ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY AT SKCOMPANY VIETNAM JOINT STOCK COMPANY

DUY TAN UNIVERSITY INTERNATIONAL SCHOOLUNDERGRADUATE THESIS TOPIC: ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY AT SKCOMPANY VIETNAM JOINT STOCK COMPANY MENTOR : MA... With th

GENNERAL ISSUES OF ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY .3 1 Accounting concept for fees earned

Cost related concept

A cost represents the expenditure of resources that a business incurs to achieve specific objectives In financial accounting terms, it refers to the payments made to engage in economic activities, such as production and transactions, essential for acquiring the goods and services needed in the business production process.

Cost incude: Cost of service sold, Selling expenses and Business administration expenses, Financial expenses, Other expenses, Income tax expenses

Business results at service company concept

Business results is the expression of the amount of profit or loss from the enterprise's operations in a certain period of time (Nhị, 2006)

The business results of an enterprise are determined by the difference between net revenue and the cost of goods sold, which encompasses products, goods, investment properties, and services, as well as the production costs associated with construction products and installation Additionally, it includes expenses related to real estate investment activities, such as depreciation, repair and upgrade costs, and operating lease expenses, alongside sales and management costs.

Net income from operating activities

The deduction from fees earned

Other operating results: Is the difference between other incomes and other expenses and corporate income tax expense.

Other income expenses Corporate income tax payable: is a tax directly on the profits of businesses.

ACCOUNTING FOR FEES EARNED

Fees earned recognition conditions

An enterprise recognizes sales revenue only when it simultaneously satisfies the following conditions:

- The enterprise has transferred most of the risks and benefits associated with the ownership of products and goods to the buyer.

- The enterprise no longer holds the right to manage the goods as the owner or control of the goods.

Revenue recognition occurs when it can be measured reliably An enterprise may only record revenue when the buyer's right to return products or goods, as stipulated in the contract, has ended This means that revenue can be recognized only after the specific conditions allowing returns are no longer applicable, unless the customer has the option to exchange returned goods for other products or services.

- The business has received or will gain economic benefits from the sale. Expenses related to sales transactions can be determined.

An enterprise recognizes revenue from providing services only when it simultaneously satisfies the following conditions:

Revenue recognition occurs when it can be measured reliably, particularly when a contract allows the buyer to return the purchased service under specific conditions The enterprise recognizes revenue only when these conditions are no longer applicable, and the buyer loses the right to return the service.

- The enterprise has received or will gain economic benefits from the transaction of providing that service.

- Completed work is identified at the time of reporting.

- Determining the costs incurred for the transaction and the cost to complete the transaction of providing that service.

Vouchers

The main vouchers used fees earned for are :

- Value-added tax invoices, common sales invoices.

Detail Accounting

The accountant uses subsidiary Ledgers Account No.511

Image 1.1: Subsidrary leger of fees earned

- Columns B, C: Write down the number and date of the term used for entry.

- Column D: Record the content of the arising economic profession.

- Column E: Enter the number of the reciprocal account.

- Columns 1, 2, 3: Enter the quantity, unit price and amount of the volume of goods (products, investment properties or services) sold or provided.

- Column 4: Enter the value added tax (excise tax, export tax) payable calculated on the sales of goods (products, services, investment property) sold or provided.

- Column 5: Enter the amount to be deducted from income tax (if any) such as: Trade discounts, returned goods, sales discounts,

After adding "The arising amount", calculate the "Net revenue" indicator in column

3 Column 3 = Column 3 minus (-) Column 4 and Column 5 Target "Cost of servce sold": Enter the cost price of goods (products, investment properties, services) sold.

General Accounting

- Account No.511- Sales of goods and service provision

• Account No.511 has a rule debit & credit:

- Indirect taxes payable (VAT, special consumption, export, and environmental protection).

- Sales of goods returned are carried forward at the end of the period.

- Sales discount at the end of the period.

- Trade discounts carried over at the end of the period.

- Transfer net revenue to account No.911 "Determination of business results".

- Revenue from the sale of products, goods, investment properties and service provision of the enterprise in the accounting period.

Account No.511 doesn’t have balance

(3) Sales of goods and service provision

ACCOUNTING FOR COST OF SERVICE SOLD

Concept of accounting for cost of service sold

The cost of services sold refers to the actual expenses associated with the inventory of products or the costs incurred in providing services during a specific period For commercial enterprises, this includes the expenses related to purchasing goods sold Accurately calculating these costs is essential for determining the overall business results for that period.

Diagram 1.1: Accounting for fees earned

Vouchers

The main vouchers used for service sold are : Summary of production Expenses

Detail accounting

Subsidrary Ledger of operation expenses Account No.632

Image 1.2: Production cost and expenses

Utilizing the comprehensive records of production and business expenses from the previous period, specifically in the "Closing balance" section, accurately input the figures in the "Opening balance" line across the relevant columns (from Column 1 to Column 8).

- Part "Amount arising in the period": Based on accounting vouchers (original documents, distribution tables) to record in detailed books of production and business expenses as follows:

- Column A: Enter date and month of entry.

- Columns B, C: Write the number, date and month of the voucher used for entry.

- Column D: Record interpretation of the arising economic profession.

- Column 1: Enter the total amount of the arising economic transaction.

To effectively manage economic transactions, it is essential to accurately record costs in the appropriate columns, from Column 2 to Column 8, ensuring alignment with the specific management requirements of each enterprise account.

- The part (line) "Closing balance" is determined as follows:

General Accounting

Account No.632: Cost of goods sold

• Account No.632 has a rule debit & credit: For production and service business (Periodic checking method )

- Cost of finished goods in stock at the beginning of the period.

The provision for inventory devaluation reflects the increase in the allowance for this year compared to the unused amount from the previous year.

- Cost of capital of finished products brought in and finished services.

- Transfer cost of finished products in stock at the end of the period to the

Debit of Account No.155 "Finished goods".

At the end of the fiscal year, the reversal of provisions for inventory devaluation occurs when the current year's allowance is less than the unused amount established in the previous year This adjustment reflects a positive change in inventory valuation, indicating improved financial health and more accurate asset representation.

- Transferring cost of finished products sold or completed services determined to be sold during the period to Debit of Account No.911 "Determination of business results.

Diagram 1.2: Accounting for cost of service sold

(1) Cost of finished goods sold or work in process sold

(3) Wastage, loss of inventory is calculated on the cost of service sold

(4) Over head costs unallocated are recognized to cost of services sold during the period

(7) Depreciation of real estete investment

(10) Quote expense to temporarily calculate the cost of real estate sold in the period

(13) Reversal of provision for devaluation of stocks

ACCOUNTING FOR SELLING EXPENSES AND ADMINISTRATIVE EXPENSES

Concept of accounting for selling expenses and administrative expenses

Selling expenses encompass all costs associated with the sale of products and services, including expenses for sales personnel, packaging materials, depreciation of fixed assets, and the procurement of services Additionally, cash expenditures related to sales activities are also considered part of these costs (Nhị, 2006) In contrast, general and administrative expenses refer to costs tied to the overall management and operation of a business, which include salaries for management staff, office supplies, fixed asset depreciation, taxes, fees, and other necessary expenditures for external services, as well as any other cash outlays that support the enterprise's general management functions (Nhị, 2006).

Vouchers

The main vouchers used for selling expenses and administrative expenses are:

- Distribution of raw materials, materials, tools.

- Table of distribution of wages and social insurance.

- Spreadsheet and depreciation allocation for fixed assets.

Detail Accounting

Subsidrary Ledger of production cost and expenses Account No.642

The form of the book is similar to the Account No.632

The detailed accounting of selling and administrative expenses mirrors the approach used for accounting the cost of goods sold, necessitating the establishment of a comprehensive ledger to track production and operational costs for each entity.

General Accounting

• Account No.642 has second level accounts:

- Administration and business expenses incurred in the period.

In this period, the provisions for bad debts must exceed the unused provisions established in the previous period, highlighting the importance of accurately assessing potential financial losses This difference underscores the necessity for businesses to maintain adequate reserves to cover anticipated defaults, ensuring financial stability and compliance with accounting standards.

The reversal of provisions for doubtful debts and payables occurs when the current period's provision is less than the unused allowance from the previous period This adjustment reflects a more favorable financial outlook, indicating that fewer debts are expected to be uncollectible and that liabilities may have decreased.

- Transfer administrative expenses into account No.911 "Determination of business results".

Diagram 1.3: Accounting for selling expenses expenses and administrative expenses

(1) Supplies expenses and other expenses

(2) Salary expenses and salary deductions

(3) Depreciation cost of fixed assets

(4) Input value added tax is not deductible if it is included in selling expenses and administrative expenses

(9) Revert the provision for goods insurance

ACCOUNTING FOR FINANCIAL INCOME AND EXPENSES

Accounting for financial income

1.5.1.1 Concept of accounting for financial income

Financial income encompasses various revenue streams, including interest from loans, deposits, and installment payments, as well as returns on investments in bonds and treasury bills It also includes income from property rentals, dividends, distributed profits, and earnings from both short-term and long-term securities trading Additional sources of financial income consist of proceeds from the transfer and lease of infrastructure, other investment activities, and interest differentials arising from foreign currency transactions and capital transfers.

The main vouchers used for financial income are :

- Payment, Credit notes, bank statements anh Other relevant documents

The accountant uses Subsidrary Ledger Account No.515

Image 1.3: Subsidrary leger b Accouting Method

Detailed books of accounts are opened for each account, for each payment object (for each cost content, capital source …).

- Column A: Enter date and month of entry.

- Columns B, C: Write the number, date and month of the voucher used for entry.

- Column D: Record summary interpretation of the arising economic profession.

- Columns 1, 2: Enter the amount incurred on the Debit or Credit side.

- Columns 3, 4: Record the balance of the Debit or Credit side after each arising transaction.

- Opening balance line: Get data from the payment tracking detailed book of the previous period (line "Closing balance") to record in Column 3 or Column 4 as appropriate.

• Account 515 has a rule debit & credit:

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

- Transfer financial income to 911 account “Determined business results".

- Dividends, dividends and profits shared.

- Interest from the sale of investments in subsidiaries, joint ventures, associates.

- Discount payment to be enjoyed.

- Exchange rate interest arising in the period of the business activity.

- The exchange rate gain arises when selling foreign currencies.

- Exchange rate interest upon re-evaluation at the end of the fiscal year monetary items denominated in foreign currencies of business activities.

- Transferring or distributing exchange rate interests of capital construction investment activities.

- Revenue from other financial activities generated in the period.

Account No.515 doesn’t balance b Accounting Method

Diagram 1.4: Accounting for financial income

(1) At the end of the period, the transfer of revenue from financial inccome

(2) Get notified of the right to receive dividends, profits

(4) Sale of foreign currency earnings

(6) Transfer of exchange rate differences

Accounting for financial expenses

1.5.2.1 Concept of Accounting for financial expenses

Financial operating expenses encompass costs associated with financial investment activities, including borrowing expenses, capital contributions to joint ventures, and losses from short-term securities transfers These expenses also cover transaction costs related to the sale of securities, as well as provisions for decreases in the value of securities and other investments, and losses incurred from foreign currency sales.

The main vouchers used for financial expenses are :

The accountant uses Subsidrary Ledger Account No.635.

The method of accounting for detailed financial expenses is similar to accounting for financial income, opening detailed accounts of accounts for each subject.

Account No.635 has a rule debit & credit:

- Interest expense, interest deferred payment, interest property finance lease rental.

- Losses from selling foreign currency.

- Losses due to liquidation or sale of investments.

- Exchange rate loss incurred in the period; Foreign exchange loss due to the year-end reassessment of monetary items denominated in foreign currencies.

- The amount of the provision for impairment of trading securities and for loss of investment in another entity.

The reversal of provisions for impairment of trading securities and losses on investments in other entities occurs when the allowance for this period is less than the unused allowance from the previous year.

- Items recorded as a decrease in financial expenses;

At the end of the accounting period, carry over all financial expenses incurred in the period to determine the business results

(6) Revert the provisiob for securities investment

ACCOUNTING FOR OTHER INCOME AND EXPENSES

Accounting for other income

1.6.1.1 Concept of accounting other income

Other income refers to earnings that a business does not anticipate or plan for, often arising infrequently and outside of regular revenue-generating activities This type of income can stem from both subjective business decisions and objective circumstances.

Diagram 1.5: Accounting for financial expenses

The main vouchers used for other income are :

- Fixed asset handover and liquidation records

The form of the book is similar to the Account No.515 b Accouting Method

The method of accounting for detailed other income is similar to accounting for financial income, opening detailed accounts of accounts for each subject.

- Account No.711 does not have a second level account.

•Account No.711 has a rule debit & credit:

- The payable VAT amount (if any) is calculated by the direct method for other incomes at the VAT payer by the direct method.

- At the end of the accounting period, transfer other income arising in the period to No.911 account "Determination of business results".

- Other income generated during the period.

Diagram 1.6: Accounting for other income

(1) Income from disposal of fixed assets

(2) Value added tax (if any)

(3) Included in other income payale liabilities cannot be indentified

(4) Receive grants, donations of supplices, goods

(5) Taxes deducted from other income ( if any )

Accounting for other expenses

1.6.2.1 Concept of accounting other expenses

Other expenses refer to unforeseen costs that a business may encounter, which are typically infrequent and not directly tied to revenue-generating activities These costs can arise from either subjective decisions made by the business or objective circumstances (Nhị, 2006)

The main vouchers used for other expenses are :

The method of accounting for detailed other expenses is similar to accounting for financial income, opening detailed accounts of accounts for each subject.

- At the end of the period, transfer all other expenses incurred in the period to

No.911 account "Determination of business results".

Account No.811 doesn’s balance b Accounting Method

Diagram 1.7: Accounting for other expenses

(1) Other expenses in cash (expenses for liquidation, sale of fixed assets )

(2) Tax fines, retrospective payment of taxes, contract breaches

(3) Record a decrease in fixed assets due to liquidation or sale

(4) Tranfer of other expenses incurred in the period

ACCOUNTING FOR INCOME TAX EXPENSES

Concept of income tax expenses

Income tax expenses refer to the taxes levied on the taxable income of production and business entities during a specific tax period Corporate income tax encompasses both current and deferred tax liabilities incurred within the year, which are essential for assessing the enterprise's financial performance for that fiscal year.

Vouchers

- Provisional corporate income tax return

- Declaration for adjustment of corporate income tax

Detail Accounting

The method of accounting for income tax expenses is similar to accounting for financial income, opening detailed accounts of accounts for each subject.

General accounting

Account No.821: Income tax expenses

Account No.821 - Corporate income tax expense has 2 tier 2 accounts.

- Account No.8211 - Current corporate income tax expenses.

- Account No.8212 - Deferred corporate income tax expenses.

- Corporate income tax incurred in the year

In the current year, any additional corporate income tax payable resulting from the identification of non-material errors from previous years is recognized as an increase in the corporate income tax expense.

In the current fiscal year, the actual corporate income tax owed is less than the provisional corporate income tax, leading to a reduction in the corporate income tax expense recorded for the year.

The corporate income tax liability has been lowered as a result of identifying non-material errors from prior years, leading to a reduction in the corporate income tax expense for the current year.

When the corporate income tax expense for the year exceeds the recorded reduction in the corporate income tax expense, the difference should be transferred to account No 911, which is designated for the "Determination of business results."

(2) Quarterly, the enterprise income tax shall be temporarily paid for, and additionally adjusted, corporate income tax

(3) Reducing adjustment when the amount of provisional tax payable in the year is greater than the payable amount determined at the end of the year

(4) At the end of the closing period for transferring corporate income tax expenses

ACCOUNTING FOR INCOME SUMMARY AND TRANFERRING NET INCOME/ NET LOSS

Concept of accounting income summary

The income summary account serves as a temporary account where all revenue and expense accounts are consolidated at the end of an accounting period This process reflects the net profit or loss incurred by the business during that timeframe To achieve this, the total revenue recorded is debited from the revenue account and credited to the income summary account Ultimately, all income and expense balances are transferred to the income summary account, providing a clear overview of the financial performance for the period.

Detail Accounting

The method of accounting for detailed income summary is similar to accounting for financial income, opening detailed accounts of accounts for each subject.

General accounting

- Cost of capital of products, goods, investment property and services sold.

- Financial expenses, corporate income tax and other expenses.

- Selling expenses and business administration expenses.

- Net sales of products, goods, investment properties and services sold during the period.

- Revenue from financial activities, other income and deduction of corporate income tax expense.

(1) Tranfer cost of service sold

(2) Tranfer of selling expenses and administrative expenses

(6) Tranfer revenue from financial income

(8) Tranfer of income tax expenses

Diagram 1.9: Accounting for income summary and tranferring net income/ net loss

METHOD OLOGY OF ACCOUNTING FOR FEES EARNED, EXPENSESAND INCOME SUMMARY IN SKCOMPANY VIETNAM JOINT STOCK

HISTORY OF SKCOMPANY VIETNAM JOINT STOCK COMPANY

History of Skcompany VietNam Joint Stock Company

Skcompany Vietnam Joint Stock Company, established on July 5, 2018, under Business Registration Certificate No 0401910408, operates as an independent accounting unit in compliance with the Enterprise Law, its Company Charter, and applicable legal regulations.

• Head office address: 08 Nguyen Thi Bay, Thanh Khe Tay Ward, Thanh Khe

• Operation status: In operation (has been granted a technical certificate)

• Representative first name: Than Thanh

• Department of tax management:Tax Department of Thanh Khe district.

• Ownership form: Joint Stock Company.

• Main business areas: Trade and Services.

- Computer consulting & computer system administrator

Operational characteristics of the Company during the fiscal year that affect the financial statements:

• The company generates revenue mainly from activities: Computer programming.

Skcompany Vietnam Joint Stock Company, established in 2018, specializes in computer programming and operates under independent accounting principles to maximize profits The company is committed to delivering high-quality services that ensure customer satisfaction while adhering to state regulations and fulfilling tax obligations Skcompany focuses on producing and supplying goods and services that meet the diverse needs of its clients.

To enhance employee well-being and productivity, it is essential to fulfill obligations, provide training, and establish supportive conditions By effectively implementing proposed plans and continuously improving management skills, organizations can broaden their operational scope and create beneficial regimes for their employees.

Advantages and disadvantages of the company in the course of operation

- Staff of young, capable and highly responsible job, are the young and hardworking staff.

- The staff is qualified and skilled with many years of experience.

- Staff of the support department to help replace each other when needed.

- These partner companies are businesses, individuals and reputable.

- Always deliver on time and dedicated to customers.

The company benefits from the support and assistance of local departments during its operations However, it faces challenges due to intense competition among various economic sectors, which presents unavoidable issues in maintaining market dominance and navigating competitive landscapes.

Characteristics of organizational structure model of Skcompany VietNam Joint Stock Company

The management apparatus of the Company is shown in the following diagram:

Image 2.1 : Organizational chart of the company's management apparatus

1.9.3.2 Functions and duties of departments

The Director of the company is a legally recognized leader responsible for overseeing all business operations This role involves appointing team members to appropriate positions based on the company's evolving needs Additionally, the Director manages financial and accounting responsibilities while ensuring compliance with state obligations They also focus on strategic planning and the gradual development of a stable, long-term business framework.

The Accounting Department plays a crucial role in managing capital to ensure the sales department has sufficient resources for operations By implementing effective capital utilization practices, the department facilitates smooth sales operations and supports the Board of Directors in overseeing financial and accounting functions.

- Perform accounting, statistics, and operations to manage money and goods.

- Direct the management and use of capital effectively, create capital for business.

To ensure compliance with the Ministry of Finance regulations, it is essential to implement both periodic and ad-hoc reporting systems This will facilitate the company's fulfillment of its obligations to the state while effectively coordinating with various departments to enhance corporate operations.

• Administration department: is the department responsible for the performance of the work.

The company's administration serves as the central hub, facilitating business operations across departments while advising the board of directors on management and personnel matters It handles customer payments and employee salary distributions, playing a crucial role in shaping the company's image through effective communication with customers.

In a small company, functions are effectively distributed among various departments, ensuring that important tasks are supervised through direct oversight or delegated authority from the director This coordinated approach aligns well with the company's size and operational characteristics, fostering efficient management and execution of responsibilities.

30 commercial companies With this organization, the company can minimize the apparatus but still ensure the job requirements.

The Human Resources Department plays a vital role in a company by managing employee records and recruitment processes It is responsible for training new hires in specific job-related skills and assisting management in selecting the most qualified candidates for various positions Additionally, this department collaborates with other teams to identify essential skills needed for daily operations and provides guidance to existing employees, ensuring they perform their tasks efficiently and effectively.

The Business Department is tasked with organizing and directing the company's operations, developing business plans to fulfill corporate objectives, and managing customer contracts It also oversees the planning of materials and equipment, while monitoring and guiding drivers to ensure compliance with company regulations.

Characteristics of the accounting system in Skcompany VietNam Joint Stock Company

1.9.4.1 Characteristics functions of the accounting apparatus a Accounting apparatus structure of Skcompny Vietnam

Image 2.2: Diagram of accounting organization structure at Skcompany

The chief accountant plays a crucial role in general accounting and advising the Director on production and business operations They are responsible for analyzing and explaining business results to assist the board of directors in making informed decisions and implementing effective measures Additionally, the chief accountant oversees tax settlements and manages the collection and processing of accounting information, data, and documents related to economic transactions.

Daily revenue accounting involves checking and comparing sales revenue, controlling pricing for goods and services sold, and generating reports on approved deductions Additionally, it includes creating sales reports and daily revenue accounting sheets, along with performing other tasks as directed by superiors.

Effective expense tracking in accordance with the cost plan is essential for analyzing cost fluctuations and proposing management measures It's important to verify the allocation of depreciation and salary expenses while ensuring that contracts are monitored for accurate cost accounting Additionally, controlling commodity service prices and overseeing the import and export processes of employees are crucial Regularly comparing material reports with monthly inventory and conducting periodic material inventories will enhance accountability Implementing reasonable accounting practices and accurately allocating cost prices by service group will further optimize financial management.

Debt accounting involves the meticulous monitoring, analysis, and evaluation of financial transactions to guide management in making informed operational decisions It is essential to accurately and promptly record each transaction, including payment terms, to prevent capital misappropriation For debtors engaged in frequent transactions or with significant outstanding loans, accountants should regularly review and reconcile debts, payments made, and remaining balances, and may need to request confirmations from customers as part of this process.

Confirming the debt amount in writing is essential for effective debt management It is crucial to monitor the adherence to the debt payment schedule and maintain payment discipline Additionally, providing timely and synthesized information on various debt categories—such as short-term debts, overdue debts, and problematic accounts—enables managers to implement appropriate measures for resolution.

Effective salary accounting involves managing the salary fund, social insurance, health insurance, and unemployment insurance while ensuring timely payment of salaries and bonuses to employees Additionally, it is essential to prepare daily income and expenditure reports, along with daily bank deposit reports, as required by the director.

Effective cash management involves monitoring cash receipts and payments, ensuring that the fund's cash balance aligns with the bookkeeping records It is essential to take responsibility for any losses and compensate for them accordingly Simple bank transactions, such as withdrawing funds, making deposits, and paying taxes, must be conducted efficiently Maintaining accurate balances between cash and bank deposits is crucial, with timely notifications to the chief accountant and general manager about the fund's status Payments should only be made when all necessary vouchers and documents are approved by the general director or the authorized chief accountant Additionally, it is the responsibility of the cash manager to transfer relevant documents for general checks and ensure compliance with other tasks assigned by superiors, utilizing the General Journal accounting method with computer applications.

The Company utilizes Tri Viet Accounting Office software from Tri Viet IT Solution Development Company to record transactions in a General Journal format on computers.

Computer screen when using Tri Viet Accounting office software:

Image 2.3: Main creen Tri Viet Accounting office software

The accounting process on the computer is as follows:

Image 2.4: The order of recording on the computer

Every day, accountants review accounting vouchers or the general ledger of similar vouchers to identify the appropriate debit and credit accounts, ensuring accurate data entry into the computer based on established tables.

Accounting software streamlines financial management by automatically transferring information entered into the system into the general journal From there, the software efficiently updates the ledgers of related accounts Additionally, the pre-installed program ensures that data is automatically recorded in detailed accounting books and cards, enhancing accuracy and saving time in the accounting process.

At the end of the period, the software synthesizes, makes a detailed summary sheet, the accountant performs the transfer operations on the software to prepare the financial statements.

At the end of the accounting period, an accountant is responsible for closing the books and preparing financial statements, utilizing software that automatically inputs data to ensure consistency with the corresponding vouchers The accountant can then compare the printed financial statements with the accounting records Following legal regulations, the general and detailed accounting books are printed, bound, and prepared for submission at the end of each month, quarter, and year.

1.9.4.2 Recording method and accounting modes applied at Skcompany VietNam Joint Stock Company

• The accounting year, the currency used in accounting

- An accounting year begins on January 1 and ends on December 31 every year.

- Financial statements and accounting transactions are recorded and recorded in Vietnamese Dong.

- The Company applies the Vietnamese Corporate Accounting System as guided in Circular No 133/2016 / TT-BTC dated August 26, 2016 and the

Vietnamese Accounting Standards System issued by the Ministry of Finance.

METHOD OLOGY OF ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY.35 1 Characterics of services provided at the company

Accounting for fees earned

The documents used to account fees earned the include:

Image 2.8: Service invoice statement sold

The accounting use Subsidrary Ledgers Account No.5111 b Accounting Method

Each day, accountants utilize accounting documents such as value-added tax invoices and receipts to record transactions They debit account No 131 and credit account No 5111, inputting this information into accounting software based on pre-designed templates The system then automatically updates the relevant data in the subsidiary ledgers.

According to invoice No 0000054 dated December 7, 2020, and associated accounting documents, input the data into the accounting software The selected system software component for this process is "Sales and Accounts Receivable," which will be used to accurately record revenue.

After logging into the software system, select the section "Update data", click on "invoices for sales and services" and enter VAT invoices.

At the end of the period, the software synthesizes, Summary of Subsidrary Ledgers, the accountant performs the transfer operations on the software to prepare the financial statements.

To export ledger data, accounting into the section "general accounting", select

To manage accounting books using a general journal, select "Subsidiary Ledgers" and input the necessary information After that, click "receive," then press "dump" to choose a save location Finally, save the file by selecting "save as" and confirming the save.

Image 2.9: Subsidrary Ledgers Account No.5111

The accounting use General Joural, Ledger account No.511. b Accounting Method

Each day, the accountant utilizes accounting documents such as value-added invoices and receipts to record transactions This involves debiting account No 131 and crediting account No 511, entering the information into accounting software using pre-designed templates The software then automatically transfers the entered data into the general ledger, ensuring seamless integration with related accounts.

At the end of the year, based on the ledger to make the arising balance sheet, from the arising balance sheet and the ledger to make financial statements.

To export ledger data, accounting into the "general accounting" section, select

To access the ledger in the form of a general journal, select the specific account ledger you wish to view Input the desired information, then click "receive." After obtaining the results, press "output" to choose a save location, and finally, save the file in your preferred format.

Accounting for cost of service sold

The documents used to account service sold the include:

Image 2.12: Employee salary sheet in December

Image 2.13: Employee salary sheet in December Bonus

Image 2.14: Allocation table of tools and instruments

The accounting use subsidrary Ledgers Account No.632 b Accounitng Method

The software is transferred from account No.154 to account No.632, with account No.154 being debited and account No.632 credited The pre-installed program ensures that the computer automatically inputs this transaction data into the bookkeeping card.

At the end of the period, the general software, General Ledger, Accounting perform the transfer operations on the software to prepare financial statements.

To manage accounting books using a general journal, select "Subsidiary Ledgers" and enter the required information After that, click "Receive" to process the data Next, press "Dump" to choose a save location, and finally, save the file to complete the process.

The accounting use General Joural, Ledger account No.632. b Accounting Method

A software transfer from account No 154 to account No 632 involves debiting account No 154 and crediting account No 632 This process is streamlined by the accounting software, which automatically records the transaction in the general journal Subsequently, the data is transferred into the ledger of the corresponding accounts, ensuring accurate financial tracking.

At the end of the year, based on the ledger to prepare the balance sheet arising, from the balance sheet arising from the ledger to make financial statements.

To access the ledger in a general journal format, select the desired account ledger, enter the relevant information, and click "receive." Afterward, press "output," choose a preferred save location, and save the file accordingly.

Accounting for selling expenses and administrative expenses

The documents used to account selling expenses and administrative expenses the include:

Image 2.18: Invoice value-added tax No.0013712

Image 2.19: Invoice value-added tax No.0000531

The accounting use subsidrary Ledgers Account No.6421 and No.6422 b Accounting Method

Every day, accountants utilize various accounting documents, such as depreciation tables, prepaid expense allocation sheets, salary payment and deduction sheets, utility bills, and telecommunication service records They input data into accounting software by referencing specific debit and credit accounts, including Debit account No 1111, Debit account No 1331, Credit account No 6422, Debit account No 11212, and Credit account No 6421 The software is designed to automatically populate subsidiary ledgers based on this data entry, streamlining the accounting process.

At the end of the period, the software synthesizes, Summary of Subsidrary Ledgers, the accountant performs the transfer operations on the software to prepare the financial statements.

To manage accounting books effectively, navigate to the general journal and select "Subsidiary Ledgers." Input the necessary information, then click "Receive." Afterward, press "Dump" to choose a save location, and save the file accordingly.

The accounting use General Joural, Ledger account No.642. b Accouting Method

Each day, accountants utilize accounting documents and summary sheets to verify transactions involving Debit account No 1111, Debit account No 1331, Credit account No 6422, Debit account No 11212, and Credit account No 6421 They input this data into pre-designed tables within accounting software The software processes the entered information, automatically updating the general ledger and subsequently transferring the data to the relevant account ledgers.

To access the ledger in the general journal format, select the specific account ledger you wish to view Enter the desired information and click "receive." Afterward, select "output" to choose a save location, and then save the file accordingly.

Accounting for financial income

The documents used to account financial income the include:

The accounting use subsidrary Ledgers Account No.515 b Accounting Method

Every day, accounting relies on vouchers such as credit notes, service receipts, and summary sheets, which are thoroughly checked Data is entered into the accounting software by debiting account No 11212 and crediting account No 515, following pre-designed tables The software then automatically populates the information into the card and subsidiary ledgers.

At the end of the period, the software synthesizes Summary of Subsidrary Ledgers, the accountant performs carryover operations on the software to prepare financial statements.

To manage accounting books using a general journal, select "Subsidiary Ledgers" and input the necessary information After entering the details, click "Receive." Next, press "Dump" to choose a save location, and then save the file accordingly.

The accounting use General Joural, account Ledger No.515. b Accounting Method

The process of recording financial income from financial activities at the Company is as follows:

Every day, accountants review accounting documents and summary sheets of vouchers to record transactions, debiting account No 11212 and crediting account No 515 They input this data into accounting software, which is structured with pre-designed tables The software automatically transfers the entered information to the general journal, and subsequently, the data is imported into the ledgers of the corresponding accounts.

To access the ledger in the format of a general journal, select the specific account ledger you wish to view Enter the desired information and click "receive." After retrieving the data, press "output" and select a location to save the file Finally, save the document with your preferred file name.

Accounting for financial expenses

The documents used to account financial expenses the include:

The accounting use subsidrary Ledgers Account No.635 b) Accounting Method

Accounting for exchange rate losses involves recording transactions related to foreign currency sales This is done by debiting account No 11222 and account No 131, while crediting account No 635 Data is then entered into the accounting software using pre-designed tables to ensure accurate financial reporting.

According to the pre-installed program, the computer will automatically enter data into the ledger card (Subsidrary Ledgers).

At the end of the period, the software synthesizes, summary of subsidrary ledgers, the accountant performs carryover operations on the software to prepare financial statements.

To manage accounting books using a general journal, first select "Subsidiary Ledgers" and input the necessary information After entering the details, click "receive" to process the data Next, press "dump" to choose a save location, and then save the file accordingly.

Accounting for exchange rate losses involves recording transactions when selling foreign currencies This process requires debiting account No 11222 and account No 131, while crediting account No 635, all of which is input into accounting software using pre-designed templates The software automatically transfers the entered data into the general ledger, which subsequently updates the related accounts in the ledger.

To access the ledger in the form of a general journal, select the desired account ledger and input the necessary information After pressing "receive," click on "output" and choose a save location to store the file Finally, save the document to complete the process.

Accounting for other incomes

No other income is generated during the year

Accounting for other expenses

The documents used to account other expenses the include:

Image 2.35: Paper to pay money into the state budget

Image 2.36: Paper to pay money into the state budget

Every day, accounting relies on vouchers such as fine payment minutes or summary sheets, which are verified for accuracy Transactions are recorded by debiting account No 3339 and crediting account No 811, with data entered into the accounting software using pre-designed templates The software then automatically populates the information into the corresponding cards and subsidiary ledgers.

At the end of the period, the software synthesizes, summary of subsidrari ledgers, the accountant performs carryover operations on the software to prepare financial statements.

"accounting books in the form of general journal", select "Subsidrary Ledgers", fill

62 in information to find and then click "receive" , press "dump" then choose a save location, save as file and save.

Every day, accountants utilize accounting documents and summary sheets to verify transactions, specifically debiting account No 3339 and crediting account No 811 They then input this data into pre-designed tables within accounting software The software processes this information, automatically recording it in the general ledger, from which data is seamlessly transferred to the relevant accounts.

To access the ledger in the form of a general journal, select the desired account ledger, input the relevant information, and press "receive." Afterward, click "output" to choose a save location and save the file Notably, during the fourth quarter, the company reported no transactions related to other expenses.

Accounting for income summary

At the end of each accounting period, the general accountant shall carry out a number of carryover entries to determine the business results of that period The required entries:

- Transfer revenue from financial income.

- Transfer revenue from other income.

- Transfer cost of service sold.

- Transfer of selling expenses,andministration expenses, and other expenses.

- Transfer corporate income tax expenses

- Determination of profit after tax

Computer software will link automatically.

After making the Subsidrary ledger, related accounts determine the results of business activities, the general accountant makes a report on business results.

To manage accounting books using a general journal, first select "Subsidiary Ledgers" and enter the required information Next, click "Receive" to process the data After that, press "Dump" to export the information, choose a save location, and save the file accordingly.

At the end of each accounting period, the general accountant shall carry out a number of carryover entries to determine the business results of that period The required entries:

- Transfer revenue from financial income.

- Transfer revenue from other income.

- Transfer cost of service sold.

- Transfer of selling expenses,andministration expenses, and other expenses.

- Transfer corporate income tax expenses

- Determination of profit after tax

Computer software will link automatically.

After making the ledger, related accounts determine the results of business activities, the general accountant makes a report on business results.

Select the "consolidated" part, click on "carried forward entry", choose "carried forward entry entry"

To access the ledger in the general journal format, select the specific account ledger you need Enter the desired information and click "receive." After that, press "output" and choose a save location to store your file Finally, save the document to complete the process.

After making the ledger, related accounts determine the results of business activities, the general accountant makes a report on business results.

Accouting for income tax expenses

No income tax expenses is generated during the year Because the company sells software programming services, it is exempt from tax for 4 years.

Accounting for Tranfering Retained earning

At the end of the fiscal year, the company's financial results show a loss, with debit recorded in account No 4212 and credit in account No 911 The pre-installed software will automatically transfer this data to the relevant cards and detailed accounting books for accurate record-keeping.

To manage accounting books effectively using a general journal, select "Subsidiary Ledgers" and input the necessary information before clicking "Receive." Next, press "Dump," choose a save location, and save the file accordingly.

At the end of the year, businesses assess their financial performance, often resulting in a loss reflected in debit account No 4212 and credit account No 911 Accounting software streamlines this process by automatically transferring entered data to the general journal, which subsequently updates the ledger of related accounts.

To access the ledger in the form of a general journal, select the desired account ledger and input the relevant information After entering the details, click "receive" and then press "output." Finally, choose a save location, name the file, and save it accordingly.

SOME RECOMMENDATIONS TO COMPLETE THE ACCOUTING FOR

FEES EARNED, EXPENSES AND INCOME SUMMARY

COMMENT ON THE ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY IN

Advantages

Diagram 1.4: Accounting for financial income

(1) At the end of the period, the transfer of revenue from financial inccome

(2) Get notified of the right to receive dividends, profits

(4) Sale of foreign currency earnings

(6) Transfer of exchange rate differences

1.5.2.1 Concept of Accounting for financial expenses

Financial operating expenses encompass various costs associated with financial investment activities, including borrowing expenses, capital contributions to joint ventures, and losses from short-term securities transfers Additionally, these expenses involve transaction costs linked to selling securities, as well as provisions and reversals for declines in the value of securities and other investments, alongside losses incurred from foreign currency sales.

The main vouchers used for financial expenses are :

The method of accounting for detailed financial expenses is similar to accounting for financial income, opening detailed accounts of accounts for each subject.

Account No.635 has a rule debit & credit:

- Interest expense, interest deferred payment, interest property finance lease rental.

- Losses from selling foreign currency.

- Losses due to liquidation or sale of investments.

- Exchange rate loss incurred in the period; Foreign exchange loss due to the year-end reassessment of monetary items denominated in foreign currencies.

- The amount of the provision for impairment of trading securities and for loss of investment in another entity.

The reversal of provisions for impairment of trading securities and losses in investments in other entities occurs when the allowance set aside this period is lower than the unused allowance from the previous year.

- Items recorded as a decrease in financial expenses;

At the end of the accounting period, carry over all financial expenses incurred in the period to determine the business results

(6) Revert the provisiob for securities investment

1.6 ACCOUNTING FOR OTHER INCOME AND EXPENSES

1.6.1.1 Concept of accounting other income

Other income refers to earnings that a business does not anticipate or plan for, typically arising infrequently and outside of regular revenue-generating activities This type of income can stem from both subjective business factors and objective circumstances.

Diagram 1.5: Accounting for financial expenses

The main vouchers used for other income are :

The form of the book is similar to the Account No.515 b Accouting Method

The method of accounting for detailed other income is similar to accounting for financial income, opening detailed accounts of accounts for each subject.

•Account No.711 has a rule debit & credit:

- The payable VAT amount (if any) is calculated by the direct method for other incomes at the VAT payer by the direct method.

- At the end of the accounting period, transfer other income arising in the period to No.911 account "Determination of business results".

- Other income generated during the period.

Diagram 1.6: Accounting for other income

(1) Income from disposal of fixed assets

(2) Value added tax (if any)

(3) Included in other income payale liabilities cannot be indentified

(4) Receive grants, donations of supplices, goods

(5) Taxes deducted from other income ( if any )

1.6.2.1 Concept of accounting other expenses

Other expenses refer to unforeseen costs that a business did not anticipate, which are typically infrequent and not directly tied to revenue-generating activities These costs may arise from either subjective business decisions or objective circumstances.

The main vouchers used for other expenses are :

The method of accounting for detailed other expenses is similar to accounting for financial income, opening detailed accounts of accounts for each subject.

- At the end of the period, transfer all other expenses incurred in the period to

No.911 account "Determination of business results".

Account No.811 doesn’s balance b Accounting Method

Diagram 1.7: Accounting for other expenses

(1) Other expenses in cash (expenses for liquidation, sale of fixed assets )

(2) Tax fines, retrospective payment of taxes, contract breaches

(3) Record a decrease in fixed assets due to liquidation or sale

(4) Tranfer of other expenses incurred in the period

1.7 ACCOUNTING FOR INCOME TAX EXPENSES

1.7.1 Concept of income tax expenses

Income tax expenses refer to the taxes levied on the taxable income generated by production and business establishments during a specific tax period This encompasses both current corporate income tax and deferred corporate income tax, which are essential for assessing the enterprise's financial performance within the fiscal year.

- Provisional corporate income tax return

- Declaration for adjustment of corporate income tax

The method of accounting for income tax expenses is similar to accounting for financial income, opening detailed accounts of accounts for each subject.

Account No.821: Income tax expenses

Account No.821 - Corporate income tax expense has 2 tier 2 accounts.

- Account No.8211 - Current corporate income tax expenses.

- Account No.8212 - Deferred corporate income tax expenses.

- Corporate income tax incurred in the year

In the current year, any additional corporate income tax payable due to the identification of non-material errors from previous years is recorded as an increase in the corporate income tax expense.

In the current fiscal year, the corporate income tax liability is less than the estimated provisional tax, leading to a deduction from the recognized corporate income tax expense.

The corporate income tax liability is lowered as a result of identifying non-material errors from previous years, leading to a reduction in the corporate income tax expense for the current year.

When the corporate income tax expense for the year exceeds the recorded reduction, the difference should be transferred to account No 911, which pertains to the "Determination of Business Results." This adjustment ensures accurate financial reporting and reflects the true tax liability of the corporation.

(2) Quarterly, the enterprise income tax shall be temporarily paid for, and additionally adjusted, corporate income tax

(3) Reducing adjustment when the amount of provisional tax payable in the year is greater than the payable amount determined at the end of the year

(4) At the end of the closing period for transferring corporate income tax expenses

1.8 ACCOUNTING FOR INCOME SUMMARY AND TRANFERRING NET INCOME/ NET LOSS

Diagram 1.8: Accounting for income tax expenses

1.8.1 Concept of accounting income summary

The income summary account serves as a temporary holding account where all revenue and expense accounts from the income statement are consolidated at the end of an accounting period This transfer reflects the net profit or net loss incurred by the business during that period To achieve this, revenue accounts are debited for their total amounts, while the income summary account is credited accordingly Ultimately, the balances from all income and expense accounts are moved to the income summary account, providing a clear overview of the financial performance for the period.

The method of accounting for detailed income summary is similar to accounting for financial income, opening detailed accounts of accounts for each subject.

- Cost of capital of products, goods, investment property and services sold.

- Financial expenses, corporate income tax and other expenses.

- Selling expenses and business administration expenses.

- Net sales of products, goods, investment properties and services sold during the period.

- Revenue from financial activities, other income and deduction of corporate income tax expense.

(1) Tranfer cost of service sold

(2) Tranfer of selling expenses and administrative expenses

(6) Tranfer revenue from financial income

(8) Tranfer of income tax expenses

Diagram 1.9: Accounting for income summary and tranferring net income/ net loss

METHOD OLOGY OF ACCOUNTING FOR FEES EARNED, EXPENSES AND INCOME SUMMARY IN SKCOMPANY VIETNAM JOINT STOCK

COMPANY 1.9 HISTORY OF SKCOMPANY VIETNAM JOINT STOCK COMPANY

1.9.1 History of Skcompany VietNam Joint Stock Company

Skcompany Vietnam Joint Stock Company, established on July 5, 2018, under Business Registration Certificate No 0401910408, operates as an independent accounting entity in compliance with the Enterprise Law, its Company Charter, and applicable legal regulations.

• Head office address: 08 Nguyen Thi Bay, Thanh Khe Tay Ward, Thanh Khe

• Operation status: In operation (has been granted a technical certificate)

• Representative first name: Than Thanh

• Department of tax management:Tax Department of Thanh Khe district.

• Ownership form: Joint Stock Company.

• Main business areas: Trade and Services.

- Computer consulting & computer system administrator

Operational characteristics of the Company during the fiscal year that affect the financial statements:

• The company generates revenue mainly from activities: Computer programming.

Skcompany Vietnam Joint Stock Company, established in 2018, specializes in computer programming and operates under independent accounting principles to maximize profits The company is committed to delivering high-quality services that ensure customer satisfaction while adhering to state regulations and fulfilling tax obligations Its focus is on producing and supplying goods and services that meet the diverse needs of its clients.

To enhance employee well-being, it is essential to fulfill obligations, provide training, and establish beneficial regimes By effectively implementing proposed plans and continuously improving management skills, organizations can expand their operational scope and create favorable conditions for employees' growth and satisfaction.

1.9.2 Advantages and disadvantages of the company in the course of operation

- Staff of young, capable and highly responsible job, are the young and hardworking staff.

- The staff is qualified and skilled with many years of experience.

- Staff of the support department to help replace each other when needed.

- These partner companies are businesses, individuals and reputable.

- Always deliver on time and dedicated to customers.

Throughout its operations, the company consistently benefits from the support and assistance provided by local departments However, it also faces challenges during periods of intense competition across various economic sectors, which are inherent issues in maintaining market dominance and navigating competitive landscapes.

1.9.3 Characteristics of organizational structure model of Skcompany VietNam Joint Stock Company

The management apparatus of the Company is shown in the following diagram:

Image 2.1 : Organizational chart of the company's management apparatus

1.9.3.2 Functions and duties of departments

The Director of the company serves as the legal representative and leader of all business operations, responsible for organizing and appointing team members to appropriate roles based on the company's evolving needs This individual oversees financial and accounting responsibilities while ensuring compliance with state obligations Additionally, the Director focuses on strategic planning and the gradual development of a stable, long-term business framework.

Disadvantages

While accounting for revenue and expenses offers significant benefits for assessing a company's performance, there are inherent limitations that must be addressed to enhance overall business outcomes.

The company has limited its advertising efforts and infrequently updates its website, which may hinder its visibility Additionally, high electricity and water costs significantly raise business management and production expenses, ultimately impacting the company's profitability.

While computer software has revolutionized accounting, it also presents challenges for businesses Power outages, network disruptions, and software errors can interrupt accounting processes, leading to potential data loss if information is not meticulously backed up Additionally, correcting errors can be a lengthy and multi-step process, which may hinder productivity.

The lack of professionalism of some service staff makes customers unhappy, resulting in affected sales.

In today's competitive landscape, service companies must implement distinct strategic plans to boost revenue and profit However, many organizations still lack effective strategies to attract exceptional clientele.

SOME SOLUTIONS TO IMPROVE THE ACCOUNTING SKCOMPANY VIETNAM JOINT STOCK COMPANY

Tiêu đề	Accounting For Fees Earned, Expenses And Income Summary At Skcompany Vietnam Joint Stock Company
Tác giả	Tran Thi Nhu Quynh
Người hướng dẫn	MA. Nguyen Thi Kim Huong
Trường học	Duy Tan University
Chuyên ngành	Accounting
Thể loại	Undergraduate Thesis
Năm xuất bản	2021
Thành phố	Da Nang

Định dạng
Số trang	100
Dung lượng	26,44 MB