PART 1- MULTIPLES CHOICE QUESTIONS

1. Account 131 - Account receivables, has a credit balance because:

A. The difference in the amount receivable is greater than the amount paid in advanced by
the customer

B. The amount still receivable from the customers

C. The amount paid in advanced by the customers

D. All are incorrect

2. On June 5, receiving an advance payment of 10 million VND from the customer in cash,
the accountant records:

A. Debit 111/Credit 331: 10 million

B. Debit 111/Credit 1381: 10 million

C. Debit 111/Credit 141: 10 million

D. Debit 111/Credit 131: 10 million

3. When selling goods on credit, the entry will be recorded as:

A. Debit 131/Credit 711; 3331

B. Debit 131/Credit 515; 3331

C. Debit 331/Credit 511; 3331

D. Debit 131/Credit 511;3331 and Debit 632/Credit 155; 1561; 154

4. The payment discount to customers will be recorded as:

A. Debit 515/Credit 131

B. Debit 635/Credit 131

C. Debit 5211/Credit 131

D. Debit 6421/Credit 131

5. The trade discount to customers will be recorded as:

A. Debit 515/Credit 131

B. Debit 635/Credit 131

C. Debit 5211/Credit 131; 33311

D. Debit 6421/Credit 131

6. Overtage inventory due to physical count is recorded as:

A. Debit account 111/Credit account 3381

B. Debit account 111/Credit account 3388

C. Debit account 111/Credit account 335

D. All are incorrect

7. Corporate income tax payable is recorded as:

A. Debit 911/Credit 3334

B. Debit 821/Credit 3334

C. Debit 911/Credit 821

D. Debit 3334/Credit 821

8. Receiving the tangible fixed assets as a long-term deposit from customers, the entry is
recorded as:

A. Debit 211/Credit 344

B. Debit 211/Credit 335

C. Do not record an increase in fixed assets, monitor in detail and explain on FS

D. Question a or question c are correct.

9. In case of collecting a penalty for contract breach and deducting it from the deposit, the
entry is recorded as:

A. Debit 344/Credit 111,112

B. Debit 344/Credit 711

C. Debit 344/Credit 515

D. Questions b and c

10. Social insurance, unemployment insurance, health insurance, and trade union funds are
set aside according to the prescribed rate and are included in expenses, the records are:

A. Debit 622, 627, 641, 642/Credit 334

B. Debit 622, 627, 641, 642/Credit 338

C. Debit 334/Credit 338

D. Debit 3383/Credit 334

PART 2-EXERCISES

E1:

ABC Trading and Production Company accounts for inventory according to perpetual
system, uses the moving average cost method to determine the value of inventory, and
calculates VAT according to the deduction method. Excerpt from documents on production
and business activities during the period of ABC company as follows (Unit: 1,000 VND):

Beginning inventory of product A: 300 kg unit price: 220/kg.

Economic transactions arising during the period:

1. March 2, N: Buy 1,000 kg of product A, the purchase price includes 10% VAT of 275/kg,
half of the payment is paid by bank deposit. Goods have arrived in stock. Shipping cost
includes 10% VAT which is 6,050 paid in cash.

2. March 4, N: Sell on credit 500 kg of goods A, the selling price includes 10% VAT of
418/kg.

3. March 5, N: Buy 400 kg of product A, the purchase price includes 10% VAT of 253/kg,
paid by bank deposit. A has arrived in stock.

4. March 6, N: Issue 20 kg of product A to serve the business management department.

5. March 8, N: Cash sales of 500 kg of product A, selling price 440/kg (including 10%
VAT).

6. March 9, N: Purchase on credit 600 kg of product A. At the end of the period, the goods
have not yet been arrived in stock, the purchase price (including 10% VAT) is 275/kg.

7. March 14, N: Payment for supplier in transaction 1 by bank deposit.

8. March 19, N: Receive cash from the buyer in transaction 2 after deducting the payment
discount for the buyer (1% of the total payment amount).

Requirements: Journalizing those transactions.

E2:
ABC Trading company has a monthly accounting period, applies perpetual inventory
system, and calculates VAT according to the deduction method. Excerpt from the payment
situation in May/N at ABC as follows (unit: 1,000 VND):
Beginning balance:
Account 131 (Customer X): 400,000
Account 131 (Customer Y): 600,000
Account 331 (Supplier P): 100,000; Credit balance of Account 131 (Customer M):
800,000
Account 131 (Customer N): 800,000
Account 331 (Supplier Q): 700,000
Economic transactions arising during the period:
1. May 3: Company X paid all debt through bank account after deducting the payment
discount of 2%.
2. May 4: Company Y transfers half of the amount to the ABC’s bank account.
3. May 5: Purchased on credit a batch of goods worth 660,000 (including 10% VAT)
from supplier P. Cost of transporting goods to warehouse 12,100 (including 10% VAT), paid
in cash.
4. May 6: Acquired a new car, the purchase price includes 10% VAT of 990,000, the
purchase on credit from supplier K.
 5. May 7: Received notice from Supplier K that the company will receive a promotion of
8,000 VND due to lucky draw. The company paid by bank transfer for the car purchase in
transaction 4 after deducting the promotional amount received.
6. May 9: Paid store rent expenses of May through bank transfer 66,000 (including 10%
VAT).
7. May 10: Determine company R's loan interest receivable as 120,000.
8. May 20: Paid to supplier Q after deducting payment discount of 1%.
Request:
1. Journalizing the transactions.
2. Present information about receivables and payables on the Balance Sheet of ABC
Trading company as of May 1, N and May 31, N (according to the form). Assume that
receivables and payables are both short-term debt.

ABC Trading company STATEMENT OF FINANCIAL POSITION

As at………………………………………..
ASSETS Code Opening Closing
balance balance
…
III. Short-term receivables 130
1. Short-term receivables from customers 131
2. Prepayment to suppliers 132
…
LIABILITIES AND EQUITY
....
1. Short-term payable to suppliers 311
2. Short-term deferred revenues 312
...

E3:

Company D applies perpetual inventory system and calculates VAT using the deduction
method. Accounting documents at company D are as follows (Unit: 1,000 VND):

1. Purchase of tangible fixed assets, purchase price (including 10% VAT) is 5,500,000, not
yet paid.

2. Purchase of a batch of materials, purchase price (including 10% VAT) is 330,000, half
paid by bank deposit, the rest is not yet paid.
3. Purchase of a batch of goods, purchase price (including 5% VAT) is 304,500, not yet paid,
transportation cost is 5,500 (including 10% VAT), paid in cash.

4. Sell a batch of raw materials purchased in transaction 2, selling price (including 10%
VAT) 550,000, collected by bank deposit.

5. Sell 1/2 batch of goods purchased in transaction 3, selling price (including 10% VAT)
275,000, not yet collected.

6. Sell a tangible fixed asset, collect bank deposit, original price 1,100,000, accumulated
depreciation value 330,000, selling price excluding VAT 800,000, VAT rate 10%.

7. At the end of the period, deduct input VAT from output VAT.

Requirements:

1. Journalizing those transactions.

2. Posting to ledgers of account 133 and account 333, determine the amount of VAT payable
(or the amount of VAT still deductible).

E4:

Company E applies the perpetual inventory system and calculates VAT using the deduction
method. Accounting documents at company E are as follows (unit: 1,000 VND):

1. Purchased 1,000 kg of raw material A for storage, unit price (excluding 10% VAT) is
210/kg, not yet paid. Cost of transporting materials to the warehouse is 25/kg (excluding
10% VAT), paid in cash.

2. Pledged (cầm cố) a batch of goods with cost of 600,000 to borrow 450,000, received the
full amount in cash.

3. Paid in advances 50,000 in cash to purchase goods A worth 176,000 (including 10%
VAT). (hàng chưa về

4. Received goods A into the warehouse, paid by bank deposit 126,000, the remaining
amount is paid by deposit in transaction 3.

5. Paid 100,000 cash at banks to deposit a car acquirement worth 1,600,000. (Deposit
contract has been signed: if in case of not continuing to buy goods or not transferring money
within the agreed time, the buyer will lose the deposit. On the contrary, if the seller does not
sell anymore, he will be compensated double the deposit amount).
6. The company does not buy the car (deposited in transaction 54), and will lose the deposit.

Requirement: Journalizing those transactions.

E5:
Company F accounts for inventories using perpetual system and calculates VAT using the
deduction method. Accounting documents at company F are as follows (Unit: 1,000 VND):
1. Paid 1,500,000 cash at banks as a deposit to buy a land worth 11,000,000 to hold
the purchased price.
2. Cash at banks transferred to company Q for advanced payment to buy a batch of
goods M worth 770,000 (including 10% VAT). The advance payment is 15% of the
value of the batch.
3. Issue a batch of goods N with a value of 330,000, the selling price (including 10%
VAT) of 660,000 to company P without collecting the money. If the buyer pays within 5
days from the date of receipt of the goods, it will receive a payment discount of 2% on
the total payment price.
4. Four days after receiving goods N, company P pays the remaining amount (after
deducting the payment discount received) by bank deposit.
5. Receives goods M (prepaid for the purchase in transaction 2).
6. Pays by bank deposit to company Q for the purchase of goods M.
7. Receives the land deposited in transaction 1. The company uses the deposit and
bank deposit to pay the seller.
Requirement: Journalizing those transactions.

E6:

ABC Company has some data related to the process of handling bad debts:

1) The balance at the end of year N of account 2293 is 0. At the end of year N+1, based on
reliable evidence collected about the bad debts due to the bankruptcy of Customer A, the
company determines the provision that needs to be set up for this company's receivable is
100 million VND.

2) At the end of year N+2, A has partially improved its financial situation and the company
determines the provision that needs to be set up for this debt is 70 million VND. At the same
time, the company calculates that the provision that needs to be set up for company B's debt
is 40 million VND.
3) Year N+3:

3.1. In August/N+3, B declared bankruptcy, the company decided to write off this unit's debt
of 100 million VND.

3.2. In October/N+3, the company collected the debt of Company C (which was written off
in year N) of 60 million VND in cash.

3.3. In November/N+3, it collected the bank deposit due to unit A paying off the debt of 400
million VND.

3.4. At the end of year N+3, the company determined that the provision to be made for bad
debts of Company D was 20 million VND.

Requirement: Journalizing the transactions arising in years N+1, N+2 and N+3.