Business Firm Cannot do Away with the Journal Book
BIR Ruling No. 576-59 • Bureau of Internal Revenue (BIR) Issuances • Rulings (Numbered) • Oct 27, 1959
Full text
October 27, 1959 BIR RULING NO. 576-59 Mr. Eliseo O. Zabate 1979-C Leveriza Street Pasay City S i r : In reply to your letter dated September 30, 1959, I have the honor to inform you that a business firm cannot do away with the journal book and use vouchers instead as the basis for posting entries to the general ledger. A voucher is not a book of original entry as contemplated in the bookkeeping regulations. Section 334 of the National Internal Revenue Code provides that entities and persons required by law to pay internal revenue taxes shall keep a journal and a ledger, or their equivalents. A journal, in order to comply with the provisions of the bookkeeping regulations, must contain all the transactions affecting the business. Inasmuch as the accounting procedure proposed in your letter would not reflect all the transactions of the business, the same would be in violation of Revenue Regulations V-1, otherwise known, as the Bookkeeping Regulations. cdta Please be guided accordingly. Very truly yours, (SGD.) MELECIO R. DOMINGO Commissioner of Internal Revenue
Ask what this means for your situation
The assistant quotes the passage it relies on and links the source, so you can check every figure it gives you.