Keeping of Separate Books of Accounts Covering the Wholesale Dealer's Transactions

February 10, 1960 BIR RULING NO. 057-60 The Philippines Free Press Free Press Building 706 Rizal Avenue M a n i l a Attention : Information Department Gentlemen : Hereunder are the answers to the queries of Mr. Sulpicio Agna which you have requested this Office to furnish you in your letter dated November 6, 1959. QUERY: In complying with the provisions to "keep a separate record or Books of Accounts for all sales, deliveries, exchanges or barters of articles subject to specific tax" is it enough to keep records of accumulated totals in the aggregate of detailed transactions of Purchases and Sales of all articles subject to specific tax separate from all the other records of the business? If not, what other details are required to be kept in the separate record or Books of Accounts? ANSWER: The requirement for the keeping of separate books of accounts covering the wholesale dealer's transactions in articles subject to specific tax prescribed by Section 5 of Revenue Regulations No. V-62 had already been revoked by Revenue Regulations No. V-66. QUERY: At the end of the accounting year, is it required to prepare a separate statement of the results of operations for articles subject to specific and another statement for articles not subject to specific tax? If it is so required, please may I know what part of the general overhead expenses is permitted by the Bureau of Internal Revenue for charging to articles subject to specific tax. ANSWER: If the writer means by 'statement' a 'balance sheet and profit and loss' statement, only a single statement is required of him to be prepared covering all his business operations, which statement shall accompany his income tax return. As requested the basic inquiry is herewith returned. Very truly yours, MELECIO R. DOMINGO Commissioner of Internal Revenue