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Characteristics of the Union, the Party and the State in Determining the Results of the Union


“General Standard”. Recognition: Trade revenues are recognized when determining revenue according to Standard No. 14 - "Revenue and other income". For

Other revenues are recognized at the time they arise.

2.1.4.3. Accounting system

The company is currently applying the accounting system according to the circular.

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2.1.4.4. Document system and accounting records

The form of accounting books is a system of accounting books used to record, systematize and summarize accounting vouchers in a certain order and record. Currently, Loi Dong Trading Co., Ltd. is applying the form of accounting books.

Accounting is Japanese

* The general Japanese sequence diagram is shown as follows:


Diagram 2.3. Sequence diagram of the un diary

Source: Accounting Department

Ʀ Accounting books used in this form include:

- General journal, Special journal;

- Ledger;

- Detailed accounting books;


- Accounting reporting system includes:

+ Balance sheet;

+ Report on production and business performance;

+ Balance sheet of arising numbers;

+ Cash flow statement;

+ Financial statement explanation.

2.1.4.5. Accounting reporting system

The financial statements of the enterprise include:

- Balance sheet: Form No. B01-DNN;

- Business performance report: Form No. B02-DNN;

- Cash flow statement: Form No. B03-DNN;

- Financial statement explanatory note: Form No. B09-DNN.

2.1.4.6. Accounting software

The company uses Fast software to set up books, enter General Journal, automatically create General Ledgers, detailed goods books, accounts receivable, payroll tables... From there, create monthly and quarterly tax reports, prepare financial reports and final tax settlement. All are done on Fast accounting software and Tax support software of the General Department of Taxation.

2.2. Characteristics of the group, the group and determining the results of the group

Trac Nuong Company Limited is a manufacturer and exporter of Lon Dan plating and production.

At Loi Dong Trading and Production Company Limited, the reflection of revenue, expenses and determination of business results mainly focuses on the financial accounting aspect, while management accounting still does not have many outstanding activities. The company does not have a separate management accounting department, but mainly the accounting staff details the information from the financial accountant or the chief accountant records separately for monitoring.

The company's revenue includes: Revenue from sales and service provision, financial revenue, other income. The company currently trades in furniture products such as: Executive desks and cabinets, office filing cabinets and chairs, meeting room tables and chairs, conference rooms, auditorium tables and chairs, safes, air conditioners, refrigerators. In addition, the company is also a distributor for domestic and foreign furniture companies such as Hoa Phat, Xuan Hoa, and ZIC Taiwan chair company. Currently, the company focuses on developing the commercial supply of goods. Therefore, the business


The company's revenue is mainly from commercial activities providing goods to the market.

Revenue from sales of goods and provision of services is the main revenue of the Company. This is the amount of money collected from the sale of goods such as: Revenue from office equipment, revenue from home furniture and revenue from electronic and refrigeration equipment, commission from goods distribution activities.

For revenue from goods sold by agents, the company's revenue is the commission that the business receives. When the company sells goods, the accountant determines the commission to issue an invoice, then offsets the debt with the supplier.

The company has a system of stores that consume products. The company's customers are very diverse, including both individuals and organizations: Individual customers often buy in small quantities, not many types, mainly for family use. Therefore

Individual customers usually pay in cash or by bank transfer. The transportation of products from the company to the customer is usually undertaken by the customer or hired by the company at a preferential cost. In addition, there are also a number of individual customers who buy products from the company to sell the products. Customers are organizations including customers who buy products for business and customers who buy products to serve the needs of large-scale use. The types of products provided to these customers are also diverse, most of the products distributed by the company are distributed and sold on the market.

The company's operating costs include: cost of goods sold, business administration costs, financial costs, and other costs.

A company's cost of goods sold is made up of the cost of purchasing goods plus the shipping and handling costs incurred during the purchasing process.

The company sells office furniture and home furniture such as tables, chairs, beds, cabinets, etc. After the goods are shipped, the company is responsible for transporting and disassembling and assembling them at the customer's address. The shipping costs can be paid by the customer himself or by hiring a shipping company. For large orders, the company will provide free shipping and installation for customers.


The company conducts the determination of the provisional business results at the end of each quarter as a basis for tax calculation, and at the same time evaluates the company's operating results. In general, at Loi Dong Trading and Production Company Limited, revenue, expenses and business results are mainly classified and monitored from a financial accounting perspective, but not really aimed at serving the work of corporate governance. The classification of costs into fixed costs, variable costs, controllable costs, and uncontrollable costs has not been applied at Loi Dong Trading and Production Company Limited.

The assignment of accounting department staff to perform management accounting is not carried out specifically. The staff is responsible for both sales accounting and collecting and tracking revenue and expenses, preparing reports on revenue performance and cost analysis.

Such classification does not really go deep into management accounting work, and does not have much meaning in making business decisions. Every decision still has many information elements that do not meet or serve well for business management.

2.3. Current status of accounting, financial statements and business results at Trac Nieu Tn Vn Vn Van Don Production Company in terms of financial accounting

2.3.1. Revenue accounting

2.3.1.1. Accounting for sales revenue and service provision

Revenue generated at the Company mainly includes: revenue from sales of goods and provision of services, financial revenue and other revenue.

Currently, the company's revenue classification is only to serve the requirements of financial accounting, not to classify revenue to serve the requirements of management accounting.

* Accountant records revenue at Loi Dong Trading and Production Company Limited.

Reality shows that the Company's revenue recognition basically ensures the provisions of accounting standard No. 14. The main products distributed by the Company are:


These are finished products, so the installation time is quick. Therefore, after exporting the goods and transporting them to the customer's address, the accountant will issue an invoice and record the revenue.

Documents used and document circulation process

Currently, the company has implemented and applied well the revenue accounting voucher regime, which serves as a legal basis for documents and financial accounting data. At the same time, it is also the basis for international accounting data in terms of concretizing and detailing financial accounting data. Documents include:

Quotation: includes product sample (goods sample), selling price for customer Order: created by customer and sent to the company, request for sample, product

product, quantity, quality.

VAT invoice: includes product name, unit, quantity, unit price, amount the customer must pay. This document is used to determine sales revenue and output VAT payable to the State.

Export voucher: to closely monitor the quantity of exported goods

Receipt: To determine the actual amount of cash, foreign currency... imported and serve as a basis.

Just let the cashier collect money, record the cash, the accountant records the related receivables.

Credit note: Is a document issued by the bank to notify the account holder of the amount of money receivable from the account holder for the provision of goods, services, or other receivables that have actually been collected. The credit note is the basis for deposit accounting to record the deposit amount and accounting books related to deposit collection transactions.

Receipt of money: Is a receipt of a business or individual who has collected money or received a check from the payer as a basis for making a receipt, depositing money into the fund, and at the same time submitting payment to the fund management agency.

Ʀ The sequence of document circulation for a sales transaction at the company is described in the following diagram:


Figure 2.4 Flexible accounting flow chart of retail - wholesale business

Source: Accounting Department

When an economic contract arises, a customer's order request, the department

The business creates a sales order and sends it to the sales department. After the sales department checks the quantity of goods in the book, it will make a sales order. Based on the sales order and delivery note, the accountant will make a sales invoice (VAT invoice). VAT invoices and sales orders are used to determine sales revenue and output VAT payable to the State. The invoice is made into 3 copies: Copy 1 (purple) is kept on the original VAT invoice book, copy 2 (red) is given to the customer.


The third copy (blue) is kept in the company and circulated internally to departments upon request.

If the customer acknowledges the debt, the accountant will make a record of goods delivery and debt confirmation. This document is made into 3 copies: Copy 1 (white) to protect the inspection.

When exporting goods, copy 2 (pink): Give to customer, copy 3 (blue): keep the book.

If the customer pays in cash, the accountant makes a receipt, each receipt usually has an attached table. The receipt is made up of 3 copies by the accountant, with all the information on the receipt filled in, then the director approves and transfers it to the cashier to do the cash entry procedure. The cashier keeps 1 copy to record in the cash book, 1 copy is given to the payer, and 1 copy is kept at the place where the receipt was made. At the end of the day, all receipts are accompanied by original documents to record in the accounting book.

If the customer pays by bank transfer, the company will receive a Bank Credit Note, this document is the basis for confirming the payment.

Customer transferred to the company account.

In general, the organization of the circulation of accounting documents is carried out scientifically by the Company, with specific and clear regulations on the principles of establishment and use.

Checking documents in some major transactions. The basic document circulation process is suitable for the characteristics of the Company's business management organization, ensuring the collection, use and checking of documents in major transactions. The work of preserving and storing documents is also carried out according to regulations.

User account

To record revenue, Loi Dong Trading and Production Company Limited uses account 511 - Sales revenue and service provision.

Account 511 has the following secondary accounts:

Account 5111: Revenue from sales of goods

In order to evaluate the consumption process as well as the profit contribution of each item, for each level 2 account, the company also monitors in detail each product category. Specifically as follows:

Account 51111: Revenue from furniture sales;

Account 51112: Revenue from sale of office equipment;


Account 51112: Revenue from sale of electronic and refrigeration equipment.

Accounting sequence

For example: On January 10, 2020, Loi Dong Trading and Production Company Limited sold 5 168K1DT electronic safes to Huyen Nguyen Chau Company Limited for 6,000,000 units. The customer paid by bank transfer.

When the above transaction occurs, the accountant will issue VAT invoice No. 0017865 (Appendix 2.1), and issue invoice No. 1012 (Appendix 2.2). The accountant will enter data into Fast software based on the original documents, the software will automatically update the detailed books and general ledgers of the corresponding accounts.

General ledger (Appendix 2.5), sales detail ledger (Appendix 2.3), and account ledger 511 (Appendix 2.4).

2.3.1.2. Accounting for revenue deductions

Account 521 “Revenue deductions” Reflects revenue deductions for customers such as returned goods, sales discounts. As for trade discounts, the company always discounts on the invoice of the customer's last purchase, so the company's accountant does not track them through Account 521.

2.3.1.3. Accounting for financial activity revenue

Financial revenue: Is the total value of economic benefits that the enterprise receives from investment and business activities on capital, contributing to increasing equity. At Loi Dong Trading and Production Company Limited, financial revenue comes from items such as bank deposits and foreign currency exchange differences.

Certificate of use

Some accounting documents used are: Payment vouchers, receipt vouchers, debit/credit notes from the Bank and some other documents on loan repayments (credit notes from the bank), reasons for selling foreign currency, exchange rate information arising in business (foreign currency sale contract with the bank, deposit slip into the account, exchange rate notice of the commercial bank, average interbank exchange rate notice).

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