Accounting for Financial Revenue and Financial Operating Expenses at Ngoc Ha Construction, Trade and Transportation Joint Stock Company.

Address: No. 65B, Da Nang, Ngo Quyen, Hai Phong

Unit: NGOC HA CONSTRUCTION TRADING AND MATERIALS JSC

Form No.: 02 – LĐTL (Issued under Decision No. 15/2006/QD-BTC dated March 20, 2006 of the Minister of Finance)

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PAYROLL SHEET

November 2010

Management Department

STT

Full name	C Department	TT Salary	Salary coefficient	P Level	Total TN	Payroll Deductions				Real world	Signed
						6%XH	1.5%YT	1%TN	Total
1	Dinh Huu Gem	Director	750,000	4.74	700,000	4,255,000	255,300	63,825	42,550	361,675	3,893,325
2	Nguyen Thi Ha	Deputy Director	750,000	4.5	400,000	3,775,000	226,500	56,625	37,750	320,875	3,454,125
3	Nguyen Thanh Gem	T.Ky	750,000	2.34	300,000	2,055,000	123,300	30,825	20,550	174,675	1,880,325
4	Vu Thi Diep	Math	750,000	3.82	200,000	3,065,000	183,900	45,975	30,650	260,525	2,804,475
5	Pham Thi Thuy	Math	750,000	3.82	200,000	3,065,000	183,900	45,975	30,650	260,525	2,804,475
6	Tran Mai Page	Math	750,000	3.82	200,000	3,065,000	183,900	45,975	30,650	260,525	2,804,475
7	Nguyen Van favorable	BVe	750,000	2.58	200,000	2,135,000	128,100	32,025	21,350	181,475	1,953,525
	Add				2,200,000	21,415,000	1,284,900	321,225	214,150	1,820,275	19,594,725

Table 2.15: Excerpt from November 2010 salary payment table for management department

Table 2.16 : Payment voucher number 40

Address: No. 65B, Da Nang, Ngo Quyen, Hai Phong

Unit: NGOC HA CONSTRUCTION AND TRADING JSC

Model No.: 02 – TT (Issued under Decision No. 15/2006/QD-BTC dated March 20, 2006 of the Minister of Finance)
PAYMENT VOUCHER December 10, 2010	Book number:…12.. Number: …40… Debt:..3344…… There are: …1111…

Recipient's name: …Nguyen Thi Thuy……………………………………….. Address: ………Management department...………………………………………………….. Reason for payment: …………Salary payment for November 2010……………………………………. Amount: …19,594,725…(In words). Nineteen million five hundred ninety-four thousand seven hundred twenty-five dong/…………………………………………………

Attached: ………………01………………………………………Original documents

December.10, 2010.

(Signature, full name, seal)

Manager

Chief Accountant (Signature, full name)

Treasurer (Signature, full name)

Voter (Signature, full name)

Recipient (Signature, full name)

Received full amount (In words): ……………………………………………….

+ Foreign exchange rate (gold, silver, precious stones): ………………………………………………

+ Conversion amount: …………………………………………………………………..

GENERAL LOG

From 01/12/2010 – To 31/12/2010

Date

record

Document		Interpretation	Posted in the ledger	STT current	Account Number	Number of occurrences
Number	Day, month					In debt	Have
			……………………
10/12	C39	10/12	Advance payment for car rental goods in stock		150 151	141 1111	12,000,000	12,000,000
10/12	C40	10/12	Pay November salary to management department in cash	a)x b) c)	152 153 154 155 156 157	642 334 334 338 334 1111	21,415,000 1,820,275 19,594,725	21,415,000 1,820,275 19,594,725
			……………………..
12/31	KC02	12/31	KC CF to determine T12 business results	x xx	629 630 631 632 633 634	911 632 635 641 642 811	1,272,506,506	512.350.560 220,450,000 270,315,000 173,691,640 95,699,306
			Co-arising				4,580,760,300	4,580,760,300

Table 2.17: Excerpt from General Journal December 2010

LEDGER

Account Name: Business Management Account Number: 642

From 01/12/2010 – To 31/12/2010

Date

record

Document		Interpretation	General Journal		Account Number	Amount
Number	Day, month		Book page	STT current		In debt	Have
			Registration number				x	x
			……………………
10/12	C40	10/12	Pay November salary to management department in cash	a)4	152	334	21,415,000
			………………….
12/31	KC02	12/31	KC CF to determine T12 business results	13	632	911		173,691,640
			Co-arising				173,691,640	173,691,640
			SDCK				x	x

Table 2.18 : Excerpt from account 642 ledger December 2010

2.2.4 Accounting for financial revenue and financial operating expenses at Ngoc Ha Construction, Trade and Transport Joint Stock Company.

2.2.4.1 Contents of financial revenue and financial expenses at the Company

 The Company's financial revenue mainly comes from monthly interest on bank deposits. This figure accounts for a small proportion of the company's total annual revenue.

 The Company's financial operating expenses mainly include: interest payable to the Bank, mobilized loan capital, liquidation of mobilized loan contracts...

2.2.4.2 Documents and accounts used

Certificate of use

- Debit note, Credit note

- Payment authorization

- Payment voucher

- Other relevant documents

User account

- Account 515: Financial activity revenue

- Account 635: Financial operating expenses

2.2.4.3 Accounting process

Every month, when there are transactions related to financial revenue, financial operating expenses based on documents related to the interest received by the Bank or the interest payable to the Bank and external loans, the accountants will collect them into the General Journal, General Ledger TK515, General Ledger TK635.

At the end of the month, the accountant makes a closing entry to prepare the Balance Sheet.

born.

At the end of the year, based on the ledger and the Balance Sheet, the generated numbers are prepared to prepare the Financial Statement.

main.

The process of accounting for financial revenue and financial expenses is described in the following diagram (Diagram 2.6)

Debit Note, Credit Note, Payment Order,

General Journal

Ledger accounts 515,635…….

Balance sheet of arising numbers

Financial report

Note:

Periodic recording

Diagram 2.6: Accounting process for financial revenue and financial expenses at Ngoc Ha Construction, Trade and Transport Joint Stock Company

2.2.4.4 Illustrative example

Example 5: On December 25, 2010, the Company received a Notice of November deposit interest from Asia Commercial Bank in the amount of: 1,121,602 VND.

Accounting entries:

Debit account 1121: 1,121,602

Credit account 515: 1,121,602

Receive accounting notice to General Journal, from General Journal to Ledger account 515.

Example 6: On December 31, 2010, from the accounting voucher of Asia Commercial Bank, the loan interest is 954,804 VND.

Accounting entries:

Debit account 635: 954,804

Credit account 112: 954,804

Upon receiving the debit note, the accountant enters the General Journal. From the General Journal, enter the General Ledger account 635.

Table 2.19 : Extract from Credit Notice

ASIA COMMERCIAL BANK

ASIA COMMERCIAL BANK

Transaction Code: BATCH Customer Code: 10366

NOTICE OF AVAILABILITY

December 25, 2010

To: NGOC HA CONSTRUCTION, TRADING & TRANSPORTATION JOINT STOCK COMPANY

Today, we would like to inform you that we have credited your account with the following content:

Credit account number: 3409698 Amount in numbers: 1,121,602

Amount in words: One million one hundred twenty one thousand six hundred and two dong. Content: ## INTEREST ON PRINCIPAL ##

TRADING CONTROL OFFICER

GENERAL LOG

From 01/12/2010 – To 31/12/2010

Day,

month of recording

Document		Interpretation	Posted in the ledger	STT current	Account Number	Number of occurrences
Number	Day, month					In debt	Have
			……………………
12/25	GBC43	12/25	Receive notice of availability bank	x	516 517	1121 515	1,121,602	1,121,602
			……………………
12/31	KC01	12/31	Revenue and income to determine business results T12	xx	625 626 627 628	5111 515 711 911	1,532,736,000 157,256,640 87,321,000	1,777,316,640
			…………………
			Co-arising				4,580,760,300	4,580,760,300

Table 2.20: Excerpt from General Journal December 2010