ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY

ABSTRACT I DISCLAIMER II ACKNOWLEDGEMENTS III LIST OF ABBREVIATIONS VI LIST OF DIAGRAMS VII RESEARCH PROPOSAL 1 CHAPTER 1: LITERATURE REVIEW OF ACCOUNTING FOR SALES AND DETERMINING BUSINESS INCOME 3 1.1. OVERVIWE OF ACCOUNTING FOR SALES DERTERMINATION OF BUSINESS INCOME 3 1.1.1. Concept of accounting for sales and determination of business activity results 3 1.1.2. The meaning of accounting for sales and determination of business results 7 1.1.3. Task of accounting for sales and determination of business results 7 1.2. THE METHOD OF SALES AND PROCEDURES VOUCHERS 7 1.2.1. The method of sales 7 1.2.2. Procedures, vouchers 8 1.3. ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULT 9 1.3.1. 9 Accounting for revenue from sales and providing service 9 1.3.2. Accounting for sales deductions 12 1.3.3. Accounting for cost of goods sold 15 1.3.4. Accounting for selling expenses 17 1.3.5. Accounting administrative expenses 20 1.3.6. Accounting for financial income 22 1.3.7. Accounting for financial expenses 24 1.3.8. Accounting for other income 26 1.3.9. Accounting for other expenses. 28 1.3.10. Accounting for income tax expenses 29 1.3.11. Accounting for determining of business results 31 CHAPTER 2: METHODOLOGY OF ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 33 2.1. INTRODUCTION OF NAM ANH DUC LIMITED LIABILITY COMPANY 33 2.1.1. History and developement of Nam Anh Duc Limited Liability Company 33 2.1.2. Organizational structure of management of the company: 35 2.1.3. Organization of accounting system in the company 38 2.2. ACTUAL SITUATION OF ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULTS AT IN NAM ANH DUC CO., LTD: 41 2.2.1. Accounting for revenue from sales and providing service 41 2.2.2. Accounting for sales deduction 50 2.2.3. Accounting for cost of goods sold 50 2.2.4. Accounting of selling expenses 59 2.2.5. Accounting for administrative expense 67 2.2.6. Accounting for financial income: 75 2.2.7. Accounting for financial expenses 79 2.2.8. Accounting of other income 84 2.2.9. Accounting of other expenses 88 2.2.10. Accounting determines consumption results 92 CHAPTER 3: SOME SUGGESTIONS OF CONSUMPTION ACCOUTING AND DETERMININNG BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 98 3.1. SOME GENERAL COMMENTS ON ACCOUNTING SYSTEM AND CONSUMPTION ACCOUTING AND DETERMININNG BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 98 3.1.1. General comment on the accounting system 98 3.1.2. General comments on accounting for sale and determining business results at company 99 3.2. SOME SUGGESTIONS FOR IMPROVEMENT OF COMPANY’S ACCOUTING FOR SALE AND DETERMINING BUSINESS RESULTS AT NAM ANH DUC LIMITED LIABILITY COMPANY 101 3.2.1. Some suggestions for improvement of accounting system 101 3.2.2. Some suggestions for improvement of accounting for sale and determining business results 102 CONCLUSION 103 BIBLIOGRAPHY 104 SUPERVISOR’S CONFIRMATION 105

LITERATURE REVIEW OF ACCOUNTING FOR SALES

OVERVIWE OF ACCOUNTING FOR SALES & DERTERMINATION OF

1.1.1 Concept of accounting for sales and determination of business activity results

1.1.1.1 Concept of accounting for sales

A sale involves transferring ownership of a product, good, or service to a customer, while also entitling the seller to receive payment The income generated from these sales is referred to as revenue, and it can be recorded either prior to or during the collection of funds.

There are two forms of sales:

1.1.1.2 The concept of accounting determines consumption results

Consumption results in an enterprise are the results of production and business activities, financial performance results and other operating results.

The outcome of production and business activities is determined by subtracting the costs associated with goods sold, selling expenses, and administrative expenses from the net sales of goods and services.

Financial performance is the difference between a financial revenue from one side and a financial expense on the other.

The determination of business results in an enterprise is usually conducted at the end of the period and such results are expressed in profit indicators.

Turnover represents the total economic benefits an enterprise gains during an accounting period from its regular business and production activities, which ultimately enhances equity Revenue from transactions is based on agreements between the enterprise and the buyer, calculated at fair value after accounting for trade discounts, sales rebates, and returns To accurately record revenue, certain conditions must be met.

Turnover and expenses related to the same transaction must be simultaneously recognized according to the matching principle and must comply with the fiscal year.

In accordance with Points 10, 16, and 24 of the Standard for Revenue and Other Income under the current accounting regime, revenue can only be recognized in the accounting period when the criteria for recording sales revenue, service income, interest income, royalties, dividends, and shared profits are simultaneously met.

When the conditions for revenue recognition are not satisfied, the revenue account is not recorded.

 According to Point 10 of the Revenue and Other Income Standard - the current accounting regime, sales revenue is recognized when all five of the following conditions are simultaneously met:

1 The enterprise has transferred most of the risks and benefits associated with ownership of the product or goods to the buyer.

2 The enterprise retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

3 Turnover is determined with relative certainty.

4 The enterprise has gained or will gain economic benefits from sales transactions.

5 Determining expenses related to sales transactions.

 According to Point 16 of the Revenue and Other Income Standard - the current accounting regime, the transaction revenue of service provision is recognized when all four following conditions are satisfied:

1 Turnover is determined with relative certainty.

2 Being able to obtain economic benefits from the service provision transaction.

3 Determining the completed work piece on the date of making the Balance Sheet.

4 Determine the costs incurred for the transaction and the cost to complete the transaction to provide that service.

According to Point 24 of the Revenue and Other Income Standard, the current accounting framework recognizes revenue from interest, royalties, dividends, and shared profits when it meets specific criteria, outlined in four essential conditions.

1 Being able to gain economic benefits from such transactions.

1.1.1.4 Cost of goods sold concept

The cost of goods sold (COGS) is a crucial economic indicator that represents the total expenses deducted from net revenue to assess a business's performance for each accounting period This figure is typically recognized concurrently with revenue, following the appropriate accounting methods for sales and deductible expenses.

Businesses acquire goods for warehousing, immediate delivery, or consignment from various sources, leading to fluctuating values over time To accurately determine the actual price of warehouse inventory, it is essential to employ one of several calculation methods.

- First in - First out (FIFO) method.

1.1.1.5 The concept of selling expenses

Selling expenses refer to the costs incurred by businesses for the promotion and sale of their products or services These expenses include salaries and commissions for sales personnel, costs associated with sales tools, and advertising expenditures Understanding selling expenses is crucial for businesses to manage their budgets effectively and optimize their sales strategies.

1.1.1.6 General and administration expenses concept

General and administration expenses encompass costs that are essential for the overall operation of a business and cannot be attributed to any specific activity These expenses include various categories, such as those related to managing inventory consumption, administrative functions, and other general operational costs.

1.1.1.7 Concept of revenue from financial activities

Receivables encompass various income sources, including interest earnings, income from asset leasing and rentals, dividends, and shared profits They also include revenues from securities investment and trading, as well as income generated from the transfer or lease of infrastructure Additionally, receivables can arise from other investment activities, interest differentials from foreign currency sales, and differences in transfer interest and capital.

Financial expenses encompass costs associated with financial investment activities, including losses from loans, borrowings, and capital contributions to joint ventures and associates This category also includes expenses related to the transfer of short-term securities, transaction costs for securities, provisions for the devaluation of securities investments, and losses incurred from selling foreign currencies and exchange rate fluctuations.

Infrequent activities generate various types of receivables, including revenues from the sale of goods, redundant assets, and fully allocated tools, which may not require immediate payment Additionally, revenues can arise from asset liquidation, the recovery of previously written-off bad debts, and the reversal of provisions for inventory devaluation.

Expenses arising from distinct events or operations outside the normal activities of enterprises include costs related to the liquidation and sale of fixed assets, as well as their residual values Additionally, they encompass losses from the revaluation of supplies, goods, and fixed assets contributed to joint ventures, investments in associated companies, and other long-term investments Other notable expenses include fines for breaching economic contracts, retrospective tax payments, and various miscellaneous costs.

1.1.2 The meaning of accounting for sales and determination of business results

The consumption of finished products is crucial for a business's success, as it directly influences competitiveness and market prestige Sales figures serve as key indicators of overall quality and reflect the financial outcomes of business operations A strong financial performance indicates effective management and provides opportunities for enhancing financial capacity.

Business results play a crucial role in helping companies monitor their activities through key performance indicators These indicators enable businesses to pinpoint the factors influencing their operations, ultimately fostering an environment conducive to effective development and growth.

1.1.3 Task of accounting for sales and determination of business results

Calculate, record, accurately reflect expenses related to business results to accurately reflect business results through each period and each activity.

Timely accounting of profit distribution situation, providing sufficient data for the quarterly finalization.

Participate in stocktaking, evaluation, reporting periodic business results,monitoring the payment situation and business results of the business.

THE METHOD OF SALES AND PROCEDURES VOUCHERS

In this method, the buyer designates professional staff to receive goods at warehouses or factories upon purchase Once the transaction is finalized and sale documents are signed, the goods are considered consumed, and the buyer assumes all losses incurred during transportation (Pham & Associate, 2011).

Under this method, businesses ship goods to agents based on contractual terms, while retaining ownership until the items are sold Upon contract completion, businesses provide agents with a remuneration known as an agency commission, which is calculated as a percentage of the total sales price and recorded in the sales account (Pham & Associate, 2011).

1.2.1.3 Deferred or installment payment method

Middle-income consumers often purchase high-value items through deferred installment payment plans, allowing them to pay a portion upfront at the time of purchase and the remainder over several periods This method, while convenient, typically includes an interest rate known as deferred or installment interest (Pham & Associate, 2011).

Under this method, a business transfers goods to the buyer as per a signed sales contract, retaining ownership until payment is made or accepted through a signed delivery voucher Once the goods are delivered, they are considered consumed, and the business bears any losses incurred during shipping This approach is typically used for customers who maintain regular purchasing relationships with the enterprise (Pham & Associate, 2011).

Businesses can utilize their products not only for sales but also for paying salaries, employee bonuses, and acquiring materials and goods as requested by the state (Pham & Associate, 2011).

When processing sales, it is essential for the seller to issue appropriate invoices, such as Ministry of Finance VAT invoice deductions, VAT invoices, or registered and approved invoices Additionally, related documents like cash receipts, delivery bills, bank notices, and sales lists are important Upon receiving a written purchase request from a customer, the chief accountant must evaluate whether to approve the sale If approved, the request is signed by the chief accountant and sent for director approval Once approved, the purchase request is forwarded to the warehouse, where storekeepers create a delivery bill based on the purchase amount This delivery bill is then submitted to the accounting department for VAT invoicing The VAT invoice is prepared in triplicate: one copy is retained in the receipt book, the second is given to the customer, and the third is used for internal record-keeping.

ACCOUNTING FOR SALES AND DETERMINING BUSINESS RESULT

Accounting for revenue from sales and providing service

Accountant uses the following vouchers to record sales:

- Sales Invoices: Used in enterprises that apply tax in direct method or items that are not subject to VAT.

- VAT Invoice: Used in enterprises that apply tax on deductible method

- Economic contract, order, delivery arrangement, inventory of sold goods, inventory or invoice and storage.

- Payment Documents: coupon, bank statement

The subsidiary ledger for Account No 511, which pertains to revenue from sales and services, is utilized by the accountant in accordance with Decision No S35 - DN, as outlined in Circular No 200/2014/TT-BTC issued by the Vietnamese Ministry of Finance.

Exhibit 1-1: Sales Subsidỉay Ledger of Account No 511

(Circular 200/2014/TT-BTC) b Accounting method

- Column A: To write the date which an accountant writes into the book

- Column B, C: To write the number sign and date of the document which used to write into the book.

- Column D: To write the content of the accounting event accrued.

- Column E: To write the contrast account.

- Column 1, 2, 3: To write the quantity, unit price, total price of the product which supplied by the business.

- Column 4: To write VAT accounted base on the sales of the business.

- Column 5: To write the sales deduction like: Trade discounts, sales return and allowance.

To accurately calculate the financial metrics, first, input "The number accrued" and then tally the "Net sales." Subsequently, update Column 3 using the formula: Column 3 = Column 3 - (Column 4 + Column 5) Finally, record the "Cost of goods sold" reflecting the expenses associated with the products sold or services provided.

“Gross margin” = “Net sales” – “Cost of goods sold”

Each day, accountants meticulously review sales documents and accounting records to prepare vouchers These vouchers serve as the foundation for creating a voucher register, which is then posted to the ledger All accounting documents used in voucher preparation are recorded in detailed sales books or notes At the end of the month, accountants finalize the process by journalizing closing entries.

Accounting for revenue from the sales and providing service uses Account

511 - Sales Revenue Structure and content of Account 511:

- Accounts payable indirect taxes (VAT, TNDB, export, environmental).

- Sales revenue are returned transferred end of the period.

- The transfer for trade discount sales returns and sales allowances.

- The transfer for net revenue into account 911 "business result".

- Revenue from sales of products goods, real estate investment and service by business in the accounting period.

Account 511 has no ending balance

 Account 511 - sales and service providers, account 6 Level 2:

- Account 5117: Investment real estate sales

- Account 5118: Other sales b Accounting method

Following the Circulars 200/2014/TT-BTC

Exhibit 1-2: Subsidỉay Ledger of Account No 521-Sales deductions

(Circular 200/2014/TT-BTC) b Accounting method

Sales deductions (if any) are recorded in column 5

- Net sales is record in column 3: column 3 = column 3 - column 4 - column 5

- COGS: record cost of goods sold (products, real estate investment and services)

- Gross profit = Net sales - COGS

Accounting method of Account 521- Accounting for sales deduction similar accounting method of Account 511 - Accounting for revenue from the sales and providing service.

Accounting for sales deduction uses Account 521 - Sales revenue deduction. Structure and content of Account 521:

- Trade discount has accepted payment for customers.

- Sales allowances approved by the buyer.

- Sales returned has refunded to buyers or deducted from the account receivable from customers on the number of sold.

- At the end of period, transfer all trade discount, sales returns and sales allowances to Account 511 - Sales Revenue to determine net revenue of reporting period.

Account 521 - Sales deduction has three accounts level 2:

- Account 5213: Sales allowances b Accounting method

1.3.3 Accounting for cost of goods sold

Accountant uses the following vouchers:

- For COGS the vouchers used are inventory delivery note

- Some other relevant documents (if any).

Accountant uses COGS subsidiary ledger to record COGS in the period

Exhibit 1-3: Subsidỉay Ledger of Account No 632

(Circular 200/2014/TT-BTC) b Accounting method

Based on the book details the business costs of production period - the

"Closing", to be filled in the "Opening balance" in the appropriate column (Column

The "Number in the period": Based on the accounting documents (original documents, allocation table) to record in the production and business details as follows:

- Column A: To write the date which an accountant writes into the book

- Column B, C: To write the number sign and date of the document which used to write into the book

- Column D: To write the content of the accounting event accrued

- Column E: To write the contrast account

- Column 1: To write the total amount of the accounting event accrued

To accurately reflect the accounting event, it's essential to allocate the accrued expenses into the appropriate columns from 2 to 8 This ensures that each business account's requirements are met effectively Proper categorization of expenses enhances financial clarity and supports better decision-making for the organization.

- The row of “Ending inventory” determined following:

Ending inventory = Beginning inventory + Debit accrued – Credit accrued 1.3.3.3 General accounting. a Account used

Accounting for Cost of goods sold uses account No 632 - Cost of goods sold (COGS) Structure and content of account No 632:

- Costs of raw materials, labor costs in excess of normal levels and manufacture overhead expenses fixed non-allocated are included in the COGS in the period

- Loses of inventory after deducting the compensation due to personal responsibility

- Provision for devaluation of inventory

- Cost of construction and homemade fixed assets exceeding the normal level is not included in the original cost of self-constructed and self-made tangible fixed assets

- Transfer the cost of products, goods and services sold during the period toAccount 911

- The reversal of provision for devaluation of inventories at the end of the fiscal year

- Value of returned goods sold

- The trade discount, sales discount received after the purchase has been consumed

- The refund of accrued expenses for estate goods is determined to be sold It will be refunded when selling goods

Account 632 - Cost of goods sold has no ending balance. b Accounting method

Diagram 1-3: Accounting for cost of goods sold

- Allocation table wages and social insurance

- Depreciation Expense related to Selling Department

Exhibit 1-4: Subsidiary Ledger of Account No 641 – Selling expenses

(Circular 200/2014/TT-BTC) b Accounting method

Similarly, the accounting method of the accounting for the cost of goods sold.

Accounting for selling expenses uses account No 641 - Selling expenses. Structure and content of account No 641:

- The costs incurred related to the sale of products, goods and services provided during the period.

- Amounts recorded to reduce selling expenses

- Transferring Selling expenses into Account 911 – Determining of business results

Account 641 - Selling expenses has no ending balance.

Account 641 - Selling expenses has six accounts level 2:

- Account 6417: Outside purchasing service cost

- Account 6418: Other cost b Accounting method

Diagram 1-4 Accounting for selling expenses

Accountant uses the following vouchers:

- Allocation table wages and social insurance

Accountants utilize an administrative expenses subsidiary ledger to systematically record administrative expenses for each accounting period This process closely mirrors the accounting procedures used for recognizing revenue from sales and services, ensuring consistency and accuracy in financial reporting.

The accounting method is similar to accounting for revenue from sales and providing services.

- Actual enterprise management expenses incurred in the period.

In accounting, provisions for doubtful receivables and provisions payable are crucial for financial accuracy When the current period's provision requirement exceeds the unused reserves from the previous period, it indicates a need for increased financial caution This difference highlights the importance of regularly assessing receivables to ensure adequate coverage for potential losses, thereby maintaining the integrity of financial statements.

- Amounts recorded to reduce administrative expenses;

In this period, it is essential to reverse provisions for doubtful debts and adjust the provision for payables, ensuring that the difference between the required provision and any unused reserves from the previous period is accurately reflected.

- Carryin over management expenses into account Number 911

Account 642 - Administrative expenses has no ending balance.

Account 642 - Administrative expenses has eight accounts level 2:

- Account 6427: Outside purchasing service cost

- Account 6428: Other cost b Accounting method

Diagram 1-5 Accounting for administrative expenses

Accountant uses the following vouchers:

Accountant uses subsidiary ledger Number 515 - Financial Income to record financial income earned in the period.

Exhibit 1-5: Subsidiary Ledger of Account No 515 – Financial income

(Circular 200/2014/TT-BTC) b Accounting method

Book details the accounts opened by each account, payment for each object (each content costs, capital ).

- Column A: Write the date of record books

- Column B, C: Write the number sign and date of the voucher used

- Column D: Write summary of transactions incurred

- Column E: Write the reciprocal account

- Column 1,2: Write the amount incurred on debit or credit

- Column 3,4: Write the debit or credit after any transactions incurred

- The row of Beginning Inventory is the number amount in the “Ending Inventory” to write in column 3 or column 4.

- The payable VAT amount calculated by the direct method (if any)

- Close financial income to income summary 911 to determine business result.

- Financial income incurred in period.

 Account 515 - Revenue from financial activities has no ending balance.

 Account 515 - Revenue from financial activities has no account level 2

Account 515 has no ending balance b Accounting method

Diagram 1-6 Accounting for financial income

Accountant uses the following vouchers:

- The vouchers used are debit note

- Purchase invoices with foreign currency payment…

Same as accounting method for subsidiary ledger 515 b Accounting method

Same as accounting method for subsidiary ledger 515

- Expenses on loan interests, interests on deferred purchase goods, interest from financial leasing assets;

- Loss from foreign currency sale;

- Discount payment to the buyer;

- Losses due to liquidation or transfer of investments;

- Loss of exchange rate arising in the period; Foreign exchange losses due to revaluation at the end of the financial year with monetary items denominated in foreign currencies;

- Amount of provision for devaluation of trading securities, provision for investment losses in other entities;

- Other expenses of financial investment activities

- Refunding provision for devaluation of trading securities, provision for loss of investment in other units

- Amounts recorded to reduce financial expenses

- At the end of period, transfer all financial activities expenses incurred in the period to determine business results

Account 635 has no closing balance b Accounting method

Diagram 1-7: Accounting for Financial expenses

Accountant uses the following documents:

- Records of fixed assets liquidation

- Receipt and other related documents

Accountants utilize an other income subsidiary ledger to document additional income earned during the accounting period This process follows a detailed procedure akin to that used for recording revenue from sales and services provided.

The accounting method is similar to accounting for revenue from sales and providing services.

Accounting for other income uses Account 711 - Other incomes Structure and content of Account 711:

- VAT payable (if any) calculated by directing method with other income of business pays VAT by directing method.

- Closing entry for other income incurred in period into 911 account to determine business result.

- Other income incurred in the period

Account 711 has no ending balance b Accounting method

Diagram 1-1: Accounting for other incomes

Accountant uses the following documents:

- Minutes of liquidation of fixed assets

Accountants utilize a subsidiary ledger for other expenses to accurately track and record these costs within a specific period This detailed accounting process closely mirrors the methods used for documenting revenue generated from sales and services.

The accounting method is similar to accounting for revenue from sales and providing services.

Account for other expenses uses Account 811 - Other expenses Structure and content of Account 811:

- At the end of the period, transfer all other expenses incurred in the period to Account 911 "Determining business income".

 Account 811 - Other expenses has no ending balance.

 Account 811 - Other expenses has no account level 2

Account 811 has no closing balance b Accounting method

(The ministry of Finance, circular 200, Article 94, Clause 3)

Diagram 1-2: Accounting for other expenses

1.3.10 Accounting for income tax expenses

Accountant uses the following documents:

Accountants utilize an income tax expenses subsidiary ledger to accurately record income tax expenses for a specific period This detailed accounting process closely resembles the procedures used for recording revenue generated from sales and services provided.

The accounting method is similar to accounting for revenue from sales anf providing services.

- Current income tax incurred in the period.

- Curent income tax payable of previous year to payable of previous year due to detecting not significant errors of the previous year.

The actual income tax payable that firms have to submit in year is smaller than the rent payable immersed deduction on income tax expense that was recorded operating business

Account 8212 and the larger the arising amount on the Credit side of Account

8212 "Deferred enterprise income tax expenses" arising in the period to the Debit side of Account 911 - "Determining business income”.

Account 821 - Income tax expense has no ending balance

Account 821 has two accounts level 2:

 Account 8211: Current business income tax charge

 Account 8212: Deferred business income tax charge

Account 821 account has no ending balance

Diagram 1-10: Current corporate income tax expense accounting

Diagram 1-11 Accounting deferred income tax expenses

1.3.11 Accounting for determining of business results

Accountants utilize subsidiary ledgers to accurately record business results for a specific period This detailed accounting process closely resembles the procedures used for recognizing revenue from sales and services provided.

The accounting method is similar to accounting for revenue from sales and providing services.

- Cost of goods sold, products,real estate supplied service and service

- Financial operation expenses, corporate income tax and other expenses.

- Selling expenses and administration expenses.

- Net revenue on the number of products, goods, investment properties and services sold in the period;

- Revenue from financial activities, other incomes and deductions for reduction of corporate income tax expenses;

 Account 911 - Determining business income has no ending balance.

 Account 911 - Determining business income has no account level 2.

Account 911 has no ending balance b Accounting method

Diagram 1-12 Accounting for determining business results

METHODOLOGY OF ACCOUNTING FOR SALES AND

History and developement of Nam Anh Duc Limited Liability Company33 2.1.2 Organizational structure of management of the company

NAM ANH DUC LIMITED LIABILITY COMPANY

Tax code: 0401517211 Date of issue: 07/11/2012

Transaction name: NAM ANH DUC CO.,LTD

Address: 958 Ngo Quyen, An Hai Tay Ward, Son Tra District, Da Nang City.

Website: https://www.thongtincongty.com/company/5111bddb-cong-ty-tnhh- nam-anh-duc/

Email: namanhduc.co@gmail.com

Legal representative: Pham Thi Thanh Huong

Director of the company: Vu Loc Anh

2.1.1.2 Development of Nam Anh Duc Limited Liability Company

Nam Anh Duc Limited Liability Company was established on November 7th,

Since its inception in 2012 as a small business with a dedicated team, Nam Anh Duc has evolved over nearly eight years of operation to become a reputable confectionery importer, distributor, and manufacturer in Da Nang, overcoming numerous challenges along the way.

- Wholesale of food (main business)

- Retail sale of food, food, beverages, cigarettes, and pipe tobacco accounts for a large proportion in general stores.

Established in 2012, Nam Anh Đức has over eight years of experience in production and business, leading to significant growth The company has successfully partnered with supermarkets and distributors across the country, fostering consumer trust and confidence in its products.

To gain a competitive edge in the market and effectively adapt to fluctuations, the company prioritizes training, technological investment, and product quality enhancement As a result, the company's product offerings are becoming more diverse while maintaining high standards of quality and reputation.

2.1.1.3 Vision, Mission and Values a Vision of Nam Anh Duc Limited Liability Company

The company prioritizes market research and customer psychology to address the evolving needs of consumers By evaluating and surveying existing products, it enhances and introduces new offerings with appealing designs that resonate with customer preferences This approach solidifies Nam Anh Duc's expanding presence in the confectionery industry.

Bring world famous Food Technology products with high quality, luxurious designs and affordable prices to Vietnamese consumers. b Nam Anh Duc Mission

Despite anticipating numerous challenges ahead, the leaders and team members of the Company remain committed to the nation's industrialization and modernization efforts, resolutely striving to achieve their annual growth objectives.

At Nam Anh Duc Limited Liability Company, our commitment to customer satisfaction drives every aspect of our operations We continually strive to innovate beyond traditional confectionery, actively exploring new product lines in both Asian and European markets.

- Trust and respect each other

2.1.2 Organizational structure of management of the company:

2.1.2.1 Diagram of the management structure

Diagram 2-1 Chart of company organizational

2.1.2.2 Functions and tasks of the management apparatus

The director serves as the head of the organization, overseeing all business activities and holding ultimate responsibility before the company's board of directors Acting as a representative of employees' rights and obligations, the director also gathers essential information from department heads regarding customers and competitors.

BUSINESSDEPARTMENT(SALES)DEPUTY DIRECTOR plans to inform the corporation knows abount the market situation to support the promotion program, the price to solve when the market volatility.

The Deputy Director plays a crucial role in supporting the General Director by managing specific tasks and responsibilities as delegated This position not only assists in the daily operations of the company but also has the authority to oversee company functions during certain periods Both the General Director and Deputy Director share accountability to their superiors for their respective areas of responsibility.

 Organizing the implementation of financial work in accordance with state regulations.

 Update the documents on input,output and inventory, check the costs in the purchase process.

 Checking, reconciling, records, and accounting.

 Settlement of salary, bonus, maternity

 Paying for contracts, participating in negotiating economic contracts.

 Planning business capital needs periodically, timely debt collection, handles debt collection cases slow, misappropriation of funds.

 Implementation of reporting and analysis of the business activities of enterprises.

The role involves preparing monthly reports on personnel fluctuations and overseeing human resource management, including recruitment, employee allocation, layoffs, and training of new staff Additionally, it includes drafting and archiving various documents, records, contracts, and official information related to the company, as well as receiving and monitoring official documents, directives, and decisions.

 Organize, implement, implement the labor regulations of the Company,monitor labor management, propose rewards Implement regulations to ensure rights and obligations towards employees such as salaries, bonuses, benefits, benefits,….

Collaborate with the accounting department to ensure the timely payment of salaries, bonuses, and employee benefits, while adhering to the regulations set by both the State and the Company for social insurance contributions.

 Advising leaders on business strategies

 Develop business plans and strategies by month, quarter and year

 Supervise and check the quality of work, products of other departments to provide customers with high quality and service.

 Have the right to research and propose to leaders of business strategies

 Research the proposal and selection of joint venture and association investment partners

 Planning to purchase equipment and machinery for business and production activities

 Regularly report on the strategic situation, alternatives, and cooperation with clients.

 Research the market, the competition

 Building PR and marketng strategies for products by stages and target customers.

Organization of accounting system in the company

2.1.3.1 Accounting organization chart a Diagram of accounting labor structures

Diagram 2-2 Chart of accounting organization b Functions and tasks of the accounting apparatus

The chief accountant plays a crucial role in directing and assigning accounting tasks based on the skill levels of the staff within the department They have the authority to participate in company meetings and make decisions regarding business matters, financial management, investment strategies, and business expansion Additionally, chief accountants are responsible for enhancing the material well-being of employees.

- General accounting: The total cost of production, product costing.

Statistical reports on production,sales and turnover with the agencies according to the regulations of the state, the monthly tax calculation.

- Receivable Accountant: The person responsible for monitoring, urging and settling debts of the company or enterprise The person doing the debt accounting

Accountant Treasurer must always ensure that the debt exists only within the permitted extent, avoiding the debt backlog, affecting the financial development of the company.

A payable accountant is responsible for managing and monitoring all receipts and expenditures, ensuring accurate accounting of economic and financial transactions This role involves overseeing cash flow related to payments made to both internal and external entities within the business.

A Sales Accountant is responsible for maintaining accurate bookkeeping that aligns with the accounting practices of the sales organization This role involves monitoring sales performance through tracking documents, analyzing fluctuations in sales volume, and adjusting for changes in product pricing throughout the business cycle.

A Warehouse Accountant is responsible for the comprehensive management and oversight of all import, export, and inventory activities, including materials, tools, and goods stored for use or sale This role involves meticulous record-keeping through various documentation methods, such as warehousing slips and inventory cards, ensuring precision and attention to detail in all transactions.

- Tax Accountant: based on input VAT, tax accountant needs to track and make purchase invoices, sales invoices and make detailed lists, tax returns

The treasurer oversees all financial activities within the enterprise, managing revenue and expenditure processes, including verifying receipts and payment notes This role involves signing certifications and handling bonds and advances, while also ensuring that all related documentation is meticulously organized and stored.

- The company applies the form of General Journal and applies Circular No.200/2014/TT-BTC Dated Dec.22nd 2014 of Vietnamese Ministry of Finance.

- The company applies Misa Accounting Software on accounting work.

- The accounting order into software as follow:

Periodic or end-of-month records:

Diagram 2-3 The accounting process of general vouchers

 The sequence of accounting according to the diagram

Accountants are required to record every transaction in the general diary based on legal and valid original vouchers, ensuring that each entry complies with established guidelines This process involves documenting multiple lines within a single clause to maintain accurate financial records.

In accounting, all journal entries must be systematically recorded in the corresponding ledger accounts for each transaction Specifically, daily cash transactions are documented by the cashier in the cash register, ensuring accurate financial tracking.

- Vouchers related to the objects that need detailed accounting are also recorded in relevant detailed books

- At the end of the month, add the detailed accounting books and cards to get data to make detailed general reports

At the end of each month, tally the total number of accounts and compare these figures with the corresponding detailed summary Use the reconciled ledger to balance any discrepancies in the accounts that have arisen.

At the end of the month, a reconciliation of the accounts is conducted, leading to the preparation of a detailed summary sheet This includes the specific Japanese period number necessary for generating essential accounting reports, such as the balance sheet, business closing report, and retention report for currency transfers.

ACTUAL SITUATION OF ACCOUNTING FOR SALES AND

The sales process at the company is carried out as follows:

Each day, accountants meticulously document transactions in the General Journal, General Ledger, and Subsidiary Ledger based on invoices and related vouchers In 2020, the company engaged in numerous sales transactions This section will focus on illustrating the accounting process for two specific transactions that occurred on December 31st.

- On December 31, 2020, the enterprise sold goods to Pham Thi Xuan Binh customers under invoice No.0008546, the price was 5,470,144 VND, excluding 10% VAT.

- Accountant prepared VAT invoice as follows:

Accountants collect sales money and make receipts

Customer pays money with salesperson

Delivery staff based on invoices and delivery bills delivered to customers

Accounting for orders, delivery bill, sales invoice

Sales consultants and quotes to customers, customers ordering

- On December 31, 2020, the Company sold goods to Tieu La Primary School according to invoice 0008553, the selling price is VND 16,557,091,excluding 10% VAT.

- Accountant prepared VAT invoice as follows:

- Based on VAT invoice, the accountant has prepared cash receipt for invoice

- Based on the VAT invoice, the accountant shall issue a credit notice to invoice 0008553 as follows:

After completing a sale and issuing an invoice to the customer, the accountant promptly records the transaction in the Sales Subsidiary Ledger under Account 511 – Sales Revenue This process is crucial for accurate financial tracking and reporting within the company Company Name: Nam Anh Đức Co., Ltd Address: 958 Ngô Quyền, An Hải Tây Ward, Sơn Trà District, Da Nang City.

2.2.1.3 General accounting a Books are generally used

Accounting Nam Anh Duc Limited Liability Company uses the General Journal, Account Ledger Account 511. b Accounting method

When adding up VAT invoices, the accounting software system will automatically enter the Detail Book, General Journal and Ledger of account 511– Sales revenue at the same time.

There are no deductions of sales in the company for the period.

2.2.3 Accounting for cost of goods sold

For cost of goods sold, the accountant mainly uses the inventory delivery note and accounting vouchers.

For the sale transaction with invoice No.0008546 & 0008553, the followingInventory Delivery Note was made when goods delivered to the customer.

2.2.3.2 Detailed accounting. a Subsidiary ledger used

Nam Anh Duc Limited Liability Company uses sales subsidiary ledger to record all cost of good sold completed in the period.

The company applies weight average method (instantaneous average) to calculate cost of good sold. b Accounting method

First of all, an inventory delivery note is prepared.

Cost of good sold related to sales on invoice no.0008546, no 0008553 are illustrated in the top of next page.

Then based on inventory delivery note, the accountant records the cost of good sold transaction to 632 subsidiary ledger.

SỔ CHI TIẾT TÀI KHOẢN

2.2.3.3 General accounting a General books used

The accountant at Nam Anh Duc Limited Liability Company will use General Journal and Ledger of account No 632. b Accounting method

Each day, when a company sells goods, the accountant records the cost of goods sold in the accounting software This software automatically updates the General Journal and posts the amount to account No 632 in the Ledger.

On December 29th, 2020, the company paid for petrol money following the receipt: PC12.028 below:

When a selling expenses transaction occurs, the clerical officer prepares a proposal for the director's approval Once approved, the clerical officer forwards the proposal to the accountant to update the accounting records accordingly.

During 2020, the company completed many selling expenses transaction In the section, I would like to select 1 transactions to illustrate how accountant records selling expenses transaction ledger account 641

- This is the December accounting vouchers

- On December 31, 2020 the company paid December salary to the sales department.

Then based on the payroll, accountant records salaries expense in selling expenses subsidiary ledge.

Nam Anh Duc Limited Liability Company uses the Subsidiary Ledger of account No 641 - Selling expenses b Accounting method

2.2.4.3 General accounting a General books used

The accountant at Nam Anh Duc Limited Liability Company uses General Journal and Ledger of account No 641- Selling expenses. b Accounting method

Daily, the accountant journals each accrued event using vouchers in the accounting software, which subsequently updates the General Journal and Ledger for account No 641.

In 2020, the company faced significant administrative expenses, highlighting the need for a clear accounting procedure To exemplify this process, I will focus on the Entertaining Expense recorded on December 15th, showcasing how administrative costs are managed within the organization.

On December 15th 2020, the company paid the cost of repairing the 43C21033 car, which is VND 1,554,000, including 10% VAT for Truong Hai Auto Joint Stock Company under voucher No PC12.014.

On December 31, 2020, the company spent December 2020 courier money for Hai Bon Bay Joint Stock Company

The accountant at Nam Anh Duc Limited Liability Company use Subsidiary Ledger of Account 642 - Administrative expenses. b Accounting method

In general accounting for administrative expenses, accountant uses ledger of account 642 to record administrative expenses in the period. b Accounting method

The transactions are recorded in the ledger of account 642 At the end of the quarter, a closing entry of administrative expenses is recorded.

Every day, when a transaction related to administrative expenses is incurred, the accountant shall record it in administrative

On Dec 31th from Vietinbank to illustrate how the company records financial income in its accounting system On Nov 31th 2020 company received Credit Note as follows:

Then base on interest from cash and issuing credit, accountant records the financial income transaction in financial income subsidiary ledger.

2.2.6.2 Detailed accounting: a Subsidiary ledger used

Nam Anh Duc Limited Liability Company uses 515 subsidiary ledger to record all financial income completed in the period. b Accouting method

Every day, when a transaction related to revenue from financial activities arises, accountants shall record it in account details of account 515.

In 2020, the company engaged in numerous financial income transactions This article will focus on one specific transaction to demonstrate the process of recording financial income in the general journal and ledger account 515.

2.2.6.3 General accounting a General books used

The accountant at Nam Anh Duc Limited Liability Company uses General Journal and Ledger of account No 515 b Accounting method

Every day, based on the vouchers, the accountant will record the accounting event accrued into the accounting software.

Then, the accounting software will record it into the General and Ledger of account No 515

On Dec 11th from Vietinbank to illustrate how the company records financial expense in its accounting system The company received Debit Note as follows:

On Dec 11th, 2020, Nam Anh Duc Limited Liability Company paid interest expense to Vietcombank, following the Debit Advice below:

 Then base on payment of interest and issuing debit, accounting records the financial expenses transaction in financial expenses subsidiary ledger.

2.2.7.2 Detailed accouting a Subsidiary ledger used

Nam Anh Duc Limited Liability Company uses 635 subsidiary ledger to record all financial expenses completed in the period. b Accounting method

2.2.7.3 General accounting a General books used

Each day, the accountant will enter accrued events into the accounting software using vouchers, which will subsequently update the General Journal and Ledger This systematic approach is essential for maintaining accurate financial records.

December 31st, the director took interest from customers and returned the money to employees following the receipt PT12.037 below:

Based on voucher, accountant records other income in Other income

2.2.8.3 General accounting a General books used

Each day, the accountant records accrued accounting events into the accounting software using vouchers Subsequently, these entries are reflected in the General Ledger under account No 711.

December 31st, the company contrast the difference in debt (the balance from the liquidation of the contract) for A Long Food Joint Stock Company.

2.2.9.2 Detailed accouting a Subsidiary ledger used

Nam Anh Duc Limited Liability Company uses 811 subsidiary ledger to record all other expenses completed in the period. b Accounting method

When an other expenses transaction arises, a clerical officer prepares a proposal and submits it to the director for approval Once approved, the clerical officer forwards the proposal to the accountant to record it in the accounting books.

2.2.9.3 General accounting a General books used

Each day, the accountant inputs accrued accounting events into the accounting software using vouchers Subsequently, the software updates the General Ledger, specifically for account No 811.

At the end of each month, the accountant at Nam Anh Duc Limited Liability Company records the financial figures into the books, utilizing the Subsidiary Ledger of account No 911 for the income summary.

At the end of each month, accountants systematically record all closing entries for revenues and expenses in the income summary subsidiary ledger Subsequently, they transfer the after-tax income to the 421 account, ensuring accurate financial reporting.

At the end of each month, the accountant summarizes the total revenues and expenses, recording the accrued accounting events in the accounting software This information is then reflected in the General Ledger under account No 911, ensuring accurate financial tracking.

SOME SUGGESTIONS OF CONSUMPTION ACCOUTING

SOME GENERAL COMMENTS ON ACCOUNTING SYSTEM AND

3.1.1 General comment on the accounting system a Advantage:

During my internship at the company, I realized that the company's accounting work has the following advantages:

- Nam Anh Duc Limited Liability Company always adheres to accounting principles and standards, regularly updates the changes of the Ministry of Finance's finance policies and accounting laws.

The financial statements are accurate and reliable, delivering essential and timely information to company leaders and relevant departments The accounting data effectively captures and reflects all economic transactions within the enterprise, serving as a foundation for stringent asset management This, in turn, supports business expansion, diversification of products and services, and ultimately enhances profitability for the organization.

The accounting department is structured to be compact, aligning with the company's size and management needs The system for general vouchers and document circulation is designed to be straightforward, ensuring efficient operations within the organization.

The company's accounting team possesses robust professional qualifications and extensive experience, ensuring that voucher recording and bookkeeping accurately reflect organized economic operations Their stringent management and examination of vouchers significantly reduce the likelihood of accounting errors.

Effective management of economic transactions in a company's business activities relies on meticulous methods such as checking, calculating, recording, classifying, synthesizing, and storing data These interconnected techniques enable accountants to generate comprehensive and timely information regarding capital movement before, during, and after business operations, ensuring accurate oversight for management.

The reports offer valuable insights into the financial health and future prospects of businesses, enabling interested parties to make informed decisions regarding support and investment strategies during each period.

The company utilizes MISA accounting software, which enhances efficiency by providing accurate accounting data and saving time, allowing accountants to easily update essential information for their tasks However, there are certain disadvantages to consider.

- In recent times, there have been changes in personnel in the accounting department, resulting in a shortage of human resources to be able to complete the backlog.

- Although there are assignments for each accountant but no change of work for each member to enhance the experience and ability to coordinate support each other in the work

- Recruitment and training of accounting personnel with expertise and professional ethics as well as the spiritual life of the employee has not been focused more.

The financial accounting department is overcrowded with excessive records, creating a cramped environment that hinders circulation and leads to stale air.

- The accounting office system is not fully equipped with facilities, which hinders the working process of accountants.

3.1.2 General comments on accounting for sale and determining business results at company a Advantages

- Accounting cost of good sold

The company applies weight average method (average after each import) to calculate cost of good sold is simplicity, ease and speed.

- Accounting for selling and administrative expenses

Everyday, accountants keep track of the costs of selling a business management business that reflects timely the arising business

- Accounting for determining business results

Effective accounting for assessing business outcomes relies on a well-structured and adaptable bookkeeping system tailored to managerial needs This straightforward approach enhances readability and enables managers to strategize for market segment development, ultimately improving quality, meeting customer demands, and driving profitability However, there are inherent disadvantages to consider.

- Accounting for revenue from sales and providing service

The company lacks a system for tracking sales revenue on a per-item basis, making it challenging to identify top-selling and underperforming products This absence of detailed sales data hinders the development of effective strategies to promote sales and boost overall income during the period.

- Accounting cost of good sold

The company fails to monitor the cost of goods sold for individual items, hindering its ability to accurately assess item costs Additionally, the lack of inventory reduction provisions contributes to the challenges posed by stock price devaluation, ultimately resulting in misleading financial reporting.

- Accounting for selling and administrative expenses

The Company has not distinctly categorized its expenses into selling and administrative expenses Certain costs, such as telecommunication charges, are occasionally misclassified within administrative expenses, despite not typically being part of this category.

The company often pay late insurance premiums so they are fined additional fees resulting in unnecessary expenses increase.

SOME SUGGESTIONS FOR IMPROVEMENT OF COMPANY’S

Finalizing accounting tasks, particularly in general and consumption accounting, involves specific steps, intervals, and collective effort to determine business results effectively Our internship experience at Taha Import-Export Limited Liability Company highlighted both the advantages and limitations of the current accounting practices Based on this experience and the knowledge gained in school, I propose several ideas for enhancing the company's accounting processes related to sales and business result determination.

3.2.1 Some suggestions for improvement of accounting system

In today's competitive landscape, businesses must prioritize market expansion to ensure stable and continuous operations Companies should extend their industry reach and operational scope both domestically and internationally Additionally, it is crucial to gather comprehensive information on market fluctuations, specifically identifying peak and low demand periods in the construction sector to make timely adjustments.

Integrating additional human resources into the company's accounting department is essential for maintaining the continuity of ongoing operations This proactive approach helps prevent stagnation and minimizes errors in the accounting process, ultimately safeguarding the overall performance of the business.

Investing in quality supplies and equipment in the workplace is essential for fostering a positive and professional atmosphere This approach not only enhances employee morale but also boosts productivity, leading to significant tangible and intangible benefits for the entire company By creating a comfortable and motivating environment, businesses can stimulate a fresh spirit among their employees, ultimately contributing to overall success.

3.2.2 Some suggestions for improvement of accounting for sale and determining business results

- Accounting for revenue from sales and providing service

Accountants must regularly review the sales subsidiary ledger by product to enhance financial oversight and assist managers in tracking individual item sales This analysis allows for the identification of strong and weak items, enabling more effective sales planning and inventory management.

- Accounting for cost of good sold

The company needs to establish a subsidiary ledger for the cost of goods sold, organized by product for each activity Additionally, it is essential to monitor the production process closely to prevent issues related to sales or sales rebates.

To attain exceptional sales and establish a strong market position, every company should develop a comprehensive sales policy An effective sales policy, coupled with an optimized sales process, is essential for maximizing efficiency Additionally, offering trade discounts to customers can significantly enhance effectiveness and drive sales results.

To boost sales and incentivize bulk purchases, businesses should implement deferred payment options and contributions Additionally, offering discounts on large invoices to existing customers can enhance relationships, promote faster capital recovery, and foster mutual trust, ultimately strengthening the company's competitive edge.

Following my internship at the company, I received valuable guidance from my instructors and support from the accounting department Through my own research, extensive reading, and the knowledge imparted by my teachers, I successfully completed the topic: "Accounting for Sales and Determining Business Results at Nam Anh Duc Limited Liability Company."

The literature review on accounting for sale in enterprises is crucial for company development My internship experience has significantly enhanced my knowledge and skills This learning process not only allowed me to complete my research topic but also provided valuable insights I hope Duy Tan University will create more opportunities for students to engage with businesses, helping us build confidence in our expertise as we prepare for our careers.

By leveraging my understanding of sales accounting and business performance, I have developed several recommendations to enhance the accounting processes at Nam Anh Duc Limited Liability Company.

I would like to express my heartfelt gratitude to Ms Hoang Anh Thu for her invaluable assistance in completing my thesis Additionally, I extend my thanks to the leadership and accounting staff at Nam Anh Duc Limited Liability Company for their support during my practical experience at the firm.

[1] Pham Thi Hien Hao (2015), Financial accounting, Duy Tan university

[2] Circular No.200/2014/TT-BTC issed December 22, 2014 of The Ministry of Finance

[3] Nguyen Thi Yen Sang (2016), Ungraduation thesis

[4] Bui Dang Hieu (2014), Ungraduation thesis

[5] Pham Thanh Long & Associate, (2011), Priciples of Accounting Curriculum.