CHAPTER 3

Dr211,213
Task 1:
Company X applies deductable VAT method. There were information about FA in company
X in January 2016 as follows (CU: 1.000 VND).
st
0
1. On 1 Jan: Handing over a production equipment to Droduction Department. This
equipment was purchased from the supplier on credit at 500.000, (exclude 10% VAT);
Related transportation expense was paid in cash: 20.000. Related testing expense:
↳> mat knowing Agian-> cho vis2411 I
25.000 (in which, material cost: 15.000, salary payment: 6.000, other expenses: 4.000).
This equipment was funded by capital expenditure fund. Chai xac dink lagi dien:11
Dr2411:25000 tools: 811

I
SUB:500,000 -> Dr 2411 ->
testing exp

UAY:50.000 -> Dr 1332 equipment Cr 152:15.000 -> material cost

salary
Cr 334:6,000
Dr21/(r2411:545.00
->
40T:550,000 -> Cr 331
Cr 111:4,000 - other expense

transportation
1411/
->
Dr Cr 112:20.000
Dr 441/Cr411:500.00 -> funded

st 2412
2. On 1 Jan: Handing over a factory due to self-construction to Production Department
(the self-construction progress was recorded in the same accounting system of the
company A). Historical cost: 2.280.000. This factory was funded by capital

Drain,a
expenditure fund. Estimated useful life: 18 years.
Canz:2.280,000 -
factory
Dr 441/Cr411: 2.280,000 ->
funded

3. Purchasing a production equipment to Droduction Department. HOM No. 02 dated

3/1/2016 with related documents:
- VAT invoice No. 002348 dated 2/1/2016 from the supplier A:
Sub total: 1.200.000 · Dr 2311 (New ding agay timegai 211)
10% VAT: 120.000 > Dr 1332

Total payment: 1.320.000 > Cr 112,331,...

- Debit note No. 10 dated 2/1/2016 from Vietcombank: make payment for transportation
expense: 21.000 (VAT invoice No. 006438 dated 2/1/2016 from the delivery company,
VAT rate: 5%)
- Installment and testing expense were paid in cash: 25.000 (Cash disbursement voucher
No. 007) ↳ Cha o otem vieding win
This equipment was funded by Bank loans from Loan contract No. 34 dated 1/1/2016.
Estimated useful life: 15 years.
 cr1332)
SUB: 20.000 > Dr 2411

vax:1,000, transportation Dra41/Crnn:25.000 -> Install test

TOT:21.000> Cr 112

Dr 21/Cr2411:1.245,000

411
4. HOM No. 03 dated 6/1/2016: Receiving capital investment from Company B: a truck
which was evaluated at 600.000. This truck has been used in Sales Department.
Estimated useful life: 10 years
Dr 21/2r411:600.000

5. HOM No. 04 dated 7/1/2016: Purchasing a computer system on credit for the Director.
According to VAT invoice No. 004793 dated 7/1/2016 from Company C:
Sub total: 48.000 testing wie won)
ding
-> Dr 211 (Khonges install a cho
new

10% VAT: 4.800 -> Dr 1332

Total payment: 52.800 -> Cr 331

Estimated useful life: 5 years.

6. According to Decision No. 01 dated 8/1/2016 of the Director: transfer an investment

chugent217 - 211

property into an office for the southern subsidize. Historical cost: 3.600.000,
accumulated depreciation charge: 1.200.000. Estimated useful life: 12 years.
chesen
chusen
Khan has BDS KH TSCD him hinh ↑SCP hinhiah BAS

Dr2142/Cr2141: 1.200.000 Dr211/Cr212:3.600.000

Required:
1. Make journal entries for above transactions
2. Record the above transactions on Journal
 Dran4/Cre
Task 2:
Company X applies deductable VAT method and perpetual inventory method. There were
information about FA in company X in January 2016 as follows (CU: 1.000 VND).
1. Selling an equipment used in Sales Department to Company Z. VAT invoice No. 001734
dated 01/01/2016: ->
other income

Sub total: 180.000 > Crt11

10% VAT: 18.000 >Cr3331

Total payment: 198.000 Dr 112, 131

>

Historical cost: 360.000, accumulated depreciation charge: 120.000. Estimated useful life: 9
211
years. 2141

expense
~other
Dr811: 240,000 (Phangtr; expenses)
con lai cho vio 811-other

Dr 2141:120,000
Tai saw gtri con lai lai cho
Cr211:360.000 vis 811?

2. Disposing a factory: Liquidation report No. 01 dated 03/01/2016:

- Historical cost: 1.200.000, accumulated depreciation charge: 1.140.000. Estimated useful life:
211 2141
10 years
811
- Related expense: 10.000 (Cash disbursement voucher No. 04 dated 01/01/2016)
711
- Related income from this liquidation: 65.000 (Cash receipt voucher No. 14 dated 03/01/2016)
Dr 811:60.008 Dr 8in/cr 11:10,000
-

Dr 2141:1.140.000

Cr 211:1.200.000 -

Dr nn/cr11: 65,000

O Liquidating a production equipment used in Production Department. Liquidation

3.
211 2141
report No. 02 dated 03/01/2016. Historical cost: 780.000, accumulated depreciation
711
charge: 540.000. Estimated useful life: 13 years. Related income from this liquidation:
200.000 (Cash receipt voucher No. 18 dated 05/01/2016). This equipment was funded
by Bank loans. Remaining loan amount: 78.000. !
Dr 811:240.000 Drn/cr z11:200.00

Dr 2141:540,000

Cr 211:780.000

211
4. Contributing land use right as capital to joint – venture company. Historical cost:
 2141
3.120.000, accumulated depreciation charge: 1.200.000. The Board of this joint
venture company evaluated the value of the land use right: 1.400.000. Estimated
useful life: 20 years. The land use right had been used for Production Department.
·dai t doah
cty lien
Nerdi ban themacho vai 811 <Dr 222:1.400.000

him
x at dang hi
a loDr 811:520.000): 211-2141-222)

D) r 2141:1.200.000
Cr 211:3.120.000 Phaphat they do?
g ding thistekhng dai nes de dich
do
5. Decision No. 05 dated 12/1/2016 of Director: transferring a FA into a tool. Historical
211 2141
cost: 78.000, accumulated depreciation charge: 74.100. Estimated useful life: 10 years.

I
Dr 1531 Inventory
receipt note)
>Prepaid expense
↑ Dr242: 3.900
Dr 2141:24.NO pro who is know
lailhich) Dr 2141:74. No
Cr 211: 78,000
rading cra 18.00
Dr 6xx, 242/2r 211
:aiIam
->
ray paisa gtri con lai
laicho vio 242?

6. HOM No. 30 dated 19/1/2016: contributing a truck as capital to joint – venture

company MK. Historical cost: 840.000, accumulated depreciation charge: 120.000.
The Board of this joint venture company evaluated the value of the truck: 700.000.
Estimated useful life: 7 years.
Dr 222:100.000
Dr 811:20,000

Dr 2141: 120.000
Cr 21:840,000

7. FA inventory report No. 02, dated 31/1/2016, an administrative equipment was missing.
Historical cost: 54.000, accumulated depreciation charge: 7.500. Estimated useful life:
9 years. The missing reason has been under investigation.

Shortage of assets awaiting resolution

Dr 1381:46.550

Dr 2141: 7.500

Cr211:54.000

Required:
- Make journal entries for above transactions
- Record above transactions on Ledger of Account 211 and Account 214.
 Task 3:
Company X applies deductable VAT method and perpetual inventory method. There were
information about major repairs and maintenance of FAs in company X in January 2016 as
follows (CU: 1.000 VND)
1. Make provision for repair expenditures of the fixed assets: 650.000
- For FA used in Production Department: 400.000 -> 627:Production overheads
+ Production Department No.1: 250.000
+ Production Department No.2: 150.000
- For FA used in Sales Department: 100.000 -> 641:Selling expense
- For FA used in Administrative Department: 150.000 -> 642:General administrative expense
DN 628:400.000
Dr 641:w0.00
Dr 642:150.000

Cr,4:650,000
-
con cont
other provision
2. HOM No. 60 for finished repair of FA from Company Z, dated 15/6/2016. This FA was
used in Production Department No.: Extra-ordinary repair of FA:CP sa chia ton
- Sub total: 150.000 -> Dr 2413

- 10% VAT: 15.000 -> Dr 1331

- Total payment: 165.000 Cr 112, 331,...

->

Repair expenses incurred would be capitalized in cost of the FA.

211

Dr 11/Cr 2413: 150,000

3. VAT invoice No. 10234 dated 20/6/2016 from Company M about repainting office:
- Sub total: 60.000 -> Dr 2413

- 10% VAT: 6.000 -> Dr 1331

- Total payment: 66.000 er
12,331,111,...
->

detra
Dr 3524/C2413:60.000-> But his guy disphing
4. VAT invoice No. 13234 25/6/2016 from Company P about decorating and upgrading an
exhibit room:
- Sub total: 120.000 -> Dr 2413

- 10% VAT: 12.000 Dr

->

1331
- Total payment: 132.000 -> Cr 112,331,...
Dr 3524/ 2413:120.000

Required:
- Make journal entries for above transactions
- Record the above transactions on Journal and on Ledger of account 241

Task 4:
T&T company applies deductible VAT method. There were following transactions in T&T
in September 2016 (CU: 1.000 VND):
Opening balance of:
• Acc 211: 6.000.000
• Acc 214: 1.870.000
In Sep 2016, there were several transactions : 211
1. On 10th Sep : Sell a measure equipment. Historical cost: 240.000, accumulated
214
depreciation charge: 80.000, average depreciation rate per year : 12%, selling price
(include 10% VAT) : 132.000. Company received money via bank. 112

Dr 811: 160,000 Dr 112:132.08

Cr 11:120,000
Dr 214:80.000
Cr 211: 240,000
Cr333: 12.000

Cr411
2. On 11th Sep : Receive capital investment from CK company: a truck which was
evaluated at 360.000. This truck has been used in Sales Department. Estimated useful
life: 10 years
Drann/cr41:360,000

3. On 13th Sep: Contribute a production equipment as capital to LD joint – venture

company. Historical cost: 120.000, accumulated depreciation charge: 20.000, average
depreciation rate per year: 10%. The Board of the joint venture company evaluated
 the value of the land use right: 80.000. Dr 222: 80.008
Dr 811:20.000
Quyn SD dat l han
is
Dr 214:20.000
Khong isdepreciation
Cr 211:120,000

0
4. On 15th Sep: Purchase a production machine for Production Department: buying
price: 180.000, VAT: 10%. Company made payment via bank. Installment and testing
expense was paid in cash: 6.000, average depreciation rate per year: 15%. The
machine was funded by capital expenditure fund.
Dr2411:180.000 ~Dr 414/Cr
I
411:186,000- funded
Invoice
Dr 1332:18000

Cr 112: 198,000
>Drain/Cr2411:186,000

Install testing
Dr241:6000

Cr111:6000 cho vio 2412 (construction in progress)

0
5. On 15th Sep: Hand over a administrative office due to self-construction to
Administrative Department (the self-construction progress was recorded in the same
accounting book system of the T&T company). Historical cost: 9.984.000. This factory
was funded by capital expenditure fund. Estimated useful life: 20 years
~Dr 441/Cr411

Dr 211 /2r2412:9.984.000

6. On 15th Sep: Hand over a computer system produced by Dell to Accounting

Department. This computer system was a present, its fair value was: 180.000.
Estimated useful life: 5 years

Dr211/c itwar revenue dui 411

wing thec other
vs

7. On 15th Sep: Liquidate a National air condition used in Sales Department. Historical
cost: 30.600, accumulated depreciation charge: 28.000, average depreciation rate per
year: 10%. Selling price excl 10% VAT: 2.100. Company received money from buyer
in cash
Dr 811:2.600 Drmn:23,100

Dr 214:28.000 cran:21,000
Cr 3331:2100
(r 211:30.600
 Required:
1. Calculate and allocate the depreciation charge in Sep 2016.
Additional information: T&T company applies straight line method for calculating
depreciation charge. There was no changes in FA in August 2016, and depreciation
charge in Aug 2016 as follow:
- For Production Department: 250.000 6274
->

- For Administrative Department: 110.000 -> 6424

- For Sales Department: 40.000 -> 6414

2. Make journal entries for above transactions

Dr 6274:25.00
Dr 6424: 11,000

Dr 6414:40.000

Cr2141:405,088

3. Calculate the total historical cost and total carrying amount of FA at the end of Sep
2016

4. Assumption that there was no changes in FA in October 2016. Calculate and allocate
the depreciation charge in Oct 2016
 ta
gap
Example of purchasing FA in instalment
Company A applies deductable VAT method.
On 1st Feb, 2019: Purchase a FA in instalment. Listed price of this FA (include 10% VAT):
66.000.000. Company A had to paid 7.000.000 cash at bank at the end of each month to the
supplier in 10 monthes, from February to November. This FA was used immediately. This
FA is funded by capital expenditure fund.
When company A acquired this FA:
Dr 211: 60.000.000 Ranchenk Ich 4,000.00 cho Dio Dr 635 (Financial expense)
Dr 133(2): 6.000.000
Dr 242: 4.000.000
->
thing new cho vio 615 themink stang gli when try
a apacha T2,
plan
trong khictocrity
in chi phicied than
to
Cr 331: 70.000.000 Dr 242 expense)
>Cho Die (Prepaid

Dr 441 / Cr 411: 60.000.000

At the end of each month:

Dr 331: 7.000.000
Cr 112: 7.000.000

Dr 635: 4.000.000/10 = 400.000

Cr 242: 400.000

Company A had to paid 10.000.000 immediately by cash on hand, then 6.000.000 cash at
bank at the end of each month to the supplier in 10 monthes, from February to November.
This FA was used immediately. This FA is funded by capital expenditure fund.
When company A acquired this FA:
Dr 211: 60.000.000
Dr 133(2): 6.000.000
Dr 242: 4.000.000
Cr 331: 60.000.000
Cr 111: 10.000.000

Dr 441 / Cr 411: 60.000.000

At the end of each month:

Dr 331: 6.000.000
Cr 112: 6.000.000

Dr 635: 4.000.000/10 = 400.000

 Cr 242: 400.000

Example of acquiring FA in exchange

Company A applies deductable VAT method.
On 1st Feb, 2019: Exchange an equipment for a similar FA of company (Exchange an
equipment for a FA of company B and this transaction had no commercial substance). Cost
of the equipment: 100.000.000, accumulated dep. charge: 30.000.000
=> Dr 211: 100; Cr 214: 30
Dr 211 (acquired FA): 70.000.000
Dr 214: 30.000.000
Cr 211 (equipment): 100.000.000

On 1st Feb, 2019: Exchange an equipment A for an equipment B of company B (this

transaction had commercial substance).
Cost of the equipment A: 100.000.000, accumulated dep. charge: 30.000.000, fair value of
equipment A (exclude 10% VAT): 60.000.000
Cost of the equipment B: 200.000.000, accumulated dep. charge: 60.000.000, fair value of
equipment B (exclude 10% VAT): 150.000.000
Company A paid cash at bank for the difference.
Dr 811: 70.000.000 / 140.000.000
Dr 214: 30.000.000 / 60.000.000
Cr 211 (equipment A): 100.000.000 / 200.000.000

Dr 131 (B): 66.000.000 / 165.000.000

Cr 711: 60.000.000 / 150.000.000
Cr 333: 6.000.000 / 15.000.000

Dr 211 (equipment B): 150.000.000 / equipment A: 60.000.000

Dr 133(2): 15.000.000 / 6.000.000
Cr 131: 165.000.000 / 66.000.000

Dr 131: 99.000.000
Cr 112: 99.000.000

Dr 112/Cr 131(A): 99.000.000