BANKING ACADEMY OF VIETNAM ADVANCED PROGRAM GRADUATION THESIS Major: Accounting TOPIC: ACCOUNTING FOR INCOME, EXPENSE AND DETERMINING PROFIT OR LOSS At Hanoi Delicacy Hotel & Tourism Company Limited Student name: Phan Thuy Dung Class: K20CLCI Course: 2017 – 2021 Student’s ID: 20A4020128 Instructor: MintA. Nguyen Thi Thanh Mai HANOI – 2021 ACKNOWLEDGEMENTS First and foremost, I would like to express my sincere thanks to all teachers in Banking Academy, especially the faculty of Accounting and Auditing and Advanced Program for their passion for conveying knowledge to students. Valuable knowledge that I have learned in nearly 4 years not only helps me to achieve good results in my internship period but also helps me get more confident on the way to become an accountant. Especially, I would like to express my endless thanks and gratefulness to my instructor – MintA.
Nguyen Thi Thanh Mai for guiding and supporting me to complete my Graduation Thesis. Her constructive comments and encouragement have significantly improved my work. Also, I would like to express my sincere gratitude to Hanoi Delicacy Hotel & Tourism Company Limited for supporting me a lot when I am in the internship period. Besides, I would like to give special thanks to Mrs.
Tran Thi Tan – chief accountant of the company who was willing to answer all questions about my thesis and provided me a lot of information about the company. Last but not least, I would like to express my deepest gratitude to my family and friends have always been a tremendous source of support and inspiration for me during this course. Thanks and best regards, i COMMITMENT I am Phan Thuy Dung, a student of K20CLCI, I hereby declare that my Graduation Thesis is my own research and that has not been submitted anywhere for any award. The data and results in the thesis are completely honest.
If there exist any frauds, I am totally responsible to Banking Academy. Hanoi, 18th May 2021 The author Phan Thuy Dung ii TABLE OF CONTENTS ACKNOWLEDGEMENTS. ii TABLE OF CONTENTS. iii LISTS OF ACRONYMS.
vi LIST OF TABLE AND ILLUSTRATION.1 CHAPTER 1: THEORETICAL BASIS FOR ACCOUNTING FOR INCOME, EXPENSE AND DETERMINING PROFIT OR LOSS. Overview for income, expense and determining profit or loss. Overview for income. Overview for expense.
Overview for determining profit or loss. Roles and duties of accounting for income, expense and determining profit or loss. The role of accounting for income, expense and determining profit or loss. The duty of accounting for income, expense and determining profit or loss.
Accounting for income, expense and determining profit or loss. Accounting for income. Accounting for expense. Accounting for determining profit or loss .33 iii CHAPTER 2: CURRENT ISSUES OF ACCOUNTING FOR INCOME, EXPENSE AND DETERMINING PROFIT OR LOSS AT HANOI DELICACY HOTEL & TOURISM COMPANY LIMITED.
Overview of Hanoi Delicacy Hotel & Tourism Co. The process of formation and development. Duties and functions of the company. The financial situation and business results of the Company.
Organizing accounting work at Hanoi Delicacy Central Hotel & Spa. Organization structure of accounting department at Hanoi Delicacy Hotel & Tourism Co. Duties and functions of accounting department. Current issues of accounting for income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Co.
Current issues of accounting for income at the company. Current issues of accounting for expense at the company .3 Current issues of accounting for determining profit or loss. Evaluation on accounting for income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Co. Limitations and reason .74 iv CHAPTER 3: SOLUTIONS FOR COMPLETION OF ACCOUNTING FOR INCOME, EXPENSE AND DETERMINING PROFIT OR LOSS AT HANOI DELICACY HOTEL & TOURISM CO.
Solutions to complete accounting for income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Co. Development orientation of the company until 2025. The need for completion of accounting for income, expense and determining profit or loss. Orientation to complete accounting for income, expense and determining profit or loss.
Conditions for implementing solutions and recommendations. From Hanoi Delicacy Hotel & Tourism Co. From the authorities.87 v LISTS OF ACRONYMS COGS Cost of goods sold G&A General and Administrative SCT Special consumption tax VAS Vietnam Accounting Standards VAT Value added tax CO., LTD Company Limited WAC Weighted Average Cost FIFO First in, first out vi LIST OF TABLE AND ILLUSTRATION Figure 1. 1: Accounting entry for revenue from goods sale and provision of services applying deductible VAT method.
2: Accounting entry for revenue from goods sale and provision of services applying export tax, excise tax and environment tax. 3: Accounting entry for revenue deduction. 4: Accounting entry for financial incomes. 5: Accounting entry for other income.
6: Accounting entry for COGS applying perpetual inventory method. 7: Accounting entry for COGS applying periodical inventory method. 8: Accounting entry for selling expenses. 9: Accounting entry for general & administrative expenses.
10: Accounting entry for financial expenses. 11: Accounting entry for CIT expense. 12: Accounting entry for other expenses. 13: Accounting entry for determine business performance.
1: Organization chart of the Company. 2: Organization structure of accounting department. 3: Procedures for recording accounting books in the. 3: General Ledger of Account 511.
5: General Ledger of Account 515. 6: General Ledger of Account 711. 8: General Ledger of Account 627. 9: General Ledger of Account 632.
10: General Ledger of Account 642. 11: General Ledger of Account 635. 12: General Ledger of Account 911. Rationale Facing the Coronavirus epidemic, the economy and the world are seriously affected.
This is also the reason why domestic and foreign businesses are facing many difficulties. In this tough period, one of the factors that investors, business owners are concerned about is profit. Regardless of the time or circumstances, maximizing profit is always the highest priority of the business. Especially for such a difficult situation, businesses would have to spend a lot of selling expense and operate to generate income to overcome the crisis, profit maximization is the effective management of income and expense, this is also the desire of administrators and investors.
Enterprises must determine the best investment direction, production scale, demand, and ability of manufacturing conditions to make the best decision. With the ultimate goal of maximizing profits, businesses need to capture the necessary and accurate information and data from the accounting department to help managers have an accurate view of the business performance. From there, making appropriate management decisions to improve the business management efficiency and making finance public and attract investors. Two basic criteria: income and expense give them an overview of the determining profit or loss of the company, based on that, they make reasonable adjustments to improve operational efficiency and closer to profit maximization.
In particular, businesses in the field of tourism and services with the development of the tourism industry have created conditions for a system of restaurants and hotels with high quality and international standards to grow, hence the more competitive it is. Therefore, businesses in the field of tourism, services in general, and Hanoi Delicacy Central Hotel & Spa, in particular, are facing with are facing very fierce competition. To do business effectively, the hotel needs to have appropriate measures and policies to help the hotel increase profitability, reduce 1 expense, and improve competitiveness. To assert themselves in the market, promoting the accounting of income and expense as well as determining profit or loss is the problem that has practical significance.
This does not only help managers to come up with measures attracting customers to bring high economic efficiency to the business but also helps businesses stand firmly in the competitive market. From the importance mentioned above, along with the knowledge I gained during the internship in the accounting department of Hanoi Delicacy Central Hotel & Spa shows that accounting for income, expense here still have some problems affecting the quality of activities, with the knowledge learned in school and desire to contribute to improving the business performance, I had chosen the topic: "Accounting of income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Company Limited” as the subject for my graduation thesis. Research objectives Systemize the basic theory of accounting for income, expense and determining profit or loss in the business. Analyzing, assessing the current issue of accounting for income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Company Limited to provide and promote the positive aspects and limit the negative sides in the accounting organization at the enterprise.
Proposing some solutions to complete accounting for income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Company Limited to help the business make management decisions timely, optimal, and effective. Objectives The topic focuses on accounting for revenue and revenue deductions, on that basis determine net sales, the process of accounting for expense to determine cost of sale, service, G&A expenses,. in the company. Thereby find solutions to improve accounting for income, expense and determining profit or loss at Hanoi Delicacy Central Hotel & Spa.
Scope of the study 2 Overview of the situation of business performance of the hotel in 2 years 2019- 2020. Research about the processes of accounting for income, expense and determining profit or loss of the hotel in 2020. Using data, accounting books on accounting for income, expense and determining profit or loss in the fourth quarter of 2020. Some accounting documents were used in the first months of 2021, to illustrate and clarify the accounting for income, expense and determining profit or loss at Hanoi Delicacy Central Hotel & Spa.
Research method - Using different methods in economic science research such as: method of collecting data from the accounting department and related documents, comparison to analyze and classification of theoretical and practical questions to draw logical conclusions. - Direct observation and interview method: observing invoices and documents, observing the accounting staff's way of collecting and invoicing documents, combined with interviewing, asking them about how to collect, transfer and keep invoices and vouchers. Approach to the actual accounting work at the hotel, analyze the fluctuations, directly contact the accountant to find out about the cause. - Research method, document reference: find out information through financial statements, books, newspapers, internet,.
through which it is possible to visualize an overview of the topic as well as have a basis to collect necessary documents in the correct direction of the topic. Structure of the Thesis In addition to the introduction, conclusions, bibliographies and appendixes, the thesis consists of three main parts. Chapter 1: Theoretical basis for accounting for income, expense and determining profit or loss. 3 Chapter 2: Current issues of accounting for income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Company Limited.
Chapter 3: Solutions for completion of accounting for income, expense and determining profit or loss at Hanoi Delicacy Hotel & Tourism Company Limited. 4 CHAPTER 1: THEORETICAL BASIS FOR ACCOUNTING FOR INCOME, EXPENSE AND DETERMINING PROFIT OR LOSS 1. Overview for income, expense and determining profit or loss 1. Overview for income 1.
Definition According to VAS 14 – Revenue and other incomes: “Revenue is the total venue of economic benefits the enterprise receives in the accounting period, arising from its normal business and production activities, contributing to increasing equity capital”. Classification of revenue and revenue deductions a, Classification of revenue * Sale revenues: is the total amount obtained and will be obtained by the business from transactions and generating operations such as products, goods and services to customers including both surcharges and overtime charges (if any). - Goods sale: Selling products manufactured by the enterprises and bought-in goods.