NATIONAL ECONOMICS UNIVERSITY

SCHOOL OF ACCOUNTING AND AUDITING

ACCOUNTING INTERNSHIP REPORT

VINACOMIN - Hon Gai Coal Company

Student’s name : Nguyen Thi Thu Ngan

Class : Auditing EEP 62B
Student’s ID : 11206284
Supervisor : PhD. Pham Thi Thuy
Hanoi, 2023
 NATIONAL ECONOMICS UNIVERSITY
SCHOOL OF ACCOUNTING AND AUDITING

ACCOUNTING INTERNSHIP REPORT

VINACOMIN – HON GAI COAL COMPANY

Student’s name : Nguyen Thi Thu Ngan

Class : Auditing EEP 62B
Student’s ID : 11206284
Supervisor : PhD. Pham Thi Thuy

Hanoi, 2023
 TABLE OF CONTENT
LIST OF ABBREVIATIONS......................................................................................iv
LIST OF TABLES.........................................................................................................v
LIST OF FIGURES......................................................................................................vi
LIST OF FORMS........................................................................................................vii
INTRODUCTION......................................................................................................viii
CHAPTER 1: OVERVIEW OF TECHNICAL – ECONOMIC MANAGEMENT
AND ORGANIZATIONAL STRUCTURE ABOUT VINACOMIN - HON GAI
COAL COMPANY........................................................................................................1
1.1. History of the Establishment and Development of VINACOMIN - Hon
Gai Coal Company.....................................................................................................1
1.1.1. General information.....................................................................................................1
1.1.2. Company’s history with important milestones.....................................................1
1.1.3. Strength and Weakness of the Company...............................................................3
1.1.4. Achievements................................................................................................................4
1.2. Features of business operations.......................................................................4
1.2.1. Functions and Responsibilities.................................................................................5
1.2.2. Main business activities..............................................................................................5
1.2.3. Features of technology and production process...................................................6
1.2.3.1. Features of organizational structure........................................................................6
1.2.3.2. Features of technology and production process...................................................7
1.2.4. Features of business market.......................................................................................8
1.3. Organizational structure..................................................................................8
1.3.1. Organizational structure of the management........................................................8
1.3.2. Organizational Chart and description of function and mission of some
departments..................................................................................................................................11
1.4. Financial position and Financial Performance of VINACOMIN – Hon Gai
Coal Company...........................................................................................................19

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CHAPTER 2: CHARACTERISTICS OF ACCOUNTING ORGANIZATION
AND ACCOUNTING SYSTEM AT VINACOMIN – HON GAI COAL
COMPANY...................................................................................................................24
2.1. Characteristics of accounting organization at VINACOMIN – Hon Gai Coal
Company.......................................................................................................................24
2.1.1. Organizational structure of the accounting department.......................................24
2.1.2. Organizational description of function and mission of some departments.....26
2.2. Characteristics of accounting system at VINACOMIN - Hon Gai Coal
Company....................................................................................................................29
2.2.1. General Accounting Policies.......................................................................................29
2.2.2. Features of Accounting Documents..........................................................................32
2.2.3. Features of Chart of Accounts....................................................................................32
2.2.4. Features of Accounting Books....................................................................................32
2.3. Features of some key accounting cycles in VINACOMIN – Hon Gai Coal
Company....................................................................................................................35
2.3.1. Features of Accounting for Material.........................................................................35
2.3.1.1. Features of Material at Hon Gai Coal Company................................................35
2.3.1.2. Accounting Document and Procedure...................................................................36
2.3.1.3. Valuation method of Materials and Equipment..................................................42
2.3.1.4. Detailed Recording Process for Material.............................................................43
2.3.1.5. General Accounting for Materials and Equipment............................................56
2.3.2. Features of Accounting for Fixed Assets - Tangible............................................61
2.3.2.1. Features of tangible assets at Hon Gai Coal Company....................................61
2.3.2.2. Accounting Documents and Procedures...............................................................62
2.3.2.3. Accounting for tangible assets movement...........................................................65
2.3.2.4. Accounting for depreciation of tangible assets...................................................66
2.3.2.5. Accounting for repair and maintenance of tangible assets..............................68
2.3.3. Features of Accounting for Salary.............................................................................69
2.3.3.1. Features of salary at Hon Gai Coal Company.....................................................69

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 2.3.3.2. Detailed accounting for Salary................................................................................72
CHAPTER 3: ASSESSMENT OF ACCOUNTING ORGANIZATION AND
ACCOUNTING SYSTEM AT VINACOMIN – HON GAI COAL COMPANY. .75
3.1. Assessment of accounting organization...........................................................75
3.1.1. Advantages.......................................................................................................................76
3.1.2. Disadvantages..................................................................................................................77
3.2. Recommendations to the organization of accounting at VINACOMIN - Hon
Gai Coal Company...................................................................................................78
3.2.1. The necessity of improving accounting organization...........................................78
3.2.2. Recommendations to the organization of accounting at VINACOMIN – Hon
Gai Coal Company.....................................................................................................................79
CONCLUSION.............................................................................................................82
REFERENCE...............................................................................................................84
APPENDIX...................................................................................................................85

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 LIST OF ABBREVIATIONS
Abbreviation Full Name
Vietnam National Coal – Mineral Industry Holding
VINACOMIN
Corporation Limited

SFCT Société Francaise des charbonnages du Tonkin

VND Vietnam Dong

KCS Knowledge Centered Support

JSC Joint Stock Company

ROA Return on Asset

BOD Board of Directors

VAT Value Added Tax

Dr. Debit

Cr. Credit

iv
 LIST OF TABLES
Table 1.1: Business Criteria of Hon Gai Coal Company in the last three years............20
Table 1.2: Financial Ratio of Hon Gai Coal Company in the last three years...............23
Table 2.1: Accounting Documents of recording fixed assets

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 LIST OF FIGURES
Figure 1.1: Underground mining technology and Surface mining technology in
production process...........................................................................................................7
Figure 1.2: Organizational Structure of Hon Gai Coal Company..................................10
Figure 2.1: Accounting organizational Structure
Figure 2.2: Recording accounting process
Figure 2.3: Input material procedure
Figure 2.4: Output material procedure
Figure 2.5: Detailed Accounting Chart for Materials at Hon Gai Coal Company
Figure 2.6: Accounting of raw materials by periodic inventory method
Figure 2.7: Accounting sequence for recording and summarizing raw materials
Figure 2.8: The process of accounting for fixed assets
Figure 2.9: Accounting process of journal voucher recording method

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 LIST OF FORMS
Form 2.1: VAT Invoice purchase Anti-roll Bars CP17 6.4.............................................49
Form 2.2: Inspection Report..........................................................................................50
Form 2.3: Warehouse Receipt........................................................................................51
Form 2.4: Delivery Note................................................................................................52
Form 2.5: Stock Card.....................................................................................................53
Form 2.6: Stock Detail Book.........................................................................................54
Form 2.7: Stock Summary Report.................................................................................55
Form 2.8: General Journal entries for year 2023...........................................................59
Form 2.9: General Ledger for year 2023.......................................................................60

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 INTRODUCTION
In the current era of integration and Vietnam's participation in the WTO, there is
a growing need for high-quality infrastructure and construction projects. Consequently,
the mineral industry is experiencing significant growth. To enhance their
competitiveness, ensure stability, and establish their position, businesses must have
effective management systems in place, particularly in regards to accounting.
During my research and initial exploration of accounting practices, I chose
VINACOMIN – Hon Gai Coal Company as my introduction to economic activities and
the application of accounting principles that I learned in university. With the invaluable
guidance of the accounting department and the dedicated support of PhD. Pham Thi
Thuy, I had the opportunity to complete my internship in the industry. This internship
provided me with valuable insights into the management processes, production and
business operations, and accounting practices at Hon Gai Coal Company. These
experiences have been instrumental in improving my learning process and knowledge
absorption.
The report comprises three main sections:
Chapter 1: Overview of technical – economic management and
organizational structure
Chapter 2: Characteristics of accounting organization and accounting
system at VINACOMIN – Hon Gai Coal Company
Chapter 3: Assessment of accounting organization and accounting system
at VINACOMIN – Hon Gai Coal Company
As this was my first exposure to practical work and considering my limited
knowledge and time, it is possible that mistakes may have occurred in my internship
report. Therefore, I welcome your recommendations to make my report more
comprehensive.
I would like to express my sincere gratitude to PhD. Pham Thi Thuy, the
accounting team, the company's board of directors, and the Accounting Organization

viii
department of the Development Company for their dedicated support throughout my
internship and the completion of this report.

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 CHAPTER 1: OVERVIEW OF TECHNICAL – ECONOMIC MANAGEMENT
AND ORGANIZATIONAL STRUCTURE ABOUT VINACOMIN - HON GAI
COAL COMPANY
1.1. History of the Establishment and Development of VINACOMIN - Hon Gai
Coal Company
1.1.1. General information
Name: VINACOMIN – Hon Gai Coal Company
International transaction name abbreviations: VHGC
Address: 169 Le Thanh Tong Street, Hong Gai, Ha Long, Quang Ninh, Viet
Nam
Legal form: State Owned Enterprise
Phone number: (02033).825.233 Fax: (02033).826.085
Website: thanhongai.com.vn
Tax identification number: 5700100256-063
Representative: Bui Khac That
Field Operation: Mining and processing of coal consumption
1.1.2. Company’s history with important milestones
Hon Gai state-owned enterprise (known as Hon Gai Coal Company) was
founded on 15/05/1955 under Decision No. 2362/QĐ – VINACOMIN of Vietnam Coal
Corporation.
After the liberation of mine area, the enterprise maintained the management
form of Northern Coal Mining French Company (SFCT - Société Francaise des
charbonnages du Tonkin). As Hon Gai – Cam Pha mine site was the concession area,
SFCT managed comprehensively from administration to protection around coal mines.
The only responsibility of the enterprise was manufacturing and trading coal, whereas
other management was managed by the military committee, then the administrative
committee of Hong Quang took responsibility. However, at the end of 1955, Hon Gai

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state-owned enterprise completely eliminated the contractor mode of SFCT in its
management system. Simultaneously, it established site and factory management
boards for operating production activities, while the enterprise was a centralized
accounting unit similar to SFCT.
During the period of 3 years of taking over, restoring, staff training, etc., Hon
Gai state-owned enterprise exploited nearly 3 million tons of coal (according to
Statistics Office of Hong Quang 1955-1960). In 1957, it was an honor for the enterprise
to welcome President Ho Chi Minh to visit Hong Quang mine site. Due to the valuable
encouragement and advice, the structures changed flexibility in proportion to the
development requirements of mineral industry. On 19/12/1957, Decision No.
3378/BCN of the Ministry of Industry indicated that there were three separate
accounting units in Hong Quang mine site including Hon Gai’s mine, Cam Pha’s mine
and Cot 5’s electric factory (Hon Gai).
After 3 years of restoring production (1955-19957), the coal industry continued
to develop its economy, society, and culture in the next 3 years (1958-1960). At the
beginning of 1958, the government had invested in modern machines, automotive
equipment, etc. for operation activities. In parallel with the investment in machinery,
the enterprise also organized training skills and knowledge classes for all employees in
order to meet the requirements of machine operation. As a result, the amount of coal
produced in 1960 accounted for 103,22% compared to the production plan.
On 25/07/1960, the Ministry of heavy Industry promulgated Decision No. 707
BCNg, depicted the establishment of Hon Gai Coal Company, affiliated work sites
were supposed to be separated accounting units. The company’s operation was
effective from 01/08/1960.
In 08/1965, the Council of Government decided to establish Quang Ninh Coal
Corporation including the mines in Hon Gai, Cam Pha, Mao Khe, Vang Danh and other
mines in the North of Vietnam. At the same time, the Ministry of heavy Industry

2
allowed the establishment of Hon Gai Coal Company and Cam Pha Coal Company,
which were detached from Hon Gai Coal Company (before 08/1965).
In 11/1968, Hon Gai Coal Company was dissolved and separated into 2
enterprises namely Hon Gai Coal Union and Cam Pha Coal Union. The 2 enterprises
then were merged into Hon Gai Coal Company on 19/08/1969 (Decision
No.146/HDCP).
On 23/01/1981, Hon Gai Coal Company was renamed as Hon Gai Coal Union.
On 01/10/1986, according to Decision No. 37MT-TCCB dated 20/09/1986 of
the Ministry of Industry, the Hon Gai Coal Union was separated into 3 companies: Hon
Gai Coal Company, Cam Pha Coal Company and Mine Mechanical Company.
On 26/12/2005, Vietnam National Coal – Mineral Industry Holding Corporation
Limited (VINACOMIN) was established and Hon Gai Coal Company as a subsidiary
of the corporation has operated effectively and gained significant achievements since it
was founded.
Undergoing 68 years of rehabilitation and development (1955-2023), by effort,
the spirit of self-reliance combined with the appropriate direction, manager and
employees, Hon Gai Coal Company has achieved significant success over time.
Production is on the rise and the living conditions of workers, staff, and party members
in the company are improving. The continuous improvement and modernization of
technical infrastructure are enhancing industrialization and modernization efforts. The
expanding scale of mining operations ensures that coal production meets the growing
demands. These positive developments reflect the company's commitment to progress
and growth.
1.1.3. Strength and Weakness of the Company
 Strength
The machinery lines have been invested in a synchronous and modern direction,
meeting production needs.

3
 The employees have been trained to be skilled, dedicated, and enthusiastic,
especially in operating and repairing machines effectively. Moreover, the self-training
activities are spread widely throughout the company, which reduces training costs
annually.
The management system is simple with few management levels, leading to a
significant reduction in the company’s General and Administration Expense.
The production is prepared well. Fixed assets are the major renovation for the
improvement of efficiency as this industry operates mainly based on fixed assets.
The management is well-organized to create stable jobs for both employers and
employees, achieving the average working day of 26 days/month/average income.
 Weakness
The consumption of the company is related to the third party. Hon Gai
Transport Stevedoring Joint Stock Company is responsible for the delivery of products,
leading to the inactive consumption price.
Production activities are affected considerably by weather conditions. In the
rainy season, there are various difficulties related to mining activities that the company
faces.
1.1.4. Achievements
Business achievements in the recent 3 years:
In 2020, the outputs of raw coal reached 2.320 thousand tons (in which, the
number of underground mine outputs and surface mine output were 1.730 thousand
tons and 59 thousand tons, respectively), whereas the coal consumption accounted for
1.972 thousand tons. The total revenue reached 2.335 billion VND and the average
salary was 15 million VND/person/month.
In 2021, the company’s raw coal outputs were 2,2 million tons. It consumed
2.225 million tons of coal, leading to the revenue of 2.915 billion VND. The average
salary was 19,7 million VND/person/month.

4
 In 2022, the company produced 2,5 million tons of raw coal and consumed
2.878 million tons. The revenue reached 3.591 billion VND and the average salary was
16,62 million VND/person/month.
1.2. Features of business operations
1.2.1. Functions and Responsibilities
Hon Gai Coal company operates in the field of manufacturing and trading coal,
and its scope of operations is nationwide. It is assigned to manage the Hon Gai mine
area of 29km2 with the total working capital of 276.476 billion VND.
The company is responsible for the following rights and obligations (according to the
company's operating charter):
In the area of investment and development: the company is tasked with
organizing and implementing investment and development projects, investing in
technology innovation, investing in production expansion and maintenance, with the
main function being investment.
In the area of production and business: The company has the right to produce
and trade goods according to the registered industry and scope, based on coordination
with the general production and business activities of the company and VINACOMIN.
In the area of organizing personnel and wages: the company has the right to
organize the management apparatus, organize production units, arrange and select
employees in the production chain, choose forms of salary and bonus payment
according to state regulations and the guidance of VINACOMIN. The company is
responsible for taking care of and improving the material and spiritual lives of its
employees, enhancing cultural, scientific, technical, and professional levels for its staff.
Protecting production, the environment, and maintaining social order, security
and safety.
1.2.2. Main business activities
The main business activities of the company, as stated in the business
registration certificate, include:

5
  Mining, processing, and marketing of coal.
 Manufacturing, repairing, and restoring mining equipment, transportation
vehicles, and other mechanical products.
 Supplying materials, equipment, and goods for production.
 Road, rail, and waterway transportation.
 Manufacturing construction materials.
 Construction of facilities to serve the mining and business operations.
 Trading of consumer goods and daily necessities for workers. Providing hotel,
lodging, catering, domestic and international travel services.
1.2.3. Features of technology and production process
1.2.3.1. Features of organizational structure
The organizational structure of the company includes three main departments:
 The primary production department: responsible for producing raw coal.
 The capital construction department: responsible for constructing basic furnaces
and industrial facilities.
 The auxiliary production department: responsible for producing supporting
materials and equipment.

6
1.2.3.2. Features of technology and production process
The company implements 2 mining technologies: underground mining technology and surface mining technology.

Figure 1.1: Underground mining technology and Surface mining technology in production process
Source: Hon Gai Coal Company

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1.2.4. Features of business market
Hon Gai Coal Company is one of the 17 subsidiaries of the Vietnam
National Coal – Mineral Industry Holding Corporation Limited in Quang Ninh
province. The company specializes in producing high-quality coal, known to be
among the best in the world. With advanced technology and large-scale
production capabilities, the company's coal mining operations are highly
productive.
The company's coal business extends beyond the domestic market and
reaches international markets such as China, Japan, and Taiwan. The brand
reputation of "Hon Gai Coal" has been established through the production of
premium coal products that meet technical standards and satisfy the demanding
requirements of both domestic and international markets.
To further expand its relationships with customers, the company has
initiated partnerships with other coal companies such as Ha Tu Coal Company,
Ha Lam Coal Company, and Nui Beo Coal Company. These collaborations aim
to establish reasonable contracts for the purchase of raw coal, ensuring a
sustainable supply of high-quality coal.
By continuously enhancing its reputation, product quality, and strategic
partnerships, the company has positioned itself as a key player in the coal
market, both domestically and internationally.
1.3. Organizational structure
1.3.1. Organizational structure of the management
The company is organized in combined forms of organization between
online and function. This is an appropriate form as according to the
characteristics of the company, in order to manage and control the
manufacturing process, there must be a decentralization in the management
process.

8
 The company’s management apparatus since its establishment has been
renovated and rearranged in a simple and effective manner. In recent years,
several departments have been merged, those which are responsible for various
functions have been separated for the best performance.
The Director has the highest executive authority in the company, while
the Vice Directors are responsible for helping the Director manage functional
departments. There are connections between departments, which encourage
them to help each other and follow the direction of the Director and Vice
Directors.

9
Figure 1.2: Organizational Structure of Hon Gai Coal Company
Source: Hon Gai Coal Company

10
 There are a plethora of advantages and disadvantages of the company’s
organizational structure, the details are as follow:
 Advantages
Basic organizational structure of industrial companies, including high unification,
simple and convenient relationships in the management and administration process.
The functions, responsibilities, and duties of each level of management and individual
are defined clearly.
The company’s departments have no overlap, leading to the ability to solve
problems arising quickly and effectively in the manufacturing process.
 Disadvantages
There is a separation between departments and between management levels,
causing rigidity in work. This requires employers in the company to have high
professional qualifications, initiative and flexibility in the process of performing tasks.
1.3.2. Organizational Chart and description of function and mission of some
departments
According to the organizational chart of Hon Gai Coal Company indicated in
figure 1.1 above, the company is headed by the Director and Vice Directors are in
charge of specialized fields.
Director: Directly manage all production and business activities of the company
based on the assigned plan and is responsible for the production and business
processes, as well as fulfills all the obligations of the company to the Government and
the Vietnam National Coal – Mineral Industry Holding Corporation Limited.
Simultaneously, the Director must ensure and gradually improve the physical can
spiritual life, enhance working conditions for employees. Directly leading the
production organization, labors, salary, reward, compensation, etc. The Director directs
the Vice Directors or the functional departments.

11
 Vice Director of Safety: Advise and help the director to manage, direct and
operate the company’s labor safety and protection.
Vice Director of Technical: Advise and is responsible to the Director in the field
of mining technical, manage the departments of mining engineering, geology, KCS,
electromechanical transportation, capital construction, safety.
Vice Director of Production: Advise and be responsible to the Director for the
production activities. Directly leading the production field ò the company. Planning
production and directing the inspection of the actual production at the mine sites and
advancing the solutions for manufacturing difficulties. Supervising the technical in the
thorough mine. Research and find out the optimal strategy for coal mining and
production.
Vice Director of Investment – Construction: Manage the work of capital
construction investment.
Accounting Manager: Manage financial affairs and accounting activities.
Besides the management levels, there are socio-political organizations
supporting production and business such as the Party Committee, Union Corporation
and Youth Union of the company.
The departments have different functions which are combined to help the
company operate effectively.
Safety Department: The Technical – Safety Inspection Department, abbreviated
as the Safety Department, is a unit of the company’s structure, with the functions:
 Assisting the Board of Directors in implementing comprehensive occupational
safety and labor protection in the company.
 Directly monitors, guides, urges, and inspects the implementation of
occupational safety and labor protection in the company.

12
  Provide advice to the Board of Directors on fire and explosion prevention,
preventing fire and explosion causing damage to people and property of the
company.
Medical Clinic: The Medical Clinic is a unit of the management structure of the
company, with the task of advising and assisting the Board of Directors in organizing,
managing, and implementing health care activities for employees in accordance with
legal regulations.
Department of Inspection and Low: The Department of Inspection and Low is a
unit of the management structure of the company, with the functions:
 Assisting the Board of Directors in the protection, security and safety of the
company. Proactively develop internal protection plans to prevent possible
violations, implement security and internal political protection, avoid
complicated situations, and thwart enemies and bad elements from taking
advantage of opportunities to organize sabotage, protests and illegal strikes that
would affect production and business.
 At the same time, resolutely handle incidents that violate regulations and affect
production and business, investigate the causes, and find solutions to prevent
them in a timely manner.
 Assisting the Board of Directors in organizing inspections, implementing
directives and resolutions of the Party, laws and nation policies within the
company, and resolving complaints and grievances of employees in accordance
with inspection laws.
 Assisting the Board of Directors in performing tasks related to local defense –
self-defense forces and military rear policies, protecting the company’s territory,
ensuring the annual training requirements and being ready to fight as required
by superiors.

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 Mining Technical Department: The Mining Technical Department is a unit of the
management structure of the company, with the functions of participating in and
assisting the Board of Directors about the mining technical field, including mining
construction projects (planning, renovation project, mine construction, and coal storage
construction); mining technology (underground mining and surface mining); mining
surveying; mining geology; and environmental issues.
Ventilative Department: The Ventilative Department is a unit of the management
structure of the company, with the functions:
 Assisting the Board of Directors in ventilation at different subsidiaries.
 Planning and monitoring, supervising, and urging subsidiaries within the
company to carry out tasks related to ventilation, controlling mine gases, and
managing the ventilation systems.
 Proposing and presiding over the formulation, appraisal and approval of
technical plans and measures for ventilation, control of mine gases, water
drainage plans, and drilling exploration plans applied in the company.
Electromechanical – Transportation Department: The Electromechanical –
Transportation Department is a unit of the management structure of the company,
advising the Board of Directors on the management of technical electromechanical and
transportation (including railway and road transport), under the direction and
administration of the company’s director and direct guidance and management of the
Vice Director of Production. The department has the following main functions:
 Organize and direct the unified technical work for electromechanical and
transportation throughout the company, including:
 Organizing and managing the operation of electromechanical and transportation
machinery and equipment.

14
  Organizing and managing the maintenance and repair of machinery and
equipment at all levels, and installation of electromechanical and transportation
equipment.
 Inspecting subsidiaries implementing procedures of operation, maintenance, and
repair (including external units) performing contracts for repair and installation
of equipment.
 Proactively propose and coordinate with the Technical Departments both inside
and outside the company to develop technical plans and solutions (including the
application of new technologies, innovative technical improvements, etc.) to
synchronize machinery and equipment in the technological chain, maximize
exploitation efficiency, and achieve the most efficient use of machinery and
equipment with the lowest cost.
 Develop, modify, and supplement all processes, the rules of operating,
maintaining, and repairing machinery and equipment, and establish complete
such technical management records.
Materials and Equipment Department: The Materials and Equipment
Department is a unit of the management structure of the company. It is under the
direction of the Vice Director of Technical in the purchase and sale of technical
equipment and supplies, and of the Vice President of Production in the appraisal of
prices and approval of purchase and sale prices of other materials and supplies.
The department’s main responsibilities are as follow:
 Advising the Board of Directors on the management of purchasing and selling
materials and equipment according to the company’s annual plan.
 Advising the Board of Directors on the management, preservation, allocation,
and proper use of materials and equipment according to the production
requirements of the company.

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 Control – Sales – KCS Department: The Control – Sales – KCS Department is a
unit of the management structure of the company, with the functions:
 Advising the Board of Directors on the management of coal production,
consumption and KCS.
 Advising on the allocation of equipment and resources to effectively carry out
business production tasks; renovate the daily production of the entire company;
consumption planning; take charge of receiving and delivering coal with Hon
Gai Transport Stevedoring JSC; develop and encourage the implementation of
coal supply plans of subsidiaries; monitor and direct the processing and
selecting of these units.
Investment – Capital Construction Department: The Investing – Capital
Construction Department is a unit of the management structure of the company, with
the functions:
 Advising the Board of Directors on the management of construction
management.
 Planning the investment projects for construction, monitoring and
supervising the capital construction field, preparing documentations and
technical reports on the implementation of investment projects.
Accounting – Statistics – Finance Department: The Accounting – Statistics –
Finance Department is a unit of the management structure of the company, with the
functions of advising and assisting the Board of Directors on accounting, statistics, and
finance, specifically as follows:
 Managing, following, and summarizing the settlement of costs for materials,
supplies, and equipment of the company.
 Managing and keeping track of the capital, fixed assets, expenses and product
cost management.

16
  Managing and keeping track of accounts receivable, payable, cash fund, salary,
social insurance, public health insurance, and regime expenses for employees
and social organizations.
 Managing and keeping track of the product consumption and determining sales
revenue. Compiling statistics on salaries and capital construction investments of
the company. Updating, summarizing and analyzing statistical data.
Managing Director’s Department: The Accounting – Statistics – Finance
Department is a unit of the management structure of the company, with the functions of
advising and assisting the Board of Directors on organizing and managing the
following areas:
 General activities of the company, helping the Director to direct the operating
system of the company to achieve the highest efficiency.
 Administrative and office work: mail, filing, office administration, and
management of collective areas.
 Traditional work, library and archives.
 Propaganda and emulation work, literature and art.
 Information, communication, information technology, and management of office
equipment for the company.
 Management and operation of transportation serving the company’s production
and business activities.
Personnel and Labor Department: The Personnel and Labor Department is a unit
of the management structure of the company, with the function of advising and
assisting the Board of Directors on recruitment and labor allocation in the production
chain, establishing labor standards, salary rates, salary distribution, training and
development of skills and expertise for employees, and resolving labor policies for
workers. Additionally, planning for salaries, training, providing labor protection

17
equipment, fostering regimes, and establishing regulations of operating for the
company.
Audit Department: The Audit Department is a unit of the management structure
of the company, with the function of advising and assisting the Board of Directors on
internal audit work. Developing regulations for auditing procedures within the
company to ensure compliance with Government laws; Organizing periodic internal
audit on implementation of economic, social, legal policies, assigned tasks and
regulations of the company for organizations and individuals under the management of
the company’s Director.
General Planning Department: The General Planning Department is a unit of the
management structure of the company, with the function of advising and assisting the
Board of Directors on production and business planning and managing the company’s
consumption activities, specifically as follows:
 Comprehensively managing production and business planning (both short-term
and long-term) in all areas of production and business and ensure the physical
and spiritual life of the employees.
 Managing the consumption of coal from marketing, stable exploitation to
sustainable market development.
The current organizational structure of the company can be seen as relatively
lean, easy to manage, and highly specialized. It features a clear assignment of
responsibilities and duties. The various work sites, enterprises, and departments are
interconnected, forming a well-coordinated and efficient production chain.
This streamlined organizational structure allows for effective coordination and
communication among different units, leading to smooth and efficient production
operations. Each department or unit within the structure has defined roles and
responsibilities, contributing to the overall success of the production process.
The production chain operates in a synchronized and efficient manner, ensuring
that activities are seamlessly linked, and tasks are carried out effectively. The

18
interdependencies between different units and departments support the smooth flow of
materials, information, and resources throughout the production process.
The high degree of specialization within the organizational structure indicates a focus
on expertise and efficiency. This specialization allows employees to develop
specialized skills and knowledge in their respective areas, leading to improved
productivity and quality of output.
Overall, the company's production organizational structure is designed to
optimize efficiency, facilitate effective decision-making, and ensure a coordinated and
productive workflow. The clear assignment of responsibilities and interconnectedness
among units contribute to the company's ability to meet production targets and deliver
high-quality products or services.
1.4. Financial position and Financial Performance of VINACOMIN – Hon Gai
Coal Company

19
 Table 1.1: Business Criteria of Hon Gai Coal Company in the last three years
(2020, 2021 and 2022)
Criteria Unit 2020 2021 2022
Current Assets VND 772.305.410.774 525.796.442.334 585.681.468.462
Short-term Receivable VND 63.341.453.520 13.301.125.569 385.959.782.456
Inventories VND 624.684.613.299 469.751.842.343 170.712.770.854
Long-term Assets VND 1.094.795.508.904 1.005.128.310.506 963.624.055.691
Fixed Assets VND 860.749.975.644 738.272.823.169 557.021.641.473
Total Assets VND 1.817.100.919.678 1.530.924.752.840 1.549.305.524.153
Short-term liabilities VND 893.107.390.595 708.326.571.020 789.734.904.765
Long-term liabilities VND 631.082.584.258 822.598.181.820 759.570.619.388
Total liabilities VND 1.524.189.974.853 1.530.924.752.840 1.549.305.524.153
Revenue from sales of goods and VND 2.288.135.224.326 2.940.351.044.348 3.584.169.713.806
rendering of services
Cost of Goods sold VND 2.109.802.722.942 2.780.088.798.097 3.304.061.350.142
Gross profit from sales of goods and VND 178.332.501.384 160.262.246.251 280.108.363.664
rendering of services
Net operating profit VND 38.657.119.990 16.170.432.763 105.689.957.836
Net accounting profit before tax VND 33.278.050.016 13.072.298.741 135.695.811.178
Net profit after tax VND 33.278.050.016 13.072.298.741 135.695.811.178
Source: Financial Statements of Hon Gai Coal Company in 2020, 2021 and 2022

20
 Table 1.1 indicates the financial performance of Hon Gai Coal Company in
manufacturing and business activities as follows:
Total assets witnessed a downward trend during the period. The figure for total
assets in 2020 reached its peak at 1.817 billion VND. In 2021, the figures declined
dramatically by 286 billion VND (15,74%) compared to those in the previous year.
There was a considerable growth in the amount of total assets by 18 billion VND
(1,18%) between 2021 and 2022. Looking at the details of asset accounts, the decrease
in the total assets referred to the reduction of current assets and long-term assets. While
the long-term assets accounted for the majority of total assets, the current assets in
2022 were 24,09% lower than those in 2020 was the main reason for the descending
trend of total assets.
Short-term liabilities experienced a decrease trend between 2020 and 2022. The
figures in 2021 fell dramatically by 185 billion VND and then rose by 11.58% in the
following year. However, the amount in 2022 was 11,53% lower than those in 2020.
This decrease was related to the drop in several accounts namely short-term trade
accounts payable, payable to employees and payables under schedule of construction
contract.
Long-term liabilities illustrated the inverse trend as the proportion grew from
631 million VND in 2020 to 759 billion VND in 2022 corresponding with 20.44%
increase. The growth was results from a incurred payable – Intra-company payables for
operating capital received.
In terms of total liabilities, there were gradual increases during the period. In
2020, the total liabilities accounted for approximately 1.524 billion VND. The amount
then grew slightly by 7 billion VND (1,18%) in the following year and reached it peak
in 2022 at 1.549 billion VND. The liabilities were mainly from long-term borrowings
and finance lease liabilities, in particular a duration of 5 to 10 years.
The above financial criteria had a significant influence on the income statements
of the company between 2020 and 2022, as follows:

21
 Revenue in 2021 increased by 652 million VND (28.5%) compared to the
amount in 2020. However, net profit before tax decreased by more than half
corresponding to 20 billion VND. The justification for the decline was that the
company was experiencing various business instabilities. There was an impairment of
quality, resulting in difficulties in the clean coal processing process. The machines and
equipment were becoming outdated and required maintenance and replacement.
Additionally, the economic downturn caused by the ongoing COVID-19 pandemic had
directly affected people and assets. It can be said that this was a challenging and
difficult year for the whole company.
However, thanks to the attention and supervision of the leadership and civil
servant officers, 2022 witnessed various notable recognized developments. The
revenue reached its peak at 3.584 billion VND, 56,64% higher than the figure in 2020,
leading to the double growth in profit before tax in 2022 with the amount of 136 billion
VND. To achieve these accomplishments, the company made great efforts to overcome
the consequences caused by the pandemic and successfully implemented equipment
upgrades, efficient workforce reduction, and sought strong business partners. This can
be seen as a new steppingstone for Hon Gai Coal company's development on the path
of industrialization and modernization of the country.
To get an insight into the overall financial health of Hon Gai Coal Company,
typical financial ratios including current ratio, ROA and gross margin ratio indicated in
Table 1.2 will provide more information about the company’s performance over time.

22
 Table 1.2: Financial Ratio of Hon Gai Coal Company in the last three years
(2020, 2021 and 2022)
Ratio Unit 2020 2021 2022
Current ratio Times 0,8645 0,7429 0,7418
ROA % 1,82 0,85 8,78
Gross margin ratio % 7,78 5,44 7,81
Source: Author’ compilations
Based on the results of Table 1.2, there are some analyses about the financial
performance of the company, during the period of three years
 Current ratio: The current payment ratio of the business is low (less than 1),
indicating that the company lacked the ability to repay all short-term debts.
 Return on Assets (ROA): The data illustrates the considerable growth from 2020
to 2022. In 2020, for each 100 VND of assets owned, the company only
generated 1,82 VND earnings in net income, whereas the amount generated
increase to 8,78 VND in net income in 2022. This means the company had
improved on its ability to increase its profits with each VND of asset owned.
Additionally, the rate in 2022 was supposed to be higher than comparable
companies – 5,25% in average. It can be reasonably assumed that Hon Gai Coal
Company’s assets are being used near full capacity, or in other words the assets
are used more efficiently than its industry peers.
 Gross margin ratio: There was a slight rise in the rate of gross margin ratio from
7,78% in 2020 to 7,81% in 2022. This implies that the company was generating
a greater proportion of revenue as profit after accounting for the cost of
producing goods or services. It suggests that the company had effective cost
control, pricing power, or a competitive advantage in the mineral industry.

23
 CHAPTER 2: CHARACTERISTICS OF ACCOUNTING ORGANIZATION
AND ACCOUNTING SYSTEM AT VINACOMIN – HON GAI COAL
COMPANY

2.1. Characteristics of accounting organization at VINACOMIN – Hon Gai Coal

Company
2.1.1. Organizational structure of the accounting department
Based on the organizational management structure, Hon Gai Coal Company has
organized its accounting work in a centralized manner, following the structure depicted
in figure 2.1, which is undertaken by the Accounting and Finance Department from the
collecting and recording of initial data to calculating and preparing reports. In the
production sites, economic staff members are responsible for initial accounting tasks
and data collection, which are then sent to the Accounting and Finance Department.
The accounting department operates in a centralized manner with a total of 23
personnel, including 1 Accounting Manager, 2 Deputy Accountants, and 20 staff.
The Accounting – Statistics – Finance Department operates under the guidance
of the Chief Accountant, with the functions of recording, calculating, and accurately
and timely reflecting the company's complete and truthful assets and sources of capital.

24
Figure 2.1: Accounting organizational Structure
Source: The Accounting Department of Hon Gai Coal Company

25
2.1.2. Organizational description of function and mission of some departments
The company’s accounting system is organized according to a centralized
accounting model, headed by the Accounting Manager, and followed by the Deputy
Accountants and accounting staff responsible for different accounting functions. In this
structure, the company has solely an accounting department that handles both detailed
and summary accounting tasks.
Accounting Manager: Is appointed by VINACOMIN, heading the financial,
statistical, and accounting department of the company. This position is responsible for
managing the company’s accounting operations, which assists the BOD in
implementing asset management and utilization policies, as well as enforcing labor
discipline, the use of salary and welfare funds, and compliance with financial and
payment discipline. Additionally, the Accounting Manager helps the BOD gather
economic data, organize, and analyze business activities, identify potential
opportunities, and promote the implementation of accounting procedures to ensure the
company operates efficiently.
Deputy Accounting Manager: Assisting the Accounting Manager in leading the
overall operations of the department and managing related accounting functions.
Deputy Statistics Manager: Assist the Accounting Manager in leading the
overall operations of the department and managing the statistical analysis and treasury
activities.
General Accountant: Responsible for checking and summarizing all economic
transactions that occur during the accounting period. The position’s role typically
involves preparing the financial statements of the company and generating
management reports.
Payment Accountant: Managing and monitoring the company’s payable
obligations related to economic contracts with customers for the purchase of products,
goods, and services. Moreover, the Payment Accountant oversees the accounts payable
process and tracking the payment status of relevant entities.

26
 Cash Accountant: Has the responsibilities related to monitoring cash receipts
and payments, tracking advances, verifying cash, and managing cash funds for valid
receipts and disbursements. Moreover, the Cost Accountant is also in charge of
preparing related reports.
Bank Accountant: Monitoring and processing daily banking transactions based
on bank statements, tracking various types of debit and credit notes, and performing
monthly journal entries and classifications.
Cost Accountant: Utilizing the characteristics of the production process, cost
factors, product characteristics, and organizational requirements to determine the
appropriate cost collection objects and methods, as well as the appropriate cost
calculation methods. By considering the characteristics of the production process, cost
factors, product attributes, and management requirements, a Cost Accountant plays a
vital role in accurately determining cost objects, cost collection methods, and
appropriate cost calculation approaches. The Cost Accountant organizes the collection
and allocation of various cost types based on cost categories and factors incurred in
each accounting period.
Paymaster Accountant: Recording, reflecting, and summarizing timely and
accurate information regarding the quantity, quality, time, and labor outcomes of
employees. The accountant calculates salaries, bonuses, and various allowances
payable to employees, such as leave entitlements and social insurance, monitors and
reports on the payment status of these amounts to employees, as well as to healthcare
and insurance agencies within the company. Additionally, calculating and allocating
salaries and social insurance costs to the production and business costs based on
specific cost objects.
Materials and Instruments and Tools Accountant: Monitoring the monthly
inflow and outflow of raw materials of the company to account for them and determine
the production cost of coal. Creating documents to track the raw materials, such as
material receipts and material issue records. Performing daily inventory checks of the

27
raw materials. Opening a ledger to track the changes in the inflow and outflow of raw
materials in the company. Classifying and evaluating materials in accordance with the
prescribed accounting principles and standards set by the company. Organizing
accounting documents, accounts, and ledgers in line with the inventory accounting
method applied in the company. Ensuring timely and comprehensive recording and
classification of the current quantity and the fluctuation of raw materials. Checking the
implementation of planned targets for the procurement and usage of materials for
production in the company.
Revenue and Tax Accountant: Monitoring and tracking the consumption process
closely, ensuring that the documentation is complete and accurate, and ultimately
determine and distributes the results of the company’s production and business
activities. Moreover, this position is responsible for tax preparation, planning and
compliance. Helping BOD fulfill tax obligations, optimize tax efficiency, and navigate
the complex landscape of tax laws and regulations.
Fixed Asset and Capital Construction Accountant: The responsibilities include
organizing and accurately reflecting comprehensive data in a timely manner regarding
the quantity, condition, and value of existing fixed assets. This includes calculating and
allocating depreciation expenses for fixed assets and production costs accurately.
Additionally, participating in budgeting for the costs of upgrading and renovating fixed
assets, as well as the costs of repairing fixed assets, and reporting to the director on the
implementation status of the budget. Providing guidance for checking that departments
and subordinate units adhere to fixed asset accounting procedures. Participating in
fixed asset inventory and conducting evaluations of fixed assets.
Statistical Officers and Treasurer: The responsibilities include ensuring the
safety of cash and checks, maintaining ledgers to track receipts and disbursements as
recorded by the accounting department and after that conducting careful checks and
regular reconciliations of the sealed cash box, verifying the balance of the actual cash
on hand with the ledger.

28
 The accounting system is centralized, meaning that all accounting tasks,
including document preparation, detailed ledger entries, summarization, and
preparation of accounting reports, are carried out in the company's accounting
department. In the mine and production sites, there is no separate accounting
department. Instead, economic staff members are assigned with the responsibility of
collecting and transferring data periodically from these sites to the central accounting
department for consolidation and analysis.
2.2. Characteristics of accounting system at VINACOMIN - Hon Gai Coal
Company
2.2.1. General Accounting Policies
Accounting regime applied: According to the current state enterprise accounting
regime (Circular No. 200/2014/TT-BTC dated 22/12/2014, issued by the Ministry of
Finance)."
 Monetary unit: Vietnam Dong (VND)
 The accounting period begins on January 1 and ends on December 31 of the
Gregorian calendar year.
 Accounting method for inventory:
Determination of the value of inventory: according to original prices.
Method of calculating the value of inventory: Raw materials, instruments and
tools are determined using the weighted average method. As for the inventory of
finished products and the cost of unfinished business, they are determined according to
the regulations of VINACOMIN.
Accounting method for inventory: Perpetual Inventory System.
Method of setting up provisions to reduce the value of inventory: Implemented
for raw materials, goods, and finished products whose original value exceeds their net
realizable value.
 Accounting method for fixed assets

29
 The principles of recognizing fixed assets (tangible, intangible, and financial
lease assets): Tangible and intangible fixed assets should be presented at cost or
revalued amount as per the government's regulations on accumulated depreciation.
Methods of depreciation of fixed assets (tangible, intangible, and financial lease
assets): Straight-line depreciation method, in accordance with Circular No.
45/2013/TT-BTC dated 25/4/2013, issued by the Ministry of Finance.
 Accounting method for expense: The financial statements include the value of
costs that have been accounted for as operating expenses in the financial period
but have not been actually incurred. This is done to ensure that when the actual
costs are incurred, they do not cause significant fluctuations in the operating
expenses, thus maintaining the appropriate correlation between revenue and
expenses. If there are differences between the actual incurred costs and the
amount reserved, the accounting will make additional adjustments or reduce the
corresponding difference.
 Accounting method for payable: In the financial statements, the amounts
payable should be presented based on the recorded values of customer liabilities
and other payable amounts. These should be itemized and provided in detail for
each payable entity at the reporting date.
 Accounting method for owners’ equity: The investment capital of the company
is owned by the state and directly managed by VINACOMIN. The owner's
investment capital is provided or supplemented from the annual profits based on
VINACOMIN's decision. The realized profits of the company are submitted to
the parent company – VINACOMIN.
 Accounting method for revenues
Revenue is recognized when the outcome of a transaction can be reliably
verified, and the company has the ability to benefit economically from the transaction.

30
 Sales revenue is recognized when the majority of risks and rewards associated
with ownership of the goods have been transferred to the buyer, and the goods have
been delivered to and accepted by the customer.
Revenue from service provision is recognized when the majority of risks and
rewards have been transferred to the customer, the service has been provided, and it has
been accepted by the customer.
Revenue from financial activities includes revenue generated from interest on
deposits, lending activities, exchange rate differences, and other financial activities.
Interest on deposits and loans is determined on an accrual basis, calculated based on
the balance of deposits and the applicable interest rates.
 Accounting method for cost of goods sold
The cost of goods sold is recognized in a manner that is consistent with the sales
revenue and in accordance with the principle of prudence.
The cost of goods sold for the company includes the cost of operating the
production and business of coal, the cost of providing services, etc. The cost of
operating the production and business of coal is determined according to the
regulations of VINACOMIN.
 Accounting method for Tax
The value-added tax (VAT) rates for goods and services produced and provided by the
company are as follows: 10% for coal products, 10% for service provision, and 5% for
electricity and water.
The corporate income tax is accounted for and centralized at VINACOMIN. The
taxable income is calculated based on the annual operating results and adjusted for
expenses that are not considered reasonable and valid for tax purposes.
Other types of taxes: According to current regulations.

31
2.2.2. Features of Accounting Documents
Accounting method: General ledger accounting is characterized by recording
all economic transactions chronologically in a general ledger. These transactions are
then transferred to the subsidiary ledger for detailed accounting and subsequently
posted to the general ledger. This method provides a comprehensive and organized
record of financial transactions, allowing for easier analysis and preparation of
financial statements.
2.2.3. Features of Chart of Accounts
The application of the accounting system in a company is based on the general
chart of accounts prescribed for businesses according to Decision No. 15/2006 issued
by the Ministry of Finance on March 20, 2006. The Chart of Accounts is shown in
Appendix 1.
According to the accounting management requirements of the company, it is
necessary to develop detailed accounts that are suitable for the nature of business
operations and the level of financial management hierarchy.
2.2.4. Features of Accounting Books
With the general journal accounting format that the company applies, the
accounting books used in the company are all in accordance with the prescribed
templates, including:
 Original Documentations
 General Journal
 Accounting Detail Book
 Accounting Summary Report
 General Ledger
 Statement of account balances
 Financial Statement

32
 Original Documentations

General Journal Accounting Detail Book

General Ledger Accounting Summary Report

Statement of account balances

Financial Statement

Note:
Daily entries :
Month-end closing entries :
Reconciliation and verification :
Figure 2.2: Recording accounting process
Source: The Accounting Department of Hon Gai Coal Company
On a daily basis, based on the verified original documents, data is directly
recorded into the relevant accounting journals or subsidiary ledgers. This process

33
involves taking the information from the original documents and entering it into the
appropriate accounting records.
The accounting entries in the general journal are recorded based on the
supporting schedules and subsidiary ledgers. On a daily basis, the entries are made by
referencing the accounting vouchers and subsidiary ledgers. At the end of the month, it
is necessary to summarize and transfer the accumulated data from the supporting
schedules, subsidiary ledgers, and general journal.
In terms of expenses related to production and business activities that occur
multiple times or require allocation, the original documents are initially collected and
classified in an allocation table. Subsequently, the results from the allocation table are
used to record data in the relevant general journal.
At the end of the month, quarter, or year, the balances from the general ledger
are consolidated, and an account balance sheet is prepared. This process involves
adding up the data from the general ledger and creating a detailed summary table. Once
the reconciliation and verification process confirm that the data in the general ledger
and the detailed summary table match correctly, these records are used to prepare the
financial reports.
The financial reports are prepared using the information recorded in the general
ledger and the detailed summary table. These reports provide a comprehensive view of
the company's financial position, performance, and cash flow, allowing stakeholders to
assess the company's financial health and make informed decisions.
2.2.5. Features of Accounting Reports
The company organizes the preparation and analysis of financial reports in
accordance with the "Enterprise Financial Reporting Framework" issued by Decision
15/2006/QD-BTC on 20/3/2006, by the Ministry of Finance. This framework applies to
all enterprises and includes the following forms:
 Balance sheet: Form B01 – DN

34
  Income Statement: Form B02 – DN
 Statement of Cash Flow: Form B03 – DN
 Financial Statement Notes: Form B09 – DN
The interim financial statements are prepared for each quarter of the financial
year (excluding the fourth quarter). The company is required to submit the financial
statements to the TKV no later than 20 days from the end of the respective quarterly
accounting period.
The financial statements for the year are typically submitted to the following
entities, within 90 days from the end of the accounting period:
 Department of Finance – Quang Ninh Province
 Department of Taxation – Quang Ninh Province
 Vietnam National Coal – Mineral Industry Holding Corporation Limited
(VINACOMIN)
 Department of Planning and Investment – Quang Ninh Province
2.3. Features of some key accounting cycles in VINACOMIN – Hon Gai Coal
Company
2.3.1. Features of Accounting for Material
2.3.1.1. Features of Material at Hon Gai Coal Company
Hon Gai Coal - TKV Company is a coal mining enterprise, so the materials used
in the company are diverse and complex, with a large volume, such as wood,
explosives, gasoline, oil, lubricants, spare parts, machinery, and equipment.
All materials purchased are thoroughly tested and checked for compliance with
the company's usage requirements before being stored in the warehouse. The materials
are divided into different types and managed in separate warehouses according to their
functions and technical features. Each workshop also has its own material warehouse to
ensure that materials received from the company's warehouse are properly preserved
during transportation to the workshop.

35
 Given these characteristics, effective management of materials is crucial in Hon
Gai Coal - TKV Company. Therefore, it is necessary to organize tight and detailed
accounting of materials throughout the processes of storage, procurement, reserves, and
usage. This is an essential requirement in material and tool management as it
significantly contributes to the company's economic efficiency, and thus, material and
tool accounting must fulfill its responsibilities effectively.
The company uses various types of materials, tools, and equipment with
different functions, qualities, and characteristics. In order to accurately calculate the
value of each type of material and tool, the accounting for Raw Materials and Tools
works in collaboration with the Supply Department to classify them as follows:
Raw Materials:
 Auxiliary Materials: This category includes explosive materials, kiln wood, and
materials used for processing.
 Fuel: These are used for combustion engines, such as diesel fuel, gasoline A90,
c, and various types of lubricating oils.
 Spare Parts: This category comprises easily replaceable components used for
repairing and maintaining production machinery and vehicles.
 Scrap Materials: These are materials separated or discarded during the
production process, including materials recovered from furnaces and spare parts
after repairs.
 Since Hon Gai Coal Company is involved in coal production and business, it
does not have a main raw material.
2.3.1.2. Accounting Document and Procedure
a. Accounting Documents
Receipt Documents
 Value Added Tax (VAT) Invoice (Form 01GTKT3)
 Material Purchase Order (Form 01-VT)

36
  Material Inventory Report (Form 03-VT)
 Material Allocation Schedule (Form 07-VT)
Delivery Documents
 Material Requisition, Materia; Issue Voucher (Form 02-VT)
 Material Receipt Voucher, VAT Invoice (Form 01GTKT3)
b. Chart of Accounts
The accounts used to record material transactions in the company are typically
categorized under account 152. The company has further classified the level II
accounts under account 152 as indicated in the Appendix 2, namely:
 152.1: Auxiliary Materials
 152.2: Fuel
 152.3: Spare Parts
 152.4: Scrap Materials
c. Accounting Books
 Material Receipt Register (Form S10-DN)
 Material Ledger (Form S10-DN)
 Stock Card (Form S12-DN)
 Material Detailed Summary (Form S11-DN)
 Journal Voucher number 5 (Form S04-DN)
 Accounts Payable Ledger (Form S31-DN)
 Material Allocation Schedule (Form 07-VT)
 Journal Voucher number 7 (Form S04-DN)
 General Ledger Account 152 (Form S05-DN)
d. Accounting Procedure
For input raw materials

37
 To receive materials into inventory, the following documents are required:
economic contracts or approved price records, request forms, approved quotations, and
any other relevant documentation if necessary.
Material inspection: A receiving inspection report must be prepared for the
materials received. This report should include information on the quantity, quality,
manufacturing number (if applicable), and place of production or supply, and the
signatures of the inspection team members. The receiving inspection team typically
consists of the following members: a designated Deputy Director, a representative from
the technical department relevant to the assigned area, the procurement department, the
delivery personnel, the warehouse keeper, and any other necessary economic
personnel.
Inventory Receiving Voucher, Stock Card
All materials and tools being received into inventory must have a specific
inventory receiving voucher. The inventory receiving voucher should clearly and
completely indicate date and month of receipt, invoice number, selling unit or vendor,
material code, item name, specifications, place of production, quantity, unit price, total
amount, full signatures, and names of the individuals involved (the receiver, warehouse
keeper, material management supervisor, and tool manager).
Furthermore, all materials and tools in the inventory are tracked through an
inventory card. The warehouse keeper is responsible for recording comprehensive
information about the materials on the inventory card (name of the material, material
code, manufacturing number, specifications if any, quantity, unit price, etc.) and
information about the receipt date, material supplier, issuance date, recipient unit,
reason for issuance.
The procedures for receiving raw materials are generally summarized in Figure
2.3.

38
 General Planning Materials and Tools Receiving inspection Warehouse keeper Accounting
Department Department Team Department

Demand for raw Store and

materials Preservation

Price approval Detailed ledger,

Approve purchase record, economic Inspection report General ledger
contract, warehouse Stock card
requisitions account book for
receipt account 152, etc.

Figure 2.3: Input material procedure

Source: The Accounting Department of Hon Gai Coal Company

39
 If any shortages or discrepancies in quantity, specifications, or quality are
detected, the warehouse keeper must report to the materials department and, together
with the accounting department, prepare a report as a basis for resolving the issue with
the supplier.
The report should include the full signatures of the participating parties, such as
the warehouse keeper, accountant, owner of the goods, and the technical department.
Subsequently, the report is signed by the Director.
If the goods are complete and meet the required quality standards, the warehouse
keeper records them in the ledger and then forwards the relevant documents to the
materials department.
Based on the invoice, inventory check report, inspection report, and cross-
referencing with the signed contract regarding quantity, types, and quality of raw
materials, the materials management department prepares a warehouse receipt. Goods
must undergo verification, inspection, and have a corresponding report before being
entered into the warehouse. The inspection team consists of representatives from
relevant technical and functional departments as specified by the company's Director.
The warehouse entry procedure includes:
 Materials and tools demand list according to the company's regulations.
 Request document for purchase, warehouse entry, and payment approval from
the Director.
 Quotation from suppliers.
 Sales invoice issued by the Ministry of Finance.
 Materials acceptance report.
 Warehouse receipt.
The warehouse receipt is prepared in three copies:
 Copy 1: Kept in the materials management department.

40
  Copy 2: Given to the warehouse keeper for updating the inventory card based on
the quantity criteria and forwarded to the accounting department for recording in
the accounting ledger.
General Planning Materials and Tools Accounting
Warehouse keeper
 Copy 3: Attached to the
Department invoice for
Department payment. Department

The warehouse receipt must fully and clearly comply with Form 01 - VT (as per
Circular No. 200/2014/TT-BTC dated 22/12/2014, issued by the Ministry of Finance).
For output raw materials

Demand for raw Store and

materials Preservation

Detailed ledger,
Price approval General ledger
Approve purchase record, economic Stock card account book for
requisitions contract, warehouse account 152,
receipt summary inventory
movement report

Figure 2.4: Output material procedure

Source: The Accounting Department of Hon Gai Coal Company

41
 Based on the production needs, the respective units prepare material requisition
forms.
The functional departments and Deputy Directors approve the material
requisition forms of the respective units within their assigned areas, as directed by the
Director.
Based on the approved material requisition forms, the units write material issuance
forms. The material issuance form consists of three copies (one copy for the Finance
and Accounting department, one copy for the Materials Management department, and
one copy for the receiving unit).
The material issuance form is written for a specific task only.
The material issuance form must include complete information such as the date, name
of the recipient, receiving unit, task name, reason for issuance, material name,
specifications, manufacturing number (if applicable), unit of measurement, and
requested quantity.
When the production workshops have material requirements, they must have
material allocation forms.
The material allocation form must be scientifically calculated based on the
monthly plan and appropriate consumption levels specific to each cost object of each
unit. The material allocation form is prepared separately for each unit.
The material allocation form is prepared by the General Planning department in
accordance with the monthly or weekly production plan, considering the production
conditions of the company at each time. It is then submitted to the Director for
approval, serving as the basis for the Materials and Tools Department to prepare
material issuance forms.
2.3.1.3. Valuation method of Materials and Equipment
a. Goods received method
For materials received into inventory, the accounting method used to assess their
value is based on the actual cost method:

42
 Actual received price of raw materials = Actual purchase price + Non-refundable taxes +
Purchase cost – Deductions
 Actual cost refers to the purchase price recorded on the invoice, excluding
value-added tax (VAT), which is deducted.
 Non-refundable taxes include import taxes and special consumption taxes.
 Purchase costs include transportation fees, loading and unloading fees, and
storage costs.
 Deductions include trade discounts and purchase discounts.
b. Goods issuance method.
Hon Gai Coal Company utilizes the weighted-average cost method for inventory
valuation. This method is consistently applied throughout the accounting period.
According to the weighted-average cost method, the actual value of raw
materials issued from inventory is calculated as follows:
Cost of goods available for sale = Weighted-average cost per unit x Inventory in units
Beginning Inventory cost+Purchased Inventory cost
Weighted-average cost per unit =
Beginning Inventory+Purchased Inventory
 Method for allocating raw material:
Monthly allocation amount
Allocation amount incurred within a month = x Number of days used in a month
Total days of incurred month
Yearly allocation amount
Monthly allocation amount =
12 months
Cost of materials
Yearly allocation amount =
Allocation period

2.3.1.4. Detailed Recording Process for Material

At warehouse
Based on the warehouse receipts and material issuance forms, the warehouse
keeper reflects the status of material and tool inventory in the inventory cards, focusing
on quantity. When receiving material receipts or material issuance documents, the

43
warehouse keeper checks the validity and reasonableness of the documents and records
them in the corresponding inventory cards for each item.
The warehouse receipts and material issuance forms, after being recorded in the
inventory cards, are classified and sent to the accounting department on a regular basis,
typically every 3 to 5 days. At the end of the month, the warehouse keeper calculates
the total inventory of each material based on the inventory cards.
At accounting department
Based on the warehouse receipts and material issuance forms, the accounting
department verifies the documents, records the unit price, and calculates the amount for
material transactions. This information is then recorded in the detailed material ledger.
At the end of the month, the accounting department consolidates the detailed material
ledgers to calculate the total inventory of each material and prepares a detailed material
summary report. Additionally, it is necessary to reconcile the data in the detailed
material summary report with the general accounting records.
The procedure of recording inventory is classified in Figure 2.5.

44
 Stock Card

Warehouse Receipt Delivery Note

Stock Detail Book

Stock Summary Report

General Accounting

Note:
Daily entries :
Month-end closing entries :
Reconciliation and verification :
Figure 2.5: Detailed Accounting Chart for Materials at Hon Gai Coal Company
Source: The Accounting Department of Hon Gai Coal Company
Beginning of the period: Based on the actual value of raw materials, tools, and
equipment in transit, as well as the opening inventory, the transfer is made to account
611.

45
 During the period: When purchasing raw materials, tools, and equipment, the
accounting is based on relevant invoices and documents, reflecting the actual value
directly into account 611.
End of the period: Based on the results of inventory counting, the accounting
transfers the value of unused raw materials, tools, and equipment and determines the
value of materials consumed. To determine the value of materials consumed for each
type of raw material, tool, and equipment used for production, the general accounting
must be combined with detailed accounting to obtain accurate results.

46
 151, 152 611 151, 152

Value of opening inventory of Value of ending inventory of

raw materials raw materials

111, 112, 141,331 111, 112

Value of raw materials purchased Trade Discount or Returns and

during the period Allowances
133 133
Input VAT tax
VAT tax

3331 , 3332 621

Import VAT tax Value of Direct Materials

3333 627, 641,642

Import tax calculated on raw Value of materials used for

materials production, sales and management

411 632

Receiving capital contribution in a Selling raw materials

joint venture by using raw materials

338 1381, 642

Excess inventory count Inventory shortage, loss or

discrepancy

412 412

Increase in discrepancy due to Decrease in discrepancy due to

revaluation of raw materials revaluation of raw materials

Figure 2.6: Accounting of raw materials by periodic inventory method

Source: Circular No. 200/2014/TT-BTC

47
 Example 1: On July 12, 2023, we received in our warehouse 6.4 CP17 anti-roll
bars purchased from Ha Long Mechanical Engineering Ship Building Joint Stock with
invoice number 0108845. The total payment, including a 10% VAT, was 19.602.000
VND, paid via bank transfer.
Accountant records:
Dr. 152 – Raw materials: 17.820.000 VND
Dr. 133 – Deductible VAT: 1.782.000 VND
Cr. 112 – Cash in bank: 19.602.000 VND
The transaction is recorded in documents as follows:
VAT Invoice number 0108845 (Form 2.1)
Inspection report (Form 2.2)
Warehouse receipt number 1542 (Form 2.3)
Stock card (Form 2.5)
Stock Detail Book (Form 2.6)
Stock Summary Report (Form 2.7)
Example 2: On July 25, 2023, we issued 10 CP17 6.4 anti-roll bars from our
warehouse for production purposes. Unit price: 891.000 VND per anti-roll bar.
Accountant records:
Dr. 621 – Direct raw materials cost: 8.910.000 VND
Cr: 152 – Raw materials: 8.910.000 VND
The transaction is recorded in documents as follows:
Delivery Note number 1621 (Form 2.4)
Stock card (Form 2.5)
Stock Detail Book (Form 2.6)
Stock Summary Report (Form 2.7)

48
 VAT Invoice Form No.: 01 GTKT3/001
Copy 2: Send to buyer Serial No.:TA/11P
Invoice No.:0108845
July 12, 2023
Seller: Ha Long Mechanical Engineering Ship Building JSC
Tax Code: 0200137523
Address: Bai Chay - Ha Long - Quang Ninh
Account No.:
Payment Method: Bank Transfer
Buyer:
Company Name: Hongai Coal Company - TKV
Address: 169 Le Thanh Tong Street - Hong Gai - Ha Long - Quang Ninh
Account No.:
Payment Method: Bank Transfer Tax Code: 5700100256-063
No. Description Unit Quantity Unit Price Amount
1 Anti-roll bars CP17 6.4Girder 20 891.000 17.820.000

Sub total: 17.820.000

Tax rate: 10% VAT amount: 1.782.000
Total payment: 19.602.000
Amount in words: Nineteen million six hundred and two thousand dong./.
Buyer Seller Head of Unit

Form 2.1: VAT Invoice purchase Anti-roll Bars CP17 6.4

Source: The Accounting Department of Hon Gai Coal Company

49
 HONGAI COAL COMPANY - TKV Form No. 03 - VT
(Issued by Circular No. 200/2014/TT-BTC dated
169 Le Thanh Tong Street - Hong Gai - Ha Long - Quang Ninh 22/12/2014, issued by the Ministry of Finance)

Based on the Contract No. 0108845 on July 12, 2023
Inspection Board includes:
Sir/Madam: Lai Thai Binh
Sir/Madam: Ha Duy Anh
Sir/Madam: Nguyen Thi Mai
Types of Inspected Items:
INSPECTION REPORT
Materials, Tools, Products, Goods
July 12, 2023
Report No.: 1542
Position: Accounting Manager Head of the Board
Position: Materials and Instruments and Tools Accountant Member
Position: Warehouse keeper Member

Inspection findings
No. Description Code Method Unit Quantity Satisfactory Unsatisfactory Note
quantity quantity
1 Anti-roll bars CP17 6.4 73080 Bar 20 20

Comment: All quantities of the purchased anti-roll bars received into the warehouse are in compliance with the specified
standards.
July 12, 2023
Technical Representative Warehouse Keeper Head of the Board

Form 2.2: Inspection Report

Source: The Accounting Department of Hon Gai Coal Company

50
169 Le

Form 2.3: Warehouse Receipt

Source: The Accounting Department of Hon Gai Coal Company

51
 HON
169 Le Thanh To

Form 2.4: Delivery Note

Source: The Accounting Department of Hon Gai Coal Company

52
 HONGAI COAL COMPANY - TKV Form No. S12 - DN
169 Le Thanh Tong Street - Hong Gai - Ha Long - Quang Ninh (Issued by Circular No. 200/2014/TT-BTC dated 22/12/2014, issued by the
Ministry of Finance)

STOCK CARD
Date Created: July 1, 2023
Name and category of item: Anti-roll bars CP17 6.4 Site: Warehouse No. 01
Code: 73080 Unit: Girder
Voucher Receipt/Issue Quantity
No. Date Description Accountant's Signature
Receipt Issue Date Receipt Issue Stock
Opening balance 105
1 12/7 PN1542 Purchase goods for inventory 12 20 125
2 17/7 PX1610 Warehouse withdrawal for production purposes 17 15 110
3 20/7 PN1546 Purchase goods for inventory 20 35 145
4 25/7 PX1621 Warehouse withdrawal for production purposes 10 135

Addition incurred 55 25
Ending balance 135
July 31, 2023
Prepared by Chief Accountant Director

Form 2.5: Stock Card

Source: The Accounting Department of Hon Gai Coal Company

53
 HONGAI COAL COMPANY - TKV Form No. S10 - DN
(Issued by Circular No. 200/2014/TT-BTC dated 22/12/2014, issued by the Ministry
169 Le Thanh Tong Street - Hong Gai - Ha Long - Quang Ninh of Finance)
STOCK DETAIL BOOK
July 2023
Account: 152 Name and category item: Anti-roll bars CP17 6.4
Site: No. 01 Item code: 73080
Unit: Girder
Voucher Receipt Issue Stock
Description Ref. Account Price
No. Date Quantity Amount Quantity Amount Quantity Amount
Opening Balance 891.000 105 93.555.000
PN1542 12/7 Purchase goods for inventory 112 891.000 20 17.820.000 125 111.375.000
PX1610 17/7 Warehouse withdrawal for production purposes 621 891.000 15 13.365.000 110 98.010.000
PN1546 20/7 Purchase goods for inventory 331 891.000 35 31.185.000 145 129.195.000
PX1621 25/7 Warehouse withdrawal for production purposes 621 891.000 10 8.910.000 135 120.285.000

Addition incurred 55 49.005.000 25 22.275.000

Ending Balance 135 120.285.000
July 31, 2023
Prepared by Chief Accountant Director

Form 2.6: Stock Detail Book

Source: The Accounting Department of Hon Gai Coal Company

54
 HONGAI COAL COMPANY - TKV Form No. S11 - DN
169 Le Thanh Tong Street - Hong Gai - Ha Long - Quang Ninh (Issued by Circular No. 200/2014/TT-BTC dated 22/12/2014, issued by the Ministry of Finance)

STOCK SUMMARY REPORT

Account: 152
July 2023
Opening stock Receipt Issue Closing stock
No. Code Name and Category of name Unit
Quantity Amount Quantity Amount Quantity Amount Quantity Amount
1 73080 Anti-roll bars CP17 6.4 Girder 105 93.555.000 55 49.005.000 25 22.275.000 135 120.285.000
2 74080 Pillar CP17 6.4 Pillar 65 59.182.500 50 45.525.000 40 36.420.000 75 68.287.500
3 73081 Trapezoidal girder CP17 Girder - - 50 43.280.000 - - 50 43.280.000
4 75091 Steel rails Meter 40 580.000 - - - - 40 580.000
… … … … … … … … … … … …

Total 7.660.263.452 12.435.752.242 11.134.427.476 8.961.588.218

July 31, 2023

Prepared by Chief Accountant Director

Form 2.7: Stock Summary Report

Source: The Accounting Department of Hon Gai Coal Company

55
2.3.1.5. General Accounting for Materials and Equipment
Chart of Account
 Account Name: Raw materials
 Account Code: 152
Accounting Books
 General Journal
 Ledger for Account 152
Recording and Summarizing Raw Materials
Based on accounting documents (Warehouse receipts, Delivery Note, etc.) that
have been verified as a basis for recording:
On a daily basis, the accountant records the transactions in the General Journal,
then uses the recorded data from the General Journal to update the General Ledger for
Account 152 accordingly.
At the end of the month, quarter, or year, the data recorded in the General
Ledger is summarized, and an Account Balance Sheet and Financial Report are
prepared.
The accounting sequence for recording and summarizing raw materials is reflected in
Figure 2.7.

56
 Voucher
(Warehouse Receipt, Delivery Note,)etc.

Subsidiary ledger for detailed accounting

General Journal
of Account 152

General Ledger for Account 152 Detailed summary table for Account 152

Statement of account balances

Financial Statement

Note:
Daily entries :
Month-end closing entries :
Reconciliation and verification :
Figure 2.7: Accounting sequence for recording and summarizing raw materials
Source: The Accounting Department of Hon Gai Coal Company

57
 Example 3: Continuing from Examples 1 and 2
Based on receipt number 1542 and issue voucher number 1621, the accountant
records in the General Journal (Form 2.8). From the General Journal, entries are made
in General Ledger Account 152 (Form 2.9).

58
VIETNAM NATIONAL COAL - MINERAL INDUSTRY HOLDING CORPORATION LIMITED Form No. S03a - DN
HONGAI COAL COMPANY - TKV (Issued by Circular No. 200/2014/TT-BTC dated 22/12/2014,
issued by the Ministry of Finance)

GENERAL JOURNAL
Year 2023
Unit: Dong
Voucher Arising amount
Description Posted to GL Row No. Ref. Account
No. Date Debit Credit
A B C D E G 1 2
… … … … … … … …
152 17.820.000
PN1542 Purchase Anti-roll Bars CP17 6.4 by 133 1.782.000
12/7
HĐ108845 bank transfer
112 19.602.000
621 10.560.000
PX1608 12/7 Issue for production purposes
152 10.560.000
621 580.000
Issue Steel rails P24 for production
PX1609 13/7
purposes
152 580.000
… … … … ... … … …
141 4.500.000
PC1478 18/7 Disburse travel advances
111 4.500.000
… … … … … … … …
152 13.657.500
133 1.365.750
PN1560 25/7 Purchase Pillar CP17 (6.4) on credit
331 15.023.250
621 8.910.000
PX1621 25/7 Issue for production purposes
152 8.910.000
111 180.000.000
Withdraw funds from a bank deposit
PT1580 30/7
to the cash reserve
112 180.000.000
… … … … … … … …
Addition Incurred 4.174.747.605.817 4.174.747.605.817

July 31, 2023

Prepared by Chief Accountant Director

Form 2.8: General Journal entries for year 2023

Source: The Accounting Department of Hon Gai Coal Company

59
VIETNAM NATIONAL COAL - MINERAL INDUSTRY HOLDING CORPORATION LIMITED Form No. S03a - DN
HONGAI COAL COMPANY - TKV (Issued by Circular No. 200/2014/TT-BTC dated
22/12/2014, issued by the Ministry of Finance)

GENERAL LEDGER
Year 2023
Account: 152 - Raw Materials
Unit: Dong
Voucher Arising amount
Description Ref. Account
No. Date Debit Credit
Opening Balance 7.660.263.452
… … … … … …
PN1542 12/7 Receive Anti-roll Bars CP17 6.4 112 17.820.000
Issue Trapezoidal girder CP17 for
PX1608 12/7 621 10.560.000
production purposes
Issue Steel rails for production
PX1609 13/7 621 580.000
purposes
… … … … … …
PN1560 25/7 Purchase Pillar CP17 (6.4) on credit 331 13.657.500
Issue Anti-roll Bars CP17 6.4 for
PX1621 25/7 621 8.910.000
production purposes
… … … … … …
Addition incurred 12.435.752.242 11.134.427.476
Ending Balance 8.961.588.218
July 31, 2023
Prepared by Chief Accountant Director

Form 2.9: General Ledger for year 2023

Source: The Accounting Department of Hon Gai Coal Company

60
2.3.2. Features of Accounting for Fixed Assets - Tangible
2.3.2.1. Features of tangible assets at Hon Gai Coal Company
Fixed assets of a company, in addition to the common characteristics such as
long-term usage (over one year), high value (over 10.000.000 VND), subject to
depreciation during production, and gradual transfer of value to the cost of goods sold,
also have the following specific characteristics:
Characteristics of fixed assets: Based on the specific requirements of a
company's primary operations, such as coal mining and processing using underground
mining technology. In this case, the fixed assets of the company mainly consist of
tangible fixed assets, and each stage of the mining process may require different types,
values, usage periods, and technical specifications.
The technical condition of fixed assets: Prior to 2003, due to the specific nature
of the coal industry in Vietnam, the company inherited outdated technical infrastructure
from the 1980s. As a result, the majority of fixed assets were old, outdated, and nearing
the end of their useful lives. These assets might have been significantly depreciated and
no longer represented state-of-the-art technology. Since 2004, the company has
undertaken efforts to invest in the modernization and renewal of fixed assets. This
investment aims to apply advanced scientific and technical advancements to increase
mining productivity, improve production quality, and reduce the cost of goods sold.
Consequently, there has been an increase in the quantity, value, and production
capacity of fixed assets.
Characteristics of fixed asset management and investment: As a subsidiary of
VINACOMIN, Hon Gai Coal Company operates under the centralized management
structure of VINACOMIN. This means that the company's fixed asset management and
investment decisions are not entirely autonomous but are subject to the overall control
and strategic development direction set by VINACOMIN.

61
2.3.2.2. Accounting Documents and Procedures
a. Chart of Accounts
To monitor the usage of fixed assets in the company, the accounting department
has utilized the following account codes: 211, 214, 241, and several other account
codes such as 111, 112, 331, 627, 642.
b. Accounting Books
The accounting department uses the following books to track and consolidate
fixed assets of the company:
 General Journal
 General Ledger account 211, 214, 241
 Detailed Summary for account 211, 331
 Fixed Asset Roll forward Schedule
c. Accounting Documents
For every economic transaction related to fixed assets, the company prepares
accounting documents as evidence for recording purposes. The accounting documents
used by the company as a basis for accounting for fixed asset transactions include:
Minutes of handover of fixed assets Form No. 01 – TSCD
Fixed Asset liquidation record Form No. 02 – TSCD
Handover Report of tool & supply repair Form No. 03 – TSCD
with high value
Minute of Fixed Asset Form No. 05 – TSCD
Fixed Asset depreciation by department Form No. 06 – TSCD
Table 2.1: Accounting Documents of recording fixed assets
Source: The Accounting Department of Hon Gai Coal Company
Other accounting documents related to the purchase and sale of fixed assets.
Opening a fixed asset card: Each fixed asset is assigned a separate fixed asset card for
tracking purposes. The fixed asset card is based on documents such as the fixed asset

62
handover record, fixed asset revaluation record, depreciation schedule, fixed asset
disposal record, and relevant technical documentation. The information on the fixed
asset card is recorded when the buying or construction activity is completed and
handed over. Based on the accounting documents, all relevant information regarding
the fixed asset is recorded on the card.
For example:
 The original cost of the fixed asset is recorded in the "Original Cost" column of
the fixed asset card based on the handover record.
 The monthly depreciation amount, as indicated in the depreciation schedule, is
recorded in the "Accumulated Depreciation" column.
 The accumulated depreciation value is then added up in the "Accumulated
Depreciation" column.
 Fixed asset cards belonging to the same group of fixed assets are grouped
together and stored in separate pages within the fixed asset ledger. These cards
are kept in the finance and accounting department to track and reflect the
changes that occur during the asset's usage.
d. Accounting Procedures
The summarized process of accounting for fixed assets typically involves the
steps which are illustrated in Figure 2.8.

63
 Original Documentations

Fixed Asset depreciation by

General Journal Detail Fixed Asset Ledger
Department

Detail Book for Account 627, 642 Accounting Fixed Asset

General Ledger Account 211, 214
Summary Report

Statement of account balances

Financial Statement

Note:
Daily entries :
Month-end closing entries :
Reconciliation and verification :
Figure 2.8: The process of accounting for fixed assets
Source: The Accounting Department of Hon Gai Coal Company
On a daily basis, based on the original source documents of economic
transactions, the accounting department reflects them in the fixed asset card, prepares
depreciation calculation and allocation tables, and reflects them in the general ledger.
The data in the general ledger serves as the basis for accounting entries in accounts 211
and 214. Based on the fixed asset card, the accounting department reflects the
information in the detailed fixed asset ledger to create detailed fixed asset summary

64
tables (the quantity and content of these tables may vary depending on each company's
management requirements). The data in the detailed fixed asset summary tables is
cross-referenced with the data in the ledger for accounts 211 and 214. Based on the
data in the depreciation calculation and allocation tables, the accounting department
reflects it in the detailed expense accounts, such as accounts 627 and 642. Based on the
ledger for accounts 211 and 214, the accounting department prepares a balance sheet to
balance the generated figures.
2.3.2.3. Accounting for tangible assets movement
Accounting process for increasing fixed asset
The increase in fixed assets at a company mainly comes from the following
sources:
 Increase due to new purchases: When a company acquires new fixed assets
through purchases from external vendors or suppliers, the value of the fixed
assets increases. This includes buying assets such as machinery, equipment,
vehicles, or buildings.
 Increase due to completed construction projects: If a company engages in
construction projects, the completion and handover of these projects can lead to
an increase in fixed assets. This includes the addition of newly constructed
buildings, structures, or infrastructure.
 Increase due to internal transfers or relocations: Fixed assets may also increase
when they are transferred or relocated within the company. For example, if a
company moves machinery or equipment from one department to another, or
from one location to another, it results in an increase in the fixed asset value at
the receiving department or location.
In each of these cases, the detailed accounting process for increasing fixed
assets would involve following the steps mentioned earlier, such as verifying source
documents, recognizing the transaction, classifying and categorizing the asset,

65
determining the valuation, capitalizing and recording the asset, assigning a unique
identification code, and maintaining proper documentation and filing.
Accounting process for decreasing fixed asset
The reduction of fixed assets in a company can occur due to the following
reasons:
 Disposal and sale: The company may decide to dispose of or sell fixed assets
that are no longer needed or appropriate for current business operations. This
can include assets that are old, outdated, damaged, or no longer meet the
technical requirements of the production or business activities.
 Internal transfers or relocations: Fixed assets can be reduced when they are
internally transferred or relocated within the company. For example, if a piece of
machinery or equipment is moved from one department to another or from one
location to another, it results in a reduction of the fixed asset value at the
original department or location.
The main reason for the reduction of fixed assets is often through disposal or
sale. These are assets that are deemed old, outdated, damaged, or no longer suitable for
the technical requirements of production and business activities.
2.3.2.4. Accounting for depreciation of tangible assets
Hon Gai Coal Company calculates and allocates depreciation for its fixed assets
in accordance with Decision No. 206/QD-BTC issued by the Minister of Finance. The
enterprise applies straight-line depreciation method to all of its currently used fixed
assets. The depreciation amount is determined based on the original cost of the fixed
assets and their respective useful lives. The depreciation value for each fixed asset is
determined based on the detailed ledger. The useful lives for each type of fixed asset
have been registered by the Hon Gai Coal Company with the VINACOMIN
Depreciation accounting in Hon Gai Coal Company follows the following principles:

66
 Depreciation of fixed assets used for production and business activities is
recorded as an expense in the production and business cost accounts. This includes
assets such as buildings, machinery, equipment, and management tools. Depreciation
of fixed assets that are not yet in use or are no longer needed, awaiting disposal, is
recorded as an expense in other cost accounts.
Special cases such as reserved fixed assets or assets used for social activities
that are not subject to depreciation must follow the current financial policies.
For fixed assets used for public welfare purposes or other non-profit purposes,
depreciation is not recorded as an expense. However, asset wear and tear still need to
be accounted for.
The depreciation method for fixed assets is based on Decision No.
206/2003/QD-TC dated December 12, 2003, issued by the Ministry of Finance. The
straight-line depreciation method is applied.
¿
Average annual depreciation = Cost of ¿ assets Useful life( year )
¿
Average monthly depreciation = Cost of ¿ assets Useful year x 12 month

Documents for recording depreciation of fixed asset

The document used as the basis for recording depreciation of fixed assets is the
"Calculation and Allocation of Fixed Asset Depreciation Table." This table is prepared
at the end of each month.
Based on the fixed asset cards, the fixed asset ledger by unit of use, and the
fixed asset ledger for the entire enterprise, the accounting department prepares the
Calculation and Allocation of Fixed Asset Depreciation Table. The general ledger
account 2141 (Depreciation of Fixed Assets) is also updated.
The Calculation and Allocation of Fixed Asset Depreciation Table is used to
record the depreciation expense for each fixed asset and allocate it to the appropriate
accounts in the general ledger.

67
2.3.2.5. Accounting for repair and maintenance of tangible assets
Hon Gai Coal Company, which produces and trades coal using underground
mining technology, places great importance on regular maintenance and major repairs
of its fixed assets due to the continuous production process.
a. Regular Maintenance of Fixed Assets
For used machinery and equipment, regular minor repairs are carried out to
maintain the normal operation of the assets. The regular maintenance of fixed assets
can be performed by the enterprise's maintenance team or outsourced.
Since regular maintenance work is carried out frequently and has a short
duration, the repair costs incurred are usually not significant. Therefore, the enterprise
does not need to create a separate repair budget. The costs of regular maintenance for
fixed assets are accumulated and allocated to the production and business costs of the
department that owns the repaired assets.
b. Major Repairs of Fixed Assets
Annually, in order to enhance the production capacity of fixed assets, the
enterprise plans for major repairs based on the completed work volume or operating
time. The planning department creates a plan for major repairs along with a cost
estimate. The accounting department sets aside the estimated repair costs in advance
according to the plan to avoid significant fluctuations in production costs between
months.
Major repairs of fixed assets can be carried out by the enterprise itself or
outsourced. Due to the severity of damage, complex repair techniques, long repair
times, and the need to halt the operation of the fixed assets, the costs for major repairs
cannot be fully allocated in a single period as production costs.
Instead, these costs are allocated over the useful life of the repaired assets
through the depreciation process. The accumulated repair costs are included in the
asset's book value and gradually expensed through depreciation over time. This ensures

68
that the costs are spread out and matched with the economic benefits derived from the
repaired assets throughout their useful life.
2.3.3. Features of Accounting for Salary
2.3.3.1. Features of salary at Hon Gai Coal Company
Salary Payment Method
Based on the company's organizational structure, technological processes, and
management requirements, Hon Gai Coal Mining Company pays salaries using the
following methods:
 Time-based salary payment.
 Product-based salary payment.
Salary Calculation Method
 Time-based Salary Payment
This method is mainly applied to calculate salaries for indirect departments with
managerial, technical, or specialized tasks. It calculates salaries based on the working
time at the company.
For the office staff of the company, the salary is determined based on the salary
scales specified in the state's salary regulations, converted to each salary grade.
The salary for an employee is calculated by the accounting department as
follows:
Salary for time-based employees = Basic salary according to the salary grade x
(salary coefficient + coefficient for additional allowances) / number of working days in
the month x actual working days.
Where:
Basic salary: The salary level according to the salary grade.
Salary coefficient: The coefficient applied to the basic salary.
Coefficient for additional allowances: The coefficient applied to additional
allowances.

69
 Number of working days in the month: The total number of working days in the
month.
Actual working days: The number of working days of the employee.
Based on the labor time accounting documents and the time-based salary
payment method applied in Hon Gai Coal Company, along with the necessary
allowances, the salary calculation and payment for employees are conducted.
The salary calculation and payment for employees are based on the attendance
records of each department.
 Salary Calculation for Time-based Payment:
This method is mainly applied to employees involved in direct production at the
company, as per their signed contracts. The company calculates salaries based on the
production of products that meet the technical standards, regardless of incomplete
products.
According to the accounting procedures, based on product confirmation forms
or completed work in each workshop, department managers and team leaders sign
confirmations to calculate salaries for each department.
Based on the total score of the entire workshop as approved in the scoring sheet
and the total product salary of the entire workshop, the value of one point is calculated
using the following formula:
Value of one point = Total product salary of the entire workshop / Total score of the
entire workshop
Leave salary is calculated as follows:
Leave Salary = Minimum Salary Level x Salary coefficient x Number of leave days
Where:
Minimum Salary Level: The minimum salary level set by the company.
Salary coefficient: The coefficient applied to the basic salary.
Number of leave days: The actual number of leave days taken.

70
 Leave salary is calculated by multiplying the minimum salary level, the salary
coefficient, and the number of leave days, divided by 26 (the total number of working
days in a month).
Calculation of Meeting Attendance Salary: Meeting attendance salary is
calculated similarly to leave salary.
Calculation of Holiday Salary: Holiday salary is calculated based on the
company's policies and regulations. Specific details about the calculation method for
holiday salary would need to be provided according to the company's guidelines.
To calculate the responsibility allowance:
Responsibility Allowance = Minimum Salary Level x Responsibility Allowance
Coefficient (applied by the company) x Individual's Responsibility Allowance
Coefficient
The responsibility allowance coefficients determined by the company are as
follows:
 Unit Head: Responsibility Allowance Coefficient is 0.4
 Unit Deputy: Responsibility Allowance Coefficient is 0.3
For salary based on productivity:
Salary based on productivity = Quantity of completed products x Unit price of the
product
The unit price of the product is determined based on the general price list
specified in the standard product price schedule.
In addition to the base salary, the direct labor cost category also includes the
responsibility allowance, meal allowance, bonuses, overtime pay on Sundays and
holidays, etc. All these amounts are added to the base salary and paid to the employees
at the end of the month.
Based on the completed volume of products, ensuring compliance with the
prescribed quality standards, as monitored in the product and job completion

71
confirmation form (Form 06-LDTL), and the unit price of the product specified by Hon
Gai Coal Company, the salary based on productivity is calculated for employees. Since
the salary based on productivity is calculated for the collective workforce, the
accounting department must allocate the salary to each individual employee.
Chart of Accounts
Account 3341 - Salary payment for employees: Reflects the income with a
salary nature that the enterprise has to pay to the employees.
Account 3348 - Other income payment for employees: Reflects other income
without a salary nature, such as subsidies from the Social Insurance Fund, bonuses
deducted from the reward fund, etc., that the enterprise has to pay to the employees.
 Account 338 is detailed into level 2 accounts:
 Account 3381: Pending surplus assets for processing.
 Account 3382: Trade Union funds.
 Account 3383: Social insurance.
 Account 3384: Health insurance.
 Account 3386: Unemployment insurance.
Accounting method: Monthly, based on the salary and bonus payment statement,
classify the salary and bonus into cost of production and business. Create vouchers to
allocate salary and bonus to the appropriate accounts.
Debit 662: Direct payment to production and business units.
Debit 627: Indirect payment to production and business units.
Debit 641: Payment to sales staff.
Debit 642: Payment to management staff of the enterprise.
Credit Account 334: Salary, bonus, allowances, and subsidies with salary
nature that the enterprise has to pay to the employees.
There are also other accounts such as Account 141, Account 138, Account 333,
Account 335, Account 111, Account 112.

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2.3.3.2. Detailed accounting for Salary
Currently, the company is applying the journal voucher recording method, with
a system of appropriate ledgers and accounts in accordance with the state-issued
accounting regulations for salary.
Original Documentations and
allocation tables

List attach bill General Journal Accounting Detail Ledger

General Ledger Accounting Summary Report

Financial Statement

Note:
Daily entries :
Month-end closing entries :
Reconciliation and verification :
Figure 2.9: Accounting process of journal voucher recording method
Source: The Accounting Department of Hon Gai Coal Company
Daily, based on the original vouchers and accounting allocation tables,
transactions are recorded in the journal voucher ledger. The original vouchers, after
being used as a basis for journal voucher entries, are also used to record details in the
subsidiary ledger and accounting cards.

73
 A journal voucher can be opened for one or multiple accounts with the same
economic content. Journal vouchers are sequentially numbered on a daily, monthly, or
yearly basis and must be approved by the chief accountant before being recorded in the
accounting ledger. To record journal voucher entries, the data from the subsidiary
ledger and allocation tables are used. Journal vouchers are opened on a monthly basis,
with the previous month's journal voucher ledger being closed and a new one opened
for the following month. The balance from the previous month is carried forward.
At the end of the month, the total recorded data is summarized once in the
journal voucher. Vouchers that require a listing are recorded in the daily listing, which
is directly entered into the journal voucher. At the end of the month, the journal
voucher ledger for the month must be closed, calculating the total amount of financial
transactions that occurred during the month in the journal voucher ledger. The total
number of debit transactions, credit transactions, and balances of each account in the
general ledger must be calculated.
Reconciliation and verification are necessary to ensure that the data recorded in
the general ledger and the detailed summary (prepared from the subsidiary ledger)
match each other and are used for financial reporting.

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 CHAPTER 3: ASSESSMENT OF ACCOUNTING ORGANIZATION AND
ACCOUNTING SYSTEM AT VINACOMIN – HON GAI COAL COMPANY
3.1. Assessment of accounting organization
In a market economy with state management, Hon Gai Coal Company has
managed to establish itself as a strong enterprise. To achieve these accomplishments,
the company has gradually organized and improved its business management system to
align with the development conditions of the socialist production sector. The company
has proactively invested in-depth, grasped the market, and developed short-term and
long-term production and business strategies to make progress and increase efficiency
in production. In this process, the role of accounting has been crucial.
Faced with challenges and opportunities, Hon Gai Coal Company constantly
improves its work processes and learns valuable lessons to facilitate its development.
These lessons include:
 Fulfilling obligations to the State: The company prioritizes fulfilling its
obligations to the State in terms of regulations, taxation, and reporting. This
ensures compliance with legal requirements and contributes to a positive
relationship with the government.
 Ensuring the well-being of employees: Hon Gai Coal Company prioritizes the
well-being of its employees. This includes providing competitive wages,
benefits, and a conducive working environment. A satisfied and motivated
workforce positively impacts the company's productivity and overall
performance.
 Efficient production and business operations: The company focuses on
improving the efficiency of its production and business operations. This
involves streamlining processes, optimizing resource allocation, and adopting
modern technologies to increase productivity and reduce costs.

75
  Training and selecting competent personnel: The company places importance on
training and selecting personnel with the necessary skills and qualifications to
meet the demands of production and business activities. This ensures that the
accounting work is carried out professionally and effectively.
The accounting department of Hon Gai Coal Company - TKV is highly skilled,
well-organized, disciplined, and responsible in their work. The accounting processes
are tightly controlled and transparent.
During my internship at Hon Gai Coal Company - TKV, I had the opportunity
to learn and experience the practical aspects of accounting work. I received support and
guidance from everyone in the company, combined with the knowledge acquired in
school. From this experience, I have observed the following advantages and
disadvantages of accounting work.
3.1.1. Advantages
The management structure of Hon Gai Coal Company is organized in a rational
manner using an online functional form, clearly defining the functions and
responsibilities of each department and workshop. This ensures centralized and unified
leadership, allowing each unit to exercise their proactive and creative capabilities
without intermediaries, in line with the requirements and characteristics of the
company's business operations.
At Hon Gai Coal Company, numerous economic transactions occur daily. To
serve the accounting work of the company, the accountants, who have university
qualifications, are enthusiastic about their work and assigned tasks that align with their
capabilities. This allows for the utilization of each individual's strengths. Accounting
tasks are carried out in accordance with the current accounting regulations, with the
accounting manager providing guidance and supervision to the accountants. 100% of
the accounting staff are equipped with network-connected computers in their offices,

76
facilitating the verification and reconciliation between accounting tasks and the
compilation of financial reports.
Hon Gai Coal Company applies the account system according to Circular No.
200/2014/TT-BTC dated 22/12/2014, issued by the Ministry of Finance. The company
continually updates its accounting regime, new standards, and regulations issued by the
State.
The typical advantages are as follows:
 Strict management and disciplined organization: The accounting department of
the company is highly skilled and organizes its work in a strict and clear
manner. This ensures the accuracy and reliability of accounting information,
enabling the company to make effective decisions.
 High sense of responsibility: The accounting staff in the company have a strong
sense of responsibility towards their work. This ensures the accuracy and
reliability of accounting information and helps the company comply with
relevant regulations and laws.
 Training and selection of competent personnel: The company invests in training
and selecting accounting staff with the necessary skills and qualifications to
meet the requirements of accounting work. This ensures that accounting tasks
are carried out professionally and efficiently.
 Precise and transparent accounting: The company's accounting processes are
carried out meticulously and transparently. This ensures the accuracy and
transparency of accounting information, providing the company with a
comprehensive view of its financial position.
3.1.2. Disadvantages
 Reliance on input information: Accounting for raw materials and tools depends
on accurate and complete information from other departments. Inaccurate or
incomplete information can lead to accounting errors.

77
  Subjectivity in valuation: Valuing raw materials and tools can be subjective in
certain cases, which may affect accounting results and provide incomplete
information for management decisions.
 External factors: Accounting for raw materials and tools can be influenced by
external factors such as price fluctuations, changes in legal regulations, or
market dynamics. These factors can pose challenges in evaluation and financial
reporting.
Overall, Hon Gai Coal Company has recognized and addressed these advantages
and disadvantages, continuously improving its accounting practices to ensure accuracy
and effectiveness in financial management.
3.2. Recommendations to the organization of accounting at VINACOMIN - Hon
Gai Coal Company
3.2.1. The necessity of improving accounting organization
In today's market economy, characterized by constant fluctuations, the role and
position of accounting information in a business are crucial. Accounting is the most
effective tool for managing, controlling, examining, and calculating the efficiency of a
company's business activities.
In the current competitive environment, where competition among businesses is
increasingly intense, pricing is a critical factor that determines the fate of products as
well as the profitability of a company. As we know, for manufacturing and trading
enterprises, inventory (raw materials, tools, equipment, etc.) is a vital factor that
determines the survival of the business. Proper and accurate accounting of inventory is
one of the factors that ensure the existence and development of the enterprise, allowing
the company to maximize profits and establish its brand in the market.
Hon Gai Coal Company has made significant efforts in managing, utilizing, and
accounting for inventory (raw materials, tools, equipment, etc.). However, there are
still certain limitations that need to be promptly addressed to ensure completeness and

78
accuracy. This will contribute to creating high-quality products that meet the demand
from partners and increase profitability for the company's development. Therefore,
carefully studying measures to improve the organization of inventory management and
accounting at Hon Gai Coal Company is extremely important.
Improvements will help the company overcome weaknesses and leverage
strengths in inventory accounting, enabling the company to operate better in its
business activities. It will also enhance the efficiency and productivity of the
company's accounting department.
3.2.2. Recommendations to the organization of accounting at VINACOMIN – Hon
Gai Coal Company
The company is still employing manual accounting methods, which can slow
down the progress of work. Therefore, it is recommended for the company to adopt
computerized accounting to expedite the recording of economic transactions and
enhance the management of data within the company efficiently.
In today's business environment, most companies have adopted accounting
software in their accounting processes. Therefore, Hon Gai Coal Company should also
embrace this advancement to facilitate the management of economic transactions for
the accounting department and the company's leadership. By improving the accounting
system and implementing computerized accounting methods, the effectiveness of the
work will be enhanced, and the provision and retrieval of accurate information and data
will be more reliable. This will enable the company's leadership to make informed
decisions and develop strategies for higher profitability.
By implementing accounting software, the company can benefit from
streamlined processes, reduced errors, improved data accuracy, and faster access to
financial information. It will also provide a solid foundation for decision-making and
strategic planning, ultimately contributing to the company's success and profitability.
Before implementing accounting software, it is a good idea for the company to
send employees for training and provide them with hands-on experience with the

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accounting software to acquire fundamental knowledge that can be applied effectively
and systematically at the company. Here are some popular accounting software
solutions available today:
 MISA Accounting Software (MISA SME.NET 2012 version):
Designed for small and medium-sized enterprises, MISA SME.NET 2012 aims
to assist businesses in controlling accounting software systems and managing
economic transactions without requiring significant investment or extensive computer
knowledge.
 Accuracy: MISA software calculates data accurately, reducing errors and
providing peace of mind for accountants.
 Security: MISA software has a high level of security and allows for the creation
of independent databases for each operating unit.
 User-friendly interface: The software offers a friendly and easy-to-use interface,
allowing for flexible data updates and compliance with accounting regulations.
 LinkQ Accounting Software:
 Provides a data hierarchy model for the parent company, subsidiaries, and
branches.
 Flexibility and customization: Users can add additional information for tracking
purposes.
 Parallel tracking and accounting for multiple currencies.
 Allows for working on multiple windows simultaneously and quick navigation
to directories or documents.
 Can connect to remote data.
These accounting software solutions are recommended to enhance the
management of material, tools, and equipment accounting at Hon Gai Coal Company.
Additionally, it is advisable for the company to send employees for training to

80
familiarize themselves with the accounting software and ensure its effective and proper
implementation.
 Fast Accounting Software:
Fast Accounting Software is designed for businesses of all sizes, ranging from
small to large enterprises, with a particular focus on large businesses that require
comprehensive management reporting. Here are some notable features of Fast
Accounting Software:
 User-Friendly Interface: Fast Accounting Software offers a friendly and easy-to-
use interface, ensuring that users can navigate the software efficiently and
perform accounting tasks without extensive training or expertise.
 Regular Updates: The software consistently updates its system to incorporate
the latest changes in tax policies, regulations, and decrees issued by the Ministry
of Finance. This ensures that businesses stay compliant with current financial
and accounting standards.
Here are some suggestions that I confidently propose to enhance the accounting
work of Hon Gai Coal Company. I hope that along with improving the accounting
activities and overall business performance, Hon Gai Coal Company will continue to
thrive in the coming years.

81
 CONCLUSION
Hon Gai Coal Company is a subsidiary of the Vietnam National Coal – Mineral
Industry Holding Corporation Limited. As a state-owned economic entity, its mission
is to engage in productive business activities to create employment opportunities,
generate surplus value for society, and contribute to the country's development.
Based on the information and analysis conducted, the following observations
can be made:
Hon Gai Coal Company faces several challenges. It operates a low-reserve coal
mine with relatively low-quality coal. The mining sites are dispersed, and the
transportation infrastructure, primarily consisting of hilly and mountainous roads,
poses difficulties in both extraction and product distribution.
Due to geographical and geological constraints, the mining operations have to
reach increasingly deeper levels, while a significant portion of machinery and
equipment is outdated, leading to inefficient operations that hinder the production
process. Moreover, mining activities are highly dependent on geological structures and
weather conditions, making it particularly challenging during the rainy season.
Despite these challenges, the company has a highly qualified and experienced
management team, as well as a strong technical workforce. Hon Gai Coal Company
has made efforts to overcome difficulties and fulfill its assigned tasks and plans.
To sustain and develop in the current situation, the company must set important
objectives. It needs to employ measures to fully utilize existing resources, leverage
strengths in the production process, improve and upgrade mining technologies,
optimize production organization, rationalize labor allocation, increase revenue,
enhance profitability, and ensure effective product distribution. Encouraging
employees throughout the company to actively participate in labor-intensive production
activities is also crucial.
During my internship at Hon Gai Coal Company, under the guidance of PhD.
Pham Thi Thuy and my colleagues, I had the opportunity to deepen my understanding

82
of accounting and witness firsthand the practical work of an accountant in a business
setting.
Given the limited duration of my internship and the constraints of this report, I
acknowledge that it may have some shortcomings. Therefore, I eagerly anticipate
receiving your contributions and guidance, as well as the input of my colleagues at the
company, to help me complete and improve this report.

83
 REFERENCE
1. Donald, E. K., Jerry, J. W. & Terry, D. W. (2019). ‘Intermediate Accounting
17th Edition’.
2. Helen, M. O., Bruce, W. C., Shives, T. R., Alvin P., & Betty, A., (1993).
‘Construction Materials for Coal Conversion’. Retrieved from
https://www.govinfo.gov/content/pkg/GOVPUB-C13-
8d87a43e8d587a4b581012cf9e24ca3b/pdf/GOVPUB-C13-
8d87a43e8d587a4b581012cf9e24ca3b.pdf.
3. Hon Gai Coal Company (2020). ’65 years of establishment and development’.
4. Ministry of Finance (2001, 2002, 2003, 2005, 2006 & 2007).’ Vietnamese
Public Accounting Standard’.
5. Ministry of Finance (2006). ‘Enterprise Financial Reporting Framework’.
Decision 15/2006/QD-BTC.
6. Ministry of Finance (2013). ‘Circular No. 45/2013/TT-BTC’.
7. Ministry of Finance (2014) ‘Circular No. 200/2014/TT-BTC’.
8. Ray, H. G., Eric, W. N. & Peter, C. B. (2021). ‘Managerial Accounting 17 th
Edition’.
9. Stephen, A. R., Randolph, W. W. & Bradford, D. J. (2013). ‘Fundamentals of
Corporate Finance 10th Edition’.
10. The Accounting Department (2020, 2021 & 2022). ‘Financial Statement of Hon
Gai Coal Company’.
11. The Accounting Department (2023). Documents and Vouchers.
12. TKV Communication (2021). ‘Hon Gai Coal Company: Unity, creativity, and
striving to fulfill the 2021 production and business plan’. Retrieved from
https://vinacomin.vn/tin-tuc/than-hon-gai-doan-ket-sang-tao-thi-dua-hoan-
thanh-ke-hoach-sxkd-nam-2021-202101181654133146.htm.

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 APPENDIX
Appendix 1: Chart of Accounts
Code Description
Class Sub-class
ASSETS
111 Cash on hand
1111 Vietnamese dong
1112 Foreign currencies
1113 Monetary Gold
112 Cash in banks
1121 Vietnamese dong
1122 Foreign currencies
1123 Monetary Gold
113 Cash in transit
1131 Vietnamese dong
1132 Foreign currencies
121 Trading Securities
1211 Shares
1212 Bonds
1218 Securities and other financial instruments
128 Investments held to maturity
1281 Time deposits
1282 Bonds
1283 Loan
1288 Other investments held to maturity
131 Trade Receivables
133 Deductible VAT
1331 Deductible VAT of goods and services
1332 Deductible VAT of fixed assets
136 Internal Receivables
1361 Working capital provided to sub-units
1362 Internal Receivables on foreign exchange diff
1363 Internal Receivables on borrowing cost eligible for
capitalization
1368 Other internal receivables
138 Other receivables
1381 Shortage of assets awaiting resolution
1385 Privatization receivables
1388 Other receivables

85
141 Advances
151 Goods in transit
152 Raw materials
153 Tools & supplies
1531 Tools & supplies
1532 Packaging rotation
1533 Instrument for rent
1534 Equipment & spare parts
154 Work in process
155 Finished products
1551 Finished products
1557 Real estate finished goods
156 Merchandise goods
1561 Purchase costs
1562 Incidental expense
1567 Property Inventories
157 Outward goods on consignment
158 Goods in bonded warehouse
161 Government source expenditure
1611 Previous years expenditure
1612 Current years expenditure
171 Government bonds purchase-resale
211 Tangible fixed assets
2111 Building & structures
2112 Machinery & Equipment
2113 Transportation & transmission vehicles
2114 Office equipment
2115 Perennial trees, working and producing animals
2118 Other tangible fixed assets
212 Financial leased assets
2121 Financial leased tangible assets
2122 Financial leased intangible assets
213 Intangible fixed assets
2131 Land use right
2132 Copyrights
2133 Patents
2134 Trademarks and brand name
2135 Computer Software
2136 License & franchises
2138 Other intangible fixed assets

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214 Depreciation of fixed assets
2141 Depreciation of tangible fixed assets
2142 Depreciation of financial leased assets
2143 Depreciation of intangible fixed assets
2147 Depreciation of Investment properties
217 Investment properties
221 Investment in subsidiaries
222 Investment in Joint venture and associates
228 Other investments
2281 Equity investment in other entity
2288 Other investment
229 Allowance for impairment of assets
2291 Allowance for decline in value of trading securities
2292 Allowance for investment loss in other entity
2293 Allowance for doubtful debt
2294 Inventory reserve
241 Construction in progress
2411 Acquisition of fixed assets
2412 Construction in progress
2413 Extra-ordinary repair of fixed assets
242 Prepaid expenses
243 Deferred tax assets
244 Mortgage, collaterals, and deposits
LIABILITIES
311 Short-term loan
315 Long-term loans due to date
333 Taxes and payable to state budget
3331 Value Added Tax (VAT)
33311 VAT output
33312 VAT for imported goods
3332 Special consumption tax
3333 Import & export duties
3334 Corporate Income Tax
3335 Personal income tax
3336 Natural resources using tax
3337 Land & housing tax, land rental charges
3338 Environment protection tax and other taxes
33381 Environment protection tax
33382 Other taxes
3339 Fee & charge & other payables

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334 Payable to employees
3341 Payable to employees
3348 Payable to other
335 Accrued expenses
336 Internal payables
3361 Internal payables for working capital received
3362 Internal payables for foreign exchange diff
3363 Internal payables for borrowing cost eligible for
capitalization
3368 Other internal payables
337 Progress billings for construction contract
338 Other payables
3381 Surplus of assets awaiting for resolution
3382 Trade Union fees
3383 Social insurance
3384 Health insurance
3385 Privatization payable
3386 Unemployment insurance
3387 Unearned revenue
3388 Others
341 Borrowings and finance lease liabilities
3411 Borrowings
3412 Finance lease liabilities
343 Issued bonds
3431 Ordinary bonds
34311 Par value of bonds
34312 Bond discounts
34313 Bond premiums
3432 Convertible bonds
344 Deposits received
347 Deferred tax liabilities
352 Provisions payables
3521 Product warranty provisions
3522 Construction warranty provisions
3523 Enterprise restricting provisions
3524 Other provisions
353 Bonus and welfare fund
3531 Bonus fund
3532 Welfare fund
3533 Welfare fund used for fixed asset acquisitions

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 3534 Management bonus fund
356 Science and technology development fund
3561 Science and technology development fund
3562 Science and technology development fund used for fixed
asset acquisition
357 Price stabilization fund
OWNER’S EQUITY
411 Owner’s equity
4111 Contributed capital
41111 Ordinary shares with voting rights
41112 Preference shares
4112 Capital surplus
4113 Conversion options on convertible bonds
4118 Other capital
412 Revaluation differences on asset
413 Foreign exchange differences
4131 Exchange rate differences on revaluation of monetary items
denominated in foreign currency
4132 Exchange rate differences in pre-operating period
414 Investment & development funds
417 Enterprise reorganization assistance fund
418 Other equity funds
419 Treasury stocks
421 Undistributed profit after tax
4211 Undistributed profit after tax of previous year
4212 Undistributed profit after tax of current year
441 Capital expenditure funds
461 Government sourced funds
4611 Government sourced funds of previous year
4612 Government sourced funds of current year
466 Non-business funds used for fixed asset acquisitions
REVENUE
511 Revenues
5111 Revenue from sales of merchandises
5112 Revenue from sales of finished goods
5113 Revenue from services rendered
5114 Revenue from government grants
5117 Revenue from investment properties
5118 Other revenue
515 Financial income

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521 Revenue deductions
5211 Sales discounts
5212 Sales allowances
5213 Sales returns
COST OF PRODUCTION & BUSINESS
611 Purchases
6111 Raw material purchases
6112 Goods purchases
621 Direct raw materials costs
622 Direct labor costs
623 Costs of construction machinery
6231 Labor cost
6232 Material cost
6233 Tools and instruments
6234 Depreciation expense
6237 Outside services
6238 Other expenses
627 Production overheads
6271 Factory staff costs
6272 Material cost
6273 Tools and instruments
6274 Fixed asset depreciation
6277 Outside services
6278 Other expenses
631 Production costs
632 Costs of goods sold
635 Financial expenses
641 Selling expenses
6411 Employees costs
6412 Materials and packing materials
6413 Tools and instruments
6414 Fixed asset depreciation
6415 Warranty expenses
6417 Outside services
6418 Other costs
642 General & administration expenses
6421 Employees cost
6422 Office supply expenses
6423 Stationery cost
6424 Fixed asset depreciation

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 6425 Taxes, fees, charges
6426 Provision expenses
6427 Outside services
6428 Other costs
OTHER INCOME
711 Other income
OTHER EXPENSES
811 Other expenses
812 Income tax expenses
8211 Current tax expenses
8212 Deferred tax expenses
INCOME SUMMARY
911 Income Summary

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 Appendix 2: Raw materials list
Item Number Item Name Unit Item Code
Account number Detailed account number
152.1 Auxiliary Materials
152.1.01 Methane Metric ton VL05
152.1.02 Bucket teeth Item VT053
152.1.03 Cement Metric ton VL08
152.1.04 Iron 16 Kilogram VL09
152.1.05 Stainless steel Kilogram VL010
152.1.06 Flexible plastic pipe 442 Meter VL015
152.2 Fuel
152.2.01 Diesel fuel Liter NLN01
152.2.02 Gasoline A90 Liter NLN02
152.2.03 Gasoline A90 Liter NLN03
152.2.04 Cutting oil Liter NLN04
152.3 Spare Parts
152.3.01 Tire Piece PTT05
152.3.02 Bearing Piece PTT06
152.3.03 Piston seal gasket Piece PTT07

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 152.3.04 Conveyor belt Meter VT002
B500x4x10
152.3.05 Stone crusher Square Meter VT010
12,5x12,5mm
152.3.06 Stone sieve mesh 5x5 Sheet VT020
(3x1.53m)
152.3.07 Gear shaft Z12 Piece VT038
152.3.08 Wire mesh screen 33x33 Meter VT039
152.3.06 Screen support pillow Set VT045
block
152.4 Scrap Materials
152.4.01 Screw Piece PL020
152.4.02 Bolt Piece PL021
……………. ………. ………
152.4.03 Brass casting Piece PL030

93
94