abbreviation (1) (3)
DESCRIPTION
abbreviationTRANSCRIPT
Name: Bui Thanh Huong
Class : Auditing
Student code: 11121841
ABBREVIATION
LIST OF TABLES
LIST OF FIGURES
PREFACE
As Vietnam – a developing country has entered the new modern era of economy and
technology, the demands of product and service consumption in various field. Especially
when our country conduct the "Industrialization - Modernizing" broadly and
comprehensively, economic development is being carried out speedily and human
resources have played a very important role in the development of the country recently
which requires a large amount of professional customer service. Thus, the need for
learning foreign languages leads to the outburst in the establishments of language
schools. Among those language schools, Language Link Vietnam which is a English
teaching center has 20 successful years of operating in Vietnam thanks to well-trained
and excellent staffs including accounting department.
More specifically, during those 20 years, Language Link VN has always ranked 1st for
profit and sales revenues. The reason behind this success is that any business must
control input and output with their best effort, which will be supported or even decided
effectively by the accounting profession, especially when the competitiveness among the
enterprises is becoming sharper, more intense and severe. Being deeply aware of the
importance of accounting, Lac Hong Investment Company has also consider accounting
focus and improvement as a vital stage in its stable development strategy.
After the time practicing at Language Link Viet Nam Company, I had the opportunity
to learn more about the characteristics of accounting in practice besides applying the
knowledge learned at school by the best way. Overall, I will introduce you the basic
accounting system in the company generally. Besides Introduction and Conclusion, the
report has three chapters:
Chapter 1: Overview of the company
Chapter 2: Accounting department and accounting system
Chapter 3: Some remarks on financial accounting management.
Special thanks go to Dr , teacher in School of Accounting and Auditing, National
Economics University and colleagues in accounting department of Language Link Viet
Nam Company for their patience, understanding and enthusiastic guidance for me in
completing this report.
Chapter 1: OVERVIEW OF LANGUAGELINK VIET NAM COMPANY
Establishment and Development of Language Link Viet Nam Company:
Give some basic information of Language Link Viet Nam Company:
+ Transaction name: Language Link Viet Nam Company.
+ Director: Mr. GAVAN IACONO.
Lines of business: Education.
Headquarters: No.62, Yen Phu street, Nguyen Trung Truc ward, Ba Dinh district, Ha Noi
city
Tel: (+84) (4) 39273399
As a member of the International Language Link Group (UK), Language Link Vietnam is
also part of Language Link's network coverage throughout the UK, Russia, and China.
Language Link Vietnam company is also a strategic partner of international education
group Navistar, NCC, ETS, IIG Vietnam, and more than 30 universities worldwide
reputation.
Language Link International established with headquarters in London, UK .Language
Link Viet Nam is the first educational institution in Vietnam to bring English language
teaching programs according to international standards, creating a prerequisite step to
help you reach the advanced education and qualifications are internationally recognized.
Language Link Vietnam and keeps on working to become the organization of teaching
English is the best known, as well as address TOEIC, TOEFL and IELTS reputation for
you in Vietnam. It have been operating in Vietnam for nearly 20 years, and will continue
to do so for years to come as well. Now, Language Link Viet Nam have four schools in
Ha Noi, one school in Ho Chi Minh city.
With operations in the history of nearly 20 years, Language Link Vietnam is the first
educational institution in Vietnam to bring English language teaching programs
according to international standards, creating a prerequisite step to help reach out to
education and advanced degrees are internationally recognized. With top quality
education, Language Link Vietnam committed to the program easy to understand and
effectively to students of various ages and different backgrounds.
Language Link Vietnam keeps on working to become the organization of teaching
English is the best known, as well as address TOEIC, TOEFL and IELTS reputation.
Language Link Viet Nam has stated its values on the way growing are ethic, quality,
respect, and sustainability, which can be seen as serving customers with high standard
set, treating employees with high encouragement and trust, as well as planning and acting
sustentative for the future development. In order to expand and develop the company,
many subsidiaries and associates are established in many fields of business.
Characteristics of the Business Operation of Language Link Viet Nam company:
Functions and Responsibilities:
Activities of Language Link Viet Nam Company includes provide English course:
+ English for very young Learners
+ English for Primary
+ English for Secondary
+ English for Academic
+ TOEFL Preparation
+ TOEIC Preparation
+ Corporate training
+ IFY
+ GET
+CELTA
+ English for very young Learners : The VYL program at Language Link was developed
exclusively for our students by experts in early childhood development and language
learning. Targeted to match the developmental pace of children aged 4 to 6 ½ years,
students in our VYL program learn English the way native speakers learn it – by using it.
Language Link provides Very young learners need a safe, fun and comfortable learning
environment with a lot of individual attention from teachers and TAs. In this
environment children can smoothly progress through the developmental stages all
children go through – like developing their fine motor skills, as well as the various stages
of literacy – first learning to recognize single letters, then recognizing whole words in
English and finally learning to write.
+ English for Primary: we use the Communicative Method, internationally recognized
best practice in English language teaching. Students learn English the way native
speakers learn English – by using it. We teach grammar in both theory and practice,
through lessons that are dynamic, interactive and engaging, which will get your child
communicating in English with confidence. In Language Link’s English for Primary
Students program students are also exposed to international exams of English for the first
time. Our communicative approach to English teaching, coupled with ongoing practice
in international test material, fully prepares your child for entry into secondary school.
- English for elementary students: Language Link is the only English training center in
Hanoi that meets both your secondary student’s academic needs. At Language Link, we
teach English both in theory and practice, familiarizing students with the test material,
they will see on their end of year and high school entrance exams while at the same time
improving their English the way natives do – by using it. And Language Link includes
tailor made writing practice for our students, allowing them to improve this vital skill
through practice that is engaging and culturally relevant to Vietnamese teens.
+ English for Academic: The English for Academic Purposes program at Language Link
gives students the academic skills they need to succeed in any International Foundation
Year or university program, whether here in Hanoi or overseas. Both language and non-
language based skills – like critical thinking – are practiced to an international standard,
yet are still relevant to university study in Vietnam.
- TOEFL Preparation: The TOEFL preparation courses at Language Link continue the
Academic English pathway with three course options for students of varying levels,
meeting their TOEFL iBT needs no matter their target score. TOEFL is accepted by
more than 9,000 colleges, agencies and other institutions in over 130 countries so
students who plan to study overseas, or simply want to learn at a Western style university
in Vietnam, can prepare for their exam at Language Link. Nearly all of the assessment
for Language Link’s TOEFL preparation courses is done in an actual ETS test center, so
when it comes time to take the real exam, our students will have already experienced
what test conditions are like, adding to their level of comfort and confidence. Whether
you want to study overseas or just want to impress friends and family with your English
level as proven on an international exam which has been taken by more than 30 million
people worldwide, Language Link has the TOEFL preparation course for you.
- TOEIC Preparation: The TOEIC preparation courses at Language Link provide two
course options for students with lower or higher target scores. TOEIC is used as a
benchmark for promotion and hiring in many of the biggest companies in Vietnam.
University students to satisfy their English language requirement also use it. LLV’s +
TOEIC Prep courses can prepare both types of student for their TOEIC exam. Nearly all
of the assessment for Language Link’s TOEIC preparation courses is done in an actual
ETS test center, so when it comes time to take the real exam, our students will have
already experienced what test conditions are like, adding to their level of comfort and
confidence.
+ The Professional English program: The Professional English program at Language
Link focuses on skills and topics related to the workplace for working people or
university students planning to enter the workforce upon graduation. The Professional
English program at LLV also has a strong focus on TOEIC test taking skills , which
including the offer of practice tests in a real ETS test center for students enrolled in
certain courses – because TOEIC is the main benchmark test used by Vietnamese
corporations for hiring and promotion, as well as a way to fulfill the language
requirement at many Vietnamese universities.
Features of the Business Operation:
1.2.3. Process of Producing Goods:
1.3 Organizational Structure of Language Link Viet Nam Company:
- Board of Director: Working on behalf of the owners of the company, implements the
rights and obligation of the owners of the company; acts on behalf of the company to
exercise the right and obligation of the company; represent as to be liable to the law and
the owners as of the company. For the performance of the power and duty assigned under
the provisions of the new Enterprise law and other relevance laws . Rights, obligations,
duties and specific working mode of the Board of Director for the company’s owners
shall comply with the provisions of the charter of the company and the relevant laws.
- Deputy Director: Deputy Directors are responsible for all business activities of the
company before Board of directors and Government about obligations to Government,
the equity as well as the employees’ conditions. Directors may decide to appoint,
dismiss, reward and discipline subordinates. They also operates and controls economic
plans, accounting procedure, paybacks, settles debts and deals with economic issues of
the company with stakeholders....
- SMT : SMT includes four schools in Ha Noi city and Ho Chi Minh city which provides
English course directly for customers.
Gavan -Director
Lam –Deputy Director
Hang –Deputy Director
SMT Corp Dept
Aca Dept
F&A Dept
SL Dept
CELTAIFY Dept
S&M Dept
- Academic Department: Academic department devoted to a particular academic
discipline. This department designs the program of the course, prepares the books and
materials for teacher, reports, and certificates , checks attendant of the class.
-Financial Accounting Department : Financial Accounting Department advises the
director on the financial operations of the company and takes responsible to the law and
the director for the accuracy and truthfulness of the financial performance of the
company. Moreover, Financing Accounting Department also manages and utilizes funds,
assets in accordance with as law’s requirements and makes full payment for the
compensation and welfare of laborers; deceives and managing.
- Sales and marketing department
- Corporate department: Corporate department specializes in designing and
implementing English training programs for both local and international corporations, as
well as for government agencies and non-governmental organizations. They offer
language proficiency courses to help executives and their staff communicate more
effectively in the global marketplace, courses range in level from Beginner all the way to
Advanced. Their past and current clients include the following: the Bank for Investment
& Development in Vietnam (BIDV), EVN Genco power generation, General Electric
Company ltd, VINACOMIN coal and mining corporation, Canon, Vietnam Bank for
Agriculture and Rural Development ….
- IFY department: IFY (International Foundation Year ) department which forms the first
year of a suite of integrated program for those international students who have the
potential and motivation to succeed, but who do not yet have the formal qualifications
required for entry to level 1 of a University of Leeds undergraduate degree program.
- School link department: This department links with many primary and secondary
schools in Ha Noi and supply English course for them.
- CELTA: This department accredited CELTA training centre in Hanoi, offering custom-
built facilities and top-quality trainers.
Financial Position and Operational Results of Language Link Viet Nam Company:
Items 2014 2013 2012
Current Assets 38,280,339,431 46,299,705,269 48,042,569,589
Total Assets 53,170,684,040 61,732,512,429 66,725,145,968
Current Liabilities 28,916,842,386 32,109,721,373 33,648,886,921
Total Liabilities 46,843,877,101 52,579,856,196 53,836,695,343
Stockholders’ Equity 57,481,806,939 57,547,656,232 89,278,450,625
Table 1.2. Operational Results in 2014, 2013, 2012 (VND)
Items 2014 2013 2012
Revenues 215,635,744,857 201,534,671,477 187,434,551,659
Income before Tax 165,419,153,431 150,903,189,952 140,866,558,083
Income after Tax 148,877,238,088 135,812,870,956 126,779,902,275
Table 1.3. Ratio for the effectiveness of operation:
Items 2014 2013 2012
Return on Assets (ROA) = Income after tax / Total 0.28 0.22 0.19
Assets
Return on Equity (ROE) = Income after tax / 2.59 2.36 1.42
Stockholders’ Equity
Net Profit Margin = Income after tax / Revenues 0.69 0.67 0.64
Current ratio = Current assets / Current liability 132.38% 144.19% 143.99%
The company’s profitability has been increasing steadily for the last 3 years.
Chapter 2: ACCOUNTING DEPARTMENT AND ACCOUNTING SYSTEM AT
LANGUAGE LINK VIET NAM COMPANY.
2.1. Accounting Department of the Language Link Viet Nam Company
Language Link Viet Nam Company’s financing and Accounting Department has eight
members, who are organized in the form of accounting focus. Starting from the
characteristics of business, organizing accounting apparatus is in accordance with
regulatory requirements and accounting process in corporations. This department has
functions to collect and process, provide all the economic information, thereby testing the
working plan, checking the use and protection of assets, materials and capital in order to
ensure autonomy in business, and financial autonomy of the corporation.
Based on the volume, nature and complexity of the arising economic transactions as well
as the competence and qualifications of the staff, in order to complete all the assigned
tasks and assure the reasonable responsibility allocation, the accounting department is
organized follow vertical function model as below:
Chef Accountant
Salaries and wage accountant
Bank Accountant
Sales and cash accountant
DCV sales and cash accountant
TQH sales and cash accountant
Yen Phu sales and cash accountant
Fixed assets and inventory accountant
Lang Ha sales and cash accountant
+ Chef Accountant: Chief Accountant works as an assistant to the director to direct the
implementation of the company’s accounting, advise the company about controlling
mechanisms of financial-economic activities. Chief accountant is in charge for the
accuracy and timeliness of financial information of the company. Chief accountant also
executive direction and supervision of staff in doing the works, which they responsible to
make sure that all the financial information are presented fairly and truly.
+ Bank accountant: responsible for the payment procedures through Bank, monitoring the
principal debt, interest and credit institutions, end of month tabulated detailed report.
Treasurer will manage the cash fund of the company; follow the transactions of the
company with banks such as bank loans, bank deposits; process bank reconciliation.
+ Fixed assets and inventory accountant: Accountant for fixed assets and inventory will
subscribe the fluctuation of fixed assets, depreciates fixed assets periodically; subscribe
details of the assets of the company on the cards and fixed asset register. They also
monitors the input, output and inventories of materials; collect original documents related
to the materials as the basis for comprehensive accounting; takes charge of payment
transactions with customers, employees, officers and the other payment obligations of the
company with the state, and tax authority. Moreover, they follow account receivables,
payables, control provisions, advances and prepayments; and conducts stock count and
check for assets and inventories.
+Salaries and wages accountant: They common duties include creating sales and cash
flow reports, administering payroll, keeping balance sheets, carrying out billing activities,
managing budgets and keeping inventory. The accountant may also be responsible for
filing taxes for the company, as well as reviewing past reports to generate income
forecasts.
+ Sales and cash accountant: Keeps track of payables to suppliers and receivables from
customers, also records sales revenue, expense, and summarizes monthly, calculate VAT,
etc. It includes four SMT school sales and cash accountants.
2.2. Accounting System Applied at Language Link Viet Nam Company.
2.2.1. The Main Accounting Policies Adopted:
+ Accounting regime:
Before January 1st 2007, the company applied accounting regime Decision
No.1141BTC/CĐKT dated November 1st 1995 by Ministry of Finance.
From January 1st 2007 up to now, the company has applied new accounting regime for
medium and small companies Decision No.48/2008/QD – BTC dated September 14th
2006 by Ministry of Finance.
+ Currency unit: Vietnam Dong (VND)
+ Accounting period: The fiscal year begins on January 1st and ends on December 31st.
+ Inventory accounting method
Principle of recoding inventory: Historical cost principle
Inventory costing method: Weighted average method
System to account: Perpetual inventory system.
+ Accounting method: recording vouchers
+ Fixed asset depreciation method: straight-line method (follow Decision203/2009/QĐ-
BTC dated 10/20/2009)
+ Inventories: Accounting perpetually
+ Cash accounting method: Foreign currencies arising in business transactions are
converted into Vietnam dong at the actual exchange rate at the time of the transactions.
At the end of the accounting year, monetary assets and liabilities denominated in foreign
currencies are converted at the average exchange rate in the interbank by the State Bank
of Vietnam announced at the end of the accounting year.
The differences between value of foreign currencies, which are arisen in accounting
period, and value of foreign currencies, which are revaluated at the end of the accounting
year, will be transferred to the Income or Financial expenses in the fiscal year.
+ Method of VAT calculation: Tax deduction method of 10%
2.2.2. Accounting documentations & vouchers:
- The accounting documents system applied in Language Link Viet Nam is followed
Decision No.48/2008/QD – BTC dated September 14th 2006 by Ministry of Finance. All
documents are complied with the content, method to prepare and sign of Accounting laws
and Decree No.129/2004/ND-CP dated May 31st 2004 by Government.
- All the original documents which were prepared inside or outside the company must be
collected and gathered by accounting department. When all documents are collected, the
accountants will conduct the thorough inspection of the original documents belong to
their responsibility. Only after inspection and verification proves that these documents
are correct, accountants use these documents to record the accounting entries.
The types of vouchers used:
-Required documents: These documents are standardized about specifications, formats
and norms reflected in the vouchers, the purposes and methods of documentation by the
State, including:
+Receipts
+Payment cards
+Receipts
+VAT invoice
+Ordinary sales invoice
+Delivery note cum internal transport
+Delivery note for shipping goods to agent
The list of purchased goods without invoices
Recording vouchers
-Instructed documents are used inside the company internally with the guidance of
Finance Ministry’s documents such as timesheets, payrolls, delivery notes, receipt notes,
delivery records, credit notes, debit notes, inventories list...
Accounting documents procedures
- The process of rotating accounting documents:
Step 1: Create, receive, and handle/process accounting documents
Step 2: Accountants and chief accountant check and sign in the accounting documents or
submit to the Director to sign and approve
Step 3: Classify, arrange accounting documents, account and record the transactions :
Step 4: Store, preserve the accounting documents : Accounting documents that are stored
and preserved must meet the following requirements:
- The process of inspection procedure:
Step 1: Check for the clarity, integrity, completeness of the criteria and factors recorded
in the accounting documents
Step 2: Check for the legality of arising economic-financial transactions, which are
recorded in the accounting documents; compare accounting documents with other
relevant documents.
Step 3: Check for the accuracy of the data and information in accounting documents
2.2.3. Accounts in Accounting System
The company is applying the accounting system according to the decision
15/2006/QĐ-BTC of 09/14/2006 issued by the Ministry of Finance.
Code Account Code Account
Type 1: Current assets Type 2: Non-current assets
111 Cash on hand 211 Fixed assets
1111 VND 2111 Tangible fixed assets
1112 Foreign currencies 2112 Finance lease fixed assets
112 Cash in bank 2113 Intangible fixed assets
1121 VND 214 Depreciation of fixed assets
1122 Foreign currencies 2141 Depreciation of tangible assets
1123 Gold, Silver, precious stones 2142 Depreciation of finance lease assets
121 Short-term financial investments 2143 Amortization of intangible assets
131 Trade receivables 2147 Depreciation of investment property
133 VAT deduction 217 Investment properties
1331 VAT on purchase of goods 221 Long-term investment
1332 VAT on purchase of fixed assets 229Allowance for decline in value of
long-term investments
138 Other receivables 241 Construction in progress
1381 Shortage of assets awaiting resolution2411
2412
Fixed assets prior to commissioning
Construction works
1388 Others 2413 Major repairs in progress
141 Advances 242 Long-term prepaid expenses
142 Short-term prepayments 244 Long-term deposits
152 Raw materials Type 3: Liabilities
153 Tools and supplies 311 Short-term borrowings
154 Work in progress315
Current portion of long-term
liabilities155 Finished goods
156 Merchandise 331 Trade payables
157 Outward goods on consignment 333Taxes and other payables to State
budget
159 Allowances 3331 VAT
1591Allowance for decline in short-term
investment
33311 Output VAT
33312 VAT on imported goods
1592 Allowance for bad debt 3332 Special consumption tax
1593Allowance for decline in inventory
value
3334 Corporate income tax
3335 Personal income tax
171 Repurchase Government bonds 3336 Tax on use of natural resources
Type 4: Owner’s equity 3337Land and housing tax, and rental
charges
411 Operating capital 3338 Other taxes
4111 Contributed capital 3339 Fees, charges and other payables
4112 Capital surplus 334 Payables to employees
4118 Other capital 335 Accrued expenses
413 Exchange rate differences 338 Other payables
418 Equity funds3381 Surplus of assets awaiting resolution
419 Treasury shares
421 Retained earnings 3382 Trade union fees
4211 Retained earnings brought forward 3383 Social insurance
4212 Profit/Loss for the current year 3384 Health insurance
Type 5: Revenue 3386Long-term deposits and collaterals
received
511 Sales Revenues 3387 Unearned revenues
5111 Revenues from sales of merchandise 3388 Others
5112 Revenues from sales of finished goods 3389 Unemployment insurance
5113 Revenues from services rendered341 Long-term borrowings and liabilities
5118 Other revenue
515 Income from financial activities 3411 Long-term borrowings
521 Sales deduction 3412 Long-term liabilities
5211 Trade discounts 3413 Issued bonds
5212 Sales returns 34131 Par value of bonds
5213 Sales rebates 34132 Bonds discounts
Type 6: Costs of production and business 34133 Bonds premiums
611 Purchases 3414 Long-term deposits received
631 Production costs 351 Provision for severance allowance
632 Costs of goods sold 352 Provisions
635 Financial expenses 353 Welfare and reward funds
642 Business expenses 3531 Reward funds
6421 Selling expenses 3532 Welfare funds
6422 Administration expenses 3533Welfare funds used for fixed asset
investments
Type 7: Other income 356 Investment and development fund
711 Other incomeType 9: Income Summary
Type 8: Other expenses
811 Other expenses 911 Income Summary
821 Income tax expense
Type 0: Off Balance Sheet Accounts
001 External operating leased assets
002 Goods held under trust or processing
003 Inward consignment goods for sale and goods held as collaterals
004 Bad debts written off
007 Foreign currencies
In addition, the company also opened several sub-accounts to fit the nature of business
and to create favorable conditions for accounting. For example:
Account 111: Cash on hand
+Account 1111: VND
+Account 1112: USD
Account 112: Cash in bank
+ Account 1121: VND
+ Account 1122: USD
+ Account 1123: Gold, silver and precious stones
Account 511: Sales Revenue
+ Account 5111: Revenue from sales of merchandise
+Account 5111.01: Revenue from sales of merchandise to hospitals
+Account 5111.02: Revenue from sales of merchandise to wholesalers
+Account 5112: Revenue from sales of finished goods
etc.
2.2.4. Accounting Books:
The system of accounting books of Language Link Viet Nam comply with Decision
No.48/2008/QD – BTC dated September 14th 2006 by Ministry of Finance. The form of
accounting books is General Journal. However, to simply accounting work and achieve
highest efficiency, the company used accounting software. Recording process by
computer to enter data only once, the computer will automatically process and record in
books and accounting statements to provide information for the user.
The basic feature of General Journal form is that all business transactions which incurred
must be recorded in the journal, especially focus on the General Journal, follow the order
of the time arising and the economic content (the accounts) of each transactions. After
that, accountants gather data in the general journal to record transactions in ledger.
Every day, base on the accounting documents, accountants identify debit account, credit
account and enter data into computer which is designed by accounting software.
In the process of accounting software, that information is classified, summarized,
allocated, etc and automatically entered into the general journal, detailed accounting
books or accounting cards.
In the end of month (or at any time is needed), accountants close the book and prepare
financial statements. The comparison between general ledger and summary table is done
automatically to ensure the accuracy and reliability of the information which has been
recorded in the period. Accountants also check and compare the data between the
accounting books and the financial statements after printed on paper.
At the end of the accounting period, accounting book is formed as files with general and
detailed information for each item such as Sales journal, Income and disbursement
journal, general ledger and subsidiary ledgers, financial statements, tax statement, etc.
In manual condition, the content of General Journal is presented:
: General Journal process
2.2.5. Accounting Statements:
SOURCE DOCUMENTS
Detailed books
Summary table
General Journal
General ledger
FINANCIAL STATEMENTS
Trial balance
Note:Record dailyRecord monthlyComparison
The financial statement preparation has 4 parts: Balance Sheet or Financial Position
Statement, Income Statement, Cash Flow Statement (Direct method), and Financial
Statement Disclosure.
Those statements will be prepared by accounting department with the stamp of the
company and the signatures of the creating accountant, chief accountant as well as
director at the end of fiscal years 31st December.
2.3. The Main Accounting Cycles Applied by the Language Link Viet Nam Company:
2.3.1 : Accounting procedure for overhead costs:
Overhead costs include many kind of costs such as management team salary, social
insurance deductions, health insurance, union funds, unemployment insurance are
specified on the wages paid to direct workers and management employees, depreciation
of fixed assets used in the operation of the unit and other costs related to the unit. This
cost usually has an indirect relationship with profits and associated to organizing,
servicing and sale the product.
To accumulate the production costs incurred under the expense items ( direct material
cost , market research cost , manufacturing overhead cost), the accountant open a detailed
accounting book for management overhead costs.
SỔ CHI PHÍ SẢN XUẤT KINH DOANH
Tài khoản:……………………….Số hiệu………………….
Tên phân xưởng, bộ phận…………………………………..
Chứng từ
Diễn giải
TK
đối
ứng
Ghi Nợ TK ………………….
Số
hiệu
Ngày
tháng
Tổng
số tiền
Chia ra
A B C D 1 2 3 4 5 6….
Số dư đầu kỳ:
SSố phát sinh trong kỳ:
………….
…………..
Cộng phát sinh
Ghi Có TK: ….
Số dư cuối kỳ:
Accounts used : 627 – used to reflected and allocated the overhead production costs.
+Accounts 6271 - Cost of management team staff: Reflecting the salaries, allowances
paid to personnel management workshops, parts, production team; mid-shift meals of
management staff, workshop, parts manufacturing; deductions for social insurance, health
insurance, trade union funding is calculated according to the proportion of the current
provisions on wages paid to staff , departments. For unit costs, the indirect method is
tracking employee attendances. Thus, the payment of salary, allowances ...are made by
the accounting department of the company. Monthly, based on timesheets conducting
wage and payroll department conducts wage and salary deductions of direct production
workers, workers operating construction machinery, management team staff then send the
payroll to the accounting department.
- Accounts 6272 - Cost of instrument and tools : Reflecting material cost for the
production, as the materials and tools for the reparation and maintenance of fixed assets,
temporary costs ,. . .
- Accounts 6273 - The cost of production tools: Reflects costs of tools, instruments and
consumables for the management of the factory, parts and units produced. . .
- Accounts 6274 - Depreciation of fixed assets: Depreciation expenses of fixed assets are
transferred to account 6274, it reflects depreciation of fixed assets used directly for the
production of products, implementation services and shared activities amortization of
workshops, departments and organizations , production team . Currently fixed assets used
in production units are include computers, and so on. Fixed assets are amortized based on
straight line
- Accounts 6277 - Cost of services purchased from outside: To reflect the cost of services
purchased from outside service for the operation , such as repair costs, outsourcing costs,
electricity costs, water, telephone, rent and amortization.
- Accounts 6278 - Other expenses: Other expenses are collected in Ac 6278. At the end
of the month accountant collects documents for the invoices along with VAT invoices to
the accounting department of the corporation.
(1) Costs of the management team staff
(2) Costs of instrument and tools
(3) Depreciation of fixed asset
(4) Outside purchasing services
(5) Deducted cost
(6) Closing entry
2.3.2 Accounting procedure for cash transaction:
Cash transactions are ones that are settled immediately in cash. Cash transactions also
include transactions made through cheques. Cash transactions may be classified into cash
receipts and cash payments. Because of the business characteristic, Language Link Viet
Nam accounting department have to receipt lot of cash every day from four public
schools in Ha Noi. Every day, chief accountant and director check the receipt voucher
from public school to know the amount of money inflow as well as check request for
payment in advance from each department and approve it. Then, cash accountant prepare
payment vouchers for disbursement transactions or receipt vouchers for receipt
transactions. Base on these documents, accountants post the transactions to General
Journal and ledger of relevant accounts. Simultaneously, accountants will record to
detailed books.
At the end of the month, the accountants sum up the amount of each account to prepare
trial balance, calculate the amount of detailed books to prepare summary tables,
implement comparison and finally, prepare financial statements.
Receipt voucherPayment voucher
Request paper for advancePayment document for advance
Summary table
Detailed book Account 111,112General Journal
Ledger account 111, 112
Financial Statements
Trial Balance
Account used:
- Account 111: Cash on hand
Account 1111: Cash on hangd – VND
Account 1112:Cash on hand- USD
- Account 112: Cash in bank
Account 1121: Cash in bank- VND
Account 1122: Cash in bank- USD
Account 1123: Cash in bank- Gold, Silver and precious stones
However, the company usually uses only account 1121 and 1122 and rarely uses account
1123 because of the high risk of the code of payment.
Besides two these accounts, some other accounts relating specific transactions would be
used.
2.3.3 Accounting procedure for sales:
Sales revenue is the gross inflow of economic benefit during the period arising in the
course of ordinary activities of an enterprise when those inflows result in increases in
equity. This is the most important inflow of the company to cover the expenditures as
well as facilitate the company to do obligations with Government. In addition, revenue
reflexes scope and efficiency of the company.
Every day, base on Sales, accountants record all the transactions not only into General
Journal and then to subsidiary and general ledgers but also to detailed books of relating
accounts based on documents such as Receipt voucher or credit note from banks,
Delivery note, payment voucher, etc. At the end of the month, accountants calculate the
amounts on ledgers to prepare trial balance and sum up the amounts on detailed books to
prepare summary table. After that, they compare between the amounts on ledgers and
trial balance with summary table to determine whether the figures are match to each
other. Finally, accountants prepare financial statements for management purpose or
financial statements at the end of the year.
Sales revenue process
Summary table
Trial balance
Financial statements
General Journal Detailed book account 511, 632,
642
Ledger account 511, 5212, 632, 156, 642
Note:Record dailyRecord monthlyComparison
Delivery noteReceipt voucher/Credit note
Payment voucher
Accounts used:
To record sales
- Account 511: Sales revenue
+Account 5111: Revenue from sales of merchandise
+Account 5112: Revenue from sales of finished goods
- Account 5212: Sales return: This account expresses the value of goods returned because
of unqualified goods or violated contract, etc.
To record Cost of goods sold
- Account 632: Costs of goods sold: This account is used to reflect the cost of goods sold
in the period.
Chapter 3: ASSESSMENT OF ACCOUNTING STRUCTURE OF THE
COMPANY
3.1 Achievements:
3.2 Limitations:
3.3 Recommendations: