Intership report Accounting in Education Company

Graduate Intership Report 16071249 VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATE INTERNSHIP REPORT INTERNSHIP COMPANYINSTITUTION ENLIGHTENG INTERNATIONAL EDUCATION JOINT STOCK COMPANY Address Floor 2, Block A, Licogi 13, No 164, Khuat Duy Tien Street, Nhan Chinh Ward, Thanh Xuan District, Hanoi, Vietnam Supervisor Nguyen Thi Kim Oanh Student’s full name Ho Ngoc Thuy Student’s ID 16071249 Major Accounting, Analyzing and Auditing Class AC2016C Hanoi, April ,2019 ACKNOWLEDGM.

VIETNAM NATIONAL UNIVERSITY, HANOI

INTERNATIONAL SCHOOL

***

GRADUATE INTERNSHIP REPORT

INTERNSHIP COMPANY/INSTITUTION:

ENLIGHTENG INTERNATIONAL EDUCATION JOINT STOCK COMPANY

Address: Floor 2, Block A, Licogi 13, No.164, Khuat Duy Tien Street, Nhan

Chinh Ward, Thanh Xuan District, Hanoi, Vietnam

Supervisor: Nguyen Thi Kim OanhStudent’s full name: Ho Ngoc ThuyStudent’s ID: 16071249

Major: Accounting, Analyzing and AuditingClass: AC2016C

Hanoi, April ,2019

At the very beginning, I would like to express my deepest gratitude toInternational School and Enlightening International Education Joint StockCompany for facilitating me to prepare this report within the scheduled time.During the period of my internship work, I have received generous helpfrom many quarters, which I like to put on record here with deep gratitude andgreat pleasure

First and foremost, I would like to pay gratitude, and want to give specialthanks to our respected course teacher, Ms Nguyen Thi Kim Oanh for herconstant supervision and valuable guidance and precious suggestion in thecompletion of this report

Special thanks to Director of Enlightening International Education JSC, Ms.Thai Viet Anh to give an opportunity to me to learn and get the real workexperience

I perceive as this opportunity as a big milestone in my career development

I will strive to use the gained skills and knowledge in the best possible way, and Iwill continue to work on their improvement, in order to attain desired careerobjectives Hope to continue cooperation with all of you in the future

Despite the effort to complete the report, but due to short practice time andlimited knowledge, this report may get inevitable errors I hope the grading andexamination committee understand and help me have a better graduate internshipreport

ACKNOWLEDGMENT

LIST OF ABBREVIATIONS

CHAPTER I: FEATURE OF ORGANIZATION AND OPERATION OF ENLIGHTENING INTERNATIONAL EDUCATION JOINT STOCK COMPANY

1.1 General introduction

1.2 Organization structure

CHAPTER 2: SYSTEMATIZE THEORETICAL ON ACCOUNTING OF REVENUES, COSTS AND DETERMINATION OF BUSINESS RESULTS IN ENTERPRISES

2.1 Accouting of Revenue

2.2 Accounting of revenue Deductibles:

2.3 Cost of goods sales accounting

2.4 Expense

2.5 Administrative expense:

2.6 Accounting of financial activities and financial expenses:

2.7 Accounting of other income and expenses

2.8 Accounting of income tax costs

2.9 Accounting Determination Of Business Results:

CHAPTER 3: ACCOUNTING OF REVENUES, EXPENSES AND DETERMINATION OF BUSINESS RESULTS IN ENLIGHTENING INTERNATIONAL EDUCATION JSC

3.1 Accounting of Revenues

3.2 Accounting of revenue from financial activities:

3.3 Accouting of Cost of Good Sold

3.4 Accounting of Selling Expense

3.5 Accounting of Administrative expenses:

3.6 Accounting of financial expenses

3.7 Other income accounting

3.8 Accounting of Other Expense

3.9 Accounting of Determination Of Business Results

CHAPTER 4: EXPERIENCE GAINED

4.1 Conclusion

4.2 Experience gain

Schedule of the graduate internship

REFERENCES

LIST OF ABBREVIATIONS

CHAPTER I: FEATURE OF ORGANIZATION AND OPERATION

OF ENLIGHTENING INTERNATIONAL EDUCATION JOINT STOCK COMPANY.

(Logo of Enlightening International Education Joint Stock Company)

1.1.2 Address of head office:

Address: Floor 2, Block A, Licogi 13, No.164, Khuat Duy Tien Street, Nhan

Chinh Ward, Thanh Xuan District, Hanoi, Vietnam

Tel: 0936710300

Email: manager@enlightening.edu.vn

1.1.3 Charter capital and professional code:

Chartered capital: VND 2,000,000,000 (In words: Two billion Vietnamese dongsonly)

1.1.5 Objectives, scope of operation, principles of governance and administration of the company

1.1.5.1 Objective of operation

The company was established and operated in many fields in accordance with theLaw to:

- Maximize profits, increase benefits for the shareholders of the company

- Fulfill obligations with the State Budget

- Improve working conditions and raise income for workers

- Protection of investment values and conservation of the ecologicalenvironment, in association with the sustainable development strategy andcontributing to the country's socio-economic development

1.1.5.2 Scope of operation

N

1 Agents, brokers, auction agents: Purchasing agents, selling

3 Restaurant and mobile catering services (Excluding bar

4 Retail by order via post or Internet (Excluding electronic

5 Printing-related services (Except stamp stamping) 1812

6 Organization of introduction and trade promotion (except for

7 Market research and opinion polls (Excluding outbreaks under

investigation and information banned by the State) 7320

8 Management consulting activities: Consulting and business

support or planning services, effective organization of

operations, management information

7020

9 Other education: Teaching foreign languages and teaching

conversational skills; Training in corporate governance,

corporate finance, human resource management, marketing

and business strategy

8559

10 Education support services: Oversea study consultancy 8560

1.1.5.3 Principles of organization, management, administration and business of the company

- Carrying out the educational operations, serving the process of operationand business of the company

- The Company manages and distributes rights and responsibilities according

to the principle of share ownership and compliance with the Law;

- The highest decision-making body of the Company is the General Meeting

of Shareholders;

- The Chairman of the Board of Directors is the Head of the Board ofDirectors, exercising the rights and responsibilities according to the regulations,company regulations and the Law The director is the leader, directly managingand managing all daily business activities of the company Directors are appointedand dismissed by the Board of Directors

- Conducting professional processes, internal control processes and riskmanagement, ethical rules in accordance with the Company's business operations;

1.2 Organization structure

1.2.1 Management apparatus of the company

1.2.1.1 Functions of Broad of Director

- Responsible for the activities of the company before the Board of membersand current law

- Responsible for foreign affairs of the Company

- Deciding on the Company's guidelines, policies and strategic objectives

- Supervise and inspect all business activities of the Company

- Proposing business and investment strategies for the Members' Council

- Market development throughout the country

- Directly signing economic contracts

- Decide on financial norms, sign payment slips, authorize payments,checks

- Appoint, dismiss, dismiss managerial positions in the company, exceptthose appointed, dismissed or dismissed by the Board of Directors

- Decide on salaries and allowances (if any) for employees in the Companyincluding managers under the authority appointed by the Director

Training andinternationalcooperationdepartment

1.2.1.2 Functions of Vice Directors

- The Deputy Director is the assistant to the Director in the management ofthe company and is responsible for performing specific tasks assigned orauthorized by the Director to run the company for a certain period of time and isresponsible before the Director about the assigned tasks The Director andDeputy Directors are jointly responsible to their superiors for their assigned areas

1.2.1.3 Function of Human Resource Department

- Monitoring and evaluating the situation of human resources

- Statistics of personnel needs

- Forecasting future employees' needs in the company (once every 3 months)based on planned production processes, changes and other factors

- Develop human resource programs and plans for the company

- Advise and advise the Branch / departments / workshops

- Proposing the implementation of human resource development policies

1.2.1.4 Function of Training and International Cooperation department

- Develop and design subjects according to the International Program

- Recruitment of foreign staff and teachers

- Coordinate foreign staff and teachers in accordance with the internationalprogram at the company

- Negotiate, exchange and negotiate with foreign partners

1.2.1.5 Function of Financial and Accouting Department

Advise the Company's leaders and organize the implementation of thefollowing tasks: timely and full accounting of all assets, equity, liabilities,financial revenue and expenditure activities, business planning and financialplanning of the unit; advise the leadership of the unit to direct and perform theinspection and supervision of the management and compliance with the financialand accounting regime

1.2.2 Organizational structure and duties of the accounting department 1.2.2.1 The Importance of accounting activities for the Company

In today’s dynamic and complex business environment it is very important

to keep our accounting records clean and up to date Proper accounting isimportant to any enterprise because of the following reason:

- Helps in evaluating the performance of business

As discussed above, the accounting records reflects the results of operations

as well as statement of financial position Also various balance sheet and profit &loss accounts ratios are calculated which help user of financial statements toanalyze the performance of an entity For example: debt equity ratio, Currentratio, Turnover ratio etc Also we can compare previous period accounting datawith current period as well as budgeted figures for variance analysis

- Helps to manage and monitor cash flow

The working capital and cash requirement of an enterprise can be duly takencare by proper accounting system

- Helps business to be statutory compliant

Proper business accounting ensures timely recording our liabilities whichneeds to be paid within the prescribed time line This includes provident fund,pension fund, VAT, sales tax, Income tax Timely payment of liabilities helpsenterprises to be statutory compliant

- Helps to create budget and future projections

Accounting data helps an enterprise to prepare budget and forecast for futureperiod Business trends are projected based on past data produced by accountingsystem

- Helps in filing financial statements with regulators, stock exchanges and

filing of tax returns

Enterprises are required to file the financial statements with ROC In case oflisted entities, the same is required to be filed with stock exchanges as well Forboth indirect and direct tax filing purposes, financial statements and otherfinancial information are required

1.2.2.2 Organization chart of the accounting apparatus

- Chief accountant is a person who manages and supervises all things in theaccounting section and at the same time takes responsibility before the State and thecompany for managing the accounting and finance The chief accountant shallensure the scientific and rational organization of the accounting work at thecompany, examine the accounting report and advise the manager on financialaccounting

- General accounting: The work of general accountants is to compare thearising economic operations reflected in the original vouchers for making bookentry vouchers Periodically, at the end of the month, quarter, and year, the data will

be aggregated, the costs are determined, the tables for distribution of expenses arecalculated, and the turnover will be collected to determine the business results in theperiod Responsible for preparing the financial statements and the consolidatedfinancial statements submitted to the chief accountant for re-examination

- Treasurer and Bank accountant: responsible for cash management, dealingwith banks, monitoring cash flow in the company's operations Regularly check thefund book, take responsibility for cash flow.At the end of the day, inventory, collateactual amount of money with cash funds,pay the bank, treasury, companyrelations.It is the responsibility of contacting the bank for the supplementary book,managing the supplementary book

- Accounting liabilities: Monitoring and forwarding debt comparison withsuppliers and customers to ensure timely repayment and repayment, draw monthlybalance sheets and collate with customers and suppliers, synthesize sales debtfigures for chief accountants and directors to have a tendency to handle problems intime

Chief accountant

Treasurer and Bank

accountant Accounting liabilities General Accounting

1.2.2.3 Accounting system

The Company applies the accounting system issued in accordance withCircular No 200/2014-BTC dated 22/12/2014 issued by the Ministry of Finance

1.2.2.4 Accounting policy

- Fiscal year: Beginning on January 01, N ending on December 31st

- Currency used in accounting: Vietnam dong (VND)

- Method of inventory accounting: Method of regular declaration

- Method of calculating the ex-warehouse price:

- Fixed asset depreciation method: straight line method

- Method of calculating VAT: The credit method

- Principle of Inventory Recognition: Principles of Cost

- Inventory method of inventory: the method of regular declaration

- Fixed asset depreciation method is the straight line method

- Principles for recording costs: borrowing under the credit contract

- Principle of recognition of tribal pay: according to financial invoices

- Principles and methods of recording revenue: according to financial invoicesThe company applies the accounting regime in accordance with theregulations of the Ministry of Finance

1.2.2.5 Accounting form

Currently, the Company is applying the form of computer accounting in theform of book entry vouchers The name of the accounting software applied isVietnamese accounting

The reporting system of the Enlightening International Education JSCfollows the reporting system provided by the Ministry of Finance, includingbalance sheet, income statement, cash flow statement,

Form of accounting book: The company applies the form of book entryvoucher financial report

13

Financial Paper 208/5000

General accounting voucher of the same

type

Detailed Accounting book Cash book

Post daily:

At the end of the month, or periodically:

Collating and checking

Figure: The diagram applies the form of book entry voucher 1.2.2.6 General Journal Format:

Everyday, based on the examined vouchers, which are used as basis forrecording books, the transactions shall first be recorded in the general diary andthen, based on the data recorded in the general diary, be recorded in the generalledger, according to the accounting accounts If a unit opens a detailed accountingbook, it shall simultaneously record the general diary and the arising operationsshall be recorded in detail accounting book

In cases where the units open special diary books, daily basis shall be based

on vouchers which are used as basis for recording books and inscribed in specialdiary books

At the end of the month, at the end of the quarter, at the end of theyear ,accountant adds the ledger data, and generate a balance sheet Afterreconciliation, the figures on the general ledger and the detailed summary table areused to prepare the financial statements

In principle, the total debt arisen and total arisen on the balance sheet areequal to the total debt arisen and total arisen in the general ledger diary

1.2.2.7 Organize the voucher system: Documentation mode

All arising economic operations must make accounting vouchers for use asbasis for making entries in accounting books In the company, the accountingvoucher system is organized quite closely and scientifically To use all paymentvouchers according to the form set by the Ministry of Finance such as: Cashreceipt, Cash payment, Value Added Taxes, Debit Notes, Credit Notices, Exit bills

of sale of invoices, receipt of goods receipt, Payment slip or bank statement,written advance payment

The company has prepared the documents related to the arising economictransactions that must be complied with at the unit The accounting vouchersystem is circulated and approved in the order Document preservation is alsoimportant Documents such as bills of exchange, bills of lading, bills of lading, andother documents related to costs are the basis for inputting into the accountingsoftware Specifically, in the process of controlling production costs, some basicvouchers are used such as:

- Cost of materials directly: request for materials, ex-warehousing bills, bills,payment

- Direct labor cost: Time sheet, payroll summary table, list of payment ofsocial insurance, health insurance, labour union fee

- Fixed Asset Depreciation: Spreadsheet and Fixed Asset Depreciation

- Expenses for services purchased from outside: bills of electricity, water bills,bills

Enlightening International Education JSC’s accounting voucher system isorganized scientifically and closely to create favorable conditions for internalinspection and control of the Company

- User account:

Acc.1111: Cash

Acc.1112: Bank deposits

Acc.131: Account receivable

Acc.1331: VAT deducted

Acc.138: Other receivables

Acc.334: Pay for employeesAcc.338: Other payableAcc.341: Long-term loansAcc.411: Business capitalAcc.415: Financial reserve fund

Acc.153: Tools

Acc.156: Goods

Acc.211: Fixed assets

Acc.213: Intangible fixed assets

Acc.214: Depreciation of fixed assets

Acc.222: Joint ventures

Acc.241: Uncompleted construction

Acc.311: Short-term loans

Acc.421: Undistributed profitsAcc.431: Bonus and welfareAcc.515: Financial revenueAcc.611: Purchased

Acc.621: Materials expensesAcc.622: Direct labor costsAcc.623: Construction machineryAcc.627: General production costAcc.635: Financial expensesAcc.642: Enterprise Cost

CHAPTER 2: SYSTEMATIZE THEORETICAL ON ACCOUNTING

OF REVENUES, COSTS AND DETERMINATION OF BUSINESS RESULTS IN ENTERPRISES.

2.1 Accouting of Revenue

2.1.1 Definition

Pursuant to International Accounting Standard No 18 - Revenue (IAS 18):

“Revenue is a collection of economic benefits in the period, arising in the course ofnormal operation, increasing the equity source , rather than the share of capitalcontributors The revenue excludes revenues for third parties such as value addedtax ” Thus, while income includes both revenue and profits, revenue has beendistinguished from other types of income

If required by IAS 18, revenue needs to be calculated according to the actualvalue from the amount received, for example:

Sales of goods are recognized when the significant risks and rewardsassociated with ownership of the goods are transferred to the buyer;

Businesses do not continue to participate in managing ownership as well ascontrolling goods sold;

The revenue value can be reliably calculated;

Enterprises are likely to gain economic benefits from sales transactions;

The costs associated with transactions are reliably calculated

Although international accounting standards and Vietnamese accountingstandards (VAS14) have many similarities in revenue and income, there are alsodifferences in revenue recognition, specifically: revenue does not refer to otherincome content (IAS 18); According to VAS 14, revenue and other income aresubject to a different income for each specific item

2.1.2 Conditions for recording revenue:

Sales of goods are recognized when all of the following 5 conditions aresatisfied:

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

2 The enterprise no longer holds the right to manage goods as the owner ofgoods or to control goods

3 Revenue is determined with relative certainty

4 The enterprise has gained or will gain economic benefits from salestransactions

5 Determine the costs related to sales transactions

2.1.3 Principles of revenue accounting:

- Revenue arising from transactions is determined by the fair value of amountsreceived or will be earned after deducting (-) trade discounts, sales rebates and thevalue of returned goods

- In case of selling goods by deferred or installment payment method, it shall

be recognized as a turnover from immediate payment and recorded into financialincome from deferred payment interest in accordance with the time of revenuerecognition

- In case the enterprise writes a sale invoice and has collected sales proceedsbut has not yet delivered the goods to the end of the period, it is not considered as asale and it is not recorded revenue but only recorded to the crediting party moneyaccounts already collected by customers, when delivered to buyers, they shall berecorded in "Revenue" accounts

- For enterprises providing products, goods and / or services to meet therequirements of the State, which are subsidized or subsidized by the State according

to regulations, the revenue from subsidies or subsidies is the amount of moneyOfficially announced states, or actual subsidies

- VAT payable at the enterprise applying the direct method.

- Trade discounts arising in the period

- Discount of actual sales in the period

- Sales of returned goods arising in the period

- Carrying over of net revenue to calculate business results

Credit:

- Sales revenue generated in the period

Account 511 has no ending balance

Account 511 has 4 second grade Accounts:

- Account 5111 "Sales of goods"

- Account 5112 "Sales of products"

- Account 5113 "Revenue from service provision"

- Account 5114 "Revenue of allowances and subsidies"

These accounts can be detailed by type of goods, product or service sold

2 Account 512 "Internal revenue"

This account has the same structural content as Account 511

This account records sales within the company

2.1.6 Account chart:

2.2 Accounting of revenue Deductibles:

2.2.1 Trade discount accounting:

TK 521 "Trade discounts" are used to reflect discounts trade, which theenterprise has reduced or paid to the purchaser due to the purchase by the purchaser

of a large volume in accordance with the agreement on commercial discount stated

in the economic contract or commitment to buy and sell goods

Debit side:

- Number of commercial discounts accepted for customers

Credit:

Carry forward the trade discount amount arising in the period to Account 511

"Turnover from goods sale and service provision" to determine the net revenue ofthe accounting period

Account 521 has no ending balance

TK 521 has 3 second grade Accounts:

TK 5211: "Discounting goods"

TK 5212: "Discounting finished products"

Account 5213: "Service discount"

2.2.2 Accounting of returned goods:

Account 531 "Returned goods sale" is used to reflect the value of the number

of products, goods and services consumed or returned by customers for reasonssuch as violation of commitments, breach of business contracts goods, lost orsubstandard goods, goods of a wrong type or specifications

Debit side:

- Value of goods returned, paid back to customers or deducted from theamount owed by customers

Credit:

- Carrying over the value of returned goods generated in the period to Account

511 "Turnover from goods sale and service provision" to determine the net turnover

of the accounting period

Account 531 has no ending balance

2.2.3 Accounting of sales discounts:

Account 532 "Sale discounts" is used to reflect the actual discounts of goodssold in the accounting period to customers who are entitled to goods sold due topoor quality; Improper specifications as required in the signed contract

Debit side:

Sales discounts approved for customers

Credit:

To transfer all sales discounts arising in the period into Account 511

"Turnover from goods sale and service provision" to determine net revenue of theaccounting period

2.2.4 Documents used:

- A record certifying the returned goods

- A record certifying the sale price reduction

- Payment

- Debt notices

- Other original documents,

2.2.5 Account chart:

Explain the figure:

(1) Trade discount, value of returned goods, discount of goods sold in theperiod

(2) At the end of the period, transfer deduction to Account 511 to determinenet revenue Particularly for the value of returned goods concurrently with thereduction of turnover, the decrease in cost of capital must be recorded

2.3 Cost of goods sales accounting

2.3.1 Contents and principles of accounting:

Cost of goods sold is a general economic indicator reflecting the amountsubtracted from net revenue to calculate the business results of each accountingperiod, provided that the enterprises account their inventories according to thestandard declaration method The cost of goods sold is usually an expense that isusually recognized simultaneously with the revenue on the principle of matchingbetween revenue and deductible expenses

The basic content of the prime cost of goods sold in manufacturing enterprises

is the actual production cost of the products sold in each accounting period in theperiod:

- Fixed general production costs allocated

- Direct cost of raw materials, workers directly above the average

often

- Provision for devaluation of inventory

- Losses and losses of inventories, after deduction of personal liabilitycompensation

2.3.2 Account used:

Account 632 "Cost of goods sold"

Debit side:

- Cost of finished goods, goods and services consumed in the period

- Loss or loss of inventory after deducting material compensation

- The difference between the provision for devaluation of inventories whichmust be set up this year is larger than the provision made in the previous year

Credit:

- Cost of goods sold was returned

- The difference between the provision for devaluation of inventories whichmust be set up this year is smaller than the provision made in the previous year

- Carried over cost of products, goods and services consumed in the period todetermine business results

Account 632 has no ending balance

to divided by owners) Accordingly, some differences in cost recognition betweenVietnamese and International Accounting Standards are easily found as follows:

- According to IAS 38, expenses for training, research, advertising, preparationand reallocation are recorded as expenses in the period According to VietnameseAccounting Standard VAS 04, these expenses are considered prepaid and amortizedover a 3-year period, if the above costs bring future economic benefits

- According to IAS 21 - Borrowing expense, may include foreign exchangedifferences arising from foreign currency loans in the event that these differencesare considered as an interest expense adjustment The surplus between the carryingamount of the uncompleted asset and the recoverable value when the value or thefinal estimated cost of the asset is greater than the recoverable value of the netrealizable value Yes, the residual value is reduced (deleted) according to other IAS

requirements However, Vietnam Accounting Standard VAS 16 - borrowing costs

do not mention this issue

- According to IAS 16, "machines, equipment, workshops", the expense of overhaul

of fixed assets is accounted into expenses According to Vietnamese accounting standardVAS 03 "tangible fixed assets", the cost of overhaul of fixed assets will be recorded intolong-term prepayment accounts and allocated over several years

2.4.2 Content and accounting principles:

Selling expenses are expenses incurred in the consumption of goods or servicessuch as:

- Salary and expenses calculated according to the salaries of the sellers

goods, marketing, packaging, storage

- Depreciation of fixed assets in the storage, sales, cost of materials, packaging,tools

- Expenses for services purchased from outside and other expenses in cash such

as advertising, transactions, delivery, sales commission

In the process of accounting selling expenses, it must be monitored in detail bycost factors and depending on the business characteristics, managementrequirements of each industry, each enterprise selling expenses may be combined.under the different content, the director closely uses and economic efficiency ofcosts such as advertising costs, cost of each sale…

- Reduction of selling expenses

- Carry over selling expenses to calculate business results in the period orallocating selling expenses for products to be sold in the next period

Account 641 has no ending balance

- Account 6411 "Staff expenses"

- Account 6412 "Cost of materials and packaging"

- Account 6413 "Cost of tools and supplies"

- Account 6414 "Depreciation of fixed assets"

- Account 6415 "Warranty costs"

- Account 6417 "Expenses for services purchased from outside"

- Account 6418 "Other expenses in cash"

2.4.4 Account chart

Acc 334, 338 Acc 641 Acc 352 Expense for sale department Provisions for payables

Acc 152, 153, 242 Acc 911 Costs of packaging At the end of period, Total expenses

- Amounts of reduction of enterprise management expenses

- Transfer of administration expenses to calculate business results in the period

or allocate management expenses to unsold products at the end of the period

Account 642 has no ending balance

Account 642 has 8 second grade accounts:

- Account 6421 "Staff costs"

- Account 6422 "Cost of management materials"

- Account 6423 "Cost of office supplies"

- Account 6424 "Depreciation of fixed assets"

- TK6426 "Contingency expenses"

- Account 6427 "Expenses for services purchased from outside"

- Account 6428 "Other expenses in cash”

2.5.3 Account chart

Acc 334, 338 Acc 642 Acc 352 Expense for sale apartment Provisions for payables

Acc 152, 153, 242 Acc 911 Costs of packaging At the end of period, Total expenses

Acc 333

Tax & payable to state budget

2.6 Accounting of financial activities and financial expenses:

2.6.1 Accounting of revenue from financial activities:

- VAT payable under the direct method

- Transferring net financial income to account 911

Credit:

- Revenue from financial activities generated in the period

Account 515 has no ending balance

2.6.1.3 Account chart

Acc 3331 Acc 515 Acc 111, 112, 131, 138

(1) (3)Acc 911 Acc 413

(2) (4) Acc 121, 221, 222 (5)

* Explain the figure:

(1) Determination of payable VAT calculated by the direct method onfinancial activities (if any)

(2) Carrying over of financial activities turnover to determine business results

in the period

(3) Income from financial activities, receipt of notices of securities interests,interests from the sale of foreign currencies, discount payments enjoyed, revenuefrom infrastructure, revenue from real estate,

(4) Carrying over of foreign exchange differences during the period andrevaluating at the end of the period (after offset)

(5) Income from distributed profits, additional contribution to the joint venturecapital, loan interests, and securities trading interests, supplement to purchasesecurities

2.6.2 Accounting of expenses for financial activities:

2.6.2.1 Definition:

Financial expenses are expenses and losses related to capital activities andfinancial investment activities, including:

- Loss from securities transfer, securities sale expenses

- Cost of joint venture capital

- Lending and borrowing costs

- Loss due to sale of foreign currency, loss on foreign exchange ratedifference

- Accepted payment discount for customers who are entitled when customerspay before the due date

- At the end of the period, carry over all expenses and losses on financialactivities to determine the business results.

Account 635 has no ending balance

2.6.2.3 Account chart

Acc 129, 229 Acc 635 Acc 129, 229

(1) (6)Acc 111,112,131,141 Acc 911

* Explain the figure:

(1) Setting up provision for short-term and long-term investment decrease (forthe first time, supplementing)

(2) Payment discount for buyers of enjoyed goods and services Expensesincurred for borrowing activities, expenses for securities investment activities,expenses for financial activities; losses in exchange rates due to the sale of foreigncurrencies

(3) Loss on recovered investment (actual amount of revenue is smaller thanrecovered investment capital)

(4) Carrying forward losses due to foreign exchange differences; value of realestate investment

(5) Loan interests paid or payable

(6) Reversal of short-term and long-term investment reserves