Chapter 2
Financial
statements
1-4
I. Introduction about financial
statements
- Financial Statements include
BẢNG CÂN ĐỐI KẾ TOÁN
+ Balance Sheet/ Statement of Financial Position
+ Profit or loss statement / Income statement BẢNG BÁO CÁO HOẠT ĐỘNG
KINH DOANH
+ Cash flow statements
+ Notes to the financial statements
1-5
II. Statement of financial position
1. FORM
(Balance Sheet)
Balance Sheet
Date: 31st December, 20xx
Unit: VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS A.LIABILITIES
B. NON-CURRENT B. EQUITY
ASSETS
1-6
TOTAL ASSETS TOTAL LIABILITIES
AND EQUITY
II. Statement of financial position (Balance Sheet)
Exercise 1:
At a company on 12/31/X, the following figures are recorded:
(Unit: million VND)
•Account payable: 350
•Cash: 100
•Taxes and other amounts payable to the state: 50
•Wage payable: 50
•Bank deposits (Cash at bank): 500
•Bouns and welfare fund: 50
•Owner's equity: 2,000
•Retained earnings: 2,100
•Tangible assets: 1,100
•Intangible assets: X
•Loans and financial leases: 450
•Trading securities: 100
II. Statement of financial position (Balance Sheet)
At a company on 12/31/X, the following figures are recorded:
(Unit: million VND)
•Account receivables : 300
•Raw materials: 600
•Goods: 500
•Supplies: 50
•Depreciation of tangible assets: 500
Requirements:
a. Find X.
b. Prepare a balance sheet as of 12/31/X.
II. Statement of financial position (Balance Sheet)
Balance Sheet
Date: 31st December, 20xx
1. FORM
Unit: Million VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS 2.150 A.LIABILITIES 950
- Cash 100 - Account payable 350
- Bank deposits 500 - Taxes and other amounts… 50
- Trading securities 100 - Wage payable 50
- Account receivables 300 - Bouns and welfare fund 50
- Raw materials 600 - Loans and financial leases 450
- Goods 500
- Supplies 50
B.NON-CURRENT ASSETS 600+X B. EQUITY 4.100
- Tangible assets 1.100 - Owner’s equity 2.000
- Intangible assets X - Retained earnings 2.100
- Depreciation of tangible… (500)
1-9
TOTAL ASSETS 2.750+X TOTAL LIABILITIES AND 5.050
EQUITY
II. Statement of financial position (Balance Sheet)
Balance Sheet
Date: 31st December, 20xx
1. FORM
Unit: Million VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS 2.150 A.LIABILITIES 950
- Cash 100 - Account payable 350
- Bank deposits 500 - Taxes and other amounts… 50
- Trading securities 100 - Wage payable 50
- Account receivables 300 - Bouns and welfare fund 50
- Raw materials 600 - Loans and financial leases 450
- Goods 500
- Supplies 50
B.NON-CURRENT ASSETS 2.900 B. EQUITY 4.100
- Tangible assets 1.100 - Owner’s equity 2.000
- Intangible assets 2.300 - Retained earnings 2.100
- Depreciation of tangible… (500)
1-10
TOTAL ASSETS 5.050 TOTAL LIABILITIES AND 5.050
EQUITY
II. Statement of financial position (Balance
Sheet)
2. CASES THAT CHANGES STATEMENT OF FINANCIAL
POSITION
Events that are not Recorded as Events that are not Recorded as
Transactions Transactions
-A customer inquires about the - A customer buys a service.
availability of a service.
- A company hires a new - A company pays an employee
employee. for work performed.
- A company signs a contract - A company performs a service.
to provide a service in the
future
1-11
II. Statement of financial position (Balance
Sheet)
2. CASES THAT CHANGES STATEMENT OF FINANCIAL
POSITION
a/ ASSETS INCREASE, ASSETS DECREASE
Transaction 1: Withdraw bank deposit (cash at bank) and put into
cash fund 5 million VND
Transaction 2: Purchase some raw materials for a price of 1 million
VND and paid by using cash at bank
Transaction 3: Purchase some goods for a price of 20 million VND
and paid half by using cash at bank and and half in cash in hand
1-12
II. Transaction 1
Balance Sheet
Date: 31st December, 20xx
1. FORM
Unit: Million VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS 2.150 A.LIABILITIES 950
- Cash 105 - Account payable 350
- Bank deposits 495 - Taxes and other amounts… 50
- Trading securities 100 - Wage payable 50
- Account receivables 300 - Bouns and welfare fund 50
- Raw materials 600 - Loans and financial leases 450
- Goods 500
- Supplies 50
B.NON-CURRENT ASSETS 2.900 B. EQUITY 4.100
- Tangible assets 1.100 - Owner’s equity 2.000
- Intangible assets 2.300 - Retained earnings 2.100
- Depreciation of tangible… (500)
1-13
TOTAL ASSETS 5.050 TOTAL LIABILITIES AND 5.050
EQUITY
II. Transaction 2
Balance Sheet
Date: 31st December, 20xx
1. FORM
Unit: Million VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS 2.150 A.LIABILITIES 950
- Cash 105 - Account payable 350
- Bank deposits 494 - Taxes and other amounts… 50
- Trading securities 100 - Wage payable 50
- Account receivables 300 - Bouns and welfare fund 50
- Raw materials 601 - Loans and financial leases 450
- Goods 500
- Supplies 50
B.NON-CURRENT ASSETS 2.900 B. EQUITY 4.100
- Tangible assets 1.100 - Owner’s equity 2.000
- Intangible assets 2.300 - Retained earnings 2.100
- Depreciation of tangible… (500)
1-14
TOTAL ASSETS 5.050 TOTAL LIABILITIES AND 5.050
EQUITY
II. Transaction 3
Balance Sheet
Date: 31st December, 20xx
1. FORM
Unit: Million VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS 2.150 A.LIABILITIES 950
- Cash 95 - Account payable 350
- Bank deposits 484 - Taxes and other amounts… 50
- Trading securities 100 - Wage payable 50
- Account receivables 300 - Bouns and welfare fund 50
- Raw materials 601 - Loans and financial leases 450
- Goods 520
- Supplies 50
B.NON-CURRENT ASSETS 2.900 B. EQUITY 4.100
- Tangible assets 1.100 - Owner’s equity 2.000
- Intangible assets 2.300 - Retained earnings 2.100
- Depreciation of tangible… (500)
1-15
TOTAL ASSETS 5.050 TOTAL LIABILITIES AND 5.050
EQUITY
II. Statement of financial position
(Balance Sheet)
2. CASES THAT CHANGES STATEMENT OF FINANCIAL
POSITION
b/ ASSETS INCREASE, LIABILITIES / EQUITY INCREASE
Transaction 4: Purchase some supplies for a price of 8 million VND
on account payable.
Transaction 5: Borrow 800 million VND from the bank and receive
it by receiving cash at the bank
Transaction 6: Using cash at bank 20 million VND to pay taxes to
the State
Transaction 7: Use cash in hand to repay a loan of 30 million VND
1-16
II. Transaction 4
Balance Sheet
Date: 31st December, 20xx
1. FORM
Unit: Million VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS 2.158 A.LIABILITIES 958
- Cash 95 - Account payable 358
- Bank deposits 484 - Taxes and other amounts… 50
- Trading securities 100 - Wage payable 50
- Account receivables 300 - Bouns and welfare fund 50
- Raw materials 601 - Loans and financial leases 450
- Goods 520
- Supplies 58
B.NON-CURRENT ASSETS 2.900 B. EQUITY 4.100
- Tangible assets 1.100 - Owner’s equity 2.000
- Intangible assets 2.300 - Retained earnings 2.100
- Depreciation of tangible… (500)
1-17
TOTAL ASSETS 5.058 TOTAL LIABILITIES AND 5.058
EQUITY
II. Transaction 5
Balance Sheet
Date: 31st December, 20xx
1. FORM
Unit: Million VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS 2.958 A.LIABILITIES 1.758
- Cash 895 - Account payable 358
- Bank deposits 484 - Taxes and other amounts… 50
- Trading securities 100 - Wage payable 50
- Account receivables 300 - Bouns and welfare fund 50
- Raw materials 601 - Loans and financial leases 1.250
- Goods 520
- Supplies 58
B.NON-CURRENT ASSETS 2.900 B. EQUITY 4.100
- Tangible assets 1.100 - Owner’s equity 2.000
- Intangible assets 2.300 - Retained earnings 2.100
- Depreciation of tangible… (500)
1-18
TOTAL ASSETS 5.858 TOTAL LIABILITIES AND 5.858
EQUITY
II. Transaction 6
Balance Sheet
Date: 31st December, 20xx
1. FORM
Unit: Million VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS 2.938 A.LIABILITIES 1.738
- Cash 895 - Account payable 358
- Bank deposits 464 - Taxes and other amounts… 30
- Trading securities 100 - Wage payable 50
- Account receivables 300 - Bouns and welfare fund 50
- Raw materials 601 - Loans and financial leases 1.250
- Goods 520
- Supplies 58
B.NON-CURRENT ASSETS 2.900 B. EQUITY 4.100
- Tangible assets 1.100 - Owner’s equity 2.000
- Intangible assets 2.300 - Retained earnings 2.100
- Depreciation of tangible… (500)
1-19
TOTAL ASSETS 5.838 TOTAL LIABILITIES AND 5.838
EQUITY
II. Transaction 7
Balance Sheet
Date: 31st December, 20xx
1. FORM
Unit: Million VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS 2.908 A.LIABILITIES 1.708
- Cash 865 - Account payable 358
- Bank deposits 464 - Taxes and other amounts… 30
- Trading securities 100 - Wage payable 50
- Account receivables 300 - Bouns and welfare fund 50
- Raw materials 601 - Loans and financial leases 1.220
- Goods 520
- Supplies 58
B.NON-CURRENT ASSETS 2.900 B. EQUITY 4.100
- Tangible assets 1.100 - Owner’s equity 2.000
- Intangible assets 2.300 - Retained earnings 2.100
- Depreciation of tangible… (500)
1-20
TOTAL ASSETS 5.808 TOTAL LIABILITIES AND 5.808
EQUITY
II. Statement of financial position
(Balance Sheet)
2. CASES THAT CHANGES STATEMENT OF FINANCIAL POSITION
c/ LIABILITIES / EQUITY INCREASE, LIABILITIES / EQUITY
DECREASE
Transaction 8: Transfer from retained earnings to create bonus and
welfare fund 100 million VND
1-21
II. Transaction 8
Balance Sheet
Date: 31st December, 20xx
1. FORM
Unit: Million VND
ASSETS` AMOUNT LIABILITIES AND AMOUNT
EQUITY
A. CURRENT ASSETS 2.908 A.LIABILITIES 1.608
- Cash 865 - Account payable 358
- Bank deposits 464 - Taxes and other amounts… 30
- Trading securities 100 - Wage payable 50
- Account receivables 300 - Bouns and welfare fund 150
- Raw materials 601 - Loans and financial leases 1.220
- Goods 520
- Supplies 58
B.NON-CURRENT ASSETS 2.900 B. EQUITY 4.000
- Tangible assets 1.100 - Owner’s equity 2.000
- Intangible assets 2.300 - Retained earnings 2.000
- Depreciation of tangible… (500)
1-22
TOTAL ASSETS 5.808 TOTAL LIABILITIES AND 5.808
EQUITY
II. Statement of financial position (Balance Sheet)
Exercise 2:
At a company on 12/31/X, the following figures are recorded:
(Unit: million VND)
•Account payable: 20
•Cash: 1.110
•Taxes and other amounts payable to the state: 60
•Bouns and welfare fund: 120
•Owner's equity: 3.500
•Retained earnings: 160
•Tangible assets: 1,200
•Intangible assets: X
•Loans and financial leases: 500
•Trading securities: 200
II. Statement of financial position (Balance Sheet)
At a company on 12/31/X, the following figures are recorded:
(Unit: million VND)
•Account receivables : 240
•Raw materials: 600
•Goods: 370
•Supplies: 200
•Depreciation of tangible assets: 500
•Investment &development funds: 60
•Capital expenditure funds: 300
Requirements:
a. Find X.
b. Prepare a balance sheet as of 12/31/X.
III. INCOME STATEMENT (STATEMENT OF
PROFIT OR LOSS)
1. FORM
Income statement
Year X
Unit: million VND
ITEM Amount
1. Revenue from sales and service provision
2. Revenue deduction
3. Net revenue from sales and service provision (= Row 1 – Row 2)
4. Cost of goods sold
5. Gross profit (= Row 3 – Row 4)
6. Financial revenue
7. Financial expense
8. Selling costs
9. Administrative costs
10. Net profit from operation (= Row 5 + Row 6 – Row 7 – Row 8 – Row 9)
11. Other income
12. Other expense
13. Other profit (= Row 11 – Row 12)
14. Total accounting profit before taxs (= Row 10 + row 13)
III. INCOME STATEMENT
* NOTE
1. REVENUE DEDUCTION
- Trade discount:
- Sale discount
- Sales return
2. FINANCIAL REVENUE:
- Receive interest from the bank
- Profits from investment activities
3. FINANCIAL EXPENSE
- Pay interest for bank
- Loss from investment activities
III. INCOME STATEMENT
* Exercise
At a company in the fiscal year N, the following economic transactions occurred:
•Transaction 1: The company sold some goods with a selling price of 800 million
VND. The cost of goods sold for these goods is 350 million VND.
•Transaction 2: The company sold some finished products with a selling price of
1,500 million VND. The cost of goods sold for these products is 850 million
VND.
•Transaction 3: The company sold some goods with a selling price of 1,200
million VND. The cost of goods sold for these goods is 710 million VND.
•Transaction 4: The company has an office rental expense of 40 million VND.
•Transaction 5: The company has a television advertising expense of 35 million
VND.
•Transaction 6: The company has salary expenses of 80 million VND for the
director, 20 million VND for the accountant, and 45 million VND for the sales
staff.
•Requirement: Prepare an Income Statement and company pays no income tax
expense
