Meaning of the Phrase "Last Entry"

July 24, 1958 BIR RULING NO. 401-58 Mr. Marcelino A. David P.O. B. No. 721 484 Rosario St., Manila S i r : In connection with your letter dated June 10, 1958, I have the honor to inform you that the phrase "last entry" has no reference to the last day of the calendar or fiscal year. The term refers to a particular business transaction or an item thereof that is entered or posted last or latest in the book when the same was closed. For purposes of determining the period of at least five years within which the books shall be kept, the same shall be reckoned from the date of the last entry in said book. cdt Sales invoices, vouchers, journal vouchers and receipts supporting the entries or postings in the books of accounts must be preserved for five years counted not from the dates of the accomplishment or issuance thereof but also from the date of last entry of the books of accounts to which they relate. Even in cases of those who have retired from business and whose books have already been examined, said books must likewise be preserved for five years from the date of last entry therein. The observations contained in the 4th paragraph of your letter is not correct. Subsidiary books form part of taxpayers' accounting system and is subject to the same rules and regulations as to their keeping, translation, production and disposition, as are applicable to the journal and ledger (Sec. 335, Tax Code). Entries in subsidiary books should therefore, be posted within seven days from the date the transactions were effected pursuant to Section 8 of Revenue Regulations No. V-1. cdtech Very truly yours, (SGD.) MELECIO R. DOMINGO Acting Commissioner of Internal Revenue