Books of Accounts and Records Flashcards
who are required to keep books of account an records?
All corporations, companies, partnerships or persons required to pay internal revenue taxes are required to keep and use relevant and appropriate set of bookkeeping records.
what books and records should be kept?
- journal
- ledger
- simplified set of bookkeeping records
it is a book of general entry in which the happenings or transactions affecting the business of the taxpayer are recorded consecutively day by day as they occur
journal
it is a book of final entry to which are posted the classified accounts or items of all transactions entered in the journal or its equivalent
ledger
it must be duly authorized by the Secretary of Finance and consists of:
(a) record of daily sales and cash receipts
(b) record of daily purchases, expenses and cash disbursements
(c) record of summary transactions
(d) yearly statements of net worth and operations which may be in combined form or in separate booklets
simplified set of bookkeeping records
do the books need to be registered?
yes, the taxpayer must present them for registration and approval with the Revenue District Office of the province or city where the business is carried on
in what language do the books need to be kept?
The books must be kept in a native language, English or Spanish.
an accountant who has no interest in the business of the taxpayer, not subject to the control and supervisions of the taxpayer and must be employed exclusively to audit the books of accounts of the taxpayer and not for any other purpose.
independent certified public accountant
are the books subject to examination and inspection?
yes, the books and records are subject to examination only once a year
what is the period for the preservation and retention of books and records?
the books and records of the taxpayer must be preserved for a period of 3 years from the date of the last entry made thereon
