5 SALES ACCOUNTING AND DETERMINING BUSINESS RESULTS IN VINATECH MECHANICAL TELECOMMUNICATION CO , LTD

MINISTRY OF FINANCE
ACADEMY OF FINANCE
--------------------

STUDENT: HOANG

THI VAN ANH

GROUP: CQ55/51.06

GRADUATION THESIS
TOPIC

SALES ACCOUNTING AND DETERMINING BUSINESS RESULTS
IN VINATECH MECHANICAL TELECOMMUNICATION CO., LTD

Major
Student code
Supervisor

: English for Finance and Accounting
: 17522202010165
: MA. TRUONG THI MINH HANH

Hanoi – 2021


1

DECLARATION
I hereby declare that this thesis is a result of original work accomplished

by me under the guidance of M.A Truong Thi Minh Hanh . I confirm that the
work submitted is my own, except where work which has formed part of
jointly-authored publications has been included. My contribution and those of
the other authors to this work have been explicitly indicated below.
Hanoi, May 25th,2020
Student
Hoang Thi Van Anh


2

ACKNOWLEDGEMENTS
I would like to thank my teacher, MA. Truong Thi Minh Hanh, because without
herhearty support, all these lines would not have been written.
To

Mr.

Ta

Huy

Khoi,

director

TELECOMMUNICATION CO., LTD
helped

me

complete

the

of

VINATECH

MECHANICAL

for his enthusiasm cooperation, which

internship

at

VINATECH

MECHANICAL

TELECOMMUNICATION CO., LTD smoothly.
To Mr. Hoang Van Tuan and Mrs. Nguyen Thi Minh Anh, who teach me a
wealth of specialized knowledge about Accounting activities at VINATECH
MECHANICAL TELECOMMUNICATION CO., LTD .
To all the respondents who kindly dedicated part of their time to complete the
questionnaires and interview.


3

ABSTRACT
In the modern economic world, especially when the number of bankrupt
enterprises is rising, accounting for sales and business results has become
more and more important to every company in general, and Mechanical
Telecommucication

in particular. Therefore, I choose the topic "SALES

ACCOUNTING AND DETERMINING BUSINESS RESULTS IN VINATECH
MECHANICAL TELECOMMUNICATION CO., LTD" for my graduation thesis. It
will point out the importance of having an effective accounting department for
sales and business results. The main content is reflected in three chapters. The
first chapter is about the literature review for every company, mainly showing
what accounts are involved in calculating business results, its definitions and
accounting entries. In chapter 2, by taking a scenario in VINATECH
MECHANICAL TELECOMMUNICATION CO., LTD , the thesis focuses in a real
accounting practice for sales and business results. From that, chapter 3 shows
the company's strengths and weaknesses and suggests some solutions to
improve the current accounting system in VINATECH MECHANICAL
TELECOMMUNICATION CO., LTD. In conclusion, the thesis has already been
complete in comparison with proposed objectives and targets in the
introduction.


4

TABLE OF CONTENTS
DECLARATION........................................................................................................i
ACKNOWLEDGEMENTS......................................................................................ii

ABSTRACT.............................................................................................................iii
TABLE OF CONTENTS.........................................................................................iv
LIST OF FIGURES AND TABLES.........................................................................vi
INTRODUCTION.....................................................................................................1
CHAPTER I: LITERATURE REVIEW....................................................................4
1.1. General overview of sales accounting and determining business results............4
1.1.1. The concept of sales accounting and determining business results..................4
1.1.2. The role and duties of sales accounting and determining business results.......4
1.2. Definition of accounting and determining business results.................................5
1.2.1. The general principles and accounting standards that govern sales accounting
and determining business results...............................................................................5
1.2.2. Detailed accounting for researching objects....................................................9
1.2.2.1. Cost of goods sold accounting......................................................................9
1.2.2.2..Sales revenue accounting............................................................................12
1.2.2.3. Accounting for revenue deductions.............................................................15
1.2.2.4. Cost accounting..........................................................................................18
1.2.2.5 : Determining business result.......................................................................21
1.2.3. Books for sales accounting and Income summary.........................................21
CHAPTER II: THE STUDY...................................................................................23
2.1. The formation and development of Vinatech Telecommunication Mechanical
Company Limited....................................................................................................23
2.1.1. The process of formation and development of Vinatech Telecommunication
Mechanical Co., Ltd................................................................................................23
2.1.2. Characteristics of Business Organization.......................................................25
2.1.3.

Characteristics

of

organization

and

management

at

Vinatech

Telecommunication Mechanical Company Limited................................................27
2.1.4. Characteristics of the accounting organization in the company.....................29


5
2.1.4.1. Characteristics of accounting system..........................................................29
2.1.4.2. Accounting policy at Vinatech Telecommunication Mechanical Company
Limited.................................................................................................................... 30
2.2. The actual situation of sales accounting and Income summary at Vinatech
Telecommunication Mechanical Company Limited................................................31
2.2.1. The actual situation of revenue accounting....................................................31
2.2.2.Current situation of general & administration expense accounting................35
2.2.3. Current situation of goods sold accounting....................................................38
Recording method...................................................................................................39
2.2.4. Income summary accounting.........................................................................40
2.3. Evaluating the current situation........................................................................42
CHAPTER III: RECOMMENDATIONS................................................................45
3.1 Requirements, development principles..............................................................45
3.2 Development of sales accounting and income summary at Vinatech
Telecommunication Mechanical Company Limited................................................46

CONCLUSIONS.....................................................................................................50
REFERENCES........................................................................................................51
APPENDIX.............................................................................................................52


6

LIST OF FIGURES AND TABLES
Diagram 1.1. Accounting the cost of goods sold......................................................11
Diagram 1.2. Accounting the cost of goods sold....................................................12
Diagram 1.3. Sales revenue accounting and provision of service...........................14
Diagram 1.4. Sales revenue accounting of agencies................................................15
Diagram 1.5.Sales return accounting.......................................................................17
Diagram 1.6. Accounting the derived expenses which are related to sales return....17
Diagram 1.7. Devaluation of sale accounting..........................................................18
Diagram 1.8. Selling expenses accounting..............................................................19
Diagram 9. General & administration expenses accounting...................................20
Diagram 10. Characteristics of Vinatech Company.................................................27
Diagram 11. Accounting System.............................................................................30
Figure 1. VAT Invoice..............................................................................................33
Figure 2.VAT Invoice..............................................................................................34
Table 1. LABOR QUALIFICATION......................................................................26
Table 2. Subsidiary ledger of revenue......................................................................35


1

INTRODUCTION

1. Rationable of the study

In a market economy, businesses that want to survive and develop must-have
business plans with economic efficiency. To stand firm and thrive in fierce
competition conditions, businesses must grasp and satisfy the psychology and needs
of consumers with high-quality products, low prices, stylish fashion designs, rich
and diverse in types. To do so, businesses must supervise all processes from
purchasing to consumer goods to ensure the safety and fast speed of capital
turnover, maintain prestige with customers, fulfill obligations to the House. Improve
the material and spiritual life of officials and employees, enterprises ensure profits
to accumulate and expand production and business development.
Moreover, consumer demand in the current market requires businesses to generate
profitable revenue, businesses must produce what the market needs, not what they
have, and set for themselves. I have the question "What to produce for whom, how
to produce, and how much output? To achieve profit goals: To achieve high
profitability and safety in production and business activities, the company must
conduct synchronous management measures, in which accounting is an important
and indispensable tool to manage economic activities, check the use and
management of assets and goods to ensure dynamism Creativity, autonomy in
production and business, calculation and determination of the efficiency of each
production

and

business

activity

as

a

basis

for

mapping

business

strategies. Therefore, in addition to general management measures, the rational
organization of sales accounting is essential to help businesses have timely and
accurate information to make correct business decisions. Business enterprises with
high economic efficiency are the basis of enterprises that can survive and grow
steadily in a vibrant and fiercely competitive market economy.
Recognizing the importance of sales accounting using the theory learned at the
school combined with the reality obtained from the accounting work at Vinatech


2
Mechanical and Telecommunication Limited Liability Company, I chose the topic :
“Sales accounting and determining business results at Vinatech Mechanical and
Telecommunication Company " to research and transfer to your own .

2. Aims of the study
The study is aimed at:
 Systematize some theoretical bases for sales accounting in commercial
enterprises
 Assessing the current situation of sales accounting and determining
business results at Vinatech Mechanical and Telecommunications Co., Ltd
 Propose some ideas to improve sales accounting and determine business
results at Vinatech Telecommunication Engineering Co., Ltd.3. Scope of the

study

3. Scope of the study
The study focuses on theoretical and practical issues of sales accounting and
determining business results at Vinatech Mechanical and Telecommunication
Company at 4th quarter of 2020 and suggestions to improve this activity.
Based on these issues, the researchers will was done with the following questions:
Question 1: How effective is sales accounting and determining business results
activities at Vinatech Mechanical and Telecommunications Co., Ltd currently?
Question 2: What should be done to improve sales accounting and determining
business results activities at ILT?

4. Methods of the study
To answer the research question, the researcher uses the following data
collection: To analyze in a timely manner the sales situation of the Company;
need to approach the Sales Department, the Accounting Department to collect
data, synthesize information, compare actual data and clarify the research


3
problem. Also refer to Circulars and Decisions of the Ministry of Finance for
more information and analysis documents.
In addition, using the document research method : During the internship, I did
research through books, newspapers, the Internet, and consult the
dissertations of the previous siblings working on sales accounting. At the same
time, collect documents related to sales operations in the last 6 months of 2020
at Vinatech Telecommunication Mechanical Co., Ltd.
+ Documents and related account books.
+ Financial statements for the year 2020
5. Organization of the study

Besides the INTRODUCTIONS, CONTENTS, CONCLUSION, REFERENCES,
AND APPENDICES, the research paper is divided into 3 chapters::
CHAPTER 1: LITERATURE REVIEW , basic theoretical knowledge about sales
and identifying business results accounting in enterprises.
CHAPTER 2 : THE STUDY , current situation of sales and identifying business
results accounting in Vinatech mechanical telecommunication Co., LTD.
CHAPTER 3 : RECOMMENDATIONS , president about sales and identifying
business results accounting in Vinatech mechanical telecommunication Co., LTD .


4

CHAPTER I: LITERATURE REVIEW
The chapter focuses on discussing the literature review relating to the research topic
and questions to be answered and elaborated. It will present new approach
definition of accounting and its characteristics, the classification of accounting, the
roles of sale accounting and determining business results

in the international

economy.
1.1. General overview of sales accounting and determining business
results
1.1.1. The concept of sales accounting and determining business results
Accountingng is the process of identifying, measuring, recording, and
communicating an organization’s economic activities to users. Users need
information for decision making. Internal users of accounting information work for
the organization and are responsible for planning, organizing, and operating the
entity. The area of accounting known as managerial accounting serves the decisionmaking needs of internal users. External users do not work for the organization and
include investors, creditors, labour unions, and customers. Financial accounting is

the area of accounting that focuses on external reporting and meeting the needs of
external users. This book addresses financial accounting. Managerial accounting is
covered in other books. (Introduction to Financial Accounting - Henry Dauderis )
- Sale refer to ownership transfer of products or goods related to benefits or risks to
customers and paid or accepted payment by the customer simultaneously. Sale is
final stage of the production - business process, the process of transforming capital
from the form of capital products, goods to monetary capital or capital in payment.
In other words, selling is the transfer of products or goods to customers and the
customer pays or accepts to pay for the business (Accounting Principles A Business
Perspective - Roger H. Hermanson )
- “Determining business results” the comparison between business expenses and
business income earned in the current period.


5
1.1.2. The role and duties of sales accounting and determining business
results
* The role of sales accounting and determining business results
Sales accounting and determining business results plays a very important role
not only for businesses but also for the entire national economy. For businesses
themselves, they can have income to compensate for the costs spent, have
conditions to expand business activities, improve the lives of workers, and
create a source of savings for the foundation. National Economy. The accurate
determination of business results is the basis for accurately determining the
performance of enterprises towards the State through the payment of taxes,
fees and charges into the state budget, and determining cost structure.
Reasonably and effectively using the collected profits, harmoniously solving the
economic benefits: the State, the collective and the individual employees.
* Requirement of sales accounting and determining business results
The requirement for the sales accountant is to strictly supervise the consumed goods

in all aspects: quantity, quality ... Avoid the prospect of loss, damage or wasteful
embezzlement, check the reasonableness. of expenses and correctly allocated to the
correct sales to determine business results. Must strictly manage the payment
situation of customers, require payment in the right form and in time to avoid loss
of capital stagnation.
1.2. Definition of accounting and determining business results
1.2.1. The general principles and accounting standards that govern sales
accounting and determining business results

 Accounting Standard No. 01 "General standards"
The standard was promulgated and published in accordance with Decision No.
165/2002/QD-BTC dated December 31, 2002 of the Minister of Finance.
The standard reflects the general principles and accounting requirements and
elements of the financial statements. Enterprises must comply with a number of
regulations after implementing the sales accounting.


6
 Accruals:
All economic and financial transactions of enterprises which are related to assets,
liabilities, owner's equity, revenue and expenses must be recorded in the account
books when they are derived and not based on the time of actual receipts and
payments of cash or cash equivalents. Financial statement is prepared on an accrual
that reflect the enterprise's financial position in the past, present and future. The
accrual means the principle throughout the accounting process. This principle is
prepared by the cash basis principle.
* Historical cost convention:
Assets must be recorded at cost. The cost of an asset is calculated by the amount or
cash equivalents paid, payable or fair value of such assets at the time the assets are
recognized. The cost of assets is not changed unless otherwise specified in specific

accounting standards. Thus, when applying the principle of cost, assets are
evaluated on a cash basis or cash equivalent.
* Matching concept:
Revenue and expense recognition must be consistent with each other. When
recognizing a revenue, a corresponding expense must be recognized in relation to
the generation of that revenue. Expenses corresponding to the revenue include the
costs of the period that generate the revenue and the expenses of the previous
periods or the expenses payable but related to the revenue of that period. The
correct accounting according to the right principle helps enterprises determine and
correctly evaluate the business performance of each accounting period, helping
managers to make correct and effective business decisions.
 Prudence concept:
Caution is the consideration, consideration, and judgment necessary to make
accounting estimates in uncertain conditions. The precautionary principle requires:
• Must set up the provisions, but not too large.
• Do not overestimate the value of assets and earnings.
• Do not underestimate the value of liabilities and expenses.
• Revenue and income are recognized only when there is a solid evidence of the
ability to obtain economic benefits, while expenses must be recognized when there


7
is evidence of the possibility of cost incurred. Adhering to the principle of prudence
will help businesses preserve capital, limit risks and increase their ability to operate
continuously.

 Consistency:
The selected corporate accounting policies and methods must be applied
consistently for at least an annual accounting period.And with sales accounting, too,
because each method gives a different result, when selected. Which method should

the accountant apply consistently in the accounting periods
In case of any change to the selected accounting policy and method, the reason and
impact of such change must be explained in the explanation of the financial
statements.

 Materiality concept
Information is considered material in the event that the information or its
inaccuracies could significantly falsify the financial statements, affecting the
economic decisions of users of the financial statements. Materiality depends on
the magnitude and nature of information or errors assessed in particular
circumstances. The materiality of information must be considered both
quantitatively and qualitatively.

 Going concern
The financial statements must be prepared on the assumption that the enterprise is
operating continuously and will continue to do normal business in the near future,
meaning that the enterprise has no intention and is not required to cease operations
or significantly narrowed the scale of their operations. In case the reality differs
from the continuous operation assumption, the financial statements must be
prepared on a different basis and must explain the basis used to prepare the financial
statements.

 Accounting Standard No. 02 “Inventory”
The standard was promulgated and published in accordance with Decision No.
149/2001/QD-BTC dated December 31, 2001 of the Minister of Finance.


8
Accounting Standard No. 02 regulates and guides the principles and methods of
inventory accounting. In order to define the value of inventories and goods sold

accurately, the relevant factors in the accounting process of sales and inventories
must be accurate, thus, it will be the basis for establishing the provision for
devaluation of inventories. The calculation of the inventory value in sales
accounting will be applied one of the following methods:
 Specific Identification Method: According to this method, the goods sold for sale
belong to any time of purchase, the unit price of that purchase is used to determine
the value of the ex-warehousing goods.
 Weighted average: According to this method, the value of each type of inventory
is calculated according to the average value of each similar inventory at the
beginning of the period and the value of each type of inventory purchased or
produced during the period. The average value is calculated by period or every time
a shipment is imported, depending on the situation of the enterprise.
 First In, First Out: This method will be applied on the assumption that
inventories were purchased first or produced first which will be "first out" and the
remaining inventories at the end of the period will be purchased or produced
inventory towards the end of the period. Moreover, the value of the output will be
calculated according to the price of the input at the beginning or towards the
beginning of the period, the value of the inventory will be calculated according to
the price of the inventory at the end of the period or towards the end of the period
that are remaining inventories.
Last In, First Out:
 The advantage: This method means the cost of the latest purchase is relatively
close to the cost price of the substitute goods. The implementation of this method
will guarantee the matching concept in accounting.
 The disadvantage: The cost price of inventory at the end of period may not be
close to the market price of the substitute goods.

 Accounting Standard No. 14 "Other revenue and income"

9
The standard was promulgated and published in accordance with Decision No.
149/2001/QD-BTC dated December 31, 2001 of the Minister of Finance.
According to Accounting Standard No. 14 "Other revenue and income", sales
revenue is recorded in case the sales transaction meets regulated requirements
simultaneously:
The five requirements to record revenue:
• The enterprise has transferred substantially all the risks and rewards of ownership
of the product or goods to the buyer.
• The enterprise no longer holds the right to manage the goods as the holder of the
goods or the right to control the goods.
• Revenue can be measured with relative certainty.
• The enterprise has received or will receive economic benefits from the sale
transaction.
• Identify expenses related to sales transactions.
1.2.2. Detailed accounting for researching objects
1.2.2.1. Cost of goods sold accounting
* Definition
Cost of goods sold
* To define the cost of goods sold:
- In case finished products without input are sold immediately, the cost of goods
sold will be the actual cost of production.
- Finished products are output for sale, the actual cost of goods sold will be calculated
by one of the following methods: Weighted average, first in first out (FIFO ), specific
identification method.
o Weighted average means the cost of finished products for sale would be based on
the quantity of output finished products and the weighted average of unit price
(actual cost of production in average).
o First In, First Out (FIFO): This method is based on the assumption that the
inventory that is produced first is sold first, and that the inventory remaining at the

end of the period is the inventory produced near the end of the period. According to


10
this method, the value of inventories is calculated according to the price of goods in
stock at the beginning of the period or near the beginning of the period, the value of
inventories is calculated according to the price of goods in stock at the end of the
period or near the end of the period. inventory at the end of the period.
o Specific identification method means in case the finished product is output, it will
be based on the output quantity whether it belongs to the batch and the actual cost
of that batch in order to calculate the output value.
*Applied account
To account the cost of goods sold:
Account 632 – Cost of goods sold
Account 154– Work in progress.
Account 155– Finished product
Account 157 – Entrusted goods for sale
And other related accounts.
(Financial Accounting- Academy of Finance)


11

*Accounting procedures
Diagram 1.1. Accounting the cost of goods sold
ACCOUNT 154

(Perpetual inventory)
ACCOUNT 632 Cost of goods sold bán

Finished products are sold immediately
without storing in warehouse

ACCOUNT 155

ACCOUNT 157

ACCOUNT 911

Posting cost of goods sold and
expenses when defining income
summary

Finished products are sold Consigned goods

ACCOUNT 155

without storing in warehouseare defined to be
consumed

Sales return for input

Delivering finished products and goods for
sale
ACCOUNT 138, 152, 153,

ACCOUNT 229

155...
Inventory loss is recorded into cost of goods

sold
ACCOUNT 627

Provision for devaluation of
inventories

Unallocated general operation cost are
recorded to cost of goods sold in the
current period
Recording provision for devaluation of
inventories


12

Diagram 1.2. Accounting the cost of goods sold

ACCOUNT
155,157

(Periodic inventory)
ACCOUNT 632
Cost of goods sold

At the beginning of the period,
posting the cost of finished goods in
stock at the beginning of the period
and the cost of consigned goods at
ACCOUNT 631

the beginning of the period

ACCOUNT 911

Posting cost of goods
sold at the end of
period
At the end of the period,
posting the cost of finished
products in inventory at the end
of the period and the cost of
consigned finished products and

ACCOUNT 155,157

services for sale

Costs of input finished products
and completed service

ACCOUNT 229

Provision for devaluation of
inventories

Recording provision for devaluation of inventories

1.2.2.2..Sales revenue accounting
* Principle of sales revenue accounting
 Definition of sales revenue

The revenue and the cost that generates that revenue must be recognized
simultaneously according to the matching principle. However, in some cases,
the compliance principle may conflict with the principle of prudence in
accounting, the accountant must rely on the nature and accounting standards


13
to honestly reflect the transaction. , reasonable. An economic contract can
include many transactions. The accountant must identify the transactions in
order to apply the revenue recognition conditions in accordance with the
provisions of VAS “Revenue”. ( Sales and Leases: A Problem-based ApproachBurnham và Juras)
The formula to define the sales revenue:
Sales revenue and
provision of service

Sales revenue
=

according to the

-

invoices

Sales revenue
deductions

* Vouchers and accounts in use
Vouchers of sales revenue accounting
VAT invoice, standard invoice

Issue voucher
Sheet of agency, consignment payment
Counter sheet
List of sales agencies
Payment vouchers (Receipt voucher, subsidiary ledger, bank credit note, etc.)
Other vouchers: Sheet of sales return …
To account sales revenue and provision of service, the accountant shall apply
following accounts:
ACCOUNT 511 – Sales revenue and provision of service
ACCOUNT 3331 – VAT payable
ACCOUNT 3387 – Unrealized revenue
And other related accounts (ACCOUNT 111, 112,131 …)
ACCOUNT 511 – Sales revenue and provision of service
ACCOUNT 3331 – VAT payable: This account will reflect the output VAT and the
payable input VAT. VAT deductions, the paid and remaining VAT payable to the
State budget.
* Accounting procedures for a number of main operations


14
 Procedures of sales revenue accounting and provision of service if enterprises
calculate VAT by deduction method.
Diagram 1.3. Sales revenue accounting and provision of service
(Enterprises calculate VAT by deduction method)

ACCOUNT 911

ACCOUNT511Sales
revenue and provision of
service

Posting
net revenue

ACCOUNT 111,112,131

Sales revenue and
provision of service

ACCOUNT
5211,5212,5213

Revenue of sales
returns, discounts,
commercial
discounts

Output
VAT
ACCOUNT 3331

VAT of sales return

Posting revenue of sales that are returned, discounted or commercial
discounts which are incurred in current the period


15
Diagram 1.4. Sales revenue accounting of agencies
The method of selling at the fixed price to receive the commission

(Consignor)

ACCOUNT 155

ACCOUNT 157

(1) Finished product output

ACCOUNT
632

(2) Posting cost of goods sold by the
agencies

Consignment to agencies
(perpetual inventory)

ACCOUNT 511

(3) Revenue of agencies

ACCOUNT
333(1)

ACCOUNT 111,112,131,
…

ACCOUNT
641

(5) Agency commission

(6) Input VAT is deductible
(if any)

ACCOUNT
133

(4) Output VAT (if any)

 Procedures of sales revenue accounting with deferred payment and installment
payment
1.2.2.3. Accounting for revenue deductions
Commercial discount : used to reflect the amount of money that the enterprise has
deducted or paid to the buyer for goods (products, goods) or services in a large


16
amount under the commercial discount agreement stated in the economic contract.
purchase or sale or undertaking to buy or sell
Definition: Commercial discount meaning the premium in the selling price
less than the list price in the enterprise which has been deducted for the buyer
because the buyer has purchased goods and services in a wholesale according to the
commercial discount agreement stated in the economic contract.
Applied accounts and procedures
+ Reflecting the actual commercial discount which generated in the current period
Debit ACCOUNT 521- Commercial discount
Debit ACCOUNT 333 – VAT payable
Credit ACCOUNT 111,112,131
At the end of period, posting commercial discount which approved to the buyer in

recording revenue account as follows:
Debit ACCOUNT 511
Credit ACCOUNT 521
Sales return reflects sales of sold products, goods ... returned by customers
because of the enterprise's fault such as breach of commitments, breach of contract,
lost or low standard goods, etc.
Sales return means the sold products, goods or services which are returned by
the customer because of breach of economic contract, lost or out of specifications
Value of sales return = Number of sales return x unit price
If the enterprises receive the sales return, they will record as follows:
Debit ACCOUNT 155
Debit ACCOUNT 157
Debit ACCOUNT 138
Credit ACCOUNT 632
Derived expenses
Debit ACCOUNT 641
Credit ACCOUNT 111,112,141
Refund to the buyer for the sales return


17
Debit ACCOUNT 521
Debit ACCOUNT 3331
Credit ACCOUNT 111,112,131
Posting the revenue of sales return at the end of period
Debit ACCOUNT 511
Credit ACCOUNT 521

 Commercial discount
Diagram 1.5.Sales return accounting

ACCOUNT 111,112

ACCOUNT 5212

Pay to the buyer for the sales
return

ACCOUNT 511

Posting the revenue of
sales return

ACCOUNT 333(1)

VAT (If any)

Accountant will receive the products

Diagram 1.6. Accounting the derived expenses which are related to sales return
ACCOUNT 111,112...

Derived expenses which are
related to sales return

Devaluation of sale accounting

ACCOUNT 641

ACCOUNT

Posting selling expenses

911


18
Diagram 1.7. Devaluation of sale accounting

ACCOUNT 111,112

ACCOUNT 5213

Devaluation of sale

ACCOUNT 511

Posting total sales
discounts incurred in
the current period

ACCOUNT 333(1)

1.2.2.4. Cost accounting
VAT (If any)
Selling expenses accounting:
Selling expenses are the incurred expenses related to

the sale of products, goods and services in the current period.
* Applied accounts
Account 641 – Selling expenses

* Vouchers in use
- Ledger Account 641
- Subsidiary ledger 641