Account 461- Non-business expenses source
1. Accounting Principles
This account is used to record of the situation of receiving, using and settlement of non- business and project expenses of units. This account is only used in emits which are granted with non-business and project expenses by State or senior unit.
Expenses source for non-business and projects are expenditures granted by State budget or senior units or direct aids received from Government, domestic and foreign organizations or individuals for implementation of item programs, approved projects, to perform economic, politic and social tasks assigned by the State or seniors for non - profit purposes. Use of expenditure source for non-business and projects must comply with approved estimate and must settle with agencies which grant expenditures. Non-business expenditure source may also be established from non-business receipts incurred at units, such as collecting hospital fees of unit‘s employee who are under treatment and in convalescence at unit‘s hospital, collecting school fees, customary dues, etc
b) Expenditure source for non-business and projects must be treated in details of every established source: granted by State budget or senior units, received financing and aids from organizations or individuals, collected from non-business activities of units. Concurrently, non-business expenses source of current year and non-business expenses source of previous year must be recorded in details and separately.
c) Expenses source for non-business and projects must be used in compliance with purposes, operating contents, standards and norms of State and senior units and in approved estimate range
d) In case expenses are granted by State budget, grant method of State budget for non-business expenditure source will be based to record in accounting book:
- If State budget grant expenses by payment order, when receive Credit note, the amount is transferred into account of the unit, accountants concurrently record an increase in cash in banks and non-business expenditure source;
- If State budget grant expenses by allocation of estimate for non-business, projects expenditures, when receiving the notice, or withdrawing estimates for non-business, projects for expenditure, units must explain on financial statement , and record Cr 461 ―Non-business expenses source‖ corresponding with related accounts.
dd) At fiscal year-end, units must make settlement procedures for striking balance of situation of receiving and using non-business expenses source with financial agencies, governing bodies and with every agency or organization granting expenditures according to current financial policy. Unspent expenditure allowed to transfer will be settled according to the decision of authorized agencies. Units only transfer amount of unspent expenses of non-business and projects to next year when approved by authorized agencies.
e) At fiscal year-end, if settlement of operating expenditures by non-business expenses source are not yet approved, accountants shall transfer non-business expenses source of current year to non-business expenditure source of previous year.

2. Structure and contents of account 461- Non-business expenses source
Debit side:
- Expenditures from non-business and projects source;
- Unspent expenditure source for non-business and projects refunded to State budget or paid for seniors
Credit side:
- Amount of expenses source for non-business and projects actually received from Slate budget or seniors;
- Amount of non-business receipts incurred at units supplemented for non-business expenses source
Credit Balance: Amount of expenses source for non-business and projects received from State budget or seniors, but have not yet used or used but have not yet settled.
Account 461- Non-business expenses source, comprises 2 sub-accounts:
- Account 4611- Non-business expenses source of previous year: Recording expenses for non- business, projects in the previous year used but the settlement report of previous year has not been approved, and the amount of unused non-business funding of previous year. When the settlement report of previous year is approved, expenditure by source of non-business funding, project funding of previous year shall be deducted from account 461 "Non-business funds" (4611- Non-business Funding of previous year). The unused non-business funding of previous year, depending on decision of financial agencies or the competent authorities, must be submitted into the budget or transferred to the funding of current year.
- Account 461- Non-business expenses source of current year : Recording non- business funding, project funding allocated in current year by the Budget or seniors, including unused non- business funding of previous year until approval of all settlement reports transferred into current year's funding. At the end of the accounting year, at the beginning of next year, the funding of
current year, if has not been settled shall be transferred from account 4612 "Non-business funding of current year" to account 4611 " Non-business funding of previous year" for monitoring until the settlement report of previous year is approved.

3. Method of accounting for several major transactions
Receiving expenses source for non-business and projects granted by State budget with payment order, or non-business expenses source granted in cash by superior, record:
Cr 111, 112
Cr 461 - Non business expenses source (4612)
b) When drawing estimate for activities or projects to encash, or to purchase materials, tools, or pay directly to sellers or disburse directly, record:
Dr 111 - Cash on hand
Dr 331 - Supplier Payable
Dr 161 - Expenses of non-business and projects (1612)
Dr 152, 153,…
Cr 461 - Non business expenses source (4612)
c) Non - business receipts incurred at units (if any), record:
Dr 111, 112,…
Cr 461 - Non business expenses source (4612)
d) Receiving non-business expenses in fixed assets granted by State budget or seniors, or receive grant in fixed assets used for non-business and projects activities, record:
Dr 211 - Tangible fixed assets
Dr 213 - Intangible fixed assets
Cr 461 - Non business expenses source.
Concurrently, record:
Dr 161 - Expenses of non-business and projects
Cr 466 - Fixed asset expenses
dd) At fiscal year-end, business still have cash and cash in bank which belong to expenditure source for non-business and projects, if this unspent non - business expenditure must be returned to State budget or seniors, record:
Dr 461 – Non-business expenses source.
Cr 111, 112.
If unspent amount of expenses source for non-business and projects is retained to transfer into next year‘s expenditure, the above entry will not be implemented.
e) When settlement report of expenses for non-business and projects activities approved in the current year, record:
Dr 461 – Non-business expenses source (4612)
Cr 161 - Expense for non-business activities (1612) (approved expenditure amount)
g) If until year-end, the settlement report of expense for non-business and projects has not yet approved:
- Transferring expense for non-business and projects of current year into expense on non-business and projects of previous year, record:
Dr 161 - Expense for non-business (1611 - Expense for non-business activities of previous year)
Cr 161 - Expense for non-business (1612 - Expense for non-business activities of current year)
- Concurrently, transferring expenses source for non-business activities and projects of current year, into expenses source for non-business and projects prior year, record:
Dr 461- Non-business expenses source (4612)
Cr 461 - Non business expenses source (4611)
h) When settlement report of expenses for non-business and projects activities approved in previous year, record:
Dr 461 – Non-business expenses source (4611)
Cr 161 - Expenses of non-business (1611)
Non business expenses source of previous year determined as redundancy when annual settlement report is considered, shall be transferred into non business expenses source current year, record:
Dr 461- Non-business expenses source (4611)
Cr 461- Non business expenses source (4612)

Source: Circular 200, Article 76