Accounting Method for Funding Sources According to State Orders

State funding sources are ordered from superior agencies and financial agencies according to current financial regulations.

4.3.2. Accounting method for funding sources according to State orders

4.3.2.1. Accounting documents

Accountants use documents: Budget withdrawal and cash withdrawal form, Budget withdrawal and transfer form, money transfer by mail - telegram, certified check, etc.

Maybe you are interested!

Completing the organization of accounting for revenue, sales costs and determining business results at Hai Phong Paint Joint Stock Company - 1
Accounting for revenue, expenses and business results at Long Bien Industrial Gas Joint Stock Company - 2
Accounting for revenue, expenses and business results at An Ngai Mechanical and Construction Joint Stock Company - 3
Perfecting the Organization of Applying the Production Cost Accounting Method to Serve Cost Management Accounting
Completing revenue accounting and determining business results at Ha Lam Coal Joint Stock Company - Vinacomin - 16

4.3.2.2. Accounting accounts

Accountants mainly use account 465 - Funding sources according to State orders to reflect the receipt, use and settlement of funding sources according to State orders.

Structure and content of account 465 - Funding sources according to State orders:

Debit side :

- Value of product volume and completed work according to State orders upon acceptance and payment.

- Transfer the amount of funds according to the orders issued during the period to the subordinate units at the superior unit.

- The amount of funds according to the State's order that is not fully used due to not completing the volume must be returned.

Credit: Receiving funding sources according to State orders.

Credit balance : Funding source according to the State's order has not been settled yet.

In addition, accountants also use other related accounts such as Account 111 - Cash; Account 112 - Bank and Treasury deposits; Account 152 - Raw materials and supplies; Account 153 - Tools and supplies; Account 211 - Tangible fixed assets; Account 661 - Operating expenses,...

4.3.2.3. Applying accounts to account for some major economic transactions

A. Accounting increases funding sources according to State orders

1 - Receive the State budget assigned according to the order, accountant records in Debit account 008 - Operating expenditure budget.

2 - Receive state or superior funding to carry out orders, based on receipts of money, goods, etc., the accountant records:

Debit accounts 111, 112, 152, 153,…

Credit account 465 - Funding source according to State orders

3 - Withdraw the budget estimate according to the order for use, based on the Accounting Budget Withdrawal Paper, record:

Debit accounts 111, 112, 152, 153, 211, 331, 635,…

Credit account 465 - Funding source according to State orders

At the same time, credit account 008 - Operating expense estimate. If purchasing fixed assets, also record:

Debit account 635 - Expenditure according to State orders

Credit account 466 - Funding sources for forming fixed assets 4 - Advance funds from the Treasury:

- Enter the cash fund of the Treasury's advance payment, based on the accounting receipt:

Debit account 111 - Cash

Credit account 336 - Advance payment

- When making advance payments to the Treasury and completing procedures to withdraw the budget, the accountant records:

Debit account 336 - Advance payment

Credit account 465 - Funding source according to State orders

At the same time, credit account 008 - Operating expense estimate

5 - Withdrawing budget from the State's order budget allocated to subordinate units, the accountant records:

Debit account 341 - Funds allocated to subordinates

Credit account 465 - Funding source according to State orders

At the same time, credit account 008 - Operating expense estimate

When allocating funds according to State orders to subordinate units, based on the unit's decision on funding allocation, the accountant records:

Debit account 341 - Funds allocated to subordinates Credit accounts 111, 112, 152, 153

B. Accounting reduces funding sources according to the State's order

water

1 - At the end of the period, transfer the funds according to the order of the House.

The water has been allocated during the period to the lower level units to reduce the funding source, the accountant of the upper level unit records:

Debit account 465 - Funding sources according to State orders Credit account 341 - Funding allocated to subordinates

2 - If the received funds are not used up, they must be returned to the Budget. When submitting, based on payment documents such as Payment Vouchers, etc., the accountant records:

Debit account 465 - Funding sources according to State orders Credit accounts 111, 112,...

3 - When accepting the volume of products and completed work according to the payment price, based on the Minutes of acceptance of completed products and work, the accountant records:

Debit account 465 - Funding sources according to State orders Credit account 511 (5112) - Revenues

The accounting process is summarized in diagram 4.3.

Diagram 4.3: General accounting of the status of receiving and using funds according to the State's regulations

111, 112

465 – Funding source according to State orders

112, 152, 662, ...

Return KP to the State budget

(if any) Receive KP for the State's University

511

Value of completed work volume upon acceptance payment

Withdrawal of direct expenditure estimates for the State's congresses

635

Carry over actual costs of implementing the project

of NN

511

336

Advance payment

Advance payment of direct expenses

466

0081

Estimated expenditure

Withdraw budget

Record increase in expenses for the value of purchased fixed assets

211

according to the State's assigned regulations

spending according to the State budget

Purchase fixed assets for immediate use

421

Transfer the difference in payment price > actual expenditure for State budget

4.3.2.4. Accounting books

- General accounting books : Depending on the accounting form applied by the unit, accountants can use General Journals, General Ledger Journals or Voucher Registers.

- Detailed accounting books : Accountants use the Fund Use Tracking Book (Form No. S42-H) and the Fund Source Summary Book (Form No. S43-H).

4.4. Accounting for investment funds for construction and installation

4.4.1. Principles of accounting for investment funds for construction and installation

The investment capital for construction of public service units is formed by the State budget, the superior budget or supplemented from the unit's revenues, or aid, sponsorship, or donation. This capital is used to purchase fixed assets and construct projects approved by competent authorities.

To strictly manage, use properly and reasonably the investment capital for construction and development, and meet the management requirements of the unit, accountants must fully perform the following tasks:

- Organize clear and distinct accounting of the situation and fluctuations of each source of construction investment funds according to each funding content, each project from the start of construction to the completion of handover and putting into use.

- Closely inspect and monitor the allocation and use of investment funds for construction and infrastructure in accordance with the State's public financial management regime.

Accounting for investment capital sources for construction works must respect the following regulations :

- Investment funds for construction and development can only be used to purchase fixed assets and construct projects approved by the State. Construction and development investment must comply with and respect the provisions of the Construction Law.

- The amount of money and goods that the unit receives as non-refundable aid without having documents to record revenue and expenditure of the budget according to regulations cannot be recorded as an increase in funding sources and the unit cannot settle these amounts.

- When the construction investment project is completed, the unit must hand over the assets to put into use and make the final settlement of investment costs, must record a decrease in the funding source and record an increase in the funding source that has formed the fixed assets.

4.4.2. Accounting method for investment funds for construction and installation

4.4.2.1. Accounting documents

Accountants use documents: Budget withdrawal and cash withdrawal form, Budget withdrawal and transfer form, money transfer by mail - telegram, certified check, etc.

4.4.2.2. Accounting accounts

Accountants mainly use account 441 - Investment fund source for construction and infrastructure to reflect the current amount and fluctuations in investment fund source for construction and infrastructure in public service units.

Structure and content of account 441 - Source of funds for investment in construction and development:

Debit: Capital investment and construction funds decrease due to approved expenses being eliminated, capital investment and construction funds being converted into funds for forming fixed assets, etc.

Credit side: The source of capital for construction investment increased due to: receiving KP from the State or superiors,...

Credit balance : Unused or used but not yet settled KPĐTXDCB source.

Account 441 has 3 sub-accounts:

Account 4411 - State budget funding source : Reflects the amount of investment capital for construction and development allocated by the State budget for new construction, renovation, expansion and upgrading of works.

Account 4412 - Aid funding source : Reflects the amount of investment capital for construction and infrastructure aided under programs and projects to build new, renovate, expand, and upgrade works.

Account 4418 - Other sources : reflects other sources of funding to implement infrastructure investment such as contributions from project beneficiaries, funding sources, career revenues, funds, etc.

In addition, accountants also use other accounts such as: Account 0092

- Estimated construction investment expenditure, account 336 - Advance payment,...

4.4.2.3. Applying accounts to account for some major economic transactions

A. Accounting for increased capital for construction investment

1 - Receive investment funds for construction and development granted by the budget by payment order, accountant records:

Debit account 112 - Bank and Treasury deposits