Accounting of service and services determining the business results of services in insight hanoi travel and services joint stock company

VIETNAM NATIONAL UNIVERSITY, HANOI INTERNATIONAL SCHOOL GRADUATION PROJECT ACCOUNTING OF SERVICE AND SERVICES DETERMINING THE BUSINESS RESULTS OF SERVICES IN INSIGHT HANOI TRAVEL AND S

VIETNAM NATIONAL UNIVERSITY, HANOI

AND SERVICES JOINT STOCK COMPANY

STUDENT’S NAME: TRAN VIET DUNG

Hanoi - 2020

VIETNAM NATIONAL UNIVERSITY, HANOI

INTERNATIONAL SCHOOL

GRADUATION PROJECT

ACCOUNTING OF SERVICE AND SERVICES DETERMINING THE BUSINESS RESULTS OF SERVICES IN INSIGHT HANOI TRAVEL AND SERVICES JOINT STOCK COMPANY

SUPERVISOR: MSc NGUYEN TRA MY

STUDENT: TRAN VIET DUNG

LETTER OF DECLARATION

I hereby declare that the Graduation Project : “Accounting Of Service And Services Determining The Business Results Of Services In Insight Hanoi Travel And Services Joint Stock Company” is the results of my own research and has never been published in any work of others During the implementation process of this project, I have seriously taken research ethics; all findings of this projects are results of my own research and surveys; all references in this project are clearly cited according to regulations

I take full responsibity for the fidelity of the number and data and other contents of my graduation project

ACKNOWLEDGEMENT

While studying at International School – Vietnam National University,Hanoi Under the encouragement and support of family, friends along with the enthusiastic guidance of teachers in the school, especially the teachers in the International School, I have gained valuable knowledge as well as the opportunity to learn about Insight Hanoi Travel and Services Joint Stock Company From what I have learned and understand, I have successfully completed my graduation thesis

Inaddition, I would like to express my sincere thanks to the International Faculty teachers, especially the teacher, Mrs Nguyen Tra My, who kindly guided

me to complete this graduation thesis Finally, I would like to thank all of my staff

at the Accounting Department of Insight Hanoi Travel and Services Joint Stock Company, for their dedication, assistance, and conditions for me to complete the project

Finally, I would like to send my best wishes to my family, teachers, friends and all staff in Insight Hanoi Travel and Services Joint Stock Company good health, wish the company has a lot of success in their business

Hanoi, 27 May, 2020

Tran Viet Dung

CONTENT

LETTER OF DECLARATION i

ACKNOWLEDGEMENT ii

CONTEN iii

LIST OF TABLE vi

LIST OF DIAGRAM vii

LIST OF FIGURE viii

CHAPTER 1: INTRODUCTION 1

1 The necessity of the thesis 1

2 The purpose and meaning of the project 2

3 Subject and scope of the project 2

4 Thesis structure 2

CHAPTER 2: LITERATURE REVIEW 4

CHAPTER 3: METHODOLOGY 7

CHAPTER 4: FINDING 8

PART 1: THEORICAL 8

AND DEFINITION 8

1.1 Overview of service revenue and modes of service delivery 8

1.1.1 Service delivery concept 8

1.1.2 Modes of service delivery 8

1.2 Service revenue accounting and determination of service business results 9

1.2.1 The role of service revenue accounting and determining service business results 9

1.2.2 Duties of accounting service activities and determine the results of service delivery 9

1.3 Organizing accounting book system and reporting system 10

1.3.1 Forms of accounting books 10

1.3.2 Accounting reporting system: 12

1.4 Organize the accounting of sales and determine business results in terms of machine accounting 13

PART 2: PRACTICAL APPLICATION ANALYSIS AT INSIGHT HANOI TRAVEL AND SERVICES JOINT STOCK COMPANY 15

2.1 Overview of Insight Hanoi Travel and Services Joint Stock Company 15

2.1.1 The process of formation and development of Insight Hanoi Travel and Services Joint Stock Company 15

2.1.2 Features of service business activities at the Company 15

2.2 Characteristics of accounting work at the Company 16

2.2.1 Organizational structure of the accounting apparatus in the Company 16 2.2.2 Accounting policies applied at the Company a, Accounting organization 18

2.3 Actual situation of service revenue accounting and service business results at Insight Hanoi Travel and Services Joint Stock Company 20

2.3.1 Characteristics of service delivery and determination of service business results at Insight Hanoi Travel and Services Joint Stock Company 20

2.3.2 Accounting of service provision revenue and sales deductions 21

2.3.3 Cost of accounting for services provided at the Company 26

2.3.4 Accounting of business management expenses 27

2.3.5 Accounting of corporate income tax expenses 31

2.3.6 Accounting to determine service business results at the Company 32

2.4 Advantages & Limitation at Insight Hanoi Travel and Services Joint Stock Company 35

2.4.1 Advantages 35

2.4.2 Limit 36

2.4.3 The cause of the restriction 37

PART 3: PROPOSAL AND SOLUTION FOR COPANY 38

3.1 Solutions to improve revenue accounting at Insight Hanoi Travel and Services Joint Stock Company 38

3.2 Conditions for implementing the solution 40

CHAPTER 5: CONCLUSION 42

REFERENCES 43

APPENDIX 44

LIST OF TABLE

Form No 01: Deduction of the account ledger 511 Year 2019 44

Form No 02: Deduction of the ledger of account 131 in 2019 46

Form No 03: Deduction of the ledger account 3331 in 2019 48

Form No 04: Deduction of the ledger account 642 in 2019 50

Form No 05: Deduction of the 911 account ledger in 2019 58

LIST OF DIAGRAM

Diagram 1.3: Order of bookkeeping in machine accounting: 14 Diagram 2.2: Accounting organization in the form of General Journal 18 Diagram 2.3: Chart of accounting software applied at the Company 20

LIST OF FIGURE

Figure 1: System monitor of Misa Accounting Software 60

Figure 2: Calculating cost of service provided on Misa 61

Figure 3: VAT invoice 62

Figure 4: Transfer screen 63

Figure 5: Screen of cost accounting of CIT on Misa 63

Figure 6: Accounting book lock screen 64

CHAPTER 1: INTRODUCTION

1 The necessity of the thesis

Vietnam is a developing and strongly transformed country in the renovation period, the socio-economic life has been gradually improved In recent years, the country has gone up and developed significantly with figures on rapid economic growth, which are operated flexibly under the market mechanism under the management of the State and people's life step by step improved and is gradually

improving

In the process of integration and development, advantages and challenges always go hand in hand with many problems and situations for businesses: How to maximize profits? minimize costs, improve business position in the industry? To achieve this goal, businesses must use a variety of management tools, of which accounting is the most effective tool, making an important contribution to stabilizing the financial situation of enterprise

In the service sector, the provision of services is a key activity of the business Service provision is an art, the amount of service provided becomes a direct factor that changes the profitability of the business, the competitiveness of businesses in the market, and a basis for assessing the level of management management and business efficiency of the enterprise On the other hand, service business is not only a bridge between domestic units and economic sectors to form a unified whole, but also a factor to further strengthen international relations connecting the domestic market and foreign Service business results are general indicators for analyzing and evaluating economic and financial indicators of enterprises such as consumption structure, capital turnover, etc

Being aware of the importance of service revenue accounting and service business results

in the business, after a period of researching and exchanging with some employees in the finance and accounting department of Insight Hanoi Travel and Services Joint Stock

Company I chose the topic " Accounting of service and determining the business results

at Insight hanoi travel and services joint stock company" as my graduation thesis

2 The purpose and meaning of the project

- Research aim: Assessing the current situation of accounting of service revenue and service business results of Insight Hanoi Travel and Services Joint Stock Company will recognize the outstanding advantages and disadvantages in accounting work Since then, identifying positive and negative aspects to propose solutions to overcome and improve the service revenue accounting and to determine service business results, contribute to good management and accelerate the consumption process to bring high efficiency to the Company

 Analyze the service delivery situation of the Company to see the advantages

as well as exist in the service delivery process Since then proposed basic measures

to promote public service delivery

 Proposing some key solutions to improve the quality of the Company's accounting work

3 Subject and scope of the project

- Research subjects: Accounting of service revenue and service business results at Insight Hanoi Travel and Services Joint Stock Company

- Research scope: The thesis focuses on theoretical and practical issues

"Service revenue accounting and determination of service business results at Insight Hanoi Travel and Services Joint Stock Company"

Chapter 4: Finding

Part 1: Theorical and definition

Part 2: Practical application analysis at Insight Hanoi Travel and

Services Joint Stock Company

Part 3: Proposals and Solutions for company

Chapter 5: Conclusion

Through the process of getting to know and being supported and guided by lecturers as well as members of the accounting department of the company, I have somewhat grasped the actual situation of service revenue accounting and service business results at the Company But due to the limited level of ethics and the practical access time, my thesis cannot avoid defects I look forward to receiving the comments of teachers to improve my writing

CHAPTER 2: LITERATURE REVIEW

In economic and financial management in commercial and service enterprises, accounting as an indispensable tool in economic management, they are the science

of acquiring, processing and providing all information on assets, the movement of such assets to inspect and supervise all financial and economic activities of the

enterprise “Accounting of sale (service) and determination of business results” are

an effective tool to meet the management requirements of business activities Therefore, organizing the accounting of sales and determining business results need

to scientifical, rational, in accordance with the specific conditions of each enterprise that has an important meaning in improving business efficiency Collect, process and provide information to business owners, governing bodies, financial authorities, tax authorities and banks So that, The problems encountered and proposed solutions have been mentioned by many authors, with the advantages and disadvantages, and the important role of service accounting, sales accounting and determination of business results of enterprises Each business with different types

of service businesses and products will have different defects and remedies

In the research by author Bui Thi Hang (2018), in the beginning, the author

made the correct judgment about the importance of accounting work, especially

accounting service and determining the business results when emphasizing on

economic growth reached a record within 10 years (from 2008-2018), GDP grew at 7.08%, the service sector grows very fast, that make enterprise put under pressure

on competition On sales organization, which is increasingly implemented in every step and every department in order to optimize time, but still keep the accuracy and coherence in the process of the accounting In which the problems encountered in the determination of business results and a number of constituent reasons are raised

by the author as follows: For an enterprise with the type of transportation service, Enterprises have encountered many problems in the circulation of vouchers, forms

of sales books and detailed books to serve as a tool to determine business results,

which have not been thoroughly applied, causing difficulties in catching them in the past process of determining business results, creating gaps in accounting work

Following the topic, the article author Duong Ha (2014) with the topic:

"Accounting of sale and determining business results at POSO Technical Co., Ltd"

This is an essay on revenue accounting of raw material supplying enterprises, in this article, the author also identified the effect of improving the efficiency in accounting of sale and determine business results, which help businesses minimize unnecessary risks when goods are continuously imported and exported in large quantities Because of the improvement and strictness in accounting, it is necessary

to identify business results analyzed by the author and have a proper way to implement the process and coherence However, there is a disadvantage raised by manufacturing enterprises that the discount accounting is being recorded by the company in account 511 not in accordance with the current accounting regulations

in Vietnam

In the topic “Advance in management accounting” by Marc J Epstein and John Y Lee (2001), it reflects the importance of close linkage between departments

to provide documents, support and make businesses improve service quality, as well

as help accounting and determine business results become more effective In addition, the article also discusses the management of sales accounting, determining business results as one of the important parts to help businesses manage outputs, maximize profits and can become a support tool to help businesses be highly

competitive In the research by KS Cravens and C Guilding "the frequency and perceived usefulness of strategic management accounting" the the value of

accounting one again be asserted and accounting strategies in business

In fact, “Accounting of sale(service) and determining business results” is a

topic that analyzed by many authors, offering appropriate recommendations and solutions for each current situation of the company For each business and

depending on the type of business, there will be a way to determine business results and revenue accounting accordingly In the research papers, the author mentioned the increasing importance of revenue accounting and determining business results, because along with the development of the economy is increasing competition High that every business faces In order to maximize profits and allocate costs appropriately and accurately, as well as determine business performance to be able

to make an objective assessment along with minimizing risks for businesses, Every business wants to be brought to the optimal and effective method

Therefore, although there are still many shortcomings in the research process

that businesses often encounter such as "errors in the process of document transfer", "there are some mistake in unrecogned revenues" stated in the reports by author Nguyen Thi Kim Anh (2018); Pham Thi Trang (2012) and Dinh Thi Hong Van (2009)

In summary, depending on the purpose of the business, the analysis, completion of revenue accounting process and determination of business results become a useful tool to help businesses assess their financial position It can be used

as a strategy to compete with a rival company or to improve the company's accounting and management system This is truly a tool that will help businesses grow sustainably

CHAPTER 3: METHODOLOGY

The thesis uses Qualitative methods of analysis, statistics, synthesis and

comparison between theory and reality of Insight Hanoi Travel and Services Joint Stock Company base on the document collected in finding process Furthermore,

Content analysis is used as an effective tool for these project From that the

research can propose solutions to improve sales accounting and determine business results at Insight Hanoi Travel and Services Joint Stock Company

Data for the research is Secondary data - ask and exchange through

conversations with accountants and other employees at Insight Hanoi Travel and Services Joint Stock Company In addition, learn about research issues through consulting with instructors and accounting experts Refer to the textbooks, reference books, articles, magazines, theses, and dissertations on the topic of sales accounting and determination of business results Collect secondary documents on the situation

by observation methods, research on vouchers, accounting records, financial statements of Insight Hanoi Travel and Services Joint Stock Company in 2019 and beyond It is also possible to collect information on the media, other documents Synthesizing and processing collected documents as evidence for the research results: using content analysis methods, qualitative analysis and comparison between the actual situation and theoretical basis or accounting regime, to infer, induce and present research results

CHAPTER 4: FINDING PART 1 : THEORICAL AND DEFINITION

1.1 Overview of service revenue and modes of service delivery

1.1.1 Service delivery concept

Services are a kind of economic product but not an visible, a human work in the form of physical labor, knowledge, professional skills, organizational and commercial capabilities Services are activities and results that one party (seller) may provide to the other (buyer) and are essentially intangible and non-proprietary Service provision is a commercial activity whereby one party (hereinafter referred to as the service provider) is obliged to provide services to another party and receives payment; The service user (hereinafter referred to as customer) is obliged to pay the service provider and use the service as agreed

1.1.2 Modes of service delivery

Services provided include:

5 Providing domestic services

6 Providing cross-border service

a) Providing services across borders

Providing cross-border services is understood as the provision of services from the territory of one member to the territory of any other member Currently,

this is a very popular form of service provision in the world

b, Consumption services abroad

Service consumption abroad is the provision of services in the territory of one member, to service consumers of any other member

This mode of supply is characteristic of a number of service sectors, such as tourism or healthcare

c, Commercial presence

Commercial presence is the mode of providing services by a service provider

of a member, through commercial presence in the territory of another member

d, Presence of natural persons

Presence of natural persons means a mode of service provision whereby a service is provided to a supplier of a member, through its presence in the territory of another member However, in this mode of supply, the service provider is only a natural person

1.2 Service revenue accounting and determination of service business results

1.2.1 The role of service revenue accounting and determining service business results

Service activities and the determination of service delivery results has an important role not only for businesses but also for the entire national economy For the company, the revenue from providing services generates income to offset the expenses, has conditions to expand business activities, improve the lives of workers, create a source of revenue Accumulation for the national economy Determinating the results of service provision is the basis for accurately determining the performance of enterprises to the State through paying taxes, fees and charges to the state budget, determining Reasonable cost structure and highly effective of profits have been resolved harmoniously among economic benefits: State, collective and

- Record carefully, promptly and fully the services provided, clearly and transparently calculate the service provision expenses and enterprise management expenses and other expenses, reflecting the existing numbers and reflecting the situation rotation and use of assets and capital in the process of production and business activities of the enterprise From there, it is necessary to conduct accurate business results in each period

- Reflect and record fully, promptly and accurately the revenues, deductions of revenue and expenses of each type of activities in the enterprise,monitor and urge receivables from customers

- Reflect and calculate the results of each activity

- Provide accounting information for the preparation of Financial Statements and periodic analysis of economic activities, which related to the process of service provision, determination of service business results and distribution of results

Appreciate business performance as well as the performance of obligations to the State 1.3 Organizing accounting book system and reporting system

1.3.1 Forms of accounting books

- General journal entry form

- Form of journaling - Ledger

- Form of book entry Book entry

- Form of journaling on computer

Accounting form of General Journal

Note: Enter daily data

Print books, report at the end of the month and year

Collate and check

Original documents

Cash

book

Detailed accounting book Special diary

Ledger

Detailed table of incurred numbers

Financial report General diary

Balance sheet of arising accounts

Journal form -

Ledg

Note: Enter daily data

Print books, report at the end of the month and year

Collate and check

Basic characteristics of the Journal-Ledger form: The arising economic and financial operations are recorded in a chronological order and according to the economic contents (according to the accounting account) in the same book The only general accounting book is Journal - Ledger Bases for recording in the Journal-Ledger are accounting vouchers or general tables of accounting vouchers of the same type

Forms of Diary - Ledger accounting include the following types of accounting books:

- Finger note

- Detailed accounting books and cards

Form of book entry voucher

Original documents

Cash

book

Detailed accounting book

sumary

Financial report

General accounting vouchers

Basic characteristics of accounting forms Accounting vouchers: The direct basis for making general accounting books is the "Accounting vouchers" General accounting entries include:

- Write chronologically on the Register Voucher Register

- Write according to the economic content on the Ledger

Accounting records shall be made by accountants on the basis of each accounting voucher or the general sheet of vouchers of the same type with the same economic content

The accounting vouchers must be numbered up each month or the whole year (according to the ordinal numbers in the Register Book Register) and the attached accounting vouchers, must be to be approved by chief accountants before recording accounting books

Form of accounting Bookkeeping records include the following types of accounting books:

- Recording vouchers

- Register Book of voucher entry

- Ledger of account

- Detailed accounting books and cards

1.3.2 Accounting reporting system:

The final product of the process of accounting information processing is financial statements Financial statements include a system of aggregated financial and economic data, drawn from general accounting books, detailed accounting books and necessary written explanations about such figures

Information about accounting of service provision and determination of business results are reflected in the statement of income and financial statements

 Report of business results

In the Report of business results, sales accounting and determination of business results are presented in the following criteria:

- Sales of goods and services (MS01)

- Sales deductions (MS02)

- Net sales of goods and services (MS10)

- Cost of goods sold (MS11)

- Gross profit from goods sale and service provision (MS20)

- Revenue from financial activities (MS21)

- Financial expenses (MS22)

- Interest expense (MS23)

- Selling expenses (MS24)

- General and administration expenses (MS26)

- Net operating profit (MS30)

- Other income (MS31)

- Other expenses (MS32)

- Other profits (MS40)

- Accounting profit before tax (MS50)

- Current corporate income tax expense (MS51)

- Profit after tax corporate income (MS60)

1.4 Organize the accounting of sales and determine business results

in terms of machine accounting

Computer accounting is the process of applying information technology in an accounting information system, in order to convert accounting data into accounting information that meet the requirements of users

The organization of accounting work in the conditions of computer application must still comply with the contents and requirements of the accounting work organization in manual conditions, at the same time each content has its own characteristics suitable to Modern information application

 Order of information processing:

The original documents are updated into the machine through an input device and stored on the memory device as a detailed data file, from the detailed files transferred to the ledger files to systematize the next business accounting revenue

and determine business results for each management object Periodical ledger will

be processed to prepare accounting reports The order of information processing of the machine can be generalized as follows:

Diagram 1.3: Order of bookkeeping in machine accounting:

 Organizing revenue accounting and determining business results in terms of machine accounting application has the following functions and tasks:

- Complete data, accurate sales and internal consumption

- Identify, set up and install the formula for calculating the cost of goods sold, formulating an additional standard: The cost of goods sold (COGS), the cost of enterprise management (the enterprise management cost) are reasonable to determine the right of business results

- Follow the instructions of the accounting software to provide accurate and truthful information

In sumary, Through the process of learning the general theory of service revenue accounting and service business results in the service enterprise, the reader understands the theoretical basis of revenues and costs and determines the sales results in any commercial business - any service Thereby the reader also sees the importance of Service revenue accounting and service business results in any business in the service sector Therefore, to achieve profit maximization, businesses must determine for themselves a right path, a clear plan, which must carefully calculate the costs and results achieved Therefore, accounting

of service revenue and determining business results of services must be organized in a scientific and rational manner which is extremely necessary and meaningful in providing

economic, timely and major information body

Based on part 1 content and actual research at Insight Hanoi Travel and

Vouch-ne

Handling of accounting software on computers

- General accounting book -The TK account

- Detailed book -BCTC

-BC different

Enter documents into the machi-

ne

Services Joint Stock Company will be the basis for providing solutions to complete service revenue accounting and determine service business results

PART 2: PRACTICAL APPLICATION ANALYSIS AT INSIGHT HANOI

TRAVEL AND SERVICES JOINT STOCK COMPANY

2.1 Overview of Insight Hanoi Travel and Services Joint Stock Company

2.1.1 The process of formation and development of Insight Hanoi Travel and Services Joint Stock Company

2.1.1.1 Overview of Insight Hanoi Travel and Services Joint Stock Company

Internal

The Company is a Joint Stock Company, operating under the Enterprise Law

and other current regulations of the Socialist Republic of Vietnam

- Company Name: Insight Hanoi Travel and Service Joint Stock Company

- Director: Nguyen Phi Phong

- Address: No 81, Group 55, Nguyen Kha Trạc, Mai Dịch, Cau Giay district, Hanoi

- Tax code: 0108564604

- Website: Insighthanoi.com.vn

Insight Hanoi Travel Joint Stock Company was established on January 2, 2016

by the Hanoi Department of Planning and Investment 0108564604

Hanoi-based Insight Hanoi Travel Joint Stock Company, based in Hanoi, is a design company that provides custom group tours and itineraries to Vietnam and Southeast Asia countries

2.1.2 Features of service business activities at the Company

2.1.2.1 Functions, duties, business lines and characteristics of business services of the enterprise

 Mandates

Insight Hanoi Travel and Services Joint Stock Company Hanoi is an independent accounting unit, whose main function is to provide travel services to serve the needs of individuals and organizations inside and outside country

In the context of fierce competition of the current market mechanism, the Company

is always interested in sustainable development, expanding its business lines to enhance the position of the business as well as expand the market share in the field Tourism - Tournament full of competition

 Business lines and characteristics of business services

Insight Hanoi Travel and Services Joint Stock Company Hanoi specializes in providing travel services, tours at home and abroad

2.2 Characteristics of accounting work at the Company

2.2.1 Organizational structure of the accounting apparatus in the Company Organizational structure of the accounting apparatus:

Organization of the accounting system must first determine the number of accountants, the duties of each accounting department, the relationship between the accounting department and other related departments in the Company

The accounting organization must be simple, clear, easy to understand and assign reasonable and scientific responsibilities Apply appropriate accounting methods to strictly manage production and business activities

Derived from the characteristics of business organizations, management organizations as well as characteristics of accounting in accordance with the conditions and qualifications of the Company Insight Hanoi Travel and Services Joint Stock Company in Hanoi organize accounting work under the centralized model

According to this model, all accounting work is done in the accounting department of the Company

1 Chief accountant

He is the person who covers all of the Company's accounting work, decides everything in the accounting department, advises and assists the Director and is incharge of the Company At the same time, the chief accountant is also a general accountant, making accounting reports

2 Accounting of turnover, liabilities, taxes:

Track the situation of revenue and expenditure and write a receipt, track details of each customer's debt and check the accuracy of that debt

Write invoices for sold goods and declare the turnover of each kind of goods

Monitor and declare taxes on the software: Input VAT, Output VAT, CIT, PIT (if any)

3 Accounting of capital in cash, payment of wages, Insurance cum cashier:

Having the duty to open a cash fund book, bank deposit, monitor the situation of revenue and expenditure on water charges, installation money, purchase

of supplies and payment of services purchased from outside

Organize the accounting on the right time, quantity, quality of labor results

of employees in the Company, timely payment of wages and salary deductions, analyzing the situation of using the salary fund

Have the task of monitoring the situation of import, export, inventory of cash funds, bank deposits daily and at the end of the month together with accounting of cash in cash, collating and taking inventory of funds to prepare a fund inventory report

Diagram 2.1: Organization of the accounting apparatus at Insight Hanoi

Travel and Services Joint Stock Company

2.2.2 Accounting policies applied at the Company

- Accounting year: Starting from 01/01/N and ending on 31/12/N

- The monetary unit used in accounting is Vietnam dong

- Fixed asset depreciation method: Straight line

- Calculate VAT using the deduction method

- Accounting software to use: Misa

- Accounting book form: General journal

b Organization chart of accounting records in the form of a general diary

Diagram 2.2 : Accounting organization in the form of General Journal

Note:

Record daily

Record at the end of the month, or periodically

Original documents

book

Ledger TK

Summary book of details Balance sheet amounts arising

Financial report Cash

book

Collation check, transfer

Every day, based on the vouchers used as the book entry basis, first record the arising operations in the general diary, then the accounting software itself will record it in the ledger according to the appropriate accounting accounts, then record

it in the relevant detail books After checking the matching, the figures recorded in the ledger and summary tables are used to prepare the financial statements In principle, the total amount of arising Debit amount and the total arising amount of Credit on the balance sheet of arising amount must be equal to the total of arising Debit amount and the total arising amount of Credit in the General Journal in the same period The company does not set up a special diary

In order to mitigate the complex capital accounting at the unit, the Company used MISA accounting software to perform the accounting of economic transactions arising at the enterprise

Key features of MISA SME.NET 2017 accounting software

- Supporting enterprises in accounting management: Including 13 modules to manage invoices, money and assets, etc

- Warehouse Management: Helps businesses control all tools and instruments contained in the warehouse including: import, export, and inventory

- Salary and fixed asset management: allows accountants to manage fixed assets of the enterprise such as automatically calculating the detailed depreciation of each asset, reflecting the increase or decrease of assets

- Other modules: price module and tax module to manage the tax payment according to the standards of the tax department, the general module with the purpose of summarizing profit and loss, financial statements, closing books by term,

The Company's bookkeeping process is shown in the following chart:

Diagram 2.3: Chart of accounting software applied at the Company

Note: Enter daily data

Print books, report at the end of the month and year

Collate and check

2.3 Actual situation of service revenue accounting and service business results

at Insight Hanoi Travel and Services Joint Stock Company

2.3.1 Characteristics of service delivery and determination of service business results at Insight Hanoi Travel and Services Joint Stock Company

2.3.1.1 Service provision activities of the Company

Insight Hanoi Travel Joint Stock Company is a company that designs and

provides customized tours and itineraries to Vietnam and Southeast Asia

countries

Services provided by the Company include:

+ Provide domestic tours

- Detailed book

- Financial report

- Management accounting report

ACCOUNT ING SOFTWAR

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COMPUT

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+ Providing foreign tours

The company has 2 main customers: business customers and retail customers

2.3.1.2 Mode of service provision

Services are provided within the national territory, catering to domestic needs Customers of the Company are usually business customers and individual customers Services are primarily provided and take place within the territory of Vietnam

+ Enterprise customers are units, organizations and businesses Customers are very diverse and can be production units or business units in the country and abroad, private commercial companies,

+ Individual customers: The service pack is sold to consumers The target audience is domestic and foreign individuals who have demand for services regardless of race and nationality

2.3.2 Accounting of service provision revenue and sales deductions

2.3.2.1 Revenue accounting

Revenue is the total economic benefits that an enterprise gains in the accounting period, arising from its normal business and production activities, thus contributing to the increase in equity Revenue is determined by the fair value of amounts received or will be earned after deducting trade discounts, sales rebates and returned goods

Determining revenue from service provision:

Sales of goods and

Sales of goods by invoice - Service deductions

1.2.3.1.2 Conditions for recording revenue

According to VAS 14, sales are recognized only when all of the following 5 conditions are simultaneously met:

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

- The Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold

- The revenue can be measured reliably

- Businesses have gained or will gain economic benefits from sales

- Determine the costs associated with the sale

 Accounting vouchers used:

- VAT invoice

- Receipt, credit note, bank transfer check

And some other relevant documents

 Accounting books used:

- Accounting books that businesses use: Account 511, General journal numbers,

Diary numbers for collection,

Summary: Service provision revenue in 2019

Revenue from services provided

overseas

 Sales revenue accounting process:

Process of document rotation

+ Sales document: Sales person, prepares 1 Sales document, then passes it to the sales accountant as a basis for making VAT Invoice Sales staff, chief accountant, storekeeper sign the sales slip and deliver the sales slip to the customer + VAT invoice: As a sales accountant is made in 3 copies, then verifies the information on the invoice, makes sure the accuracy and then sends it to the Director to sign all 3 copies, the customer signs the buyer on the invoice,single, copy 1 are kept at the volume, the second copy is delivered to the customer, the third copy of sales accounting is kept for use as a basis for book entry

+ Receipt: When selling cash, the sales accountant of the Company prepares

a receipt from the software and then enters the necessary data The accountant only prints one copy of the receipt, then passes it to the chief accountant and the payer to sign it, then the receipt is kept by the sales accountant

+ Credit advice: Upon receiving the bank credit note, the sales accountant compares the amount with the detailed bank deposit book for each bank to see if there is a difference, if there is no accounting discrepancy The sale is based on that for data entry, the Credit Note is archived by the sales accountant After receiving VAT Accounting Invoice, basing on inputting data into computer accounting program according to the software's procedure

Sales accountants make VAT invoice into 3 copies After that, the sales accountant shall check the information on the invoice, ensure the accuracy and accuracy, then transfer it to the customer for signature, transfer to the director for signature and stamp

After the VAT invoice is issued, the sales accountant shall collect the customer 's money according to the amount stated in the invoice, make a collection slip for the customer to sign, transfer it to the chief accountant to sign, and then the receipt shall be made by the sales accountant save

Based on Copies 03 of the receipt, added VAT Invoice, the sales accountant enters the data into the system

 Cases of sale to Business customers

- Revenue from corporate customers accounts for a high proportion of total revenue Because the service provided to business customers is the tour packages with high prices, customers will come to the sales office to make sales, purchase and service contracts In this contract, the Company and the customer will have to declare information such as: Business name, Address, Representative (attached Power of Attorney if the legal representative signed), Position After that, the two parties agree on the content of the contract on the content of the transaction work; price; payment term; payment method; time of service provision and other provisions

After completing the terms of the contract, the two sides will sign a service provision contract Sales department will make VAT invoice (3 times) similar to the case of supplying goods and services to retail customers Value can be 30%, 50%, 100% depending on contract terms

Illustration: On May 18, 2019, sales of packages of services provided to An

Thang Construction and Trading Joint Stock Company under Contract No 0000072

01GTKT3 / 002 VALUE ADDED INVOICE Symbol:TP / 19P

Contact 2: Delivery to buyer No 0000072

No Name of goods and

 The revenue recognized after the completion of services is equal to the

total amount exclusive of VAT

 In case of sale to retail customers:

Sales to retail customers are conducted via the Website or sales office of the Company When customers come to buy goods or services, the sales staff will give advice to customers about each service tour package Based on their needs, customers choose the tour that suits their needs and make payment Sales staff give vouchers to buy goods and services for accounting Accountant makes VAT Invoice (3 copies) The VAT invoice must contain the following details: date, unit of sales, buyer, name of goods, unit of calculation, quantity, unit price, amount, VAT, total payment price and full Signature of buyer and salesperson, unit leader

At the end of the day, the VAT invoice is checked by the sales accountant to check the reasonableness and validity of the Invoice and enter data into the computer

- The time of recognition of the Company's retail turnover coincides with the time when the Company makes a VAT invoice

Sales deductions

Amounts reduced revenue Including the following main items:

- Trade discount: Used to reflect the amount that enterprises have reduced or paid to service users in large quantities under the trade discount agreement stated in the economic contract of sale or purchase commitments to purchase and provide services

- Returned goods used: Used to reflect the turnover of the services sold returned by customers but due to the enterprise's fault such as violation of commitments, contracts,

- Sales rebates: Used to reflect discounts, discounts on service delivery during the period

1.2.3.2.2 Accounting for sales deductions

Documents used:

VAT invoice; Bill of sale; Minutes of discount agreement; Economic

contracts; Payment documents (receipts, credit notes, bank debit notes); Discount payment list

2.3.3 Cost of accounting for services provided at the Company

 Accounting vouchers used

Documents used: Invoice of input VAT, invoice of input sales, list of purchased goods and services, payroll of staff directly leading the tour

 Accounting accounts used : Account 632

 Accounting process Cost of services provided

- Accounting of expenses directly related to each Tour at the beginning of accounts 621, 622, 627 Combining from three (03) accounts to 154, from 154 is transferred to 632 at the end of the period

+ Account 621: Bus for direct transport, meals, hotels, sightseeing tickets, water money for guests, towels, hats, umbrellas,

+ Account 622: Expenses for tour guides directly involved, including salaries and insurance premiums of tour guides directly involved

+ Account 627: Salary of the executive department, local guides, Cost of clothing, footwear, gloves, speakers, backpacks and other general expenses,

- Each time accounting, the program will not automatically calculate the cost of capital and accounting does not enter the cost price into the machine Based on the cost

of each tour code, the program will aggregate itself

- On MISA software, the software automatically calculates the average cost

price of the Tour code and automatically updates the blank cost of goods in the previous sales documents

- Accounting books used: Ledger Account 632,

Summary table: Service capital value

2.3.4 Accounting of business management expenses

Business management expenses include:

- Selling expenses: including actual expenses incurred in the process of providing services, including costs of offering, product introduction, product advertising, service delivery commissions, wages member of the service division (salary, wages, allowances, ), social insurance, health insurance, trade union fees, unemployment insurance, labor accident insurance for employees service provider; expenses on materials, labor tools, depreciation of fixed assets used for service provision; services purchased from outside (electricity, water, telephone, fax, .); Other monetary expenses

- Enterprise management expenses: are all expenses related to production and business management activities, administrative management and a number of other items of a common nature throughout the enterprise Enterprise management expenses include managerial expenses, management materials, office equipment, fixed assets depreciation, taxes, fees and charges, contingency expenses, and service costs Purchase from outside, cost by other money

In each expense category, details of each expense content are monitored as follows:

a) For selling expenses: