Group of inventory accounts is used to record existing value and changes in inventory of the enterprise

Account 141 – Advances

1. Rules for accounting

a) This account is used to record advances of an enterprise paid to employees in the enterprise and payment of those advances.

b) Advance is an amount or material given to receivers to do business or deal with any approved tasks. The receivers must be employees working at the enterprise. The regular receivers (working in department of material provision, administration) must be appointed by Director in writing.

c) The receiver (individual or group) must take responsibility for received advance and use the advance for proper purposes and approved tasks. If the received advance is unused or remained, it is required to repay to the fund. The receiver shall not transfer the advance to others.

When finishing the tasks, the receiver must make an advance payment sheet (enclose with original documents) to pay fully received advance, used advance or difference between received advance and used advance (if any). If the unused advance is not repaid to the fund, the receiver's salary shall be deducted. If the expenditure is greater than the received advance, the enterprise shall give additional expenditure on the deficiency.

d) The advance of this tax period is only received if the advance of previous tax period is settled. The accountant must keep records of receivers, receiving and payment of advances.

2. Structure and contents of account 141 – Advances

Debit:

Amounts of money or materials advanced to employees of the enterprise.

Credit:

- Paid advances;

- Unused advances which are required to repay to the fund or deducted from salaries;

- Unused materials which are re-stored.

Debit balance:

Unpaid advances;

3. Accounting methods for several major transactions:

a) When advancing amounts of money or materials to employees of the enterprise, the following accounts shall be recorded:

Dr 141 - Advances

Cr 111, 112, 152, etc.

b) When finishing assignment, the receiver shall make the advance payment sheet enclosed with approved original documents for settlement of the advance; the following accounts shall be recorded:

Dr 152, 153, 156, 241, 331, 621, 623, 627, 642, etc.

Cr 141 – Advances.

c) Unused advances which are repaid to the fund, re-stored or deducted from the receiver‘s salary, the following accounts shall be recorded:

Dr 111 - Cash

Dr 152 – Raw materials, materials

Dr 334 – Amounts payable to employees

Cr 141 – Advances.

d) If the approved actual expenditure is greater than received advance, the accountant shall make additional payment to the receiver; the following accounts shall be recorded:

Dr 152, 153, 156, 241, 621, 622, 627, etc.

Cr 111 – Cash.

Source: Circular 200

This account is used to record receivables and payments of receivables between the parent company and affiliated units or between affiliated units.

Kết cấu và nội dung phản ánh của tài khoản 133 - Thuế GTGT được khấu trừ

This account is used to record receivables and payments of receivables of customers from goods, investment properties, fixed assets, financial investment or services.

This account is used to record current amounts and increases and decreases in held to maturity investments (other than trading securities)

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