Financial Activity Revenue Accounting Chart

Account 515 has no opening and closing balance. Accounting diagram

Diagram 1.2: Diagram of accounting for financial activity revenue

1.2.1.3 Other income accounting

Certificate of use

Receipt

- Accounting voucher

- Minutes of handover and liquidation of fixed assets

- Other relevant documents

User account

Account 711 – Other income: This account is used to reflect income other than the business's revenue-generating activities.

Account structure 711

Debit account 711 Credit

- Value added tax payable (if any) on other income at enterprises paying VAT calculated by the direct method;

- At the end of the accounting period, transfer other income arising during the period to account 911 "Determining business results".

- Other income arising during the period.

- Income from sale and liquidation of fixed assets.

- Collect money from customers who violate contracts; Collect bad debts that have been written off.

- Taxes refunded by the State budget; Income from gifts, cash and in-kind gifts from organizations and individuals to businesses.

- Business income of

previous years were missed.

 Debt Incurrence

 Generate Yes

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Account 711 has no ending balance.

Accounting Diagram

Account 3331 Account 711 – Other income Account 3331 Account 111,112

VAT payable

by direct method (if any)

(if any)

Collecting sales and liquidation of fixed assets. Collecting fines from customers who violate regulations.

economic contract

Account 111, 112

Recovery of bad debts that had been written off

Account 911

Account 152,156, 211

End of period income transfer

other arising during the period

Receive sponsorship, donations of materials, goods, and fixed assets

Account 152, 155, 156 Account 221

Joint venture capital

Linked by materials, goods Price difference evaluation

back > book value

Account 331, 338

Transfer of debt with unknown owner Penalty deducted from receipt

deposit, bet

Account 352

Return of expense reserve

Warranty for unused construction works

Diagram 1.3: Diagram of accounting for other income

1.2.2 Cost accounting in small and medium enterprises

1.2.2.1 Accounting for cost of goods sold

Methods of determining cost of goods sold

To calculate the value of goods delivered from the warehouse, accountants can apply one of three methods for calculating the value of goods delivered from the warehouse according to the provisions of the "Inventory Accounting Standards".

- First in, first out (FIFO) method

- Specific fact method

- Weighted average method after each entry or at the end of the period

First in, first out (FIFO) method

According to this method, accountants assume that the first imported goods will be sold first. The first imported goods will be sold first before the next imported goods. The actual price of the first imported goods will be used to calculate the actual price of the first exported goods. Thus, the ending inventory value will be the actual price of the goods imported last or near the end of the period.

Specific fact method

According to this method, the price of each type of goods will remain the same from the time of import until the time of export (except in case of adjustment). When exporting a type of goods, it will be calculated according to the actual price of that type of goods.

Weighted average method

Value of goods delivered = Quantity of goods delivered x Average unit price

 Weighted average for the whole period :

Beginning inventory value + Import value during the period

Average unit price for the whole period =

Number of inventory + Number of imports during the period

 Weighted average :

Actual value of inventory after import i

Average unit price after import i =

Actual quantity of inventory after import i

Certificate of use

- VAT invoice (form 01 - GTKT)

- Sales invoice (form 02 - GTTT)

- Delivery note (form 02 – VT)

- Other relevant documents

Accounting accounts used

Account 632 – Cost of goods sold

This account is used to reflect the capital value of products, goods, services, investment real estate, and production cost of construction products (for construction enterprises) sold during the period.

Account structure 632:

For businesses accounting for inventories using the perpetual inventory method:

Debit account 632 Credit

- Cost of goods and services sold during the period.

- Raw material costs, labor costs exceeding the normal level and fixed general manufacturing costs that are not allocated are included in the cost of goods sold in the period.

- Inventory losses and damages after deducting compensation due to personal liability.

- The cost of self-made construction of fixed assets exceeding the normal level is not included in the original price of completed self-built or self-made tangible fixed assets.

- Amount of provision for inventory price reduction.

- Transfer the cost of products, goods and services sold during the period to account 911: "Determining business results".

- Reversal of inventory price reduction provision at the end of the fiscal year.

- Value of returned goods returned to warehouse.

∑ Debt Incurrence

∑ Generate Yes

For businesses accounting for inventories using the periodic inventory method:

Debit account 632 Credit

- Carry forward the cost of finished products in inventory at the beginning of the period;

- Cost of goods exported during the period;

- Cost of finished products in stock and completed services;

- Amount of provision for inventory price reduction.

- Carry over cost of goods sent for sale but not yet consumed;

- Carry over cost of finished products in inventory at the end of the period;

- Reversal of provision for inventory price reduction at the end of the fiscal year;

- Transfer the cost of goods sold during the period to the Debit side of account 911 "Determining business results";

- Transfer the cost of finished products sold and completed services determined to be sold during the period to the Debit side of Account 911 "Determining business results".

business

∑ Debt Incurrence

∑ Generate Yes

Account 632 has no opening and closing balance.

Accounting chart: