CHAPTER 6: JOURNAL ENTRIES FOR ACCOUNTING FOR SALES

AND DETERMINATION OF BUSINESS RESULTS

1. Accounting for revenue
1. Revenue from cash sales or credit sales *Revenue
without late payment interest Dr acc 111, 112, 131
Cr acc 11
Cr acc 3331 (if any)
*COGS
Dr acc 632
Cr acc 154, 155, 157
2. Revenue from installment sales (included *COGS
late payment interest) Dr acc 632
Note: Cr acc 154, 155, 157
CR Acc 511 – Cash sales price *On sale
CR Acc 3387 – Credit sales price – Cash Dr acc 131 total credit sales
sales price – VAT (if any) Cr acc 511 cash price
Cr acc 3331 (if any)
Cr acc 3387
*Periodically when customer
make the payment
Dr acc 111, 112
Cr acc 131
Dr acc 3387
Cr acc 515
3. Revenue from exchanging goods:
3. Revenue from exchanged goods Dr acc 131
1
 Cr acc 511
Cr acc 3331
3. Goods received Dr acc 211, 152, 153, …
2 Dr acc 133
Cr acc 331
3. Remove goods exchanged Dr acc 632
3 Cr acc 154, 155, 157
3. Payment Dr acc 331
4 Dr/Cr acc 111, 112
Cr acc 131
4. Revenue from goods sent on consignment (At consigner’s)
4. Consigner sent goods to agent (COGS Dr acc 157
1 entries) Cr acc 154, 155
4. Agent informed the number of goods sold Dr acc 632
2 (COGS entries) Cr acc 157
4. Consigner received cash after deducting Dr acc 111, 112
3 commission fees Dr acc 641(7) commission
Dr acc 133 10% commission
Cr acc 511
Cr acc 3331 (if any)
4. Consigner received cash in full and then *When agent made payment
4 paid back commission fees Dr acc 111, 112
Cr acc 511
Cr acc 3331 (if any)
*When agent sent
commission fee invoice
 Dr acc 641(7)
Dr acc 133
Cr acc 111, 112
5. Revenue from goods sent on consignment (At agent’s)
5. Received goods from consigner Theo dõi tại sổ riêng của đơn
1 vị đại lý
5. Sold goods and collected cash Dr acc 111, 112
2 Cr acc 331
5. Informed the consigner and made the *Commission fee deducted
3 payment to consigner after deducting Dr acc 331
commission fees Cr acc 511(3)
Cr acc 3331
*Made payment
Dr acc 331
Cr acc 111, 112
5. Informed the consigner and made the * Made the payment to
4 payment in full, then received cash for consigner in full
commission fees Dr acc 331
a. Made the payment to consigner in full Cr acc 111, 112
b. Received cash for commission fees * Received cash for
commission fees
Dr acc 111, 112
Cr acc 511(3)
Cr acc 3331
6. Cash received in advanced
6. For selling goods *When received in advanced
1 Dr acc 111, 112
Cr acc 3387
*When goods sent to
customers
Dr acc 3387
Cr acc 5111
Cr acc 3331
Dr acc 632
Cr acc 154, 155, 157
6. For providing services *When received in advanced
2 Dr acc 111, 112
Cr acc 3387
*When services provided to
customers
Dr acc 3387
Cr acc 5113
Cr acc 3331

2. Sales with discounts and deductions

1. Sales with payment discount Cash sales
Dr acc 111, 112
Dr acc 635
Cr acc 511
Cr acc 3331
Credit sales
*On sales day
 Dr acc 131
Cr acc 511
Cr acc 3331
*On settlement day
Dr acc 111, 112
Dr acc 635
Cr acc 131
2. Sales with trade discounts or allowances Dr acc 111, 112, 131
known before revenue recognition Cr acc 511
Cr acc 3331
3. Sales with trade discounts or allowances *1st recognition
known after revenue recognition Dr acc 111, 112, 131
Cr acc 511
Cr acc 3331
*Adjust after trade
discounts
Dr acc 521
Dr acc 3331
Cr acc 111, 112, 131
4. Sales with goods returned Dr acc 5212
Dr acc 3331
Cr acc 111, 112
5. Received goods returned Dr acc 155
Cr acc 632

3. Accounting for Cost of goods sold

 Agent/Means of
transport (Acc
157)

Factory (Acc 154) Customer (Acc

632)

Warehouse (Acc
155)

1 Goods sent from the factory to the warehouse Dr acc 155

Cr acc 154
2 Goods sent from the factory to the means of Dr acc 157
transport or agent Cr acc 154
3 Goods sent from the factory to customer Dr acc 632
Cr acc 154
4 Goods sent from the warehouse to means of Dr acc 157
transport or agent Cr acc 155
5 Goods sent from the warehouse to customer Dr acc 632
Cr acc 155
6 Goods sent from means of transport or agent Dr acc 632
to customer Cr acc 157

4. Accounting for other types of income and expenses

1 Income incurred (financial income, other *Financial Income
income)
 Dr related acc
Cr acc 515
*Other income
Dr related acc
Cr acc 711
2 Expenses incurred (selling expenses, *Selling expenses
administrative expenses, financial expenses, Dr acc 641
other expenses) Cr related acc
*Administrative
expenses
Dr acc 642
Cr related acc
*Financial expenses
Dr acc 635
Cr related acc
*Other expenses
Dr acc 811
Cr related acc

5. Calculation of business results (Remember the process)

1 Transferred revenue deductions to calculate net Dr acc 511
revenue Cr acc 5212
2 Transferred net revenue to calculate business Dr acc 511
result Cr acc 911
3 Transferred COGS to calculate business result Dr acc 911
Cr acc 632
4 Gross profit = net revenue – cost of goods sold
5 Transferred other types of income Dr acc 515
Dr acc 711
Cr acc 911
6 Transferred other types of expenses Dr acc 911
Cr acc 641
Cr acc 642
Cr acc 635
Cr acc 811
7 Net profit = total revenue, income – total costs, expenses
8 If the entity made a profit, calculated current Dr acc 8211
corporate income tax expense Cr acc 3334
9 Transferred current corporate income tax expense Dr acc 911
to calculate business result Cr acc 8211
1 Transferred business result to undistributed profit Dr acc 911
0 after tax Cr acc 4212