General Financial Operations Issues

Accounting chart

TK111,112… TK331 TK111,112

Payment by cash

including pre-order

Recover overpayment

TK511

TK151,152,153

212,213,241

Payment by goods, services

Material value

assets …purchased on credit

TK131

TK133

Clearing

TK152,153..

VAT

input

Discount on purchases, TM discounts,..

TK627,641,..

TK133

Service

buy on credit

VAT

corresponding

During the purchase of West African cotton 1/1-8 and West African cotton 1-3/32 of Trung Dung Company (Indirect import). Contract T03491 Total payment is 543,241,000 VND, of which transportation cost is 1,567,000 VND. Paid by bank transfer 243,241,000 VND by bank transfer, remaining debt

Accounting entries (unit: 1000 VND)

Debit account 152: 543 241

Debit account 133: 54 167.4

Credit account 112: 243 241.1

Credit account 331: 300,000

Vu Duong Company Limited PAYMENT DETAILS WITH SELLER

109 Lang Road TK331

Subject: Trung Dung Company, Quarter I, 2005

Unit: 1000 VND

TT	Document		Interpretation	TKĐU
TT			Interpretation	TKĐU
			Opening balance					1004817.14
4/1	N58	4/1	Buy Cotton Contract 03475 not yet paid	152		909351		1914168.14
			VAT 10%	133		90935.1		2005103.24
9/1	T76	9/1	Payment according to contract 03474	111	450 000			1555103.24
9/1	C32	9/1	Purchase Discount (1.5%)	152	13640.265			1541462.975
6/2	N63	6/2	Payment of debt at the beginning of the period	112	1004817.14			536645.835
7/3	TC2	7/3	Purchase invoice T03491 still outstanding	152		300 000
...	…	…	…	…	…	…	…	…
			Co-arising		1518754.1	1411894.51
			Ending balance					897 957.55

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Number of occurrences

Debt Debt

Balance

Have

March 31, 2005

Chief Accountant

(Signature, full name) (Signature, full name)

Company Limited

Vu Duong SUMMARY OF PAYMENTS WITH SELLERS

Account Name 331

First quarter of 2005

Unit: 1000 VND

Interpretation	Beginning balance		Occurred during the period		Residual	end of period
Interpretation	In debt	Have	In debt	Have	In debt	Have
1 2	May 20 Company XN5 Service Trading Company No. 5	200890.97	2692662.46	968166 75184109	1634098 90816661		15094591 91686667
3	Trung Dung Company		1004817.14	1518754.1	1411894.51		897957.55
4	Vu Minh Company Limited		517515.19	41681861	6165097		6146109
5	Son Tra Textile Company		191461.145	9085987	8579878		7176166
..	… Total	…	… 29 358151.5	… 39 894 571	… 39 148 178	…	… 29 211 758.5

March 31, 2005

Chief Accountant

(Signature, full name)

LEDGER

Account Name: “Payable to Seller” Number: 331

First quarter of 2005

Unit: 1000 VND

NT GS

Document		Interpretation	TK Yes	Number	money
SH	NT	Interpretation	TK Yes	In debt	Have
			Beginning balance			29 358151.5
31/3		31/3	TTNM Summary Table	152		26 6576 909
				155		14 567 700.4
				…		…
			Pay for people	111	10 450 662.3
			sold in period	112	23 252 567.65
			….	…	…..
			Co-arising		39 294 571.09	39 148 178.2
			Ending balance			29 211 758.5

March 31, 2005

Bookkeeper Chief Accountant Head of unit

(Signature, full name) (Signature, full name) (Signature, full name)

C. Accounting for payment transactions with the state

To monitor the payment status of taxes, fees, charges to the state budget... Accountants use account 333 "Taxes and amounts payable to the State". This account is opened in detail for each obligation (Must be paid, paid, remaining to be paid, overpaid).

Structure TK 333

- Debit side:

+ Amounts paid to the State budget

+ Subsidies approved by the budget

+ Other items and transactions that reduce the amount payable to the State

- Creditor:

+ Amounts payable to the State budget

+ Subsidies received

- Credit Balance: Amounts remaining to be paid to the State budget

- Outstanding balance (if any): Excess payment to the State budget or subsidies and subsidies approved by the State budget but not yet received.

Account 333 is opened in detail into items corresponding to each type of tax according to current tax law.

Besides account 333, accountants also use account 133 for deductible VAT. Structure of account 133

- Debit side: +Collection of actual deductible input VAT incurred

- Credit side: + Input VAT amount deducted during the period

+ Other transactions that reduce input VAT (non-deductible amount, refunded amount, tax amount of returned goods...)

- Debit Balance: Reflects the input VAT amount that has been deducted or refunded but not yet received. Account 133 has 2 sub-accounts

Account 1331: Deductible VAT of goods and services Account 1332: Deductible VAT of fixed assets

VAT is calculated into the taxable price and VAT rate. The amount of VAT payable is determined according to the following formula:

VAT payable

In there

= Input VAT

- VAT

input

VAT

output

= Taxable price of taxable goods and services sold

x VAT rate of that goods and services

VAT

input

= Total VAT recorded on VAT invoices for purchasing goods and services or VAT payment documents for imported goods

LEDGER

Account name: “Deductible VAT” Number: 133

First quarter of 2005

Unit: 1000 VND

NT GS

Document		Interpretation	TK Yes	Number	money
SH	NT	Interpretation	TK Yes	In debt	Have
			Beginning balance		2 465 912,980
31/3		31/3	List of purchased materials,	152	4 374 762.40
31/3		31/3	materials, goods	211	335 000
…		…	…	…	…	….
			Co-arising		5 010 131.45	5 312 353.30
			Ending balance		2 163 691.13

March 31, 2005

Bookkeeper Chief Accountant Head of unit

(Signature, full name) (Signature, full name) (Signature, full name)

LEDGER

Account name: “Taxes and other amounts payable to the State” Account number: 333

First quarter of 2005

Unit: 1000 VND

NT GS

Document		Interpretation	TK Yes	Number	money
SH	NT	Interpretation	TK Yes	In debt	Have
			Beginning balance			2 988 655.121
31/3		31/3	Sales revenue,	131		6 711 314.33
31/3		31/3	and service provision	111		1 418 182.38
			…	…	…	….
			Co-arising		8 224 421.65	8 526 684.24
			Ending balance			3 290 917.711

March 31, 2005

Bookkeeper Chief Accountant Head of unit

(Signature, full name) (Signature, full name) (Signature, full name)

D. Accounting for advances

Advance is the amount of money or materials that the enterprise assigns to an individual or department within the enterprise to perform. To account for the account, use account 141 "Advance". This account is opened in detail for each recipient of the advance. Structure of account 141:

- Debit side: + Amount of materials advanced to employees.

- Creditor: +Pay the advance payment according to the actual payment

+ Handle the remaining advances and collect them back or deduct them from the salary.

- Outstanding Balance: The amount of advance payment not yet paid.

During the period, the advance payment for Mr. Pham Xuan Dinh to drive 90T - 1890 truck was 2,500,000 VND for the freight fee. At the end of the period, Mr. Dinh paid the fee and refunded 400,000 VND.

Accounting (Unit: 1000 VND)

Debit account 141: 2,500

Credit account 111: 2,500

Debit account 111: 400

Debit account 641: 2,100

Credit account 141: 2,500

When there is a need for an advance payment, the subject must have the documents and be approved by the Company's leadership after completing the work during the period. At the end of the period, the subject must present the activities that took place during the period to the leadership.

At the end of the period, compare the advance payment request and summary table of account 141 with the advance payment document.

ADVANCE PAYMENT FORM

February 25, 2005

Full name: Pham Xuan Dinh Address: driver 90T – 35 47

The amount is paid according to the table below:

Unit: 1000 VND

Interpretation	Amount
I	Advance Amount	2 500
1	Amount of advance payments not yet spent	0
2	Advance payment for this period	2 500
II	Amount spent	2 100
1	Payment voucher number 0203	394
2	Payment voucher number 0271	1 756
III	Difference	400
1	Unspent advances (I – II)	400
2	Overpayment (II – I)	0

February 25, 2005 Payer Chief Accountant Cashier Unit Head

taste

(Signature, full name) (Signature, full name) (Signature, full name) (Signature, full name)

LEDGER

Account Name: “Advance” Number: 141

First quarter of 2005

Unit: 1000 VND

NT GS

Document		Interpretation	TK Yes	Number	money
SH	NT	Interpretation	TK Yes	In debt	Have
			Beginning balance		782 347,372
31/3		31/3	Temporary total table	111	252 703,324	275 244,122
			application	152	35 538.22
			Co-arising		288 241,544	295 244,122
			Ending balance		775 344,794

March 31, 2005

Bookkeeper Chief Accountant Head of unit

(Signature, full name) (Signature, full name) (Signature, full name)

VIII. ACCOUNTING FOR FINANCIAL AND UNUSUAL ACTIVITIES

A. Financial activities

1. General issues of financial activities

@.Concept

Financial activities (FS): Are activities related to the mobilization, management, distribution and use of business capital of the enterprise. Therefore, all expenses and incomes related to capital investment or capital trading activities constitute the cost and revenue indicators of financial activities.

Financial activities of an enterprise are activities related to borrowed capital and bank deposits.

To track financial activities, use account 635 "Financial expenses" and account 515 "Financial income".

TK635 structure

- Debit side: + Reflects increased operating expenses.

- Credit side: + Transactions that reduce operating costs

+ Transferring operating expenses to account 911

- TK635 has no balance. Structure of TK515

- Debit side: + Reflects the decrease in financial operating revenue.

+ Transfer to account 911

- Credit side: Reflects the increase in revenue.

- Account 515 has no balance

During the period, based on the arising numbers of account 635 and account 515, the accountant records:

LEDGER

Account Name: “Financial Income” Number:515

First quarter of 2005

Unit: 1000 VND

NT GS

Document		Interpretation	TK Yes	Number	money
SH	NT	Interpretation	TK Yes	In debt	Have
31/3		31/3	Payment discount	155		49 459,511
			maths	413		32 595.03
			Exchange rate difference	..
			…	911	230 448. 12
			Business performance evaluation
			Co-arising		230 448. 12	230 448. 12

March 31, 2005

Bookkeeper Chief Accountant Head of unit

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