Food Ingredients are Chargeable to Purchase or Expense Accounts

September 19, 1967 BIR RULING NO. 035-67 Mr. Leon g. Aquino P. O. Box 70 Baguio City S i r : This refers to your letter dated January 7, 1967 requesting information as to what column in the restaurant operators' books of accounts should the cost of the various foodstuffs like soy, tomato and other kinds of sauce, calamansi, salt and other items that are placed on serving tables to be eaten or used by customers be entered. In reply, I have the honor to inform you that the items enumerated above are considered ingredients of the foods served and, therefore, forming part of the cost thereof. Therefore, such items are property chargeable to purchase or expense accounts. LLjur Very truly yours, (SGD.) MISAEL P. VERA Commissioner of Internal Revenue