Joint Circular No. 80-LB/TT provides guidance on implementing accounting regulations for non-state production and business activities applicable to agricultural cooperatives.

CIRCULAR

DECISION NO. 80/LB-TT OF DECEMBER 30, 1991 OF THE JOINT MINISTRY
OF FINANCE - AGRICULTURE AND FOOD INDUSTRY
GUIDING THE IMPLEMENTATION OF THE ACCOUNTING SYSTEM FOR NON-PUBLIC ENTERPRISE PRODUCTION AND BUSINESS APPLICABLE TO AGRICULTURAL COOPERATIVES.

The Ministry of Finance issued Decision No. 598/TC-CĐKT dated December 8, 1990 to promulgate the accounting system for non-public enterprise production and business, uniformly applicable throughout the country for individual households, small-scale industrial households, private enterprises, cooperatives, collective economic organizations of social groups and administrative agencies operating in industries such as manufacturing, agriculture and forestry, construction, transportation, natural resource exploitation, aquaculture...

To provide localities with a basis to guide agricultural cooperatives in uniformly implementing the accounting system for non-public enterprise production and business, the Joint Ministry of Finance - Agriculture and Food Industry guides as follows:

I - ACCOUNTING SYSTEM

Apply the accounting account system for non-public enterprise units with the following amendments and supplements:

1 - Not using the following accounts:

- Account 21 "Raw materials, materials"

- Account 36 "Costs according to budget"

- Account 68 "Social insurance payment"

- Account 69 "Payment to labor and shareholders"

2 - Amend the name, accounting content, and supplement or amend some sub-accounts of the following accounts:

a) Account 24 "Products, goods" is renamed "Materials, products." This account records the situation of the entry, exit, and inventory of materials, products, and goods produced by the cooperative or purchased from outside.

b) Account 40 "Consumption and results": Reflects the total costs and revenues of the volume of agricultural products, trades, and services managed by the cooperative that have been consumed during one accounting period.

Account 40 includes three sub-accounts:

401 - Product consumption: reflects product consumption. In cases where products have already been recorded once through income based on the general income calculation price of the cooperative, when transferring products for consumption, the debit side of this sub-account records at the income calculation price, the credit side records at the actual selling price, and the difference in product consumption is recorded to increase the relevant source. In cases where products have not yet been calculated for income, the consumption accounting is conducted as prescribed in the non-public enterprise accounting system.

402 - Service business activities: reflects the costs and revenues of service activities serving agricultural production and other services organized and managed by the cooperative. Any differences are transferred to Account 70 "Income and Distribution."

403 - Other activities: reflects the costs and revenues of other activities occurring within the cooperative, such as joint venture activities, liquidation activities, sale of fixed assets...

c) Account 62 "Receivables and Payables" has changes in the reflected content as follows:

621 - Receivables: reflects the settlement situation of receivables of the cooperative with entities inside and outside the cooperative (excluding contracted products), including receivables from buyers, other receivables from external units, receivables from advance payments, receivables for compensation of material losses, loans of materials and capital, penalties for breach of economic contracts.

622 - Payables: reflects the settlement situation of debts payable between the cooperative and units and individuals inside and outside the cooperative, including payables to sellers and other payables.

623 - Settlement with contracted recipients: reflects the amount the cooperative must collect and the settlement situation of contracted recipients with the cooperative regarding contracted products and other amounts payable as stipulated in the contracting agreement (including both agricultural contracting - crops and livestock and trade and service contracting).

For cases of product contracting, record both the debit and credit sides of Sub-account 623 at the same price, which can be the state tax price for grain-based income or the cooperative's income calculation price. When the contracted recipient delivers products to the cooperative and there is a price difference (due to the state adjusting the grain tax price higher than the income calculation price...), on Sub-account 623 "Settlement with contracted recipients," still record according to the income calculation price, while the difference between the old price (income calculation price) and the new price is recorded in Account 70 "Income and Income Distribution."

Do not reflect in Sub-account 623 "Settlement with contracted recipients" any advances or loans made by the cooperative to contracted recipients.

d) Account 70 "Income and Income Distribution." The income reflected in this account includes:

- The amount of income from contracted products that contracted recipients must settle;

- The difference in product consumption belonging to business capital (excluding products belonging to cooperative funds);

- Reflecting the income from service business activities and other activities organized and managed by the cooperative.

The above income is distributed as follows:

- To offset losses and consider them as losses;

- To pay taxes to the State;

- To establish cooperative funds;

- To distribute profits to joint venture capital contributors;

- To distribute additional income (outside contracting) to cooperative members.

g) Account 80 "Legally Prescribed Capital Source" is renamed "Production and Business Capital Source."

This account reflects the self-owned capital source of the cooperative used for production and business.

With these amendments and supplements, the accounting account system applicable to agricultural cooperatives consists of 15 accounts. The list of accounts and the accounting content of certain special transactions see Appendix No. 1 attached.

II - LEDGER

1. For organizations with a limited term according to events or seasons without legal person status, they shall implement single-entry bookkeeping and open the following four ledgers:

- Cash ledger;

- Materials and products ledger;

- Expense ledger;

- Revenue ledger.

Ledger models and recording methods are specified in Appendix No. 2 attached. Additionally, any unit with accounts receivable or payable should open a ledger to track such accounts.

2 - For cooperatives with legal person status, they shall implement double-entry bookkeeping and the Journal-Ledger form, and the ledger models specified in Appendix No. 4 for private enterprises and cooperatives under the non-public enterprise accounting system. Specifically, Model 10-SKT/NQD "Labor tracking and wage payment ledger" is replaced by Model 10-SKT/NQD "Product settlement ledger with contracted recipients." 

The model and method for recording the "Product payment with contractor receivers" ledger and the list of ledgers used for agricultural cooperatives of this type are specified in Appendix No. 2 attached hereto.

III- ACCOUNTING DOCUMENTS AND REPORTS

Implement according to the regulations under the non-state accounting system.

We request the People's Committees of the provinces and centrally governed cities to guide and inspect the implementation of the non-state accounting system issued pursuant to Decision No. 598 TC/CĐKT dated December 8, 1990 of the Ministry of Finance and in accordance with the joint Circular guidelines for agricultural cooperatives from January 1, 1992 onwards. During the implementation process, if there are any difficulties, please report to the Ministry of Finance (Accounting System Department) and the Ministry of Agriculture and Food Industry (Policy and Management Department for Agriculture and Food Industry) for further guidance and study./.