CHAPTER 5: CASH AND RECEIVABLES- vietnamese accounting

1. CASH
1.1. Accounting for cash classification

Cash on hand ( 111)

- is cash at the business, used for payment purpose

- comprises 3 sub-accounts:1111(VND),1112(foreign currency),1113(monetary

gold)

Cash in bank ( 112)

- is amount which is deposited into bank account, used for payment purpose

- comprises 3 sub-accounts: 1121(VND,1122(foreign currency),1123(monetary

gold)

Cash in transit (113)

- occured when the bank has not yet issue confirmation documents to update
fluctuations on the company’s bank account

- comprises 2 sub-accounts: 1131( VND), 1132( foreign currency)

1.2. Accounting for cash documents

Documents for cash receipts=

 Cash receipt: issued by the company, when the cash collection is made on hand
 Bank Credit Note( giấy báo có) : issued by the bank when the cash collection is
made via bank transferred.

Documents for cash disbursement

 Payment voucher: issued by the company, when cash payment is made on hand
 Bank Debit Note: issued by the bank, when cash payment is made on the hand.

In reality, bank credit note and bank debit note are be replace by bank statement, a report
about fluctuation in the company’s bank account

1.3. Accounting for cash:

 Typical transactions

- Dr 111/112

Cr 511/515/711: cash sales / Income

Cr 341: Loans

Cr 411: Capital contribution from owner

Cr 131/138/141/244: Cash receipt from receivables

- Cr 111/ 112

Dr 15*/ 21* :Purchase of asset

Dr 627/641/ 642: payment of expenses

Dr 341/ 331/ 334/ 338:Repayment of loans, payables

Dr 411: capital drawings by owner

Special Case: Disagreement in cash’s account balance

Dr 111/Cr 3381 => asset in surplus awaiting resolution

Dr 1381 / Cr 111 => asset in shortage awaiting resolution

Notes

Cash present on Statement of Financial Position, Cash Flows Statement, Notes to the
Financial Statement

2. Accounting for receivables

- Definition
 Receivables represent a company’s claims to the future collection of cash, other
assets or service.
- Classification
Short-term receivables: receivables which are due within 12 months from the last
recorded date, or within one normal operating cycle of the business, whichever is
longer.
Long- term receivables: receivables which are due more than 12 months from the
last recorded date, or more than one normal operating cycle of the business,
whichever is longer.
At the reporting date, short-term and long-term receivables should be re-classified based
on the remaining terms (from the FS date to the due date)
- Trade receivables Documents : Sales order, sales invoice, goods delivery note,
receipt