Graduation thesis Supervisor: MSC.

Nguyễn Bá Linh

DECLARATION
I hereby declare that the thesis on the topic" Accounting for revenue,
expenses and business result at Viet Nhat Food Joint Stock Company " is
my personal research in recent times. All data used in the analysis of the
thesis and the results of the study are that I self-study and analyze
objectively, honestly, have clear origins and have not been published in any
form. I assume full responsibility for any dishonesty in the information used
in this research work.
Ha Noi, May 25, 2020
Student

Nguyễn Thị Hải Yến

Student: Nguyễn Thị Hải Yến i CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

ACKNOWLEDGEMENT
Through the learning process at Academy of Finance, thanks to the
enthusiastic instruction of the teachers in the academy, especially the teachers
in the Accounting Faculty, I was equipped with the most basic knowledge
about accounting majors. Combined with the internship time at Viet Nhat
Food Joint Stock Company, I had the opportunity to apply the knowledge I
learned to the practice of the job and successfully complete my graduation
thesis.
Because of the abundance and diversity of business as well as limited
internships and awareness, it is inevitable errors and defects in the
implementation of the thesis. I look forward to receiving the comments of the
teachers at Accounting faculty and all of the accounting department at Viet
Nhat Food Joint Stock Company so that my thesis will be better and better.
Thereby, I would like to thank the teachers of the Academy of Finance,
especially supervisor MSC.Nguyen Ba Linh, who kindly guided me to
complete this graduation thesis. I would like to thank the leaders of Viet Nhat
Food Joint Stock Company for their dedicated help, enabling me to complete
the topic during my internship at the company. Lastly, I would like to wish
the AOF’s Teachers, everybody in Viet Nhat Food Joint Stock Company
good health, wish the company a lot of success in business activities!
Thank you sincerely!

Nguyễn Thị Hải Yến

Student: Nguyễn Thị Hải Yến ii CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

TABLE OF CONTENTS
DECLARATION...............................................................................................i
ACKNOWLEDGEMENT................................................................................ii
TABLE OF CONTENTS.................................................................................iii
LIST OF DIAGRAMS.....................................................................................vi
LIST OF TABLES..........................................................................................vii
LIST OF PICTURES.....................................................................................viii
LIST OF ACRONYMS...................................................................................ix
INTRODUCTION.............................................................................................1
CHAPTER 1: GENERAL THEORY OF ACCOUNTING FOR REVENUE,
EXPENSES AND BUSINESS RESULTS IN ENTERPRISES.......................4
1.1. GENERAL THEORY OF REVENUE, EXPENSES AND BUSINESS
RESULTS IN ENTERPRISES.........................................................................4
1.1.1. Importance of accounting for revenue and business result in
Enterprises.........................................................................................................4
1.1.2.The basics of revenue...............................................................................5
1.1.3.The basics of Expenses............................................................................9
1.1.4.The Basics of Business results...............................................................13
1.2.ACCOUNTING FOR REVENUE, EXPENSES AND BUSINESS
RESULTS IN ENTERPRISES.......................................................................16
1.2.1 The accounting principles governing accounting for revenue, expenses
and business results in enterprises...................................................................16
1.2.2. Accounting for Revenue.......................................................................17
1.2.3. Accounting for Expenses......................................................................25
1.2.4. Accounting for Business results............................................................40
1.3. ORGANISATION OF BOOKKEEPING SYSTEMS FOR
REVENURE, EXPENSES AND BUSINESS RESULTS ACCOUNTING. .43
1.3.1. General journal form of bookkeeping...................................................43
1.3.2. Voucher form of bookkeeping..............................................................45
1.3.3. Journal - Ledger form of bookkeeping..................................................47

Student: Nguyễn Thị Hải Yến iii CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

1.3.4. Journal – Vouchers form of bookkeeping.............................................49

1.4.ACCOUNTING FOR REVENUE, EXPENSES AND BUSINESS
RESULTS IN THE APPLICATION OF ACCOUNTING SOFTWARE......51
1.4.1. Principles and requirements for machine accounting organization......51
1.4.2. Steps to perform Accounting for revenue, expenses and business results
on accounting software...................................................................................52
CONCLUSION OF CHAPTER 1...................................................................54
CHAPTER 2: PRACTICAL SITUATION OF ACCOUNTING FOR
REVENUE, EXPENSES AND DETERMINE BUSINESS RESULTS AT
VIET NHAT FOOD JOINT STOCK COMPANY........................................55
2.1. OVERVIEW OF VIET NHAT FOOD JOINT STOCK COMPANY.....55
2.1.1.The foundation and development of Viet Nhat Food joint stock
company..........................................................................................................55
2.1.2. Characteristics of business operation....................................................57
2.1.3. Characteristics of the organizing management mechanism in Viet Nhat
Food JSC.........................................................................................................60
2.1.4. Characteristics of organizing accounting system..................................62
2.2. PRACTICAL SITUATION OF ACCOUNTING FOR REVENUE,
EXPENSES AND BUSINESS RESULTS AT VIET NHAT FOOD JSC.....67
2.2.1. Practical situation of Accounting for Revenue at the company............67
2.2.2. Practical situation of Accounting for Expenses at the company...........78
2.2.3.Accounting for determining business results at Viet Nhat Food JSC....92
2.3. EVALUATION OF ACCOUNTING FOR REVENUE, EXPENSES
AND BUSINESS RESULTS AT THE COMPANY....................................102
2.3.1. Achievements......................................................................................102
2.3.2. Limitations and causes of Limitations................................................103
CONCLUSION OF CHAPTER 2.................................................................105
CHAPTER 3: SOLUTIONS TO IMPROVE ACCOUNTING FOR
REVENUE, EXPENSES AND BUSINESS RESULTS AT VIET NHAT
FOOD JSC....................................................................................................106
3.1. DEVELOPMENT ORIENTATION OF THE COMPANY..................106

Student: Nguyễn Thị Hải Yến iv CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

3.2.REQUIREMENTS FOR IMPROVING ACCOUNTING FOR

REVENUE, EXPENSES AND BUSINESS RESULTS AT VIET NHAT
FOOD JOINT STOCK COMPANY.............................................................107
3.3.SOLUTIONS TO IMPROVE ACCOUNTING FOR REVENUE,
EXPENSES AND BUSINESS RESULTS...................................................108
CONCLUSION OF CHAPTER 3.................................................................112
CONCLUSION.............................................................................................113
REFERENCES..............................................................................................116

Student: Nguyễn Thị Hải Yến v CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

LIST OF DIAGRAMS
Diagram 1: Account 511- Revenues..............................................................18
Diagram 2 - Revenue deduction......................................................................20
Diagram 3 – Acc 515: Financial Incomes......................................................22
Diagram 4 : Account 711- Other income........................................................24
Diagram 5 : Account 632- Costs of goods sold..............................................29
Diagram 6 : Account 6422 - Administrative expenses...................................31
Diagram 7 : Account 6421 – Selling expenses...............................................33
Diagram 8: account 635 – Financial Expenses..............................................35
Diagram 9 : Account 811 - Other expenses...................................................37
Diagram 10: Account 821- Corporate Income tax expenses..........................40
Diagram 11 : Account 911 - Business results determination..........................42
Diagram 12 : Order of bookkeeping in the form of General Journal..............44
Diagram 13: Order of bookkeeping in the form of journal voucher...............46
Diagram 14: Journal - Ledger form of bookkeeping.......................................48
Diagram 15 : Order of bookkeeping in the form of journal - voucher............50
Diagram 16 : The sequence perform in accounting software........................52
Diagram 17 : Process of buying (importing) goods in Viet Nhat Food JSC...58
Diagram 18 : Organizing management mechanism in Viet Nhat Food JSC...60
Diagram 19 : Model of Organize the company's accounting system in Viet
Nhat Food JSC................................................................................................62
Diagram 20 : Model of accounting records in the form of General Journal...65

Student: Nguyễn Thị Hải Yến vi CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

LIST OF TABLES
Table 1: Ledger of account 511- Revenue from sales of goods and services. 73
Table 2: Detailed book of account 511- Revenue from sales of goods and
services............................................................................................................73
Table 3: General journal of account 511 - Revenue from sales of goods and
services............................................................................................................74
Table 4 : Detailed book of account 515 – Financial income...........................76
Table 5 : Ledger of account 515 – Financial income......................................77
Table 6: Detailed book of account 632 – Cost of goods sold.........................80
Table 7 : Ledger of account 632 – Cost of goods sold....................................81
Table 8 : Detailed book account 635 – Fianancial expenses.........................84
Table 9: Ledger account 635 – Fianancial expenses.......................................84
Table 10 : Ledger account 6421 – selling expenses........................................87
Table 11 : Detailed book account 6421 – selling expenses............................87
Table 12 : Ledger account 6422 – Administrative expenses..........................90
Table 13 : Detailed book account 6422 – Administrative expenses...............90
Table 14: Ledger of account 821- Corporate income tax expenses................92
Table 15: Ledger account 511- revenue from sale of goods and services in
2019.................................................................................................................94
Table 16: Ledger account 515- Financial income in 2019..............................95
Table 16: Ledger account 632- Cost of goods sold in 2019...........................96
Table 17: Ledger account 635 - Financial expenses in 2019.........................97
Table 18: Ledger account 6421 – Selling expenses in 2019...........................98
Table 19: Ledger account 6422 – Administrative expenses in 2019..............99
Table 20 – Tranferring to account 911..........................................................100
Table 21: Income Statement at Viet Nhat Food JSC in 2019.......................101

Student: Nguyễn Thị Hải Yến vii CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

LIST OF PICTURES
Picture 1 : MISA accounting software interface.............................................67
Picture 2 : VAT Invoice number 000004........................................................70
Picture 3 : Manipulation on Misa software.....................................................72
Picture 4 : Credit Note from VP Bank 15/03/2019.........................................76
Picture 5 : Delivery notes number HT – 0008358.........................................80
Piture 6 : Debit notes from TP Bank 21/01/2019...........................................83
Picture 7 : VAT Invoice number No. 0005454...............................................86
Picture 8 : Payment from Dien Luc Ha Noi Company 31/03/2019...............89

Student: Nguyễn Thị Hải Yến viii CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

LIST OF ACRONYMS
SJC Joint Stock Company
Acc Account
IASB International Accounting Standards Board
MOF Ministry of Finance
VAS Vietnamese Accounting Standards
IAS International Accounting Standards
COGS Cost of Goods Sold

Student: Nguyễn Thị Hải Yến ix CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

INTRODUCTION
1. The urgency of the research topic
In recent years, it has been a milestone marking the great transformation of
Vietnam's economy. Along with the expansion of the economy, Goverment
have launched many guidelines and policies to develop a multi-sector
economy, expand to exchange and cooperate in the vast economic market.
Especially the event that Vietnam joined the World Trade Organization,
opened up many development opportunities for businesses, but also had many
difficulties and challenges. Before that situation requires businesses to try
their best to survive and develop.
Like other businesses, trading and services enterprises are not only affected
by the law of value but also influenced by the law of supply and demand and
the competition law. When products of enterprises are accepted by the market
means that the value of the product is realized, at this time, the enterprises
will collect amount of money, which is called revenue. If the revenue can
compensate expenses, then the rest is called profit. Any business when
activiting also wants to achieve the maximum profit. Most of the trading and
services enterprises, the revenue is mainly due to process of consuming goods
and service. Therefore, determining business results will play an important
role in determining the performance of enterprises.
Therefore, during the internship at Viet Nhat Food Joint Stock Company, I
chose the topic: "Accounting for revenue, expenses and determine business
results at Viet Nhat Food Joint Stock Company.” to make the graduation
thesis for me.

Student: Nguyễn Thị Hải Yến 1 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

2. Research purpose
The purpose of the research is to study the theory and practice of accounting
for revenue, expenses and determine business results. Specifically, the thesis
studies general theories about accounting for revenue, expenses and
determine business results in trading and services enterprises. Researching
the current situation of accounting for revenue, expenses and determine
business results at Viet Nhat Food Joint Stock Company, analyzing the
objective necessity to improve the accounting organization in general and to
improve accounting for revenue, expenses and determine business results in
particular. Therefore, it provides directions and some necessary solutions to
complete the accounting for revenue, expenses and determine business results
at Viet Nhat Food Joint Stock Company.
3. Research subject and Research scope
- Research subject: Accounting for revenue, expenses and business
results at Viet Nhat Food Joint Stock Company
- Research scope: Accounting for revenue, expenses and business results
from the perspective of financial accounting at Viet Nhat Food Joint
Stock Company in 2019.
4. Research method
4.1. The method of data collection
- Collect primary data: learn about topic through information channels such as
superviso, employees of the accounting department at the company,
internet,...
- Collecting secondary data: researching through textbooks, reference books,
thesis,... writing about accounting for revenue, expenses and business results.
This information mainly serves as an overview of accounting for revenue,
expenses and determine business results at the company.

Student: Nguyễn Thị Hải Yến 2 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

The figures related to the company's production and business activities in

2019 are collected mainly from the Company's financial statements. This
information serves the content of the thesis.
The data is taken from documents, accounting books, financial statements ...
in 2019 of the company.
4.2. Methods of analysis
- Method of analysis: analysis and evaluation, combined with
systematization to be able to fully identify the overall operating situation.
Point out the strengths and weaknesses in determining business results of the
enterprise, thereby assessing the competitiveness of the enterprise in the
present time and future development directions.
- Method of synthesis: linking all elements, aspects, parts, relationships of
information collected into a whole to make a correct, complete and insightful
conclusion about the topic.
5. The structure of the thesis
Apart from the introduction, conclusion, diagrams and list of references The
thesis is also structured into 3 chapters:
Chapter 1: General theory of accounting for revenue, expenses and business
results in enterprises.
Chapter 2: Practical situation of accounting for revenue, expenses and
business results at Viet Nhat Food Joint Stock Company.
Chapter 3: Solutions to improve accounting for revenue, expenses and
business results at Viet Nhat Food Joint Stock Company
I sincerely thank MSC. Nguyen Ba Linh and the board of directors,
employees of the company have kindly guided and helped me complete this
thesis. Due to limited time, the thesis cannot avoid shortcomings and defects.
We hope to receive the advice, suggestions from teachers to improve the
thesis.
Thank you sincerely!

Student: Nguyễn Thị Hải Yến 3 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

CHAPTER 1: GENERAL THEORY OF ACCOUNTING FOR

REVENUE, EXPENSES AND BUSINESS RESULTS IN
ENTERPRISES
1.1. GENERAL THEORY OF REVENUE, EXPENSES AND
BUSINESS RESULTS IN ENTERPRISES
1.1.1. Importance of accounting for revenue and business result in
Enterprises.
In the current market economy, the problem that businesses are always
interested in is how to operate their business most effectively (maximize
profits and minimize costs). Factors that are directly related to determining a
company's profit are revenue, income and expenses. Therefore, the
organization of accounting work on revenues, costs and business results is
extremely important. Accounting revenue, costs and business results
determination is not only necessary for business executives but also
important for other subjects in the national economy.
+ For investors: Accounting revenue, expenses and determining business
results is the basis for investors to evaluate the production and business
efficiency of each enterprise from which to make investment decisions.
reasonable.
+ For financial intermediaries such as banks, financial leasing companies,
accounting of revenues, expenses and determining business results is a
prerequisite for them to conduct evaluation and assessment of the situation.
Corporate finance to make decisions about how much and how long.
+ For macro-economic management agencies: Accounting of turnover,
expenses and determination of business results help the State policymakers to
synthesize and analyze data. and provide the necessary parameters to enable
the government to regulate the economy at a macro level, to determine the

Student: Nguyễn Thị Hải Yến 4 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

correct amount of corporate income tax that enterprises have to pay to the
State.
1.1.2. The basics of revenue
1.1.2.1. Definition of Revenue
Currently, there are many views and interpretations of revenue, below the
thesis will give some concepts about revenue.
According to the international accounting standard IAS18 defines Revenue as
"the gross inflow of economic benefits during the period arising in the course
of the ordinary activities of an entity when those inflows result in increases in
equity, other than increases relating to contributions from equity participants".
According to Article 78 Circular No. 200/2014/TT-BTC dated December 22,
2014, on guidelines for accounting policies for enterprises "Revenue is an
economic benefit gained from increasing the equity of the enterprise except
for the additional contribution of shareholders. Revenue is recognized at the
time the transaction arises, when it is certain that economic benefits will be
received, determined by the fair value of the amounts received, regardless of
whether payment has been made or will be collected ".
We can simply understand that the turnover of a service enterprise is the total
amount of money and receivables from goods and services provided to
customers during that period. However, not all operations that increase money
and other assets are related to increased revenue and revenue is not the only
factor that changes the equity of the business.
For service-providing enterprises, revenue arises from various activities,
including: revenue from sales and services; revenue from financial activities;
other revenue.
In fact, there are many concepts of revenue, but in essence, revenue is the
total benefit arising from production and business activities that enterprises

Student: Nguyễn Thị Hải Yến 5 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

have earned in the accounting period. The recognition of the nature of the
revenue and the correct determination of the scope, time and basis of revenue
recognition is decisive to the objectivity and truthfulness of the turnover
criteria in the financial statements, which contribute to gain advantage in
business decisions of enterprises in general and service enterprises in
particular.
1.1.2.2. Classification of Revenue
To manage revenue well, businesses can conduct revenue classification in the
following ways:
 Classify revenue according to relationship with business
organization system.
Classified by this criterion, revenue includes two types: internal sales revenue
and external sales revenue.
- Internal sales revenue is the economic benefit gained from the sale of goods,
products, and provision of internal services among affiliated units within the
same company or corporation based on the internal selling price.
- External Sales revenue is the economic benefits derived from the sale of
goods, products, providing services to customers outside the enterprise's
scope.
If an enterprise chooses to classify revenue according to this criterion, it will
accurately determine the business results of the enterprise, thereby making
accurate decisions in the selection of business plans.
 Classify revenue according to geographic area
According to this criterion, enterprise's revenue includes:
Domestic revenue: is the revenue from sales and service provision in the
country.

Student: Nguyễn Thị Hải Yến 6 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

International revenue: is the revenue from sales and service provision arising
abroad.
The classification by this criterion helps administrators determine the level of
activity by geographic area, is the basis for assessing profitability as well as
business risks of each region, on which the managers have the reasonable
business solutions and options. Classification according to this criterion will
also provide data for the preparation of partial financial statements of each
enterprise.
 Classify revenue according to their sources
- Revenue from sales and services: is the total amount of receivables arising
in the period from the sale of goods and provision of services of the
enterprise. For enterprises that provide public services, the revenue includes
the State subsidies for enterprises when they provide services according to the
tasks assigned by the State without sufficient revenue recovery.
- Revenue from financial activities is the revenue from interests, royalties,
dividends, divided profits and other financial activities revenues considered to
be performed in the period, including:
 Interest: Loan interest; interest on bank deposits; deferred sales interest;
installment; interest on investment in bonds, treasury bills; payment
discount enjoyed by payment of goods before the due date;
 Dividends and profits shared;
 Income from short-term and long-term securities purchase and sale
activities;
 Income from other investment activities;
 Interest of exchange rate;
 Differences due to sale of foreign currencies;
 Difference of capital transfer interest;

Student: Nguyễn Thị Hải Yến 7 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

 Revenues from other financial activities

- Other income: is the income that contributes to the increase in owner's
equity from activities other than the activities that generate revenue of the
enterprise.
 Classify revenue according to sales method
According to this expenditure, enterprise's revenue is divided into the
following categories:
-Wholesale Revenue is the whole turnover of the volume of products,
goods ... sold to other agencies and units for the purpose of continuing to sell
or process production.
- Retail revenue is the total turnover of products and goods sold to other
agencies, units and individuals for consumption purposes.
- Revenue from agency sales is the whole turnover of goods consigned under
agents under signed contracts.
By classifying revenue according to this criterion, it will help businesses
determine the total consumption of products of each type, thereby planning
the rotation of goods and building the necessary stock of goods, avoiding be
stagnant or lack of goods that cause bad effects on the business process of the
business.
1.1.2.3. Revenue Recognition
 Specific rules for recognition of revenue from sales of goods (VAS 14):
- The entity has transferred to the buyer the significant risks and rewards
of ownership of the goods;
- The entity retains neither continuing managerial involvement to the
degree usually associated with ownership nor effective control over the
goods sold;
- The amount of revenue can be measured reliably;

Student: Nguyễn Thị Hải Yến 8 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

- It is probable that the economic benefits associated with the transaction

will flow to the entity; and
- The costs incurred or to be incurred in respect of the transaction can be
measured reliably.
 Specific rules for recognition of revenue from service provision:
- Turnover is determined with relative certainty;
- It is possible to obtain economic benefits from the service provision
transaction;
- The work volume finished on the date of making accounting balance
sheet can be determined;
- The costs in curred from the service provision transaction and the costs
of its completion can be determined.

1.1.2.4 Revenue Deductions

Trade discount is the amount of money that enterprise credited or paid to
customers who bought goods and services in large volume in accordance with
the agreement that the seller will give trade discount to the buyer.
Sales returns is the amount of goods sold which have subsequently been
returned due to the following reasons: breaching the commitment or the
economic contract, or in a wrong quantity, quality or specifications.
Sales allowance is a reduction made when the goods are not the same
specification as those mentioned in the economic contract.
1.1.3. The basics of Expenses
1.1.3.1. Definitions of Expenses
The principal economic activity of a service enterprise is the purchase and
sale of goods in order to make a profit and fulfill its other socio-economic
goals. To accomplish its goals, enterprises have to spend certain expenses.

Student: Nguyễn Thị Hải Yến 9 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Expenses are incurred day by day, hour by hour at all different stages of the
business process of the enterprise in a certain period. Business expenses of an
enterprise are expressed as a individual labor expense in a certain period,
which is the basis for determining the amount to offset the income of the
enterprise in that period. Therefore, business administrators must base on the
business characteristics of the enterprises to take measures to manage
business expenses appropriately, specifically for each expense item.
Thus, from an enterprise's perspective, it can be seen that the business
expenses of a service enterprise are all the expenses that an enterprise pays to
fulfill its economic objectives in a certain period.
There are many different views and approaches to expenses, according to
IASB- International Accounting Standards Board “Expenses are recognised
when a decrease in future economic benefits related to a decrease in an asset
or an increase of a liability has arisen that can be measured reliably.” This
means, in effect, that recognition of expenses occurs simultaneously with the
recognition of an increase in liabilities or a decrease in assets (for example,
the accrual of employee entitlements or the depreciation of equipment).
According to the Circular 200/2014 / TT-BTC 22 December 2014 of the
MOF on corporate accounting regime:
“Expenses are those that reduce the economic benefits, recognized at the time
the transaction arises or when there is a relative certainty that they will arise
in the future regardless of whether or not money has been spent.”
According to VAS 01 - General Standard: “Expenses are the total value of the
amounts that reduce economic benefits in the accounting period in the form of
payments, asset deductions or liabilities resulting in decreasing equity
excluding distribution to shareholders or owners.”

Student: Nguyễn Thị Hải Yến 10 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

1.1.3.2. Classification of Expenses

 Classification of expenses according to the input fators of the
enterprise's production and business process
For the purpose of gathering and managing production and business expenses
according to its original economic content, without considering specific
utilities, arising locations, expenses are divided by factors. According to
current regulations in our country, the total cost of production and business of
an enterprise is divided into the following factors:
- Material Cost: includes all costs of employees such as main materials,
auxiliary materials, fuels, replacement parts, basic construction equipment,...
- Labor Cost: including all salaries, allowances and wages payable qưmk of
all staff in the enterprise. This type of expense can be divided into two
factors: (social insurance, health insurance, unemployment insurance, trade
union fees,...)
- Depreciation of fixed assets: include the amount of depreciation in the
period of all fixed assets in the enterprise.
- Cost of outside services: include the costs of outside services, outsource
services for the operation of enterprises such as electricity, water,
telecommunications and overhaul of fixed assets, ...
- Other expenses in cash: include expenses that are paid in cash without
regularity, such as receptions, other expenses ...
 Classification of expenses according to activities and economic uses.
Based on the purpose of each activity and economic use, expenses are divided
into two categories: Ordinary production and business expenses and other
expenses.
* Ordinary production and business expenses include:

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

+ Cost of goods sold (COGS): reflects the actual value of goods sold in the
period. COGS measures the "direct cost" dramatically in the production of
any goods or services. It includes material cost, direct labor cost, and direct
factory overheads, and is directly proportional to revenue. As revenue
increases, more resources are required to produce the goods or service. COGS
is often the second line item appearing on the income statement, coming right
after sales revenue. COGS is deducted from revenue to find gross profit.
Cost of goods sold consists of all the costs associated with producing the
goods or providing the services offered by the company. For goods, these
costs may include the variable costs involved in manufacturing products, such
as raw materials and labor. They may also include fixed costs, such as factory
overhead, storage costs, and depending on the relevant accounting policies,
sometimes depreciation expense.
COGS does not include general selling expenses, such as management
salaries and advertising expense. These costs will fall below the gross profit
line under the selling, general and administrative (SG&A) expense section.
+ Selling expenses: are part of the operating expenses (along with
administrative expenses). Selling expenses include sales commissions,
advertising, promotional materials distributed, rent of the sales showroom,
rent of the sales offices, salaries and fringe benefits of sales personnel,
utilities and telephone usage in the sales department, etc.
+ General and Administrative Expenses: are referred to as the overhead of the
company. These are the costs a company must incur to open the doors each
day. G&A expenses are incurred in the day-to-day operations of a business
and may not be directly tied to any specific function or department within the
company. They are more fixed than selling costs because they include rent or
mortgage on buildings, utilities, and insurance. G&A costs also include

Student: Nguyễn Thị Hải Yến 12 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

salaries of personnel in certain departments, other than those related to sales

or production.
+ Expenses for financial activities: include expenses or losses related to
financial investment activities, loan expenses, borrowing costs, capital
contribution expenses of joint ventures, loss of securities transfer. short-term,
securities trading costs, provisions and reversal of provision for devaluation
of securities investment, other investments, foreign exchange losses and
selling foreign currencies ...
+ Other expenses: reflecting expenses of activities other than production and
business activities generating turnover of enterprises. Other expenses include
expenses (or losses) arising from events or operations that are separate from
the normal operation of the business and the corporate income tax; It can also
be the expenses that are omitted from the previous years such as: reception
expenses, customer conferences, advertising expenses, product introduction.
1.1.4. The Basics of Business results
1.1.4.1. Definition of Business results
Business results are the final results of business activities of enterprises in a
certain accounting period, or business results are expressed in cash the
difference between the total revenue and the total cost of economic activities
carried out. Business results are expressed as profit (if turnover is greater than
cost) or loss (if turnover is less than cost).
It can be said that accounting for business results is a necessary condition for
assessing the business results of a business in a certain accounting period,
which is the basis for assessing the evaluation of business operation of service
enterprises. Accounting of business results is important, it helps businesses
can analyze and evaluate their business results really effectively, Information

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

about business results provided by accountants will help managers take

effective measures to bring increasing profits to businesses.
1.1.4.2. Classification of business results
 According to the reflection of financial accounting
Business results of enterprises are classified as follows:
+ Business results from production and business activities: are
activities in the field of production and services related to the
consumption of products, goods and services. These are the main
activities that businesses must spend most of the facilities,
techniques and people to conduct, and this activity also generates
major revenue for the business. Results of production and business
activities are the difference between net revenue and cost of goods
sold (including products, goods, investment properties and services)
and selling expenses, Administrative expenses.
+ Financial investment activities results: financial investment
activities are capital investment activities in other enterprises with
the purpose of making profits: short-term securities investment,
investment in subsidiaries, Investment in joint-venture, Joint venture
capital contribution... The result of financial investment is the
difference between financial income and financial expenses.
+ Other operating results: are the results of irregular transactions or
unforeseen business such as liquidation, transfer of fixed assets,
damaged assets ... Other operating results are the difference between
other revenues and other expenses
 According to the reflection of the management accounting

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

In oder to serve the purpose of tracking business results according to

each business activity quickly and accurately, the business results
can be classified according to:
+ Classification of business results by each type of product or each
group of products:
In order to classify business results according to each type of
product or each group of products, right from the stage of cost
collection, enterprises must gather expenses according to each type
of product or each group of products. On that basis, the enterprise
will determine its business results by type of product or group of
products it produces in the period. According to this classification,
will help businesses know the profit (loss) by each type of product
or product group. On that basis, business managers will have the
most accurate choice of production and business plans of the
enterprise.
+ Classification of business results by department, workshop:
In this way, the enterprise tracks business results by department or
workshop workshop according to management characteristics. To
determine, businesses must collect costs for each department and
workshop. On that basis, businesses will determine the business
results by each department and workshop. This classification will
help managers assess the production efficiency of each department
and workshop, from which businesses will have timely solutions to
improve the production and business efficiency of enterprise.
1.1.4.3. Principles for determining business results
(a) Business results used to identify and record results of operating
activity and other activities during an account year. Results of operating

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

activities of business include: Results of operating activities, results of

financial activities and of other activities.
- Results of operating activities is differential between net sales and cost
of goods sold (including products, goods, investment properties and
services, costs of construction products, costs relating to investment
property business activities, such as: depreciation expenses, costs of
repairs and upgrading, operating lease expenses, expenses of liquidating
and liquidating investment property), selling expenses and General
administration expenses.
- Results of financial activities is differential between revenues and
expenses from financial activities
- Results of other activities are differential between Other Income and
other expenses, and income tax expenses.
b) This account must record completely and exactly results of business
activities in account period. Results of business activities must be applied
of detailed accounting corresponding to every kind of activity (activities
of production, processing, trade and commerce, services, finance...). In
each type of business activity, detailed accounting for every kind of
products, industries, services can be necessarily applied.
c) Sales and income items which are posted in this account are net sales
and net income
1.2. ACCOUNTING FOR REVENUE, EXPENSES AND BUSINESS
RESULTS IN ENTERPRISES
1.2.1 The accounting principles governing accounting for revenue,
expenses and business results in enterprises
The accrual basis

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

According to this principle, all economic and financial operations of an

enterprise related to assets, liabilities, equity, revenues and expenses
must be recorded in accounting books at the time they arise, do not
based on actual collection time or actual payment or cash equivalent.
The financial statements are prepared on an accrual basis reflect the
financial position of the enterprise in the past, present and future.
Matching concept
According to this principle, Revenue earned should be matched with
the corresponding cost/expenditure incurred to generate this income.
Prudence Concept
Prudence means to be cautious when exercising judgement. In
particular, profits should not be recognized until realized, but a loss
should be recognized as soon as it is foreseen
Materiality concept
Information is considered material in the event that the lack of
information or inaccuracy of such information can significantly distort
financial statements, affecting economic decisions of users financial
statements. Materiality depends on the magnitude and nature of the
information or errors assessed in the particular situation. Materiality
must be considered both quantitatively and qualitatively.
1.2.2. Accounting for Revenue
1.2.2.1. Accounting for revenue from sales of goods and services.
 Accounting documents used
- VAT invoice or commercial invoice
- Other documents which relating to providing goods or rendering
services.
 Accounting account used

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Account 511- Revenue to record revenue from sale of products, goods and
supplying of services in the accounting periods. This account has some sub-
account:
-Account 5111- Goods sale: to record sales and net revenue of goods those
have been sold during the period;
- Account 5112- Finished product sale: to record sales and net sales revenue
of products (finished goods, unfinished goods) self manufactured by the
business; which have been sold during the period ;
- Account 5113- Service sale: to record revenue and net revenue from services
which provided to customers those have been sold during the period.
- Account 5118- Other revenue
 Accounting entries for account 511
- The accounting book is used to present revenue of sale of goods and
services is ledger of account 511
Diagram 1: Account 511- Revenues

(1) Revenue from sales of goods and services

(1b) Payable taxes when selling goods and providing services

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

(2) Transfer revenue to account 911

(3) Revenue deduction
1.2.2.2. Accounting for revenue deductions
The amount of sales generated by a company after the deduction of
returns, allowances for damaged or missing goods and any trade
discounts allowed. The sales reported on a company’s financial
statements is a net sales number, reflecting these deductions.
Trade discount: Trade discount is the amount of money that enterprise
credited or paid to customers who bought goods and services in large
volume in accordance who bought goods and services in large volume in
accordance with the agree ment that the seller will give trade discount to
the buyer. Trade discount that involves a reduction from list price.
Ultimately, the purchaser is responsible for the invoice price, that is, the
list prices less the applicable trade discount. To the international
accounting rules, Trade discounts are not entered in the accounting
records. They are not considered to be a part of the sale because the
exchange agreement was based on the reduced price.
Sales Returns and sales allowances:
Sales returns and sales allowances are technically two distinct types of
transaction, they are generally recorded in the different account.
Sales return occur when customers return defective, damaged, or
otherwise undesirable products to seller. Sales allowances occur when
customer agree to keep such merchandise in return for a reduction in the
selling price.
When a customer returns goods, the seller may give a cash refunds and
credit notes. A credits note reduces the amount owed by the customer.

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Cash refunds and credit notes are recorded as sale return or sale
allowances on the books of the seller.
 Accounting documents used
- Sales allowance minutes
- Payment slip
- Debt notices
- Other original documents ...
 Accounting account used
According to Circular 133/2016/TT-BTC, Revenue deductions are
recorded directly in the Debit side of account 511
The accounting book is used to present revenue deduction is the arising
of debit side in ledger of account 511.

Diagram 2 - Revenue deduction

1.2.2.3. Accounting for financial income

Financial income includes economic benefits gained by the business from
financial activities during the accounting period.
As regulated by VAS No 14, financial income will be recognized if it is
probable that the business will gain economic benefits from the transaction
and the income can be reliably measured.

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Financial incomes consist of: Interest incomes such as: loan interest, deposit
interest; Capital gain from disposing financial investments; Distributed
dividend and profit; Gain from foreign exchange difference; Cash discount
(Discount received); Other financial incomes.
• Accounting documents used
- Debit note
- Receipts and vouchers
- Other original documents related
• Accounting Account used
Under Vietnamese accounting system uses account 515- Financial revenue is
used to record financial revenue incurred during the accounting period.
• Accounting entries

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Diagram 3 – Acc 515: Financial Incomes

(1) Transfer of revenue from financial activities

(2) Dividends and profits are divided after the first day
(3) Payment discount is enjoyed
(4a) Selling foreign currencies
(4b) Interest in selling foreign currencies

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

(5a) Assigning and recovering financial investments

(5b) Interest on selling investments
(6a) Purchase of supplies, goods, assets and services in foreign currency
(6b) Exchange rate gains
(7) Gradual allocation of interest due to sales on deferred or interest payments
(8) Exchange rate gains due to the revaluation of foreign currency balances at
the end of the period.
1.2.2.4. Accounting for other incomes
Other income is income other than sale income of the enterprise arising in
the accounting period.
Other income includes: Proceed of disposal of fixed asset; Gains from the
revaluation materials, goods and fixed asset that are used to contribute or
invest into associates or other long-term investment; Gains from contract
compensation by the customers; Tax refund from the State Budget; Account
unidentifiable as to whom they are payable; Sale-related tips or awards( if
any offered by suppliers which are not included in sales); Gifts or donations
in cash or in kind by organizations and individuals; Other incomes
 Accounting documents used
- Invoice
- Minutes of liquidation.
- Receipts and other original documents.
- Economic contracts.
 Accounting account used
Under Vietnamese accounting system, account 711- other
income is used to record other income incurred during the
accounting period.
 Accounting entries

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

- The accounting book is used to present other revenue and other

expensesare ledger of account 711.
Diagram 4 : Account 711- Other income

(1) Collecting penalties for customers who breach contracts and insurance
organizations
(2) Obtaining bad receivables that have been written off
(3) Penalties deducted from deposits and bets
(4) Receiving grants, donating materials, goods and fixed assets
(5) Taking into account other income liabilities cannot be determined
(6) Reduced import and export taxes, excise taxes, and environmental
protection taxes

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

(7) Value of donated goods and services (without conditions for purchasing
or using other goods and services)
(8) Transfer other income into account 911
1.2.3. Accounting for expenses
1.2.3.1. Accounting for Cost of good sold
According to VAS 2- Inventory, cost of goods sold can be calculated by the
flowing methods:
- Specific identification method
The method based on the nominal price is applied based on the actual value
of each item purchased, each product produced should only apply to
businesses with few items or stable and received items. can.
Under this method, products, supplies and goods in stock of any imported lot
shall be taken into account for the unit price of warehousing of such goods for
calculation.
Advantages: This is the best option, it adheres to the principle of accounting
appropriateness, the actual cost is consistent with the actual revenue. The
value of inventory is sold in accordance with the revenue it generates: The
value of inventory is reflected in its actual value.
Disadvantages: The application of this method requires strict conditions only
businesses with few types of goods, large value inventories, stable goods and
new types of inventory are new This method can be applied: For businesses
with many types of goods, this method cannot be applied.
-Weighted average method
• According to the weighted average price at the end of the period
This method is suitable for businesses with few types of goods but the
number of times to import and export goods is much, based on the actual

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

price, the beginning of the period to calculate the average price of a product
unit goods.
Average unit Actual value at the beginning of the period + Value
price for the of imported goods in the period
=
w h o le re se rv e T h e a m o u n t o f th e b e g in n in g p e rio d + th e a m o u n t
p e rio d e n te re d in th e p e rio d

According to this method, by the end of the period, the capital value of the
goods exported in the period is calculated. Depending on the reserve period of
the enterprise, inventory accounting is based on the input price, the amount of
inventory at the beginning of the period and in the period to calculate the
average unit price:
Advantages: Simple, easy to do, only need to calculate once at the end of the
period.
Disadvantages: Accuracy is not high, moreover, calculation at the end of the
month affects the progress of other parts. In addition, this method has not met
the timely requirements of accounting information at the time of the
operation.
• According to the weighted average price after each entry (average
time, instant)
After each entry of products, supplies and goods, the accountant must
redefine the real value of the inventory and the average unit price. The
average unit price is calculated by the following formula:
A v e ra g e u n it Actual value after each entry
price after =
Number of inventory after each entry
each entry

Advantages: This method overcomes the disadvantages of the above method,

both accurate and constantly updated.

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Disadvantages: This method takes a lot of effort, calculating many times.

Therefore, this method is applied in enterprises with few categories of
inventories, with low volume of import and export.
- First-in, First- out method
First-in, first-out method is based on the assumption that the value of
purchased or pre-manufactured inventory is exported first, and the remaining
inventory value is the value of purchased inventory or production near the
end of the period.
According to this method, the value of ex-warehoused goods is calculated
according to the price of warehoused goods at the beginning or near the
beginning of the period, the value of the end-of-period inventory is calculated
according to the price of warehoused goods at the end of the period. or near
the end of the remaining period.
This method is appropriate in case the price is stable or tends to decrease.
Often business enterprises on drugs, cosmetics ...
Advantages: It is possible to calculate the value of goods exported from time
to time, thus ensuring timely data provision for accountants to record the next
steps as well as for management. The capital value of inventory will be
relatively close to the market price of that item. Therefore, the inventory
index on accounting reports is more realistic.
Disadvantages: Make current revenue unsuitable with current expenses.
According to this method, the current revenue is generated by the value of
products, supplies and goods that have been obtained for a long time. At the
same time, if the quantity and types of goods are high, the import and export
will continue to lead to the cost of accounting as well as the workload will
greatly increase.

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

- In case of periodic inventory system, cost of finished goods and

merchandise goods sold is determined at the closing of the period basing on
the physical inventory count result and calculation of finished goods and
merchandise goods left at the end of the period.

Cost of goods Cost of goods C ost of goods

C ost of goods
left at the increased left at the
sold during the = + -
opening of the d u rin g th e closing of the
p e rio d period period p e rio d .

Vietnamese accounting system has some accounts relates to accounting for

the cost of goods sold, including:
Account 155- Finished goods
Account 156- Merchandise goods
Account 157- Goods on consignment
Account 632- Cost of goods sold.
 Accounting documents used
-Inventory issue note
-Other documents which relating to rendering of services.
 Accounting account used
- Account 632 – “Cost of goods sold”. This account is used to record the
cost of goods sold and services.
 Accounting entries for 632 - COGS
The accounting book is used to present Cost of goods sold is
ledger of account 632

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Diagram 5 : Account 632- Costs of goods sold

(1) The capital value of products, goods and services sold

(2) Loss of inventory is included in cost of goods sold
(3) Only the general production cost exceeds the normal level,
which is included in the price of the goods sold
(4) Transfer of cost of goods sold and expenses when
determining business results
(5) Returned goods are in stock
(6) Refund of inventory reduction
(7) Provision for devaluation of inventories

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

1.2.3.2. Accounting for business management expenses

a) Accounting for Administrative expenses
Administrative expenses are operating expenses not directly associated with
the sale of goods. They include non sales personnel salaries, supplies, and
other operating costs necessary to the overall administration of the business.
Administrative expenses are commonly considered “overhead” expenses, and
include rent, utilities, telephone, travel and supplies. Repairs and
improvement expenses incurred for either equipment or property may also be
deducted as an expenses. However, this is only for expenses to maintain
property or equipment such as roof repairs, repainting and other maintenance.
Major overhauls of equipment or maintenance that extend the life of the asset
must be capitalized( that is, depreciated over the asset’s useful life and not
deducted from income as an expense).
 Accounting documents used
- VAT invoice.
- Payment slip.
- Advance payment list.
- Timesheets
- Payroll
- Payment table
- Labor contract
- Regulations
- Timesheet overtime
- Overtime pay table
- Timesheet overtime
- Other related document
 Accounting account used

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

According to Circular 133/2016/TT-BTC, Account 6422 – “Administrative

expense” is used to record the Administrative expenses incurred during the
accounting period. Accounting entries to record any Administrative Expenses
incurred for the period.
 Accounting entries for
Diagram 6 : Account 6422 - Administrative expenses

(2) Amounts to reduce business management costs

(3) Transferring business management costs

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

(4) Refunding the difference between the provision for doubtful debts
which have not been used in the previous year is greater than the
amount set up this year.
(5) Refund of provisions must be paid for warranty of products and goods
(6) Material, tool cost
(7) Salary and salary deductions
(8) Depreciation of fixed assets
(9) Prepaid expenses
(10) Allowances for contract repayment has great risks, other payable
provisions
(11) Allowances for doubtful debts
(12) Cost of outside service purchased
11a. VAT
11b. VAT is not deductible
b) Accouning for Selling expenses
Selling expenses are expenses incurred directly and indirectly in making
sales. They include salespeople’s salaries, sales office costs,
commissions, advertising, warehousing and shipping. In general, selling
expenses are the expenses of order taking and order fulfilling.
 Accounting documents used
- VAT invoice.
- Payment slip.
- Advance payment list.
- Other related document
 Accounting account used

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

According to Circular 133/2016/TT-BTC, Account 6421 – “Selling expense”

is used to record the Selling expenses incurred during the accounting period.
Accounting entries to record any Selling Expenses incurred for the period.
 Accounting entries for 6421 – Selling expenses

Diagram 7 : Account 6421 – Selling expenses

Explanations
1. Sale staff’s salary, wages and social insurance, health insurance, trade
union fees...
2. Costs materials/tools and allocation costs of supplies and tools.
3. Depreciation of fixed assets used for selling and distribution purposes.

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

4. Provisions for warranty expenses or warranty expenses incurred

without previous provision.
5. Services and other expenses in cash.
6. Reducing selling expenses (Reverse provision...)
7. Selling expenses transferred to determine operation result.
1.2.3.3. Accounting for Financial expenses
Financial expenses are expenses related to activities for equity mobilization,
financial investments, borrowings and other financial activities of the
business. Financial expenses consist of :

- Expenses related to financial investments such as: loss from

investments, other expenses which are not capitalized in the investments.
- Borrowing expenses such as: Interest, other management fees.
- Expenses related to foreign currencies transaction, loss from foreign
exchange rate difference…
- Provision for price decrease of financial investments
- Cash discounts: Discount Allowed
- Other expenses related to financial activities
 Accounting documents used
- Debit note
- Receipts and vouchers
- Other original documents related
 Accounting account used
Under Vietnam accounting system use account 635- Financial expenses is
used to record the financial expenses incurred during the accounting period.
 Accounting entries

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Diagram 8: account 635 – Financial Expenses

(1) Refund the difference of provision for devaluation of securities

investment and loss of investment in other entities
(2) End of financial transfer period
(3) Handling exchange rate losses due to revaluation of end-of-year
foreign currency items into financial expense

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

(4) Loss of selling investments

(5a) Investment proceeds from investments
(5b) Cost of sale of investments
(6) Making provision for devaluation of securities and provision for loss
of investments in other entities
(7) Discount payment for buyers
(8) Loan interest payable, distribution of interest on deferred or
installment payment
(9a) Selling foreign currencies
(9b) Foreign currency selling losses
(10a) Buy goods and services in foreign currency
(10b) Exchange rate los
(11a) Payment of debts in foreign currency
(11b) Exchange rate loss
(12a) Debt collection in foreign currency
(12b) Exchange rate loss
1.2.3.4. Accounting for Other expenses
Other expenses are expenses arising from activities which differ from
revenue generating activities of the business. These are losses or expenses
incurred from separate events and transactions which are different from
normal activities of the enterprise. Other expenses include:
- Expenses from disposal and liquidation of fixed assets and their net
book value.
- Losses from revaluation of materials, goods and fixed asset which
are contributed in joint ventures, associates.

- Compensation for breaches of contracts;

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

- Tax penalty...
 Accounting documents used
- Invoice
- Minutes of liquidation.
- Receipts and other original documents.
- Economic contracts.
 Accounting account used
Under Vietnam accounting system use account 811- Other expenses is used
to record other expenses incurred during the accounting period.
 Accounting entries
Diagram 9 : Account 811 - Other expenses

(1) Transfer other expenses into account 911

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

(2) Other expenses incurred (Expenses for liquidation and sale of

fixed assets)
(3a) Fines for breaches of contracts and administrative violations
(3b) When paying a fine
(4a) Historical costs of fixed assets contributed as joint ventures
1.2.3.5. Accounting for Corporate Income Tax Expenses
Corporate income tax expense includes: Current income tax and deferred
income tax. It’s recorded into this account when determining profit or losses
of a fiscal year.
(1) Current income tax expense( income): The amount of income taxes
payable( recoverable) in respect of the taxable profit( tax loss) for period.
(2) Deferred income tax expense: payable in future which incurred from
- Recording deferred income tax payable in the year;
- Refunding deferred tax asset recorded since previous years.
(3) Income from deferred income tax: is the deduction of deferred income tax
expense that is resulted from:
- Recording deferred income tax asset in the year;
- Reversal of deferred income tax payable recorded in previous years.
Current tax is the amount payable to the tax authorities in relation to the
trading activities of the period. The company would calculate the anount of
tax due to be paid on the company’s taxable profits.
VAS 17 requires any unpaid tax in respect of the current or prior periods to be
recognized as a liability. Conversely, any excess tax paid in respect of current
or prior periods over what is due should be recognized as an asset.
Alternatively, the rebate due could be shown separately as income statement
and as an asset in the Balance sheet. An offset approach like this is, however,
most likely.

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Indeed, this aspect of corporate taxation- current tax- is ordinarily

straightforward. Complexities arise,, however, when we consider the future
tax consequences of what is going on in the accounts now. This is ac aspect of
tax called deferred tax, which we will look at in the next section.
When a company recognizes an asset or liability, it’s expected to recover or
settle the carrying amount of that asset or liability. In other words, it expect to
sell or use up assets, and to pay off liabilities. What happens if that recovery
or settlement is likely to make future tax payments larger( or smaller) than
they would other wise have been if the recovery or settlement had no tax
consequences? In these circumstances, VAS 17 requires companies to
recognize a deferred tax liability( or deferred tax asset).
As with current tax, deferred tax should normally be recognized as income or
an expense and included in the net profit or loss for the period in the income
statement. The exception is where the tax arises from a transaction or event
which is recognized(in the same or a different period) directly in equity.
 Accounting documents used
- Payment slip.
- Tax declaration.
- Tax receipt
 Accounting Account used
Vietnam counting systems uses account deferred income tax
expenses( 821) - record current and deferred tax expenses incurred
in the accounting period
 Accounting entries

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Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Diagram 10: Account 821- Corporate Income tax expenses

(1) The amount of corporate income tax in the period is determined

by the enterprise
(2) Transfer of corporate income tax costs
(3) The difference between the temporarily paid corporate income
tax is larger than the amount of corporate income tax payable

1.2.4. Accounting for business results

- At the end of an accounting period, the balances in temporary accounts
are transferred to an income summary account and a retained earnings
account, thereby resetting the balance of the temporary accounts to zero
to begin the next accounting period
- Purpose of closing entries:
(1) To close the balances out of the revenue and expense accounts so
they will be available to accumulate information in the following
accounting period

Student: Nguyễn Thị Hải Yến 40 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

(2) To summarize the period’s revenues and expenses and transfer that
information to owner’s capital
(3) To transfer the owner’s withdrawals to the owner’s capital
- Some items in the income statement are prepared on the following
equations:
(1) Net revenue= Total revenue- Deductible items
(2) Gross profit= Net revenue- Cost of the goods sold
(3) Operating profit= Gross profit+ Financial revenue- Financial
expenses-Selling and administration expenses
(4) Other profit= Other income- Other expenses
(5) Accounting profit before tax= Operating profit+ Other profit
(6)Profit after tax income = Accounting profit before tax – corporate
income tax
(4b) The value of wear
(4c) Depreciation of fixed assets stopped using for production and
business
(4d) Contributing capital to joint ventures
(4e) The difference is less than the remaining value of fixed assets
 Accounting documents used
Documents used when accounting business results include:
Contracts, added value invoices, receipts, payment notes, credit
notices, checks, etc.
 Accounting account used
Account 911 – Business results determination
 Accounting entries

Student: Nguyễn Thị Hải Yến 41 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Diagram 11 : Account 911 - Business results determination

632, 635, 642, 811 911 511, 515, 711

(1) (4)

821

(2)

421 421

(3) (5)

(1) Transfer of cost of goods sold, financial expenses, business

management costs and other costs
(2) Transfer of enterprise income costs
(3) Transfer of profits from business activities in the period
(4) Transfer revenue, financial revenue and other income
(5) Loss of business operation losses in the period

Student: Nguyễn Thị Hải Yến 42 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

1.3. ORGANISATION OF BOOKKEEPING SYSTEMS FOR

REVENURE, EXPENSES AND BUSINESS RESULTS
ACCOUNTING
1.3.1. General journal form of bookkeeping

- Basic features:

With this form of accounting book, all arising economic, financial operations
of the enterprise need to be recorded in the general journal over time and in
accordance with the accounting of that operation. Then take the data from this
General Journal to record in the ledger corresponding to the arising business.

This way of recording an accounting book requires the following types of

books:

“General Journal - Special Journal - Ledger - Detailed accounting books and

cards.”

- Advantages of the General journal form:

+ The book form has a simple structure, which is easy to record and
convenient for assigning jobs to accountants.

+ Convenient for information technology application in bookkeeping.

+ It is possible to check and compare with the figures in the General Journal
at any time.

Student: Nguyễn Thị Hải Yến 43 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Diagram 12 : Order of bookkeeping in the form of General

Journal

(1) Daily, accountants shall base themselves on vouchers of selling expenses

to be recorded in the general diary, then based on the figures recorded in the
general journal to record in the Ledger of Account 511, 632, 155, 156, 641,
641, 521, 157.

Student: Nguyễn Thị Hải Yến 44 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

At the same time, recording in the general diary, the arising transactions are
recorded in the sales detail book, the detail book of production and business
costs, and other detailed books.
(2) At the end of the month, add the data book on ledger TK 511, 632, 155,
156, 641, 641, 521, 157 for all arising accounting data.

Total data on detailed books Acc 511, 632, 155, 156, 641, 641, 521, 157 for
recording in the Summary Table.

Collation between the Summary of details and the ledger Acc 511, 632, 155,
156, 641, 641, 521, 157.

(3) After checking and matching the figures recorded in the ledger, detailed
book Acc 511, 632, 155, 156, 641, 641, 521, 157, 911 and the Summary of
details are used to prepare the financial statements.

1.3.2. Voucher form of bookkeeping

- Basic features

With this form, the basis for book entry is a voucher. The bookkeeping
includes: recording in chronological order the register of vouchers and
recording in accordance with the economic content on the ledger.

This way of bookkeeping will need to use the following types of books:

+ Vouchers

+ Register of book entry vouchers

+ Ledger

+ Detailed accounting books and cards

Student: Nguyễn Thị Hải Yến 45 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Diagram 13: Order of bookkeeping in the form of journal voucher

Every day, based on the vouchers of cake costs that have been checked and
used as a basis for book entry, accountants make entry vouchers.
Based on the entry voucher to record in the register voucher register, it is then
used to record in the ledger acc 511, 632, 155, 156, 641, 641, 521, 157.
After being used as a basis for making accounting vouchers, the sale vouchers
shall be recorded in the goods detail book, the sales detail book, the detail
book of production and business expenses and other detailed books.

(2) At the end of the month, sum up the amount of transactions arising in the
month in the register of accounting vouchers, calculate the total amount of

Student: Nguyễn Thị Hải Yến 46 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

arising debts, credit and balances on the accounts acc 511, 632, 155, 156, 641,
641, 521, 157.

Summarize the data on the detailed books acc 511, 632, 155, 156, 641, 641,
521, 157 to record in the Detailed Summary Table.

Collation between the Summary of details and the ledger acc 511, 632,156,
641, 641, 521, 157, 911.

(3) After comparing and matching the figures recorded in the ledger of the
total figures in the Detailed Books acc 511, 632, 155, 156, 641, 641, 521, 157,
911 for recording in the Summary of expenses The information is used to
prepare the financial statements.

1.3.3. Journal - Ledger form of bookkeeping

- Basic features

The arising economic and financial operations of the enterprise are recorded
according to the chronological order and according to the account system in
the same general ledger which is the journal - ledger. Accounting vouchers or
general accounting vouchers of the same type are the bases used for book
entry.

This form of bookkeeping is used the following types of books: Journal -

ledger, detailed accounting books - cards for carrying out the recording
process.

Student: Nguyễn Thị Hải Yến 47 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Diagram 14: Journal - Ledger form of bookkeeping

Every day, accountants base their figures on sales documents to record in one
line in both diary entries and ledger accounts 511, 632, 155, 156, 641, 641,
521, 157 in the Journal - Ledger.
Sales vouchers after being recorded in the Journal - The part numbers acc
511, 632, 155, 156, 641, 641, 521, 157 are used to record in the detailed book
of goods, finished products, detail book of sale , detailed book of production
and business expenses, other detailed books ...
(2) At the end of the month, the accountant adds up the data of the column
arising in the Diary and the debt columns, with each account in the ledger
section acc 511, 632, 155, 156, 641, 641, 521, 157 to record in the plus line
arising at the end of the month.
Total data on detailed books acc 511, 632, 155, 156, 641, 641, 521, 157 for
recording in the Summary Table.

Student: Nguyễn Thị Hải Yến 48 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Collation between Summary sheet and ledger-ledger.

(3) After checking and matching the figures recorded in the ledger, detail
book acc 511, 632, 155, 156, 641, 641, 521, 157, 911 and the Summary of
details used to prepare the financial statements .
1.3.4. Journal – Vouchers form of bookkeeping
- Basic features
All economic and financial operations arising from business activities of the
enterprises reflected in the accounting vouchers will be classified - recorded
in the Journal - vouchers under the "Debit" - "Credit" side of the relevant and
corresponding accounts.
- Advantages
+ Helps reduce the amount of Bookkeeping.
+ Easy to control errors due to regular checking and collating information.
- Disadvantages
+ This form is quite complicated, so the accountants have a thorough
understanding of works to be able to perform it easily.

Student: Nguyễn Thị Hải Yến 49 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Diagram 15 : Order of bookkeeping in the form of journal - voucher

Every day, based on the accounting vouchers that have been checked, take
data directly into the journals - vouchers or lists, related detailed books.
- For types of production and business expenses that are incurred many times
or are of a distribution nature, the original documents are first gathered and
classified in the allocation tables, then taken the results of the table.
Allocations recorded in lists and journals - related documents.
- For the journals - Vouchers are recorded based on the Lists, detailed books,
based on the total data of the list, detailed books, at the end of the month,
transfer the data into the Diary - Vouchers.

Student: Nguyễn Thị Hải Yến 50 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

- At the end of the month, close the books, add the figures in the journals -
Documents, check and compare the figures in the Logs - Documents with the
books, detailed accounting cards, summary tables of relevant details and take
the total figures of the diaries - Documents recorded directly in the Ledger.
- For vouchers related to detailed accounting books and cards, they shall be
recorded directly in related books and cards. At the end of the month, add
detailed accounting books or cards and base them on the detailed accounting
books or cards to make the detailed summary tables for each account to
compare with the Ledger.
Total figures in the Ledger and some detailed indicators in the Diary -
Documents, Lists and Summary tables are used to prepare financial
statements.

1.4. ACCOUNTING FOR REVENUE, EXPENSES AND BUSINESS

RESULTS IN THE APPLICATION OF ACCOUNTING
SOFTWARE
Machine accounting is the process of applying information technology to the
accounting information system, in order to convert accounting data into
financial information needed for the decision-making process.
1.4.1. Principles and requirements for machine accounting organization
For a good accounting system to apply accounting software, it is necessary to
comply with the following principles and requirements:
- The organization of accounting work on software must ensure science and
rationality, on the basis of observing the Accounting Law, in accordance with
the requirements of the State's macro management, accounting standards and
financial accounting policies of the State.

Student: Nguyễn Thị Hải Yến 51 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

- Organization of accounting work on software must ensure compatibility

with specific characteristics, conditions and circumstances of the enterprise.
- Ensuring that the acquisition, inspection, processing and provision the
economic and financial information of the enterprise must meet the
management requirements of the business and the State.
- Organization of accounting work on software must be suitable with the
staffing and qualifications of the current accounting staff.
- Organization of accounting work on software in enterprises needs to grasp
the principle of thrift and efficiency.
1.4.2. Steps to perform Accounting for revenue, expenses and business
results on accounting software
Diagram 16 : The sequence perform in accounting software

- Ledger acc 511, 632,

Accounting 421, 911,...
vouchers Accounting - Detailed Books ,
Software General Ledger

Table synthetic
vouchers Financial Statement

Every day, accountants enter data from accounting documents into the tables
set up in the software.
Each document has a different data entry screen with different elements
according to the current accounting system. To enter data 1 original
document, we just select and enter data into those cells.
Accounting of sales revenue: using delivery vouchers, added value invoices
and accounts according to the reciprocal relationship of accounts.

Student: Nguyễn Thị Hải Yến 52 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Accounting of selling expenses, administration expenses: using input VAT

invoices, making payments according to the reciprocal relationship of
accounts.
Accounting financial revenues and expenses: using bank statements to
account into the software according to the reciprocal account relationship.
According to the accounting software program, the information will be
automatically updated in the general accounting books and detailed
accounting books 511, 632, 911 ..
According to the programming of the accounting software, the information
will be automatically updated in general accounting books and detailed
accounting books 511, 632, 911 ..
At the end of the month, the year, the accountant will close the accounting
book, the software will automatically make a balance sheet and a summary
details of arising amounts. From the balance sheet and the Summary details of
arising amounts, the software will produce financial statements and
accounting reports.
At the end of the month, the year, general accounting books and detailed
accounting books are printed on paper, bound in books and carried out legal
procedures according to regulations on manual accounting books.

Student: Nguyễn Thị Hải Yến 53 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

CONCLUSION OF CHAPTER 1
In chapter 1, it was focused on clarifying the basic theories on revenue and
cost accounting and determining business results in commercial enterprises
from the perspective of financial accounting. This is also what I learned
through the process of studying under the school of Finance, under the
enthusiastic teaching of teachers in the school in general and the accounting
department in particular. By reviewing the basic theoretical issues of revenue
and cost accounting and determining business results in commercial
enterprises, the thesis has clarified the importance of accounting. revenues,
expenses and business results determination in general and commercial
enterprises in particular. This rationale not only helps me apply it during my
internship at Viet Nhat Food Joint Stock Company but also helps me practice
accounting conditions at other companies in the future.
Next, I will present chapter 2 with 2 main parts: Overview of Viet Nhat Food
Joint Stock Company and the situation of accounting revenue, expenses, and
determining business results at the company through the internship process.

Student: Nguyễn Thị Hải Yến 54 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

CHAPTER 2: PRACTICAL SITUATION OF ACCOUNTING FOR

REVENUE, EXPENSES AND DETERMINE BUSINESS RESULTS AT
VIET NHAT FOOD JOINT STOCK COMPANY
2.1. OVERVIEW OF VIET NHAT FOOD JOINT STOCK COMPANY
2.1.1. The foundation and development of Viet Nhat Food joint stock
company.
With the trend of opening and integrating in the current economy, any
business is facilitated to develop. Along with that is the efforts of enterprises
with the highest goal is to affirm their position in the market.
Viet Nhat Food Joint Stock Company was established on June 22, 2017, the
business registration certificate of enterprise No. 0107893162 and was
registered for the second change on November 27, 2018 at Cau Giay District
Tax Department, Hanoi, Vietnam.
Information about company:
The name of the company: VIET NHAT FOOD JOINT STOCK COMPANY
- Tax code: 0107893162
- Operation status: in operation (granted tax registration certificate).
- Registration location: Cau Giay District Tax Department
- Headquarter address: Lot 10-E1, Yen Hoa New Urban Area, Yen Hoa Ward,
Cau Giay District, Hanoi City
- Phone: 0437824699
- Fax: 0437824699
- Charter capital: VND 20,000,000,000 (in words: Twenty billion Dong)
- Par value of shares: 10,000 VND
- Total number of shares: 2,000,000 (Two million shares)
- Legal representative of the company:
+ Full name: Nguyen Tran Hanh_ Position: Director

Student: Nguyễn Thị Hải Yến 55 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

+ Born: November 27, 1974

+ Ethnic group: Kinh
+ Nationality: Vietnamese
+ Address of permanent residence registration of legal representative: Noi
Am Hamlet, Lien Ninh Commune, Thanh Tri District, Hanoi City, Vietnam.
Viet Nhat Food Joint Stock Company was established with the capital
contribution of 6 members with a charter capital of VND 20,000,000,000
(Twenty billion VND).
Viet Nhat Food JSC (Hatoyama System) was established and put into
operation in the form of a seafood supermarket. The company imports many
kinds of seafood from all over the country such as Nha Trang, Phu Quoc,
Quang Ninh, Phan Thiet, Con Dao and imports from abroad ... so the staff,
especially seafood engineers selected requires a high level of expertise. In the
beginning, there were many difficulties because fresh seafood is sensitive to
transportation, changing living environment ...
After 3 months, the Board of Directors decided to change the business model
is combining Restaurants and Seafood Supermarkets - this is the first model
in Hanoi and on September 21, 2017 Hatoyama 1 Restaurant officially
opened address at No. 8 Van Phuc, Ba Dinh, Hanoi. Along with the
leadership, the company's staff also try their best and the business is
favorable, Hatoyama 2 Restaurant was established at address Shop house 30
Nguyen Chanh, Trung Hoa, Cau Giay on 26 / 6/2018. By April 2019, there
was Hatoyama 3 restaurant at 13 Ly Thuong Kiet, Q. Hoan Kiem, Hanoi.
According to the company's plan in 2020 is to open 2 new restaurants in
Hanoi.

Student: Nguyễn Thị Hải Yến 56 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

2.1.2. Characteristics of business operation

2.1.2.1. Main business sectors
Viet Nhat Food Joint Stock Company operates mainly in the field of trading
all kinds of fresh seafood and providing catering services for customers.
Supermarket is a place to wholesale seafood for other businesses in Hanoi, a
fresh seafood market for consumers to choose and sell to customers who want
to enjoy at the restaurant. .
The restaurant is a place for catering services for diners, with many famous
chefs, over 20 years of experience will cook delicious food, the seafood
swimming in the water will be displayed on the table after less than 20
minutes.
Viet Nhat Culinary Joint Stock Company owns three businesses, the
restaurant has about 290 tables with an average capacity of 2400 guests /
time, including VIP room area for partner reception, and The common space
is modern, airy, serving the need to enjoy seafood of family and friends.
Supermarket is a place of wholesale and retail of fresh seafood for consumers,
the supermarket is always available with many different types of seafood for
customers to choose. The company always selects the source of goods
directly from the fishermen as well as buys directly from suppliers to have the
most stable source of supply to the market for customers, besides the
company buys goods in quantity to get the best deal, as well as reduce
intermediate costs.
The Company's seafood is ordered from suppliers across the country, all of
which are fresh seafood. Seafood supermarkets are sold under two forms:
wholesale and retail, in addition, seafood is also processed into delicious
dishes for diners to enjoy under the restaurant and catering service model. All
are shown in the diagram of the production organization process as follows:

Student: Nguyễn Thị Hải Yến 57 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Diagram 17 : Process of buying (importing) goods in Viet Nhat

Food JSC.

2.1.2.2. Advantages
Viet Nhat Food Joint Stock Company is a pioneer in the chain of restaurant -
supermarket business model, bringing newness to customers.
2.1.2.3. Disadvantage
In addition, there are limitations, the source of seafood imported from
suppliers about 100% is fresh seafood and raised at the supermarket. Due to
the characteristics of seafood being transported from the suppliers to the
supermarket to nourish, some of the goods fainted, died due to changing the
breeding environment from natural to artificial at the supermarket.
2.1.2.4. Business result in 2019
The following is Income Statement in 2019 of Viet Nhat Food Joint Stock
Company:

Student: Nguyễn Thị Hải Yến 58 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Student: Nguyễn Thị Hải Yến 59 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

2.1.3. Characteristics of the organizing management mechanism in Viet

Nhat Food JSC.
At Viet Nhat Food JSC, when the decisions are approved and permit to
performed by the management, the relevant departments will participate to
support the implementation at restaurants and supermarkets.
The departments and divisions aim at the common goal of building a stronger
company, supporting each other at work, contributing to the organizational
structure scientifically, avoiding heavy.
Diagram 18 : Organizing management mechanism in Viet Nhat
Food JSC

Director

Accounting- Human Restaurant Purchasing Technical Marketing

Finance resources manager Department Department Department
Department

Hatoyama 1 Hatoyama 2 Hatoyama 3

Director: Decide on all issues related to daily operations of the company;

Organize the implementation of decisions of the Director; Organize the
implementation of the business plan and investment plan of the company;
Proposing the plan of organizational structure and internal management
regulations of the company; Appoint, dismiss and dismissmanagerial
positions in the company, except for positions appointed, dismissed or

Student: Nguyễn Thị Hải Yến 60 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

removed from the Director; Decide wages and allowances for employees in
the company, including managers under the appointment authority of the
Director ; Other rights and duties as prescribed by law, the company's Charter
and decisions of the Director.
Accounting - Finance Department: It is responsible to reflect and record all
arising economic operations in the accounting books in accordance with the
provisions of the State. Financial planning, reporting to the superior according
to regulations.
Restaurant management: this department is responsible for managing the
entire business operations of the restaurant such as controlling service quality,
training, managing the workforce, advising customers, handling issues
incidents, situations that occur during work. This department operates under
the direct guidance of the board of directors.
Purchasing Department: this department is responsible for meeting the raw
materials necessary for the operation of the business, planning purchasing,
finding sources of high quality goods, ...
Technical Department: this department is responsible for ensuring that the
facilities are always in good working order, meeting the requirements set out,
formulating a plan for maintenance and overhaul of equipment of units
periodically. Strategic orientation for developing new technologies, upgrading
or replacing modern and economical machinery and equipment.
Marketing Department: Marketing Department: the function of this
department is to connect the company's products and services to customers,
build brand image, ensure revenue from marketing programs, review,
management and development of potential customers, traditional customers of
the company. This includes planning care, listing services that will be
provided to customers.

Student: Nguyễn Thị Hải Yến 61 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Human Resources: this department is responsible for helping the Director in

managing and directing all activities of the company such as administrative
management, keeping records, documents serving corporate management
organizations, personnel management organizations, carry out recruitment
and training of personnel to ensure the required quality and build the reward
system of the company, which is the bridge between the Board of Directors
and employees in the company.
2.1.4. Characteristics of organizing accounting system
2.1.4.1. Organization of the company's accounting apparatus.
The company applies the centralized accounting method according to the new
accounting system, so the jobs from classification of documents, accounts to
reporting are done in the accounting department.
Diagram 19 : Model of Organize the company's accounting system
in Viet Nhat Food JSC

: management relationship
: support relationship
Chief Accountant: Organizing the accounting work of the enterprise;
investigating and supervising the use of assets, financial sources and human
resources in enterprises; supervise the business activities of the enterprise;
supervise the analysis and compilation of financial reporting; ensure the
legality, timeliness and accuracy in making accounting records; control the

Student: Nguyễn Thị Hải Yến 62 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

process of making books, vouchers, financial statements as well as other

related documents of the company.
Purchases, sales and debt settlement accounting department: To monitor,
record, promptly and fully reflect the situation of goods purchase and sale
about quantity, quality, type , price,… monitor, check and provide
information in time on the purchase, sale and payment of liabilities for
company leaders as basis for proposals for decisions in directing and
conducting business activities of the company.
Warehouse accounting department: Monitoring the situation importing and
exporting of goods in accordance with the process, ensuring inventory in
terms of quantity to meet the goods for the relevant departments.
Salary accounting department: Calculate and distribute accurately of
salaries and wages; guide and make reports on labor and wages.
Tax accounting department: Accounting and making tax returns: VAT,
corporate income tax, taxes, charges and other fees; collect all valid legal
evidence to serve as a basis for calculation, comparison and examination.
General accounting department: Checking and comparing figures between
accounting operations; check arising business terms; check and compare,
balance between detailed and general figures; checking and comparing
matching ending balances with detailed reports; make entries at the end of the
period before making financial statements; prepare financial statements by
quarter, 6 months, year and detailed explanatory reports.
2.1.4.2. Accounting policies applied at the company
Viet Nhat Food JSC is currently applying the accounting regime
according to the Circular 133/2016 / TT-BTC August 26, 2016 of the
Ministry of Finance and other relevant legal documents.
The accounting policies applied at the company are as follows:

Student: Nguyễn Thị Hải Yến 63 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Applied accounting regime: The company organizes accounting according to

Circular No. 133/2016 / TT-BTC August 26, 2016 of the Ministry of Finance
and other relevant legal documents.
Annual accounting year: The fiscal year is calculated according to the
calendar year starting from January 1 to December 31.
The currency unit used in the company is Vietnam Dong (with the national
symbol is "đ" and the international symbol is "VND".
Inventory accounting: Accounting by the method of regular declaration; The
prices of purchased goods shall be recorded according to the actual price and
the price of merchandise dispatched on a weighted average basis.
Depreciation method of fixed assets: using the straight-line method in
accordance with Circular No. 45/2013 / TT-BTC 25 April 2013.
Method of calculating VAT (VAT): calculated and declared by the deduction
method
Principles of cost recognition: Periodical
Form of bookkeeping: General Journal form, using Misa accounting software.
2.1.4.3. Applied form of Bookkeeping
The accounting form applied by the Company is the General Journal form,
using Misa accounting software. Thanks to that, the recording becomes faster
and easier.
Basic characteristics of the General Journal accounting form: All arising
economic and financial operations must be recorded in the Diary book, with
the focus on the General Journal, in accordance with the arising chronological
order. and according to the economic content of that business. Then take data
from the journals to record the Ledger according to each arising transaction.
Every day, on the basis of the tested vouchers used as the book entry basis,
firstly record the arising operations in the General Journal, then base on the

Student: Nguyễn Thị Hải Yến 64 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

figures recorded in the General Journal to record in the Ledger. At the end of
each month, quarter and year, add the figures on the Ledger, make a balance
sheet of arising amounts. After checking the matching, the figures recorded in
the Ledger and the detailed summary sheet (made from the detailed ledgers,
accounting cards) are used to prepare the financial statements.
Diagram 20 : Model of accounting records in the form of General
Journal

Original documents

Journal General Journal Details Accounting

books

Ledger detailed summary

sheet

Balance sheet
amounts arising

Financial Statement

Note:
Record daily
reference relations
record periodically

Student: Nguyễn Thị Hải Yến 65 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

The book system that the company is using includes detailed and general
accounting book system. In it, the general ledger includes the General Journal
and the Ledger.
General journal: The basis for recording the general Journal is the original
documents. The General Journal is used to record economic and financial
transactions arising in the chronological order and reflects them on the
reciprocal account relationship in service of the Ledger entry.
Ledger: Opened under accounting account, each account is opened on a
separate ledger.
Detailed accounting Books: Used to record in detail the accounting objects
that need to be monitored in detail in order to serve the requirements of
calculating some indicators, summarizing, analyzing and checking which the
general ledger cannot meet. The company has used the following detailed
accounting books:
+ Detailed book of fixed assets: this book is open for the whole year
+ Detail book of materials
+ Detailed book of deposits, loans
+ Payment details book
+ Account details books
+ Salary and social insurance distribution tables
+ Depreciation of fixed assets tables
+ VAT
The company directly organizes the accounting reporting regime according to
the Vietnamese accounting system and the accounting standard system issued
by the Ministry of Finance. At the same time, send to the relevant agencies on
time. As follows:

Student: Nguyễn Thị Hải Yến 66 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

+ Monthly to submit a VAT declaration no later than the 20th of the

following month
+ At the end of the accounting period, on December 31 every year, the
accountants shall make financial statements and the deadline for payment is
90 days at the latest from December 31 of the previous year, including:
 Balance sheet
 Income Statement
 Cash flows Statement
 Notes to the financial statements
Currently, Viet Nhat Food Joint Stock Company is using MISA software to
conduct document making.

Picture 1 : MISA accounting software interface

2.2. PRACTICAL SITUATION OF ACCOUNTING FOR REVENUE,
EXPENSES AND BUSINESS RESULTS AT VIET NHAT FOOD JSC.
2.2.1. Practical situation of Accounting for Revenue at the company
2.2.1.1. Classification of revenue at the company

Student: Nguyễn Thị Hải Yến 67 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

At the Company, the arising revenue mainly includes: revenues from sales
and services, financial income and other income.
2.2.1.1. Accounting for revenue from sales of goods and services.
Revenue from sales of goods and services: is the total amount of receivables
arising in the period from the sale of goods and provision of services of the
enterprise.
 Accounting documents used
- VAT invoice or commercial invoice
- Other documents which relating to providing goods or rendering
services.
 Accounting account used
Account 511- Revenue to record revenue from sale of goods and
services in the accounting periods.
Illustration:

On January 18, 2019, Viet Nhat Food joint stock company sold food Service
to Econfarms Viet Nam Limited Company with the price of 4.692.000 VND.
Price does not include VAT, VAT10%
Based on VAT invoice HĐ 00004:
Dr acc 111 : 5.161.200
Cr acc 511 : 4.692.000
Cr acc 333 : 469.200
The process of inputting software: On the Misa input screen/Go to the
sales module/ select ADD/fill in the sales voucher.
- Customer: Econfarms Viet Nam Limited Company
- Reason : Selling goods according to invoices 00004
- Date: 18/01/2019

Student: Nguyễn Thị Hải Yến 68 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

- Code : DV-001 / Tab

Dr acc 1111 - cash VND
Cr acc 5111 – revenue from Sales of goods and services
- Quantity : 1
- Unit price : 4.692.000
- put the next tab “ Tax “/ % VAT : 10%
- Ctrl + S to End.

Student: Nguyễn Thị Hải Yến 69 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Picture 2 : VAT Invoice number 000004

Student: Nguyễn Thị Hải Yến 70 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Student: Nguyễn Thị Hải Yến 71 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Picture 3 : Manipulation on Misa software

Student: Nguyễn Thị Hải Yến 72 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 1: Ledger of account 511- Revenue from sales of goods and services

Table 2: Detailed book of account 511- Revenue from sales of goods and
services

Student: Nguyễn Thị Hải Yến 73 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 3: General journal of account 511 - Revenue from sales of goods and
services

2.2.1.2. Accounting for Revenue deductions

The amount of sales generated by a company after the deduction of returns,
allowances for damaged or missing goods and any trade discounts allowed.
The sales reported on a company’s financial statements is a net sales number,
reflecting these deductions.
 Accounting documents used
- Sales allowance minutes
- Payment slip
- Debt notices
- Other original documents ...
 Accounting account used
Account 511, Revenue deductions are recorded in the debt side of
account 511
 Illustration:
In 2019, Viet Nhat Food Joint Stock Company does not generate revenue
deductions, so the revenue from sales of goods and services is net revenue.
2.2.1.3. Accounting for Financial Income
Financial income includes economic benefits gained by the business from
financial activities during the accounting period. As regulated by VAS No 14,

Student: Nguyễn Thị Hải Yến 74 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

financial income will be recognized if it is probable that the business will gain
economic benefits from the transaction and the income can be reliably
measured. Financial incomes consist of: Interest incomes such as: loan
interest, deposit interest; Capital gain from disposing financial investments;
Distributed dividend and profit; Gain from foreign exchange difference; Cash
discount ( Discount received); Other financial incomes.
 Accounting documents used
- Debit note
- Receipts and vouchers
- Other original documents related
 Accounting Account used
Under Vietnamese accounting system uses account 515-
Financial revenue is used to record financial revenue incurred
during the accounting period.
 Illustration:
Based on documents of bank statements of VP BANK, interest on
bank deposits dated 15/03/2019.
The accountant records:
Dr 1121 : 25.800.000
Cr 515 : 25.800.000
From the original vouchers, the accounting account shall be
reflected in the detail book of account 515 and ledger of account
515.

Student: Nguyễn Thị Hải Yến 75 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Picture 4 : Credit Note from VP Bank 15/03/2019

Table 4 : Detailed book of account 515 – Financial income

Student: Nguyễn Thị Hải Yến 76 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 5 : Ledger of account 515 – Financial income

2.2.1.4. Accounting for Other Incomes
Other income is income other than sale income of the enterprise arising in
the accounting period.
Other income includes: Proceed of disposal of fixed asset; Gains from the
revaluation materials, goods and fixed asset that are used to contribute or
invest into associates or other long-term investment; Gains from contract

Student: Nguyễn Thị Hải Yến 77 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

compensation by the customers; Tax refund from the State Budget; Account
unidentifiable as to whom they are payable; Sale-related tips or awards( if
any offered by suppliers which are not included in sales); Gifts or donations
in cash or in kind by organizations and individuals; Other incomes
 Accounting documents used
- Invoice
- Minutes of liquidation.
- Receipts and other original documents.
- Economic contracts.
 Accounting account used
Under Vietnamese accounting system, account 711- other
income is used to record other income incurred during the
accounting period.
 Illustration
Viet Nhat Food JSC does not incur other incomes in 2019.
2.2.2. Practical situation of accounting for expenses
2.2.2.1. Classification of expenses at the company
There are some types of expenses at the company: Cost of Goods sold,
Fianancial Expenses, Selling expenses, Administrative expenses, other
expenses and corporate income tax expenses.
2.2.2.2. Accounting for Cost Of Goods Sold
For wholesale and retail sales, accounting is still recorded in Acco 632.
When receiving the delivery note, the accountant shall set the operations and
enter data into the accounting software as follows:
Debit Acc 632 - COGS
Credit Acc 156 - The capital value of goods

Student: Nguyễn Thị Hải Yến 78 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Cost of goods sold at Viet Nhat Food Joint Stock Company is

calculated FIFO method. Documents related to the cost of goods sold
are delivery notes, accounting based on delivery notes, record detailed
account, general journal and ledger of acc 632.
 Accounting documents used
-Inventory issue note
-Other documents which relating to rendering of services.
 Accounting account used
Account 632 – “Cost of goods sold”. This account is used to
record the cost of goods sold and services.

 Illustration
Based on delivery notes number HT-0008358, December 05 , 2019. The
accountant records:
Dr 632 3,831,082
Cr 156 3.831.082
From the original documents that are delivery notes, the accountant records
it in the general diary book, the sales detail book, the account ledger 632.

Student: Nguyễn Thị Hải Yến 79 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Picture 5 : Delivery notes number HT – 0008358

Table 6: Detailed book of account 632 – Cost of goods

sold

Student: Nguyễn Thị Hải Yến 80 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 7 : Ledger of account 632 – Cost of goods sold

2.2.2.3. Accounting for Financial Expenses at the company

Financial expenses are expenses related to activities for equity mobilization,

financial investments, borrowings and other financial activities of the
business

Student: Nguyễn Thị Hải Yến 81 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Financial expenses consist of :

- Expenses related to financial investments such as: loss from investments,
other expenses which are not capitalized in the investments
- Borrowing expenses such as: Interest, other management fees.
- Expenses related to foreign currencies transaction, loss from foreign
exchange rate difference
- Provision for price decrease of financial investments
- Cash discounts: Discount Allowe
- Other expenses related to financial activities
 Accounting documents used
- Debit note
- Receipts and vouchers
- Other original documents related
 Accounting account used
Under Vietnam accounting system use account 635- Financial expenses is used to
record the financial expenses incurred during the accounting period.
 Illustration
Based on the notification of credit flight fee notice .
The accountant records:
Dr 635 7,500,000
Cr 112, 7,500,000
From the original accounting records reflected in detailed account acc 635,
Ledger acc 635

Student: Nguyễn Thị Hải Yến 82 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Piture 6 : Debit notes from TP Bank 21/01/2019

Student: Nguyễn Thị Hải Yến 83 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 8 : Detailed book account 635 – Fianancial expenses

Table 9: Ledger account 635 – Fianancial expenses

Student: Nguyễn Thị Hải Yến 84 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

2.2.2.4 Accounting for Selling expenses

For accounting of selling expenses, Viet Nhat Food Joint Stock Company
uses account "6421- Selling expenses"
Based on the arising vouchers, the accountant will record it in detail book of
Account 6421. After that, based on the data recorded in the general journal, the
accountant will record it in the ledger acc 641.
 Accounting documents used
- VAT invoice.
- Payment slip.
- Advance payment list.
- Other related document
 Accounting account used
Account 6422 – Selling expense to record the Selling expenses incurred
during the accounting period. Accounting entries to record any Selling
Expenses incurred for the period.
 Illustration
Based on invoice No. 00005454 dated 01/02/2019, the accountant shall record:
Dr acc 641 : 11,148,000
Dr acc 1331 : 1,114,800
Cr acc 111 : 12,262,800

Student: Nguyễn Thị Hải Yến 85 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Picture 7 : VAT Invoice number No. 0005454

Student: Nguyễn Thị Hải Yến 86 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 10 : Ledger account 6421 – selling expenses

Table 11 : Detailed book account 6421 – selling expenses

Student: Nguyễn Thị Hải Yến 87 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

2.2.2.5. Accounting for Administrative expenses at the company

 Accounting documents used
- VAT invoice.
- Payment slip.
- Advance payment list.
- Timesheets
- Payroll
- Payment table
- Labor contract
- Regulation
- Timesheet overtime
- Overtime pay table
- Timesheet overtime
- Other related document
 Accounting account used
Account used 6422 - Administrative expense to record the Administrative
expenses incurred during the accounting period. Accounting entries to record any
Administrative Expenses incurred for the period.
 Illustration

Student: Nguyễn Thị Hải Yến 88 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Picture 8 : Payment from Dien Luc Ha Noi Company 31/03/2019

Student: Nguyễn Thị Hải Yến 89 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 12 : Ledger account 6422 – Administrative expenses

Table 13 : Detailed book account 6422 – Administrative expenses

2.2.2.6. Accounting for Other Expenses
* Accouning documents used

Student: Nguyễn Thị Hải Yến 90 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

- Invoice
- Minutes of liquidation.
- Receipts and other original documents.
- Economic contracts.
 Accounting account used
Under Vietnam accounting system use account 811- Other expenses is used to
record other expenses incurred during the accounting period.
 Illustration
Viet Nhat Food JSC in 2019 does not incur other expenses.
2.2.2.7. Accounting of corporate income tax expenses at the company.
Corporate income tax is the total tax expense when determining the business
results, including current income tax expense and deferred corporate income tax.
Accounting process: At the end of the accounting period, the accounting books
must be closed. The accounting software will automatically transfer and calculate
the corporate income tax payable.
 Accounting documents used
- Payment slip.
- Tax declaration.
- Tax receipt
 Accounting Account used
Vietnam counting systems uses account deferred income tax expenses
(821) - record current and deferred tax expenses incurred in the accounting
period

Student: Nguyễn Thị Hải Yến 91 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

 Some arising operations:

Table 14: Ledger of account 821- Corporate income tax expenses

2.2.3. Accounting for determining business results at Viet Nhat Food
JSC
Viet Nhat Cuisine Joint Stock Company proceeds to determine business
results by month. Net profit from business activities of the enterprise is
determined by transferring the entire net revenue and cost of goods and
services of all types of business activities together with selling expenses and
expenses. business management, revenue from financial activities, expenses

Student: Nguyễn Thị Hải Yến 92 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

from financial activities to Account 911 to balance between total revenue

and total expenses.
For example: Transferring revenue, cost of goods sold, selling expenses,
administrative expenses ... incurred in the period. Accounting in detail book
of Account 911, in general diary book, then in Ledger of Account 911. At
the end of the month, the accountant shall make a report on business results
in the month based on the ledger of Account 511 and Ledger acc 515, ledger
acc 632, ledger acc 6421, ledger acc6422, ledger TK 911.
- Transferring net revenue:
Dr Acc 511 2,848,200,091
Cr Acc 911 2,848,200,091
- Transferring cost of goods sold:
Dr Acc 911 2,142,136,882
Cr acc 632 2,142,136,882
- Transferring financial income:
Dr acc 515 30,758,300
Cr acc 911 30,758,300
- Transferring Administrative expenses:
Dr acc 911 821,823,950
Cr acc 6422 821,823,950
- Transferring selling expenses:
Dr acc 911 222,776,625
Cr acc 6421 222,776,625
- Transferring financial expenses:
Dr acc 635 113,035,678
Cr acc 911 113,035,678

Student: Nguyễn Thị Hải Yến 93 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

• Profit before tax = Net revenue - Cost of goods sold + Revenue from
financial activities - Expenses of financial activities – selling expenses -
G&A expenses + Other income - Other expenses
= 2,848,200,091 - 2,142,136,882 + 30,758,300 - 113,035,678 - 222,776,625
–821,823,950 = - 420,814,744 <0
- Transferring losses:
Dr acc 4212 420,814,744
Cr acc 911 420,814,744

Table 15: Ledger account 511- revenue from sale of goods and services in
2019

Student: Nguyễn Thị Hải Yến 94 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 16: Ledger account 515- Financial income in 2019

Student: Nguyễn Thị Hải Yến 95 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 16: Ledger account 632- Cost of goods sold in 2019

Student: Nguyễn Thị Hải Yến 96 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 17: Ledger account 635 - Financial expenses in 2019

Student: Nguyễn Thị Hải Yến 97 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 18: Ledger account 6421 – Selling expenses in 2019

Student: Nguyễn Thị Hải Yến 98 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 19: Ledger account 6422 – Administrative expenses in 2019

Student: Nguyễn Thị Hải Yến 99 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 20 – Tranferring to account 911

Student: Nguyễn Thị Hải Yến 100 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Table 21: Income Statement at Viet Nhat Food JSC in 2019

Student: Nguyễn Thị Hải Yến 101 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

2.3. EVALUATION OF ACCOUNTING FOR REVENUE, EXPENSES AND

BUSINESS RESULTS AT THE COMPANY.
Through the internship, find out the actual accounting organization activities in
general and accounting for revenue, expenses and determine the business results in
Viet Nha Food Joint Stock Company, I would like to present some specific reviews
as follows:
2.3.1. Achievements
In general, the organization of the accounting system and the organization of
accounting of revenues, expenses and determination of business results have the
following advantages:
- The company organizes a centralized accounting system, scientifically
organized, clearly decentralized and specialized for each employee, ensuring the
direct and focus on the unity of the leaders.
- The accounting administration is strictly conducted by the accountant, there
is regular monitoring and assurance between departments.
- Most of the company's payment operations are done via banks or through
complement debts. This is great for ensuring safety and payment time is controlled,
financial management is also easier.
- The company prints and exports reports in the form of a general journal,
which is widely applied by enterprises, which has many advantages for accounting
work. The daily bookkeeping makes checking and comparing revenues and
expenses conveniently and easily. Books and Vouchers related are quite complete
and accurate.
- The implementation of the obligation to contribute to the State Budget is
always ensured on time and in full payment.

Student: Nguyễn Thị Hải Yến 102 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

- The accounting work of the company has been supported by Misa

accounting software, which is considered to be of good quality, making accounting
work more compact.
- The system of invoices and vouchers is used at the company in accordance
with the form issued by the Ministry of Finance, the arising economic operations
are faithfully reflected on the vouchers.
- The accounting records are signed and numbered in chronological order and
checked for the content of arising economic operations, the accompanying original
documents, signatures and provisions ... This helps to synthesize and classify
economic information so that general or detailed accounting books can be recorded
fully, promptly and accurately.
- The organization of preparation and rotation of documents arising in the
course of business is done strictly, there is a close association between the
divisions and the Accounting Department of the company.
2.3.2. Limitations and causes of Limitations.
Besides the achievements that accounting activities have achieved, the company
also has Limitations:
 Accounting wrong some operations:
- In some operations, the accounting and revenue recognition did not meet the
conditions for revenue recognition according to current accounting standards and
regulations (customers make deposits in advance, but accountant records increase
revenue)
- Currently, enterprises are accounting the costs of domestic transportation,
loading and unloading of goods ... are selling expenses while these costs must be
recorded in the original price of goods. The incorrect determination of the value of
inventory affects the collection and determination of cost prices, and the cost of
sales is too high compared to reality.

Student: Nguyễn Thị Hải Yến 103 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

 Restrictions on accounting books and vouchers:

- The accounting department did not print all the accounting books as prescribed
by the accounting regime. The accountant only prints the financial statements
stored on the machine when it is needed to print, so when a computer failure
occurs, it will be very difficult to restore data and get data when needed.
- The transportation of original documents between the departments: warehouse -
cashier - accountant is still delayed, sometimes affecting the accounting.
 Professional qualifications of staff
- Due to the limited qualifications of the accountants, not really uniform, not yet
meeting the work requirements in new conditions.
- The company applies computer accounting software so it is required that
accountants must regularly improve their computer skills as well as proficient use
of accounting software. When entering data, it should be accurate and fast. But
there are limitations in information technology, software skills and accuracy
leading to errors such as entering data wrongly, causing book errors and
accounting to take a long time to check and correct this mistakes.
 Limitations due to business industry characteristics
- Sales operations sometimes were not uniformity among business establishments.
- Due to business characteristics (trading in seafood, shrimp, fish ...) are influenced
by external price factors. So when there is a fluctuation of increase/decrease in the
world, the price of the product changes making accounting also meet certain
difficulties.

Student: Nguyễn Thị Hải Yến 104 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

CONCLUSION OF CHAPTER 2
Chapter 2 of the thesis goes into the actual situation of accounting for
revenue, expenses and determining business results in Viet Nhat Food Joint Stock
Company. Through the process of studying and researching on the situation of
accounting for revenue, expenses and determining business results at the company,
I find this is an accounting part with a large and important workload in the
accounting organization.
The accounting work of the company has also organized, arranged scientifically,
reasonably, selected scientific and effective accounting methods to solve this issue
well. The operating sections of the company work together smoothly, the
accounting department and other departments coordinate, support each other
effectively to bring the best results for the company's production, business and
management activities. From the advantages and disadvantages of accounting for
revenue, expenses and determining business results at Viet Nhat Food Joint Stock
Company in chapter 2, I see that the company needs to make the requirements and
recommendations to improve accounting for revenue and expenses and
determining business results.

Student: Nguyễn Thị Hải Yến 105 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

CHAPTER 3: SOLUTIONS TO IMPROVE ACCOUNTING FOR

REVENUE, EXPENSES AND BUSINESS RESULTS AT VIET NHAT
FOOD JSC
3.1. DEVELOPMENT ORIENTATION OF THE COMPANY
In order to meet the current economic conditions when competition from
businesses is becoming increasingly fierce, it requires the organization of
accounting of revenue, expenses and business results determination of Viet Nhat
Food Joint Stock Company to be more complete. Businesses need to find a right
direction, improve themselves to stand steadily on the market.
Orientations for completing and developing the accounting for revenue,
expenses and determining business results:
+ Provide data and information on revenue, expenses and business results
honestly, objectively and easily understandable, creating favorable conditions for
monitoring and checking accounting.
+ Accounting data must reflect promptly and accurately. This is very
necessary and important for the authorities such as:
• For Tax Authorities: Help with the calculation of taxes and other payables to
the State Budget
• For banks: Help with calculating loan interest, deposits, repayments of
capital and interest
• It is important for the management of the company to provide specific
directions and plans for the next period.
+ Data must ensure clarity, transparency and publicity. This is especially important
for a business.
+ Ensuring savings and practical efficiency. Any business, whether private or
public, has the same desire to save costs, earn high profits, and grow the company.

Student: Nguyễn Thị Hải Yến 106 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

3.2. REQUIREMENTS FOR IMPROVING ACCOUNTING FOR

REVENUE, EXPENSES AND BUSINESS RESULTS AT VIET NHAT
FOOD JOINT STOCK COMPANY
The good management of revenue, expenses and business results are an important
factor contributing to enhance the competitiveness, ensure safety as well as the
ability to achieve high efficiency when issuing business decisions to help
businesses grow. Completing accounting for revenue, expenses and determining
business results must meet the following requirements:
- Ensuring compliance with policies and regimes: Enterprises engaged in the
operation of the economy, regardless of their business in any field, in any industry
must also comply with the current law provisions. The legal norms (the
Accounting Law, the accounting regime and specific guiding documents) have a
direct impact on the activities of enterprises in general and accounting work in
enterprises in particular. Therefore, when carrying out accounting work, the parts
related to accounting for revenues, expenses and business results must comply with
these regulations.
- Ensuring the thrift and efficiency: Any business, whether private or public, has
the same desire to save costs, earn high profits, and grow the company. Therefore,
it is necessary to carry out accounting in general and accounting for revenue,
expenses, determining business results in particular thrift and feasible effect.
- Ensuring to be consistent with the production and business activities of the
company : Completing the accounting of turnover, expenses and business results
must be consistent with the characteristics of the company's business activities.
Since then, it will be easier to manage revenue, expenses and business results.
Create conditions for company management to make the right decisions and
directions to help the company grow.

Student: Nguyễn Thị Hải Yến 107 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

- Ensuring that information is timely provided: The accounting data should

reflect in a timely manner and accurately. This is very necessary and important for
the authorities such as: Tax authorities help to calculate taxes and payables to the
state, for banks that help calculate interest on loans, deposits, capital and interest
recovery. And, It is important for the management of the company to provide
specific directions and plans for the next period.
- Ensuring the feasibility : complete solutions should ensure that they can be
implemented in the shortest possible time with the lowest cost scale and cause the
least change in general accounting as well as public Corporate management. The
solutions given must ensure the technical aspect, the staff ...
3.3. SOLUTIONS TO IMPROVE ACCOUNTING FOR REVENUE,
EXPENSES AND BUSINESS RESULTS
• Accounting wrong some operations
- Make sure to record revenue at the time of incurred. Advance payments
customers should not be recorded as revenue increases, but should only be placed
in advance payments customers. Whenever the actual selling goods to customers
will record the increase in revenue at that time, to ensure the recognition of
revenue at the time of arising.
- Enterprises need to account the costs of transportation, into the value of raw
materials inventory.
The company needs to identify, classify and account selling expenses,
Administrative expenses, and other expenses in accordance with current
regulations. The expenses incurred related to the sales department must be
aggregated and accounted into the selling expense account (Account 6421),
expenses incurred in relation to the enterprise management department must be
aggregated and accounted into the Administrative expense (Account6422) in
accordance with regulations.

Student: Nguyễn Thị Hải Yến 108 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

• Restrictions on accounting books and vouchers:

- Enterprises need to print full books for archiving, accounting data must be
regularly backed up to external devices to avoid data loss.
- Currently at Hatoyama facilities, the rotation of original documents between parts
is still delayed. Therefore, it is necessary to unify the process of document rotation
between divisions for the restaurant to apply:
1, Upon receiving the goods and the delivery record of the suppliers, the relevant
departments receive the goods and must sign for confirmation on the delivery
record.
2, Then transfer the delivery record immediately to the cashier the restaurant, the
supermarket proceeds to write a receipt.
3, The order tickets between supermarkets, kitchens, and restaurants need to be
transferred quickly, avoiding loss.
- Because the office is far from the facilities, the transportation of original
documents is slow, accounting is not timely. The company needs to appoint a
Shipper to transport the original documents from the facilities to the office so that
accountants can account in a timely and fast the arising economic operations.
• Professional qualifications of staff
- The company's accountants themselves also need to complete their work well,
regularly update the accounting regime, newly issued documents and policies, and
promptly apply them to the operation of enterprises.
- Need to have a training session for accounting department staff to improve
computer skills, so that the data entry process is accurate to avoid errors, work
efficiency is improved.

Student: Nguyễn Thị Hải Yến 109 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

• Limitations due to business industry characteristics

- Need to unify sales operations between establishments: The company should set
up a specific sales process for warehouse and supermarket staff to unify the entire
Hatoyama restaurant system.
1, When receiving orders of employees brought down, warehouse accountants
proceeded delivery.
2, The warehouse accountant prepares a delivery note and delivers the goods to the
kitchen for the kitchen to prepare and process food for the customer.
3, All establishments must agree to follow the approved and applied process.
- Currently at Hatoyama facilities, the rotation of original documents between parts
is still delayed. Therefore, it is necessary to unify the process of document rotation
between divisions for the restaurant to apply.
1, Upon receiving the goods and the delivery record of the suppliers, the relevant
departments receive the goods and must sign for confirmation on the delivery
record.
2, Then transfer the delivery record immediately to the cashier the restaurant, the
supermarket proceeds to write a receipt.
3, The order tickets between supermarkets, kitchens, and restaurants need to be
transferred quickly, avoiding loss.
- The company needs to have suitable sales solutions to avoid the increase seafood
prices due to the influence of external factors. The company needs to stabilize the
price level for customers to avoid the case of weather factors, market increases in
prices of seafood products. The high buying price also led to a significant impact
on the business situation of the company. The company should introduce
marketing policies to attract the restaurant's sales ability.

Student: Nguyễn Thị Hải Yến 110 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

3.4. CONDITIONS FOR IMPLEMENTING SOLUTIONS

First of all, the company must have a team of accountants with real
competence, good speciality and working for the common benefit of the business.
Accountants are the ones who directly perform the accounting work and directly
implement the solutions. Therefore, in order to perfect the accounting work in the
enterprise, accountants must improve their skills and regularly update the issued
standards and documents. Accountants must analyze to find solutions, flexibly
respond to fluctuations, deviations from reality and plans.
Besides, the company must have a complete system of equipment.
Accounting work requires meticulous not to miss any stage. Therefore, to reduce
the work for accounting, it is necessary to have software and equipment systems
replaced at some stages. The company needs to equip complete equipment systems
and have the ability to improve technology superiority.
Finally, the stability of macroeconomic policy. The Government and the
Ministry of Finance are competent agencies to promulgate regulations and
standards affecting all economic entities and arising economic activities.
Therefore, the stability of macroeconomic policies is essential for the development
of every business.
Above are some of my subjective ideas to improve the accounting work of the
company in general and the accounting of revenue, expenses and business results
in particular at Viet Nhat Food Joint Stock Company. However, with my limited
knowledge, I look forward to contributing ideas and suggestions so that the
company can complete the best accounting work and provide accurate and timely
accounting information.

Student: Nguyễn Thị Hải Yến 111 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

CONCLUSION OF CHAPTER 3
In chapter 3, focused on clarifying the requirements, content and conditions to
improve the accounting for revenue, expenses and determine business results in
commercial enterprises from the perspective of financial accounting at Viet Nhat
Food Joint Stock Company.
By proposing solutions to improve the accounting for revenue, expenses and
determine business results in commercial enterprises, the thesis has clarified the
importance of accounting for revenue, expenses and determining the business
results in general and commercial enterprises in particular. The issues presented in
chapter 3 have provided the necessary arguments to improve the accounting for
revenue, expenses and determining business results at Viet Nhat Food Joint Stock
Company.

Student: Nguyễn Thị Hải Yến 112 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

CONCLUSION
In today's competitive environment, businesses must always make more efforts
with their own capabilities to survive and develop. To achieve this, accounting in
general and accounting for revenues, expenses and determining business results in
particular need to be strengthened and improved to make it become a financial
management tool and business activities of the enterprise. Once again, we can
affirm: "Accounting for revenue, expenses and determining business results play a
very important role in the process of production and business of enterprises".
Through this accounting activity, businesses can evaluate their production and
business efficiency, cost efficiency, and find out the causes and solutions for
accounting for sales and determining business results in particular and accounting
activities in general are getting better and better, production and business
efficiency is higher.
Being aware of that, Viet Nhat Food Joint Stock Company has been very proactive,
interested in business management and determination of business results. In which
finance - accounting department has contributed significantly to the overall success
of the company. Therefore, although there are some shortcomings, the company
has achieved good results in business, enabling the company to grow and stand
firm in its field of business.
Through the learning process at the Academy of Finance and the practical study at
Viet Nhat Food Joint Stock Company, with the close guidance of supervisor
MSC.Nguyen Ba Linh, as well as everbody in the Finance - Accounting
Department, helped me research on the topic of "Accounting for revenue, expenses
and determining business results at Viet Nhat Food Joint Stock Company". In this
thesis I have raised the following issues:
The thesis has systematized the general theoretical issues on the accounting for
revenues, expenses and business results in enterprises.

Student: Nguyễn Thị Hải Yến 113 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

Through the internship at the company, the thesis presented the current situation of
accounting for revenue, expenses and business results at Viet Nhat Food Joint
Stock Company. Since then, I have given the advantages in the accounting for
revenue, expenses and business results in the company:
- The accounting system is organized scientifically and closely, with supervision
among departments
- The company uses Misa accounting software to help work more accurately and
quickly.
- The company fulfills its obligation to contribute to the State Budget on time and
in full payment; ....
And some shortcoming like:
- Restrictions on books and accounting documents
- Restrictions on business characteristics
- Restrictions on professional qualifications and technology;.....
On that basis, the dissertation has made a number of recommendations to complete
the accounting for revenue, expenses and business results at the company such as:
- The accountant should identify the correct transactions to avoid the wrong
accounting
- The handling of vouchers needs to be unified among business establishments.
- Each employee needs to improve their own professional capacity as well as
information technology;....
But between theory and practice, there is always a certain gap. With limited social
knowledge and awareness, limited practice time, the thesis cannot avoid
shortcomings. I look forward to the input of teachers, along with the girls in the
accounting department to improve my awareness.
Finally, I would like to express my sincere thanks to MSC. Nguyen Ba Linh for
helping me to complete this thesis. I would like to express my sincere thanks to the

Student: Nguyễn Thị Hải Yến 114 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

leadership and staff of the finance and accounting department of Viet Nhat Food
Joint Stock Company for your interest in, facilitating and helping to guide me
during the internship. !

Student: Nguyễn Thị Hải Yến 115 CQ54/21CL.02

Graduation thesis Supervisor: MSC.Nguyễn Bá Linh

REFERENCES
1, Financial Accounting Curriculum, Academy of Finance
2, Circular No. 133/2016 / TT-BTC August 26, 2016 of the Ministry of Finance
3, Vietnam Accounting Standards.
4, International Accounting Standards
5, Dissertation of the above courses.
6, System of vouchers, books, financial statements of Viet Nhat Food Joint Stock
Company.

Student: Nguyễn Thị Hải Yến 116 CQ54/21CL.02

 NHẬN XÉT CỦA GIÁO VIÊN HƯỚNG DẪN

Họ và tên giáo viên hướng dẫn : ThS. Nguyễn Bá Linh

Họ tên sinh viên thực hiện : Nguyễn Thị Hải Yến
Tên đề tài luận văn : “Accounting for revenue, expenses and
business results at Viet Nhat Food Joint Stock Company”

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Điểm:
Bằng số: .................................................Bằng chữ:.........................................

Hà Nội, ngày.......tháng.......năm 2020

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 NHẬN XÉT CỦA GIÁO VIÊN PHẢN BIỆN

Họ và tên người phản biện:.................................................................................

Nhận xét quá trình thực tập tốt nghiệp của sinh viên: Nguyễn Thị Hải Yến
Khóa: 54 ; Lớp: CQ54/21CL.02
Đề tài luận văn: “Accounting for revenue, expenses and business results at Viet
Nhat Food Joint Stock Company”

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Điểm:
Bằng số: .................................................Bằng chữ:.........................................

Hà Nội, ngày.......tháng.......năm 2020

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