Hello Lawnet. I have a question as below. What are principles and components of Account 420 – Customer’s deposits of microfinance institutions in Vietnam? Thank you!
Pursuant to Article 29 of the Circular 05/2019/TT-BTC (takes effect from 01/04/2019) stipulating principles and components of Account 441 – Entrusted loans of microfinance institutions in Vietnam as follows:
1. Accounting principles
a. This account shall be used for reflecting amounts deposited at microfinance institutions, including compulsory savings and voluntary savings of microfinance institutions and other customers.
b. Microfinance institutions shall have to keep a detailed journal of deposits classified by customers and deposit terms, etc.
2. Components and contents of this account
Debit side:
Withdrawn amounts.
Credit side:
- Deposited amounts.
- Interest added to principal of customers.
Balances on the Credit side:
Reflecting amounts deposited at microfinance institutions at end of an accounting period.
Above are principles and components of Account 420 – Customer’s deposits of microfinance institutions in Vietnam.
Best regards!