Account 344- Deposit received

1.Accounting Principles

This account used for recording amounts enterprises received deposits of outside units and individuals to ensure for services related to business and production to be performed in compliance with the signed economic contract/ such as receiving deposits to ensure the performance of economic contracts, agency contracts, etc

Accountants received long-term deposits must monitor in detail each deposit received from every customer under each term and each type of currency. Deposits received payable with remaining term within 12 months are presented as short-term liabilities, accounts with a term of 12 months or more are presented as long-term liabilities.

c) Cases of receiving mortgaging and pledging in kind shall not be recorded in this account but monitored in notes to financial Statements.

c) If receiving deposits in foreign currency, accountants must monitor in detail the separate denomination of foreign currencies and convert into accounting monetary unit under the principles:

- At the time of receipt of deposit in foreign currency, accountants convert into accounting monetary units in accordance with the real exchange rate at the incurring time;

- When repaying deposit sum in foreign currency, accountants must convert at the real exchange rate of recording by name;

- When preparing the financial statements, accountants shall revaluate the sum received from deposit payable at real exchange rates at the time of reporting. The incurred exchange rate differences shall be recorded immediately in financial expenses or financial income.

2.Structure and contents of account 344 - Deposit received

Debit side: Refunding money of deposit received

Credit side: Deposit received by cash

Credit Balance: Sums of deposit received unpaid

3.Method of accounting for several major transactions

a) Upon receipt of the deposit of units or individuals outside, record:

Dr 111, 112

Cr 344 - Deposit received (details for every customer)

b) When refunding money of deposit to customers, record:

Dr 344 - Deposit received

Cr 111, 112.

In case of refunding money of deposit in foreign currency, record:

Dr 344 – Deposit received (in real exchange rates of recording by name of each object)

Dr 635 - Financial expense (loss on forex)

Cr 111, 112 (at exchange rate of recording weighted average of account)

Cr 515 - Financial income (gain on forex)

c) In cases deposit units are fined according to the agreement in economic contracts for their breach of economic contracts already signed with the enterprises:

- a) When receiving fine for breach of signed economic contracts: If it is deducted from money of deposit, record:

Dr 344 - Deposit received

Cr 711 - Other income

- When actual paying remaining deposits, record:

Dr 344 - Deposit received (deducted from fines)

Cr 111, 112.

d) When preparing financial statements, accountants shall revaluate the sum received from deposit payable in foreign currency at real exchange rates at the time of the report:

- If gain on forex is incurred, record:

Dr 344 - Deposit received

Cr 413 - Exchange differences

- If loss on forex is incurred, record:

Dr 413 - Exchange differences

Cr 344 - Deposit received

Source: Circular 200

Account 344- Deposit received

1.Accounting Principles

This account used for recording amounts enterprises received deposits of outside units and individuals to ensure for services related to business and production to be performed in compliance with the signed economic contract/ such as receiving deposits to ensure the performance of economic contracts, agency contracts, etc

Accountants received long-term deposits must monitor in detail each deposit received from every customer under each term and each type of currency. Deposits received payable with remaining term within 12 months are presented as short-term liabilities, accounts with a term of 12 months or more are presented as long-term liabilities.

c) Cases of receiving mortgaging and pledging in kind shall not be recorded in this account but monitored in notes to financial Statements.

c) If receiving deposits in foreign currency, accountants must monitor in detail the separate denomination of foreign currencies and convert into accounting monetary unit under the principles:

- At the time of receipt of deposit in foreign currency, accountants convert into accounting monetary units in accordance with the real exchange rate at the incurring time;

- When repaying deposit sum in foreign currency, accountants must convert at the real exchange rate of recording by name;

- When preparing the financial statements, accountants shall revaluate the sum received from deposit payable at real exchange rates at the time of reporting. The incurred exchange rate differences shall be recorded immediately in financial expenses or financial income.

2.Structure and contents of account 344 - Deposit received

Debit side: Refunding money of deposit received

Credit side: Deposit received by cash

Credit Balance: Sums of deposit received unpaid

3.Method of accounting for several major transactions

a) Upon receipt of the deposit of units or individuals outside, record:

Dr 111, 112

Cr 344 - Deposit received (details for every customer)

b) When refunding money of deposit to customers, record:

Dr 344 - Deposit received

Cr 111, 112.

In case of refunding money of deposit in foreign currency, record:

Dr 344 – Deposit received (in real exchange rates of recording by name of each object)

Dr 635 - Financial expense (loss on forex)

Cr 111, 112 (at exchange rate of recording weighted average of account)

Cr 515 - Financial income (gain on forex)

c) In cases deposit units are fined according to the agreement in economic contracts for their breach of economic contracts already signed with the enterprises:

- a) When receiving fine for breach of signed economic contracts: If it is deducted from money of deposit, record:

Dr 344 - Deposit received

Cr 711 - Other income

- When actual paying remaining deposits, record:

Dr 344 - Deposit received (deducted from fines)

Cr 111, 112.

d) When preparing financial statements, accountants shall revaluate the sum received from deposit payable in foreign currency at real exchange rates at the time of the report:

- If gain on forex is incurred, record:

Dr 344 - Deposit received

Cr 413 - Exchange differences

- If loss on forex is incurred, record:

Dr 413 - Exchange differences

Cr 344 - Deposit received

Source: Circular 200