Registration of Simplified Set of Bookkeeping Records for Small Businesses

July 5, 1972 REVENUE MEMORANDUM CIRCULAR NO. 34-72 SUBJECT : Registration of Simplified Set of Bookkeeping Records for Small Businesses TO : All Internal Revenue Officers & Others Concerned The use of the Simplified Set of Bookkeeping Records prepared by Mr. Clemente Uson, C.P.A., and Atty. Gerardo F. Santos, has been authorized by the Acting Secretary of Finance in his 2nd indorsement dated June 23, 1972 to this Office, having been found to conform with the requirements of Revenue Regulations No. V-1 as amended by Revenue Regulations No. V-43. The said simplified set of bookkeeping records for small businesses may, therefore, be accepted for registration and used for records purposes, under Section 334 of the National Internal Revenue Code, or amended. ENFORCEMENT All concerned are enjoined to be guided accordingly. aisa dc MISAEL P. VERA Commissioner of Internal Revenue ANNEX 2nd Indorsement June 23, 1972 Respectfully returned to the Commissioner of Internal Manila. It appearing from the sample submitted that the "Simplified Bookkeeping Record for Small Businesses" prepared and designed by Mr. Clemente Uson, C.P.A., is in accordance with the requirements of Revenue Regulations No. V-1, as amended, otherwise known as the Bookkeeping Regulations, its use for bookkeeping record purposes, under Section 334 of the National Internal Revenue Code, as amended, is hereby approved. ALFREDO PIO DE RODA, JR. Acting Secretary cc: Mr. Clemente Uson ANNEX A 1st Indorsement April 28, 1972 Respectfully forwarded to the Honorable, the Secretary of Finance, the self-explanatory letter dated March 8, 1972 of Mr. Gerardo F. Santos, together with its enclosures, requesting for approval and/or authority to print and register "Simplified Set of Bookkeeping Records for Small Businesses." Upon review and appraisal, it has been ascertained that the same has substantially complied with and meets all the requirements of Revenue Regulations No. V-1, as amended, otherwise known as the Bookkeeping Regulations. It is, therefore, respectfully recommended that the aforesaid request/application be granted and/or approved. Records show that the applicant, together with Mr. Clemente Uson, has been granted authority to print "Simplified Set of Bookkeeping Records for Professionals", the authority to register the same being contained in Revenue Memorandum Circular No. 9-73 dated January 21, 1972 as printed at the back page of the said "Simplified Set of Bookkeeping Records for Professionals", copy of which is enclosed herewith as mentioned above. MISAEL P. VERA Commissioner of Internal Revenue ANNEX B March 8, 1972 The Commissioner Bureau of Internal Revenue Manila Sir: After putting out our Simplified Set of Bookkeeping Records for Professionals, which was approved and authorized by your office and the Honorable Secretary of Finance, under Rev. Regulation No. 9-37 dated January 21, 1972, we are pleased to find out that there is a great demand for said bookkeeping record from members of the different professions all over the Philippines and this means that more professionals will be declaring their incomes and more revenues will be collected by the government. With this encouraging response, we decided to put out another simplified set which will be for use by the different small businesses whose gross quarterly sales do not exceed P5,000.00, which is prepared and designed by Dean Clemente Uson, C.P.A. This do-it-yourself book of accounts is intended for small businesses which includes Trading and Merchandising firms, such as Drugstores, Books and Magazines stores, Appliance stores, Textile stores, Gift shops, Photographic Studios & Supplies, Sari-Sari stores; and also Service shops such as: Appliance repair shops, Auto Repair shops, Radio-TV Repair shops, Tailoring & Dress shops, Eateries and Bars, Laundries, House and Sign Painting shops and many others, provided that their gross quarterly sales do not exceed P5,000.00. We are submitting herewith a sample of this pamphlet entitled "Simplified Bookkeeping Record for Small Businesses", the mechanics of which is embodied in the Instructions written on its first and last pages and for which we respectfully request that it be approved and accepted as official bookkeeping record for small businesses. Hoping that this request will merit your kind and favorable consideration, we remain Very truly yours, SANTOS BOOK STORE By: ATTY. GERARDO F. SANTOS ANNEX C Distributed By: Santos Bookstore 1667 C. M. Recto Ave. Sta. Cruz Manila Simplified Bookkeeping Record For Small Businesses _______________________ Name of Taxpayer or Business (Tax Account No _______) _______________________ Kind of Business _________________________ Business Address _________________________ Citizenship (Prepared and Designed by: Clemente Uson, C.P.A.) BUREAU OF INTERNAL REVENUE (Office of the Regional Director) (To be accomplished by the owner as per Sect. 19 of Rev. Reg. No. V-1) Taxpayer Business Name Business Address Citizenship Res. Cert. A- Issued at on ______197__; _____, 197__. ACR/LC NO ______ Date iss.___ Kind of business ____________ Int. Rev. P.T.R. No.___________ Date of issue of P.T.R.________ Kind of Book_______________ Vol. No. of this Bk. to be Reg___ Vol. No. of preceding Bk_______ Date registered ________ 197__ BUREAU OF INTERNAL REVENUE (Office of the Regional Director) This SIMPLIFIED BOOKKEEPING RECORD, Vol. ___ with 16 sheets is approved on this ____ day of ____ 197_____ for purposes of Regulations No. V-1. Volume No. ____ of this SIMPLIFIED RECORD was approved on the ___ day of ______, 197___. __________________ Internal Revenue Officer Space below is for Certificate by Revenue Examiner) NOTES 1. Renewal of the annual privilege tax receipt (P.T.R.) without penalty is due and payable on or before the 20th day of January of each year. 2. Monthly payment of percentage taxes for any month without penalty is due on or before the 20th day of the succeeding month. 3. The deadline for filing income tax return for any year without penalty is April 15 of the following year. 4. Persons who are required to be bookkeeping records shall comply with all the requirements regarding preparation, issuance, use, keeping, presentation and preservation of invoices, receipts, vouchers, etc. as prescribed by Revenue Regulations No. V-1. (Copyright 1972 by Clemente Uson) INSTRUCTIONS I. GENERAL 1. This simplified bookkeeping record is intended for small businesses whose gross receipts or earnings are not more than P5,000.00 in any quarter. The set is designed especially for small trading businesses including sari-sari stores, as well as for establishments or shops that offer services for consideration as their main business. 2. The set is designed for recording transactions on a cash basis of accounting, But for merchandising businesses which are required to record their credit transactions of purchases and sales, provision is made in the set for recording these transactions that do not involve cash received or paid out at the time they take place. 3. Revenue regulations require of the taxpayer evidence of his transactions for purposes of assessment of taxes due from him. Hence, it is important that the entries in this record are supported by proper evidences of the transactions. 4. For the transactions to be recorded in this set, three accounting forms are to be used, namely: (1) the official receipt , for cash received; (2) the cash voucher , for cash paid out; and (3) the sales invoice , for merchandise or services sold either for cash or on credit. A supply of all three forms may be purchased from stationery stores that carry them in open stock, unless the taxpayer desires to have his own forms especially printed for him with his business name indicated thereon. 5. If purchased, the official receipt and sales invoice forms which should be in duplicate and usually in booklets of 50 numbers to a stub, should be pre-numbered, from 1 up, by the taxpayer himself. They should also be stamped with his business name by means of a rubber stamp expressly made for the purpose. All blank booklets of the receipt and invoice should be registered with any BIR office, together with this set, before using them. 6. As a receipt of invoice is issued, the duplicate thereof should be retained in the stub, for basis of entry in this set. All used receipts and invoices should be preserved in pursuance of revenue regulations. 7. The cash voucher form, after accomplished, is the evidence of cash disbursement. Only one copy of the voucher need be prepared for each cash payment. The cash vouchers should be numbered as prepared, from 1 up, and all evidences of the payment, if any, should be attached to the voucher. After their entry in this set the vouchers should be filed in numerical order in a convenient folder, and should be preserved, like the receipts and invoices. II. RECORDS OF DAILY CASH RECEIPTS AND SALES (Form 1) 1. This record is for entry of all cash received from all sources including the owner's cash investment in the business, and also of the sales on credit. An official receipt is issued for any cash received from any source except from a cash sale for which a cash invoice is to be issued instead. For a sale on credit, a charge invoice is issued. The same invoice form may be used for both kinds of sale, provided that as an invoice is issued it is properly marked with "CASH" or "CHARGE" as the case may be. 2. The receipts issued are entered individually in this record. But only the total of all the invoices issued for a day, broken down into cash sales and charge sales , is covered by one entry only in this record. 3. The amount of cash received is entered under two money columns: first, under column 3 on the left-hand side of the page; then again under any of columns 7, 8 or 10, on the right-hand side, depending on the source of the cash. If entered under column 10, the source of the cash should also be indicated under column 9 by an appropriate word heading denoting the source. A collection made from a customer for a previous sale to him on credit should be entered under column 7. 4. The total value of all invoices issued for a day, if any, is entered in the following manner: the total amount of cash sales representing cash received is entered under column 3; the total of charge sales, under column 4; and the sum of both cash and credit sales, under column 6. 5. The total of the two money columns on the left-hand side of the page (column 3 and 4) should always be equal to the total of all the money columns on the right-hand side (columns 6, 7, 8 and 10). 6. If the business for which this set is to be used is engaged in merchandising, the words "Service Income" in the heading of column 6 should be deleted; if not engaged in trading but in offering services for consideration as its main business, delete the word "Sales". 7. At the end of each month, all money columns shall each be totalled separately. All (Missing page-continuation) FORM 1 FORM 2 FORM 1 RECORDS OF CASH RECEIPTS AND SALES FORM 2 RECORDS OF PAID CASH DISBURSEMENTS AND PURCHASES MONTHLY SUMMARY OF RECEIPTS, DISBURSEMENTS, SALES AND PURCHASES STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS (Data to be taken from Form 3. Column numbers referred to below are those in Form 3) FOR YEAR 197__ 1. Cash at the beginning of the years P______ Add: Receipts during the year: 2. From cash sales Total sales (column 3) P______ Less: Credit sales (column 2) ______ _______ Cash sales P______ 3. Collections from trade debtors (column 4) ______ 4. Cash proceeds from borrowings (column 5) ______ 5. Other incomes received (column 6) ______ 6. Cash investment in the business by Owner ______ 7. Cash from other sources ______ 8. ______ 9. ______ _______ 10. Total cash received during the year (column ) ______ _______ 11. Total cash at beginning and receipts for the year P______ Deduct: Cash paid out during the year: 12. Paid out for cash purchases Total merchandise/materials purchased (column 10) P______ Less: Credit purchases (column 9) ______ _______ Cash purchases of mdse./materials P______ 13. Paid for salaries and wages (column 12) ______ 14. Business expenses (column 11) ______ 15. Paid to trade creditors (column 13) ______ 16. Taxes and licenses ______ 17. Interest payments ______ 18. Repayments for borrowings (loans) ______ 19. Purchase of furniture/equipment ______ 20. Cash withdrawals by Owner ______ 21. Other disbursements ______ 22. ______ 23. ______ 24. ______ 25. ______ _______ 26. Total cash paid out during the year (column 8) P______ _______ 27. Cash balance at the end of the year * P______ _______ _________ REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE BUREAU OF INTERNAL REVENUE Manila January 21, 1972 REVENUE MEMORANDUM CIRCULAR NO. 9-73 SUBJECT : Registration of Simplified Set of Bookkeeping Records for Professionals To all Internal Revenue Officers and Others Concerned : The use of the Simplified Set of Bookkeeping Records prepared by Mr. Clemente Uson, C.P.A. and Atty. Gerardo F. Santos, has been authorized by the Secretary of Finance, having been found to conform with the requirements of Revenue Regulation No. V-1 as amended by Revenue Regulation No. V-43. The said simplified set of bookkeeping records for professionals may, therefore, be accepted for registration and used for record purposes, under Section 334 of the Internal Revenue Code, as amended. ENFORCEMENT All concerned are enjoined to be guided accordingly. aisa dc MISAEL P. VERA Commissioner of Internal Revenue Distributed By: SANTOS BOOK STORE 1667 C. M. Recto Ave. Sta. Cruz, Manila Philippines SIMPLIFIED SET OF BOOKKEEPING RECORDS FOR PROFESSIONALS _______________________ Name of Taxpayer (Tax Account No. _____) _______________________ Profession or Business _______________________ Business Address _______________________ Citizenship Prepared and Designed by: CLEMENTE USON, C.P.A. & ATTY. GERARDO F. SANTOS SIMPLIFIED SET OF BOOKKEEPING RECORDS FOR PROFESSIONALS _______________________ Name of Taxpayer (Tax Account No._____) _______________________ Profession or Business _______________________ Business Address _______________________ Citizenship Prepared and Designed by: CLEMENTE USON, C.P.A. & ATTY. GERARDO F. SANTOS Form 5-A STATEMENT OF NET WORTH As at Dec. 31, 197____ Cash on hand P______ 2. Investment (stocks and bonds) ______ 3. Equipment less depreciation # ______ 4. Buildings less depreciation ______ 5. Land ______ 6. Other assets ______ ________ 7. Total assets P______ Deduct: Outstanding Obligations: 8. Loans unpaid P______ 9. Other debts outstanding ______ ________ 10. Total Obligations ______ 11. NET WORTH P______ ======= Form 5-B STATEMENT OF INCOME AND EXPENSE For year Ended Dec. 31, 197___ (Data to be taken from Form 4) INCOME: 1. Professional fees P______ 2. Income from rents ______ 3. Cash dividends received ______ 4. Interest earned ______ 5. Income from farming ______ 6. Other incomes ______ ________ 7. Total gross income for year P______ Deduct: Expense and Loss: 8. Office expenses P______ 9. Taxes ______ 10. Interest paid ______ 11. Repairs ______ 12. Miscellaneous expenses ______ 13. Other expenses and losses ______ 14. Estimated depreciation ______ ________ 15. Total deductions ______ ________ 16. Net Income for the year P______ ======= Form 3 MONTHLY SUMMARY OF RECEIPTS AND DISBURSEMENTS Form 4 STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS For Year 197___ (Data to be taken from Form 3) 1. Cash on hand at beginning of year * P______ Add: Receipts during the year: 2. Professional fees P______ 3. Income from rents ______ 4. Cash dividends received ______ 5. Interest earned ______ 6. Income from farming ______ 7. Other incomes ______ 8. Cash proceeds from borrowings (loans) ______ 9. Cash from other sources ______ 10. ______ ________ 11. Total cash received during year P______ ________ 12. Total of cash at beginning and receipts for year P_____ Deduct: Cash paid out during the year: 13. Office expenses P______ 14. Taxes ______ 15. Interest paid ______ 16. Repairs ______ 17. Miscellaneous expenses ______ 18. Purchase of stocks and/or bonds ______ 19. Purchase of equipment # ______ 20. Loans repaid (borrowings) ______ 21. Other disbursements ______ 22. ______ ________ 23. Total cash paid out during the year P______ _______ 24. Cash balance: On hand at end of year P______ ======= RECORD IF DAILY CASH RECEIPT RECORD OF DAILY DISBURSEMENTS BUREAU OF INTERNAL REVENUE (Office of the Regional Director) (To be accomplished by the owner as per Sect. 19 of Rev. Reg. No. V-I) Taxpayer Business Name Business Address Citizenship Res. Cert. A _______ B _____ Issued at on _______, 197___,____, 197___ ACR/LC No._____ Date Iss. Kind of Business Int Rev. P.T.R. No. Date of Iss. of P.T.R. Kind of Book Vol. No. of this Bk. to be Reg. Vol. No. of preceding Bk.____ Date ____ BUREAU OF INTERNAL REVENUE (Office of the Regional Director) This SIMPLIFIED BOOKKEEPING RECORD, Volume ____ with 16 sheets is approved on this ____day of _________197____, for purposes of Regulations No. V-1. Volume No.________ of this SIMPLIFIED BOOKKEEPING RECORDS was approved on the ____day of _________, 197___ __________________ Internal Revenue Officer (Space below is for Certificate of Examination by Revenue Examiner) NOTES 1. Renewal of the annual privilege tax receipt (P.T.R.) without penalty is due and payable on or before the 20th day of January of each year. 2. Monthly payment of percentage taxes for any month without penalty is due on or before the 20th of the succeeding month. 3. The deadline for filing income tax return for any year without penalty is April 15 of the following year. 4. Persons who are required to keep bookkeeping records shall comply with all the requirements regarding preparation, issuance, use, keeping, presentation and preservation of invoices, receipts, vouchers, etc. as prescribed by Revenue Regulations No. V-1. (Copyright 1972 by Clemente Uson & Gerardo F. Santos) INSTRUCTIONS I. GENERAL 1. This simplified set of book-keeping records is intended for practising professionals. It may also be used to advantage by individuals who, although not engaged in any trading business, have to file income tax returns. The set is designed for recording transactions on the cash basis method of accounting. Transactions that do not involve either cash received or cash paid are not for entry in this record. 2. Revenue regulations require of the taxpayer evidence or proof of his transactions for purposes of assessment of taxes due from him. Hence, it is important that the entries in this record are supported by proper evidence of the transactions. 3. For the transactions to be recorded in this set, two cash forms shall be used, namely, (1) the official receipt for cash received; and (2) the cash voucher for cash paid out. A supply of both forms can be purchased from stationery stores that carry them in open stock, unless the taxpayer desires to have his own forms specially printed for him. 4. If purchased, the official r eceipt form which is in duplicate and usually in booklets of 50 numbers to a stub should be pre-numbered consecutively from 1 up by the taxpayer himself. It should also be stamped with his name by means of a rubber stamp expressly made for the purpose. All blank booklets of the receipt to be used should be registered with any BIR office, together with this set. As a receipt is issued or used, the duplicate thereof should be retained in the stub, as basis of entry in the Record of Daily Cash Receipts. All stubs of used receipts should be preserved in pursuance of revenue regulations. 5. The cash voucher form, after accomplished, is the evidence of cash disbursement for entry in the Record of Daily Cash Disbursements. Only one copy of the voucher need be prepared for each payment. Cash vouchers should be numbered, as prepared, from 1 up. After the vouchers are entered, they should be filed in numerical order, and preserved like the official receipt, to be readily available to revenue examiners. II. RECORD OF DAILY CASH RECEIPTS (FORM 1) 1. This records is for entry of all official receipts issued for cash received. 2. The amount of each receipt is entered under two money columns: first, under column 4 (amount received); then again under any of columns 5, 6 and 8, depending on the source of the cash. If entered under column 8, the source of the cash should also be indicated under column 7, by an appropriate word heading like "dividends" or "rents". 3. The total of columns 5, 6 and 8 should always be equal to the total of column 4. 4. If the user of this set is not a practicing professional, the heading of column 5 (professional fees) should be substituted by another heading that denotes a source of income of the user, which occurs with relative frequency, like "rents" for one who owns buildings for rent, or "dividends" for another who has many investments in securities of corporation stock. 5. At the end of each month, all money columns shall each be totalled. All totals, separately for each column, shall be written on the same horizontal line immediately below that where the last receipt number was entered. The totals are then ruled off, Ruling off means that two parallel lines about half a millimeter apart are drawn underneath the figures representing the totals. 6. The summary for each month is then entered in the Monthly Summary of Transactions (Form 3). Before entering in Form 3, the total of column 8 should be broken down by recapitulating the items making up this total. 7. After ruling off the totals for each month, cash receipt transactions for the following month are entered in the same manner as before. Before making the first entry for any month except January, one or two lines immediately below the totals of the next preceding month may be left in blank, to separate the transactions of each month from those of every other month. III. RECORD OF DAILY DISBURSE-(Form 2) 1. This record is for entry of all cash vouchers evidencing cash paid out. 2. The amount paid out is entered under two money columns: first, under column 4 (amount paid); then, again, under any of columns 5, 6 and 8, depending on what the payment is for. If entered under column 8, the item which payment is made should be indicated under column 7 by an appropriate title, like "taxes" or "equipment". 3. The total of columns 5, 6 and 8 should always be equal to the total of column 4. 4. At the end of each month, each money column shall be totalled. Thereafter, the same procedure shall be followed as in the Record of Daily Cash Receipts (Form 1). 5. The summary for each month is then entered in the Monthly Summary of Transactions (Form 3). Before entering in Form 3, the total of column 8 should be broken down by recapitulating the items making up this total in the same manner as is done with total of column 8 of form 1. 6. After ruling off the totals of the money columns for each month, disbursements for the next following month are entered in the same manner as before. Before making the first entry for any month except January, one or two lines immediately below the totals of the next preceding month may be left in blank to set apart the disbursements of each month from those of every other month. IV. MONTHLY SUMMARY OF CASH RECEIPTS AND DISBURSEMENTS (Form 3) 1. The monthly summary of each of receipts (Form 1) and disbursements (Form 2) shall be entered in this record in the manner already explained in the preceding paragraphs. 2. At the end of the year, all money columns shall be totalled. The total of columns 2 thru 7 added together should be equal to the total of column 1. Likewise, the totals of columns 9 thru 14 should be equal to the total of column 8. 3. The resulting totals of the various columns are the figures for preparing the Statement of Cash Receipts and Disbursements (Form 4). Form 4 in turn furnishes the data for the preparation of the annual financial statements the Statement of Net Worth (Form 5-A), and the Statement of Income and Expense (Form 5-B). These are the statements needed for accomplishing the income tax return of the taxpayer. Footnotes * For cash at the beginning, take balance of cash at end of the preceding year. NOTES: (a) Cash on hand at beginning and at end of year include cash on deposit with banks. (b) Items 6, 7, 8, and 9 above represent breakdown of column 7. (c) Items 16 to 25 inclusive represent breakdown of column 14. * For amount of cash on hand, take Item 24 in Form 4. # For professionals equipment includes library books. * For cash at beginning, take balance of cash at end of preceding year. (Note: Cash on hand at beginning and at end of year includes cash on deposits in banks.) # For professionals, equipment includes library books, if any.