1. 1. Rules for accounting
1.1. a. The account records revenues, expenses, and the balance of the enterprise’s fund.
1.1.1. b. Cash deposits made by other enterprises and individuals are managed and recorded similarly to the enterprise’s monetary assets.
1.2. c. Receipt slips, payment slips with signatures of payees and payers, competent persons are required for receiving or dispatching cash fund.
1.3. d. The accountant must maintain a Cash daybook recording all financial transactions and calculate the fund balance at all times.
1.4. đ. The cashier is responsible for managing, receiving, and dispatching the cash fund and must verify the actual cash balance daily
1.5. e. Transactions in foreign currencies are converted into VND according to specific rules.
1.6. g. Monetary gold is used for value storage and is managed according to the law.
1.7. h. When preparing financial statements, an enterprise must re-evaluate the balance of foreign currencies and monetary gold.
1.7.1. Adjust the balance of foreign currencies using the selling rate of their regular bank
1.7.2. Monetary gold is adjusted based on domestic market buying prices at the time of statement preparation.
2. 3. Method of accounting for several major transactions
2.1. 3.1. When selling products, goods, or services for immediate cash, the following accounts are recorded.
2.1.1. In case it fails to separate the taxes payable, the taxes payable must be included in the revenues. Tax liabilities and the decrease in revenues shall be recorded
2.1.1.1. Cr 333 – Taxes and other payables to the State.
2.1.1.2. Dr 511 – Revenues.
2.1.2. For items subject to taxes like VAT, special excise duty, import duty, environmental protection tax, revenues are recorded at tax-exclusive selling prices.
2.1.2.1. Dr 111 – Cash (total payment).
2.1.2.2. Cr 511 – Revenues (tax-exclusive prices).
2.1.2.3. Cr 333 – Taxes and other payables to the State.
2.2. 3.2 When receiving payments of allowance or subsidy in cash from government budget, the following accounts shall be recorded
2.2.1. Dr 111 - Cash
2.2.2. Cr 333 – Taxes and other payables to the State (3339).
2.3. 3.3. Financial income or other incomes in cash are recorded in specific accounts
2.3.1. Dr 111 – Cash (total payment)
2.3.2. Cr 515 – Financial income (prices excluding VAT)
2.3.3. Cr 711 – Other incomes (prices excluding VAT)
2.3.4. Cr 3331 – VAT payable (33311).
2.4. 3.4. Cash withdrawals from banks or loans are recorded in the cash account
2.4.1. Dr 111 – Cash (1111, 1112)
2.4.2. Cr 112 – Cash in bank (1121, 1122)
2.4.3. Cr 341 - Financial loan and financial lease liabilities (3411).
2.5. 3.5. Recovering receivables or granting loans in cash are recorded in specific accounts
2.5.1. Dr 111 – Cash (1111, 1112)
2.5.2. Cr 128, 131, 136, 138, 141, 244, 344.
2.6. 3.6. Selling investments and collecting cash are recorded in specific accounts.
2.6.1. Dr 111 – Cash (1111, 1112)
2.6.2. Dr 635 - Financial expenses
2.6.3. Cr 121 – Trading securities (cost price)
2.6.4. Cr 221, 222, 228 (cost price)
2.6.5. Cr 515 – Financial income.
2.7. 3.7. Receiving stakes in cash from owners are recorded in the owner’s invested equity account
2.7.1. Dr 111 - Cash
2.7.2. Cr 411 – Owner's invested equity.
2.8. 3.8. Receiving money from contracting parties of Business Cooperation Contract (BCC) is recorded in other payables account.
2.8.1. Dr 111 - Cash
2.8.2. Cr 338 - Other payables.
2.9. 3.9. When dispatching cash fund then crediting to bank’s accounts or depositing, the following accounts shall be recorded
2.9.1. Dr 112 – Cash in bank
2.9.2. Dr 244 – Pledge, mortgage or deposit Cr 111 – Cash.
2.10. 3.10. When buying securities, granting loans, or investing in subsidiary or joint-venture companies
2.10.1. Dr 121, 128, 221, 222, 228
2.10.2. Cr 111 – Cash.
2.11. 3.11. When buying inventory or fixed assets, or spending on capital investment, VAT is considered. If VAT is deduction, it’s recorded separately. If not, the buying price includes VAT.
2.11.1. Dr 151, 152, 153, 156, 157, 211, 213, 241
2.11.2. Dr 133 – Deductible VAT (1331)
2.11.3. Cr 111 – Cash.
2.12. 3.12. Similar rules apply when buying inventory using the periodically declared method.
2.12.1. Dr 611 – Good purchase (6111, 6112)
2.12.2. Dr 133 – Deductible VAT (1331)
2.12.3. Cr 111 – Cash
2.13. 3.13. when buying raw materials immediately used in business
2.13.1. Dr 621, 623, 627, 641, 642, etc.
2.13.2. Dr 133 – Deductible VAT (1331)
2.13.3. Cr 111 – Cash.
2.14. 3.14. When paying amounts payable, the accounts Dr 331, 333, 334, 335, 336, 338, 341 and Cr 111 are recorded.
2.14.1. Dr 331, 333, 334, 335, 336, 338, 341
2.14.2. Cr 111 – Cash.
2.15. 3.15. When dispatching cash for financial activities or other activities.
2.15.1. Dr 635, 811, etc.
2.15.2. Dr 133 – Deductible VAT (if any)
2.15.3. Cr 111 – Cash.
2.16. 3.16. If a cash deficit is detected without reasons.
2.16.1. Dr 138 – Other receivables (1381)
2.16.2. Cr 111 – Cash.
2.17. 3.17. If a cash excess is detected
2.17.1. Dr 111 - Cash
2.17.2. Cr 338 - Other payables (3381).
2.18. 3.18. Accounting contract of resale of Government bonds
2.18.1. in accordance with Account 171
2.19. 3.19. Foreign currency related-transactions in cash.
2.19.1. a. When buying goods or services in foreign currencies, exchange rate losses or profits are recorded in specific accounts.
2.19.1.1. Dr 151,152,153,156,157, 211,2 13, 241, 623, 627, 641, 642, 133, etc.
2.19.1.2. Dr 635 - Financial expenses
2.19.1.3. Cr 111 (1112)
2.19.1.4. Cr 515 – Financial income
2.19.2. b. When paying debts in foreign currencies, exchange rate losses or profits are recorded in specific accounts.
2.19.2.1. Dr 331, 335, 336, 338, 341, etc.
2.19.2.2. Dr 635 - Financial expenses
2.19.2.3. Cr 111 (1112)
2.19.2.4. Dr 331 – Trade payables
2.19.3. c. When generating revenues or other incomes in foreign currencies, they are recorded in specific accounts.
2.19.3.1. Dr 111 (1112)
2.19.3.2. Cr 511, 515, 711, etc.
2.19.4. d. When collecting debts in foreign currencies, exchange rate losses or profits are recorded in specific accounts
2.19.4.1. Dr - Cr 111 (1112)
2.19.4.2. Dr 635 - Financial expenses
2.19.4.3. Cr 131, 136, 138, etc.
2.20. 3.20. The actual exchange rates are used to re-evaluate foreign currencies at the time financial statements are prepared. Profits or losses on exchange rates are recorded in specific accounts
2.20.1. Dr 111 (1112)
2.20.2. Dr - Cr 413 - Exchange differences (4131).
2.21. 3.21. Re-evaluation of monetary gold is recorded in specific accounts. If the re-evaluated value generates profits, it’s recorded as financial income. If it generates losses, it’s recorded as financial expenses
2.21.1. Dr - Cr 1113 – Monetary gold
2.21.2. Cr 515 – Financial income.
2.21.3. Dr 635 - Financial expenses
3. 2. Structure and contents of account 111 - Cash.
3.1. Debit
3.1.1. Received cash, foreign currency or monetary gold.
3.1.2. Cash, foreign currency or monetary gold in excess detected under verification.
3.1.3. Exchange differences due to re-evaluation of foreign currency or gold.
3.2. Credit
3.2.1. Dispatched cash, foreign currency or monetary gold.
3.2.2. Cash, foreign currency or monetary gold in deficit detected under verification.
3.2.3. Exchange differences due to re-evaluation of foreign currency or gold.
3.3. Debit balance
3.3.1. Inventoried cash, foreign currency or monetary gold at the reporting time.
3.4. Account 111
3.4.1. Cash.
3.4.2. Account 1111 – VND.
3.4.3. Account 1112 – Foreign currencies.
3.4.4. Account 1113 – Monetary gold.