2.2.2 Current status of accounting for service revenue 37
2.2.2.1 Service revenue recognition process 37
2.2.2.2 Bookkeeping procedure 41
2.2.2.3 Some transactions arising in 2013 at Hoang Quan Law Company Limited: 43
2.2.2.4 Reflect some arising transactions on ledger account 5113 44
2.2.3 Current status of accounting for financial revenue.46
2.2.3.1 Revenue recognition process 46
2.2.3.2 Bookkeeping procedure 47
2.2.3.3 Some transactions arising in 2013 at Hoang Quan Law Company Limited: 47
2.2.3.4 Reflect some arising transactions on ledger account 515 48
2.2.4 Current status of accounting for revenue deductions 49
2.2.5 Current status of cost accounting for cost of goods sold. 49
2.2.6 Current status of accounting for sales costs 49
2.2.7 Current status of accounting for business management costs ..49
2.2.7.1 Payment process. 49
2.2.7.2 Bookkeeping procedure 52
2.2.7.3 Some transactions arising in 2013 at Hoang Quan Company Limited. 54
2.2.7.4 Reflect some arising transactions on ledger account 642 55
2.2.8 Current status of corporate income tax accounting 57
2.2.8.1 Accounting sequence 57
2.2.8.2 Some business transactions in 2013 of Hoang Quan Law Company Limited
…………………………………………………………………………57
CHAPTER 3: CONCLUSION AND RECOMMENDATIONS 58
3.1 Conclusion 58
3 1 1 Advantages 58
3.1.1.1 About the operating apparatus of Hoang Quan 58 Law Company Limited
3.1.1.2 About the accounting organization. 58
3.1.1.3 About accounting work 59
3.1.2 Disadvantages 60
3.2.2.1 On business operations 60
3.2.2.2 About the accounting system 60
3.2.2.3 Regarding revenue and cost accounting 60
3.2 Recommendation 61
3.2.1 About business operations 61
3.2.2 About the accounting system 61
3.2.3 On revenue and expense accounting 62
3.2.3.1 Completing the accounting work for service revenue at Hoang Quan Law Company Limited 62
3.2.3.2 Completing the accounting work for trade discounts at Hoang Quan Law Company Limited 63
3.2.3.3 Complete the accounting of cost of goods sold. 64
3.2.3.4 Completing the accounting work for business management costs. ..67
CONCLUSION 68
REFERENCES 69
LIST OF ABBREVIATIONS
Ltd.
Limited liability | |
Fixed assets | Fixed assets |
VAT | Added value |
NH | Bank |
TK | Account |
TTDB | Special consumption |
Export | Export |
State budget | State budget |
KTT | Chief Accountant |
KTTT | Payment accounting |
TMCP | Joint stock trading |
SP | Product |
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LIST OF TABLES
Table 2.1: Personnel structure of Hoang Quan Law Company Limited Table 2.2: Revenue by Customer group in 2013
LIST OF CHARTS, GRAPHS, DIAGRAMS
Diagram 1.1: General accounting account 511 - Sales and service revenue Diagram 1.2: General accounting account 515 - Financial activity revenue
Diagram 1.3: General accounting account 711: Other income
Diagram 1.4: General accounting account 521: Trade discount Diagram 1.5: General accounting account 632: Cost of goods sold
Diagram 1.6: General accounting account 635: Financial expenses Diagram 1.7: General accounting account 641: Sales expenses:
Diagram 1.8: General accounting account 642: Business management costs
Diagram 1.9: General accounting account 821: Corporate income tax expense Diagram 2.1: Personnel organization.
Diagram 2.2: Organizational chart of accounting apparatus Diagram 2.3: Diagram of accounting for cost of goods sold
Diagram 2.3 Accounting process for financial revenue of Hoang Quan Law Company Limited
Flowchart 2.1: Cash collection process at the company
Flowchart 2.2: Process of collecting money by bank transfer Flowchart 2.3: Process of collecting money
Flowchart 2.4: Cash disbursement process at Hoang Quan Law Company Limited Flowchart 2.5: Payment voucher recording process
Chart 2.1: Personnel structure of Hoang Quan Law Company Limited by educational level Chart 2.2: Personnel structure of Hoang Quan Law Company Limited by age
Chart 2.3: Service revenue by target group in 2013
INTRODUCTION
1 Reason for choosing the topic
Vietnam is entering a period of completing the goal of becoming a modern industrialized country before 2020 and increasingly affirming its position in the international arena. The global integration environment opens up with opportunities as well as great challenges, requiring domestic companies to constantly change to improve themselves and survive in the increasingly harsh elimination mechanism of the market.
The problem for businesses today is how to make business operations more and more effective, business capital always stable and growing, and maximize profits?
Revenue and expenses are quality indicators that truly reflect the business production situation of the enterprise and are the source to determine the enterprise's profit. Accurately accounting for revenue and expenses in detail will help business leaders have an overall view, evaluate the efficiency of production and business, and from there, propose effective measures to increase profits so that revenue is maximized while operating costs are reasonable and economical. Thus, it can be seen that accounting for revenue and expenses in a company is important.
Realizing the importance of the accounting system in general and the accounting department in particular in revenue and cost accounting in evaluating the performance of the enterprise. During the practical learning process when interning at Hoang Quan Law Company Limited, I found that the revenue and cost accounting work at the company was quite simple and did not fully reflect the actual situation of the company. This easily leads to wrong decisions for managers as well as investors. With the above practical experience and theoretical knowledge equipped at school, I chose the topic for my graduation thesis as: " PERFECTING THE REVENUE AND COST ACCOUNTING WORK AT HOANG QUAN LAW COMPANY LIMITED".
2 Research objectives
I conducted this topic to learn about the process of organizing accounting work, circulating accounting documents, evaluating the performance and business of enterprises.
Review the implementation of the accounting system in general and the accounting of revenue and expenses in particular in the enterprise, is that accounting different from what was learned in school? Thereby, it is possible to draw out the advantages and disadvantages of the accounting system, and at the same time, make some recommendations to contribute to the improvement of the accounting of revenue and expenses so that the business activities of the enterprise become more and more effective.
3 Scope of research
- About space: Hoang Quan Law Firm LLC
- About time: The topic was carried out from April 28, 2014 to July 20, 2014.
- The data analyzed is 2013 data.
4 Research methods
Data collection method through documents, forms, vouchers, and related accounting books.
Observation and analysis method: observe, collect information and then analyze the information collected during the process of practical research to see the advantages and disadvantages of revenue and cost accounting and determine the company's business results and see the difference between reality and theory. This will provide more complete measures for the accounting work of the enterprise.
Direct interview method with relevant people
5. Topic structure
Chapter 1: Theoretical basis for accounting for revenue and expenses of Hoang Quan Law Company Limited.
Chapter 2: Current status of revenue and expense accounting at Hoang Quan Law Company Limited.
Chapter 3: Conclusion and recommendations
CHAPTER I: THEORETICAL BASIS OF ACCOUNTING FOR REVENUE AND EXPENSES IN ENTERPRISES
1.1 The necessity of accounting for revenue and expenses in enterprises
Accounting in general and accounting for revenue and cost accounting in particular play an extremely important role in enterprises. Accounting for revenue and cost is an economic management tool serving management and supervision activities. One of the secrets to help economic managers succeed in choosing and making accurate business decisions is to use information provided by accounting. Accurate accounting of costs and revenue is very important for enterprises. This work helps collect, process and provide information for business administrators to perceive and evaluate the production and business activities of their enterprises, on that basis, make decisions, development directions as well as improve the efficiency of business operations. At the same time, good implementation of cost and revenue accounting is also the basis for the board of directors to promptly detect and overcome existing problems, discover new potentials to ensure the existence and development of enterprises in the self-accounting mechanism of the market economy in our country.
1.2 Concept and tasks of revenue and cost accounting
1.2.1 Revenue
According to accounting standard No. 14 "Revenue and other income" issued under Decision No. 149/2001/QD-BTC dated December 31, 2001 of the Minister of Finance:
Revenue: Is the total value of economic benefits that an enterprise receives during the accounting period, arising from the enterprise's normal production and business activities, contributing to increasing equity.
Types of revenue:
Sales and service revenue: Is the total amount of money collected from transactions and revenue-generating activities such as selling products, goods, providing services to customers, including surcharges and additional fees in addition to the selling price (if any).
Internal consumption revenue: Is the amount of money earned from selling goods, products, and providing internal consumption services between affiliated units within the same company or corporation, calculated at internal selling prices.
Financial revenue: Income related to financial activities including interest revenue, royalties, dividends, shared profits and other financial revenue of the enterprise.
Other income specified in this standard includes revenues from irregular activities, other than revenue-generating activities, including:
- Revenue from liquidation of fixed assets, sale of fixed assets;
- Collect fines from customers for breach of contract;
- Collect insurance compensation;
- Collected receivables that have been written off and included in previous period expenses;
- Debts payable that are now ownerless are recorded as an increase in income;
- Collect reduced and refunded taxes;
- Other income.
Revenue deductions: Trade discounts, sales discounts, sales returns, VAT paid under the direct method, import and export taxes and special consumption taxes are included in initially recorded revenue to determine net revenue as the basis for calculating business results in the accounting period.
- Trade discount: Is the amount that a business reduces the listed price for customers who buy in large quantities.
- Sales discount: A deduction given to the buyer due to poor quality, incorrect specifications or outdated products.
- Value of returned goods: Is the value of the volume of goods sold that have been determined to be consumed but are returned by customers and refused to pay.
- Payment discount : Is the amount of money the seller deducts for the buyer, because the buyer pays for the purchase before the contract deadline.
1.2.2 Cost
According to accounting standard No. 01 - "General standard": Costs include production and business costs arising in the course of normal business operations of an enterprise and other costs that an enterprise must spend to carry out its activities in a certain period.
Types of costs:
Cost of goods sold: Is the value of capital products, materials, goods, labor, and consumer services.
receiver
Selling costs: Are all costs incurred in the process of selling products.
goods, services
Business management costs: Are all costs related to business management, administrative management and general management of the entire enterprise.
Financial expenses: Including expenses or losses related to financial investment activities, costs of lending and borrowing capital, costs of contributing capital to joint ventures, associations, transfer losses, short-term securities, transaction costs of selling securities. Provisions for devaluation of securities investments, losses arising from selling foreign currencies, exchange rates, etc.