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Detailed Accounting Procedure, General Accounting:



Image 4.5: The software's bank statement section.

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4.2.3. Other income accounting

Other income at the Company arises from adjustments to reduce warranty costs at projects when the warranty expires but there are no warranty costs incurred, debt reduction adjustments, income from employees using phones beyond the limit, software errors, excel, and other unusual income of the Company.

4.2.3.1. Documents used:

The documents used by the Company for accounting include: settlement sheet for keeping warranty money for projects, value added tax invoices, payroll, etc.

4.2.3.2. User account:

Level 1 account: Account 711 “Other income”

Level 2 account: Account 7111 "Other income: bonuses, compensation" Account 7112 "Other income: liquidation, sale of fixed assets"

4.2.3.3. Actual economic transactions arising:

Task 1:On January 31, 2015, based on the payroll, deducted from the employee's salary in January 2015 due to excess phone usage in December 2014 according to regulations, the accountant recorded accounting voucher 41, recording:

Debit account 3341: 4,248,870

Credit account 7111: 4,248,870

Task 2:On June 8, 2015, deducted debt from Truong Hai Minh due to blackened veneer according to the deduction record dated May 20, 2015, the accountant recorded according to accounting voucher No. 3 dated June 8, 2015 (Appendix 05), recorded:

Debit account 3311: 216,061,527

Credit account 7111: 216,061,527


Task 3:On July 31, 2015, based on the payroll, deducted from the employee's salary in June 2015 due to excessive phone usage in April 2015 according to regulations, the accountant recorded according to accounting slip No. 40 dated July 31, 2015, recording:

Debit account 3341: 1,295,611

Credit account 7111: 1,295,611


Task 4:December 31, 2015: Handling of debt for registration fee, social insurance, registration fee for 29-seat County vehicle of Ngoc An Company according to accounting slip No. 62 dated December 31, 2015, recorded:

Debit account 3388: 700

Credit account 7111: 700

Similar to other income recognitions in 2015.

Total other income in 2015 was 556,359,145 VND. (Appendix 11)

4.2.3.4. Procedure for recording detailed accounting books and general accounting books:

Based on the documents to check and prepare the accounting vouchers, after completing the documents, transfer them to the chief accountant for approval, then reflect them in account 711, at the end of the period, transfer them to account 911 to determine the business results.

Recording other income into the software is done on the following interface:


Figure 4.6: The software's general operating system.


Image 4.7: Accounting voucher section of the software.



Image 4.8: Accounting voucher input interface of the software.


4.3. Costs incurred during the sales process

4.3.1. Accounting for cost of goods sold

The cost of construction products at the Company is formed from the following items:

- Cost of raw materials.

- Labor costs.

- General production costs, including: Administrative management costs of each project, labor costs for travel to the projects and other general costs at the project.

All of the above expenses are collected in account 154, and at the end of the period will be transferred to account 632 to determine the cost of completed works during the period.

At the end of the period, when the construction volume acceptance table has not been received, the accountant will base on the construction contract progress to provisionally deduct the cost of each project.

4.3.1.1. Documents used:

VAT invoice

Actual project settlement table

Detail book of accounts 154, 632; general ledger of accounts 154, 632; general journal


4.3.1.2. User account:

Level 1 account: Account 632 "Cost of goods sold", at the company is divided into level 2 accounts as follows:

Account 6321: Construction cost Account 6322: Goods cost

4.3.1.3. Procedure for circulating cost of goods sold documents:


Contract, Order


VAT invoice


Enter data into software


Note

Daily Record


4.3.1.4. Actual economic transactions:

Task 1:On June 30, 2015, based on the detailed ledger account 154 for the Southwest Warehouse project, the accountant transferred the project's second quarter cost of goods sold, recording:

Debit account 6321: 8,000,000,000

Credit account 1541: 8,000,000,000

Task 2:On June 30, 2015, based on the detailed ledger account 154 for the Gateway project, the accountant transferred the project's second quarter cost price, recording:

Debit account 6321: 711,556,988

Credit account 1541: 711,556,988

Task 3:On June 30, 2015, based on the detailed ledger account 154 for the BRODARD bakery project, the accountant transferred the project's second quarter cost of goods sold, recording:

Debit account 6321: 916,033,852

Credit account 1541: 916,033,852

Task 4:On June 30, 2015, based on the detailed ledger account 154 for the Masan office project on the 8th floor, the accountant transferred the project's second quarter cost of capital, recording:

Debit account 6321: 36,402,301

Credit account 1541: 36,402,301

Task 5:On June 30, 2015, based on the detailed ledger account 154 for the Apricot Hanoi project, the accountant transferred the project's second quarter cost price, recording:

Debit account 6321: 4,000,000,000

Credit account 1541: 4,000,000,000


Similar to the times of recording the cost of construction works in 2015

Total cost of goods sold in 2015 is 167,167,424,782 VND (Appendix 11)


4.3.1.5. Recording sequence

Accounting is done through type 6 accounts such as accounts 621, 622, 627 then transferred to account 154, when revenue arises, the accountant transfers it to cost of goods sold account 632, so at the end of the period, based on the arising numbers of accounts 621, 622, 627, the accountant makes a summary table of construction cost, checks and prepares accounting vouchers. After submitting the accounting vouchers, they are transferred to the chief accountant for approval, then reflected in the general ledger account 154, then revenue arises and is transferred to account 632. At the end of the period, account 632 is transferred to account 911 to determine business results.

The implementation of transfer entries into the software is done on the following interface:

- Accountant enters the general section as shown in figure 4.5.


Image 4.9:The software's automatic transfer section.


4.3.2. Accounting for sales costs

The company's selling costs mainly include: shipping costs, commissions, and construction warranty costs.

4.3.2.1. Documents used:

- Related invoices

- Payment request

- Payment voucher, payment order, debt notice

- Detailed ledger, general journal of accounts

4.3.2.2. User account:

Level 1 account: Account 641 "Cost of sales", at the company is divided into level 2 accounts as follows:

Account 6411: Sales staff costs Account 6412: Packaging material costs

Account 6413: Cost of tools and supplies Account 6414: Fixed asset depreciation costs Account 6415: Construction warranty costs Account 6417: Cost of purchased external services Account 6418: Other costs in cash

4.3.2.3. Sales expense voucher circulation process:


Original documents, invoices, receipts, credit notes


Create accounting vouchers in the software


Note:Daily Record


4.3.2.4. Actual economic transactions arising:

Task 1:On March 30, 2015, the accountant recorded the warranty costs of Madam Thanh's project according to voucher number 20 dated March 20, 2015:

Debit account 6415: 320,635,510

Credit account 1541: 320,635,510


Task 2:On July 24, 2015, the accountant recorded the cost of organizing the 2014 year-end party for workers on February 8, 2015 for Ms. Le Thi Nguyet, according to voucher number 48:

Debit account 6418: 31,457,260

Credit account 3388: 31,457,260

Similar to the times of recording sales expenses in 2015.

Total selling expenses in 2015 were 353,899,780 VND (Appendix 11)

4.3.2.5. Detailed accounting and general accounting procedures:

Based on the documents to check and prepare the accounting vouchers, after completing the vouchers, transfer them to the chief accountant for approval, then reflect them in account 641, at the end of the period transfer them to account 911 to determine the business results.


4.3.3. Business management cost accounting

The company's business management costs mainly include: business management costs, administrative costs (salaries, purchased materials, other related costs, etc.), and expenses for reception and business trips.

4.3.3.1. Documents used:

Documents used at the Company:

- Payment request form, approval request form.

- Value added tax invoices, parking and road toll tickets.

- Bank Debt Notice.

- Salary payment table.

4.3.3.2. User account:

The company uses account 642: “Business management expenses”. This account has the following sub-accounts:

- Account 6421: Salary expenses, deductions based on employee salaries.

- Account 6422: Cost of materials used for office department.

- Account 6423: Cost of tools and equipment used for office department.

- Account 6424: Depreciation costs of machinery and equipment of the office department.

- Account 6425: Road, bank, and gasoline fees.

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