Amendments to Revenue Regulations No. V-1, or the Bookkeeping Regulations, as Amended by Revenue Regulations No. V-20, Prescribing the Form of the Schedule of Income-Producing Properties and the Corresponding Incomes Therefrom and Other Relevant Statements

August 14, 1957 REVENUE REGULATIONS NO. V-58 SUBJECT : Amendments to Revenue Regulations No. V-1, or the Bookkeeping Regulations, as Amended by Revenue Regulations No. V-20, Prescribing the Form of the Schedule of Income-Producing Properties and the Corresponding Incomes Therefrom and Other Relevant Statements TO : All Internal Revenue Officers and Others Concerned For the information and guidance of all concerned, the following amendments to Revenue Regulations No. V-1, or the Bookkeeping Regulations, as amended by Revenue Regulations No. V-20, are hereby promulgated and shall be known as Revenue Regulations No. V-58. SECTION 1. There is hereby inserted between Sections 8-A and 9 of Revenue Regulations No. V-1 a new section to be known as Section 8-B, reading as follows: "SEC. 8-B. Schedule of income-producing properties and the corresponding incomes therefrom and other relevant statements to accompany income tax return. Corporations, companies, partnerships or persons whose gross quarterly sales, earnings, receipts or output exceed twenty-five thousand pesos shall have their income tax returns accompanied with schedules listing income-producing properties and the corresponding incomes therefrom and other relevant statements. Said schedules shall conform substantially with the form prescribed in Annex "A" hereof." SECTION 2. Profit and Loss Statement to Accompany Income Tax Return; Form Thereof. Corporations, companies, partnerships and persons whose gross quarterly sales, earnings, receipts or output exceed twenty-five thousand pesos shall accompany their income tax returns with comparative profit and loss statements. Said statements shall conform substantially with the form prescribed in Annex "B" hereof. SECTION 3. Date of Effectivity. These regulations shall take effect upon promulgation in the Official Gazette. ASIDTa (SGD.) JAIME HERNANDEZ Secretary of Finance Recommended by: (SGD.) JOSE ARAAS Collector of Internal Revenue ANNEX A Schedule of Income-Producing Properties, Income Therefrom and Others ANNEX B Comparative Profit & Loss Statements (Ending December 31, 1956) (Ending December 31, 1957) Gross sales P100,000.00 P150,000.00 Less returned sales and allowances 1,000.00 1,200.00 Net sales P99,000.00 P148,000.00 Less cost of goods sold: Inventory finished goods, December 31, 1955 P10,000.00 P15,000.00 Add cost of goods manu- factured 50,000.00 80,000.00 P60,000.00 P95,000.00 Deduct inventory finished goods, Dec. 31, 1956 P10,000.00 50,000.00 P20,000.00 75,000.00 Gross profit on sales P49,000.00 P73,000.00 Deduct selling expenses: Advertising P3,000.00 P5,000.00 Salesmen's salaries 10,000.00 15,000.00 Salesmen's traveling expenses 2,000.00 3,000.00 Insurance 1,000.00 1,000.00 Taxes 500.00 700.00 Miscellaneous selling exp. 1,000.00 P17,500.00 2,000.00 P24,700.00 Net profit on sales P31,500.00 P49,100.00 Deduct general and administrative expenses: Office salaries P2,000.00 P2,000.00 Officers' salaries 3,000.00 3,000.00 Stationery & Printing 200.00 300.00 Office supplies 300.00 500.00 Telephone & telegraph 200.00 200.00 Misc. general expense 100.00 200.00 Bad debts 1,000.00 2,000.00 Depreciation office equipment 200.00 7,000.00 200.00 P8,400.00 Net profit on operations P24,500.00 P40,700.00 Deduct net financial expense: Bond interest P1,000.00 P1,000.00 Interest on notes payable and bank loans 300.00 500.00 Discount on sales 500.00 1,800.00 700.00 2,200.00 Less: Interest on notes payable P200.00 P400.00 Discount on purchases 600.00 800.00 1,000.00 800.00 1,200.00 P1,000.00 Net income P23,500.00 P39,700.00 ========= =========