NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ACCOUNTING AND AUDITING BACHELOR THESIS Accounting TOPIC: ACCOUNTING FOR REVENUES AT NHAN BINH JOINT STOCK COMPANY TRAN THI TRANG NHUNG HANOI, 2023 NATIONAL ECONOMICS UNIVERSITY SCHOOL OF ACCOUNTING AND AUDITING BACHELOR THESIS TOPIC: ACCOUNTING FOR REVENUES AT NHAN BINH JOINT STOCK COMPANY Student name : Tran Thi Trang Nhung Speciality : Accounting Student ID : 11194093 Class : Accounting CFAB K61 Supervisor : Assoc. Nguyen Phuong Hoa HANOI, 2023 STATUTORY DECLARATION I herewith formally declare that I myself have written the submitted Bachelor’s Thesis independently. I did not use any outside support except for the quoted literature and other sources mentioned at the end of this paper. I clearly marked and separately listed all the time literature and all other sources which I employed producing this academic work, either literally or in content.
Hanoi, May 22rd 2023 i TABLES OF CONTENTS STATUTORY DECLARATION. i TABLES OF CONTENTS. ii LIST OF ABBREVIATIONS. iv LIST OF TABLES.
v LIST OF PICTURE. v LIST OF FIGURES. 1 CHAPTER 1: CHARACTERISTICS OF REVENUES, ORGANIZING AND MANAGING REVENUES AT NHAN BINH JOINT STOCK COMPANY. Characteristics of revenues at Nhan Binh Joint Stock Company.
Overview of business activities of the company. Features of the company’s revenues. Revenues management at Nhan Binh Joint Stock Company. 12 CHAPTER 2: PRACTICE OF ACCOUNTING FOR REVENUES AT NHAN BINH JOINT STOCK COMPANY.
Accounting for sales and service revenues at Nhan Binh Joint Stock Company. Accounting documents and procedures. Detailed accounting for sales and service revenue. General Accounting for sales and service revenue at Nhan Binh Joint Stock Company.
Accounting for financial revenue. Accounting documents and procedures. Detailed accounting for financial revenue. General Accounting for financial revenue at Nhan Binh Joint Stock Company.
Accounting for other revenue. Accounting documents and procedures. Detailed accounting for other revenue. General Accounting for other revenue at Nhan Binh Joint Stock Company.
82 ii CHAPTER 3: ASSESSMENTS AND RECOMMENDATIONS FOR IMPROVING ACCOUNTING FOR REVENUES AT NHAN BINH JOINT STOCK COMPANY. Assessments of accounting for revenues at Nhan Binh Joint Stock Company. Weaknesses and causes. Recommendations for improving of accounting for revenues at Nhan Binh Joint Stock Company.
iii LIST OF ABBREVIATIONS JSC Joint Stock Company VAS Vietnam Accounting Standards VAT Value added tax Co., Ltd Company Limited VND Vietnam Dong AR Account Receivables iv LIST OF TABLES Table 1.1: Representative construction works of Nhan Binh JSC from 2018 to 2022 .2: Revenue summary of Nhan Binh JSC in 2022 .3: Construction revenue’s structure base on geographical location (extracted).4: Revenue from other activities .1: Summarized calculation of valuation of completed work – Settlement payment record for the 50th time of Hospital 700G (extracted) dated on September 29th, 2022 .2: Summarized calculation of valuation of completed work – Settlement payment record for the 50th time of Hospital 700G (extracted) dated on September 29th, 2022. 32 LIST OF PICTURE Picture 1.1: Dong Thap General Hospital. 7 v LIST OF FIGURES Figure 2.1: Part of Dong Thap General Hospital’s Bid Price Summary (extracted) .2: Provincial Health Department of Dong Thap’s notification of award .3: Contract for construction and purchase of goods No.5: Acceptance certificate of Dong Thap General Hospital Project .6: VAT invoice for one part of Project of General Hospital .7: VAT invoice to record decrease contract value .8: Economic contract for selling steel (extracted) .9: Goods receipt note .10: Confirmation of public debt .11: VAT invoice for selling steels .12: Detailed accounting book of Account 5112 – Product V00172.00: Dong Thap General Hospital (extracted) .13: Detailed accounting book of Account 5112 (extracted) .14: Detailed accounting book of Account 521 (extracted) .15: Detailed accounting book of Account 5111 (extracted) .16: Detailed accounting book of Account 511 (extracted) .17: Bookkeeping process in the form of the voucher register .18: Summary table of vouchers of the same type (extracted) .19: Summary table of vouchers of the same type (extracted) .20: Voucher register book .21: General ledger of Account 511 (extracted) .22: General ledger of Account 521 (extracted) .23: Term deposit agreement .24: BIDV’s credit note.25: Detailed accounting book of Account 5151 (extracted) .26: Summary table of voucher register of the same type (extracted) .27: Voucher register book .28: General ledger of Account 515 (extracted) .29: Decision on liquidation of fixed asset.30: Minute of BOD meeting on liquidation of fixed asset (extracted) .31: Contract of car disposing (extracted) .32: Minute of handover and acceptance (extracted) .33: VAT invoice for disposing car .34: Credit note for debt payment .35: Credit note related to recovering of bad debts .36: Detailed accounting book of Account 7112 .37: Detailed accounting book of Account 7111 .38: Detailed accounting book of Account 7113 .39: Detailed accounting book of Account 711 .40: Summary table of voucher registers of the same type – for gain (2) and (3) (extracted) .41: Summary table of voucher registers of the same type – for gain (1) (extracted).42: Voucher register book .43: General ledger of Account 711. 86 vii INTRODUCTION A developed country means that it has to meet the requirements of infrastructure.
And to achieve that, there is no denying the construction industry. This is the field that helps to establish the necessary infrastructure for each unit, organization and society as a whole. Only when building technical development, other fields in the new economy have many favorable conditions for development. It can be said that the construction industry has always played a particularly important role.
It is the determining factor of the size and technical level of the economy. Besides, it also holds the role of the most effective economic regulation tool. Therefore, there are more and more companies operating in construction and installation field these days. However, the problem is quickly figured out, not many companies can exist sustainably for a long time and achieve considerable successes.
To be able to survive and develop sustainably, businesses need to pay attention and focus on economic benefits and final profits. In the new mechanism of the economy, with the operation of many economic sectors, the independence and autonomy in enterprises is higher and higher, each enterprise must be dynamic and creative in business, must be responsible for its own business results, preserving capital and doing a profitable business. In order to achieve that, it is important for enterprises to follow and monitor the status and fluctuation of their revenue to make prompt business decisions. It can be said that revenue is the first criteria that the company should focus on if they target to increase their profit.
Therefore, in addition to general management measures, a reasonable organization of revenue accounting of business results is very necessary to help businesses have enough timely and accurate information to make their right business decision. Recognizing the importance of organizing revenue accounting work applying the theories studied at the school, integrating with the actual observations from the work as an accounting intern at Nhan Binh Joint Stock Company, I chose the topic: Accounting For Revenues At Nhan Binh Joint Stock Company to study for my specialized thematic practice. Studying this topic, this thesis aims to understand and describe accounting practice and procedures in relation to all kinds of revenue comprehensively, then 1 initially assess their strengths and weaknesses, and finally suggest recommendation to solve the current problems and improve the company’s accounting works of revenue. The essay reflects the actual accounting practice for revenue, including processes and documents, of Nhan Binh JSC for the financial year of 2022.
The bachelor thesis on the topic: Accounting For Revenues At Nhan Binh Joint Stock Company utilizes a variety of research methods to be studied and written. These research methods include reviewing the accounting documents of the entity such as economic contracts, financial policies, … , observation of the company’s documents rotation, interview of the accountants to know more about accounting treatments, nature of the transactions and current difficulties that the company is facing. Based on the data and information obtained from the above processes, analytics stages will be conducted to deeply understand the unit’s accounting information system, its circulation and procedures. In addition to the introduction and conclusion, the thesis consists of 3 chapters: Chapter 1: Characteristics of revenues, organizing and managing revenues at Nhan Binh Joint Stock Company Chapter 2: Practice of accounting for revenues at Nhan Binh Joint Stock Company.
Chapter 3: Assessments and recommendations for improving accounting for revenues at Nhan Binh Joint Stock Company. I would like to thank the staffs of Nhan Binh Joint Stock Company, especially the finance and accounting departments of the company for creating conditions and helping me during my internship. I sincerely thank Assoc. Nguyen Phuong Hoa who helped me to complete this internship thesis comprehensively.
2 CHAPTER 1: CHARACTERISTICS OF REVENUES, ORGANIZING AND MANAGING REVENUES AT NHAN BINH JOINT STOCK COMPANY 1. Characteristics of revenues at Nhan Binh Joint Stock Company 1. Overview of business activities of the company Established in 2001, Nhan Binh Co., Ltd - now Nhan Binh Joint Stock Company has gradually developed and become one of the reputable construction and installation enterprises in the market. The company's staffs are construction engineers, bachelors of economics, finance and skilled workers with many years of experience who have worked at reputable construction companies and corporations such as: Bridge Company Nam Ha, Vinaconex Corporation, Song Da Construction Corporation, Song Hong Construction Joint Stock Company.
The company’s main business lines focus on two areas: Building civil, industrial, transport, irrigation, cultural works and Investment in construction works in the form of Build – Transfer, Build – Operate – Transfer contract. In term of infrastructure building, most of the construction projects are civil works, transportation and irrigation works, cultural works, technical infrastructure of urban areas, industrial parks and factories. The works and projects constructed by the Company are qualified, technical, artistic and highly appreciated by the Investor. A number of typical projects in the provinces of the South Red River Delta region have been voted for and awarded the Golden Product - Service Award.
The quality policy - "Quality is the goal and motivation for the Company to exist and develop sustainably" is considered as the guideline for the Company's production and business activities. Therefore, the company always determines to bring customers the works that are lasting with time, always satisfying customer needs with quality, progress with the most suitable price. As an enterprise operating in the field of construction and installation, modern and specialized construction machinery and equipment is a factor that significantly affects the construction progress of works. In addition to constantly investing in technology, purchasing highly specialized construction equipment in the fields of transport, irrigation and civil, the company always accompanies with 3 reputable partners to purchase high quality and suitable plants and equipment.
That is the key criteria to ensure the value, quality and progress of the works. Currently, Nhan Binh Joint Stock Company only operates in domestic market. Nhan Binh serves construction works throughout the provinces from North to South Vietnam: Red River Delta: Nam Dinh, Thai Binh - North: Hanoi City, Bac Giang, Bac Ninh, Quang Ninh Central region: Da Nang, Quang Binh Southern region: Ho Chi Minh City, Dong Thap For the period from 2018 to 2022, the company has completed a variety of construction and installation projects and many other works are in progress and expected to be handed over in the year of 2023, 2024 and 2026. Some of the representative works of the company in the period of 2018-2022 are the followings: Table 1.1: Representative construction works of Nhan Binh JSC from 2018 to 2022 Contract Period Construction value Owner No.