BANKING ACADEMY OF VIETNAM ADVANCED PROGRAM  GRADUATION THESIS Major: Accounting TOPIC: ACCOUNTING FOR INCOME, EXPENSE AND DETERMINING PROFIT OR LOSS At Hanoi Delicacy Hotel & Tourism Company Limited Student name: Phan Thuy Dung Class: K20CLCI Course: 2017 – 2021 Student’s ID: 20A4020128 Instructor: MintA Nguyen Thi Thanh Mai HANOI – 2021 Tai ngay!!! Ban co the xoa dong chu nay!!! 17014125808821000000 ACKNOWLEDGEMENTS First and foremost, I would like to express my sincere thanks to all teachers in Banking Academy, especially the faculty of Accounting and Auditing and Advanced Program for their passion for conveying knowledge to students Valuable knowledge that I have learned in nearly years not only helps me to achieve good results in my internship period but also helps me get more confident on the way to become an accountant Especially, I would like to express my endless thanks and gratefulness to my instructor – MintA Nguyen Thi Thanh Mai for guiding and supporting me to complete my Graduation Thesis Her constructive comments and encouragement have significantly improved my work Also, I would like to express my sincere gratitude to Hanoi Delicacy Hotel & Tourism Company Limited for supporting me a lot when I am in the internship period Besides, I would like to give special thanks to Mrs Tran Thi Tan – chief accountant of the company who was willing to answer all questions about my thesis and provided me a lot of information about the company Last but not least, I would like to express my deepest gratitude to my family and friends have always been a tremendous source of support and inspiration for me during this course Thanks and best regards, i COMMITMENT I am Phan Thuy Dung, a student of K20CLCI, I hereby declare that my Graduation Thesis is my own research and that has not been submitted anywhere for any award The data and results in the thesis are completely honest If there exist any frauds, I am totally responsible to Banking Academy Hanoi, 18th May 2021 The author Phan Thuy Dung ii TABLE OF CONTENTS ACKNOWLEDGEMENTS i COMMITMENT ii TABLE OF CONTENTS iii LISTS OF ACRONYMS vi LIST OF TABLE AND ILLUSTRATION vii INTRODUCTION CHAPTER 1: THEORETICAL BASIS FOR ACCOUNTING FOR INCOME, EXPENSE AND DETERMINING PROFIT OR LOSS .5 1.1 Overview for income, expense and determining profit or loss .5 1.1.1 Overview for income 1.1.2 Overview for expense .7 1.1.3 Overview for determining profit or loss .9 1.2 Roles and duties of accounting for income, expense and determining profit or loss 10 1.2.1 The role of accounting for income, expense and determining profit or loss 10 1.2.2 The duty of accounting for income, expense and determining profit or loss 10 1.3 Accounting for income, expense and determining profit or loss 11 1.3.1 Accounting for income 11 1.3.2 Accounting for expense 19 1.3.3 Accounting for determining profit or loss 33 iii CHAPTER 2: CURRENT ISSUES OF ACCOUNTING FOR INCOME, EXPENSE AND DETERMINING PROFIT OR LOSS AT HANOI DELICACY HOTEL & TOURISM COMPANY LIMITED 35 2.1 Overview of Hanoi Delicacy Hotel & Tourism Co 35 2.1.1 The process of formation and development 35 2.1.2 Duties and functions of the company 37 2.1.3 Ordinary activities .37 2.1.4 Organizational structure 38 2.2 The financial situation and business results of the Company .39 2.3 Organizing accounting work at Hanoi Delicacy Central Hotel & Spa .43 2.3.1 Organization structure of accounting department at Hanoi Delicacy Hotel & Tourism Co., Ltd 43 2.3.2 Duties and functions of accounting department 43 2.3.3 Accounting standards 44 2.4 Current issues of accounting for income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Co 46 2.4.1 Current issues of accounting for income at the company 46 2.4.2 Current issues of accounting for expense at the company 59 2.4.3 Current issues of accounting for determining profit or loss 70 2.5 Evaluation on accounting for income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Co 71 2.5.1 Advantages 72 2.5.2 Limitations and reason 74 iv CHAPTER 3: SOLUTIONS FOR COMPLETION OF ACCOUNTING FOR INCOME, EXPENSE AND DETERMINING PROFIT OR LOSS AT HANOI DELICACY HOTEL & TOURISM CO., LTD .77 3.1 Solutions to complete accounting for income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Co 77 3.1.1 Development orientation of the company until 2025 77 3.1.2 The need for completion of accounting for income, expense and determining profit or loss 77 3.1.3 Orientation to complete accounting for income, expense and determining profit or loss 78 3.2 Conditions for implementing solutions and recommendations 82 3.2.1 From Hanoi Delicacy Hotel & Tourism Co 82 3.2.2 From the authorities 83 CONCLUSION 86 REFERENCES .87 v LISTS OF ACRONYMS COGS Cost of goods sold G&A General and Administrative SCT Special consumption tax VAS Vietnam Accounting Standards VAT Value added tax CO., LTD Company Limited WAC Weighted Average Cost FIFO First in, first out vi LIST OF TABLE AND ILLUSTRATION Figure 1: Accounting entry for revenue from goods sale and provision of services applying deductible VAT method .13 Figure 2: Accounting entry for revenue from goods sale and provision of services applying export tax, excise tax and environment tax 13 Figure 3: Accounting entry for revenue deduction 16 Figure 4: Accounting entry for financial incomes .17 Figure 5: Accounting entry for other income 19 Figure 6: Accounting entry for COGS applying perpetual inventory method .22 Figure 7: Accounting entry for COGS applying periodical inventory method .23 Figure 8: Accounting entry for selling expenses .25 Figure 9: Accounting entry for general & administrative expenses 27 Figure 10: Accounting entry for financial expenses 29 Figure 11: Accounting entry for CIT expense 31 Figure 12: Accounting entry for other expenses 32 Figure 13: Accounting entry for determine business performance 33 Figure 1: Organization chart of the Company 38 Figure 2: Organization structure of accounting department 43 Figure 3: Procedures for recording accounting books in the .45 vii Table 1: Balance sheet (2019-2020) 40 Table 2: Income statement (2019-2020) 42 Form 1: Receipt 53 Form 2: VAT Invoice (1) 54 Form 3: General Ledger of Account 511 55 Form 4: VAT Invoice (2) 56 Form 5: General Ledger of Account 515 57 Form 6: General Ledger of Account 711 58 Form 7: Accounting voucher .61 Form 8: General Ledger of Account 627 62 Form 9: General Ledger of Account 632 65 Form 10: General Ledger of Account 642 68 Form 11: General Ledger of Account 635 69 Form 12: General Ledger of Account 911 71 viii INTRODUCTION Rationale Facing the Coronavirus epidemic, the economy and the world are seriously affected This is also the reason why domestic and foreign businesses are facing many difficulties In this tough period, one of the factors that investors, business owners are concerned about is profit Regardless of the time or circumstances, maximizing profit is always the highest priority of the business Especially for such a difficult situation, businesses would have to spend a lot of selling expense and operate to generate income to overcome the crisis, profit maximization is the effective management of income and expense, this is also the desire of administrators and investors Enterprises must determine the best investment direction, production scale, demand, and ability of manufacturing conditions to make the best decision With the ultimate goal of maximizing profits, businesses need to capture the necessary and accurate information and data from the accounting department to help managers have an accurate view of the business performance From there, making appropriate management decisions to improve the business management efficiency and making finance public and attract investors Two basic criteria: income and expense give them an overview of the determining profit or loss of the company, based on that, they make reasonable adjustments to improve operational efficiency and closer to profit maximization In particular, businesses in the field of tourism and services with the development of the tourism industry have created conditions for a system of restaurants and hotels with high quality and international standards to grow, hence the more competitive it is Therefore, businesses in the field of tourism, services in general, and Hanoi Delicacy Central Hotel & Spa, in particular, are facing with are facing very fierce competition To business effectively, the hotel needs to have appropriate measures and policies to help the hotel increase profitability, reduce