Name: Bui Thanh Huong

Class : Auditing

Student code: 11121841

ABBREVIATION

LIST OF TABLES

LIST OF FIGURES

PREFACE

As Vietnam – a developing country has entered the new modern era of economy and

technology, the demands of product and service consumption in various field. Especially

when our country conduct the "Industrialization - Modernizing" broadly and

comprehensively, economic development is being carried out speedily and human

resources have played a very important role in the development of the country recently

which requires a large amount of professional customer service. Thus, the need for

learning foreign languages leads to the outburst in the establishments of language

schools. Among those language schools, Language Link Vietnam which is a English

teaching center has 20 successful years of operating in Vietnam thanks to well-trained

and excellent staffs including accounting department.

More specifically, during those 20 years, Language Link VN has always ranked 1st for

profit and sales revenues. The reason behind this success is that any business must

control input and output with their best effort, which will be supported or even decided

effectively by the accounting profession, especially when the competitiveness among the

enterprises is becoming sharper, more intense and severe. Being deeply aware of the

importance of accounting, Lac Hong Investment Company has also consider accounting

focus and improvement as a vital stage in its stable development strategy.

After the time practicing at Language Link Viet Nam Company, I had the opportunity

to learn more about the characteristics of accounting in practice besides applying the

knowledge learned at school by the best way. Overall, I will introduce you the basic

accounting system in the company generally. Besides Introduction and Conclusion, the

report has three chapters:

Chapter 1: Overview of the company

Chapter 2: Accounting department and accounting system

Chapter 3: Some remarks on financial accounting management.

Special thanks go to Dr , teacher in School of Accounting and Auditing, National

Economics University and colleagues in accounting department of Language Link Viet

Nam Company for their patience, understanding and enthusiastic guidance for me in

completing this report.

Chapter 1: OVERVIEW OF LANGUAGELINK VIET NAM COMPANY

Establishment and Development of Language Link Viet Nam Company:

Give some basic information of Language Link Viet Nam Company:

+ Transaction name: Language Link Viet Nam Company.

+ Director: Mr. GAVAN IACONO.

Lines of business: Education.

Headquarters: No.62, Yen Phu street, Nguyen Trung Truc ward, Ba Dinh district, Ha Noi

city

Tel: (+84) (4) 39273399

As a member of the International Language Link Group (UK), Language Link Vietnam is

also part of Language Link's network coverage throughout the UK, Russia, and China.

Language Link Vietnam company is also a strategic partner of international education

group Navistar, NCC, ETS, IIG Vietnam, and more than 30 universities worldwide

reputation.

Language Link International established with headquarters in London, UK .Language

Link Viet Nam is the first educational institution in Vietnam to bring English language

teaching programs according to international standards, creating a prerequisite step to

help you reach the advanced education and qualifications are internationally recognized.

Language Link Vietnam and keeps on working to become the organization of teaching

English is the best known, as well as address TOEIC, TOEFL and IELTS reputation for

you in Vietnam. It have been operating in Vietnam for nearly 20 years, and will continue

to do so for years to come as well. Now, Language Link Viet Nam have four schools in

Ha Noi, one school in Ho Chi Minh city.

With operations in the history of nearly 20 years, Language Link Vietnam is the first

educational institution in Vietnam to bring English language teaching programs

according to international standards, creating a prerequisite step to help reach out to

education and advanced degrees are internationally recognized. With top quality

education, Language Link Vietnam committed to the program easy to understand and

effectively to students of various ages and different backgrounds.

Language Link Vietnam keeps on working to become the organization of teaching

English is the best known, as well as address TOEIC, TOEFL and IELTS reputation.

Language Link Viet Nam has stated its values on the way growing are ethic, quality,

respect, and sustainability, which can be seen as serving customers with high standard

set, treating employees with high encouragement and trust, as well as planning and acting

sustentative for the future development. In order to expand and develop the company,

many subsidiaries and associates are established in many fields of business.

Characteristics of the Business Operation of Language Link Viet Nam company:

Functions and Responsibilities:

Activities of Language Link Viet Nam Company includes provide English course:

+ English for very young Learners

+ English for Primary

+ English for Secondary

+ English for Academic

+ TOEFL Preparation

+ TOEIC Preparation

+ Corporate training

+ IFY

+ GET

+CELTA

+ English for very young Learners : The VYL program at Language Link was developed

exclusively for our students by experts in early childhood development and language

learning.  Targeted to match the developmental pace of children aged 4 to 6 ½ years,

students in our VYL program learn English the way native speakers learn it – by using it.

Language Link provides Very young learners need a safe, fun and comfortable learning

environment with a lot of individual attention from teachers and TAs.  In this

environment children can smoothly progress through the developmental stages all

children go through – like developing their fine motor skills, as well as the various stages

of literacy – first learning to recognize single letters, then recognizing whole words in

English and finally learning to write.  

+ English for Primary: we use the Communicative Method, internationally recognized

best practice in English language teaching.  Students learn English the way native

speakers learn English – by using it.  We teach grammar in both theory and practice,

through lessons that are dynamic, interactive and engaging, which will get your child

communicating in English with confidence.  In Language Link’s English for Primary

Students program students are also exposed to international exams of English for the first

time.  Our communicative approach to English teaching, coupled with ongoing practice

in international test material, fully prepares your child for entry into secondary school.

- English for elementary students: Language Link is the only English training center in

Hanoi that meets both your secondary student’s academic needs. At Language Link, we

teach English both in theory and practice, familiarizing students with the test material,

they will see on their end of year and high school entrance exams while at the same time

improving their English the way natives do – by using it.  And Language Link includes

tailor made writing practice for our students, allowing them to improve this vital skill

through practice that is engaging and culturally relevant to Vietnamese teens.

+ English for Academic: The English for Academic Purposes program at Language Link

gives students the academic skills they need to succeed in any International Foundation

Year or university program, whether here in Hanoi or overseas.  Both language and non-

language based skills – like critical thinking – are practiced to an international standard,

yet are still relevant to university study in Vietnam.  

- TOEFL Preparation: The TOEFL preparation courses at Language Link continue the

Academic English pathway with three course options for students of varying levels,

meeting their TOEFL iBT needs no matter their target score.  TOEFL is accepted by

more than 9,000 colleges, agencies and other institutions in over 130 countries so

students who plan to study overseas, or simply want to learn at a Western style university

in Vietnam, can prepare for their exam at Language Link.  Nearly all of the assessment

for Language Link’s TOEFL preparation courses is done in an actual ETS test center, so

when it comes time to take the real exam, our students will have already experienced

what test conditions are like, adding to their level of comfort and confidence.  Whether

you want to study overseas or just want to impress friends and family with your English

level as proven on an international exam which has been taken by more than 30 million

people worldwide, Language Link has the TOEFL preparation course for you.

- TOEIC Preparation: The TOEIC preparation courses at Language Link provide two

course options for students with lower or higher target scores.  TOEIC is used as a

benchmark for promotion and hiring in many of the biggest companies in Vietnam.

University students to satisfy their English language requirement also use it.  LLV’s +

TOEIC Prep courses can prepare both types of student for their TOEIC exam.  Nearly all

of the assessment for Language Link’s TOEIC preparation courses is done in an actual

ETS test center, so when it comes time to take the real exam, our students will have

already experienced what test conditions are like, adding to their level of comfort and

confidence.

+ The Professional English program: The Professional English program at Language

Link focuses on skills and topics related to the workplace for working people or

university students planning to enter the workforce upon graduation. The Professional

English program at LLV also has a strong focus on TOEIC test taking skills , which

including the offer of practice tests in a real ETS test center for students enrolled in

certain courses – because TOEIC is the main benchmark test used by Vietnamese

corporations for hiring and promotion, as well as a way to fulfill the language

requirement at many Vietnamese universities.

Features of the Business Operation:

1.2.3. Process of Producing Goods:

1.3 Organizational Structure of Language Link Viet Nam Company:

- Board of Director: Working on behalf of the owners of the company, implements the

rights and obligation of the owners of the company; acts on behalf of the company to

exercise the right and obligation of the company; represent as to be liable to the law and

the owners as of the company. For the performance of the power and duty assigned under

the provisions of the new Enterprise law and other relevance laws . Rights, obligations,

duties and specific working mode of the Board of Director for the company’s owners

shall comply with the provisions of the charter of the company and the relevant laws.

- Deputy Director: Deputy Directors are responsible for all business activities of the

company before Board of directors and Government about obligations to Government,

the equity as well as the employees’ conditions. Directors may decide to appoint,

dismiss, reward and discipline subordinates. They also operates and controls economic

plans, accounting procedure, paybacks, settles debts and deals with economic issues of

the company with stakeholders....

- SMT : SMT includes four schools in Ha Noi city and Ho Chi Minh city which provides

English course directly for customers.

Gavan -Director

Lam –Deputy Director

Hang –Deputy Director

SMT Corp Dept

Aca Dept

F&A Dept

SL Dept

CELTAIFY Dept

S&M Dept

- Academic Department: Academic department devoted to a particular academic

discipline. This department designs the program of the course, prepares the books and

materials for teacher, reports, and certificates , checks attendant of the class.

-Financial Accounting Department : Financial Accounting Department advises the

director on the financial operations of the company and takes responsible to the law and

the director for the accuracy and truthfulness of the financial performance of the

company. Moreover, Financing Accounting Department also manages and utilizes funds,

assets in accordance with as law’s requirements and makes full payment for the

compensation and welfare of laborers; deceives and managing.

- Sales and marketing department

- Corporate department:  Corporate department specializes in designing and

implementing English training programs for both local and international corporations, as

well as for government agencies and non-governmental organizations. They offer

language proficiency courses to help executives and their staff communicate more

effectively in the global marketplace, courses range in level from Beginner all the way to

Advanced. Their past and current clients include the following: the Bank for Investment

& Development in Vietnam (BIDV), EVN Genco power generation, General Electric

Company ltd, VINACOMIN coal and mining corporation, Canon, Vietnam Bank for

Agriculture and Rural Development ….

- IFY department: IFY (International Foundation Year ) department which forms the first

year of a suite of integrated program for those international students who have the

potential and motivation to succeed, but who do not yet have the formal qualifications

required for entry to level 1 of a University of Leeds undergraduate degree program.

- School link department: This department links with many primary and secondary

schools in Ha Noi and supply English course for them.

- CELTA: This department accredited CELTA training centre in Hanoi, offering custom-

built facilities and top-quality trainers.

Financial Position and Operational Results of Language Link Viet Nam Company:

Items 2014 2013 2012

       

Current Assets 38,280,339,431 46,299,705,269 48,042,569,589

       

Total Assets 53,170,684,040 61,732,512,429 66,725,145,968

       

Current Liabilities 28,916,842,386 32,109,721,373 33,648,886,921

       

Total Liabilities 46,843,877,101 52,579,856,196 53,836,695,343

       

Stockholders’ Equity 57,481,806,939 57,547,656,232 89,278,450,625

       

Table 1.2. Operational Results in 2014, 2013, 2012 (VND)

       

Items 2014 2013 2012

       

Revenues 215,635,744,857 201,534,671,477 187,434,551,659

       

Income before Tax 165,419,153,431 150,903,189,952 140,866,558,083

       

Income after Tax 148,877,238,088 135,812,870,956 126,779,902,275

       

Table 1.3. Ratio for the effectiveness of operation:

Items 2014 2013 2012

       

Return on Assets (ROA) = Income after tax / Total 0.28 0.22 0.19

Assets      

       

Return on Equity (ROE) = Income after tax / 2.59 2.36 1.42

Stockholders’ Equity      

       

Net Profit Margin = Income after tax / Revenues 0.69 0.67 0.64

       

Current ratio = Current assets / Current liability 132.38% 144.19% 143.99%

The company’s profitability has been increasing steadily for the last 3 years.

Chapter 2: ACCOUNTING DEPARTMENT AND ACCOUNTING SYSTEM AT

LANGUAGE LINK VIET NAM COMPANY.

2.1. Accounting Department of the Language Link Viet Nam Company

Language Link Viet Nam Company’s financing and Accounting Department has eight

members, who are organized in the form of accounting focus. Starting from the

characteristics of business, organizing accounting apparatus is in accordance with

regulatory requirements and accounting process in corporations. This department has

functions to collect and process, provide all the economic information, thereby testing the

working plan, checking the use and protection of assets, materials and capital in order to

ensure autonomy in business, and financial autonomy of the corporation.

Based on the volume, nature and complexity of the arising economic transactions as well

as the competence and qualifications of the staff, in order to complete all the assigned

tasks and assure the reasonable responsibility allocation, the accounting department is

organized follow vertical function model as below:

Chef Accountant

Salaries and wage accountant

Bank Accountant

Sales and cash accountant

DCV sales and cash accountant

TQH sales and cash accountant

Yen Phu sales and cash accountant

Fixed assets and inventory accountant

Lang Ha sales and cash accountant

+ Chef Accountant: Chief Accountant works as an assistant to the director to direct the

implementation of the company’s accounting, advise the company about controlling

mechanisms of financial-economic activities. Chief accountant is in charge for the

accuracy and timeliness of financial information of the company. Chief accountant also

executive direction and supervision of staff in doing the works, which they responsible to

make sure that all the financial information are presented fairly and truly.

+ Bank accountant: responsible for the payment procedures through Bank, monitoring the

principal debt, interest and credit institutions, end of month tabulated detailed report.

Treasurer will manage the cash fund of the company; follow the transactions of the

company with banks such as bank loans, bank deposits; process bank reconciliation.

+ Fixed assets and inventory accountant: Accountant for fixed assets and inventory will

subscribe the fluctuation of fixed assets, depreciates fixed assets periodically; subscribe

details of the assets of the company on the cards and fixed asset register. They also

monitors the input, output and inventories of materials; collect original documents related

to the materials as the basis for comprehensive accounting; takes charge of payment

transactions with customers, employees, officers and the other payment obligations of the

company with the state, and tax authority. Moreover, they follow account receivables,

payables, control provisions, advances and prepayments; and conducts stock count and

check for assets and inventories.

+Salaries and wages accountant: They common duties include creating sales and cash

flow reports, administering payroll, keeping balance sheets, carrying out billing activities,

managing budgets and keeping inventory. The accountant may also be responsible for

filing taxes for the company, as well as reviewing past reports to generate income

forecasts.

+ Sales and cash accountant: Keeps track of payables to suppliers and receivables from

customers, also records sales revenue, expense, and summarizes monthly, calculate VAT,

etc. It includes four SMT school sales and cash accountants.

2.2. Accounting System Applied at Language Link Viet Nam Company.

2.2.1. The Main Accounting Policies Adopted:

+ Accounting regime:

Before January 1st 2007, the company applied accounting regime Decision

No.1141BTC/CĐKT dated November 1st 1995 by Ministry of Finance.

From January 1st 2007 up to now, the company has applied new accounting regime for

medium and small companies Decision No.48/2008/QD – BTC dated September 14th

2006 by Ministry of Finance.

+ Currency unit: Vietnam Dong (VND)

+ Accounting period: The fiscal year begins on January 1st and ends on December 31st.

+ Inventory accounting method

Principle of recoding inventory: Historical cost principle

Inventory costing method: Weighted average method

System to account: Perpetual inventory system.

+ Accounting method: recording vouchers

+ Fixed asset depreciation method: straight-line method (follow Decision203/2009/QĐ-

BTC dated 10/20/2009)

+ Inventories: Accounting perpetually

+ Cash accounting method: Foreign currencies arising in business transactions are

converted into Vietnam dong at the actual exchange rate at the time of the transactions.

At the end of the accounting year, monetary assets and liabilities denominated in foreign

currencies are converted at the average exchange rate in the interbank by the State Bank

of Vietnam announced at the end of the accounting year.

The differences between value of foreign currencies, which are arisen in accounting

period, and value of foreign currencies, which are revaluated at the end of the accounting

year, will be transferred to the Income or Financial expenses in the fiscal year.

+ Method of VAT calculation: Tax deduction method of 10%

2.2.2. Accounting documentations & vouchers:

- The accounting documents system applied in Language Link Viet Nam is followed

Decision No.48/2008/QD – BTC dated September 14th 2006 by Ministry of Finance. All

documents are complied with the content, method to prepare and sign of Accounting laws

and Decree No.129/2004/ND-CP dated May 31st 2004 by Government.

- All the original documents which were prepared inside or outside the company must be

collected and gathered by accounting department. When all documents are collected, the

accountants will conduct the thorough inspection of the original documents belong to

their responsibility. Only after inspection and verification proves that these documents

are correct, accountants use these documents to record the accounting entries.

The types of vouchers used:

-Required documents: These documents are standardized about specifications, formats

and norms reflected in the vouchers, the purposes and methods of documentation by the

State, including:

+Receipts

+Payment cards

+Receipts

+VAT invoice

+Ordinary sales invoice

+Delivery note cum internal transport

+Delivery note for shipping goods to agent

The list of purchased goods without invoices

Recording vouchers

-Instructed documents are used inside the company internally with the guidance of

Finance Ministry’s documents such as timesheets, payrolls, delivery notes, receipt notes,

delivery records, credit notes, debit notes, inventories list...

Accounting documents procedures

- The process of rotating accounting documents:

Step 1: Create, receive, and handle/process accounting documents

Step 2: Accountants and chief accountant check and sign in the accounting documents or

submit to the Director to sign and approve

Step 3: Classify, arrange accounting documents, account and record the transactions :

Step 4: Store, preserve the accounting documents : Accounting documents that are stored

and preserved must meet the following requirements:

- The process of inspection procedure:

Step 1: Check for the clarity, integrity, completeness of the criteria and factors recorded

in the accounting documents

Step 2: Check for the legality of arising economic-financial transactions, which are

recorded in the accounting documents; compare accounting documents with other

relevant documents.

Step 3: Check for the accuracy of the data and information in accounting documents

2.2.3. Accounts in Accounting System

The company is applying the accounting system according to the decision

15/2006/QĐ-BTC of 09/14/2006 issued by the Ministry of Finance.

Code Account Code Account

Type 1: Current assets Type 2: Non-current assets

111 Cash on hand 211 Fixed assets

1111 VND 2111 Tangible fixed assets

1112 Foreign currencies 2112 Finance lease fixed assets

112 Cash in bank 2113 Intangible fixed assets

1121 VND 214 Depreciation of fixed assets

1122 Foreign currencies 2141 Depreciation of tangible assets

1123 Gold, Silver, precious stones 2142 Depreciation of finance lease assets

121 Short-term financial investments 2143 Amortization of intangible assets

131 Trade receivables 2147 Depreciation of investment property

133 VAT deduction 217 Investment properties

1331 VAT on purchase of goods 221 Long-term investment

1332 VAT on purchase of fixed assets 229Allowance for decline in value of

long-term investments

138 Other receivables 241 Construction in progress

1381 Shortage of assets awaiting resolution2411

2412

Fixed assets prior to commissioning

Construction works

1388 Others 2413 Major repairs in progress

141 Advances 242 Long-term prepaid expenses

142 Short-term prepayments 244 Long-term deposits

152 Raw materials Type 3: Liabilities

153 Tools and supplies 311 Short-term borrowings

154 Work in progress315

Current portion of long-term

liabilities155 Finished goods

156 Merchandise 331 Trade payables

157 Outward goods on consignment 333Taxes and other payables to State

budget

159 Allowances 3331 VAT

1591Allowance for decline in short-term

investment

33311 Output VAT

33312 VAT on imported goods

1592 Allowance for bad debt 3332 Special consumption tax

1593Allowance for decline in inventory

value

3334 Corporate income tax

3335 Personal income tax

171 Repurchase Government bonds 3336 Tax on use of natural resources

Type 4: Owner’s equity 3337Land and housing tax, and rental

charges

411 Operating capital 3338 Other taxes

4111 Contributed capital 3339 Fees, charges and other payables

4112 Capital surplus 334 Payables to employees

4118 Other capital 335 Accrued expenses

413 Exchange rate differences 338 Other payables

418 Equity funds3381 Surplus of assets awaiting resolution

419 Treasury shares

421 Retained earnings 3382 Trade union fees

4211 Retained earnings brought forward 3383 Social insurance

4212 Profit/Loss for the current year 3384 Health insurance

Type 5: Revenue 3386Long-term deposits and collaterals

received

511 Sales Revenues 3387 Unearned revenues

5111 Revenues from sales of merchandise 3388 Others

5112 Revenues from sales of finished goods 3389 Unemployment insurance

5113 Revenues from services rendered341 Long-term borrowings and liabilities

5118 Other revenue

515 Income from financial activities 3411 Long-term borrowings

521 Sales deduction 3412 Long-term liabilities

5211 Trade discounts 3413 Issued bonds

5212 Sales returns 34131 Par value of bonds

5213 Sales rebates 34132 Bonds discounts

Type 6: Costs of production and business 34133 Bonds premiums

611 Purchases 3414 Long-term deposits received

631 Production costs 351 Provision for severance allowance

632 Costs of goods sold 352 Provisions

635 Financial expenses 353 Welfare and reward funds

642 Business expenses 3531 Reward funds

6421 Selling expenses 3532 Welfare funds

6422 Administration expenses 3533Welfare funds used for fixed asset

investments

Type 7: Other income 356 Investment and development fund

711 Other incomeType 9: Income Summary

Type 8: Other expenses

811 Other expenses 911 Income Summary

821 Income tax expense

Type 0: Off Balance Sheet Accounts

001 External operating leased assets

002 Goods held under trust or processing

003 Inward consignment goods for sale and goods held as collaterals

004 Bad debts written off

007 Foreign currencies

In addition, the company also opened several sub-accounts to fit the nature of business

and to create favorable conditions for accounting. For example:

Account 111: Cash on hand

+Account 1111: VND

+Account 1112: USD

Account 112: Cash in bank

+ Account 1121: VND

+ Account 1122: USD

+ Account 1123: Gold, silver and precious stones

Account 511: Sales Revenue

+ Account 5111: Revenue from sales of merchandise

+Account 5111.01: Revenue from sales of merchandise to hospitals

+Account 5111.02: Revenue from sales of merchandise to wholesalers

+Account 5112: Revenue from sales of finished goods

etc.

2.2.4. Accounting Books:

The system of accounting books of Language Link Viet Nam comply with Decision

No.48/2008/QD – BTC dated September 14th 2006 by Ministry of Finance. The form of

accounting books is General Journal. However, to simply accounting work and achieve

highest efficiency, the company used accounting software. Recording process by

computer to enter data only once, the computer will automatically process and record in

books and accounting statements to provide information for the user.

The basic feature of General Journal form is that all business transactions which incurred

must be recorded in the journal, especially focus on the General Journal, follow the order

of the time arising and the economic content (the accounts) of each transactions. After

that, accountants gather data in the general journal to record transactions in ledger.

Every day, base on the accounting documents, accountants identify debit account, credit

account and enter data into computer which is designed by accounting software.

In the process of accounting software, that information is classified, summarized,

allocated, etc and automatically entered into the general journal, detailed accounting

books or accounting cards.

In the end of month (or at any time is needed), accountants close the book and prepare

financial statements. The comparison between general ledger and summary table is done

automatically to ensure the accuracy and reliability of the information which has been

recorded in the period. Accountants also check and compare the data between the

accounting books and the financial statements after printed on paper.

At the end of the accounting period, accounting book is formed as files with general and

detailed information for each item such as Sales journal, Income and disbursement

journal, general ledger and subsidiary ledgers, financial statements, tax statement, etc.

In manual condition, the content of General Journal is presented:

: General Journal process

2.2.5. Accounting Statements:

SOURCE DOCUMENTS

Detailed books

Summary table

General Journal

General ledger

FINANCIAL STATEMENTS

Trial balance

Note:Record dailyRecord monthlyComparison

The financial statement preparation has 4 parts: Balance Sheet or Financial Position

Statement, Income Statement, Cash Flow Statement (Direct method), and Financial

Statement Disclosure.

Those statements will be prepared by accounting department with the stamp of the

company and the signatures of the creating accountant, chief accountant as well as

director at the end of fiscal years 31st December.

2.3. The Main Accounting Cycles Applied by the Language Link Viet Nam Company:

2.3.1 : Accounting procedure for overhead costs:

Overhead costs include many kind of costs such as management team salary, social

insurance deductions, health insurance, union funds, unemployment insurance are

specified on the wages paid to direct workers and management employees, depreciation

of fixed assets used in the operation of the unit and other costs related to the unit. This

cost usually has an indirect relationship with profits and associated to organizing,

servicing and sale the product.

To accumulate the production costs incurred under the expense items ( direct material

cost , market research cost , manufacturing overhead cost), the accountant open a detailed

accounting book for management overhead costs.

SỔ CHI PHÍ SẢN XUẤT KINH DOANH

Tài khoản:……………………….Số hiệu………………….

Tên phân xưởng, bộ phận…………………………………..

Chứng từ

Diễn giải

TK

đối

ứng

Ghi Nợ TK ………………….

Số

hiệu

Ngày

tháng

Tổng

số tiền

Chia ra

A B C D 1 2 3 4 5 6….

Số dư đầu kỳ:

SSố phát sinh trong kỳ:

………….

…………..

Cộng phát sinh

Ghi Có TK: ….

Số dư cuối kỳ:

Accounts used : 627 – used to reflected and allocated the overhead production costs.

+Accounts 6271 - Cost of management team staff: Reflecting the salaries, allowances

paid to personnel management workshops, parts, production team; mid-shift meals of

management staff, workshop, parts manufacturing; deductions for social insurance, health

insurance, trade union funding is calculated according to the proportion of the current

provisions on wages paid to staff , departments. For unit costs, the indirect method is

tracking employee attendances. Thus, the payment of salary, allowances ...are made by

the accounting department of the company. Monthly, based on timesheets conducting

wage and payroll department conducts wage and salary deductions of direct production

workers, workers operating construction machinery, management team staff then send the

payroll to the accounting department.

- Accounts 6272 - Cost of instrument and tools : Reflecting material cost for the

production, as the materials and tools for the reparation and maintenance of fixed assets,

temporary costs ,. . .

- Accounts 6273 - The cost of production tools: Reflects costs of tools, instruments and

consumables for the management of the factory, parts and units produced. . .

- Accounts 6274 - Depreciation of fixed assets: Depreciation expenses of fixed assets are

transferred to account 6274, it reflects depreciation of fixed assets used directly for the

production of products, implementation services and shared activities amortization of

workshops, departments and organizations , production team . Currently fixed assets used

in production units are include computers, and so on. Fixed assets are amortized based on

straight line

- Accounts 6277 - Cost of services purchased from outside: To reflect the cost of services

purchased from outside service for the operation , such as repair costs, outsourcing costs,

electricity costs, water, telephone, rent and amortization.

- Accounts 6278 - Other expenses: Other expenses are collected in Ac 6278. At the end

of the month accountant collects documents for the invoices along with VAT invoices to

the accounting department of the corporation.

(1) Costs of the management team staff

(2) Costs of instrument and tools

(3) Depreciation of fixed asset

(4) Outside purchasing services

(5) Deducted cost

(6) Closing entry

2.3.2 Accounting procedure for cash transaction:

Cash transactions are ones that are settled immediately in cash. Cash transactions also

include transactions made through cheques. Cash transactions may be classified into cash

receipts and cash payments. Because of the business characteristic, Language Link Viet

Nam accounting department have to receipt lot of cash every day from four public

schools in Ha Noi. Every day, chief accountant and director check the receipt voucher

from public school to know the amount of money inflow as well as check request for

payment in advance from each department and approve it. Then, cash accountant prepare

payment vouchers for disbursement transactions or receipt vouchers for receipt

transactions. Base on these documents, accountants post the transactions to General

Journal and ledger of relevant accounts. Simultaneously, accountants will record to

detailed books.

At the end of the month, the accountants sum up the amount of each account to prepare

trial balance, calculate the amount of detailed books to prepare summary tables,

implement comparison and finally, prepare financial statements.

Receipt voucherPayment voucher

Request paper for advancePayment document for advance

Summary table

Detailed book Account 111,112General Journal

Ledger account 111, 112

Financial Statements

Trial Balance

Account used:

- Account 111: Cash on hand

Account 1111: Cash on hangd – VND

Account 1112:Cash on hand- USD

- Account 112: Cash in bank

Account 1121: Cash in bank- VND

Account 1122: Cash in bank- USD

Account 1123: Cash in bank- Gold, Silver and precious stones

However, the company usually uses only account 1121 and 1122 and rarely uses account

1123 because of the high risk of the code of payment.

Besides two these accounts, some other accounts relating specific transactions would be

used.

2.3.3 Accounting procedure for sales:

Sales revenue is the gross inflow of economic benefit during the period arising in the

course of ordinary activities of an enterprise when those inflows result in increases in

equity. This is the most important inflow of the company to cover the expenditures as

well as facilitate the company to do obligations with Government. In addition, revenue

reflexes scope and efficiency of the company.

Every day, base on Sales, accountants record all the transactions not only into General

Journal and then to subsidiary and general ledgers but also to detailed books of relating

accounts based on documents such as Receipt voucher or credit note from banks,

Delivery note, payment voucher, etc. At the end of the month, accountants calculate the

amounts on ledgers to prepare trial balance and sum up the amounts on detailed books to

prepare summary table. After that, they compare between the amounts on ledgers and

trial balance with summary table to determine whether the figures are match to each

other. Finally, accountants prepare financial statements for management purpose or

financial statements at the end of the year.

Sales revenue process

Summary table

Trial balance

Financial statements

General Journal Detailed book account 511, 632,

642

Ledger account 511, 5212, 632, 156, 642

Note:Record dailyRecord monthlyComparison

Delivery noteReceipt voucher/Credit note

Payment voucher

Accounts used:

To record sales

- Account 511: Sales revenue

+Account 5111: Revenue from sales of merchandise

+Account 5112: Revenue from sales of finished goods

- Account 5212: Sales return: This account expresses the value of goods returned because

of unqualified goods or violated contract, etc.

To record Cost of goods sold

- Account 632: Costs of goods sold: This account is used to reflect the cost of goods sold

in the period.

Chapter 3: ASSESSMENT OF ACCOUNTING STRUCTURE OF THE

COMPANY

3.1 Achievements:

3.2 Limitations:

3.3 Recommendations: