Regulations on Accounting Contents of Account Type 111- Cash

Regulations on the content of Accounting for Account Type 111- Cash (illustration)

In the Accounting Regime promulgated together with Circular 42/2014/TT-NHNN, it is stipulated that accounting for account type 111- Cash must be performed according to the following regulations:

1. When depositing or withdrawing cash, there must be receipts, payment vouchers with sufficient signatures of the recipient, the deliverer, and the person authorizing the deposit/withdrawal according to the regulations of cash receipt and payment transaction policies. Some special cases must have attached deposit/withdraw orders.

2. The cash accountant is responsible for maintaining a cash accounting ledger, continuously recording daily transactions of cash receipts, payments, deposits, and withdrawals in sequence and calculating the cash balance at all times.

3. The cashier is responsible for managing and depositing/withdrawing cash. The cashier must conduct daily physical cash counts and compare them with the numbers in the cash ledger and cash accounting ledger. In case of discrepancies, the accountant and cashier must recheck to determine the cause and recommend solutions for the discrepancies.

4. In cases where gold or foreign currencies are deposited, the accountant must convert foreign currencies and gold into VND according to the regulations of the Ministry of Finance on recognising, evaluating, and handling foreign exchange differences in enterprises for accounting purposes.

When withdrawing foreign currency and gold, these must be converted into VND using the exchange rate reflected in the accounting ledger of account 111 by the weighted average method.

Cash in foreign currencies and gold shall be detailedly accounted according to each original currency on Account 007 - Various Currencies and Gold.

Debit side records:

- Cash, foreign currencies, gold deposits.- Surplus cash, foreign currencies, gold discovered during physical cash counts.- Increase in exchange rate differences due to revaluation of foreign currency and gold balances at the end of the period (for cash in foreign currencies and gold).

Credit side records:

- Cash, foreign currencies, gold withdrawals.- Cash, foreign currencies, gold shortages discovered during physical cash counts.- Decrease in exchange rate differences due to revaluation of foreign currency and gold balances at the end of the period (for cash in foreign currencies and gold).

Debit balance:

- Cash, foreign currencies, gold remaining in the cash fund.

Detail accounting:

- Open one detailed account.

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

Ty Na

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