting entries

At the end of the month, accountants make the transfer on accounting

software account 511 to account 911 to determine the result of service
provision in the period. These figures will be reflected in ledger account
511,911 and Income statement.
Sample 04. General ledger for Revenue (Acc 511)
Unit: SK GOLF company limited Form S03b-DN

(Issued in accordance with Circular No.
Address: B1 Floor, Unit B1.5A, Golden
200/2014 / TT-BTC December 22, 2014
Palace Building, Me Tri Ward, Nam Tu
by the Ministry of Finance)
Liem District, Hanoi City
GENERAL LEDGER FOR REVENUE (Acc 511)
From 01/11/2019 to 30/11/2019
Unit: VND
Voucher General Journal Amount

Account
Date Description No. of No. of
Code Date code Debit Credit
page line
A B C D E G H 1 2
Beginning balance
1/11 BH 1/11 Invoice 0038289 1111 900 000
…………………………………..
5/11 BH 5/11 Invoice 0038316 1111 90 909
…………………………………..
12/11 TTNH 12/11 Invoice 0038363 1121 1 020 000
…………………………………..
30/11 BH 30/11 Invoice 0039060 1111 500 000
30/11 30/11 Transfer to 911 911 257 200 898
Total incurred amount 257 200 898 257 200 898
Ending balance
Financial Manager Chief Accountant Prepared by

(Sign, full name) (Sign, full name) (Sign, full name)

2.2.1.2. Accounting for sales deductions

The company doesn’t apply any kinds of sales deductions such as sales
returns, trade discounts or sales allowances. Therefore, the net revenue from
service provision is the revenue of that activity without any deduction.
2.2.2. Accounting for the cost of goods sold

The company has two services that are indoor golf practice services and
food and drink services.
Cost of goods sold is equal to total cost of service labor, depreciation

expense of machinery and equipment and the cost of materials.
- Vouchers used: Goods receipt note, Goods dispatch and internal delivery
note, VAT invoice, …
- Accounts used: 632 – Cost of goods sold
- Accounting books used: General journal, General ledger for COGs (account
632)…
- Inventory costing method is specific identification.
- Content: Cost of goods sold is reflected in the General journal, General

ledger for account 632, in terms of quantity and value for each type of service.
However, SK GOLF Co., Ltd applies the inventory costing method of specific
identification; therefore this table is prepared at the end of each month.
- Steps of accounting for cost of goods sold
 Step 1: Issuing goods receipt note and goods dispatch and internal
delivery note

For goods into the warehouse
When goods are brought to the warehouse’s gate, the storekeeper will
check the quantity, quality and value of goods based on VAT invoices and
related documents. After that, the statistician will prepare and sign in the
goods receipt note. This voucher is printed in two copies: The first one is to
save in the warehouse, and the other is sent to accounting department.
For goods out of stock
In the case of goods for sales, only after VAT invoice, sales contract
and related appendixes are checked by the storekeeper, will goods be brought
out of stock. In the case of goods for internal use, a warehouse officer will
issue an internal bill. Goods for internal use will be calculated according to
specific identification method. This case is very rare.
 Step 2: Preparing General ledger of COGs
In this General ledger, the warehouse officer will calculate the book
ending balance based on the beginning balance and the number of goods
purchased during the month. This task is done at the end of each month by the
warehouse officer.
Example: Process of calculating the cost of goods sold.

Sample 05. Goods received note

Accounting entries

Sample 06. Depreciation schedule

CÔNG TY TNHH SK GOLF
Địa chỉ:
MST: 0107747203
KHẤU HAO TSCĐ
2019
Nguyên
TK Thgian đưa giá Nguyên giá tăng Thời Giá trị PB Giá trị còn lại Giá trị còn lại
STT Tên TK CP SL GTcần PB
ĐƯ vào sử dụng (năm trong năm gian PB 1tháng 2018 2019
Tháng 10 Tháng 11 Tháng 12
trước)
II MÁY MÓC THIẾT BỊ
1 Máy chiếu nhập từ HQ 2112 632 9 01/05/2017 309.025.102 72 309.025.102 4.292.015 257.520.922 4.292.015 4.292.015 4.292.015 240.352.862
2 Máy chơi golf 2112 632 9 01/05/2017 4.155.194.535 96 4.155.194.535 43.283.276 3.635.795.223 43.283.276 43.283.276 43.283.276 3.462.662.119
0 0
0 0
PHƯƠNG TIỆN VÂN TẢI
III
TRUYỀN DẪN
TỔNG CỘNG - 4.464.219.637 168 4.464.219.637 47.575.291 3.893.316.145 47.575.291 47.575.291 47.575.291 3.703.014.981
Người lập Kế toán trưởng

(Ký, họ tên) (Ký, họ tên)

Accounting entries

Sample 07. Timesheets

Công ty TNHH SK GOLF Mẫu số: 02-LĐTL
Địa chỉ: Unit B1.5, tầng hầm B1,
tòa nhà Golden Palace, P. Mễ Trì,
(Ban hành theo QĐ số
48/2006/QĐ-BTC
ngày 14/09/2006 của Bộ
trưởng Bộ Tài Chính)
BẢNG TÍNH TIỀN LƯƠNG

Tháng 11/2019
Đơn vị tính: Việt Nam Đồng
Ngày
Các khoản trích tính vào chi phí DN Các khoản trích trừ vào lương Giảm trừ gia cảnh
Tổng
Chức công Lương Thuế Thực
STT Họ và tên thực
Lương TNCT TNTT
vụ đóng BH KPCĐ BHXH BHYT BHTN BHXH BHYT BHTN Người phụ TNCN lĩnh
tế Thực Tế Cộng Cộng Bản thân Tổng
(2%) (17,5%) (3%) (1%) (8%) (1,5%) (1%) thuộc
Nguyễn Thị Nhân viên

01 26 4.500.000 4.500.000 90.000 787.500 135.000 45.000 1.057.500 360.000 67.500 45.000 472.500 9.000.000 9.000.000 4.500.000 0 0 4.027.500
Phượng cấp 2
Trần Thị Nhân viên

02 26 4.500.000 4.500.000 90.000 787.500 135.000 45.000 1.057.500 360.000 67.500 45.000 472.500 9.000.000 9.000.000 4.500.000 0 0 4.027.500
Hương cấp 2
Nhân viên
03 Hoàng Thị Hải 26 4.500.000 4.500.000 90.000 787.500 135.000 45.000 1.057.500 360.000 67.500 45.000 472.500 9.000.000 9.000.000 4.500.000 0 0 4.027.500
cấp 2
Nhân viên
04 Ngô Thị Ánh 26 4.500.000 4.500.000 90.000 787.500 135.000 45.000 1.057.500 360.000 67.500 45.000 472.500 9.000.000 9.000.000 4.500.000 0 0 4.027.500
cấp 2
Tổng cộng 104 18.000.000 18.000.000 360.000 3.150.000 540.000 180.000 4.230.000 1.440.000 270.000 180.000 1.890.000 36.000.000 0 27.000.000 18.000.000 0 0 16.110.000


 Step 3: Sending all papers to accounting department

After collecting all relevant information and figures, the warehouse officer
will send all of them to the accounting department. The assigned accountant
will record cost of goods sold at the end of each month.
Sample 08. General ledger for Cost of goods sold (Acc 632)

200/2014 / TT-BTC December 22, 2014
GENERAL LEDGER FOR COST OF GOODS SOLD (Acc 632)
From 01/11/2019 to 30/11/2019

Unit: VND
Account
page line
A B C D E G H 1 2
Beginning balance
30/11 NVL 30/11 Raw materials costs 154 33 504 577
30/11 NC 30/11 Labor costs 154 22 230 000
30/11 KH 30/11 Depreciation expense of fixed assets 154 47 575 291
30/11 30/11 Transfer to 911 911 103 309 868
Ending balance

2.2.3. Accounting for selling expenses and administrative expenses

2.2.3.1. Accounting for selling expenses
In 2019, selling expenses only included long-term prepaid expenses
allocation.
- Vouchers used: Table of long-term prepaid expenses allocation.
- Accounts used: 641 – Selling expenses
The company doesn’t use sub-account.
- Accounting books used: Ledger of account 641, general ledger of account
641, selling expenses report, report of other selling expenses…

Example: In November 2019, selling expenses only included long-term prepaid expenses allocation.
Sample 09: Table of long-term prepaid expenses allocation
CÔNG TY TNHH SK GOLF

MST: 0107747203
BẢNG PHÂN BỔ CHI PHÍ TRẢ TRƯỚC DÀI HẠN TÍNH VÀO CHI PHÍ BÁN HÀNG
NĂM 2019
Thời
TK Thời gian 2018 2019
gian GT phân
STT Tên đối Thành tiền đưa vào sử
phân bổ 1 tháng
ứng dụng Còn lại 2018 Tháng 1 Tháng 2 Tháng 3 Tháng 4 Tháng 5 Tháng 6 Tháng 7 Tháng 8 Tháng 9 Tháng 10 Tháng 11 Tháng 12 Tổng 2019 Còn lại 2019
bổ
BÀN CAFE
1 THEO HĐ 641 3.634.546 31/05/2017 36 100.960 1.716.306 100.960 100.960 100.960 100.960 100.960 100.960 100.960 100.960 100.960 100.960 100.960 100.960 1.211.520 504.786
0001714
2 - - - - - - - - - - - - - - -
3 Tổng 641 3.634.546 100.960 1.716.306 100.960 100.960 100.960 100.960 100.960 100.960 100.960 100.960 100.960 100.960 100.960 100.960 1.211.520 504.786
Người lập Kế toán trưởng

(Ký, họ tên) (Ký, họ tên)

- Accounting entries
Sample 10. General ledger for Selling expenses (Acc 641)

200/2014 / TT-BTC December 22, 2014
GENERAL LEDGER FOR SELLING EXPENSES (Acc 641)
From 01/11/2019 to 30/11/2019
Unit: VND


Account
page line
A B C D E G H 1 2
Beginning balance
30/11 MH 30/11 Long-term prepaid expenses allocation 242 100 960
30/11 30/11 Transfer to 911 911 100 960
Total incurred amount 100 960 100 960
Ending balance

2.2.3.2. Accounting for administrative expenses

In the company, administrative expenses include prepaid expenses,
salary expenses, utility expenses, tools and equipment expenses.
- Vouchers used: short-term prepaid expenses allocation, VAT invoice,
receipt, …
- Accounts used: 642 - Administration expenses
The company doesn’t use sub-account.
- Accounting books used: General Ledger of account 642, administration
expenses report, and report of services and report of other administration
expenses, …
Example: On November 2, 2019, SK GOLF Co., Ltd received an October
Electricity bill from Golden Life Delux service company limited. The
company paid by bank deposit.
Sample 11. Golden Life Delux service company’s invoice (VAT)

VAT Invoice
Form no:GTKT3/002
Copy 2: For customer
Sign: NH/18P
No: 0000007
Date 2 month 11 year 2019
Company’name: Golden Life Delux service company
Tax code: 0105528622
Address: Garden house A 45, Urban Trung Hoa- Nhan Chinh, Trung Hoa Ward,
Cau Giay District, Hanoi
Bank account:
Buyer:
Company’name: SK GOLF
Tax code: 0107747203
Address: Floor, Unit B1.5A, Golden Palace Building, Me Tri Ward, Nam Tu
Payment method: CK Bank account:
Name of goods and
No Unit Quantity Unit price Amount
services
1 October electricity bill 1 14 723 602 14 723 602
Total (before VAT) 14 723 602

VAT rate: 10% Vat amount: 1 472 360
Total amount 16 195 962
Total amount (in words): Sixteen million one hundred ninety-five thousand nine
hundred and sixty-two dong

Accounting entries

Sample 12. General ledger for Administration expenses (Acc 642)

200/2014 / TT-BTC December 22, 2014
GENERAL LEDGER FOR ADMINISTRATION EXPENSES (Acc 642)
From 01/11/2019 to 30/11/2019
Unit: VND

Account
page line
A B C D E G H 1 2
Beginning balance
1/11 CPTT 1/11 Short-term prepaid expenses 242 90 909
…………………………………..
16/11 MH 16/1 Payment for electricity bill 1111 16 195 962
…………………………………..
30/11 MH 30/11 Office tools & small equipment 153 987 200
30/11 30/11 Transfer to 911 911 308 264 128
Ending balance

2.2.4. Accounting for financial income and expenses

2.2.4.1. Accounting for financial income
At the company, the financial income is mainly from interest at banks,
because the company does not invest in other financial activities.
- Accounting account: The company uses account 515 to reflect bank interest.
The account does not have a level 2 detail account

- Accounting voucher: bank statements, credit notes.
- Accounting book: ledger of account 515, detail book of account 515.
Example: On November 24, 2019, the accountant received a notice of

interest from BIDV bank with the interest amount for the month being VND
11.469. Accountant records the transaction

Sample 13. General ledger for Financial income (Acc 515)

200/2014 / TT-BTC December 22, 2014
GENERAL LEDGER FOR FINANCIAL INCOME (Acc 515)
From 01/11/2019 to 30/11/2019
Unit: VND

Account
page line
A B C D E G H 1 2
Beginning balance
24/11 TGNH 24/11 Bank interest in October 1121 11 469
30/11 30/11 Transfer to 911 911 11 469
Total incurred amount 11 469 11 469
Ending balance

2.2.4.2. Accounting for financial expenses

In 2019, SK GOLF Co., Ltd. do not generate any financial expenses.
2.2.5. Accounting for other income and other expenses

2.2.5.1. Accounting for other income
In 2019, SK GOLF Co., Ltd. do not generate any other income.

2.2.5.2. Accounting for other expenses

Other expenses incurred at the company include payments for the
company's catering services, which are not eligible for deduction when
calculating corporate income tax. In November 2019, SK GOLF Co., Ltd. do
not generate any other expenses.
2.2.6. Accounting for corporate income tax

Current corporate income tax expense is the income tax amount an
enterprise must pay to the state after determining the taxable income
generated in the period. SK GOLF Co., Ltd determines the following
corporate income tax:
Payable CIT = Taxable income x 20%
Corporate income tax expense is recognized in Account 821: "Current

corporate income tax", which is the amount of corporate income tax payable
based on the taxable income of the year and the current corporate income tax
rate onions (20%).
The company has just been established since 2017. In the early years of
establishment, company has to spend a large amount of money to complete
equipment, technical facilities and infrastructure, leading to increased costs,
thereby making the profit for the business negative so the enterprise does not
have to pay corporate tax.
2.2.7. Accounting for determine business results

Main business activities of SK GOLF company limited is services, so
the business result is from revenues from indoor golf practice activities, and

from services provide food and drinks. Besides, there are some other incomes
such as financial incomes …
- Accounts used: 911 - Net income
- Accounting books used: General ledger of account 911, and income

statement
- Steps of accounting for determining business results
Monthly, the accounting system will update the debit and credit sides
of account 911 from the ending balance in the debit side of accounts 632, 641,
642, 811 and the ending balance in the credit side of accounts 511, 515, 711.
After that, the ending balance of account 911 will be transferred to the
account 421 – Retained earnings.

Sample 14. General ledger of Net income (Acc 911)
Unit: SK GOLF company limited Form S03a-DN

200/2014 / TT-BTC December 22, 2014
GENERAL LEDGER FOR NET INCOME (Acc 911)
From 01/11/2019 to 30/11/2019
Unit: VND

Account
page line
A B C D E G H 1 2
Beginning balance
30/11 PK 30/11 Transfer net sales 5113 257 200 898
30/11 PK 30/11 Transfer financial income 515 11 469
30/11 PK 30/11 Transfer costs of goods sold 632 103 309 868
30/11 PK 30/11 Transfer selling expenses 641 100 960
30/11 PK 30/11 Transfer administration 642 308 264 128
30/11 30/11 Transfer retained earnings 911 (154 462 589)
Total incurred amount (154 462 589) (154 462 589)
Ending balance

2.3. Evaluation of accounting for sales and business results in SK GOLF

company limited
2.3.1. Strong points
2.3.1.1. About applying accounting regime
Accounting for revenues, expenses and determine business results has
ensured consistency in terms of scope and method of calculation, some
economic standards between the accounting department and other related

departments and divisions. Almost incurred selling and administration

expenses are totally collected and displayed in the income statement and notes
to financial statements. This helps point out mistakes in determining net sales
and net income for the company. All transactions are recorded completely,
timely and matched with accounting requirements. Periodic accounting
system is applied, which saves a lot of time and effort for accountants.
2.3.1.2. About accounting entries

All original vouchers issued by SK GOLF company limited are suitable
with Ministry of Finance’s decisions as well as managerial needs. Invoices
and vouchers are issued only after collecting enough documents and meeting
all sales recognitions. Invoices and vouchers are arranged and stored
chronologically, which facilitates future examination and uses. Reports
related to providing services status, selling expenses and administration
expenses are prepared weekly, therefore it’s easier for managers to review and
consolidate.
2.3.1.3. About using accounts

SK GOLF company limited is now using the chart of accounts stated in
circular No. 200/2014/TT-BTC by Ministry of Finance. Besides, the company
also issues some sub-accounts for easier check-up, recording and reviewing.
2.3.1.4. About accounting books

The company uses the accounting form of General Journal. This form
is suitable for a computerized accounting system rather than the manual one.
Therefore, applying an appropriate accounting system has contributed to
productivity increase. Each of the five persons in the accounting department
is responsible for different accounts and books. This task allocation helps to

increase the consistency in recording books and facilitate the examination and
comparison at the end of the fiscal years. Sales reports are formed weekly by
subject and by model, which helps managers to catch the status of the
providing service. In addition, SK GOLF company limited doesn’t apply
any sales deductions, which makes the accounting entries for sales easier,
simpler and minimizes the possible mistakes. Thanks to that, managers can
easily realize the present status and predict the future consumption level, and
then draw sound decisions.
2.3.1.5. About financial reports

All financial statements used in SK GOLF Co., LTd have the same
form stated by Ministry of Finance. These forms are clear, logical and easy-
to-follow.
2.3.2. Weaknesses
Every coin has two sides. Despite changes to meet the managerial
requirements and changes by Ministry of Finance, SK GOLF Co., Ltd also
has some weaknesses. Now, after carefully studying the accounting system
for sales and services, I can point out some weaknesses as follows.
2.3.2.1. Accounting software

SK GOLF Co., Ltd is using General Journal with Misa accounting
software old version which is not updated until now. Therefore, it has the
following weaknesses.
When extracting sales accounts account receivables 131 to excel files,

they only displayed the customer column in code, not the full names. It will
be a problem if someone reads the sales report without knowing the full
names of customers. Moreover, this makes it more difficult to manage

account details 131 because they do not know which debts are due and which
are overdue, causing enterprises to be appropriated capital.
Old software also makes data processing slow and often error-prone.
2.3.2.2. About applying accounting regime

Although the periodic accounting system saves a lot of time and effort,
this requires a manual check-up at the end of the fiscal year. It is widely
known that there are a lot of stuff things for accountants to complete at the
end of the fiscal year such as preparing financial statements, printing ledgers,
rearrange files… Therefore, if not effectively prioritizing their to-do lists,
accountants could not submit financial statements timely.
2.3.2.3. About accounting accounts

For account 641 – Selling expenses and 642 – Administration expenses,
there are no sub-account.
This leads to more complicated checks, the costs are not classified in detail.
Therefore, managers do not know what kind of expenses account for a large
proportion, making it difficult for management accounting.
2.3.2.4. About revenue deduction

SK GOLF Co., Ltd has no sales deduction such as trade discount, sales
return or sales allowances. Therefore, sales deduction accounts are not in use.
This is a weakness of the business because if you take advantage of

revenue deduction, especially the trade discount will stimulate consumption
to gain greater benefits from having more sales invoices with revenue amount
more bigger than the discount amount.

2.3.2.5. About prepare accounting reports

SK GOLF Co., Ltd applies the inventory costing method of specific
identification. After calculating the cost of goods sold the assigned accountant
immediately books the cost of goods sold into account 632. In this step, there
will exist some mistakes if the accountant books the wrong data.
Every month, the assigned accountant has to prepare report of selling

and administration expenses in detail according to managerial requirements.
However, if two reports are prepared separately, it will be useless when the
managers want to compare selling and administration expenses.

CONCLUSION OF CHAPTER II
Based on the overview of accounting for revenues, expenses and

determine business results from chapter 1, chapter 2 begins to clarify the
issues of accounting for revenues, expenses and determine business results at
SK GOLF company limited. This chapter has given an overview of
accounting for revenues, expenses and determine business results, namely the
development of the company, the organization of business structure, the
organization of the management apparatus. , the characteristics of the
company's accounting work and the duties of each department, how the
company records revenues, expenses and determine business results in 2019
are quite complete and reasonable with the characteristics of the business,
make sure to provide timely information.
However, there are some limitations mentioned in the implementation

process. From these limitations and positives, we can offer some suggestions
for improving accounting for revenues, expenses and determine business
results at the company including requirements and principles. A number of
solutions to perfect accounting for revenues, expenses and determine business
results in chapter 3.

CHAPTER III: SOME SUGGESTIONS FOR IMPROVING THE

EFFICIENCY OF ORGANIZING ACCOUNTING IN THE COMPANY
3.2. Importance and requirements for improving the accounting system

for sales and business result
3.2.1. Importance
When Vietnam joined WTO and changed to a market-oriented
economy, most companies are required to pay more attention to their
revenues, expenses and business results. Therefore, accurate, timely, complete
accounting information is very important for their existence. For these
reasons, it is necessary to enhance and develop an effective accounting
system for revenues, expenses and business results. Besides, the more
complicated business activities are, the more complex accounting entries are.
So, the possible accounting system must be changed flexibly, in both form
and content to adapt to changes.
3.2.2. Requirements
In enhancing accounting for revenues, expenses and determine business
results, the company must comply with following requirements:
- Ensuring to follow regulations and laws on accounting issued by Ministry of

Finance;
- Being suitable for the company’s characteristics and managerial

requirements;
- Saving time, money and effort;
- Providing timely, complete and accurate accounting information.

3.2.3. Orientation
3.2.3.1. About initial accounting
Initial accounting is the process of recording, booking all economic
transactions into accounting vouchers, which are the base for accumulation
and conclusion. Initial accounting is helpful only when fulfilling all such
steps as determining what voucher is needed, how many vouchers will be
formed, who is responsible for the vouchers, steps of transferring these
vouchers.
3.2.3.2. About chart of accounts

The current chart of accounts used in most Vietnamese enterprises is
announced by the Ministry of Finance. It contains 9 groups of on – balance
sheet accounts and 7 off-balance-sheet accounts. The reflected content,
structure and recording methods in these accounts are decided by the Ministry
of Finance in advance, which every enterprise must compile with.
However, the arrangement and usage of this chart of accounts are up to

the enterprises. Therefore, there will be some mistakes if the enterprise has
applied in the wrong way or opened unnecessary sub-accounts or had no
management on the chart usage.
3.2.3.3. About accounting books

In order to reflect the consumption status, some accounting books must
be issued monthly, quarterly and yearly. What books will be issued is
dependent on the accounting form applied in the enterprise. Recording,
accumulating and systemizing accounting information to form financial
reports is the biggest phase in financial accounting with a huge number of
tasks to do. This phase needs the assigned accountants to be very good at

booking. Therefore, the application of a system of accounting books

compatible with production scope and characteristics as well as the
enterprise’s managerial level will promote accounting productivity, provide
enough and helpful information for decision-making processes.
3.2.3.4. About accounting reports

Every company must prepare financial reports in order to consolidate
and display accounting information in an effective and easy-to-read way. For
providing services activities, the final result is shown in the income statement
including revenues and expenses. In accordance with the accounting
department and managerial requirements, financial reports will be prepared
monthly or annually. In conclusion, how to enhance the accounting system for
revenues, expenses and business results depends on the accounting
department’s performance, the enterprise’s requirements, the regulated
accounting decisions by Ministry of Finance and the changes in the whole
economy and its markets.
3.3. Some suggestions for improving the accounting system for sales and
business result in SK GOLF company limited
3.3.1. Accounting software
Nowadays, there are many companies updating accounting software.
SK GOLF Co., Ltd is using General Journal with Misa accounting software
old version which is not updated until now. Therefore, it has some following
weaknesses.
When extracting sales accounts account receivables 131 to excel files,
they only displayed the customer column in code, not the full names. And the
old version makes data processing slow and often error-prone.

Therefore, it is necessary to update to a newer version to have better

and faster accounting tools as well as more convenient management of
accounting accounts.
3.3.2. About applying accounting regime

Although the periodic accounting system saves a lot of time and effort,
this requires a manual check-up at the end of the fiscal year. With a huge
number of business activities, accountants are always busy, especially at the
end of each month and at the end of the fiscal year. In addition, the
accounting department has only 3 persons in which one – chief accountant is
responsible for examining, checking accounting entries and preparing
required reports, and two others are responsible for different tasks. There is
only one accountant in charge of sales and business results. She has a huge
number of tasks to do. Therefore, it is very important to allocate tasks more
effectively to accountants. There are two ways to solve this problem: First is
to recruit a new accountant to share some tasks with her. Second is to let
another accountant in the department help her at the end of each month in
preparing accounting reports.
3.3.3. About accounting accounts

Opening the third-level accounts. For account 641 – Selling expenses
and 642 – Administration expenses, there are no sub-account. Therefore, I
think it would be better if there are other sub accounts, it will help the
accounting become faster and more accurate.

For account 641, for example

Account English name Vietnamese name
No.
641 Selling expenses Chi phí bán hàng
6411 Payroll expenses Chi phí nhân viên bán hàng
6413 Costs of tools, supplies Chi phí dụng cụ, đồ dùng
6414 Depreciation cost of Fixed assets Chi phí khấu hao TSCĐ
6415 Costs of warranty Chi phí bảo hành
6417 Costs of outsourcing service Chi phí dịch vụ mua ngoài
6418 Other cash expenses Chi phí bằng tiền khác
For account 642, for example
Account English name Vietnamese name
No.
642 Administration expenses Chi phí quản lý doanh nghiệp
6421 Expenses of administrative staffs Chi phí nhân viên quản lý
6423 Expenses of office requisites Chi phí đồ dung văn phòng
6424 Depreciation cost of Fixed assets Chi phí khấu hao TSCĐ
6425 Tax, duties, fees Chi phí thuế, phí và lệ phí
6426 Provisions Chi phí dự phòng
6427 Costs of outsourcing service Chi phí dịch vụ mua ngoài
6428 Other cash expenses Chi phí bằng tiền khác
3.3.4. Improving the revenue deduction account
SK GOLF Co., Ltd has no sales deduction such as trade discount, sales
return or sales allowances. Therefore, sales deduction accounts are not in use.
There are two ways to solve this problem: First is to delete these accounts.
Second is to apply sales deduction. There are two reasons why this way is

much better. The first reason is that the enterprise doesn’t need to alert the
Ministry of Finance about their deleting these accounts, which follows a lot of
complicated administrative procedures. The last but not least reason is that
sales deduction is one useful way that helps the enterprise promote its
providing services activities and increase the gross profit.
In my opinion, the company should use trade discounts to stimulate

consumption and as analyzed earlier, its benefits are huge. Trade discounts
should be applied to customers with large golf hours, 2 hours or more with a
1-5% discount percentage.
Accounting entries:
Dr 5211
Dr 3331
Cr 111, 112, 131
3.3.5. Improving the preparation of accounting reports

3.3.5.1. Report of cost of goods sold
Cost of goods sold is one of very important criteria in distribution
phase and determining the net profit. SK GOLF Co., Ltd applies the inventory
costing method of specific identification. After calculating the cost of goods
sold the assigned accountant immediately books the cost of goods sold into
account 632. In this step, there will exist some mistakes if the accountant
books the wrong data. Therefore, to avoid mistakes and to have evidence for
future review, the accountant must prepare the report of cost of goods sold
every month.

3.3.5.2. Report of selling and administration expenses

Every month, the assigned accountant has to prepare report of selling
and administration expenses in detail according to managerial requirements.
However, if two reports are prepared separately, it will be useless when the
managers want to compare selling and administration expenses because the
two accounts have the same sub-accounts.
I can propose a sample of report of selling and administration expenses
as follows.
SK GOLF Co., Ltd
Address: B1 Floor, Unit B1.5A, Golden Palace Building, Me Tri Ward, Nam
Tu Liem District, Hanoi City
REPORT OF SELLING AND ADMINISTRAION EXPENSES
Unit: VND
Page 1 of 1
No. Description Accounts
641 642
Beginning balance of November 2019
1 Salaries and bonuses
2 Social insurance
3 Health insurance
4 Selling expenses - Material, packing cost
5 Selling expenses - Tool cost
6 Administration expenses - Stationery cost
7 Administration expenses - Office tools &
small equipment
8 Depreciation expenses

9 Outside purchasing service cost others

10 Other cash disbursement expenses
11 Other expenses
12 Transfer to 911
Total incurred amount
Ending balance of November 2019

CONCLUSION OF CHAPTER III
Through chapter 1 and chapter 2, we have mastered the common

theoretical basis as well as the actual situation of the company. Chapter 2
helped to point out the positives and limitations of accounting for revenues,
expenses and determine business results at the company. Since then, chapter 3
has given the requirements and principles for perfecting accounting for
revenues, expenses and determine business results at SK GOLF company
limited. Then is to provide solutions that the company needs to implement
such as to ensure the accuracy of the profit and loss, to focus on key products
that bring high economic efficiency; Input invoices should be declared
urgently to avoid deductible tax losses; setting up provision for diminution in
the price of goods sold, receivable bad debts ...
However, the above solutions should be based on the actual situation of

the company. On the other hand, consistent with the regulations, policies and
regimes of the State from which to complete accounting for revenues,
expenses and determine business results at the company.

CONCLUSION
After an internship at SK GOLF company limited, researched and

learned about the fact of accounting work at the company, I have obtained an
overview of the situation of organizing an accounting system of the company,
the tasks needed to do part of the accounting; From there, a better
understanding of the theory was learned in the period of sitting on the school
seat. Through that, the completion of accounting is especially important.
Because in the field of economics, accounting is a management tool that helps
companies to put economic efficiency. And the indispensable requirement for
a quality operational accounting machine in any condition is the qualification
of the account keeper, besides the need to be able to flexibly operate the
accounting regulations into the peculiarity of The unit, contributing to
improving the quality of accounting planning. I have covered the business of
the company as well as understand the structure and the way of accounting of
the company.
In addition, in the process of business of each business, maximize

revenue and minimize expenses are always the most important economic
targets that the managers are leading attention to. To ensure the existence and
development for business, showing the efficiency of production and business,
accurate accounting, increased profits are the work that businesses are aiming
for. Therefore, accounting for revenues, expenses and evaluation business
results in the enterprise in general, SK GOLF company limited, in particular,
is a necessary problem, which comes from the current practical requirements.

REFERENCES
1. Prof. Dr. Ngô Thế Chi and Dr. Trương Thị Thủy, Financial Accounting,
Financial Publisher, 2008.
2. Mai Ngoc Anh, PhD and Nguyen Thi My Trinh, MA, Financial
Accounting Textbook
3. SK GOLF Co., Ltd – Annual Financial Report 2017 – 2019.
4. Journal of Financial Accounting Research
5. Vietnamese accounting standards.
6. Enterprise accounting law
7. Circular 200/2014 / TT-BTC dated 22/12/2016 of the Ministry of Finance.
8. Circular 133/2016 / TT-BTC dated 26/08/2016 of the Ministry of Finance.
9. Websites:
- www.vneconomy.vn
- www.danketoan
- http://ktpt.edu.vn
- http://webketoan.com
- http://thuvienphapluat

7. LVTN-Bùi Quang Hưng-Tiếng Anh-CQ54 - 21.10

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Academy of Finance Graduation thesis

Hanoi, 20 May 2020

Bui Quang Hung

Bui Quang Hung- CQ54/21.10 Page 1

Firstly, I would like to show my deep gratitude to my research

Besides, I also want to thank SK GOLF company limited for giving me

Especially, I would like to give my special thanks to my family whose

Finally, because of limited time and knowledge, mistakes are

Bui Quang Hung- CQ54/21.10 Page 2

In the modern economic world, especially when the number of

The main content is shown in three chapters:

Chapter I: Literature review of accounting for revenues, expenses and

Chapter II: Current situation of accounting for revenues, expenses and

Chapter III: Some suggestions for improving the efficiency of

In conclusion, the thesis has already been complete in comparison with

Bui Quang Hung- CQ54/21.10 Page 3

2. Aims of the study......................................................................................1

3. Subjects and scope of the study.................................................................2

5. Organization of the study..........................................................................3

Chapter I: Literature review of accounting for revenues, expenses and

1.1.2. Requirements management accounting for revenues, expenses and

1.1.3. The tasks of accounting for revenues, expenses and determine

1.1.4. The function of accounting for revenues, expenses and determine

1.2. Accounting standards govern accounting for revenues, expenses and

1.3. Methods of sales, services provision and payments...............................8

1.3.1. Methods of sales..............................................................................8

1.3.2. Methods of services provision.........................................................9

Bui Quang Hung- CQ54/21.10 Page 4

1.3.3. Methods of payments....................................................................10

1.4. Accounting for revenues, expenses and determine business results....11

1.4.1. Accounting for revenues and revenue deductions.........................11

1.4.1.1. Accounting for revenues........................................................11

1.4.1.2. Accounting for revenue deductions........................................15

1.4.2. Accounting for cost of goods sold (COGS)..................................18

1.4.3. Accounting for selling and administration expenses.....................25

1.4.3.1. Accounting for selling............................................................25

1.4.3.2. Accounting for administration expenses................................27

1.4.4. Accounting for financial income and expenses.............................30

1.4.4.1. Accounting for financial income............................................30

1.4.4.2. Accounting for financial expense...........................................33

1.4.5. Accounting for other expenses and incomes.................................36

1.4.5.1. Accounting for other incomes................................................36

1.4.5.2. Accounting for other expenses...............................................38

1.4.6. Accounting for corporate income tax expense..............................40

1.4.7. Accounting for business result......................................................44

1.5. Systems of accounting forms...............................................................47

1.5.1. General journal..............................................................................47

1.5.2. Journal voucher.............................................................................47

1.5.3. General journal voucher................................................................48

1.5.4. Journal - Ledger............................................................................48

Bui Quang Hung- CQ54/21.10 Page 5

1.6. Accounting for revenues, expenses and business results in the

1.6.1. The need to use information technology in accounting work.......48

1.6.2. Accounting of revenues, expenses and business results under the

CONCLUSION OF CHAPTER I........................................................................53

Chapter II: Current situation of accounting for revenues, expenses and

2.1. Overview about SK GOLF company limited.......................................54

2.1.1. General information......................................................................54

2.1.2. History and development..............................................................54

2.1.3. Business field and products...........................................................55

2.1.5. Accounting system........................................................................57

2.1.5.1. Structure of accounting department.......................................57

2.1.5.2. Accounting form....................................................................59