Characteristics of Accounting Organization at Pts Hai Phong Shipbuilding Company Limited:

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- Company Director: The Company Director is the person who runs all daily business activities of the Company; Responsible before the law and the Chairman of the Company for the implementation of his/her rights and duties. The Company Director has the rights and duties such as: organizing the implementation of the decisions of the Chairman of the Company, deciding on issues related to the Company's daily business activities...

- Financial accounting department: Accounting and statistics of production and business activities according to state regulations. Advise and assist the director in strictly implementing current accounting and financial regulations. Analyze production and business activities. Regularly provide the director with information on financial status, capital sources, and capital usage efficiency.

- Administrative organization department: Advises and assists the director in personnel planning, arranging and assigning staff to meet production and business requirements. Develops a reasonable mechanism for staff to encourage workers, has a training plan to improve the quality of the workforce, and takes care of occupational health and safety .

- Production planning department: Advise and assist the director in developing production and business strategies, organizing the business of manufactured products, exploiting the business of other products (if any) that can utilize existing facilities and markets. Create sources of goods, adjust import and export stages to agents and customers, manage import and export goods, invoices and documents, accounting systems, statistics and reporting ...

- Technical materials department: Advises and assists the director in developing scientific, technical and environmental plans, developing and managing material standards, managing production technology and equipment management .

- Service department: This is the place to serve meals and rest for employees in the company.

- Security team: The security team is responsible for protecting company assets, looking after vehicles and controlling people entering and leaving the company. Any unusual suspicions must be reported immediately to superiors.

- Welding teams, mechanical processing teams, machine repair teams: Responsible for welding, processing and repairing the company's ships and machines.

- Decoration team: This team's work is also quite important, because this is the final job for the company to be able to sell the product. This is the team that decides what color to paint the ship, how to decorate it to be both beautiful and cheap.

2.1.4. Characteristics of accounting organization at PTS Hai Phong Shipbuilding Company Limited:

2.1.4.1. Characteristics of the accounting organization of PTS Hai Phong Shipbuilding Company Limited:

The company's accounting system is organized in a centralized model. The accounting department accounts for all accounting transactions related to the entire company, performing all accounting tasks from receiving and processing documents, circulating documents, recording and summarizing and preparing financial reports.

Diagram 2.2 : Organizational chart of the company's accounting department

Chief Accountant

(Head of Department)

General Accounting

– Payment accounting

Material accounting

Fixed Asset Accounting – Bank Accounting

– Treasurer

Functions and duties of each employee:

 Chief Accountant : Manage all work of the accounting department, directly check arising economic transactions, sign and approve documents, reports before submitting to the director, approve quarterly and annual financial statements according to regulations. Advise the director in effectively using the company's finances.

 General Accountant - Payment Accountant: Responsible for synthesizing data from accountants to prepare summary reports and at the same time perform tasks of monitoring revenue and expenditure, and settling taxes with the State Budget.

 Material accountant: Responsible for monitoring the increase and decrease of raw materials, import, export, and inventory in terms of quantity and price. At the end of the month, prepare an allocation table and transfer it to the general accountant to collect costs and calculate the cost price.

 Fixed Asset Accountant - Bank Accountant - Cashier: Responsible for monitoring the increase and decrease of fixed assets, making allocation tables and calculating depreciation for fixed assets periodically, updating and regularly monitoring reports on the revenue and expenditure of the bank and responsible for collecting cash and disbursing money according to valid, signed and approved revenue and expenditure documents.

2.1.4.2. Characteristics of the accounting system organization at PTS Hai Phong Shipbuilding Company Limited:

- The Company's accounting year is one year, starting on January 1 and ending on December 31 of each year.

- Applicable accounting regime: The Company applies the current Enterprise Accounting Regime according to Decision No. 15/2006/QD-BTC dated March 20, 2006, which has been amended and supplemented according to the provisions of Circular 244/2009/TT-BTC dated December 31, 2009 of the Minister of Finance.

- Currency used in accounting: Vietnamese Dong

- Recording and depreciation of fixed assets: Fixed assets are recorded at original cost. Depreciation is calculated using the straight-line method. The depreciation rate is consistent with Circular No. 203/2009/TT-BTC dated October 20, 2009 of the Ministry of Finance.

- For inventories: The Company applies the perpetual inventory method to account for inventories. The value of goods sold is determined by the moving average method. Unfinished products at the end of the period are valued by the direct materials cost method.

- The company is subject to value added tax payment by the deduction method.

- Based on the characteristics of the business organization as well as the qualifications and capabilities of the accounting team, the company applies computerized accounting.

Diagram 2.3 : Computerized accounting diagram

ACCOUNTING BOOK

- General ledger

- Detailed ledger

ACCOUNTING SOFTWARE

ACCOUNTING DOCUMENTS

SUMMARY OF DOCUMENTS OF THE SAME TYPE

- Financial report

- Management accounting report

COMPUTER

Note : Enter data daily

Print books, reports at the end of the month, quarter, year. Compare and check relationships.

Every day, accountants base on accounting documents or summary tables of accounting documents of the same type that have been checked to determine debit accounts, credit accounts to enter data into the computer according to pre-designed tables on the accounting software. According to the accounting software process, the information entered into the computer will be automatically entered into the general journal and ledger.

At the end of the quarter (or any time necessary), the accountant performs the closing operation and prepares the financial report. The reconciliation between the detailed figures is done automatically and always ensures accuracy and honesty according to the information entered during the period. The accountant can check the reconciliation between the accounting books and the financial report after printing it on paper.

At the end of each quarter, the general accounting books and detailed accounting books are printed on paper, bound into books and legal procedures are carried out according to regulations on handwritten accounting books.

From the Windows desktop, double-click on the VACOM accounting software icon , enter the user name and password, the screen interface will appear as follows:

Main interface screen of VACOM accounting software

2.2. Current status of revenue and cost accounting organization and determination of business results at PTS Hai Phong Shipbuilding Company Limited

2.2.1. Current status of accounting organization for sales revenue, financial revenue, other income:

2.2.1.1. Accounting for sales revenue and service provision:

Characteristics of sales revenue and service provision:

- Sales revenue and service provision at PTS Hai Phong Shipbuilding Company mainly come from ship repair and new ship building revenue, in which repair revenue accounts for 70% of total revenue. The company undertakes ship repair and new ship building under contract.

Documents used:

- Economic contracts, orders

- Value added tax invoice, contract liquidation minutes

- Receipt, credit note

- Other relevant documents

Account used:

Account 511 "Sales revenue and service provision"

 Level 2 accounts:

- Account 5113: Service revenue

 Level 3 accounts:

- Account 5113SC: Repair service revenue

- Account 51138: Other service revenue

Payment method:

- Cash

- Transfer

Accounting method:

Diagram 2.4 : Accounting process for sales revenue and service provision at PTS Hai Phong Shipbuilding Company Limited

ACCOUNTING BOOK

- General journal, Ledger account 511, 131...

- Customer receivables detail book…

ACCOUNTING SOFTWARE

Economic contracts, VAT invoices,

...

- Financial report

- Management accounting report

COMPUTER

Note: Enter data daily

Print books, reports at the end of the month, quarter, year. Reconciliation and checking.

Example:

On June 30, 2011, revenue from repairs on the Manh Hung shipyard was recorded, total payment price was 211,100,000 VND, VAT 10%.

Based on VAT Invoice No. 0000140, the general accountant enters data into the accounting software.

From the Windows desktop, double-click on the VACOM ACCOUNTING software icon , the accountant enters his name and password to enter the software. Select the Cash-Bank Deposit subsystem → Accounting voucher in VND → select Accounting voucher other than VND → enter data from VAT invoice into the software → after entering all data into the software, press F10 to receive. The data will be automatically transferred to the related books.

Unit: PTS HAI PHONG SHIPBUILDING COMPANY LIMITED

Address: 16 Ngo Quyen, Ngo Quyen, Hai Phong Tax code: 0200820994

Teleax: (84-031) 758560

Voucher number : 72/AU

OTHER ACCOUNTING VOUCHER VND

June 30, 2011

Client :

Amount: 211,100,000 VND

In words: Two hundred eleven million one hundred thousand dong even. Attached with…………….original documents

Voter

June 30, 2011

Chief Accountant