What are regulations on structure and content of Account 111 - Cash according to Circular 200 of Vietnam?

What are regulations on structure and content of Account 111 - Cash according to Circular 200 of Vietnam?

According to the provisions in Clause 2, Article 12 of Circular 200/2014/TT-BTC, the structure and content of Account 111 - Cash is clearly defined as follows:

Debit Side:

- Cash, foreign currencies, monetary gold entered into the treasury;

- Excess cash, foreign currencies, monetary gold discovered in the treasury upon inspection;

- Exchange rate differences due to revaluation of foreign currency balances at the reporting date (in case of an increase in the foreign currency rate compared to the Vietnamese Dong);

- Revaluation differences of increased monetary gold at the reporting date.

Credit Side:

- Cash, foreign currencies, monetary gold withdrawn from the treasury;

- Deficient cash, foreign currencies, monetary gold discovered in the treasury upon inspection;

- Exchange rate differences due to revaluation of reported foreign currency balances (in case of a decrease in the foreign currency rate compared to the Vietnamese Dong);

- Revaluation differences of decreased monetary gold at the reporting date.

Debit Balance:

Cash, foreign currencies, monetary gold remaining in the treasury at the reporting date.

The Account 111 - Cash consists of 3 sub-accounts:

- Account 1111 - Vietnamese Dong: Reflects the inflow, outflow, and remaining cash in Vietnamese Dong in the cash fund.

- Account 1112 - Foreign Currency: Reflects the inflow, outflow, exchange rate differences, and foreign currency balances in the cash fund converted into Vietnamese Dong.

- Account 1113 - Monetary Gold: Reflects the changes and value of monetary gold in the enterprise's fund.

What are regulations on structure and content of Account 111 - Cash according to Circular 200 of Vietnam? (Image from the Internet)

Vietnam: When purchasing raw materials paying with cash and immediately using them for production, if input VAT is deductible, which accounts should be recorded?

Based on Clause 3, Article 12 of Circular 200/2014/TT-BTC, when purchasing raw materials paying with cash and immediately using them for production and business, if input VAT is deductible, record:

Debit Accounts 621, 623, 627, 641, 642,...

Debit Account 133 - Deductible VAT (1331)

Credit Account 111 - Cash.

If input VAT is not deductible, the accountant reflects the cost including VAT.

What are the accounting principles for Account 111 - Cash in Vietnam?

According to the provisions in Clause 1, Article 12 of Circular 200/2014/TT-BTC, amended by Clause 4, Article 1 of Circular 53/2016/TT-BTC as follows:

- This account is used to reflect the inflow, outflow, and remaining cash in the enterprise’s treasury, including Vietnamese Dong, foreign currencies, and monetary gold. Only actual cash, foreign currency, and monetary gold transactions are recorded in Account 111 "Cash." For cash received and immediately deposited into the bank (without passing through the enterprise's cash fund), it is not recorded on the Debit side of Account 111 "Cash" but on the Debit side of Account 113 "Cash in Transit."

- Cash deposits from other enterprises and individuals placed as collateral or deposits at the enterprise are managed and recorded as the enterprise's monetary assets.

- When receiving or withdrawing from the cash treasury, a receipt or payment voucher must be issued with signatures from the recipient, payer, and authorized person according to accounting document regulations. Some special cases may require an attached order for cash receipt or withdrawal.

- The cash fund accountant is responsible for opening a cash ledger, recording transactions daily in chronological order, and calculating the cash balance at all times.

- The treasurer is responsible for managing and supervising the cash fund. Daily, the treasurer must inventory the actual cash balance and reconcile it with the cash ledger and accounting records. Any discrepancies must be verified by the accountant and the treasurer to determine the causes and propose measures for resolution.

- For foreign currency transactions, accounting must convert foreign currency into Vietnamese Dong based on the principle:

+ Debit side of Account 1112 applies the actual transaction exchange rate. For withdrawals of foreign currency from banks to the cash fund, the accounting book exchange rate of Account 1122 is applied;

+ Credit side of Account 1112 applies the average moving weighted exchange rate or actual transaction exchange rate.

The determination of the actual transaction exchange rate is implemented according to the guidance on Account 413 - Exchange Rate Differences and related accounts.

- Monetary gold reflected in this account is gold used for value storage purposes, excluding gold classified as inventory used as raw materials for production or goods for sale. The management and use of monetary gold must comply with current legal regulations.

- At all times of preparing financial statements as prescribed by law, enterprises must revaluate foreign currency balances and monetary gold according to the principle:

+ The actual transaction exchange rate applied when revaluating foreign currency cash balances is the buying exchange rate from the commercial bank where the enterprise frequently transacts (chosen by the enterprise) at the time of financial statement preparation.

+ Monetary gold is revaluated based on domestic market purchase prices at the time of financial statement preparation. The domestic market purchase price is the price published by the State Bank of Vietnam. If the State Bank does not publish the gold purchase price, it is calculated based on the price published by units authorized to trade gold under the law.