Accounting for Account 2331- Advances must comply with which regulations?

Accounting for Account 2331- Advances must comply with which regulations? (illustrative photo)

In the Accounting Regime issued together with Circular 42/2014/TT-NHNN, Account 2331- Advances is used to reflect the advances provided by VAMC to employees in the unit and the payment status of those advances. Accounting for this account must be done as follows:

1. An advance is a sum of money or materials provided by VAMC to the recipient to carry out a business task or resolve an approved work. The advance recipient must be an employee working at VAMC. For regular advance recipients from departments such as materials supply, administration, they must be designated in writing by the General Director.

2. The advance recipient is responsible to VAMC for the amount received and may only use the advance for the correct purpose and content of the approved work. If the advance is not used or is not fully utilized, the remaining amount must be returned to the fund. The advance recipient cannot transfer the advance to another person for use.

Upon completion or conclusion of the assigned task, the advance recipient must prepare an advance payment statement accompanied by original documents to settle fully and definitively each advance, detailing the advances received, used, and any discrepancies (if any). Unused advances must be returned to the fund. In case of expenditures exceeding the received advance, VAMC will supplement the shortfall amount.

3. Advances from the previous period must be fully settled before new advances can be provided for the next period.

4. The accounting department must maintain detailed accounting records to monitor each advance recipient and fully record the receipt and settlement of each advance.

Debit: Amount of money, materials advanced to employees.

Credit:

- Settled advances.- Unused advance funds returned to the fund or offset against salary.- Unused materials returned to inventory.

Debit Balance: Unsettled advance amount.

Detailed accounting: Open detailed accounts for each advance recipient.

Details can be found in Circular 42/2014/TT-NHNN effective from February 2, 2015.

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