CN 21. BH, XĐKQKD

MINISTRY OF FINANCE
ACADEMY OF FINANCE
STUDENT: LE KIM THOA

CLASS: CQ 54/21CL02
GRADUATION THESIS
TOPIC: “ACCOUNTING FOR SALES AND BUSINESS RESULT IN
PHU THO EDUCATIONAL BOOK AND EQUIPMENT JOINT
STOCK COMPANY”
Major: Business Accounting

Code: 21
Supervisor : Tran Thi Ngoc Diep, MAc
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DECLARATION
I hereby declare that this thesis is my own work and effort and that has
not been submitted anywhere for any award. Where other sources of
information have been used, they have been acknowledged.
The data and results described in the thesis are derived from the actual
situation of the practice company.
Hanoi, May, 2020

Student
Le Kim Thoa
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PREFACE
In order to survive and develop in a market economy, there is the
management of the socialist-oriented state. Any business, whether it is
business or commercial, must go through consumption and be effective as a
top target. To do that, managers must be aware of the role of accounting.
Accounting is the source of information needed to effectively manage the
company's economic performance.
Commercial business objects are goods that are labor products purchased
by commercial enterprises to sell in order to meet the needs of consumer
production and export. Enterprises that want to have revenue must have
goods. But the value and value of use can only be done through the
consumption process. Sales are the final stage of the reproduction process.
Good implementation of sales will facilitate the recovery of capital and offset
the cost of production. On the other hand, create conditions for businesses to
well fulfill their obligations to the state budget for investment and
development, improve workers' lives ... More than ever, perfect revenue
accounting, expenses and determine operational results. Business dynamics
are often a problem for businesses. Completion of revenue accounting, cost
and determination of business results will contribute to increasing
competitiveness, improving the quality of business decisions, increasing
financial information transparency.
Currently accounting is an important tool for managing the economy both
micro and macro. Through the internship at Phu Tho educational book and
equipment, JSC, I am particularly interested in the process of consuming
goods, identifying and distributing the business results of the company, so I
choose the part “Accounting for sales and business result in Phu Tho
educational book and equipment, JSC. ”for my graduation thesis.
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Although I tried to understand and receive the enthusiastic help of the
Board of Directors, the staffs the accounting department along with the
teacher's instructions - Dr. Tran Thi Ngoc Diep, I have grasped gain a part of
the actual situation of accounting for sales and determine the business results
at Phu Tho educational book and equipment joint stock company.
In addition to the introduction and conclusion, my topic has 3 chapters:
CHAPTER 1: GENERAL THEORETY OF SALES ACCOUNTING AND
EVALUATION BUSINESS RESULTS IN COMMERCIAL
ENTERPRISES
CHAPTER 2: THE ACTUAL ACCOUNTING FOR SALES AND
BUSINESS RESULT IN PHU THO EDUCATIONAL BOOK AND
EQUIPMENT JOINT STOCK COMPANY.
CHAPTER 3: SOLUTIONS TO COMPLETE SALES ACCOUNTING
AND DETERMINING BUSINESS RESULT AT PHU THO
EDUCTIONAL BOOK AND EQUIPMENT JOINT STOCK COMPANY
However, due to the limited level of reasoning and practical access, my

topic is inevitable. I look forward to receiving comments from the teachers, so
that my topic will be improved.
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TABLE OF CONTENT
CHAPTER 1: GENERAL THEORETY OF SALES ACCOUNTING
AND EVALUATION BUSINESS RESULTS IN COMMERCIAL
ENTERPRISES
1.1 Overview of sales process:
1.1.1 Definition
1.1.2 Characteristics of sales process:
1.1.3 Methods of sales
1.1.4 Payment methods
1.1.5 The task of accounting for sales and determining business results
1.1.6 Accounting for sales revenue:
1.1.7 Accounting for sales deduction
1.1.8 Accounting for Cost of goods sold
1.2 Evaluating business result
1.2.1 Accounting for selling expenses and administrative expenses
1.2.2 Accounting for financial expenses and financial incomes
1.2.3 Accounting for others expenses and other incomes
1.2.4 Accounting for corporate income tax expenses
1.2.5 Accounting for determining business results
1.2.6 Accounting for revenue and business results in terms of accounting
software application
CHAPTER 2: THE ACTUAL ACCOUNTING FOR SALES AND
BUSINESS RESULT in PHU THO EDUCATIONAL BOOK AND
EQUIPMENT JOINT STOCK COMPANY.
2.1 The foundation and development process of company
2.1.1 Overview of the company
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2.1.2 Foundation and development
2.1.3 Characteristics of business operation
2.1.4 The corporate management organization
2.1.5 The organization of accounting works in the company
2.2. The actual accounting for sales and business results in Phu Tho
educational book and equipment joint stock company.
2.2.1. Actual situation of methods of sales and payment at the company
2.2.2. Accounting for sales revenue and revenue deductions
2.2.3 Accounting for costs of goods sold
2.2.4 Accounting for selling and administrative expenses
2.2.6 Accounting for other incomes and other expenses
2.2.7. Accounting for determining business results
2.3.General comments on sales finance accounting and determining
business results at Phu Tho educational book and equipment, JSC.
2.3.1 Advantages
2.3.2 Limitations
EDUCTIONAL BOOK AND EQUIPMENT JOINT STOCK
COMPANY
3.1 Requirements, principles of completing accounting for sales and
determining business results at Phu Tho educational book and
equipment, JSC.
3.1.1 Requirements
3.1.2 Perfecting principles
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3.2. Some suggestions to improve sales accounting and determining
LIST OF DIAGRAM
Flowchart 1.1: Accounting entry for direct sales (applying deductible VAT
method).
Flowchart 1.2 : Accounting entry for direct sales for company applying direct
VAT method
Flowchart 1.3 : Accounting entry for sales through agents
Flowchart 1.4 : Accounting entry for sales in case of deferred or instalment
payment
Flowchart 1.5 Accounting entry for revenue deductions
Flowchart 1.6 : Accounting for COGS applying perpetual inventory method
Flowchart 1.7 : Accounting for COGS applying periodical inventory method.
Flowchart 1.8 : Accounting entry for selling expenses
Flowchart 1.9 : Accounting entry for selling and administrative expenses
Flowchart 1.10 : Accounting entry for financial expenses

Flowchart 1.11 – Accounting entry for other incomes
Flowchart 1.12: Accounting entry for other expenses
Flowchart 1.13 – Accounting entry for other incomes
Flowchart 1.14 – Accounting entry for other incomes from the liquidation or
sale of fixed assets
Flowchart 1.15 : Accounting entry for income tax expense
Flowchart 1.16 : Accounting entry for business result
Flowchart 2.1:Management apparatus
Flowchart 2.2: Accounting apparatus
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IMAGE CATALOG
Figure 2.1: Display screen of “Quản lý kế hoạch- phát hành”
Figure 2.2: Display screen of “ Kế toán 2019”
Figure 2.3: Examples of list of textbook
Figure 2.4: VAT invoice
Figure 2.5: Inventory list
Figure 2.6: Delivery invoice on “ Quản lí kế hoạch- phát hành”
Figure 2.7: The interface of entering sales invoice on “ Kế toán 2019”
Figure 2.8: General ledger of Account 511
Figure 2.9: Table trade discount rate
Figure 2.10: VAT invoice No 002611
Figure 2.12:General ledger of account 521
Figure 2. 14 Payment order
Figure 2.15: General ledger of account 641
Figure 2.16: Water bill
Figure 2.17: The interface of entering payment voucher
Figure 2.18: Electricity bill
Figure 2.19: The interface of entering electricity invoice on “ Kế toán 2019”
Figure 2.20: Payment order
Figure 2.21:Table of salary distribution and social insurance
Figure 2.22: Depreciation table of fixed assets
Figure 2.23. General ledger of Account 635 – Financial expenses
Figure 2.24: General ledger of Account 515 – Financial incomes
Figure 2.25: The interface to transfer revenue and determine business results
on “ Kế toán 2019”
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CHAPTER 1: GENERAL THEORETY OF SALES ACCOUNTING
AND EVALUATION BUSINESS RESULTS IN COMMERCIAL
ENTERPRISES
1.1 Overview of sales process:
1.1.1 Definition
Sales is the transfer of ownership of a product or goods associated with most
of the benefits, or risks to customers, and the customers make payment or
accept payment.
1.1.2 Characteristics of sales process:
Sales process is the process of exchanging ownership, between buyers and
sellers in the operating market. Goods sold to individuals and organizations
outside the enterprise are called external sales, while goods supplied to units
within the same company or corporation are referred to as internal sales. Sale
is the final stage in the business operation of a commercial enterprise.
1.1.3 Methods of sales
Trading activities of commercial enterprises can be done through two
methods:
wholesale and retail.
1.1.3.1 Wholesale
Wholesale : is a form of selling goods in batches or in large quantities. In
fact, buyers are intermediate suppliers, wholesale goods have not reached
consumers directly. Wholesale is conducted by two main ways: wholesale
goods through warehouses and wholesale direct shipping goods.
 Wholesale in stock:
Under this method, purchased goods are put into warehouse, then sold at
warehouse. The method of selling goods in stock has two forms:
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- Direct form: enterprises deliver goods directly to customers at warehouses
or goods preservation places of enterprises. The goods are recorded as sold
when the buyer has received them and sign the confirmation on the sales
invoice.
- Delivery form: the seller will transfer the goods to the buyer’s warehouse or
to a location specified by the purchaser. Goods is considered to be sold when
the buyer has received the goods and paid or accepted to pay for the goods
received.
 Wholesale by shipping directly:
Commercial enterprises after purchasing and receiving goods do not bring
them
back to their warehouse, but sell them directly to the buyer. With this form,
businesses also have two forms: direct delivery or indirect delivery.
- Direct delivery: The enterprise received goods from the seller and deliver
directly to its customer. Goods is considered to be sold when the buyer
received all the goods and signed on sale invoice.
- Indirect delivery: The enterprise received goods from the seller and transfer
these goods to its customer. Goods is considered to be sold when the
customer check and paid or accepted to pay for the goods received.
1.1.3.2 Retail:
It is a method of selling goods and services in small quantities and often
stable
prices. This method usually applies directly to consumers of such goods and
services. Retail has various forms of implementation than wholesale.
 Retail direct money collection: customers pay money, sellers deliver
goods to customers.
 Centralized collection of sales: the customer pays money to the cashier
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and receives the invoice to receive the goods at the delivery counter.
 Sales in the form of customers’ choice: customers choose items
purchased in supermarkets and pay at the cashier counters.
 Sending agents, consignment agents: selling businesses sign contracts
with agents, deliver them goods to sell and pay them commissions.
1.1.4 Payment methods
Payment method is a method of performing property obligations. Payment
may be made by cash, check, bank payment, letter of credit, commodity
Exchange or agreement of the parties.
The method may be paid in one time, more times or periodically ... or
depending on agreement by the parties.
Normally, it is done in two forms: direct payment and deferred or installment
payment.
 Direct payment method: customers pay immediately for enterprises
after
receiving goods, without sending it through a third party.
 Deferred payment method: enterprises only collect part of
money that customers have to pay, customers will gradually pay the rest and a
certain amount of interest. Deferred payment arrangements are often used in
retail sales.
1.1.5 The task of accounting for sales and determining business results
1.1.5.1 The necessity of accounting for sales, determining business results
Sales and determining business results play an important role not only for
businesses but also for the entire national economy. For the enterprise itself, it
is possible to earn income to compensate for the costs and conditions to
expand the business, to improve the lives of workers, to create a source of
accumulation for the national economy. Accurate determination of business
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results is the basis for determining the operational efficiency of enterprises
through the payment of taxes, fees and charges into the state budget;
determining the reasonable costing structure and highly effective using of the
profits earned to harmonize economic benefits.
Accounting for sales and determining business result is an important task
of the enterprise in order to determine the quantity and value of sold goods as
well as the turnover and business results of the enterprise. However, in order
to bring into full play the role of well performing the tasks, it is necessary to
organize accounting work in a scientific way, and at the same time,
accountants must firmly grasp the contents of sales accounting and
determination of business results in enterprises
1.1.5.2 The missions of accounting for sales, determining business results
With an aim to managing sales and evaluating business result, accounting
for sales and determining business results has some missions as below:
- Fully, timely, accurately reflecting and recording occurred transactions and
movements of each type of goods and products under quantity, quality, model
and value.
- Fully, timely, accurately reflecting and recording sales, sales deductions and
expenses of each business activity, as well as following and supervising
customer receivables.
- Accurately calculating and reporting results of each transaction.
- Monitoring the implementation of state obligations and division process of
business result.
- Interpreting accounting reports to information users. Accounting
information
must be reliable, easy-to-read and useful.
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Accounting for sales and determining business result must follow the
accounting
standards and able to adapt to the status of the company’s accounting system.
1.1.6 Accounting for sales revenue:
 Definition:
The concept of revenue according to VAS standard 14 “Turnover and other
income are the total value of economic benefits of the enterprise earned in the
accounting period, arising from normal production and business activities and
other activities of the enterprise, contributing to increasing equity, excluding
capital of shareholders or owners ”.
 Revenue recognition principles:
- Sales of goods are recognized when all of the following five conditions are
simultaneously met:
(a) The enterprise has transferred substantially all risks and benefits of
ownership of the product or goods to the buyer;
(b) The Company retains neither continuing managerial involvement to the
degree usually associated with ownership nor effective control over the goods
sold;
(c) The revenue is determined reliably;
(d) The enterprise has gained or will gain economic benefits from the sale;
(e) Determine the costs associated with the sale.
- The service revenue of a transaction is recognized when the outcome of that
transaction can be reliably determined. Where a transaction involving the
rendering of services is attributable to several periods, revenue is recognized
in each period by reference to the percentage of completion of the transaction
on the date of making balance sheet. The outcome of a transaction can be
measured reliably when all four (4) following conditions are satisfied:
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(a) The revenue is determined reliably;
(b) Be able to derive economic benefits from the provision of that service;
(c) Determine the amount of work completed on the balance sheet date;
(d) Determine the costs incurred for the transaction and the cost to complete
the transaction to provide that service.
In cases where a service provision transaction is conducted in many
accounting periods, the determination of the turnover of a service in each
period is usually made according to the completion rate method. By this
method, the revenue recognized in the accounting period is determined by the
proportion of the completed work.
The completed work is determined by one of the following three methods,
depending on the nature of the service:
(a) Assess completed work;
(b) Comparing the percentage (%) between the completed workload and the
total workload to be completed;
(c) The ratio (%) of expenses incurred to the total estimated cost of
completing the entire service delivery transaction.
The completed work does not depend on recurring payments or advances by
customers.
- Revenue from interests, royalties, dividends and shared profits of an
enterprise is recognized when both (2) of the following conditions are
satisfied:
(a) Be able to obtain economic benefits from the transaction;
(b) The revenue is determined reliably.
 Accounting vouchers:
- VAT invoice
- Payment voucher of goods on consignment.
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- Bill
- Contract
- Other invoices
 Accounts used:
- Account 511 “ Sales”
Content: This account is used to record sales of goods and services of
enterprise in an accounting period, including sales of goods, products and
services provided to parent companies and subsidiaries in the same group
in the accounting period.
This account reflects the turnover of production and business activities
from the following transactions and operations:
+ Sales: Selling products manufactured by enterprises, selling goods
purchased and investment real estate;
+ Service provision: Performing the agreed work under a contract, or
multiple accounting periods, such as provision of transportation, tourism,
fixed asset.
+ Other revenues.
- Structure:
Acc 511
- Payable indirect taxes (VAT, - Revenues from sales of products,
excise, export, environmental goods, real estates invested and
protection); service provision of enterprises
- Turnover from returned goods performed in accounting period
transferred at the end of period;
- Discounts transferred at the end
of period;
- Transfer of net turnover to acc
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911.
Account 511 does not have closing balance and it comprises 4 sub –
accounts:
+ Account 5111: Turnover from sales.
+ Account 5112: Turnovers from finished goods.
+ Account 5113: Turnovers from service provision.
+ Account 5118: Other turnovers.
- Account 3331: Payable VAT
 Accounting entries
Flowchart 1.1: Accounting entry for direct sales (applying

deductible VAT method).
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Flowchart 1.2 : Accounting entry for direct sales for company applying
direct VAT method
Acc 3331 Acc 511 Acc 111,112,131
VAT payable Total price with VAT
Flowchart 1.3 : Accounting entry for sales through agents
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Flowchart 1.4 : Accounting entry for sales in case of deferred or
instalment payment
1.1.7 Accounting for sales deduction

 Definition
Sales deductions include: Trade discount, Cash (or Settlement) discount
and Sale return.
- Trade discount is the amount of money that enterprise credited or paid
to customers who bought goods and services in large volume in accordance
with the agreement that the seller will give trade discount to the buyer.
- Sales return is the amount of goods sold which have subsequently
been returned due to the following reasons: breaching the commitment or the
economic contract, or in a wrong quantity, quality or specifications.
- Sales allowance is a reduction made when the goods are not the same
specification as those mentioned in the economic contract.
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Accountants must monitor in detail trade discounts, cash discounts, and
sales returns for each customer and each type of goods sold, such as: sales
(products, goods), service provisions. At the end of period, transferring all to
account 511 - "Revenue from sales of goods and services" to determine the
net revenue of products, goods and services earned in the reporting period.
 Accounting vouchers
Sales discounts:
- VAT invoice or sales invoice
- Economic contracts
Sales allowances:
- Minutes of sales allowances
- Sales allowances invoice
- Accounting voucher of sales allowances
Sales returns:
- Minutes of goods return
- VAT invoice or sales invoice
- Goods receipt
- Accounting voucher of sales returns
 Accounting used
Account 521: Revenue deduction
- Number of commercial discounts accepted to pay customers;
- Number of sales discounts approved for the buyer;
- Sales of returned goods, money returned to the buyer or deducted from
customer receivables for sold products and goods
- At the end of the accounting period, carry over all trade discounts, sales
rebates, sales of returned goods to account 511 "Sales of goods and rendering
of services" to determine net revenue of reporting period.
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Account 521 does not have closing balances
Revenue deduction are those amounts that are adjusted to reduce the turnover
of the sale of goods, products and services provided by the enterprise in the
accounting period. Includes: Sales discounts, Sales returns and Sales
allowances.
- Trade discounts: are the amount discounts for the buyer who buy
merchandises with large volume
- Sales returns: are the revenue of products, goods, and services returned by
the buyers because of poor quality.
- Sales allowances: are the sales allowances for the purchaser because
products, goods, services provided have poor quality which does not meet the
quality conditions specified in the contract signed between two parties.
 Accounting entry:
Flowchart 1.5 Accounting entry for revenue deductions
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1.1.8 Accounting for Cost of goods sold
1.1.8.1 Definition
The cost of goods sold at the manufacturing enterprise is the actual
production cost of goods sold or the actual production cost of the finished
product. For commercial enterprise, the cost of goods sold is the actual value
of goods sold and the purchase costs allocated to the number of goods sold.
According to VAS 02, cost of goods sold shall be calculated by the following
methods:
- Specific identification method: this method tracks the actual physical
flow of the goods. Each item of inventory is marked, tagged or coded with its
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“specific” unit cost. This method is possible when a business has a limited
variety of high-unit-cost items that can be clearly identified.
- Average cost method ( AVCO) : The average price of all the goods in stock,
regardless of purchase date, is used to value the goods sold. Taking the
average product cost over a time period has a smoothing effect that prevents
COGS from being highly impacted by extreme costs of one or more
acquisitions or purchases.
Average cost method ( AVCO) includes AVCO Periodic and AVCO
Perpetual
+ AVCO Periodic: By the end of the period, the value of goods sold in the
period will be calculated.
(Value of goods at the Value of goods

beginning of the period + purchased during the
Weighted
period)
average =
(Number of inventory at Number of goods
unit cost
the beginning of the + purchased during the
period period)
+ AVCO Perpetual: After each purchase, redefining the real value of
inventory and the average unit cost.
Weighted (Value of goods at the Value of goods purchased
+
average beginning of the period before the ith sale)
unit cost =
(Number of inventory at Number of goods purchased
of the ith +
the beginning of the period before the ith sale)
sale
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- First-in, First-out method ( FIFO): The earliest goods to be purchased or
manufactured are sold first. Since prices tend to go up over time, a company
that uses the FIFO method will sell its least expensive products first, which
translates to a lower COGS than the COGS recorded under LIFO. Hence, the
net income using the FIFO method increases over time.
Cost of goods Cost of goods Cost of goods
COGS during left at the increased left at the
= + -
the period opening of the during the closing of the
period period period
1.1.8.2 Accounting for Cost of goods sold ( COGS)

- Goods record
- Goods receipt, goods issue
- VAT invoice
 Accounts used
Account 632 “Cost of goods sold”
- Content: This account is used to record cost of goods, products,
services, investment property, costs of production of construction
products, etc.
Structure:
In case business applies perpetual inventory method.
Acc 632
- Costs price of products, - Transferring cost of
goods, services sold products, goods,
during period. services sold to acc 911
- Costs of raw materials, - Sales returns to be
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part of labor costs in stored
excess of normal level, - Trade discounts, sales
and fixed overhead cost allowance received
unallocated and added to after purchasing
costs of goods during the consumed goods.
period.
- Waste, loss of inventory
after excluding
compensation received
from responsible
individuals.
Account 632 does not have closing balances.
In case business applying periodical inventory method.

Acc 632
- Transferring actual cost - Transferring actual cost
of finished products in of finished products at
the first period. the end of the period.
- Transferring forward the - Transferring the actual
actual cost value of sold capital value of the
goods sent beginning. goods sold at the end of
- Transferring the actual the period.
value of sold goods. - Transferring the actual
value of sold goods to
determine business
results.
Account 632 does not have closing balances
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 Accounting entries:
Flowchart 1.6 : Accounting for COGS applying perpetual
inventory method
Flowchart 1.7 : Accounting for COGS applying periodical inventory

method.
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1.2 Evaluating business result
1.2.1 Accounting for selling expenses and administrative expenses
 Definition
- Selling expenses: are all expenses incurred during the selling process of
goods and services including: expenses for selling and presentation of
products, advertising expense, staff cost, materials and packaging expense,
cost of tools and supplies, depreciation of fixed assets used for selling, other
expenses…
- Administration expenses: are all overhead costs of business including salary
expenses of business‘ administrative staffs (salary, wages, subsidies,...);
social insurance, medical insurance, labor union expenses, unemployment
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insurance of administrative staff, expenses of office materials, labor
instruments, depreciation of fixed assets used for administration, lease rent,
provision for bad debts, outsourced services (electricity, water, telephone, fax,
assets warranty, fire and explosive accidents,...), other cash expenses
(expenses of entertainment, customer conference...)
- Table of salary distribution and social insurance.
- Table of materials allocation.
- Depreciation table.
- VAT invoice, sales invoice.
- Payment voucher, debit note.
 Accounts used
- Account 641: Selling expenses
+ Content: reflect expenses actually incurred in process of selling
products, goods, providing services, including publicity
expenses,demonstration expenses, advertising expenses….
+ Structure:
Acc 641
- Cost incurred relating to - Items reduced selling expense
process of selling products, in the period
goods, rendering services - Transferring selling expenses
incurred in period. into acc 911.
Account 641 has no closing balance.
Flowchart 1.8 :Accounting entry for selling expenses
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- Account 642 : Administration expenses
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+ Content: record overhead costs of business including salary
expenses of administrative staffs, social insurance, medical insurance, labor
union expenses, lease rent, outsourced services ( electricity, water,
telephone, fax,…), other cash expenses…
+ Structure:
Acc 642
- Administrative expenses arising - Amounts recorded to reduce
in the period; administrative expenses;
- The amount of provision for - Refunding provision for bad
bad debts and payables. debts and payables;
- Transferring administrative
expenses into acc 911.
Flowchart 1.9 :Accounting entry for administrative expenses
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1.2.2 Accounting for financial expenses and financial incomes:
1.2.2.1 Accounting for financial expenses
 Definition
Financial expenses are all expenses incurred in relation to financial
activities of the company, such as borrowings…
Contents of financial expenses:
- Costs of manufacturing products, rendering services
- Operating costs of real estate

- Capital investment expenses
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- Expenses covered by other source of fund
- Other financial expenses
- Invoices.
- Documents and notices of the joint venture party
- Payment and receipt voucher
- Debit note and credit note
 Accounts used:
Account 635: Financial expenses
- Content: to record financial operating cost including expenses or losses
relating to financial investment activity, expenses of lending and borrowing,
costs of capital contributed to joint venture, to associates, etc.
- Structure:
Acc 635
- Financial expenses arising - Refunding provision for
in the period. devaluation of trading
- Deductions for setting up securities, provision for loss
additional reserves for of investment in other units.
trading securities price - Amounts recorded to
decrease and provision for reduce financial expenses.
loss of investment in other - Transferring all financial
units. expenses incurred in the
period to acc 911.
Flowchart 1.10 – Accounting entry for financial expenses
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1.2.2.2 Accounting for financial incomes
 Definition:
Financial incomes are all incomes gained in relation to financial
activities of the company, such as borrowings…
Revenue from financial activities includes:
- Interest income such as: loan interest, deposit interest…
- Capital gain from disposing financial investments
- Distributed dividend and profit
- Gain from foreign exchange difference
- Payment discount
- Other financial incomes
- Receipt voucher, payment voucher
- Debit note, Credit note
- Other related documents

 Account used:
Account 515: Financial incomes
 Content: to record revenues from interests, copyrights, dividends,
distributed income, and other income from financial activities of
enterprises.
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 Structure:
Acc 515
- The payable VAT amount - Revenue from financial
calculated by the direct method (if activities arising in the
any); period.
- Transfer of net financial income
to Acc 911.
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Flowchart 1.11 – Accounting entry for financial incomes
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1.2.3 Accounting for others expenses and other incomes
1.2.3.1 Accounting for others expenses
 Definition
Other expenses are the expenses of activities other than production and
business activities that generate revenue of the enterprise.
Other expenses include:
- Expenses from disposal and liquidation of fixed assets and their net book
value
- Losses from revaluation of materials, goods and fixed assets which
are
contributed in joint ventures, associates…
- Compensation for breaches of contracts
- Tax penalty
- Other expenses
 Accounting vouchers.
- VAT invoice, sales invoice
- Receipts and vouchers
- Debit notes and credit notes
- Minutes of handling surplus and missing assets
- Property liquidation record
- Tax receipts
 Account used:
Account 811: Others expenses
- Content: to record expenses incurred from events or operations
separated from normal operation of business.
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- Structure:
Acc 811
- Other expenses incurred. - Transferring all other
expenses incurred in the
period into acc 911.
Acc 811 has no closing balance
Flowchart 1.12 – Accounting entry for other expenses
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1.2.3.1 Accounting for other incomes
 Definition:
Other incomes are incomes that is not a turnover of the business.
These are the incomes generated from activities other than the common
business activities of the enterprise, the specific contents include:
- Proceed of disposal of fixed assets
- Gains from the revaluation materials, goods and fixed asset that
used to contribute or invest into associates or other long-term investment
- Gains from contract compensation by the customers
- Tax refund from the State Budget
- Accounts unidentifiable as to whom they are payable
- Sales-related tips or awards (if any offered by suppliers which are
not included in sales)
- Gifts or donations in cash or in kind by organizations and
individuals
- Other income
- Receipts and vouchers.
- Debit notes and Credit notes.
- Minutes of handling surplus and missing assets.
- Property liquidation and sale record.
- Tax receipts.
 Accounts used
Account 711: Other income
 Content: to record other income, revenues not from operating activity
of business.
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 Structure:
Acc 711
- The payable VAT amount (if - Other income generated in the
any) for other incomes in the period.
enterprise paying VAT by the
direct method.
- Transferring other incomes
arising in the period to Acc 911.
Account 711 does not have closing balance.
Flowchart 1.13: Accounting entry for other incomes
42
Flowchart 1.14 – Accounting entry for other incomes from the
liquidation or sale of fixed assets
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1.2.4 Accounting for corporate income tax expenses
1.2.4.1. Content of corporate income tax expenses
- Each quarter, based on the tax declaration, the accountant records
estimated current income tax into current income tax expense.
- At the end of fiscal year, if the estimated income tax is less than the
actual current income tax to be paid, the accountant should record additional
tax into current income tax expense. In case estimated income tax is higher
than actual income tax to be paid for the year, the accountants should decrease
the current income tax expense by the difference between the estimated
income tax and the actual income tax payable.
- If the entity detects immaterial errors relating to income tax payable of
the previous year the accountants should record the increase or decrease of the
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income tax payable of the previous year in current income tax of the current
year.
- At the end of the fiscal year, the accountants should transfer the current
income tax to determine operation result.
1.2.4.2. Accounting for corporate income tax
 Accounts used.
Account 821: Corporate income tax
- Content: to record income tax expenses of business, including current
income tax and deferred income tax expenses incurred during year, these
expenses will be based to determine operating results after tax of business in
current financial year.
- Structure:
Acc 821
- Enterprise income tax expense - The payable enterprise income tax
incurred in the year; amount in a year is smaller than the
- Enterprise income tax of temporarily deducted enterprise
previous years must be income tax amount;
additionally paid. - The payable enterprise income tax
amount is reduced due to the
discovery of non-material errors;
- Transfer of corporate income tax
expense arising to acc 911.
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Flowchart 1.15 – Accounting entry for income tax
expense
1.2.5 Accounting for determining business results

1.2.5.1 Definition:
Business result is the final result of the normal activities and other
activities during the accounting period. Business result in a certain
period may be profit or loss. In case of loss, business result will be
compensated as regulated and decided by responsible authorities. In
case of profit, business result will be allocated as regulated by the
financial regime.
1.2.5.2 Accounting for business result
 Formula
Net profit = (Opening profit + Other profit) – Income tax
(expense)
Other profit = Other income – Other expense
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Operating profit = Gross profit + Financial profit – Selling
expenses – Administrative expenses
Gross profit = Revenue – Deductions – COGS
Financial profit = Financial income – Financial expense
 Accounts used
Account 911: Net income
 Content: to identify and record results of operating activity and
other activities during an account year.
 Structure:
Acc 911
- Cost transfer. - Transfer revenue and
- Interest transfer. income.
- Loss of losses
Account 911 does not have a closing balance.
Account 421: Retained earnings
 Content: to record business results (profit, loss) after enterprise
income tax and
situation of income distribution or loss handling of enterprise.
 Structure:
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Acc 421
- Number of losses on - Actual profit of
business operations of business activities.
enterprises; - Handling losses.
- Distribution of
interest.
Balance of Debit: The Balance of Credit:
number of unprocessed Number of after-tax
business operations. profits not yet
distributed or unused.
Account 421 has 2 detailed accounts:
- Account 4211 - Undistributed after-tax profit of the previous year
- Account 4212 - Undistributed after-tax profit this year.
Flowchart 1.16 – Accounting entry for business result
48
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1.2.6 Accounting for revenue and business results in terms of accounting
software application
The history of establishment of a system for checking the
availability and movement of assets, controlling all economic relationships,
along with the development of information technology has proved that
computerized accounting is essential. Accounting system is now with high
speed, diversity and well-performed. Applying computerized accounting
system will create certain reliability and make advantages in competitiveness.
For that reason, at the moment, most enterprises using computerized
accounting.
The main feature of computerized accounting is as follow: the transactions
are recorded according to the accounting software program. The accounting
software is designed following to the regulation of one of four accounting
forms or co-ordination accounting forms. The accounting software doesn’t
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need show all procedure of recording transactions into the accounting books
but it can print all accounting books and financial statements according to the
regulation.
Workflow implement
- Step 1: Organize encryption of legal objects.
- Step 2: Organize the accounting system in accordance with the terms of
implementation of accounting on the machine.
- Step 3: Organize an accounting account system.
- Step 4: Select and use the Accounting form.
Specifically with sales accounting and identifying the results of sales,
we have the process of handling sales accounting information and
identifying the results as follows:
(1) The accountant must base on the original documents or original
documents lists to determine debit account, credit account and enter data to
computer according to the charts of the accounting software.
According to the procedure of accounting software, the information
will be entered automatically into the general accounting ledger and
subsidiary ledgers and accounting cards.
(2) At the end of the month, the accountant must close accounting books
(total) and prepare financial statement. Reconciliation between the general
figures and detailed figures is performed automatically and always ensure
correctly and true according to the information were entered to the computer
during the period. The
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accountant can review and reconcile between the figures in the accounting
books and the figures in the financial statements after they are printed on the
paper.
The accountant should perform operation to print financial statements
according to the regulations.
At the end of the month, year the general ledger and sub ledger will
be printed and bound a book and performing legal procedures according to
regulation for recording transactions into the accounting books by hand
form.
The process of processing revenue and evaluating results information:
Step 1: Accounting for transactions (entering data into software):
- Accounting for cost of goods sold and revenue during the
period.
- Accounting for revenue reduction.
- Accounting for selling expenses and administration
expenses.
- Accounting for other financial activities.
Step 2: Transferring and determining operation results.
- Transferring to determine net sales.
- Transferring expenses and net revenue to determine operation results
Step3: Providing information:

- Detailed books, General books.
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- Revenue report, expense report.
- Income statement.
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CHAPTER 2:
THE ACTUAL ACCOUNTING FOR SALES AND BUSINESS RESULT
in PHU THO EDUCATIONAL BOOK AND EQUIPMENT JOINT
STOCK COMPANY.
2.1 The foundation and development process of company

2.1.1 Overview of the company
- General information of Phu Tho educational book and equipment
joint stock company.
- Vietnamese name: Công ty CP sách và thiết bị giáo dục Phú Thọ
- International transaction name: Phu Tho educational book and
equipment joint stock company.
- Address: No 944, Hung Vuong boulevard , Tho Son block, Viet tri
city, Phu Tho province.
- Phone number: (84) 02103910318
- Fax : (84) 02103910318
- Yearly accounting period: from January 1st to December 31st of
fiscal year.
- Accounting currency: VND
- Charter capital: 2,015,150,000 VND
- The number of employees at 31 December 2019 was 19
2.1.2 Foundation and development
Phu Tho educational book and equipment JSC Company is a unit
directly under the Department of Education and Training of Phu Tho
province. The company was established and operated under decision No
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334/QĐ-UB in 23/3/1997 of the People’s Committee of Phu Tho province.
The company has two functions: supplying textbooks and school equipment
to the whole education sector in Phu Tho; guiding and directing the
construction of libraries and laboratories in schools.
In 22/12/2005, the People’s committee issued a decision approving
the equitizing plan No 3498/QĐ-UB on equitizing of the enterprise. From
now, the company officially named Phu Tho educational book and equipment
JSC Company. The company’s head office is: No 44, Hung Vuong boulevard
, Tho Son block ,Viet tri city, Phu Tho province.
The release of textbooks, school equipment and guiding the
construction of libraries and laboratories is one of the essential activities that
contribute to improving the quality of education and training. Under the
direction of the education sector, the company always strives to complete the
mission with the motto: serving education as a purpose and business as a
means to an end. The company’s head office locating on Hung Vuong
boulevard is a significant commercial advantage and the company has a
network of stores, agencies, district department of education of 12 towns
throughout Phu Tho province that form a vast distributable channel so the
system working at the office is more compact.
In recent years, the company has always strived to complete its
political mission and the mission of the education sector: providing textbooks
and educational equipment in a complete, timely, synchronous manner and
good prices to students and teachers including remote areas in order to
creating favorable conditions for teaching.
2.1.3 Characteristics of business operation
Operating industry:
- Purchasing textbooks, reference books, teaching equipment
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- Purchasing stationery, children’s toys, information appliance
- Manufacturing, installing equipment, trimming paper, binding and
printing education-related publications
- Print-related services
- Advising, giving instructions on how to use books and teaching
equipment for schools
2.1.4 The corporate management organization
General meeting of
shareholders
Board of directors Board of

supervisors
Director
/
General deputy director Deputy director in
charge of sales
Information Administration Business

Accounting
technology department planning
department department
department
Flowchart 2.1:Management apparatus
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- General meeting of shareholders: Including all voting shareholders, is the
highest decision-making body of the company
- Board of directors: is responsible for the appointment, evaluation and, if
required, eventual termination of the position of the director.
- Board of supervisors: Supervising the company's administration which is
under responsibility of the Board of Directors and the director ; providing
instructions to the Board of Directors on matters that are of far-reaching
consequence or important in principle and submitting its statement on the
financial statements and the auditors’ report to the Annual General Meeting
- Director: The highest executive in the company and the person in charge of
the company's business operations, the management and operation decisions
of the entire company. The Director of the Company has the right to sign
economic contracts, transaction relations with related agencies.
- General deputy director: A deputy general manager primary responsibility is
to oversee the day-to-day operations, which can include negotiating contracts
with vendors or prospective employees, assigning tasks, leading meetings and
implementing initiatives handed down by the director.
- Deputy director in charge of sales: acting as a counsellor for the director
about company’s business, directing and operating the business planning
department on goods trading, drafting documents, economic contracts related
to the goods trading.
- Information technology department: are also responsible for installing and
setting up the computer network in an organization. You would work in this
capacity to ensure that the network is operating properly and that all
employees have the ability to communicate through the internet and company
intranet. Professional information technology employees keep the system
secure and troubleshoot the system in the event of a problem.
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- Administration department: is responsible for the general running of the
organization. It is mandated to provide administrative and logistical assistance
to all departments of the organization organizing the executive and
managerial apparatus of the company, helping the director to grasp the
technical capability of each employee.
- Accounting department: Building a completed and comprehensive statistical
and accounting organization and organization system in accordance with
current business requirements and financial and accounting regimes. To
record, reflect fully, promptly, accurately and truthfully the economic
operations arising in the course of business operation strictly according to the
prescribed accounting regime. Provide timely, accurate financial data for the
director to plan properly for production and business.
2.1.5 The organization of accounting works in the company
2.1.5.1. The organization of the accounting system
Chief accountant
Warehouse Receivable Fixed asset Payment

accountant accountant accountant accounting
Treasurer
staff
Flowchart 2.2: Accounting apparatus
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Through the diagram, we can see the characteristics of organizing accounting
as follow:
- Chief accountant: is the person who directly organizes and checks the whole
accounting process in the unit under her charge: monitoring, reflecting,
synthesizing data from other accountants, accumulating costs on ledger,
determining business results; ensuring a compact, efficient accounting
system; acting as an advisor for the director to manage company’s finance.
- Payment accounting staff: monitoring and reflecting opening balance and
the situation of the increase and decrease of cash funds, cash at bank, other
liabilities, the situation of liabilities with suppliers.
- Warehouse accountant: to accurately monitor input, output of books, open
goods tracking and build measurement of inventories , ensuring timely supply
books to the market.
- Fixed asset accountant: is accountable for recording the cost of newly-
acquired fixed assets (both tangible and intangible), tracking existing fixed
assets, recording depreciation, and accounting for the disposition of fixed
assets.
- Receivable accountant: monitoring the situation of debts, urging customers
to pay debts. Writing debit advice, comparing debts to promptly recover
capital quickly in order to using capital effectively
- Treasure: Be responsible for cash collection, payment and fund of the
company, conducting irregular or periodic inventory
2.1.5.2. Accounting policies applied at the company
a. Financial year
- The Company’s financial year begins on 01 January and ends on 31
December.
b. Accounting standards and accounting system
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- The company ensures compliance with the requirements of accounting
standards and Vietnamese accounting system issued in accordance with
Circular No. 200/2014 / TT- BTC dated 22 December 2014 as well as
circulars guiding the implementation of accounting standards of the Ministry
of Finance in making financial statements.
c. Declaration of compliance with accounting standards and accounting
- The Board of Directors ensures compliance with the requirements of
accounting standards and Vietnamese accounting system issued in accordance
with Circular No. 200/2014 / TT- BTC dated 22 December 2014 as well as
circulars guiding the implementation of accounting standards of the Ministry
of Finance in making financial statements.
d. Applying accounting law
- The Law on Accounting No. 88/2015 / HQH13 was adopted by the National
Assembly of the Socialist Republic of Vietnam, Session XIII, at its 10th
session, on November 20, 2015, effective from the date of January 1, 2017.
Pursuant to Article 28 - Evaluation and recognition at fair value. However, by
the time of issue of this report, there is no guideline in applying the
assessment and recognition at fair value, therefore, the Company has not
applied the fair value in the presentation of the report finance
e. Financial instruments:
Initial record
- Financial assets
Financial assets included cash and cash equivalents, trade receivables, other
receivables, loans, short-term and long-term investments. At the date of initial
recognition, assets are determined at purchase price, cost of issue plus other
costs directly related to purchasing that financial asset
- Financial liabilities
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Financial liabilities included borrowing, trade payables and other payables. At
the date of initial recognition, liabilities are determined at issue price, plus
costs directly related to issuing that financial asset
Value after initial record
There is currently no regulation on revaluating financial instruments after
initial record
f. Summary major policies
Cash and cash equivalents
Cash and cash equivalents include cash on hand, demand deposits and cash in
progress, short-term investments that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in
value.
Receivables
- Receivables represent the amounts recoverable from customers or other
debtors and are stated at book value less provision for doubtful debts.
- Provision for doubtful debts is made for receivables that are overdue for six
months or more, or when the debtor is in dissolution, in bankruptcy, or is
experiencing similar difficulties and so may be unable to repay the debt.
Inventories
- Inventories are stated at the lower of cost and net realisable value. Cost
comprises cost of purchases, conversion cost and other directly attributable
expenses that have been incurred in bringing the inventories to their present
location and condition. Cost is calculated using the weighted average method.
Net realisable value represents the estimated selling price less all estimated
costs to completion and costs to be incurred in marketing, selling and
distribution.
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- The cost of inventories is stated using weighted average method and
accounted using periodic inventory method
- The provision for devaluation of inventories are made for those which have
costs higher than net realisable values.
Financial investments
- Investments in subsidiaries, associates, joint ventures and other financial
investments are stated at cost.
- Provision for investment devaluation is made if it incurs at the day end of
accounting period. The provision is made under the guidance in Circular No.
89/2013/TT-BTC on 28/6/2013 of the Ministry of Finance.
Tangible fixed assets and depreciation
- Tangible fixed assets are stated at cost less accumulated depreciation
- The cost of tangible fixed assets comprise their purchase prices and any
directly attributable costs of bringing the assets to their working condition and
location for their intended use.
(Cost of asset−Residual value)
- Depreciation: The annual depreciation=
Expected useful life of asset
- Tangible fixed assets are depreciated using the straight-line method over
their estimated useful life. The depreciation rate is in line with the Circular
No 45/2013/TT-BTC on 25/4/2013 of Ministry of Finance
Asset Useful life ( year )
Buildings & structure 15-25
Means of transportation 6-8
Equipment & tools for management 1-5
Intangible assets:
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- In tangible fixed assets are depreciated using straight line method
- Depreciation of intangible fixed assets is computer software which is stated
at cost less accumulated depreciation. The depreciation rate is in line with the
Circular No 45/2013/TT-BTC on 25/4/2013 of Ministry of Finance
Prepayments
- Prepaid expenses include actual expenses that have arisen but are related to
the results of production and business activities of many accounting periods.
These costs are capitalized as prepayments and are allocated to the income
statement, using the straight-line method in accordance with the current
accounting regulations.
Payables
- Payables are recognized for future amounts payable in respect of goods and
services received. The recognition of payable in cost for production and
business in period use matching principle. The expenses payable will be final
settlement with actual expenses. The difference between accruals and actual
expenses will be reversed
Revenue recognition
- Revenue from the sale of goods is recognised when all five following
conditions are satisfied:
+ The Company has transferred to the buyer the significant risks and rewards
of ownership of the goods;
+ The Company retains neither continuing managerial involvement to the
degree usually associated with ownership nor effective control over the goods
sold;
+ The amount of revenue can be measured reliably;
+ It is probable that the economic benefits associated with the transaction will
flow to the Company;
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+ The costs incurred or to be incurred in respect of the transaction can be
measured reliably.
- Revenue of a transaction involving the rendering of services is recognised
when the outcome of such transactions can be measured reliably. Where a
transaction involving the rendering of services is attributable to several
periods, revenue is recognised in each period by reference to the percentage
of completion of the transaction at the balance sheet date of that period. The
outcome of a transaction can be measured reliably when all 2 following
conditions are satisfied:
+ The amount of revenue can be measured reliably;
+ It is probable that the economic benefits associated with the transaction
will flow to the Company.
Taxation
- Income tax expense represents the sum of the tax currently payable and
deferred tax.
- The tax currently payable is based on taxable profit for the year. Taxable
profit differs from net profit as reported in the income statement because it
excludes items of income or expense that are taxable or deductible in other
years (including loss carried forward, if any) and it further excludes items that
are never taxable or deductible.
- Deferred tax is recognised on significant differences between carrying
amounts of assets and liabilities in the financial statements and the
corresponding tax bases used in the computation of taxable profit and is
accounted for using balance sheet liability method. Deferred tax liabilities are
generally recognised for all temporary differences and deferred tax assets are
recognised to the extent that it is probable that taxable profit will be available
against which deductible temporary differences can be utilised.
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- Deferred tax is calculated at the tax rates that are expected to apply in the
period when the liability is settled or the asset realised. Deferred tax is
charged or credited to profit or loss, except when it relates to items charged or
credited directly to equity, in which case the deferred tax is also dealt with in
equity.
- Deferred tax assets and liabilities are offset when there is a legally
enforceable right to set off current tax assets against current tax liabilities and
when they relate to income taxes levied by the same tax authority and the
Company intends to settle its current tax assets and liabilities on a net basis.
- The determination of the tax currently payable is based on the current
interpretation of tax regulations. However, these regulations are subject to
periodic variation and their ultimate determination depends on the results of
the tax authorities’ examinations.
- Tax rates and budget fees that the company is applying:
+ Value added tax:
Textbooks, reference books: 0%
Teaching aids, dictionary, children’s comics: 5%
Stationery and other equipment: 10%
- Corporate income tax: 22%
- Other taxes are paid in accordance with the prevailing tax laws in Vietnam.
Related parties
- Related parties are considered to be related if one party has the ability to
control the other party or exercise significant influence over the other party in
the decision making process of the financial and operating policies. Parties
are also considered to be related if they are jointly controlled or have
significant influence.
Basis of making financial statements
65
- The financial statements are prepared on a time basis (except for information
relating to cash flows).
- The accompanying financial statements are expressed in Vietnam dong
(VND), in accordance with the historical cost principle and in accordance
with Vietnamese accounting standards, accounting system and other legal
regulations relating to Prepare and present financial statements.
- The accompanying financial statements are not intended to present the
financial position, results of operations and cash flows in accordance with
accounting principles and practices generally accepted in countries and
jurisdictions other than Vietnam.
- The following accounting policies have been adopted by the Company in the
preparation of these financial statements.
- Principle of making and presenting financial report
+ Going Concern Concept
+ Accrual Basis
+ Consistency Concept
+ Materiality Concept
- Classification of financial report:
Applying the current Account Law of the regime, the financial report in the
company includes
+ Balance Sheet: B01 – DN;
+ Income Statement: B02 – DN;
+ Cash flow Statement: B03 – DN;
+ Financial Statement footnotes: B09 – DN.
The company makes financial report follow fiscal year.
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2.1.5.3 Accounting process
 Process
Before applying accounting software, the company accountant declares
system parameters in accordance with the accounting organization of the
company and complies with the current accounting regime. At the same time,
coding the lists of objects should be managed in a logical and scientific
manner
Transaction incurred
Notes
Accounting notes
Record into system
Specific data file
Final gathering
Gather data of
each month
Establishing report
FINANCIAL REPORT, ACCOUNTING BOOKS
Flowchart 2.3: Software’s accouting process
Every day, based on the original documents, the accountant will check the
documents, classify documents according to the arising subjects and
operations, and then determine the Debit account and the Credit account to
enter data into the software following pre-designed modules.
Accountants must always check the accuracy and match the data on
the machine with the original documents. The computer will perform the
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accounting entries, allocations and transfers. At the same time, the
accounting reports will be extracted from the original data after a certain
number of operations on the software used. According to the accounting
software process, the information is automatically entered into general
accounting books (journals) and related detailed accounting books and
cards.
At the end of the month (or at any necessary time), the accountant
performs the closing operations (addition of the book) and prepares the
financial statements. The comparison between aggregate figures and
detailed figures is done automatically and always ensures accuracy and
truthfulness according to information entered in the period.
At the end of the month, at the end of the year, the general accounting
book and the detailed accounting book are printed on paper, bound in
books and carried out legal procedures as prescribed.
 Accounting software
The company uses 2 software: one is used to manage the input- output of
inventories only named “Quản lý kế hoạch- phát hành”; one is accounting
software named “ Kế Toán 2019”.
Both are Vietnam education publishing house’s software.
Display screen of the software:
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Figure 2.1: Display screen of “Quản lý kế hoạch- phát hành”
Figure 2.2: Display screen of “ Kế toán 2019”
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2.2. The actual accounting for sales and business results in Phu Tho
educational book and equipment joint stock company.
2.2.1. Actual situation of methods of sales and payment at the company
 List of goods
The main goods of company includes:
- Textbook of grade 1 to 12
- Reference book
- Notebook
- School stationery
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Figure 2.3: Examples of list of textbook
71
 Methods of sales
The selling method at Phu Tho educational book and equipment, JSC is
direct sales, it includes:
- Wholesale: A form of sale to commercial entities. Wholesale’s goods
are often sold in bulk. The price varies depending on the quantity of goods
sold and the mode of payment. Wholesale may have trade discounts for
commercial entities.
- Retail: is the method of distributing goods directly to the final
customers, not for resale, but for use and consumption by the purchasers. The
prices are usually stable.
 Methods of payment
- Direct payment method: After receiving the economic contract with
the signatures of both the buyer and the seller, the buyer will make payment
directly 100% by cash on hands or cash in bank. When the company has
received the full amount stated in the contract, the company proceeds to issue
an invoice and deliver the goods to the buyer.
- Deferred payment method: After receiving the economic contract with
the signatures of both the buyer and the seller, the buyer will pay the
reciprocal amount and have a loan commitment of a bank or a third party then
the company will issue invoice to the buyer. When the bank or the third party
pays the remaining amount stated in the contract, the company proceeds to
deliver the goods to the buyer.
2.2.2. Accounting for sales revenue and revenue deductions
2.2.2.1. Accounting for sales revenue
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Revenue is determined by the fair value of collected or receivable
amounts. Sales revenue of the company are recognized when the company
completes the delivery and the customer makes payment or accepts payment.
Because the company pays tax under the deduction method, the
company's revenue from selling goods and services provision is the selling
price without VAT.
- VAT invoice
- Goods dispatch note
- Receipt voucher
- Credit note
- Sales contract,…
 Accounts used:
- Account 511: Sales of goods and service provision
Reflecting the company's sales and service provision in a business cycle.
Account 511 is detailed according to each type of revenue such as:
Account 5111: Goods sale
Account 5113: Services sale
- Account 3331: Value Added Tax
- And other related accounts (Account 111,112,131).
 Accounting process
When customers want to buy goods, the sales staff asks the BOD to
approve the selling price. The BOD agrees to sell the goods, then the sales
department’s admin prepares an economic contract to sign and transfer to the
accounting department.
The customer who receives the contract will transfer the deposit to buy
the goods in cash or transfer to the company's account.
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When the goods is ready for delivery, the sales staff is responsible for
informing the customer. The customer transfers the rest amount of the
economic contract or the reciprocal amount and the bank's loan commitment.
The accounting department issues VAT invoice to customers including 4
copies, gives the 2nd copy and the 3rd copy for customers to register goods, the
1st copy and the 4th copy are stored at the company.
When customer transfers 100% of the amount of the economic contract,
the sales department is responsible for preparing delivery record and
handovers to the customer.
Example: On 16/12/2019, Phu Lac primary school bought a list of books
according to VAT invoice No 002611.
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Figure 2.4: VAT invoice
75
76
Sales accountants shall base on VAT invoice No. 0001144 to enter the
data into the computer with the following operations:
 First, from the screen interface of “ Quản lí kế hoạch- phát hành”,
follow the following paths: “Nhập liệu” / “ Hóa đơn xuất kho”
The accountant enter the necessary data:
+ Date: 16/12/2019
+ Method of payment: by cash
+ Invoice No : 0002611
+Seri: TB/19P
+ Client code: CKC1PL
+ Warehouse code, feature, number of debt days…..
After that press the button “Lưu”
- Trade discount is deducted directly on VAT invoice.
77
Figure 2.6: Delivery invoice on “ Quản lí kế hoạch- phát hành”
 Next accountant will enter the data into accounting software “ Kế toán
2019” as follow: choose “ Nhập liệu”/ “ Xử lí phiếu xuất” then enter
necessary data:
+ Invoice No : 0002611
+ Date: 16/12/2019
+ Internal invoice No: 0003864
After that press the button “Lưu” the data will be automatically
transferred to related books
78
Figure 2.7: The interface of entering sales invoice on “ Kế toán 2019”
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2.2.2.2 Accounting for revenue deduction

The company mainly generate Trade discounts for customers
Trade discount is the discount that an enterprise sells listed discounts to
customers who buy goods in large quantities. Account 5211 is used to reflect
the trade discount that the enterprise has reduced, or paid to the buyer,
because they have purchased goods and services in large quantities in
accordance with the agreement on trade discount stated in the contract.
Trade discount is deducted directly on VAT invoice.
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Figure 2.9: Table trade discount rate
81
Example: On 16/12/2019, Phu Lac primary school bought a list of books
according to VAT invoice No 002611 with trade discount 17.3% .The total
payment is VND 7,209,500.
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Figure 2.10: VAT invoice No 002611
83
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2.2.3 Accounting for costs of goods sold

Accounting for cost of goods sold at the company includes the cost of
purchasing goods into warehouse, transportation costs, labor costs,…
Company, Cost of good sold is determined by the average cost
method of at the end of the period. Because the company is equipped with
accounting software, the calculation of cost of goods sold is also more
simple.
 Accounts used:
In order to reflect the cost of goods sold, the company uses Account
632 "Cost of goods sold" in which details are opened for each type of
product.
 Accounting books used:
- General journal ledger
- General ledger of account 632
85
- Subsidiary ledger of account 632
 Process
When a sales operation arises, the accountant base on the sales
invoice to reflect the revenue, then leave the calculation of the cost price
blank. At the end of the month when calculating the final average unit
price of that product, the machine will automatically update the cost price
data.
Then the Accounting software “ Kế toán 2019” will automatically
calculate according to the formula and based on the quantity on the sales
invoice, the machine will calculate the cost of each finished product and
automatically enter the cost column. Based on sales invoices with cost
price, automatic machines in detailed books, ledger of Account 632
Every day, when entering data for "Sales Invoice", the software
will automatically determine and update data for the General Journal,
calculate and show the cost of accounting. At the end of the accounting
month, the cost of goods sold is calculated.
- VAT invoice
- Goods dispatch note
- Receipt voucher,…
86
2.2.4 Accounting for selling and administrative expenses

2.2.4.1 Accounting for selling expenses
Selling expenses are expenses related to the sale of goods at the
company, including many specific expenses and they are gathered
according to the prescribed content when incurred.
- Payment voucher, Payment order
- Table of instrument allocation
- Depreciation allocated sheet
- Other related documents
 Accounts used
- Account 641: Selling expenses
+ Account 6411: Payroll expenses
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+ Account 6412: Cost of materials, package
+ Account 6413: Cost of tools, supplies
+ Account 6414: Depreciation of fixed assets
+ Account 6415: Cost of warranty
+ Account 6417: Cost of outsourcing services
+ Account 6418: Others cash expenses
Example: On 03/12/2019, making payment of transfer fee with the
amount of VND 80,000 for payment order to “ Công ty cổ phần Mĩ
thuật và truyền thông”
88
Figure 2.15: General ledger of account 641
2.2.4.2 Accounting for administrative expenses

Administration expenses are all expenses related to the general
administration and service of the company's production and business
activities, including many specific expenses.
- Table of salary distribution and social insurance.
- Table of materials allocation.
- Depreciation table.
- Payment voucher, debit note.
 Accounts used
- Account 642: Administrative expenses
+ Account 6421: Employees cost
+ Account 6422: Tools cost
+ Account 6423: Stationery cost
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+ Account 6424: Fixed asset depreciation
+ Account 6425: Taxes, fees, charges
+ Account 6426: Provision cost
+ Account 6427: Outside purchasing services cost
+ Account 6428: Other cost
Example: On 09/12/2019 , making payment of watering from 06/10/2019
to 06/11/2019 with the amount of VND 2,385,429
Figure 2.16: Water bill
90
 Process of bookkeeping
Based on the water bill on 09/12/2019 about, accountant conducts
as follow:
From the screen interface of “ Kế toán 2019” choose “ Cập nhật”/
“ Tiền mặt” “ Phiếu chi”
On the “ Phiếu chi tiền mặt” screen, the accountant enters
necessary data:
+ No of invoice: 000729
+ Date: 03/12/2019
+ Full name: Trần Thị Minh Hằng
+ Address: Công ty CP cấp nước PT
+ Credit : 1111
+ Debit: 642
91
+ Content: Bà Hằng TT tiền nước ( từ ngày 06/10/2019đến ngày
06/11/2019)
+ The amount of money : 2,385,429
After that, press the button “Ghi”, the data will be automatically
Figure 2.17: The interface of entering payment voucher
Example : On 18/12/2019, making payment of watering from

06/10/2019 to 06/11/2019 with the amount of VND 1,488,582
92
Figure 2.18: Electricity bill
 Process of bookkeeping
Electricity of the company is paid by cash at bank.
Based on the electricity bill on 09/12/2019 about, accountant conducts as
follow:
From the screen interface of “ Kế toán 2019” choose “ Cập nhật”/
“ Tiền gửi ngân hàng”/ “ Ủy nhiệm chi”
On the “ Ủy nhiệm chi ” screen, the accountant enters necessary
data:
+ No of invoice: BN 517
93
+ Date: 18/12/2019
+ Full name:
+ Bank code: 112001- Ngân hàng TMCP công thương CN Hùng Vương
+ Credit : 1121
+ Debit: 642
+ Content: Nộp tiền điện tháng 12/2019
+ The amount of money : 1,488,582
After that, press the button “Ghi”, the data will be automatically
Figure 2.19: The interface of entering electricity invoice on “ Kế toán
2019”
94
95
Figure 2.21:Table of salary distribution and social insurance
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Figure 2.22: Depreciation table of fixed assets
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2.2.5.1 Accounting for financial expenses
Financial expenses of the company are mainly interest payments.
Debit note
 Accounts used:
Account 635 – Financial expenses
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Figure 2.23. General ledger of Account 635 – Financial expenses
2.2.5.2 Accounting for financial incomes

Financial incomes of the company is mainly interest on bank deposits
 Accounting voucher
Note of deposit interest payment
 Accounts used:
Account 515 – Financial income. The company opens 8 sub-accounts:
- Account 5151 – Interest from loan, bank deposit
- Account 5152 – Difference of interest from exchange rate arising
in the period
- Account 5153 – Dividends and shared profits
- Account 5154 – Gain from sale of securities
- Account 5155 – Gain from sale of foreign currencies
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- Account 5156 – Gain from sale of deferred payment
- Account 5157 – Gain from discounts
- Account 5158 – Gain from exchange rate difference due to
revaluation
Figure 2.24: General ledger of Account 515 – Financial incomes
2.2.6 Accounting for other incomes and other expenses

2.2.6.1 Accounting for other incomes
Other incomes are the incomes generated from activities other than the
normal business activities of the enterprise.
100
 Accounts used
Account 711 – Other incomes: This account reflects other incomes of the
enterprise. Account 711 has 3 sub-accounts:
+ Account 7111 – Other income: bonus and compensation
+ Account 7112 – Other income: liquidation, transfer of fixed assets
+ Account 7113 – Other income
- VAT invoice
- Receipt vouchers,…
In 2019, the company did not have any other incomes.
2.2.6.2 Accounting for other expenses
Other expenses are expenses of activities other than production and
business activities that generate revenue of the enterprise. These are losses
due to events or transactions other than the normal business activities of
the business.
 Accounts used
Account 811 – Other expenses: This account has 3 sub-accounts:
+ Account 8111 – Other expenses: Compensation, fines and other
expenses
+ Account 8112 – Other expenses: Liquidation, transfer of fixed
assets
+ Account 8113 – Cost of fines – taxes
- VAT invoice, sales invoice
- Receipts and vouchers
- Debit notes and credit notes
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- Minutes of handling surplus and missing assets
- Property liquidation record
- Tax receipts
In 2019, the company did not have any other expenses
2.2.7. Accounting for corporate income tax expense
Corporate income tax expense: is the cost of income tax calculated on the
basis of income tax rate and accounting profit before tax.
Tax finalization declaration
 Accounts used
- Account 821 – Corporate income tax expense
- Other related accounts: Account 3334 – Corporate income tax,
and Account 911 – Income summary.
 How to determine corporate income tax:
Corporate income tax expense = Assessable income x Tax rate of
corporate income tax
2.2.7. Accounting for determining business results
At the end of the quarter, the company determines the business results
for the whole company. The company uses Account 911 to determine its
business results.
At the end of each month, the accountant shall transfer revenues and
expenses into account of determining business results with the following
operations:
From the interface of accounting software “ Kế toán 2019”, select “
Cập nhật”/ “ Kết chuyển tự động”/ “Tài khoản” and then the software will
show a list of categories as follow:
102
Figure 2.25: The interface to transfer revenue and determine business
results on “ Kế toán 2019”
After the computer determines the sales results, the sales accountant
will carry over the transfer from Account 911 to Account 4212 according
to the following entry:
Debit Account 911
Credit Account 4212
After making automatic transfer entries at the end of the quarter, the
data will be transferred to general ledger of Account 911.
103
104
105
2.3.General comments on sales accounting and determining business

results at Phu Tho educational book and equipment, JSC.
2.3.1 Advantages
In over 20 year experience, especially after applying accounting software since
2008, the accountant department has changed a lot to meet managerial needs.
There are some strong points as follows:
+ About applying accounting regime
The accounting for sales and business result has ensured the consistency and
coherence in terms of scope and method of calculation, some economic
standards between the accounting department and other related departments and
divisions.
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Almost incurred selling and administration expenses are totally collected and
displayed in the income statement and notes to financial statements.
All most transactions are recorded completely, timely and matched with
accounting standards.
Periodic accounting system is applied, which saves a lot of time and efforts for
accountants.
+ About accounting entries
All original vouchers issued by Phu Tho educational book and equipment joint
stock company are suitable with Ministry of Finance’s decisions.
Invoices and vouchers are issued only after collecting enough documents and
meeting all sales recognitions. Invoices and vouchers are arranged and stored
chronologically, which facilitates the future examination and uses.
+ About accounting books
The company uses the accounting form of General Journal. This form is suitable
with a computerized accounting system rather than the manual one. Therefore,
applying an appropriate accounting form has contributed to productivity
increase.
Sales reports are formed weekly by subject and by model, which helps manager
timely catch the sales status
+ About financial reports
All financial statements used in Phu Tho educational book and equipment joint
stock company have the same form stated by Ministry of Finance. These forms
are clear, logical and easy-to follow.
2.3.2 Limitations
Besides the advantages as above, sales accounting and determining business
results in particular still exists some issues that need to be overcome to help
accounting work is more complete.
107
+ About accounting software
The application of software to the accounting work brings a lot of utilities, but
the application process of this software still has some limitations. The
accounting software of company has not been updated into the newest version.
This leads to occasional errors in comparing data with the publisher or the
customer.
+ About accounting documents
The company has not used e-invoices, so the invoicing is limited, prone to
errors due to handwriting, and the work speed is likely to be slow and
interrupted.
+ About receivables:
The monitoring of receivables situation of customers on the machine is just
limited to providing simple information, meaning only giving the customer
name, total debt on the ledger and detail book of account 131, but do not
know the information about solvency, financial situation of customers,
repayment term.
108
109
EDUCTIONAL BOOK AND EQUIPMENT JOINT STOCK
COMPANY
3.1 Requirements, principles of completing accounting for sales and
determining business results at Phu Tho educational book and
equipment, JSC.
Nowadays, in the condition that there always has fierce competition in
the economy, it is necessary to stand firm in the market to find the best
solutions for their development. Along with that demand, accounting is an
important tool in management, so it requires to be renewed and perfected to
better meet its role. Therefore, sales accounting and determining business
results must also be completed.
Completing sales accounting and determining business results will
ensure timely and accurate information provision, so managers can
understand the actual situation of losses and profits better and make right
decisions.
110
3.1.1. Requirements
- Appropriate requirements: The policies and measures proposed must be
consistent with the characteristics of the business operations as well as the
financial capacity of the company.
- Accurate and timely requirements:
+ Accounting data must be reflected accurately and promptly. Accurate
and timely reflection is essential and important for functional agencies such as
tax authorities, banks and company’s BOD to provide specific directions and
plans for the next business period.
+ Data must ensure clarity, transparency and publicity. This is a special
concern of both enterprises and shareholders contributing capital.
- Requirements for savings and efficiency: Any business, whether private or
public, has the same desire to save costs, earn high profits and develop a
stronger company.
- Requests for unification: Ensuring to combine the implementation of new
proposals with consistency in content and methods throughout the accounting
system as well as the whole company.
3.1.2. Perfecting principles
- According to principle about the effectiveness of accounting, the
accounting information for sales and determination of business results
provided to the company’s
BOD must be practical and useful to make the right decision.
- Completing the sales accounting and determining business results must
be suitable with the actual situation of the company and ensure the adaptive
principle.
- Must be in accordance with the state's accounting policy and regime.
111
- Must conform to the requirements of professional qualifications of a
management and accounting contingent.
- Ensuring the principle of compactness, economy and efficiency.
3.2. Some suggestions to improve sales accounting and determining
Today, the strong growth of business and production activities lead to
innovation in operations and management mechanisms. The goal of
enterprises is to achieve maximum profit and can stand firm in the market. To
achieve that requires the company need to improve sales.
Depending on the above shortcomings, I have some suggestions to
improve accounting procedures for sales and business result at Phu Tho
educational book and equipment ,JSC as follows:
Firstly, the company should use e-invoices to ease the work for accountants.
Using e-invoices, company can save more time and costs than using paper
invoices. To use paper invoices, businesses may need up to a week to register
the invoice usage form, wait for the printing factory ... However, with the type
of invoice, all procedures will be shortened.
Second, company need to update accounting software into newest version to
have a better and faster accounting tool with an aim to strengthen the
management and accounting apparatus.
Thirdly, receivable accountant should be more proactive in managing and
analyzing solvency and financial situation of customers to make rational
decisions.
Also, it is necessary to improve the professional knowledge for company’s
employees : updating new circulars and regulations for managers and
accountants more frequently to help the company's operation be more
effective, improving the qualifications of staffs in the company. For
112
management level, who are important people for deciding the direction for
businesses, the company need to constantly improve their professional
management skills. For employees, it is necessary to create more
opportunities for them to develop themselves, operate periodically training
courses. Therefore the business performance as well as the sustainable grow
will be improved.
113
CONCLUSION
In the current competitive economic environment, in order to
survive and develop, enterprises must strive non-stop in the strategic business
plan to adapt and be spoiled with a volatile economy. In order to achieve this,
accounting work in general and sales accounting and determining business
results in particular also contributed significantly. Therefore it needs to be
strengthened and improved further so that this work becomes a business and
financial management tool of the enterprise.
Being aware of this, Phu Tho educational book and equipment, JSC has
been very active in the business management process and determined the
sales results that have contributed significantly to the overall success of the
company. In the coming time, with an expanding business scale, the
company's accounting organization will be further improved to meet the
increasing management requirements of the market economy.
Finally, I would like to express my sincere gratitude to Dr. Tran Thi
Ngoc Diep and the accountants of Phu Tho educational book and equipment,
JSC for their kindness to help me complete this graduation internship.
Due to limited knowledge, no practical experience, not have much time
to practice, so my writing definitely have lacks. I look forward to the
dedicating advice of teachers so that my topic will be improved .
114
REFERENCES
1. Prof.Dr.Ngo The Chi, Dr.Truong Thi Thuy (Ed) ,“Financial accounting

curriculum”, 2010, financial Publishing company.
2. Prof.Dr.Ngo The Chi, Dr.Truong Thi Thuy (Ed) , “Accounting course
of commercial service enterprises”, 2010, financial Publishing
company.
3. Circulars 200/2014/TT- BTC issued by the Minister of Finance.
4. Graduation thesis of the courses.
5. Documents of Phu Tho educational book and equipment joint stock
company.
6. Some websites about accounting: Webketoan.com,
ketoanthienung.com...
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SUPERVISOR’S JUDGEMENT
Name of supervisor: Trần Thị Ngọc Diệp

Comment on Graduation Thesis of:
Student: Lê Kim Thoa
Class: CQ54/21CL.02
Course: 54
Topic: “Accounting for sales and business result in Phu Tho
educational book and equipment joint stock company”
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................
Mark - In number: Hanoi, …. /…. / 2020
Supervisor
- In word:
116
REVIEWER’S JUDGEMENT
Name of reviewer:
Comment on Graduation Thesis of:
Student: Lê Kim Thoa
Class: CQ54/21CL.02
Course: 54
Topic: “Accounting for sales and business result in Phu Tho
educational book and equipment joint stock company”
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................
....................................................................................................................
Mark - In number: Hanoi, …. /…. / 2020
- In word: Reviewer
117

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MINISTRY OF FINANCE

STUDENT: LE KIM THOA

Major: Business Accounting

Hanoi, May, 2020

However, due to the limited level of reasoning and practical access, my

Flowchart 1.9 : Accounting entry for selling and administrative expenses

Flowchart 1.10 : Accounting entry for financial expenses

Flowchart 1.1: Accounting entry for direct sales (applying

Acc 3331 Acc 511 Acc 111,112,131

VAT payable Total price with VAT

Flowchart 1.3 : Accounting entry for sales through agents

1.1.7 Accounting for sales deduction

(Value of goods at the Value of goods

1.1.8.2 Accounting for Cost of goods sold ( COGS)

In case business applying periodical inventory method.

Flowchart 1.7 : Accounting for COGS applying periodical inventory

Account 641 has no closing balance.

Flowchart 1.8 :Accounting entry for selling expenses

Flowchart 1.9 :Accounting entry for administrative expenses

- Operating costs of real estate

- Debit note, Credit note

- Other related documents

Flowchart 1.12 – Accounting entry for other expenses

1.2.5 Accounting for determining business results

Flowchart 1.16 – Accounting entry for business result

Step 2: Transferring and determining operation results.

- Transferring to determine net sales.

- Transferring expenses and net revenue to determine operation results

Step3: Providing information:

2.1 The foundation and development process of company

Board of directors Board of

Information Administration Business

Flowchart 2.1:Management apparatus

Warehouse Receivable Fixed asset Payment

Flowchart 2.2: Accounting apparatus

Flowchart 2.3: Software’s accouting process

Figure 2.2: Display screen of “ Kế toán 2019”

2.2.2.2 Accounting for revenue deduction

2.2.3 Accounting for costs of goods sold

2.2.4 Accounting for selling and administrative expenses

2.2.4.2 Accounting for administrative expenses

Figure 2.16: Water bill

Example : On 18/12/2019, making payment of watering from

2.2.5.2 Accounting for financial incomes

- Account 5155 – Gain from sale of foreign currencies

2.2.6 Accounting for other incomes and other expenses

2.3.General comments on sales accounting and determining business

1. Prof.Dr.Ngo The Chi, Dr.Truong Thi Thuy (Ed) ,“Financial accounting

Name of supervisor: Trần Thị Ngọc Diệp

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