MINISTRY OF FINANCE SOCIALIST REPUBLIC OF VIETNAM Independence – Freedom - Happiness No:15/2006/QD-BTC Hanoi, 20 March 2006 D EC ISION on issuance of the business accounting system MINISTER OF FINANCE - Pursuant to the Law on Accounting No 03/2003/QH11 dated 17 June 2003 and Government Decree No.129/2004/ND-CP dated 31 May 2004, making detailed regulations and providing guidelines for implementation of a number of Articles of the Law on Accounting in business activities; - Pursuant to Government Decree No.77/2003/ND-CP dated July 2003, stipulating functions, duties, powers and organisational structure of the Ministry of Finance; Following the proposal by the Director of the Accounting System and Auditing Department and the Office Manager of the Ministry of Finance, DECIDES: Article 1: To issue “the business accounting system” applicable to all enterprises in all fields and all economic sectors throughout the country The business accounting system shall include four parts: Part I: Bookkeeping Account System ; Part II: Financial Statement System ; Part III: System of Accounting Documents; Part IV: Syustem of accounting Books Article 2: Enterprises, companies and corporations shall, based on “the business accounting system”, carry out research, concretize and formulate the accounting system and specific regulations on its contents, and the method of application of such accounting system, which are appropriate to business chracteristics and management requirements in each industry, each operational field and each economic sector Where there is an amendment or addition to class-1 or class-2 accounts or an amendment to financial statements, a written agreement by the Ministry of Finance must be obtained Within the scope regulated in the business accounting system and in implementing documents issued by superior administration bodies, enterprises shall study and apply the list of accounts, source documents and accounting books, and select the form of accounting appriopriate to their business and production characteristics, management requirements and accouting work Article 3: This Decision shall have full force and effectafter 15 days fronm the date on which it is published in the official gazette In particular, the regulations on “preparation of mid-year consolidated financial statements” in point 4, and “responsibility for preparation and presentation of financial statements” in Section A.I, Part II sghall be implemented as from 2008 This Decision shall replace Decision No.1141 TC/QD/CDKT dated November 1995 of the Minister of Finance, issuing “the business accounting system”; Decision No.167/2000/QDBTC dated 25 October 2000 of the Minister of Finance, issuing “the regime of business financial statements”, Circular No.10 TC/CDKT dated 20 march 1997, providing “guidelines on amendment and addition to the business accouting system”; Circular No.33/1998/TT-BTC dated 17 March 1998, providing “guidelines on accouting for, appropriating and using provisions for reduction in prices of inventory, for bad debts and for recduction in prices of securities at State enterprises”; Circular No.77/1998/TT-BTC dated June 1998, providing “guidelines on exchange rates for conversion of foreign currencies into Vietnamese dong, used for accounting treatment by enterprises”; Circular No.100/1998/TT-BTC dated 15 July 1998, providing “guidelines on accounting for VAT and Business Income Tax (BIT)”; Circular No.180/1998/TT-BTC dated 26 December 1998, providing “additional guidelines on accounting for VAT”; Circular No.186/1998/TT-BTC dated 28 December 1998, providing “guidelines on accounting for export-import duties and special sales tax”; Circular No.107/1999/TT-BTC dated September 1999, providing “guidelines on accounting for VAT on finance lease activities”; Circular No.120/1999/TT-BTC dated October 1999, providing “guidelines on amendment and addition to the business accounting system”; Circular No.54/2000/TT-BTC dated June 2000, providing “guidelines on accounting for business establishments’ goods sold by their affiliated units located in other provinces and cities and practicing dependent cost accounting, and by their agents for commission” Article 4: The contents specified in Decisions issuing accounting standards and in Circulars providing guidelines on application of accounting standards issued from stage to stage 5, which are not contrary to those specified in this Decision, shall still be valid Article 5: The ministries, ministerial equivalent bodies, people’s committees of provinces and cities under central authotrity shall be responsible for instructing units under their administration to apply “the business accounting system” issued together with this Decision Article 6: The Director of the Accounting System and Auditing Department, the Ministry of Finance’s Office Manager, the Director of the Corporate Finance Department, the General Director of Taxation, and heads of relevant units under the Ministry of Finance shall be responsible for guiding and examining the implementation of this Decision Recipients: FOR MINISTER - Thủ tướng, Phó Thủ tướng Chính phủ (để báo cáo); - Văn phịng Chính phủ; DEPUTY MINISTER - Văn phịng Quốc hội; - Văn phòng Chủ tịch nước; - Văn phòng TW Đảng; - Các Bộ, quan ngang Bộ quan thuộc Chính phủ; - Tồ án nhân dân tối cao; - Viện kiểm sát nhân dân tối cao; - UBND, Sở Tài chính, Cục thuế tỉnh, TP trực thuộc TW; - Cục kiểm tra văn (Bộ Tư pháp); - Hội Kế toán Kiểm toán Việt Nam; - Hội Kiểm toán viên hành nghề Việt Nam; - Các Cơng ty kế tốn, kiểm tốn; - Cơng báo; - Các đơn vị thuộc Bộ Tài chính; - Vụ Pháp chế (Bộ Tài chính); - Lưu VT (2 bản), Vụ CĐKT &KT (signed) Tran Van Ta PART I BOOKKEEPING ACCOUNT SYSTEM I- GENERAL PROVISIONS 1- Bookkeeping accounts are used to classify and systematize economic and financial transactions according to their economic targets The business bookkeeping account system includes class-1 accounts, class-2 accounts, balance shhet accounts and off balance sheet accounts in accordance with the provisions in this Decision 2- Enterprises, companies and corporations shall, based on the bookkeeping account system, carry out research on and make use of a detailed bookkeeping account system which is appropriate to their business and production chracteristics and management requiremnets, but such a detailed bookkeeping account system must conform to the content and structure of, and the accounting methods in, corresponding general bookkeeping accounts 3- Where enterprises, companies or corporations need to add class-1 or class-2 accounts or amend class-1 or class-2 accounts in relation to name, sign and contents of, or methods of accounting for particular economic transactions, they must obtain a written approval from the Ministry of Finance before making such an addition or amendment 4- Enterprises, companies or corporations may further set up class-2 or class-3 accounts for the accounts whose class-2 or class-3 acount is not stated in the list of business bookkeeping account system issued together with this Decision in order to serve their management requirements, and they shall not be required to obtain an approval from the Ministry of Finance II- LIST OF BUSINESS BOOKKEEPING ACCOUNT SYSTEM No Serial Account Number Class Class 2 NAME OF ACCOUNT REMARK TYPE OF ACCOUNT SHORT-TERM ASSETS 01 1111 1112 1113 In vestment in short-term securities Bonds Ordinary bonds, treasury bonds, term bonds 1281 1288 05 Cash in transit Vietnamese currency Foreign currency 1211 1212 04 Deposits Vietnamese currency Foreign currency Gold, silver, precious metals, gemstones 1131 1132 03 Cash Vietnamese currency Foreign currency Gold, silver, precious metals, gemstones 1121 1122 1123 02 111 Other short-term investments Term deposits Other short-term investments 112 113 121 128 06 129 Provisions for reduction in prices of short-term investments 07 131 Accounts receivable from customers 08 133 Detailing each bank 1361 1368 Deductible VAT Deductible VAT on goods or services Deductible VAT on fixed assets Internal receivables Business capital at affiliated units Other internal receivables 1381 1385 1388 Other receivables Insufficient assets awaiting handling Receivables from equitisation Other receivables 1331 1332 09 136 10 138 Detailing each entity 5 11 12 139 141 Provisions for bad debts Advances 13 14 15 16 142 144 151 152 Short-term prepaid expenses Short-term mortgages, deposits or collateral Purchases in transit Raw materials, materials 17 18 19 20 153 154 155 156 Tools, instruments Expenses of work in progress Finished products Goods Purchase prices of goods Costs of purchases Property Goods on consignment Goods in bobded warehouse 1561 1562 1567 21 22 157 158 23 24 159 161 1611 1612 Detailing each entity Detailing by management requirements Exporter or importer permitted to esatblish bonded warehouse Provisions for reduction in prices of inventory Adminmistrative payments Administrative payments in previous year Administrative payments in this year TYPE OF ACCOUNT LONG-TERM ASSETS 25 211 2111 2112 2113 2114 2115 2118 26 27 212 213 2131 2132 2133 2134 2135 2136 2138 28 214 29 30 31 32 217 221 222 223 2141 2142 2143 2147 Tangible fixed assets Buildings, architectural structures Machinery or equipment Means of transport or transmission Equipment or devices used for management Perennial plants, animals working and giving products Other fixed assets Fixed assets under a finance leace Intangible fixed assets Land use right Distribution right Copyright, patent Trademarks of goods Computer software Licence and franchising licence Other intangible fixed assets Wear and tear of fixed assets Wear and tear of tangible fixed assets Wear and tear of financially-leased fixed assets Wear and tear of intangible fixed assets Wear and tear of invested property Invested property Investment in subsidiaries Capital contribution to a joint venture enterprise Investment in an associated company 33 228 242 243 244 Other long-term investments Shares Bonds Other long-term investments Provisions for reduction in long-term investments Capital construction in progress Procurement of fixed assets Capital construction Major repair to fixed assets Long-term prepaid expenses Assets on which income tax is postponed Long-term deposit or collateral 39 40 41 311 315 331 TYPE OF ACCOUNT ACCOUNTS PAYABLE Short-term loan Long-term debt falling due Accounts payable to sellers 42 333 2281 2282 2288 34 35 229 241 2411 2412 2413 36 37 38 3331 33311 33312 3332 3333 3334 3335 3336 3337 3338 3339 43 334 3341 3348 44 45 46 335 336 337 47 338 48 49 50 3381 3382 3383 3384 3385 3386 3387 3388 341 342 343 3431 Taxes and charges payable to the State VAT payable Output VAT VAT on imports Special Sales Tax Export/Import Duties Business Income Tax (BIT) Personal Income Tax (PIT) Natural resources tax Housing and land tax, land rental Oother types of tax Fess, charges and other items of payment Payables to employees Payables to government officials and employees Payables to other employees Expenses payable Internal payables Payments for completed work under a construction contract Other payables Suplus assets awaiting handling Labour union budget Social insurance Medical insurance Payables for equitisation Receipt of short-term deposit or collateral Unrealized revenue Other payables Long-term loan Long-term debts Issued bonds Par value of bonds Detailing each entity Construction company makes payments for completed work 3432 3433 51 52 53 344 347 351 54 352 Discount on bonds Excesses over bonds Rceipt of long-term deposit or collateral Postponed income tax payable Contingency fund for loss-of-employment allowances Provisions that must be returned LOẠI TK OWNERS’ EQUITY 55 411 4111 4112 4118 56 57 412 413 4131 4132 58 59 60 61 414 415 418 419 62 421 4211 4212 63 431 4311 4312 4313 64 441 65 461 Source of business capital Owners’ investment capital Surplus of shareholders’ equity Other capital Difference in property revaluation Foreign exchange differences Difference in revaluation of foreign exchange gains or losses at the closing of a financial year Foreign exchnage differences in the stage of investment in capital construction Development investment fund Financial contingency fund Other funds founded from owners’ equity Fund’s shares Undistributed profits Undistributed profit in the previous year Undistributed profit in this year Reward or welfare fund Reward fund Welfare fund Welfare fund forming fixed asset Source of capital invested in capital construction 4611 4612 66 Source of administrative budget in this year 466 Source of administrative budget Source of administrative budget in the previous year 67 Shareholding company Shareholding company Applicable to State enterprises Used for companies or corporations with source of busget Source of budget forming fixed asset 511 5111 5112 5113 5114 5117 TYPE OF ACCOUNT REVENUE Revenue from sale of goods and provision of services Revenue from sale of goods Revenue from sale of finished products Revenue from provision of services Revenue from allowances or price subsidies Revenue from trade in invested property Detailing by management requirements 68 512 5121 5122 5123 69 70 71 72 515 521 531 532 Revenue from internal sales Revenue from sale of goods Revenue from sale of finished products Revenue from provision of services Applicable to Internal sales Revenue from financial operations Trade discount Returned sales Reduction in prices of goods sold TYPE OF ACCOUNT PRODUCTION OR BUSINESS COSTS 73 6111 6112 Purchase of goods Purchase of raw materials or materials Purchase of goods 6231 74 75 76 611 Costs of raw materials or materials directly used Costs of direct employees Costs for use of construction machinery Costs of employees 621 622 623 6232 6233 6234 6237 6238 77 627 6271 6272 6273 6274 6277 6278 78 631 79 80 81 632 635 641 82 6411 6412 6413 6414 6415 6417 6418 642 6421 6422 6423 6424 6425 6426 Costs of materials Costs of production instruments Cost of amortization of construction machinery Costs of hired services Other costs in cash General production costs Costs of workshops’ employees Costs of materials Costs of production instruments Costs of amortization of fixed assets Cost of hired services Other costs in cash Cost of production Historical cost of goods sold Financial costs Costs of sale Costs of employees Costs of materials or packing Costs of instruments or appliances Costs of amortization of fixed assets Costs of warranty Costs of hired services Other costs in cash Costs of business management Costs of managers Costs of managed materials Costs of stationery Costs of amortization of fixed assets Taxes, fees and charges Provisions Application of the method of periodical inventory Applicable to construction company Method of periodical inventory 6427 6428 Costs of hired services Other costs in cash TYPE OF ACCOUNT OTHER INCOMES 83 711 Other incomes Detailing by operations TYPE OF ACCOUNT OTHER COSTS 84 811 85 Other costs 821 8211 8212 86 911 Detailing by operations BIT costs Current BIT costs Postponed BIT costs TYPE OF ACCOUNT DETERMINATION OF BUSINESS RESULTS Determination of business results TYPE OF ACCOUNT OFF BALANCE SHEET ACCOUNTS 001 Hired assets 002 Materials or goods held on behalf of other entities, or received for processing Detailing by management requirements 003 Goods received for sale on behalf of other entities, or taken as goods on consignment or mortgages 004 Bad debts written off 007 Foreig currencies 008 Estimate for administrative or project costs PART II FINANCIAL STATEMENT SYSTEM I/ GENERAL PROVISIONS A Annual and mid-year financial statements Purposes of financial statements Financial statements are used for the objective of providing information about the financial position, performance and cash flows of an enterprise, which meets management requirements of the enterprise’s owner and State bodies, and is useful to a wide range of users in making economic decisions The financial statements must provide information about an enterprise’s: 10 The State makes mandatory regulations on forms and contents of accounting books, and the method of recording on the ledger and journal; and makes instructional regulations on Detailed accounting books or cards 2.1 General accounting books 1/ The journal is used to record economic and financial transactions occuring chronologically in each accounting period and in an accounting year, and corresponding accounts of those transactions The accounting figures on the journal show the total amounts in the debit side and the credit side of all accounting accounts used by the enterprise The journal must show fully the following items: - Date of making entries in the journal; - Serial number and date of accounting documents serving as a basis for recording the journal; - Summary contents of the economic or financial transaction occurring; - Amount of money of the economic or financial transaction occurring 2/ The ledger is used to record economic or financial transactions occuring in each accounting period and in an accounting year in conformity with the accounting accounts stipulated in the system of accounting accounts applicable to enterprises The accounting figures on the ledger show the general condition of assets, sources of equity, business activities and results of an enterprise The ledger must show fully the following items: - Date of making entries in the ledger; - Serial number and date of accounting documents serving as a basis for recording the ledger; - Summary contents of the economic or financial transaction occurring; - Amount of money of the economic or financial transaction occurring, which is recorded in the debit side or credit side of the account 2.2 Detailed accounting books or cards The detailed accounting books are used to record economic or financial transactions related to accounting objects which need to be monitored in detail in accordance with the management requirements Figures on the detailed accounting books provide information necessary for management of each type of asset, source of equity, turnover and expenses which have not been shown on the journal and the ledger The number and structure of detailed accounting books are not stipulated compulsively Enterprises shall base on the State’s instructional regulations on detailed accounting books and management requirements of enterprises to establish detailed accounting books necessary and appropriate for them System of accounting books Each accounting unit shall only use an official and sole system of accounting books for an accounting year An enterprise must, based on the system of accounting accounts applied by the enterprise and its management requirements, establish general accounting books and detailed accounting books which are necessary Responsibilities of persons who keep and make entries in accounting books Accounting books must be managed tightly by individuals who are appointed to keep and make entries in such books When accounting books are given to whichever employee, 50 that employee must be responsible for making entries in the books and keeping such books during the period for which the accounting books are used When the employee keeping and making entries in accounting books is changed, the chief accountant must organise the handover of responsibilities between the old and new employees The minutes on handover of responsibilities must be signed and certified by the chief accountant Making entries in accounting books by hand or by computer An accounting unit is permitted to make entries in accounting books by hand or by computer Where an accounting unit makes entries in accounting books by hand, it must comply with the regulations on accounting forms and accounting books as stated in Section II“Accounting Forms” The unit is permitted to further establish detailed accounting books based on its management requirements Where an enterprise makes entries in accounting books by computer, it shall be permitted to either purchase or construct itself an accounting form on computer accordingly The computer accounting form applied by the enterprise must ensure the following requirements: - Having necessary general accounting books and detailed accounting books to meet the accounting requirements as regulated General accounting books must contain full items in accordance with the regulations on accounting books - Complying with the regulations on establishing, recording, closing and amending books of account in accordance with the Accounting Law, the implementing documents and the regulations in this accounting system - An enterprise must base on standards and conditions of the accounting software stipulated by the Ministry of Finance in Circular No 103/2005/TT-BTC dated 24 November 2005 to select an accounting software appropriate to its management requirements and conditions Establishing and recording books of account 6.1- Establishing books of account Books of account must be opened at the opening of an accounting year With respect to a newly established enterprise, books of account must be opened from the date of its establishment The enterprise’s legal representative and chief accountant shall be responsible for approving hand-recorded accounting books before thay are used, or approving official accounting books after thet have been printed out from a computer Books of account must be the ones printed or prepared beforehand, and may be bound into books or left in separate sheets Having been used, such sheets must be bound together into books for filing Before using books of account, an enterprise must complete the following procedures: With respect to books of account in the form of books: On the first page of such books, it is required to clearly record name of the enterrprise, name of the book, date of opening the book, the accounting year, and the period for which the book is recorded The accounting books must contain full names and signatures of the person keeping and recording them, the chief accountant and the legal representative of an 51 enterprise, the date of closing the books or the date of transferring the books to another person Books of account must be numbered from the first page to the last page; and the space between two consecutive pages of the accounting books With respect to books of account in the form of loose sheets:: It is required to record on the top of each loose sheet the enterprise’s name, the ordinal number of each loose sheet, the book’s name, the month in which the book is used, and full name of the person keeping and recording the book Before being used, loose sheets must be signed and certified by the enterprise’s director or an authorised person, and stamped with the enterprise’s seal Loose sheets must be kept safely and arranged in order so that they can be found easily 6.2- Recording books The recording on books of account must be based on audited accounting documents All data recorded on books of account must be supported by legal and valid accounting documents 6.3- Closure of books of account At the closing of an accounting period, books of account must be closed before financial statements are prepared In addition, books of account must be closed in the case of an inventory or in other cases as regulated by law Amendment to accounting books 7.1- Upon discovery that the hand-recorded books of account contain mistakes in the process of recording books of account, an enterprise shall not be permitted to erase such mistakes which cause a loss of falsely-recorded information or data, but shall make an amendment based on one of the following methods: (1)- Method of rectification: This method is used to rectify mistakes by drawing a line to delete the falsely-recorded data, howwever, it is required that the mistakes be seen clearly Above the deleted data, number or words shall be recorded in ordinary ink, and the signature of a chief accountant or a person in charge of accounting is put besides the place of amendment This method shall be applied in the following cases: - Mistakes in explanation, unrelated to the corresponding relation between accounts; - Mistakes not affecting the otal sum (2)- Method of recording negative number (also called method of recording in red ink): This method is used to amend mistakes by: recording in red ink or recording in parentheses the falsely-made entries to cancel such entries Recording properly-made entries in ordinary ink to substitute for the falsely-made entries This method shall be applied in the following cases: - Mistakes as to corresponding relation between accounts, resulted from falsely-made entries which cannot be rectified by the method of rectification - Discovery of mistakes after financial statements have been submitted to the competent body In this case, amendment shall be made in the accounting book in the year in which mistakes are discovered, based on the non-retroactive or retroactive method in accordance 52 with the regulations of the Accounting Standrad No.29 “Change in accounting policy, accounting esttimates and mistakes”; - Mistakes by which an entry is made in an account where the sum has been recorded many times, or where the falesely-recorded number is larger than the properly-recorded number When applying the method of recording negative numbers to rectify the mistake, an enterprise must prepare a “rectification document” signed and certified by the chief accountant (or by the person in charge of accounting) (3)- Method of making additional entry: This method shall be applied in the case where an accountant records properly the corresponding relation between accounts but the sum entered up in books of account is smaller than the one rcorded on documents, or where the accountant omits, not adding up all the money recorded on documents When making an amendment under this method, the accountant must prepare “additional registration documents”, entering up in ordinary ink the short money in the book of account 7.2- Amendment in the case of recording the books of account by computer (1)- Where mistakes are discovered before the annual financial statements are submitted to the competent State body, the accountant must make a direct amendment on computer accounting books of that year; (2)- Where mistakes are discovered after the annual finacial statements are submitted to the competent State body, the acountant must make a direct amendment on the computer accounting book of the year in which mistakes are discovered, making a note on the last line of that computer accounting book (3)- When making entries in the accounting book by computer, all amendments shall be made under “the method of recording negative numbers” or “the method of making additional entry” 7.3- When the annual finalisation report is approved or when the inspection, examination or audit is closed and official conclusions are made, if there is a decision by which the finacial statements’ data related to those recorded on accounting books must be amended, the accounting unit has to amend the accounting books and the balance of relevant accounts based on the regulated method The amendment shall be directly made on accounting books of the year in which mistakes are discovered, and the accountant must make a note on the last page (last line) of such accounting books in order to make it easy for collation and examination 8/ Adjustment in accounting books Where, due to a change in the accounting policy or a discovery of material misstatements in previous years, an accounting unit must make a retroactive amendment in accordance with the regulations of the Accounting Standard No.29 “Changes in the accounting policy, accounting estimates and mistakes”, the accountant must amend the opening balance in relevant accounts on the general accounting books and detailed accounting books 9/ Forms of accounting books 53 (1)- An enterprise shall be permitted to apply one of the five following accounting forms: - Accounting form of general journal; Accounting form of Journal-Ledger; Accounting form of registration documents; Accounting form of Journal-Documents; Accounting form of computer accounting In each form of accounting books, there are specific regulations on number, structure, form and order of accounting books, method of recording, and relations between accounting books (2)- An enterprise shall, based on the size and characteristics of its business and production activities, its management requirements, professional skills of its accountants and its technical equipment, select an appropriate accounting form and must comply with the regulations of that form of accounting books, including kinds of books and structure of such books, collation and examination, order, and method of recording accounting books II ACCOUNTING FORM Accounting form of gneral journal 1.1 Principle and basic characteristics of the accounting form of general journal Basic chracteristics of the accounting form of general journal: All economic and financial transactions must be recorded choronologically in journals, especially the general journal, based on economic content of such transactions Afterward, data of each transaction on journals shall be used to make entries in the ledger The accounting form of jeneral journal shall include the following main books: - General journal, special journal; - Ledger; - Detailed accounting books or cards 1.2 Order of the recording on accounting books which are in the form of a general journal (Table No 01) (1) Every day, based on accounting documents which have been examined and are used as a basis for recording the accounting book, an accountant shall, at first, enter up the transactions in the general journal and then, based on data recorded on the general journal, make entries in the ledger according to appropriate accounts An accounting unit which opens Detailed accounting books or cards shall, in addition to making entries in the general journal, record transactions on relevant Detailed accounting books or cards Where an accounting unit opens special journals, it shall, on the daily basis and based on documents used to make entries in the accounting book, record transactions on the relevant special journal On a periodical basis (of 3, 5, 10 days) or at the end of a month, the accounting unit shall, depending on the number of transactions carried out, consolidate data in each special journal and use consolidated data to make entries in appropriate accounts of the ledger (2) At the end of a month, a quarter or a year, the accounting unit shall add up data on the ledger and prepare the balance sheet 54 After being examined and collated, data recorded on the ledger and the detailed listing (prepared from Detailed accounting books or cards) shall be used to make out financial statements In principle, the total debits and credits on the balance sheet must equal the total debits and credits on the general journal (or the general journal and special journals after rejecting the overlapped data on special journals) of the same period Table ORDER OF MAKING ENTRIES IN THE ACCOUNTING BOOK WHICH IS IN THE ACCOUNTING FORM OF A GENERAL JOURNAL Accounting documents Special journal đặc biệt Detailed accounting books or cards GENERAL JOURNAL detailed listing LEDGER Balance sheet FINANCIAL STATEMENT Note: Record daily Record in the late month or periodically Collation and examination Accounting form of Journal-Ledger 2.1 Basic characteristics of the accounting form of Journal-Ledger Basic characteristics of the accounting form of Journal-Ledger: Economic and financial transcations are rcorded chronologically, based on economic content (accounting accounts) of such transactions, in the same sole general accounting book which is the Journal-Ledger The bases for making entries in the Journal-Ledger are accounting documents or or the 55 general listing of accounting documents of the same type The accounting form of Journal-Ledger shall include the following accounting books: - Journal-Ledger; - Detailed accounting books or cards 2.2 Order of the recording on accounting books which are in the form of a JournalLedger (Table No.2) (1) Every day, based on accounting documents or the general list of accounting documents of the same type, which have been examined and are used as a basis for entering up in the accounting book, an accountant shall, at first, determine the debit account and credit account to make entries in the Journal-Ledger Data on each documnet (or on the general listing of accounting documents of the same type) are recorded on one line of both the Journal and the Ledger The general listing of accounting documents are prepared for documents of the same type (receipts vouchers, payment vouchers, goods-dispatched notes, goods-received notes,,,,) made out many times in a day or within a period of to days After being used to make entries in the Journal-Ledger, accounting documents and the general listing of accounting documents of the same type shall be used for entering up in relevant Detailed accounting books or cards (2) At the end of a month, after entering up all accounting documents made out in the month in the Journal-Ledger and in Detailed accounting books or cards, the accountant shall add up the column of arising numbers in the Journal, and the columns of debits and credits in each account if the Ledger, and write on the line for the total number at the end of the month Based on the total numbers of previous months and the total numbers of this month, the accountant shall calculate the accumulated numbersfrom the early quarter to the end of this month Based on the balance in the early month (early quarter) and the balance arising in the month, the accountant shall calculate the balance in the late month (late quarter) in each account of the Journal-Ledger (3) Upon examination and collation of the total number in the late month (late quarter) in the Journal-Ledger, the following requirements must be ensured: Total sum in the column of amounts arising in the Journal Total debits of all accounts Total debits Total credits = of all = of all accounts accounts = Total creditsof all accounts (4) Detailed accounting books or cards must also be closed to add up debits and credits and calculate balance in the late month of each item Based on the closed data of items, the accountant prepares “the detailed listing” for each account Data on “the detailed listing” shall be collated with debits, credits and balance in the late month of each account in the Journal-Ledger 56 The closed data on the Journal-Ledger and “the detailed listing”, after being examined and collated, shall be used for making out financial statements Table No.2 ORDER OF MAKING ENTRIES IN THE ACCOUNTING BOOK WHICH IS IN THE ACCOUNTING FORM OF A JOURNAL-LEDGER Accounting documnets Cash-book General listing of accounting documents of the same type JOURNAL-LEDGER Sỉ, thỴ Detailed accounting kÕ to¸n books or chi tiÕt cards Detailed listing FINANCIAL STATEMENTS Note: Record daily Record in the late month Collation, examination Accounting form of registration documents 3.1/ Basic characteristics of the accounting form of registration documents Basic characteristics of the accounting form of registration documentrs: The direct bases for making entries in general accunting books are “registration documents” The recording on general accounting books shall include: + Record chronologically on the Register of Registration Documents + Record based on economic content on the Ledger Registration documents shall be prepared by the accountant on the basis of each accounting document or the general listing of accounting documents of the same type and economic content Registration documents are numbered continuously in each month or in the whole year (based on ordinal numbers in the register of registration documents) and accompanied with accounting documents, and approved by the chief accountant before they are used for making entries in the accounting book 57 The accounting form of registration documents shall include the following accounting books: - Registration documents; - Register of registration documents; - Ledger; - Detailed accounting books or cards 3.2/ Order of the recording on accounting books which are in the form of regitration documents (Table No.3) (1)- Every day, based on accounting documents or the general listing of accounting documents of the same type which have been examined and are used for making entries in accounting books, the accountant shall prepare registration documents The accountant shall, based on registration documents, enter up in the register of registration documents and then make entries in the ledger Having been used as a basis for preparing registration documents, accounting documents shall be used for entering up in relevant Detailed accounting books or cards (2)- In the late month, the accountant must close accounting books and work out the total sum of economic or financial transactions in the month on the register of registration documents, and calculate the total debits and credits and the balance in each account on the ledger The acountant then shall base on the ledger to prepare the balance sheet (3)- Having been collated and considered to be proper, data recorded on the ledger and the detailed listing (made out from Detailed accounting books or cards) shall be used for preparation of financial statements The collation and examination must ensure that the total debits and credits in all accounts of the balance sheet must be the same, and equal the total sum on the register of registration documents The total debits and credits in accounts on the balance sheet must be the same, and the balance in each account on the balance sheet must be equal to the balance in each corresponding account on the detailed listing 58 Table No.3 ORDER OF THE RECORDING ON ACCOUNTING BOOKS WHICH ARE IN THE ACCOUNTING FORM OF REGISTRATION DOCUMENTS Accounting documents Cash-book Register of registration documents General listing of accounting documents of the same type Sổ, thẻ Detailed kế toán accounting books chi tiÕtor cards REGISTRATION DOCUMENTS Detailed listing Ledger Balance sheet FINANCIAL STATEMENTS Note: Record daily Record in the late month Collation, examination Accounting form of Journal-Documents 4.1/ Basic characteristics of the accounting form of Journal-Documents) - Gather and systematize economic transactions arising in the credit side of accounts, and analyse such economic transactions in the corresponding debit accounts - Closely combine the recording of economic transactions carried out chronologically and the systematization of such transactions based on their economic content (based on accounts) - Widely combine the genal accounting and detailed accounting on the same book of account and in the same course of recording - Use books on which correspondinmg accounts, economic or financial management items are already printed, and prepare financial statements The accounting form of Journal-Documents shall include the following books of account: - Documentary journal; - List; - Ledger; - Detailed accounting books or cards 59 4.2/ Order of the recording on accounting books which are in the form of Journal-Document (Table No.4) (1) Every day, based on accounting documents which have been examined, the accountant shall take data from those accounting documents and directly record them on the Journal-Document or on the relevant list or detailed book With respect to production or business costs which are incurred many times or which are alloccated, original documents shall at first be gathered and classified in tables of allocation, afterward the accountant shall take resulting data from tables of allocation and record them on the relevant lists and Journal-Documnet With respect to Journals-Documents on which the recording is based on the total data on the lists or detailed books, the accountant shall, in the late month, transfer such data to the Journals-Documents (2) In the late month, the accountant shall close books, add up data on JournalsDocuments, examine and collate data on Journals-Documents with those on detailed accounting books or cards, and on the relavant detailed list, and shall take the total data from Journals-Documents to directly enter them up in the ledager With respect to accounting documents related to detailed accounting books or cards, data on such documents shall be directly recorded on relevant books or cards In the late month, the accountant shall add up data on detailed accounting books or cards and, based on such detailed accounting books or cards, prepare the detailed listings for each account, which are used to collate with the ledger The total data in the ledger and a number of detailed items in the Journal-Document, in the list and the detailed listings shall be used to make out financial statements Table No.4 ORDER OF THE RECORDING ON ACCOUNTING BOOKS WHICH ARE IN THE ACCOUNTING FORM OF JOURNAL-DOCUMENT Accounting documents and tables of allocation List JOURNALDOCUMENT NHẬT KÝ Ledger FINANCIAL STATEMENTS 60 Detailed accounting books or cards Detailed listing Note; Record daily Rcord in the late month Collation, examination 5- Form of accounting on computer 5.1- Basic characteristics of the computer accounting form Basic characteristics of the computer accounting form are that the accounting work is done based on an accounting software on computer The accounting software is designed in the form of one of the four accounting forms, or in the form of a combination of the above accounting forms The accounting sofware shall not display fully the process of recording on accounting books, but have to be capable of printing out full accounting books and financial statements as regulated Kinds of book of the computer accounting form: An accounting software designed in whichever accounting form shall have that accounting form’s books which are not completely like accounting books in which entries are made by hand 5.2- Order of the recording of accounting books wich are in the computer accounting form (Table No.5) (1) Every day, the accountant shall, based on accounting documents or the general listing of accounting documents of the same type, which have been examined and are used as a basis for making entries in accounting books, determine debit accounts and credit accounts to input data in the computer, based on tables beforehand designed in the accounting software According to the process of the accounting software, information shall automatically be input in the general accounting books (the ledger or the Journal-Ledger ) and in relevant detailed accounting books or cards (2) In the late month (or at any necessary time), the accountant shall perform the task of closing books (adding up data in books) and preparing financial statements The collation of general data and detailed data shall be carried out automatically and ensured to be always accurate and truthful in accordance with information input in the period The accountant can examine and collate data on accounting books with those on financial statements after such accounting books and financial statements have been printed out The accountant shall manipulate to print out financial statements as regulated At the end of a month or a year, general accounting books and detailed accounting books shall be printed out and bound in books, and the accountant shall carry out legal procedures in accordance with the regulations on accounting books in which entries are made by hand 61 Table No.5 ORDER OF THE RECORDING ON ACCOUNTING BOOKS WHICH ARE IN THE COMPUTER ACCOUNTING FORM ACCOUNTING BOOKS ACCOUNTING DOCUMENTS - General accounting books - Detailed accounting books ACCOUNTING SOFTWARE BẢNG TỔNG HỢP CHỨNG TỪ KẾ TOÁN CÙNG LOẠI - Financial statenments - Administration accounting report COMPUTER Note: Input daily data Print out books and reports at the end of month, year Collation, examination III- LIST OF ACCOUNTING BOOKS APPLICABLE TO ENTERPRISES No Name of books Serial number Accounting form General Journaljournal Ledger Registration documents JournalDocument 01 Journal-Ledger S01-DN - x - - 02 Registration documents S02a-DN - - X - 03 Register of registration documents S02b-DN - - X - 04 Ledger (used for the form of registration documents) S02c1-DN - - x - S02c2-DN 62 X No Name of books Serial number Accounting form General Journaljournal Ledger Registration documents JournalDocument 05 General journal S03a-DN X - - - 06 Cash receipt journal S03a1-DN X - - - 07 Cash payment journal S03a2-DN X - - - 08 Purchase journal S03a3-DN X - - - 09 Sales journal S03a4-DN X - - - 10 Ledger (used for the form of general journal) S03b-DN X - - - 11 Journal-Document, Kinds of JournalDocument, List S04-DN - - - x Including: - Journal-Document No.1 to No.10 S04a-DN - - - x S04b-DN - - - x - List No.1 to No.11 12 Ledger (used for the form of JournalDocument) S05-DN - - - x 13 Balance sheet S06-DN X - x - 14 Cash book S07-DN X x x - 15 Detailed accounting book of cash S07a-DN X x x - 16 Deposit book S08-DN X x x x 17 Detailed books of materials, instruments, products or goods S10-DN X x x x 18 Detailed listing of materials, instruments, products or goods S11-DN X x x x 19 Stock card (Stock book) S12-DN X x x x 20 Book of fixed assets S21-DN X x x x 21 Book for monitoring fixed assets and tools and instruments at the place where they are used S22-DN X x x x 22 Card of fixed assets S23-DN X x x x 23 Detailed book of payments to the purchaser (the seller) S31-DN X x x x 24 Detailed book of payments to the purchaser (the seller) in foreign currency S32-DN X x x x 25 Book for monitoring payments in foreign currency S33-DN X x x x 26 Detailed book of loans S34-DN X x x x 27 Detailed book of sales S35-DN X x x x 28 Book of production and business costs S36-DN X x x x 29 Card of production costs of products or S37-DN X x x x 63 No Name of books Serial number Accounting form General Journaljournal Ledger Registration documents JournalDocument services 30 Detailed book of accounts S38-DN X x x x 31 Detailed accounting book for monitoring inverstments in associated companies S41-DN X x x x 32 Book for monitoring differences allocated upon purchase of investments in associated companies S42-DN X x x x 33 Detailed book of issued shares S43-DN X x x x 34 Detaiiled book of fund shares S44-DN X x x x 35 Detailed book of securities investments S45-DN X x x x 36 Detailed book for monitoring source of trading capital S51-DN X x x x 37 Books of construction expenses S52-DN X x x x 38 Book for monitoring VAT S61-DN X x x x 39 Detailed of of VAT refunded S62-DN X x x x 40 Detailed book of VAT exempted or reduced S63-DN X x x x Other detailed book according to the enterprise’s management requirements The order and method of making entries in accounting books, and the relation between accounting books in each accounting form are stipulated in the above Section II “Accounting Forms” * * * 64 ... Balance sheet Company:……………… Address:………………………… Form No B 01 – DN (issued together with Decision No .15/2006/QD-BTC dated 20 March 2006 of the Minister of Finance) BALANCE SHEET as at the date (1)... Income statement Company: Address:………… Form No B 02 – DN (issued together with Decision No .15/2006/QD-BTC dated 20 March 2006 of the Minister of Finance) INCOME STATEMENT Year ……… Code Explanation... Cash flow statement Form No B 03 – DN Company: Address:………… (issued together with Decision No .15/2006/QD-BTC dated 20 March of the Moinister of Finance ) CASH FLOW STATEMENT (under the direct