Account 113 – Cash in transit

1. Rules for accounting

This account shall be used to record amounts of money which an enterprise paid to the State bank, the State Treasury, or transferred by post to a bank, but no credit note or confirmation of payment to other enterprises has been received; or the enterprise made wire transfer from their bank account to other enterprises, but no debit note or bank statement has been received.

Cash in transit includes VND and foreign currencies which are transited in following cases:

- Collecting cash or checks then paying directly in a bank;

- Making postal remittance in order to pay other enterprises;

- Collecting revenues from good sales then transferring to Treasuries to pay taxes (payment collected from purchaser shall be transferred to State Treasury by the enterprise).

2. Structure and contents of account 113 – Cash in transit

Debit:

- Cash or checks in VND, or foreign currencies which are paid to a bank or transferred to a bank by post, but the credit note has not been received;

- Exchange rate differences due to re-evaluation of foreign currency balance at the reporting time.

Credit:

- The amounts of money transferred to account 112 – Cash in bank, or relevant accounts;

- Exchange rate differences due to re-evaluation of foreign currency balance at the reporting time.

Debit balance:

The amounts of money in transit at the reporting time.

Account 113 – Cash in transit, comprises 2 sub-accounts:

- Account 1131 – amounts in VND: recording amounts in VND in transit.

- Account 1132 – Foreign currencies: recording foreign currencies in transit.

3. Accounting methods for several major transactions:

a) When collecting money from good sales or customers' debts or other incomes in cash or check then transferring to the bank (not via the fund), but the credit note of bank has been received, the following accounts shall be recorded:

Dr 113 – Cash in transit (1131, 1132)

Cr 131 – Customers receivable (of customers' debts)

Cr 511 – Revenues

Cr 515 – Financial income.

Cr 711 – Other incomes

Cr 3331 – VAT payable (33311) (if any).

b) When dispatching cash fund to deposit in bank‘s accounts but the credit note of bank has not been received, the following accounts shall be recorded:

Dr 113 – Cash in transit (1131, 1132)

Cr 111 – Cash (1111, 1112).

c) Completing wire transfer from bank‘s accounts to pay creditors, but the debit note of the bank has not been received; the following accounts shall be recorded:

Dr 113 – Cash in transit (1131, 1132)

Cr 112 – Cash in bank (1121, 1122).

d) When a customer pays an advance of good purchase in check, the enterprise has paid check to a bank, but the credit note of bank has not been received, the following accounts shall be recorded:

Dr 113 – Cash in transit (1131, 1132)

Cr 131 – Customers receivable.

đ) When the cash in transit has been credited in the deposit account of the enterprise and the credit note is received; the following accounts shall be recorded:

Dr 112 – Cash in bank (1121, 1122)

Cr 113 – Cash in transit (1131, 1132).

e) When the cash in transit has been transferred to sellers or service provider and the debit not is received, the following accounts shall be recorded:

Dr 331 – Trade payables

Cr 113 – Cash in transit (1131, 1132).

g) The re-evaluation of foreign currency balance in transit shall be carried out similarly to foreign currency balance in cash (refer to account 111)

Source: Circular 200