NATIONAL ECONOMICS UNIVERSITY
ADVANCED EDUCATIONAL PROGRAMS
INTERSHIP REPORT
Major: Auditing
HUNG YEN VIET DUC PLASTIC JOINT STOCK COMPANY
NGUYEN THI NGOC HOA
HA NOI, 2023
NATIONAL ECONOMICS UNIVERSITY
ADVANCED EDUCATIONAL PROGRAMS
INTERSHIP REPORT
HUNG YEN VIET DUC PLASTIC JOINT STOCK COMPANY
Student
: Nguyen Thi Ngoc Hoa
Major
: Auditing
Class
: Auditing 62A
Student’s ID : 11201536
Supervisor
: Assoc. Prof. Tran Trung Tuan
HA NOI, 2023
STATUTORY DECLARATION
I hereby declare that this is my accounting internship report. The statistics and
study findings were generated by the Hung Yen Viet Duc Plastic Joint Stock
Company’s Accounting Department and were not plagiarized from any other sources.
Moreover, in the report, there are several references that have been cited and clearly
annotated. I would like to take full responsibility to the department and school for
this commitment.
Hanoi, August 2023
i
TABLE OF CONTENTS
STATUTORY DECLARATION ..............................................................................i
TABLE OF CONTENTS ..........................................................................................ii
LIST OF ABBREVIATIONS..................................................................................iv
LIST OF FIGURES .................................................................................................. v
LIST OF TABLES ...................................................................................................vi
INTRODUCTION ..................................................................................................... 1
CHAPTER 1: OVERVIEW OF HUNG YEN VIET DUC PLASTIC JOINT
STOCK COMPANY ................................................................................................. 2
1.1. History of the Establishment and Development of Hung Yen Viet Duc Plastic
Joint Stock Company .............................................................................................. 3
1.1.1. Company's overall information ................................................................ 3
1.1.2. Establishment and Development .............................................................. 3
1.1.3. Scope of business ..................................................................................... 5
1.2. Characteristics of the Business Operation of Hung Yen Viet Duc Plastic JSC. .. 5
1.2.1. Functions and Responsibilities ................................................................. 5
1.2.2. Features of quality business operation ..................................................... 6
1.2.3. Features of operating production .............................................................. 7
1.4. Financial Performance of Hung Yen Viet Duc Plastic Joint Stock
Company ............................................................................................................... 15
CHAPTER 2: ACCOUNTING ORGANIZATION AND SYSTEM APPLIED
IN HUNG YEN VIET DUC PLASTIC JOINT STOCK COMPANY ............... 19
2.1 Operation of Accounting System in Hung Yen Viet Duc Plastic Joint Stock
Company ............................................................................................................... 19
2.1.1. Organizational structure of accounting department ............................... 19
2.1.2. Functions and responsibilities of each position in accounting
department ........................................................................................................ 20
2.2. Application of Accounting Policy and Accounting Standard in Hung Yen Viet
Duc Plastic JSC ..................................................................................................... 22
ii
2.2.1. General Accounting policies .................................................................. 22
2.2.2. Features of Accounting Documents .................................................... 25
2.2.3. Features of Chart of Accounts ............................................................ 29
2.2.4. Features of Accounting Books ............................................................. 31
2.2.5. Features of Accounting Reports .......................................................... 34
2.3 Features of some key accounting cycles in Hung Yen Viet Duc Plastic Joint
Stock Company ..................................................................................................... 36
2.3.1. Accounting for raw materials ................................................................. 36
2.3.2. Accounting for cash................................................................................ 48
2.3.3. Accounting for payroll ........................................................................... 53
CHAPTER
3:
EVALUATIONS
AND
RECOMMENDATIONS
ON
ACCOUNTING SYSTEM IN HUNG YEN VIET DUC PLASTIC JOINT
STOCK COMPANY ............................................................................................... 53
3.1 Evaluation of accounting organization in Hung Yen Viet Duc Plastic Joint
Stock Company ..................................................................................................... 61
3.1.1. Achievements ......................................................................................... 61
3.1.2. Limitations .............................................................................................. 62
3.1.3. Recommendations .................................................................................. 62
3.2 Evaluation of accounting system in Hung Yen Viet Duc Plastic Joint Stock
Company ............................................................................................................... 63
3.2.1. Achievements ......................................................................................... 63
3.2.2. Limitations .............................................................................................. 65
3.2.3. Recommendations .................................................................................. 66
CONCLUSION ........................................................................................................ 68
REFERENCES ........................................................................................................ 69
iii
LIST OF ABBREVIATIONS
Abbreviation
Explanation
QA
Quality Assurance
QC
Quality Control
POMs
Points of measures
PR
Public relations
HR
Human Resources
VAT
Value added tax
VND
Vietnamese Dong
iv
LIST OF FIGURES
Figure 1.1: Quality management system of Hung Yen Viet Duc Plastic Company ... 7
Figure 1.2: Sales process with customers ................................................................... 9
Figure 1.3: Hung Yen Viet Duc Plastic JSC ‘s Organizational structure. ................ 11
Figure 1.4: HUNG YEN VIET DUC., JSC's Total Asset, Total Liability and Total
Equity (2020-2022) ................................................................................................... 16
Figure 2.1: Accounting department structure ........................................................... 19
Figure 2.2.: General process of transferring accounting documents ........................ 26
Figure 2.3: The process of recording accounting books in the General Journal...... 32
Figure 2.4.: The process of recording in the form of general ledger using MISA
accounting software .................................................................................................. 33
Figure 2.5: Rotation flows of accounting documents for inflow of raw materials ... 39
Figure 2.6: Rotation flows of accounting documents for outflow of raw materials . 40
Figure 2.7: Parallel card method for material management ...................................... 41
Figure 2.8. Entries related to Cash ............................................................................ 51
Figure 2.9: Rotation flows of accounting documents for cash receipt ..................... 52
Figure 2.10: Rotation flows of accounting documents for cash payment................. 53
Figure 2.11: Bookkeeping process for cash .............................................................. 53
Figure 2.12: General rotation flows of documents in payroll cycle ......................... 59
v
LIST OF TABLES
Table 1.1: Balance sheet ........................................................................................... 15
Table 1.2: Income statement ..................................................................................... 17
Table 2.1.: List of typical accounting documents used at HYVDP., JSC................. 26
Table 2.2.: List of accounts used by HYVDP., JSC ................................................. 25
Table 2.3: List of account name ................................................................................ 30
Table 2.4.: Classification of raw materials in Hung Yen Viet Duc Plastic Joint Stock
Company ................................................................................................................... 37
Table 2.5: Request for purchase of materials ............................................................ 40
Table 2.6: VAT Invoice ............................................................................................ 43
Table 2.7: Minutes inspection of materials ............................................................... 44
Table 2.8: Goods received note ................................................................................. 45
Table 2.9: General journal......................................................................................... 46
Table 2.10: General ledger of Account 152 .............................................................. 46
Table 2.11: Percentage of payroll deductions from 07/01/2021 to 09/30/2021 ....... 54
Table 2.12: Percentage of payroll deductions from 10/01/2021 to 06/30/2022 ....... 54
Table 2.13: Percentage of payroll deductions from 07/01/2022 to 09/30/2022 ....... 55
Table 2.14: Percentage of payroll deductions since 10/01/2022 .............................. 55
vi
INTRODUCTION
The inexorable wave of global economic integration and globalization is
regarded as an inevitable trajectory. Confronted with the opportunities and challenges
presented by this fusion, all enterprises are compelled not only to enhance their
production and business processes but also to adeptly harness their potential to attain
peak business efficiency. Enterprises aspiring to endure and prosper must chart their
individual course by accentuating their business strengths and deftly exploiting them
to craft competitive advantages. The twin aspirations of revenue maximization and
profit optimization serve as the compass points guiding enterprises, particularly those
of a commercial nature.
The central thrust of commercial enterprises revolves around sales—a
pivotal function aimed at profit generation. Consequently, enterprises must actively
propel the consumption of their goods. Within the commercial context, the act of
goods consumption assumes a pivotal role, acting as the arbiter of success or failure
in business undertakings. It is only through the meticulous execution of the
consumption process that the business can genuinely fulfill its role, serving as a
conduit between production and consumption.
In tandem with goods consumption, the strategic significance of sales
accounting occupies a prominent position, intricately woven into the fabric of
business enhancement. Well-structured accounting practices, especially concerning
sales, assume the mantle of being a wellspring of swift and precise managerial
insights. These insights illuminate the path, enabling well-judged, timely, and apt
decisions that steer the enterprise toward the optimal trajectory. Additionally, the art
of manufacturing goods within an enterprise is intertwined with expenditures related
to raw materials, machinery, and human resources. Effective implementation of cost
control measures significantly bolsters the operational landscape of the company.
1
Stemming ifrom itheoretical iproblems iand ipractical irequirements, iI ichose
ithe itopic: i"CHARACTERISTICS iOF iACCOUNTING iSYSTEM iAND
iACCOUNTING iCYCLES iAT iHUNG iYEN iVIET iDUC iPLASTIC iJOINT
iSTOCK iCOMPANY" ifor ithe ipurpose: iApplying iTheoretical istudies ihave ibeen
ilearned ito iunderstand ithe ireality iof iaccounting iwork iin ia icompany, ifind iout ithe
iadvantages iand idisadvantages iin imanagement iand iaccounting, ifrom iwhich ito idraw
ilearning iexperiences iand ipropose isome iideas iwith ithe idesire ito ifurther iimprove ithe
iorganization iof iaccounting iwork iand ithe iaccounting isystem iat iHung iYen iViet iDuc
iPlastic iJoint iStock iCompany. iTherefore, iwe ican ihave ia ideeper iunderstanding iof ithe
itheoretical istudy iof ithe iprinciples iof iVietnamese iAccounting iStandards iand ithe
iVietnamese icorporate iaccounting isystem iused iby ithe icompany.
1. iResearch ipurpose: iTo iunderstand iabout ithe iactual iaccounting
iorganization iand iaccounting isystem iat iHung iYen iViet iDuc iPlastic iJoint iStock
iCompany., ithen ianalyze ithe ioutstanding iproblems, idevelop isolutions ito icomplete ithe
iproblem. igood iancestor iaccountant iat ithe icompany. i
2. iResearch iscope: iManaging ithe ioperating iapparatus, iaccounting
iactivities iand iaccounting isystem iapplied iat iHung iYen iViet iDuc iPlastic iJoint iStock
iCompany.
3. iResearch imethod:
● Accounting imethods.
● Performance iand iposition iratio icomparison imethod.
● Method iof iinterview iand iinvestigation, icombining iobservation,
ianalysis, iand iactual irecording ieconomic itransactions
Beside iIntroduction iand iConclusion, ithis ireport iincludes i3 ichapters:
Chapter i1: iOverview iof iHung iYen iViet iDuc iPlastic iJoint iStock
iCompany i
Chapter i2: iCharacteristics iof iaccounting iorganization iand iaccounting
isystem iat iHung iYen iViet iDuc iPlastic iJoint iStock iCompany i
Chapter i3: iAssessment iof iaccounting iorganization iand iaccounting
isystem iat iHung iYen iViet iDuc iPlastic iJoint iStock iCompany i
2
1CHAPTER 1: OVERVIEW OF HUNG YEN VIET
DUC PLASTIC JOINT STOCK COMPANY
1.1. History of the Establishment and Development of Hung Yen Viet Duc Plastic
Joint Stock Company
1.1.1. Company's overall information
 Company name in Vietnamese: CÔNG TY CỔ PHẦN NHỰA VIỆT ĐỨC HƯNG YÊN
 Company name in foreign language: HUNG YEN VIET DUC PLASTIC
JOINT STOCK COMPANY
 Abbreviated Company Name: HUNG YEN VIET DUC PLASTIC.,JSC
 Charter capital: 30.000.000.000 VND (Thirty billion Vietnamese dong)
 Company tax code: 0900696982
 Legal representative: Mr. Nguyen Minh Tan
 Established date: July 12, 2011
 Company address: 52 Nguyen Van Linh Street, An Tao Ward, Hung Yen City,
Hung Yen Province, Vietnam.
 Employees: 200 persons
1.1.2. Establishment and Development
July 12, 2011: Mr. Nguyen Minh Tan as a legal representative, the company
as established on July 12, 2011, under the business license No. 0900696982 issued
by the Tax Department of Hung Yen Provincial.
August 10, 2011: The company officially went into operation with the main
business of manufacturing PE bags and PE films. The predecessor of the company
was initially a small factory with rudimentary machinery
3
May 21, 2013: Hung Yen Viet Duc Plastic Company boldly invested in a
larger factory with an area of about 3,500 square meters. Through the cooperation
relationship with Japanese enterprises since 2010, the company has built a production
process according to Japanese standards with a team of staff who have been trained
and trained in Japan.. After that, the company started organizing production lines to
develop and catch up with the production progress of some medium-sized another
enterprises in the same industry in the country.
January 4, 2017: Inheriting the Japanese standard production process
platform, Hung Yen Viet Duc Plastic Company continues to expand the production
scale of selected key products such as PE bags and stretch films. Up to now, the
company has developed up to 5 factories located in Hung Yen, Hai Duong and Bac
Ninh, with an average total output of 6000 tons/month, of which 75% are
supermarket bags and 24% products. garbage bag products, stretch film products
1%.
January 13, 2022: Hung Yen Viet DucPlastics Company officially obtained
the ISO 9001: 2015 certificate, replacing the ISO 9001: 2008 certificate applied in
the past time. This is a strong affirmation of company's commitment to international
standard quality management.
Through becoming a supplier for large Japanese corporations and enterprises,
HPC's products are present in many stores and large supermarket systems such as
Family Mart, Super Mart, Wallmart, Aeon...
Besides, with the philosophy of life proposed by the company's leadership, the
company signed an investment cooperation contract with the Konnie39 supermarket
system of Japan, with the desire to bring Japanese quality consumer products. The
version with the best price for Vietnamese people.
In its business development strategy with a vision to 2025, with the orientation
to maintain 4 competitive competencies: "Quality - Price - Progress - Dedication",
the company aims to become one of the leading suppliers in the world. leading PE
4
packaging products in Southeast Asia, we are committed to giving customers the best
products at competitive prices.
1.1.3. Scope of business
Produce PE plastic bag, stretch film, and plastic gloves on request.
 PE plastic bag: shopping plastic bags, garbage plastic bags, fashion plastic
bags, Kikakutai bag, Biodegradable material plastic bag, PE bag on roll for
market shopping
 Stretch film: PE Transparent Stretch Film, LLDPE plastic stretch film
 Gloves: Cleaning plastic gloves
1.2. Characteristics of the Business Operation of Hung Yen Viet Duc Plastic JSC.
1.2.1. Functions and Responsibilities
1.2.1.1. Functions
 Organize the purchase, sale, production, distribution, import and export of
alloy steel casting products, heat resistant alloys, impact resistant alloys at the
request of customers.
 Continuously improve production lines, modern equipment, training and
improving the quality of skills of employees in the company.
 Continuously improve the quality of life of employees in both material,
cultural and spiritual terms, contributing to the common development of the
community.
 Create relationships with customers through direct business, create
relationships with reputable partners to increase the company's work
efficiency.
1.2.1.2. Responsibilities
 Production and business activities: the company focuses on expanding
production, enhancing productivity, quality, and efficiency. Investments in
5
technology and high-tech avenues are prioritized to scale up production.
Concurrently, the company consistently researches the market to proactively
address growing demands.
 Social relationships: the company seeks to broaden connections with other
entities, reinforcing cooperation efforts, and playing an active role in
enhancing societal production and progress.
 Obligations to the State: grounded in efficient production and business
practices, the company consistently meets its commitments to the state and
local community. This includes complete tax payment and strict adherence to
established laws and regulations.
 Employee life: involing hiring workers to match growing production
demands, adhering closely to the Labor Code. The company also ensures the
overall well-being of its employees, both physically and mentally.
 Environmental protection, security, and order: the company emphasizes
maintaining a clean environment and a safe atmosphere, especially within
production workshops. Additionally, it fulfills its national defense
responsibilities and abides by local security and safety regulations.
1.2.2. Features of quality business operation
Hung Yen Viet Duc Plastic JSC is specialized in producing PE plastic bags,
stretch film and plastic gloves as per request of domestic customers such as: Konni
39, Family Mart, Aeon Mall and exports their products to some fastidious market like
Japan, Korea, …
Product quality:
- Quality meets the ISO 9001:2015 International Standard and JIS 1702
Japanese Industrial
- Always listen to customer feedback to improve and diversify products.
6
Delivery time: With a professional transportation system and 24/24 staff, the
company are committed to best meet all delivery needs for customers.
1.2.3. Features of operating production
As mentioned above, the company produces PE plastic bag, stretch film, and
plastic gloves according to the requirements of the customer order. From that point
of view, the company's production process for all kinds of products is characterized
by continuous, multi-stage production. Each order has a separate design drawing,
which is agreed upon between the customer and the company, and the production
process will follow that drawing. However, the general product manufacturing
process can be described as follows:
Step I: Preparing PE pellets
Step II: Plastic blowing &
creating film rolls
Step III: Printing
Step IV: Cutting from film rolls
Step V: Processing
Step VI: Quality Check
Step VII: Metal Detection
Figure 1.1: Quality management system of Hung Yen Viet Duc Plastic
Company
Note:
Step I: Preparing PE pellets
 Choose the appropriate type of polyethylene resin (LDPE, HDPE, etc.) based
on bag characteristics.
7
 The resin is typically in the form of small pellets or granules.
Step II: Plastic blowing & creating film rolls
 Raw plastic pellets of different densities (such as, HDPE, LDPE, or LLDPE)
are again super heated and pressurized to form a molten liquid, which air is
then pumped into from below.
 This process turns the molten plastic into a balloon-like plastic film that passes
through a tall vertical corridor.
 As this plastic bubble expands upwards it cools, coming into contact with
many rollers that stretch and contort the plastic into thin film sheets.
Step III: Printing
 Using various printing machines, including 6-color sheet machines and 8color tube machines, printing is done from one color up to a maximum of eight
colors.
 Once for each roll (approximately 2,000m to 3,000m), a sample is taken for
color confirmation, and the samples are stored on-site.
Step IV: Cutting from film rolls
 Plastic film rolls are further transferred to Hemington cutter, then be cut to
desired sizes, depending on the commercial intent for the bag.
 Plastic bag cutting machines work by using heat to create the bottom of the
bag and cut the top of the bag with a stick knife.
Step V: Processing
 Apply secondary modifications to polybags, such as attaching handles,
threading strings, adding eyelets and plastic hooks, folding, and inserting
backing boards.
Step VI: Quality Check
8
 After the processing is completed, dedicated inspectors for polybags
meticulously examine the finished products to ensure that the processing has
been carried out without any defects. They take full responsibility for this
thorough quality check, resulting in the completion of the final products.
Step VII: Metal Detection
 This is the process of inspecting packed products in boxes for the presence of
foreign objects before transportation. During this stage, polybags are
essentially undergoing a body check before reaching the customer's
destination.
1.2.4. Features of sales process
Look for potential
customers mainly in
foreign markets.
Deliver goods to the
customers
Obtain the payment
Approach customers
and introduce the
company's goods
Prepare a sufficient
amount of the
requested goods
Offer customer
relationship
management and
follow up
Provide a pricing
quote
Accept the sales
agreement
Figure 1.2: Sales process with customers
Step 1: Create the most precise and exact sales plan possible to identify the
target market, the locations of the customers, and the appropriate time to contact
them. The sales department will look for a list of customers to contact to locate new
customers and have legal requirements after receiving the plan.
9
Step 2: The business must make sure it has a sufficient number of skilled
salespeople on staff and has carefully created a precise strategy before meeting with
consumers. Prior to the meeting, all staff is obliged to conduct consumer research.
The staff is responsible for introducing key products from fabric quality, production
process, and receiving customer requests.
Step 3: For customers, the Hung Yen Viet Duc PlasticCompany will create a
pricing list of its items. To encourage additional conversation, the soft copy may be
delivered to the client in advance of the meeting.
Step 4: If the parties agree to the terms of the contract, Hung Yen Viet Duc
PlasticCompany will sign the sale contract and other legal documents on behalf of
the client once the meeting is over.
Step 5: Following the conclusion of the contract, the company will prepare all
goods in terms of quantity, design, and quality to be sent to customers.
Step 6: Check the quantity and ensure the quality of the goods when sending
to the carrier according to the method required in the contract.
Step 7: Get payments from customers via bank transfer to issue invoices or
comply with the payment time agreement required in the contract.
Step 8: Maintain contact with customers and offer them relationship
management services. Even after the contract has finished, the company will respond
to inquiries and offer assistance to customers.
1.3. Management of Hung Yen Viet Duc Plastic JSC.
1.3.1. Organizational structure
Hung Yen Viet Duc Plastic JSC has a total of 200 employees. There are 3
levels of management in the organization structure. The Board of Directors is the top
management. The Chef Ecutive Officer, who was selected by the General Directors,
takes responsibility for the overall operating activities of the company. The two Vice
General Director are in charge of Product Quality Control . The Vice General Director
10
1 takes responsibility for ISO. The Vice General Director 1 takes responsibility for
KCS (Knowledge Centered Support).
Figure 1.3: Hung Yen Viet Duc Plastic JSC ‘s Organizational structure.
1.3.2. Functions and responsibilities
 Board of directors:
The Board of directors is the company’s face to make representations in
external affairs such as contracts, legal liabilities, and other trade and businesses.
They are responsible for controlling and monitoring the operations of the business
promoting the company’s long-term sustainable success establishing the company's
purpose, values, and strategy ensuring that the necessary resources are in place for
11
the company to meet its objectives and measuring performance against them. The
board also establishes a framework of prudent and effective controls, ensures
workforce policies and practices are consistent with the company's values, and
supports its long-term sustainable success.
 Board of supervisors:
The Board of Supervisors are in charge of setting strategic goals and directions
for the company's operations and growth within the plastics industry, overseeing
financial matters such as budget approvals and resource allocation, making decisions
regarding product development and innovation, ensuring compliance with
environmental regulations and sustainable practices, appointing and evaluating
company executives and managers, monitoring the quality and safety of the products,
fostering relationships with stakeholders and clients, addressing industry challenges
and opportunities, and maintaining transparency in communication with shareholders
and the public.
 Internal Control:
The Internal Control is dedicated to safeguarding the organization's assets,
ensuring compliance with regulations, and maintaining efficient operations. Its
responsibilities include designing and implementing internal control systems to
prevent fraud, errors, and inefficiencies. This involves assessing risks, establishing
processes and protocols, conducting regular audits, and monitoring financial
transactions. The internal control team verifies accuracy in financial reporting,
enforces segregation of duties, and evaluates the effectiveness of internal policies and
procedures.
 Chief executive officer:
The CEO is tasked with formulating and executing the company's business
strategies in alignment with the board of directors' objectives. This role involves
creating and implementing comprehensive business plans that encompass costeffective operations and market expansion initiatives. Additionally, the CEO
12
holds the responsibility of authorizing the release of finalized financial statements
to intended users.
 Vice General Directors:
Support the chief executive officer in controlling product quality in the
company with the international standard:
 The Vice Genereal Director 1 takes responsibility for ISO standards. He holds
the responsibility of ensuring the company's compliance with relevant ISO
standards, including establishing and maintaining quality management
systems, overseeing internal audits and corrective actions, facilitating ISO
certification processes, training employees, and driving a culture of continuous
improvement and efficiency. This role entails leadership in developing
policies, maintaining accurate documentation, managing risks, and advocating
for ISO standards both within and outside the organization.
 The Vice Genereal Director 2 takes responsibility for KCS standards, plays a
pivotal role in driving the integration and effectiveness of KCS principles
within customer support operations. This involves designing and executing a
strategic plan for knowledge management, ensuring accurate and accessible
knowledge articles, training support teams, measuring performance metrics,
and fostering collaboration across the organization. By maintaining a highquality knowledge base, promoting a culture of continuous improvement, and
aligning knowledge sharing with customer needs, the Vice General Director
contributes to enhanced customer satisfaction, streamlined support processes,
and the overall success of the company's customer service initiatives.
 Technical Department:
They oversee product development, ensuring new and improved plastic
products align with customer needs and industry trends. Material selection is a key
aspect, involving research and choosing suitable plastics for different applications.
The department handles prototyping to test designs, while process engineering
13
optimizes manufacturing methods for efficiency and quality. Rigorous quality control
measures are implemented to meet standards and regulations, and problem-solving
skills are utilized to address technical challenges during production. Collaboration
with other departments, staying innovative, ensuring compliance, and promoting
sustainability also fall under their purview.
 General Co-ordination Office:
 Import – Export Department: Managing the international movement of
goods, materials, and products. This involves ensuring compliance with
customs regulations, handling documentation for shipments, negotiating
shipping contracts, and optimizing logistics to minimize costs and transit
times. The department is responsible for maintaining strong relationships with
suppliers, distributors, and international partners, while staying informed
about trade laws, tariffs, and market trends.
 Accounting department: The accounting department serves in an advisory
capacity to the CEO and Vice Director of Finance regarding financial matters,
asset management, and economic contract settlements. It oversees and guides
accounting activities across the company, including the direct implementation
of financial policies and accounting practices. The department manages the
company's financial expenditures, gathers relevant documentation from other
departments for accounting purposes, and diligently prepares financial
statements and tax reports adhering to prevailing financial standards.
 Administrator Department:
They hold pivotal responsibilities for overseeing various administrative functions.
This includes managing personnel records, payroll, and employee benefits, ensuring
compliance with labor laws and safety regulations, and coordinating employee
training and development programs. They handle facility management, including
maintenance, security, and workplace organization to create a safe and efficient
environment.
14
1.4 Financial Performance of Hung Yen Viet Duc Plastic Joint Stock Company
Table 1.1: Balance sheet
BALANCE SHEET
For the year ended December 31, 2022
Unit: VND
Code
Items
Notes
2022
2021
2020
ASSETS
100
A.
SHORT-TERM
ASSETS
110 Cash and cash equivalents
108,643,860,509 100,813,539,263 88,707,722,838
3,065,452,932
3,565,220,283
1,985,109,172
-
-
-
120 Short-term investments
130 Short-term receivables
75,657,266,132 70,232,848,112 66,058,388,280
140 Inventories
29,371,467,283 26,177,697,035 20,290,013,533
150 Other short-term assets
200 B. LONG-TERM ASSETS
549,674,162
374,211,853
42,780,757,913 37,965,987,755 36,772,991,286
210 Long-term receivables
220 Fixed assets
837,773,833
-
-
-
40,166,823,126 36,671,237,753 35,244,454,162
230 Investment properties
-
-
-
284,207,523
284,207,523
284,207,523
250 Long-term investments
-
-
260 Other long-term assets
2,329,727,264
1,010,542,479
240 Long-term assets in progress
270 TOTAL ASSETS
1,244,329,601
151,424,618,422 138,779,527,018 125,480,714,124
RESOURCES
300 C. LIABILITIES
78,906,827,450 78,164,454,208 73,697,498,475
310 Short-term liabilities
70,058,797,450 70,668,140,328 68,180,490,149
320 Long-term liabilities
400 D. OWNERS’ EQUITY
440 TOTAL LIABILITIES
AND OWNERS’ EQUITY
8,848,030,000
7,496,313,880 5,517,008,326
36,503,180,222 35,028,936,378 33,711,709,624
115,410,007,672 113,193,390,586 107,409,208,099
15
HUNG YEN VIET DUC., JSC's Total Asset, Total
Liability and Total Equity from 2020 to 2022 (Unit:
Thousand VND)
180 000 000 000
157 424 618 422
160 000 000 000
140 000 000 000
135 779 527 018
124 780 714 124
120 000 000 000
100 000 000 000
80 000 000 000
73 697 498 475
78 164 454 208
78 906 827 450
60 000 000 000
40 000 000 000
35 028 936 378
33 711 709 624
36 503 180 222
20 000 000 000
0
2020
Total Asset
2021
Total Liability
Total Equity
2022
Линейная (Total Asset)
Figure 1.4: HUNG YEN VIET DUC., JSC's Total Asset, Total Liability and
Total Equity (2020-2022)
From the chart, it can be seen that Hung Yen Viet Duc’s total assets increased
significantly from 2020 to 2021. The main reason for this trend is that current assets,
which accounted for nearly 71% in 2020, 73% in 2021 and 72% in 2021, and the
remaining percentage of total assets belongs to long-term assets.. Regarding the
components of current assets, it can be seen that short-term receivables, accounting
for 69.6% of current assets, increased by 14.5% compared to 2020. This indicates that
the company's debt collection practices are efficient. Next, inventories recorded a
increasing by 29% because of the company's recovery post-pandemic and a higher
number of export orders in 2021. Moreover, cash and cash equivalents increased by
79,6% compared to 2020, showing that the company has strong cash flow, high
liquidity, and is ready for possible events in the context of the COVID-19 pandemic.
Moving to VICO’s non-current assets, which account for only 28.2% of total assets,
they increased slightly by 16.3% compared to 2020.
16
The total liabilities of Hung Yen Viet Duc company increased slightly from
2020 to 2022, about 9.5%. In detail, short-term liability increased steadily and
strongly during the same period, but long-term liability only increased slightly year
by year. It is also understandable that some weeks the company had to look down
during the pandemic period made short-term liability payments limited. In addition,
total owner's equity also increased slightly by 8.3% from 2020 to 2022 and achieved
an increase of about 4% year over year.
Table 1.2: Income statement
INCOME STATEMENT
For the year ended December 31, 2022
Unit: VND
Code
Items
01 Revenues
Notes
2022
2021
2020
168,346,324,972 155,230,736,382 150,373,056,307
02 Revenue deductions
13,256,800
15,283,768
135,734,900
10 Net revenue
168,333,068,172 155,215,452,614 150,237,321,407
11 Cost of goods sold
155,730,471,622 144,776,732,201 142,061,223,461
20 Gross revenues
12,602,596,550 10,438,720,413
21 Financial income
8,176,097,946
1,138,562
1,126,120
2,613,200
3,686,290,569
3,336,793,035
4,419,602,109
974,822,935
621,180,778
528,795,646
3,928,509,588
3,019,543,953
1,448,915,737
4,014,112,020
3,462,328,767
1,781,397,654
31 Other income
667,123,565
374,617,264
36,000
32 Other expenses
718,328,405
398,326,593
70,194,573
40 Other profit
(51,204,840)
(23,709,329)
(70,158,573)
3,962,907,180
3,438,619,438
1,711,239,081
230,610,706
259,728,383
277,870,544
3,732,296,474
3,178,891,055
1,433,368,537
22 Financial expenses
25 Selling expenses
26
General
administration
expenses
30 Operating profit
50 Total net profit before tax
51
60
Current corporate income
tax expenses
Profits after enterprise
income tax
17
From the income statement above, we can see that the annual net revenue has
increased relatively in the period of 2020 - 2022, but the profit after income tax has
only increased slightly in 2021 and is maintained until 2022.
In 2020, net revenue reached about 150 billion VND, by 2022 this figure has
increased by 12.7%. This also shows the effective management of the company when
it can make revenue increase steadily over the years. Moreover, the company is
located in the green area of Hung Yen province and the surrounding areas are also
ensured by the provincial authorities to prevent the Covid-19 epidemic relatively
well, so the company is also able to export goods continuously. Due to the
characteristics of the plastic industry, the cost of goods sold is quite high, making the
gross revenues account for only 7.5% of net revenue in 2022. In addition, profits after
enterprise income tax increased by about 3 times, from 1,433 million VND in 2020
to 3,732 million VND in 2022, showing that the performance in doing business of
Hung Yen Viet Duc Plastic Company over the period 2020–2022 is amazing.
18
2CHAPTER 2: ACCOUNTING ORGANIZATION AND
SYSTEM APPLIED IN HUNG YEN VIET DUC
PLASTIC JOINT STOCK COMPANY
2.1 Operation of Accounting System in Hung Yen Viet Duc Plastic Joint Stock
Company
2.1.1. Organizational structure of accounting department
Chief
Accountant
Deputy
Accountant
cum General
Accountant
Sales
Accountant
Warehouse
Accountant
Deputy
Accountant cum
Tax Accountant
Fixed Asset
Accountant
Payroll
Accountant
Payable
Accountant
Bank
Accountant
Figure 2.1: Accounting department structure
The accounting apparatus of Hung Yen Viet Duc Plastic Company is
arranged relatively compactly and reasonably according to a centralized model
with a central accounting department consisting of four people with university
degrees equipped with computers (except the treasurer). The entire accounting
work is concentrated in the accounting department, from the stage of data
aggregation, bookkeeping, accounting report making, accounting analysis and
inspection.
The organizational structure of the accounting system of the company includes
1 chief accountant, 2 deputy accountants and 1 treasurer. Specifically, 2 deputy
accountants will have to do accounting operations related to warehouse accounting,
fixed asset accounting, payroll accounting, payable accounting, bank accounting.
19
2.1.2. Functions and responsibilities of each position in accounting department
 Chief Accountant:
The chief accountant is the person in charge of and oversees the accounting
department's financial activities. She also monitors settlement, income, and
expenditure plans asset inventory activities and makes sure all numbers used in
accounting activities are accurate. In addition to implementing the company's
financial plans and managing the accounting work efficiently and economically in
accordance with current regulations and accounting regimes, this person has the
responsibility of advising the Executive Directors of the company on the direction,
measures, and regulations on financial management.
 Deputy Accountant cum General Accountant:
This role entails close collaboration with the chief accountant to ensure the
seamless and proficient operation of the company's accounting system. The Deputy
Accountant assists the chief accountant in overseeing the implementation of
accounting procedures in compliance with legal and company regulations. This
includes verifying the accuracy and legitimacy of vouchers, books, and accounting
reports prior to their submission by the chief accountant. Additionally, the Deputy
Accountant is responsible for compiling costs, calculating production expenses, and
recording revenues in financial statements on a monthly, quarterly, and annual basis
as directed by the chief accountant. The role also encompasses the review and
approval of payroll, bonuses, and payroll deductions.
 Deputy Accountant cum Tax Accountant:
This person is responsible for calculating, reporting, and ensuring compliance
with various taxes, including income tax, sales tax, and other applicable levies. She
also handles tax-related tasks, ensuring compliance with various taxes and staying
updated on tax regulations. She also stays updated with changing tax regulations and
makes strategic recommendations to optimize the company's tax position while
20
minimizing liabilities. This role contributes to accurate financial reporting, tax
compliance, and informed financial decision-making within the organization.
 Warehouse Accountant:
Evaluating and classifying materials in accordance with the principles and
requirements of state unified management and corporate governance organizing
vouchers, accounting accounts, and accounting books in accordance with the
inventory accounting method applied in the company to record, classify, and
summarize data on the existing situation and fluctuations providing timely data for
calculating production costs and product costs
organizing the accounting of
documents related to import and export materials in detailed books, material
allocation reports, etc.
 Fixed Asset Accountant:
The fixed asset accountant is responsible for tracking, recording, and managing
an organization's fixed assets, such as property, equipment, and machinery
monitoring the addition and disposal of fixed assets calculating and evaluating the
depreciation of the company's or workshop's fixed assets monitoring the process of
using, operating, upgrading, and repairing each asset in the company or factory
updating vouchers for the addition or disposal of fixed assets in software physical
examination of fixed assets on a monthly, quarterly, and yearly basis
 Payroll Accountant:
A payroll accountant is responsible for managing an organization's payroll
processes, ensuring accurate and timely payment of employee wages and benefits.
Their functions include calculating and processing employee salaries, deductions, and
taxes based on established policies and regulations. She maintain payroll records,
generate payroll reports, and address inquiries related to compensation and benefits.
Payroll accountants collaborate with HR to ensure employee data is accurate, handle
compliance with tax laws and labor regulations, and manage payroll-related filings.
21
She also contribute to financial reporting by providing payroll data and
reconciliations.
 Payable Accountant:
The payable accountant is responsible for monitoring, recording and making
reports on the situation of receivables from customers and payables of the company.
In addition, this person must also check information, credit limit, payment term of
orders based on sales contracts signed with partners and customers.
 Bank Accountant:
The bank accountant is a person who gathers, documents, processes, and
analyzes economic and financial transactions while also providing the information
required for the control of monetary operations at a bank and providing information
to entities and persons in accordance with legal requirements.
 Sales accountant
The sales accountant assumes responsibility for meticulously tracking and
documenting sales transactions and accounts receivable. They play a crucial role in
recommending suitable actions to the CEO to streamline the recovery of overdue
accounts when required. Additionally, this role involves the creation and distribution
of bills and invoices to ensure seamless financial operations.
2.2. Application of Accounting Policy and Accounting Standard in Hung Yen
Viet Duc Plastic JSC
2.2.1. General Accounting policies
Hung Yen Viet Duc Plastic Joint Stock Company (HYVDP., JSC) implements
the Vietnamese Accounting System for enterprises promulgated according to the
Circular 200/2014/TT-BTC dated December 22nd, 2014, Vietnamese Accounting
Standards issued by the Ministry of Finance to conduct accounting procedures and
prepare financial statements. Current Vietnamese accounting standards and corporate
22
accounting regimes were used in the preparation and presentation of the financial
statements.
 Fiscal year: from January 1 to December 31 each year.
 Currency used in accounting: Vietnamese dong (VND)
 The accounting documentation system: the General ledger system
Currently, along with the development of science and technology combined
with the professional capacity of the management ministries and employees of the
departments, Hung Yen Viet Duc Plastic Joint Stock Company has conducted
accounting operations on MISA software with general journal accounting form.
Below is a list of the key accounting principles used by the Hung Yen Viet
Duc Company:
Cash and cash equivalents
Amounts include cash in , bank deposits, and money in transit. Cash
equivalents are short-term investments with a maximum duration of three months that
are easily convertible to cash and have a negligible risk of value change over time.
Amounts include cash in , bank deposits, and money in transit.
Receivables
After making a provision for questionable receivables, receivables are shown
at the carrying amounts owed from clients and other debtors.
The provision for doubtful debts is made at the balance sheet date for the
outstanding amounts that are overdue 6 months later or the receivables that the debtor
is unable to pay due to liquidation, bankruptcy, or similar difficulties. Increases or
decreases in the provision balance are recorded as general and administrative
expenses in the income statement.
23
Inventory recognition
Inventory costs must be determined using the net realizable value if the net
realizable value is less than the original cost. The cost of inventory includes the price
of acquiring, processing, and other expenses directly related to getting the inventory
to where it is now. The weighted average approach is used to calculate the value of
inventory. The perpetual inventory technique is used to account for inventories.
Depreciation and tangible fixed assets recognition
The acquisition price of a tangible fixed asset is included in its historical cost,
as well as any expenses directly related to putting the item in working order for its
intended purpose. Construction expenses, actual manufacturing costs incurred,
installation and testing costs, as well as construction costs, are all included in the
historical cost of fixed assets made or built by Hung Yen Viet Duc company. Over
the expected useful lifetimes of tangible fixed assets, depreciation is calculated on a
straight-line basis. The following are the estimated useful lives:
 Buildings and structures for 5 - 25 years
 Machinery and equipment for 3 - 10 years
 Means of transport and transmission for 06 years
 Office equipment 03 - 05 years
 Management software for 5 years
Revenue recignition
The revised revenue recognition principle can be satisfied in five steps:
 Determine the terms of the customer agreement.
 Determine the duties of performance under the contract.
 The price or compensation for the transaction should be determined.
 Allocate the agreed-upon sum as payment for the contract's duties.
24
 When the performing party fulfills the performance obligation, income is
recognized.
Recognizing current and deffered corporate income tax
All income taxes that are based on taxable earnings are included in the term
"income taxes." Both current and deferred taxes are included in income tax cost.
The amount of income taxes due or refundable with regard to current-year
taxable profits at current-period tax rates is known as current income tax. Except in
cases when the tax results from a transaction or event that is immediately recognized
in equity in the same or a different period, current and deferred tax are recognized as
income or expenditure and included in the year's profit or loss.
Based on tax rates that have been adopted or substantially enacted by the date
of the balance sheet, deferred income tax is calculated at the tax rates that are
anticipated to apply to the financial period when the asset is realized or the obligation
is resolved.
2.2.2. Features of Accounting Documents
The iaccounting idocumentation isystem iof iHung iYen iViet iDuc iPlastic iJSC iis
iapplied iin iaccordance iwith ithe icontent iand irequirements istated iin iCircular iNo.
i200/2014/TT-BTC ion iAccounting idated iDecember i22th, i2014 iand iDecree iNo.
i174/2016/ND-CP idated iDecember i30th, i2016 ion i“Elaboration iof isome iArticles iof ithe
iLaw ion iAccounting”. iBelow iare isome iaccounting idocuments irelated ito ithe
icompany's iaccounting iprocedures:
25
Table i2.1.: iList iof itypical iaccounting idocuments iused iat iHYVDP., iJSC
Accounting idocuments
Payroll iand
ipersonnel
Timesheet, iPayroll icalculation isheet, iPayment iof ipayroll, iTravel
iwarrant, iPayroll iremittance ilisting, iTable iof iallocation iwages
iand isocial iinsurance
Inventory iand
Goods ireceived inote i(GRN), iGoods iissue inote i(GIN), iInventory
iwarehouse
icount isheet, iPurchase ilisting
Sales
Value-added itax i(VAT) iinvoice, iShipping idocument
Cash iand icash
Receipt, iPayment ivoucher, iCash iadvance irequest, iCash iadvance
iequivalents
ipayment, iPayment irequest, iPayment iorder
Fixed iasset
Handover iminute iof ifixed iasset, iFixed iasset icount isheet,
iDepreciation icalculation iand iallocation isheet
Accounting idocuments ishall ibe imade ionly ionce ifor ia ifinancial ioperation. iThe
icontents iof ithe iaccounting ivoucher imust ibe isufficient, iclear, iand itruthful iwith ithe
icontents iof ifinancial ioperations. iThe iwriting ion ithe ivoucher imust ibe iclear, inot ierased,
iand inot iabbreviated. iThe iaccounting idocuments imust ibe imade iin ifull icopies ias
iprescribed ifor ieach itype iof idocument.
All iaccounting idocuments imade ifrom iinside ior ioutside ithe icompany imust iall
ibe imoved ito iits iaccounting idepartment. iThe iaccounting idepartment iwill icheck ithese
idocuments iand ionly ienter ithem iinto ithe iaccounting ibooks iafter ichecking iand
iverifying itheir ilegality.
Below iis ithe iprocess iof itransferring iaccounting idocuments iat iHung iYen iViet
iDuc iPlastic iJSC:
Preparing and
collecting
accounting
documents
Approving
accounting
documents
Classifying
documents
and recording
Storage
documents
Figure i2.2.: iGeneral iprocess iof itransferring iaccounting idocuments
26
Step i1 i– iPreparing iand icollecting iaccounting idocuments: i
In ithe ifirst istep, ithe ifollowing ishould ibe inoticed:
 Accounting ivouchers imust ibe icreated ifor iall ieconomic iand ifinancial
itransactions irelated ito ithe ioperation iof ithe ibusiness.
 The iaccounting idocuments imust ibe imade iin ifull icopies ias iprescribed ifor
ieach idocument.
 Computer-generated iaccounting idocuments imust imeet ithe icontent
irequirements ifor iaccounting idocuments.
 All iaccounting idocuments imust ihave isufficient isignatures ifrom iall irelated
iparties.
Step i2 i– iApproving iaccounting idocuments: i
At ithis istep, iall iaccounting idocuments imade ifrom iinside ior ioutside ithe
icompany imust ibe icentralized iin iits iaccounting idepartment. iThe ichief iaccountant ior
isubordinates, ishould iinspect ithe icontents iof ithe idocuments, iincluding:
 Checking ithe iclarity, itruthfulness iand icompleteness iof ithe iindicators iand
ielements irecorded iin ithe iaccounting idocuments i
 Examining ithe ilegality iof iarising ieconomic iand ifinancial ioperations
irecorded ion iaccounting idocuments, ias iwell ias ireconciling iaccounting
idocuments iwith iother irelevant idocuments i
 Checking ithe iaccuracy iof idata iand iinformation ion ithe iaccounting
idocuments.
In icases iwhere ithe iinspection iof iaccounting idocuments idetects iviolations iof
iaccounting ipolicies, iregimes, iand iregulations ion ieconomic iand ifinancial
imanagement, ithey imust irefuse ito ido iso iand iat ithe isame itime iimmediately inotify ithe
iCEO ito ihandle ithe imatter iaccording ito ithe icurrent ilaw iand icompany iregulations.
27
Step i3 i– iClassifying idocuments iand irecording iaccounting ibooks: i
Based ion ithe ivalid iaccounting idocuments, ithe iaccountants imust iassemble,
iclassify, iand iarrange ithem ias ia ibasis ifor irecording iaccounting ibooks. iThis istep
iincludes isome itasks ias ibelow:
 Classifying idocuments iby iaccounting icycles i
 Providing iinformation ito ithe isupervisor iof ieach icycle i
 Journalizing ithe ientries ibased ion ithe idocuments i
 Getting idata ion idocuments iand iposting ithem ion iaccounting ibooks ias iwell ias
iupdating ithem iin ithe iaccounting isoftware.
Step i4 i– iStorage idocuments: i
Based ion ithe iaccounting iregulations iof ithe iMinistry iof iFinance ion ithe istorage
iand ipreservation iof iaccounting idocuments, ithe icompany isets iout irules ifor ithe
iaccounting idepartment ito iimplement.
During ithe ifinancial iyear, ithe iaccounting idocuments iare ikept iin ithe iaccounting
idepartment iuntil ithe iannual ifinancial istatements ihave ibeen iapproved. iIf ithere iis ia
ichange iin ipersonnel, ia irecord iof ihanding iover ipreserved idocuments imust ibe imade.
At ithe iend iof ithe ifinancial iyear, iwhen ithe iannual ifinancial istatements iare
iapproved, ithe idocument iis iplaced iin ithe icompany's iarchives. iArchived iaccounting
idocuments imust ibe ioriginal. iIn ithe ievent ithat iaccounting idocuments iare itemporarily
iseized ior iconfiscated, ithere imust ibe ia irecord ienclosed iwith ia icertified icopy i iif iit iis
ilost ior idestroyed, ithere imust ibe ia irecord ienclosed iwith ia iphotocopy ior icertification.
iThe itime ilimit ifor istoring iaccounting idocuments icomplies iwith iArticles i12, i13, iand
i14 iof iDecree i174/2016/ND-CP idated iDecember i30th, i2016 ion i"Elaboration iof isome
iArticles iof ithe iLaw ion iAccounting".
28
2.2.3. iFeatures iof iChart iof iAccounts i
Hung iYen iViet iDuc iPlastic iJoint iStock iCompany iuse ithe iaccounting imethod
imandated iby iCircular iNo. i200/2014/TT-BTC. iThe iuse iof iaccounting iaccounts iat
ilevel i1 iaids iin ithe iorganization's itransparent iand iunderstandable ifinancial
imanagement. iExamples iof icertain ifirm iaccounts iin iuse iare ishown ibelow:
Table 2.2.: List of accounts used by HYVDP., JSC
Account code – Sub 1
Type
111, 112, 131, 133, 138, 141, 153, 156
Assets
211, 213, 214, 229, 241, 242
Liabilities
331, 333, 334, 335, 338, 352
Owner’s equity
411, 421
Revenue
511, 515
Production
and
expense
operation
621, 622, 632, 641, 642
Other income
711
Other expenses
811, 821
Income Summary
911
29
Note:
Table 2.3: List of account name
Account
Account Name
Account
Number
Account Name
Number
111
Cash on Hand
335
Internal Payables
112
Cash in Bank
338
Other Payables
131
Accounts Receivable
352
Provision Payables
133
Deductible VAT
411
Owners’ Equity
138
Other Receivables
421
Undistributed earnings
141
Advance to
511
Sales
153
Tools, Supplies
515
Revenue - Financing Activities
156
Cost of Goods
621
Direct Material Expense
211
Tangible non-current assets
622
Direct Labour Expense
213
Intangible fixed assets
632
Cost of Goods Sold
214
Depreciation of fixed assets
641
Selling Expenses
229
Allowance for Long-term
642
Administrative Expenses
Investments
241
Capital construction in process
711
Other Incomes
242
Prepaid expenses
811
Other expenses
331
Accounts Payable
821
Profit Tax Expense
333
Tax Payables & Payables to GOV
911
Income Summary
334
Employee Payables
30
2.2.4. Features of Accounting Books
Hung Yen Viet Duc Company uses computer accounting in combination with
the general journal technique, adhering to the requirements set out by the current
Vietnamese Accounting Standards. This approach is supported by MISA
management software, which has an accounting module.
Ledger system:
 General Journal: Observe the day-to-day accounting data
 General Ledger: maintain track of each accounting account's summary
accounting information
Detailed accounting book system:
 A thorough accounting record of money, money in the bank, goods, accounts
payable and receivable, revenue, expenses, etc.
 The vouchers will be thoroughly examined and categorized throughout the
accounting period, acting as the foundation for recording in the General
Journal from this General Journal, we will record transactions in line with
rules in the Ledger. Emerging transactions are simultaneously documented in
the appropriate comprehensive accounting books and cards.
 The accountants will examine and compare the information entered in the
Ledger and the comprehensive summary table before preparing the financial
statements at the end of the month or on a regular basis (made from the detailed
accounting books). The following steps describe how to record accounting
books using general journal accounting:
31
Accounting Documents
Special Journal
General Journals
Detailed Accounting
Books
General Ledger
Detailed Summary
Table
Balance Sheet
Account
FINANCIAL
REPORT
Recording daily
Recording at the end of month or periodically
Reconciliations
Figure 2.3: The process of recording accounting books in the General Journal
On a day-to-day basis, the accounting process commences with the
examination of verified accounting documents, which serve as the foundation for
bookkeeping. Initially, transactions are entered into the General Journals.
Subsequently, using the data logged in the General Journal, the relevant accounting
entries are recorded in the General Ledger, categorized according to suitable
accounting accounts. Concurrently, these transactions are also meticulously
documented in corresponding specialized journals and detailed accounting records.
At periodic intervals, or at the close of each month, contingent upon the
volume of transactions, a consolidation occurs for each specialized journal. This
32
entails extracting data to be recorded in appropriate accounts within the General
Ledger. This process involves omitting duplicate entries that may result from a
transaction simultaneously recorded in various specialized journal books, if
applicable.
As the month, quarter, or year concludes, the ledger data is aggregated to
compile the Trial Balance. Post this aggregation, an exhaustive cross-checking and
reconciliation process transpires. This validates the congruity of data present in the
General Ledger and the Nominal Ledger—derived from meticulous records in
detailed accounting books and cards. This reconciled data serves as the foundational
material for the formulation of financial statements.
Aside from the conventional approach of maintaining a general ledger, the
company supplements its accounting workflow with the use of specialized
accounting software named MISA Accounting. This software, acting as a digital
aid, streamlines the process of recording transactions in a ledger format. The
subsequent workflow using MISA Accounting entails:
Figure 2.4.: The process of recording in the form of general ledger using
MISA accounting software
33
Information imay ibe ieasily iretrieved iin ithe iform iof icomprehensive idata itables
iwhile iperforming iaccounting iwith ithe iaid iof ithe imanagement isoftware isystem iand
iaccounting imodule. iFollowing idata ientry, ithe iprogram iwill iautomatically iupdate, iand
ilink ispecialized ibooks, igeneral iledgers, iledgers, icards, iand idetailed iaccounting ibooks
irelated ito itransactions iin iaccordance iwith ithe irequirements isets iof iMISA iaccounting
isoftware.
2.2.5. iFeatures iof iAccounting iReports i
2.2.5.1. iFinancial iStatements
Financial istatements iplay ian iimportant irole iin ithe iaccounting ioperations iof
iany ienterprise. iAt iHung iYen iViet iDuc iPlastic iJSC, ifinancial istatements iare iused ito
iprovide iinformation iabout ifinancial isituations, iproduction iand iother iactivities'
iperformance, ithe icompany‘s icash iflows, iand iother iinformation ithat iis iuseful ifor iusers
iin imaking ieconomic idecisions. i
A icomplete iset iof ifinancial istatements iof iHung iYen iViet iDuc iPlastic iJSC iincludes:

Balance iSheet i

Income iStatement i

Statement iof icash iflow i iand

Notes iof ifinancial istatements.
The icompany iprepares ifinancial istatements iannually iin iaccordance iwith
iVietnamese iAccounting iStandard i21 i(VAS i21). iSpecifically, ithe iaccounting iperiod
istarts iat iJanuary i1st iand iends iat iDecember i31st.
 Balance isheet: iA irecord iof ithe ienterprise's iassets iand icapital ias iof ithe idate ithe
ifinancial istatements iwere iprepared.
 Income istatement: idemonstrates irevenue, icost iof igoods isold, iexpenses, iprofit
iand iloss. iFrom ithis ipoint, iindividuals imay iassess ithe ioutcomes iand ithe
icompany's ifinancial iperformance iand iforecast ithe ifuture.
34
 Cash iflow istatement: isummarizes ian iorganization's icash iinflows iand ioutflows
iduring ia ispecific itime iperiod, iwhich iare ibroken idown iinto ithree icategories:
ibusiness iactivities, iinvestment iactivities, iand ifinancial iactivities. iPico
iCompany iemploys ia ideceptive istrategy.
 Notes ito ithe iFinancial iStatements: ito idescribe iand ievaluate iin idepth ithe
iinformation iand idata icontained iin ithe iCash iFlow iStatement, iIncome
iStatement, iand iBalance iSheet.
Annual financial statements are prepared in accordance with accounting
standards by the chief accountant and general accountant. The time frame specifically
runs from January 1 to December 31. Likewise, management reports displaying business
performance, payables to suppliers, and receivables from customers must be created each
month or quarter. The board of directors will then be able to make choices and set
directions for the company's business operations as a result.
2.2.5.2. Managerial reports
The chief accountant assumes the responsibility of crafting managerial reports
aimed at ensuring the board of directors remains well-informed about the company's
production performance. These reports facilitate the formulation of plans for
imminent operational endeavors and provide direction for long-term objectives.
Prepared on a monthly, quarterly, and yearly basis, these reports are then presented
to the CEO for thorough evaluation. This process not only furnishes the CEO with a
comprehensive understanding of the company's operations but also fosters informed
decision-making.
The managerial reports of Hung Yen Viet Duc Plastic JSC include but are not
limited to:

Budget Reports

Internal Financial Reports

Sales Reports

Production Cost Analysis Report
35

Accounts Receivable Aging Reports

Report on payment with the bank.
2.3 Features of some key accounting cycles in Hung Yen Viet Duc Plastic Joint
Stock Company
2.3.1. Accounting for raw materials
2.3.1.1. Feature of raw materials in Hung Yen Viet Duc Plastic Joint Stock Company
a. Nature of raw material
Raw materials, often referred to as materials, denote entities that possess
physical existence and partake in a solitary production cycle. When engaged in the
production process, these materials undergo transformation through labor. They are
either fully consumed or altered from their original state to generate the desired
product.
Given the specific attributes of the materials employed by Hung Yen Viet Duc
Plastic Joint Stock Company, along with the conditions of its warehousing facilities,
maintaining an extensive inventory of diverse materials is unfeasible. Additionally,
owing to the company's customarily on-demand production approach, the volume of
acquired raw materials is typically aligned with the predetermined consumption
standard necessary to manufacture the specific quantity of products stipulated in the
placed order. Consequently, reserve quantities remain minimal.
In the current market economy, the supply of raw materials always meets the
production needs of the company. When the company has a need, the supply is always
timely and adequate. Another reason is that the company has established relationships
with many suppliers that contribute to the company's fulfilling its tasks through the
management of materials.
b. Classification of raw material
To ensure precise and efficient accounting procedures, Hung Yen Viet Duc Plastic
Joint Stock Company has implemented a categorization system for materials based
on their intended use. This approach simplifies the accounting process, saving time
and effort.
36
Table 2.4.: Classification of raw materials in Hung Yen Viet Duc Plastic Joint
Stock Company
RAW MATERIALS
No.
1
Direct materials
Polyethylene (PE)
Indirect materials
Monolithic
Fuel, energy
Petroleum
refractories
2
Polypropylene (PP)
Magnesium sand
Natural gas
3
Polystyrene (PS)
Hard coal
4
Polycarbonate (PC)
Lignite
5
PolyvinylChloride (PVC)
Nuclear energy
Polyethylene
Renewable energy
6
Terephthalate (Pet)
2.3.1.2. Raw material costing method in Hung Yen Viet Duc Plastic Joint Stock Company
Raw material valuation involves quantifying the worth of materials through
monetary assessment, following established principles that uphold consistent
standards. Given the diverse nature and frequent fluctuations of raw materials, it's
imperative to promptly and precisely reflect their value in accounting records.
a. Historical cost of raw materials
Raw materials of Hung Yen Viet Duc Plastic Joint Stock Company are mainly
purchased from outside, so they are very diverse and of many types. In particular, the
company does not have any imported raw materials.
The historical cost of raw materials purchased from outside includes the
purchase price stated on the invoice (VAT excluded) plus import tax, excise tax,
environmental protection tax (if any), plus expenses incurred when purchasing
(transportation, preservation, classification, insurance, etc.) and less any discounts.
37
For example, on May 2nd 2022, buy 10,000 kg of Polyethylene according to
the invoice of Hung Anh Joint Stock Company with the unit price of 330,000,000
VND. The 10% input VAT is 33,000,000 VND. Thus, the historical cost of raw
materials is 330,000,000 VND.
b. Cost of goods issued
The Hung Yen Viet Duc Plastic Joint Stock Company's raw materials are
mainly issued for production. Currently, the company uses the Specific identification
method to calculate the cost of goods issued. According to this method, the company
includes in the cost of goods issued the costs of the specific items issued and includes
in inventory the costs of the specific items on hand.
For examples, on May 2 nd, 2022, according to the goods issue note dated
May 2nd, 2022, outflowed 10,000 kg of scrap steel with a purchase price of
330,000,000 VND and a 10% input VAT of 33,000,000 VND. According to the
Specific identification method, the cost of outflow for this material is 330,000,000
VND.
2.3.1.3. Source of documents
Raw material accounting encompasses two primary functions: accounting for
incoming raw materials and accounting for outgoing raw materials. Therefore, the
documents used in accounting materials are also classified into two types of activities:
 Accounting for inflow of raw materials
-
Request for purchase of materials
-
VAT invoice
-
Minutes inspection of material
-
Goods received note.
38
Figure 2.5: Rotation flows of accounting documents for inflow of raw materials
 Accounting for outflow of raw materials
-
Request for supply materials
-
Goods issue note.
39
Figure 2.6: Rotation flows of accounting documents for outflow of raw
materials
2.3.1.4. Account in use
Hung iYen iViet iDuc iPlastic iJoint iStock iCompany iuses iAccount i152 i- iRaw
iMaterials ito irecord ithe icurrent icost ior iincrease ior idecrease iin icost iof iall icomponent
iparts icurrently iin ithe icompany’s iwarehouses. iThe icompany's iraw imaterials iare
imainly ipurchased ioutside.
Below iis ithe istructure iof iAccount i152 iused iby iHung iYen iViet iDuc iPlastic
iJoint iStock iCompany:
Account i152 i– iRaw imaterials
- iActual icost iof iraw imaterials ipurchased, - iActual icost iof iraw imaterials isold ifor
ihand-made
iprocessed,
ioutsourced, iproduction, ibusiness, isale, ioutsourcing,
iprocessed, ireceived ias icontribution ior ior icontribution ias icapital i
ireceived ifrom iother isources i
- iCost iof iraw imaterials ireturned ito
- iCost iof iraw imaterials iexcess idetected isellers ior isales irebates
iwhen iconducting iphysical iinventory - iTrade idiscount ion iraw imaterials
icount
ipurchased i
- iCost iof iraw imaterials idetected ilost
iwhen iconducting iphysical iinventory
icount
40
The icompany iuses i5 isub-accounts ifor iAccount i152 i– iRaw imaterials iin
iaccordance ito ithe iclassification imethod iabove:

Account i1521 i– iDirect imaterials

Account i1522 i– iIndirect imaterials

Account i1523 i– iFuels

Account i1524 i– iReplaced isupplies

Account i1525 i– iBasic iconstruction imaterials
Accounting ifor imaterials iin iHung iYen iViet iDuc iPlastic iJoint iStock iCompany ial
so iuses ithe ifollowing iaccounts: iAccount i133 i– iDeductible iVAT, iAccount i111 i– iCash io
n ihand, iAccount i112 i– iCash iin ibank, iAccount i331 i– iTrade ipayables.
2.3.1.5. iDetailed iaccounting ifor iraw imaterials
The idetailed iaccounting iof iraw imaterials iin iHung iYen iViet iDuc iPlastic iJoint
iStock iCompany imonitors ithe irecording iof ichanges iin ithe ioutput iof ieach itype iof iraw
imaterial iused iin ithe iproduction iprocess ito iprovide idetailed iinformation ithat isupports
iraw imaterial imanagement i
Hung iYen iViet iDuc iPlastic iJoint iStock iCompany iapplies ithe iparallel icard
imethod iin iaccounting ifor iraw imaterials ias idetailed.
Figure i2.7: iParallel icard imethod ifor imaterial imanagement
41
* iAccounting ifor ithe iinflow iof iraw imaterials:
Based ion ithe icustomer's iorder, ithe imaterial iplanning idepartment iprepares ithe
irequest ifor ithe ipurchase iof imaterials, iwith ithe iapproval iof ithe ichief iaccountant iand
ithe ivice idirector iof iproduction.
Table 2.5: Request for purchase of materials
HUNG YEN VIET DUC PLASTIC JOINT STOCK COMPANY
52 Nguyen Van Linh Street, An Tao Ward, Hung Yen City, Hung Yen Province
Tel: 0221.3896.238
REQUEST FOR PURCHASE OF MATERIALS
24th September, 2022
Requested by: Nguyen Minh Vu
Department: Site manager at Material planning department
Purpose: Fulfill orders of Xuan Phat Group
No.
Items
1 Polyethylene (PE) 1018FA
Unit
Quantity
kg
10,000
Note
Vice General Director Chief Accountant Material Supply Officer
Preparer
(Signature, Full name) (Signature, Name) (Signature, Full name)
(Signature, Name)
42
After the approval is collected enough, the material planning department
proceeds to purchase materials and gets back the VAT invoice.
Table 2.6: VAT Invoice
VAT INVOICE
Code: 1C22THV
No.: 00000002
Copy 2: Customer
2nd May, 2022
Seller: THIEN THANH PHAT PRODUCTION TRADING IMPORT EXPORT
COMPANY LIMITED
Address: 2177/1 Huynh Tan Phat Street, Quarter 7, Nha Be Town, Nha Be District, Ho
Chi Minh City.
Tax number: 0312338570
Bank account No: 128903027924 - Vietinbank - North Hung Yen
Phone:
Buyer:
Company’s name: HUNG YEN VIET DUC PLASTIC JOINT STOCK COMPANY
Address: 52 Nguyen Van Linh Street, An Tao Ward, Hung Yen City, Hung Yen Province
Tax number: 0900696982
Bank account No:
Payment method: Bank transfer
No.
Items
Unit
Quantity
Unit Price
(VND)
Amount
1
Polyethylene (PE)
1018FA
kg
10,000
33,000
330,000,000
Total
10,000
330,000,000
VAT rate:
10%
VAT amount:
33,000,000
Grand Total (in number):
363,000,000
Total amounts (in words): Four hundred and ninety five million Vietnamese dong
Buyer
Seller
Director
(Signature, Full name)
(Signature, Full Name)
(Stamp, Signature, Full Name)
43
When imaterials iare itransported ito ithe iwarehouse, ithe iMinutes iinspection iof
imaterial ishall ibe imade:
Table i2.7: iMinutes iinspection iof imaterials
HUNG iYEN iVIET iDUC iPLASTIC iJOINT iSTOCK iCOMPANY
52 iNguyen iVan iLinh iStreet, iAn iTao iWard, iHung iYen iCity, iHung iYen iProvince
Tel: i0221.3896.238
i
MINUTES iINSPECTION iOF iMATERIALS i
2nd iMay, i2022
No. i05.02
Based ion iContract iNo. i00000002 iissued ion i2nd iMay, i2022
Inspection icommittee iincludes:
Mr./Ms.: iNguyen iMinh iVu
i i i i iPosition: iSite iManager
Chief iof icommittee
Mr./Ms.: iNguyen iPhuong iAnh
i i i i iPosition: iSite iAccountant
Member
Mr./Ms.: iLuong iTra iMy i
i i i i iPosition: iStorekeeper
Member
Mr./Ms.: iNguyen iThe iBinh
i i i i iPosition: iTransporter
Member
Inspection imethod: iPhysical iCount
Inspected itypes iof imaterials ias ibelow:
Results
No
Items
Testing
imethod
Quantity
iin
Unit
ivoucher
Quantity
iof
icorrect i
1 Polyethylene i(PE) i1018FA Count
kg
10,000
10,000
Quantity iof Note
iincorrect
0
Inspection icommittee’s iopinion: iPassed
Technical iEngineer
Stock ikeeper
Chief iof icommittee
(Signature, iName)
(Signature, iFull iname)
(Signature, iName)
44
After ithat, ithe iGoods ireceived inote iwill ibe imade:
Table i2.8: iGoods ireceived inote
HUNG iYEN iVIET iDUC iPLASTIC iJOINT iSTOCK iCOMPANY
52 iNguyen iVan iLinh iStreet, iAn iTao iWard, iHung iYen iCity, iHung iYen iProvince
Tel: i0221.3896.238
i
Code: PN
No.: 01.05
GOODS iRECEIVED iNOTE
Copy i1: iStorage iat iworks
2nd iMay, i2022
Supplier: iHOANG iVIEN
Shipment iTransportation’s iNumber: i
Receipt iat isite: iThang iLoi
Place: iAn iXa iIndustrial iZone i– iMy iXa i– iHung iYen
No.
1
Items
Polyethylene
Quantity
Unit
In inumber In iwords
iprice
Unit
i(PE)
kg
10,000
10,000
i1018FA
VAT i(10%)
iiiiiiiiiiiiiiii
10,000
Total
33,000
Amount
330,000,000
33,000,000
10,000
363,000,000
Total iAmounts i(in iwords): iFour ihundred iand ininety ifive imillion iVietnamese idong
Material iAccountant
Stock ikeeper
Deliverer
Site iManager
(Signature, iFull iname)
(Signature, iFull
(Signature, iFull
(Signature, iFull iname)
iname)
iname)
45
The iGoods ireceived inote iincludes i3 icopies. iCopy inumber i1 iwill ibe istored.
iCopy inumber i2 iwas ihanded ito ithe istorekeeper, ithen itransferred ito ithe imaterials
iaccountant ifor iposting. iThe ishipper ireceived icopy inumber i3.
2.3.1.6. General accounting for raw materials
Table 2.9: General journal
HUNG YEN VIET DUC PLASTIC JOINT STOCK COMPANY
52 Nguyen Van Linh Street, An Tao Ward, Hung Yen City, Hung Yen Province
Tel: 0221.3896.238
GENERAL JOURNAL
May 2022
Unit: VND
Date
Voucher
Code
05/02 PN01.05
05/03 PX01.05
Actual amount
Descrip Recorded on No. of Reciprocal
Date
05/02
05/03
-tion
ledger
row
account
Debit
1521
330,000,000
1331
33,000,000
3311
363,000,000
Issue
154
297,000,000
PE18FA
1521
Purchase
PE18FA
Credit
297,000,000
…
05/16 PN07.05
05/16
Purchase
PE19FA
1521
264,000,000
1331
26,400,000
3311
290,400,000
…
Closing
balance
x
x
x
This book includes … pages, marked from page 01 to page …
Opening book date:
31st May, 2022
Recorder
Chief Accountant
Vice Director
(Signature, Name)
(Signature, Full name)
(Signature, Full name)
Table 2.10: General ledger of Account 152
46
HUNG YEN VIET DUC PLASTIC JOINT STOCK COMPANY
52 Nguyen Van Linh Street, An Tao Ward, Hung Yen City, Hung Yen Province
Tel: 0221.3896.238
GENERAL LEDGER
May 2022
Account 152 – Raw Materials
Unit: VND
General
Voucher
Date
Description
Code
Date
journal
Reciprocal
Amount
account
Page Row
Debit
OB
Credit
479,230,200
05/02 PN01.05 05/02 Purchase PE18FA
3311
05/03 PX01.05 05/03 Issue PE18FA
154
330,000,000
297,000,000
…
05/16 PN07.05 05/16 Purchase PE19FA
3311
264,000,000
…
…
Total
1,266,730,200 725,634,406
CB
541,095,794
This book includes … pages, marked from page 01 to page …
Opening book date:
31st May, 2022
Recorder
Chief Accountant
Vice Director
(Signature, Name)
(Signature, Full name)
(Signature, Full name)
47
2.3.2. Accounting for cash
2.3.2.1. Feature of cash
a. Nature of cash
Cash is a part of short-term assets, exists in the form of money, and has the
highest liquidity, including cash on hand, cash in bank, and cash in transit. With the
highest liquidity, cash is used to meet the payment needs of the business, make
purchases, or pay expenses.
b. Classification of cash
 According to the form of existence, cash is divided into:
-
Vietnamese dong (VND)
-
Foreign currencies
-
Monetary gold
 According to the state of existence, cash is divided into:
-
Cash on hand
-
Cash in bank
-
Cash in transit
c. Duties of accounting for cash
 Accurately, sufficiently, and timely reflect the available cash on hand,
fluctuations in the period, and the use of cash funds closely examine and
conduct cash collection, expenditure, and cash management.
 Accurately, sufficiently, and timely reflect the situation of cash in the bank
and cash in transit closely supervise and comply with regulations on
money management and non-cash payment modes.
48
2.3.2.2. iAccount iin iuse
Hung iYen iViet iDuc iPlastic iJSC iuses iAccount i111 i– iCash ion ihand ito irecord
irevenues, iexpenses, iand ibalance iof ithe icompany’s ifund.
Below iis ithe istructure iof iAccount i111 iused iby iHung iYen iViet iDuc iPlastic
iJSC:
Account i111 i– iCash ion ihand
- i i iReceived icash, ior iforeign icurrency i
- iDispatched icash, ior iforeign icurrency i
- iCash ior iforeign icurrency iin iexcess - iCash ior iforeign icurrency iin ideficit
idetected iunder iverification i
idetected iunder iverification i
- iExchange irate idifferences idue ito ire- - iExchange irate idifferences idue ito ireevaluation iof iforeign icurrency ibalance iat evaluation iof iforeign icurrency ibalance
ithe ireporting itime i(if iforeign icurrency iat ithe ireporting itime i(if iforeign
irate irises iagainst iVND).
icurrency irate ifalls iagainst iVND) i
Debit ibalance: iInventoried icash ior iforeign icurrency iat ithe ireporting itime.
The icompany iuses i2 isub-accounts ifor iAccount i111 i– iCash ion ihand:

Account i1111 i– iVietnamese idong

Account i1112 i– iForeign icurrencies
To irecord icurrent iamounts iand iincreases iand idecreases iin idemand ideposits iof
ithe icompany iin ia ibank i icredit inotes, idebit inotes, ior ibank istatements ienclosed iwith
ioriginal idocuments i(payment iorder, icollection iorder, idepository itransfer icheck,
icertified icheck, ietc.), iHung iYen iViet iDuc iPlastic iJSC iuses iAccount i112 i– iCash iin
ibank. iThe iAccount i112 iis istructured ias ibelow:
49
Account i112 i– iCash iin ibank
- i i iDeposited iVND ior iforeign icurrency i
- iWithdrawn iVND ior iforeign icurrency i
- iExchange irate idifferences idue ito ire- - iExchange irate idifferences idue ito ireevaluation iof iforeign icurrency ibalance iat evaluation iof iforeign icurrency ibalance
ithe ireporting itime i(if iforeign icurrency iat ithe ireporting itime i(if iforeign
irate irises iagainst iVND).
icurrency irate ifalls iagainst iVND) i
Debit ibalance: iActual ideposited iVND ior iforeign icurrencies iat ithe ireporting
itime.
The icompany iuses i2 isub-accounts ifor iAccount i112 i– iCash iin ibank:

Account i1121 i– iVietnamese idong

Account i1122 i– iForeign icurrencies
50
Figure 2.1. Entries related to Cash
51
2.3.2.3. Source of documents
Accounting for cash consists of two major activities: accounting for cash
receipt and accounting for cash payment. Therefore, the documents used in
accounting for cash are also classified into two types of activities:
 Accounting for cash receipt
Figure 2.9: Rotation flows of accounting documents for cash receipt
 Accounting for cash payment
52
Figure 2.10: Rotation flows of accounting documents for cash payment
2.3.2.4. Book keeping process for cash
Figure 2.11: Bookkeeping process for cash
2.3.3. Accounting for payroll
2.3.3.1. Features of employees and payroll methods applied
As ithe ifeatures iof ithe iproduction ifield, iHung iYen iViet iDuc iPlastic iJSC ihas i2
ilabor iobjects: idirect ilabor iand iindirect ilabor ias imanagement iofficers. iThe icompany
iapplies ithe itime irate isystem ito iall i2 ilabor iobjects.
According ito ithis isystem, isalary ipayments iare imade imonthly ibased ion iaccrual
idaily ipayment iand ithe iactual iworking idays iin ia imonth.
Salary ipayable iby imonth
=
Daily isalary ilevel
=
Daily isalary ilevel
x
Actual iworking idays iin imonth
Monthly ibasic isalary ilevel i+ iAllowances i(if iany)
53
Working idays iin ia imonth ias iprescribed
For ipayroll ideductions, ithe icompany ifollowed ipolicies ifor iemployees ias
iregulated iby ithe istate. iSpecifically, ithe icompany isupports iemployees iwith isocial
insurance, ihealth insurance, iunemployment insurance, ior itrade iunion ifees. iBased ion ithe
isalary ithat ian iemployee igets ipaid imonthly, ithe ipayroll iaccountant irecords ithe
ideduction ifrom ipayroll ias ia ispecific ipercentage iof ieach ideduction. i
In iorder ito isupport iemployees iand iemployers iwho iencounter idifficulties idue ito it
he iCOVID-19 ipandemic, ithe iGovernment ihas si sued iResolution iNo. i68/NQCP
idated
iJuly
i1st,
i2021
iand
iResolution
iNo.
i116/
iNQ-
CP idated iSeptember i24th, i2021, n
i iwhich istipulates ithe ireduction iof ithe irate iof isome ikin
d iof ideduction. iAccording ito ithis, ithe irate ifor ieach ikind iof ideduction ifrom iJuly i1st, i202
1 ito iSeptember i30th, i2021 ias ibelow:
Table i2.11: iPercentage iof ipayroll ideductions ifrom i07/01/2021 ito i09/30/2021
Deduct ito
Payroll ideductions
icompany’s iexpenses
i(%)
Deduct ito iemployee’s
isalary i(%)
Total i(%)
Social insurance
17.0
8.0
25.0
Health insurance
3.0
1.5
4.5
Unemployment insurance
1.0
1.0
2.0
Total
21.0
10.5
31.5
Trade iunion ifees
2.0
2.0
From iOctober i1st, i2021, ito iJune i30th, i2022, ithe irate ifor ieach ikind iof ideduction
is ipresented ias:
Table i2.12: iPercentage iof ipayroll ideductions ifrom i10/01/2021 ito i06/30/2022
Payroll ideductions
Deduct ito icompany’s Deduct ito iemployee’s
Total i(%)
iexpenses i(%)
isalary i(%)
Social insurance
17.0
8.0
25.0
Health insurance
3.0
1.5
4.5
54
Unemployment ni surance
0.0
1.0
1.0
Total
20.0
10.5
30.5
Trade iunion ifees
2.0
2.0
From iJuly i1st, i2022, ito iSeptember i30th, i2022 ithe irate ifor ieach ikind iof
ideduction ias ibelow:
Table i2.13: iPercentage iof ipayroll ideductions ifrom i07/01/2022 ito i09/30/2022
Payroll
ideductions
Deduct ito icompany’s Deduct ito iemployee’s
Total i(%)
iexpenses i(%)
isalary i(%)
Social insurance
17.5
8.0
25.5
Health insurance
3.0
1.5
4.5
0.0
1.0
1.0
Total
20.5
10.5
31.0
Trade iunion ifees
2.0
Unemployment
insurance
2.0
Since iOctober i1st, i2022, ithe irate ifor ieach ikind iof ideduction is iapplied ias iDecree
i595/QD-BHXH issued iby iSocial insurance iVietnam idated iApril i14th, i2017.
Table i2.14: iPercentage iof ipayroll ideductions isince i10/01/2022
Payroll
ideductions
Deduct ito icompany’s Deduct ito iemployee’s
Total i
iexpenses i(%)
isalary i(%)
(%)
Social insurance
17.5
8.0
25.5
Health insurance
3.0
1.5
4.5
1.0
1.0
2.0
Total
21.5
10.5
32.0
Trade iunion ifees
2.0
Unemployment
insurance
2.0
55
56
2.3.3.2. iAccount in iuse
Hung iYen iViet iDuc iPlastic iJSC iuses iAccount i334 i– iPayables ito iemployees ito ir
ecord ipayables iand ipay ipayables ito iemployees iof icompany, n
i cluding isalaries, iwages, ib
onuses, isocial ni surance iand iother ipayables n
i cluded n
i iemployees’ n
i come.
Below si ithe istructure iof iAccount i334 iused iby iHung iYen iViet iDuc iPlastic iJSC:
Account i334 i– iPayables ito iemployees
- iSalaries, iwages iand ibonuses, isocial - iSalaries, iwages iand ibonuses, isocial
insurance iand iother items iwhich iare ipaid insurance iand iother items iwhich iare ipaid
ior ipaid in iadvance ito iemployees i
ito iemployees.
- iAmounts ideducted ifrom isalaries i i
Credit ibalance: iOutstanding isalaries, iwages iand ibonuses, isocial insurance iand
iother items ipayable ito iemployees.
Account i334 i– iPayables ito iemployees, icomprises i2 isub-accounts:
 Account i3341 i– iPayables ito istaff
 Account i3348 i– iPayables ito iother iemployees
To irecord ipayroll ideductions, ithe icompany iuses iAccount i338 i– iOther
iPayables. i iRelating ito ipayroll iaccounting, iAccount i338 is istructured ias:
Account i338 i– iOther iPayables
- iTrade iunion ifees idisbursed iat - iAppropriating isocial insurance, ihealth insurance,
iunits i
iunemployment insurance iand itrade iunion ifees into
- iAmounts iof isocial insurance,
ioperating iexpenses ior isalaries iof iemployees i
ihealth insurance, iunemployment
- iPayment iwith iemployees ion icollective ihousing irent
insurance, itrade iunion ifees ipaid ito s, ielectricity iand iwater iexpenses i
imanage ifund iagencies iof isocial
- iOverspending itrade iunion ifees iwhich iare igranted
insurance, ihealth insurance,
iadditionally i
iunemployment insurance iand
- iAmounts iof isocial insurance igiven iby isocial
itrade iunion ifees.
insurance iagencies iwhich iare ipaid ito iemployees
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Credit ibalance: iAccrued isocial insurance, ihealth insurance iand itrade iunion ifees
iwhich ihave inot ibeen ipaid ito imanagement iagency ior iunspent itrade iunion ifees.
Account i338 i– iOther ipayables, icomprises i8 isub-accounts, ias iregulated in
iCircular i200/2014/TT-BTC. iHowever, in ipayroll iaccounting, iespecially ifor ipayroll
ideductions, i4 isub-accounts iare iused:
 Account i3382 i– iTrade iunion ifees
 Account i3383 i– iSocial insurance
 Account i3384 i– iHealth insurance
 Account i3386 i– iUnemployment insurance
2.3.3.3. iSource iof idocuments
The idocuments ithat iare iused in ipayroll iaccounting include:
-
Monthly iemployee itimesheet i
-
Employee itimesheet ifor ipremium ihours i
-
Pay islip i
-
Pay islip ifor ipremium ihours i
-
Book iof iapportion iof iwages iand isocial insurance i
-
Salary ireduction ilist i(social insurance, ihealth insurance, itrade iunion
icontributions).
General irotation iflows iof idocuments in ipayroll icycle is idescribed ias ibelow:
iiiiiiiiiiiiiii
iiiiiiiiiiiiiii
iiiiiiiiiiiiiii
iiiiiiiiiiiiiii
iiiiiiiiiiiiiii
iiiiiiiiiiiiiii
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Figure i2.12: iGeneral irotation iflows iof idocuments iin ipayroll icycle
2.3.3.4. iBook ikeeping iprocess ifor ipayroll
Hung iYen iViet iDuc iPlastic iJSC iapplies ithe imethod iof icalculating isalary in ithe
iform iof itime irate, iwhich is i26 idays/month.
Day iby iday iat ieach idepartment iand iworshop, ione iperson is iresponsible ifor
ichecking iall istaff’s iattendance iand iticking it in ithe iemployee itimesheet.
All ithe itimesheets iare icollected iand isent ito ithe iHuman iresource idepartment.
iAt ithe iend iof ithe imonth, ithe iaccountant ireceives ithe itimesheets ifrom ithe iHuman
iresource idepartment ito:

Monitor iand icheck iemployees’ itimesheets i

Pay iall isalaries iand iallowances i

Deduct iwages ias iprescribed iby ilaw i

Then imake ipayroll, iwages iand ideductions isummary.
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2.3.3.5. iAccounting ifor ipayroll ideductions
Accounting ifor isocial n
i surance, ihealth insurance, iunemployment insurance, ior
itrade iunion ifees is idetailed ias ibelow:
 When iappreciating isocial insurance, ihealth insurance, iunemployment insurance,
ior itrade iunion ifees, ithe ifollowing iaccounts ishall ibe irecorded: i
Dr i622, i623, i627, i641, i642 i(amounts included in ioperating iexpenses)
Dr i334 i– iPayables ito iemployees i(amounts ideducted ifrom isalaries iof
iemployees)
Cr i338 i– iOther ipayables i(3382, i3383, i3384, i3386).
 When ipaying isocial insurance, ihealth insurance, iunemployment insurance, ior
itrade iunion ifees, ithe ifollowing iaccounts ishall ibe irecorded: i
Dr i338 i– iOther ipayables i(3382, i3383, i3384, i3386).
Cr i111, i112, ietc. i
 When ipaying isocial insurance ito iemployees in icase iof isick ileave ior imaternity
ileave, ietc., ithe ifollowing iaccounts ishall ibe irecorded: i
Dr i338 i– iOther ipayables i(3383).
Cr i334 i– iPayables ito iemployees.
 When ispending itrade iunion ifees iat iunits, ithe ifollowing iaccounts ishall ibe
irecorded: i
Dr i338 i– iOther ipayables i(3382).
Cr i111, i112, ietc. i
 When ireceiving icompensation ifor ioverspending itrade iunion ifees, ithe
ifollowing iaccounts ishall ibe irecorded: i
Dr i111, i112.
Cr i338 i– iOther ipayables i(3382).
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3CHAPTER 3: EVALUATIONS AND
RECOMMENDATIONS ON ACCOUNTING SYSTEM
IN HUNG YEN VIET DUC PLASTIC JOINT STOCK
COMPANY
3.1 Evaluation of accounting organization in Hung Yen Viet Duc Plastic Joint
Stock Company
3.1.1. Achievements
Company’s operation and management
A company's accounting system is often organized in accordance with each
account's professional credentials, competency, and work needs. The accounting
department is in charge of all accounting-related activities inside the company under
the centralized accounting apparatus. The But Thap Company's accounting structure
is designed as a concentration, and the General Directions Board and Chief
Accountant jointly oversee the company's accounting procedure. In order for the
accounting system to function properly, it is also planned to teach staff members and
provide chances for them to share their knowledge and experience.
The corporation's accounting division used the regular enumeration technique
to track products and capital types and the bookkeeping method to handle the
accounts. As a consequence, accounting data is reviewed and processed promptly in
order to keep accounting procedures consistent.
Every day, employees in the accounting department make every effort to
follow all rules that apply to the entire business as well as those inside the accounting
department.
Operation of accounting department
Firstly, Hung Yen Viet Duc Plastic JSC's accounting department is organized
in a centralized structure, ensuring that accountants develop their roles and capacities,
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facilitate the division of labor, and specialize in accounting. The centralized
accounting model has created favorable conditions for inspection and professional
direction, ensuring the chief accountant's centralized and unified direction as well as
the CEO's timely direction. Control points are reasonably set up to help decrease the
risks of the overall system.
Secondly, all the accountants in the accounting department are relatively
experienced, competent, and have a high sense of responsibility. Each accountant's tasks
are clearly laid out, ensuring that all necessary tasks are completed on a timely basis.
Thirdly, the accounting department is equipped with a computer system with
an internal network connection. Therefore, accounting information is ensured to be
updated accurately and promptly.
3.1.2. Limitations
A notable constraint within Hung Yen Viet Duc Plastic JSC is that some
accountants are concurrently tasked with dual roles. For instance, an accountant
might simultaneously handle responsibilities related to banking and taxation.
Juggling multiple roles can potentially strain the workforce, particularly when
managing numerous tasks concurrently. As the company's pace of development
accelerates, this practice may result in compromised effectiveness and reduced
efficiency for those tasked with multiple responsibilities.
3.1.3. Recommendations
Fistly, focusing on the company's human resources is imperative. There should
be a concerted effort to enhance both the quantity and caliber of the accounting
workforce. Tailoring the expansion of the accounting team to match the company's
growth is vital. Ideally, each accounting process should be entrusted to a dedicated
accountant, even though multifunctional employees might offer cost savings in
certain aspects. This approach aims to alleviate the workload for staff, effectively
mitigating the risk of human errors.
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Secondly, idue ito ithe ispecial icharacteristics iof ithe icasting ibusiness, ithe itraining
iprograms ifor inew iaccountants iare ialso iimportant. iNew iaccountants ishould
iunderstand ithe icompany's iproduction iprocess, inature iof ithe iproduct, imaterials,
imachinery, iequipment, ietc. i i
3.2 iEvaluation iof iaccounting isystem iin iHung iYen iViet iDuc iPlastic iJoint iStock
iCompany
3.2.1. Achievements
The iHung iYen iViet iDuc iPlastic iJSC’s iaccounting iwork iis idesigned iand
iimplemented iin ia irelatively iscientific iand irational imanner. iAccounting iprocedures
iare isuitable ifor ithe isize iand icharacteristics iof ithe icompany's iproduction iand ibusiness
iactivities. iSystems iof iaccounts, idocuments, iand ibooks icomply iwith ithe iVietnamese
iaccounting istandard iand iCircular i200/2014/TT-BTC iissued iby ithe iMinistry iof
iFinance.
Application iof iaccounts isystem
Regarding ithe iapplication iof ithe iaccounts isystem, ithe icompany iapplies ithe
iaccounts isystem istipulated iin iCircular i200/2014/TT-BTC iin ia iflexible iand ireasonable
imanner iin iaccordance iwith ithe icharacteristics iand iconditions iof ia iproduction
ienterprise. iAccounts iare ispecified iaccording ito idifferent icriteria ifor imanagement
ipurposes. iFor iexample, iaccount i331 iis idetailed iat ilevel i2 ito itrack ithe icompany's
ipayables ifor ieach ispecific isupplier.
Application iof iaccounting idocuments iand iaccounting ibooks
The iHung iYen iViet iDuc iPlastic iJSC’s iaccounting idocumentation isystem iis
iapplied iin iaccordance iwith ithe icontent iand irequirements istated iin ithe iLaw ion
iAccounting idated iNovember i20, i2015 iand iDecree iNo. i174/2016/ND-CP idated
iDecember i30, i2016 ion i"Elaboration iof isome iArticles iof ithe iLaw ion iAccounting". iIn
iaddition, iaccounting idocuments iare iclassified ibased ion ieach iaccounting iprocedure.
iFor iexample, ipayroll iaccounting ihas iaccounting idocuments iincluding imonthly
63
iemployee itimesheets i iemployee itimesheets ifor ipremium ihours i ipay islips i ipay islips
ifor ipremium ihours i isalary ireduction ilists i ietc.
Hung iYen iViet iDuc iPlastic iJSC iapplies ithe iGeneral iJournal isystem, iwhich iis
irelatively isuitable ifor ithe iscale iof ioperation, iorganizational iand imanagerial
icharacteristics, iinformation ineeds, iand ifacilities iof ithe icompany. iThe iGeneral iJournal
isystem isets iup isimple itemplates iof iaccounting ibooks, iwhich iis iconvenient ifor
iexamining iand icomparing ieach itransaction iand icreating ia ifavorable icondition ifor ithe
icompany iin ia icomputerized iaccounting ienvironment. iOpening idetailed ibooks i(subledgers) iassists ithe icompany ito ikeep itrack iof icosts iand isales imore iconveniently.
Application of advanced accounting software
In recent times, the accounting department at Hung Yen Viet Duc Plastic JSC
has embraced technological advancements by integrating the MISA Accounting
software into their information system. The utilization of this software streamlines
manual accounting processes, alleviating the workload, enhancing accuracy checks,
minimizing calculation errors during data entry, saving time, and ultimately
augmenting overall operational efficiency.
Application of accounting reports
In terms of accounting reports, Hung Yen Viet Duc Plastic JSC employs two
reporting systems: financial statements and management reports. The company
ensures the timely and accurate preparation and submission of financial statements to
the relevant regulatory bodies. Additionally, management reports are generated on a
monthly, quarterly, and annual basis to cater to the requirements of the Board of
Directors (BOD) and the Chief Executive Officer (CEO) in steering the business
operations.
Accounting for raw materials
Accounting for raw materials in Thang Loi Limited Company is carried out
using the perpetual inventory method. According to this method, the company's raw
materials are tracked and accounted for clearly and specifically for each type of
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material, creating favorable conditions for cost accounting. In addition, it allows the
company to grasp the inventory situation at all times without having to wait until the
inventory data from counting at the end of the month. As a result, the company can
proactively plan to purchase and use materials to ensure production and business
activities.
Accounting for cash
Accounting for cash is properly organized, timely, and comprehensively
records transactions related to cash. The system of accounts used to account for cash
is fully compliant with the regulations and detailed for each type of cash, which
allows the management to capture the specific and detailed figures of cash and make
accurate and reasonable decisions. The re-evaluation of foreign currency balances at
the reporting time is carried out sufficiently and accurately.
Accounting for payroll
In general, the Hung Yen Viet Duc Plastic JSC’s accounting for payroll is
relatively tight and consistent with its conditions. The company applies the time rate
system to all two labor objects, which are direct labor and indirect labor, as
management officers. This way of paying employees guarantees them a certain
amount of income during their working time. They do not have to run after the
number of products, so they have more time to create, accumulate experience, and
invest in the quality of work. In addition, the accounting work for this method is
simple, easy to do, and easy to understand.
3.2.2. Limitations
Application of accounting documents
Firstly, the accounting document approval procedure still takes a long time.
Secondly, the preservation of accounting documents has not received enough
attention.
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Accounting for raw materials
The parallel method for detailed accounting for raw materials requires a lot of
time to record, which leads to huge recording workloads, especially for companies that
own various types of materials. This also leads to easy duplications, the possibility of
errors, and inaccurate information being provided to users during this period. The
application of the parallel method is perfect for small and medium-sized companies
whose materials are not diversified and whose accountants are less skillful.
Accounting for payroll
The time rate system sometimes does not really tie between the employees’
wages and their working results. This shows that the inaccuracy and fairness of this
method of paying employees may not be guaranteed.
Accounting for cash
In general, there are no significant shortcomings in the company’s accounting
for cash.
3.2.3. Recommendations
Drawing from the assessment detailed earlier, and with the aim of enhancing the
efficiency and efficacy of the accounting organization at Hung Yen Viet Duc Plastic JSC
while mitigating the identified limitations, the subsequent recommendations are put forth:
Firstly, to prevent any delays in the accounting process, the company should
establish a maximum time frame for making and approving accounting documents.
Attribution of responsibility and disciplinary actions should be put in place when
accounting delays that have negative impacts occur.
Secondly, instead of the parallel method, Hung Yen Viet Duc Plastic JSC
should consider the balance book method, which can avoid the repetition of recording
jobs by storekeepers and other accountants. Moreover, it reduces the recording jobs,
which is more suitable for big companies in the construction field and owning various
types of materials..
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Thirdly, the Hung Yen Viet Duc Plastic JSC's raw materials are very diverse,
of many types, and have different properties. Therefore, for good management and
accurate accounting for materials, it is necessary to classify and make a material code
list. In this list, materials are divided into categories or groups, and they are coded
with numbers (which can be combined with letters) to replace their names and
specifications. This code is then used uniformly throughout the enterprise. The
making of the material code list must be closely coordinated between functional
departments to ensure scientific, reasonable, and management requirements.
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CONCLUSION
During my internship at Hung Yen Viet Duc Plastic JSC, I had the valuable
opportunity to apply the theoretical knowledge I gained in university to practical
accounting tasks. This experience deepened my understanding of Vietnamese
accounting standards and procedures, particularly in the context of a productionoriented enterprise. With dedication, hard work, and the generous guidance from my
supervisor and the experienced accountants in the accounting department, I am
pleased to present this internship report on accounting.
Within this report's scope, I've strived to provide an honest depiction of the
current state of the company's accounting organization and systems based on the
provided information. I've also taken the liberty to highlight both strengths and
limitations while suggesting potential improvements for the company's management
and accounting operations.
Given my limited technical and practical knowledge, I acknowledge that this
report may contain errors and imperfections. I eagerly anticipate receiving feedback
from my supervisor and the proficient accountants in the accounting department at
Hung Yen Viet Duc Plastic JSC, as their insights will greatly enhance the quality of
this report.
Once again, I sincerely thank Assoc. Prof. Dr. Tran Trung Tuan for invaluable
guidance throughout the completion of this internship report on accounting.
Additionally, I extend my appreciation to Ms. Nguyen Thi Minh Nguyet and the
entire accounting team at Hung Yen Viet Duc Plastic JSC for their invaluable support
during my internship period.
Sincerely thanks!
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REFERENCES
1.
Accounting documents from Hung Yen Viet Duc Plastic JSC‘s accounting
department.
2.
Circular 200/2014/TT-BTC issued on December 22th 2014 by Ministry of
Finance
3.
Kieso, D. E., Weygandt, J. J., & Warfield, T. D. (2019). Intermediate accounting
17th edition. John Wiley & Sons.
4.
Prof. Loan, D. T. (2013). Financial Accounting in Businesses. Hanoi: National
Economics University Press.
5.
Vietnamese Accounting Standard
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