When selling products, goods or providing services for immediate cash using cash in bank in Vietnam, which accounts shall be recorded?

When selling products, goods or providing services for immediate cash using cash in bank in Vietnam, which accounts shall be recorded?

Pursuant to Clause 3, Article 13 of Circular 200/2014/TT-BTC, it is stipulated that when selling goods with immediate payment received via bank transfer, accountants should record the revenue and journal entry as follows:

- For products, goods, services, or investment real estates subject to indirect taxes (VAT, special consumption tax, export tax, environmental protection tax), accountants should reflect sales revenue and service provision at the selling price excluding tax, and separately account for the payable indirect taxes by type right when recognizing revenue (including VAT payable under the direct method), record:

Debit Account 112 - Cash in bank (total payment amount)

Credit Account 511 - Sales revenue and service provision (price excluding tax)

Credit Account 333 - Taxes and obligations to the State.

- In cases where it is not immediately possible to separate payable taxes, accountants recognize revenue including the taxes to be paid. Periodically, accountants determine the payable tax obligations and record a reduction in revenue, record:

Debit Account 511 - Sales revenue and service provision

Credit Account 333 - Taxes and obligations to the State.

When selling products, goods or providing services for immediate cash using cash in bank in Vietnam, which accounts shall be recorded? (Image from the Internet)

What is the structure and content of Account 112 - Cash in bank?

According to Clause 2, Article 13 of Circular 200/2014/TT-BTC, the structure and content of reflecting Account 112 - Cash in bank are as follows:

Debit Side:

- Amounts of Vietnamese Dong, foreign currencies, and monetary gold deposited into banks;

- Exchange rate differences due to revaluation of foreign currency balances at the reporting date (in the case that the exchange rate of foreign currency increases compared to Vietnamese Dong).

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

Credit Side:

- Amounts of Vietnamese Dong, foreign currencies, and monetary gold withdrawn from banks;

- Exchange rate differences due to revaluation of foreign currency balances at the end of the period (in the case that the exchange rate of foreign currency decreases compared to Vietnamese Dong).

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

Debit Balance:

The balance of Vietnamese Dong, foreign currencies, and monetary gold currently deposited at the bank at the reporting date.

Account 112 - Cash in bank, has 3 sub-accounts:

- Account 1121 - Vietnamese Dong: Reflects the amounts deposited, withdrawn, and currently deposited at the Bank in Vietnamese Dong.

- Account 1122 - Foreign Currency: Reflects the amounts deposited, withdrawn, and currently deposited at the Bank in foreign currencies converted into Vietnamese Dong.

- Account 1123 - Monetary Gold: Reflects the changes and value of monetary gold of the enterprise deposited in the Bank at the reporting date.

What are the accounting principles for Account 112 in Vietnam?

Based on Article 13 of Circular 200/2014/TT-BTC, amended by Clause 4, Article 1 of Circular 53/2016/TT-BTC, the accounting principles for Account 112 are as follows:

Account 112 is used to reflect the current amount and changes in non-term deposits at the Bank of the enterprise. The basis for recording on Account 112 "Cash in bank" is the credit advice, debit advice, or account statement from the Bank attached with the original documents (payment order, collection order, transfer check, certified check,...).

- When receiving documents from the Bank, accountants must check and compare them with original documents attached. If there is a discrepancy between the figures on the company's accounting books, the figures in the original documents, and the figures on the Bank's documents, the enterprise must notify the Bank to reconcile, verify, and process promptly. At the end of the month, if the cause of the discrepancy cannot be determined, the accountant records according to the Bank's figures on the debit advice, credit advice, or statement. The discrepancy (if any) is recorded on the Debit side of Account 138 "Other receivables" (1388) (if the company's figures are greater than the Bank's figures) or on the Credit side of Account 338 "Other payables" (3388) (if the company's figures are smaller than the Bank's figures). In the following month, continue to check, compare, and determine the cause to adjust the recorded figures.

- Enterprises with dependent organizations or units that do not organize their own accounting can open specialized collection, disbursement accounts or open appropriate payment accounts for convenient transactions and payments. Accountants must keep detailed records according to each type of deposit (Vietnamese Dong, foreign currencies of various types).

- Detailed accounting must be organized for deposits according to each account at the Bank to facilitate inspection and comparison.

- Bank overdrafts should not be shown as negative on the bank deposit account but are reflected similarly to bank loans.

- When transactions in foreign currency occur, accountants must convert foreign currency into Vietnamese Dong according to the principle:

+ Debit Account 1122 applies the actual transaction exchange rate. In case of withdrawing foreign currency cash funds deposited into the Bank, it must be converted into Vietnamese Dong according to the accounting book exchange rate of account 1112.

+ Credit Account 1122 applies the moving weighted average exchange rate or the actual transaction exchange rate.

Determining the actual transaction exchange rate is performed according to the guidance on account 413 - Exchange rate differences and related accounts.

- Monetary gold reflected in this account is gold used with the functions of value storage, not including gold classified as inventory used for the purpose of being material for production or goods for sale. The management and use of monetary gold must comply with current legal regulations.

- At all times when preparing Financial Statements as required by law, enterprises must revaluate foreign currency and monetary gold balances according to the principles:

+ The actual transaction exchange rate applied when revaluating foreign currency bank deposit balances is the buying exchange rate of the commercial bank where the enterprise opens its foreign currency account at the time of preparing the Financial Statements. In case the enterprise has multiple foreign currency accounts at different banks and the buying rates of these banks have no significant differences, it may choose the buying rate of one of the banks where the enterprise opens a foreign currency account as the basis for revaluation.

+ Monetary gold is revalued according to the purchase price in the domestic market at the time of preparing the Financial Statements. The purchase price in the domestic market is the buying price announced by the State Bank. In the event that the State Bank does not announce the gold buying price, it is calculated based on the buying price announced by entities authorized to trade gold as per the law.