Completing the accounting of revenue, expenses and determining business results at Huong Duong Tourism Development and Service Company - 10

Table 2.21: General Journal

Le Hong Phong - Dong Khe - Ngo Quyen - Hai Phong

Huong Duong Tourism Service Development Company Limited

Form No.: 03a – DNN (Issued under Circular 133/2016/TT-BTC dated August 26, 2016 of the Ministry of Finance)

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GENERAL LOG

2017

Unit: Dong

Document

Interpretation	TK DU	Number of occurrences
		SH	NT	IN DEBT	HAVE
		…
PC 18/07	07/07	Pay phone bill	642	2,315,400
			133	231,540
			111		2,546,940
		..
PKT31	12/31	Revenue transfer	511	9,862,965,758
			515	2,983,241
			911		9,865,948,999
PKT32	12/31	Cost transfer	911	9,256,459,482
			632		8,097,504,913
			642		1,158,954,569
PKT33	12/31	Determine corporate income tax	821	121,897,903
			333		121,897,903
PKT34	12/31 12/31	Carry forward corporate income tax expense	911	121,897,903
			821		121,897,903
PKT 35	12/31	Profit after tax	911	487,591,714
			421		487,591,714
		Co-arising		76,651,762,232	76,651,762,232

Hai Phong, December 31, 2017

(Signature, full name)

The chartist

Chief Accountant (Signature, full name)

Manager (Signature, full name, seal)

Huong Duong Tourism Service Development Company Limited

Le Hong Phong - Dong Khe - Ngo Quyen - Hai Phong

the 911 account Form No.: 03b – DNN (Issued under Circular 133/2016/TT-BTC dated August 26, 2016 of the Ministry of Finance)

Table 2.22: Book

LEDGER

Account 911: Determine business results for 2017

Unit: VND

Document

Interpretation	TK DU	Amount
		SH	NT	In debt	Have
		Number of occurrences
PKT31	12/31	Transfer of DTBH	511		9,862,965,758
PKT31	12/31	Transfer of DTHĐTC	515		2,983,241
PKT32	12/31	Transfer of GVHB	632	8,097,504,913
PKT32	12/31	Carryover of business management expenses	642	1,158,954,569
PKT34	12/31	Corporate income tax transfer	821	121,897,903
PKT35	12/31	Carry forward after-tax profit	421	487,591,714
		Add the generated numbers		9,865,948,999	9,865,948,999

Hai Phong, December 31, 2017

(Signature, full name)

The chartist

Chief Accountant (Signature, full name)

Manager (Signature, full name, seal)

Huong Duong Tourism Service Development Company Limited

Le Hong Phong - Dong Khe - Ngo Quyen - Hai Phong

account 421 Form No. S03b– DNN (Issued under Circular No. 133/2016/TT-BTC) August 26, 2016 by Minister of Finance)

Table 23: Book

LEDGER

2017

Account Name: Undistributed Earnings Account Number: 421

Unit: Dong

Document

Interpretation	TKĐU	Amount
		SH	NT	In debt	Have
		Beginning balance			128,562,536
PKT35	12/31	Profit after tax in 2017	911		487,591,714
		Add the number of years generated			487,591,714
		End of year balance			616.154.250

Hai Phong, December 31, 2017

(Signature, full name)

The chartist

Chief Accountant (Signature, full name)

Manager (Signature, full name, seal)

Table 2.24: Business performance report

Huong Duong Tourism Service Development Company Limited

Le Hong Phong - Dong Khe - Ngo Quyen - Hai Phong

Model No.: B02-DNN

(Issued under Circular No. 133/2016/TT-BTC dated August 26, 2016 of the Minister of Finance )

BUSINESS PERFORMANCE REPORT

2017

Unit: VND

INDICATORS

MS	TM	THIS YEAR	YEAR AGO
1	2	3	4	5
1. Sales and service revenue	01		9,862,965,758	8,635,763,916
2. Revenue deductions	02
3. Net revenue	10		9,862,965,758	8,635,763,916
4. Cost of goods sold	11		8,097,504,913	7,034,545,791
5. Gross profit	20		1,765,460,845	1,601,218,125
6. Financial operating revenue	21		2,983,241	2.201.018
7. Financial costs	22
- Including: Interest expense	23
8. Business management costs	24		1,158,954,569	912.835.520
9. Net profit from business activities	30		609,489,517	690,583,623
10. Other income	31
11. Other costs	32
12. Other profits	40
13. Total accounting profit before tax	50		609,489,517	690,583,623
14. Corporate income tax expense	51		121,897,903	138,116,725
15. Profit after corporate income tax	60		487,591,714	552,466,898

Established on December 31, 2017

The chartist

(Signature, full name)

Chief Accountant

(Signature, full name)

Manager

(Signature, full name, seal)

CHAPTER 3

SOLUTION TO IMPROVE ACCOUNTING FOR REVENUE, EXPENSES AND DETERMINING BUSINESS RESULTS AT PHAT COMPANY LIMITED

SUNFLOWER TOURISM SERVICE DEVELOPMENT

3.1. Assess the current status of accounting work in general and accounting for revenue, expenses, and determining business results in particular at Huong Duong Tourism Development and Service Company Limited

3.1.1 Advantages

- Organization of the Company's accounting apparatus: accounting staff are independent, highly qualified, enthusiastic and passionate about their profession, always completing assigned tasks well. The Company always limits errors in financial economics and statistical accounting.

- Accounting documents: The documents used in the initial accounting are all in accordance with the economic and legal requirements of the arising business. Information on accounting transactions is recorded fully and accurately, creating conditions for searching, checking and comparing when necessary. The order of document circulation ensures that the documents created have a practical and legal basis. The storage of documents is relatively scientific and closely monitored, the accountants in which section store the documents related to that section. Therefore, overlap is avoided and the principle of clear division of tasks is ensured.

- Accounting books: accounting books are recorded clearly, in accordance with the regime, stored according to the standards and regulations of the state. The company applies the form of accounting in the form of General Journal. The advantage of this method is to avoid duplicate recording, ensure timely information for business management and quickly summarize data to prepare accurate financial reports.

- Regarding the organization of revenue and cost accounting and determining business results:

- Regarding revenue accounting organization: All economic transactions arising from sales are recorded by accountants in an accurate, timely and complete manner as revenue, which is an important basis for gradually determining business performance results, evaluating the business efficiency of the enterprise, thereby having the right plan in business operations.

- Regarding cost accounting organization: Cost is an issue that managers are always concerned about and find ways to manage to avoid waste. Therefore, the cost accounting work at the company is initially guaranteed to be complete and timely when it arises.

- Regarding the organization of accounting to determine business results: The accounting work to determine business results at the company has partly met the requirements of the company's management board to provide timely and accurate information on the company's business situation. The recording is based on the accounting regime issued by the Ministry of Finance and the actual situation of the company.

3.1.2 Disadvantages

Besides the above advantages in terms of revenue and cost situation and determining business results of Sunflower Tourism Service Development Company Limited, there are still many limitations.

+ Application of payment discount policy: During the consumption process, the company does not apply preferential policies on payment discounts for customers when purchasing goods or paying early compared to the time stated in the contract. Not applying these preferential policies will significantly reduce the number of customers of the company and lead to a decrease in sales revenue and service provision of the company.

+ Regarding accounting books used: The company's accounting system is still lacking and sketchy. The company has not established a detailed account 642 book, so it is difficult to track the content of expense items arising during the period, from which the management of business management expenses is not really effective.

+ Regarding the application of information technology in accounting work: Accounting work at the company still relies on traditional manual accounting. Although it has been applied

Information technology has been applied to accounting work but it has only stopped at opening books and calculating on Microsoft Office (Word, Excel, etc.), so the workload of accountants is still quite large, not reducing the pressure on time and accuracy in bookkeeping and financial reports.

3.2: Some suggestions to improve the accounting of revenue, expenses and determine business results at Huong Duong Tourism Development and Service Company Limited. Suggestion 1: Apply payment discount policy

- Payment discount is the amount of money the seller deducts for the buyer, because the buyer pays for the purchase before the contract deadline.

- Reason : The company should apply a payment discount policy to encourage customers to pay their debts early. Avoid the situation where customers occupy large amounts of capital for a long time.

- Implementation method: Payment discount is calculated on the payment amount (including VAT). Payment discount cannot be recorded on the sales invoice to reduce the price. This is a financial expense that the selling business accepts to pay to the buyer. The seller makes a payment voucher to pay the payment discount. The buyer makes a receipt to receive the payment discount.

To effectively apply payment discount policies, companies must develop appropriate discount policies. Companies can determine discount levels for customers based on:

+ Bank interest rate.

+ Time to pay for goods.

+ Refer to payment discount rates of similar businesses.

Based on the current bank interest rate, I propose an average discount rate of 10%/year --> a monthly discount rate of 0.83%/month.

-Accounting method:

+ When applying payment discount to customers: Debit account 635: Financial expenses

Credit account 131: (If deducted from receivables)

Credit account 111, 112: (If paying by cash or bank transfer)

+ At the end of the period, transfer financial expenses to account 911: Debit account 911: Determine business results

Credit account 635: Financial expenses

Opinion 2: Complete the accounting system

The company also does not open a detailed book of business management costs by cost element, making it difficult to manage costs. In order to monitor and manage business management costs well, the company's accountant should open a detailed account 642 to track costs incurred by element, and for each cost element, a corresponding detailed account is opened:

 Account 642 can be opened in detail into level 2 accounts such as:

o Account 6421: Selling expenses

o Account 6422: Business Management Expenses

In each level 2 account, open details to track cost elements. As for account 6422:

- Account 64221: Management staff costs (salary and salary deductions)

- Account 64222: Material costs

- Account 64223: Cost of tools, equipment and supplies

- Account 64224: Fixed asset depreciation expenses

- Account 64226: Provision expenses

- Account 64227: Cost of purchased external services (electricity, water, etc.)

- Account 64228: Other cash expenses (entertainment expenses, business expenses...)

By opening detailed expense accounts above, it will help the company easily track in detail the business management expenses incurred during the accounting period. From there, it helps the administrator to see which expenses arise a lot, exceed the limit so that timely solutions can be given to help save costs effectively, avoid waste, and increase profits for the company.