CHAPTER 6 REVENUES, EXPENSES AND BUSINESS RESULT
DETERMINATION
E6.1 Unit: 1.000 VND
1. Granted customer 30.800 (including 10% VAT) credit for defective merchandise
goods. Both parties agreed on a minute of sales allowance, and the business issued
a VAT invoice adjusting for the previous month's VAT invoice.
2. Sold 100 tons of finished product A for 40.000 VND/ton, 10% VAT. Because the
customer purchased in bulk, the business granted a 1% trade discount to the
customer, which was deducted from the invoice. The customer had paid in half.
3. Made refunds to customers by bank transfer for defective merchandise of previous
month for 104.000, 10% VAT. The returned merchandise had a cost of 80.000. Both
parties agreed on a minute for returned goods, and the business had received a VAT
invoice from the customer.
4. Received notice from the joint venture company that the divided profit was 140.000.
5. Sold truck for 900.000 (10% VAT), received in cash in banks. The truck had a cost
of 2.400.000 and an accumulated depreciation of 1.300.000. The expense for
disposing of the truck was 2.200, including 10% VAT, paid in cash on hand.
6. Paid fines for administrative tax violations: 20.000 by bank transfer.
7. Paid in cash in banks for loan capital of 240.000 and interest of 70.000.
Requirements: Journalize the above transactions, using the deductible VAT method.
E6.2
Umi Company, using the deductible VAT method, had opening balances of some accounts
for November/N as follows: (unit: 1.000VND)
Account 155: 32.800 (500 products)
Account 157: 7.872 (120 products - consigned to May Trang company)
During November, there were the following transactions:
1. Received from the production division: 600 products, costing 64 each.
2. Information about issuing finished goods:
1
- Consigned 300 products to Binh Minh Company at a selling price of 82 each, 10%
VAT. Transportation costs of 725 (including 10% VAT) were paid in cash on hand.
- Sold 100 products for cash in banks of 80 each to Hoang Hon customers, 10% VAT.
- Sold 400 products on credit to Nang Chieu Company at a selling price of 85 each,
10% VAT. Delivery outwards paid on behalf of Nang Chieu Company was 1.050
(including 5% VAT).
- May Trang was informed to accept payment of the consigned finished goods for 80
each, 10% VAT.
3. Payment information:
- Binh Minh only accepted payment for 250 products; the remaining 50 products were
returned due to poor quality. Umi had received a credit note from the bank and
restocked the products.
- Nang Chieu paid Umi in full plus shipping costs by bank transfer.
Requirements: Journalize the November transactions and post them to ledger accounts
using perpetual inventory system and weighted-average cost method.
E6.3
Umi Company uses the perpetual inventory system and the deductible VAT method. There
is information in December, year N as follows (units: 1.000VND):
1. VAT invoices have been paid by bank transfer:
4. Revenues: 250.000
5. VAT: 25.000
2. VAT invoices on credit:
6. Revenues: 300.000
7. VAT: 30.000
3. Cost of goods sold (according to goods delivery notes): 290.000
4. Cost of returned goods: 900, sales returns: 1.500, VAT: 150. Umi has credited sales
returns to trade receivable.
5. Payment discount has been credited to trade receivable: 200
2
6. VAT invoice for disposal of tangible assets: proceeds of 35.000, 10% VAT, on
credit. The tangible asset has a cost of 80.000, and a accumulated depreciation of
50.000.
7. Credit notes from the bank about the profit from the joint venture: 10.000.
8. Penalty fees due to breach of contract paid in cash in banks: 2.000.
9. Collect bad debts that were written off in cash of 80.000, expenses for recovering
bad debts paid in cash on hand are 500.
10. Selling expenses are as follows:
- Goods delivery notes: indirect raw materials: 300
- Payroll sheet: 2.000
- Fixed asset depreciation allocation sheet: 800
- Electricity and water bills: 1.800, 10% VAT.
- Payment slip: 1.500, 10% VAT.
11. Administrative expenses are as follows:
- Goods delivery notes: indirect raw materials: 280, two-time allocated supplies:
1.000.
- Payroll sheet: 6.000
- Fixed asset depreciation allocation sheet: 1.000
- Electricity and water bills: 2.800, 10% VAT.
- Payment slip: 2.000, 10% VAT.
- Debit notes: 4.500, 10% VAT.
12. Transfer current CIT expenses at the end of the fiscal year assuming current CIT
(no deferred CIT) during the year as follows:
8. Based on the Determination of quarterly CIT payable: CIT payable paid in quarters
1, 2, 3, 4 are 20.000; 30.000; 22.000; 32.000 respectively.
9. At the end of the year, Umi determines taxable income of 422.579, CIT rate of 20%.
Business determines profit quarterly.
Requirements: Journalize the transactions and post them to revenues, expenses and
income summary ledger accounts.
