Use of Loose-Leaf General Journals and General Ledgers

May 18, 1959 BIR RULING NO. 264-59 The Philippine Trust Company M a n i l a Gentlemen : In reply to your letter dated March 17, 1959 wherein you requested authority for your branch establishment at Ermita, Manila to use loose-leaf general journals and general ledgers, I have the honor to inform you as follows: The second paragraph of your aforesaid letter reads: cdi "In our usual statement to your office, we certified the number of pages of our bound general ledger and general journal of the Head Office and our Ermita Branch." From the foregoing, it is clear that while you are still requesting authority for your Ermita Branch to use general journals and ledgers in loose leaf form, the truth is that the said branch establishment has already been using the said forms. The act for which you have requested authority was already done. The unauthorized use of loose leaf general journals and general ledgers is a violation of section 4 of the Bookkeeping Regulations and punishable under section 352 of the Tax Code. Accordingly, while you request that your Ermita Branch be authorized to use journals and ledgers in loose leaf form is hereby granted under the same terms and conditions of the authority granted your main office as herein modified, nevertheless, you are criminally liable for the use of loose leaf journals and ledgers prior to this authority. It is, therefore, suggested that you pay the sum of P300.00 by way of extrajudicial settlement of the penal liability arising from your violation of the Bookkeeping Regulations. Please be further informed in this connection that, while there was no mention thereof in the original authority granted you, hereafter, you must, before using loose-leaf journals and ledgers, present them for approval and registration, pursuant to section 19 of the Bookkeeping Regulations. lexlib The authority granted your main office to use loose-leaf general journal and general ledger on July 2, 1953 is, therefore, hereby modified accordingly. Very truly yours, (SGD.) JOSE ARAAS Commissioner of Internal Revenue