Basic Accounting

CONCEPTS
 ACCOUNTING
DOCUMENTATION
Objectivity

 Transactions must be verifiable

 Supported by proper and valid
documents
BOOKKEEPING REGULATION

 Mandated by law – National

Internal Revenue Code
 Revenue Regulation No. V-1
otherwise known as the
Bookkeeping Regulation
 RR V-1 (as amended)
"All persons subject to an internal revenue tax shall, for each sale or transfer of merchandise or for
services rendered valued at two pesos or more, prepare and issue sales or commercial invoices or receipts
serially numbered in duplicate, showing among other things, their names, or styles, if any, and business
addresses; PROVIDED, That in case of sales, receipts or transfers in the amount of fifty pesos or more, the
invoices or receipts shall further show the name, or style, if any, and business address of the purchaser,
customer or client. The original of each sales invoice or receipts shall be issued to the purchaser,
customer, or client who, if engaged in any taxable business, shall be kept and preserve the same in his
place of business for a period of five years from the date of the invoice or receipt, the duplicate to be kept
and preserved by the persons subject to tax, also in his place of business for a like period: PROVIDED, That
persons subject to tax, whose gross sales, earnings, or receipts during the last preceding year exceed
twenty thousand pesos shall, for each sale or transaction, issue an invoice or receipt irrespective of the
value of the articles sold or service rendered.
Accounting Documents and its Use
1. Debit and Credit Memo
 Debit Memo – this is prepared when
the company has receivables from
other parties not in the ordinary
course of business.
 Credit Memo – this is prepared
when the company has payable to
the other parties not in the ordinary
course of business.
Accounting Documents and its Use

2. Deposit Slip
 Deposit Slip – this is the evidence by
which cash or checks are deposited
in the bank account of the company.
 Internal Control Rule in Depositing –
Daily cash and check collection must
be deposited intact the next following
banking day.
Accounting Documents and its Use
3. Receipt
 Official Receipt – from the point of
view of the Issuer – this represents
evidence of collection of money from
the customer or payor.
 Difference between an Official
Receipt, Collection Receipt and
Provisionary Receipt.
 Emergence of E-receipt
RECEIPTS
 Primary
producedevidence
high quality
of collection
productsof
 SkilledReceipt
Official craftsman
and hadfor
money pride
service
in their
industry
work

 Use in trading business and

Collection Receipt manufacturing for sales invoice
issued

 Temporary receipt issued in lieu of

Provisionary Receipt an official receipt which are
normally released 3-5 days after
Invoice Cycle to Cash
Sales
Invoice
 Applies to Trading and
Manufacturing Business
 Service type of business are not
Cash Provisionary
required to use sales invoice. But Receipt
may use at their option.

Collection
Receipt
Form and Manner of Invoices and Receipts
SECTION 15. Form and Manner of Issuance of Invoices and Receipts. — An invoice or a receipt, in
order to comply with the requirement of these regulations, must be serially numbered and made at
least in duplicate. They shall be bound in the form of booklets or pads of 50 or 100 each, and shall
show, among other things, the name and address and the business style, if any, of the person
issuing the same, and shall contain such columns as may be necessary and appropriate for the
business of the taxpayer concerned. The invoices or receipts may have as many duplicate copies as
may be necessary for the purposes of the taxpayer, but the duplicate copies shall bear the same
serial number as the original.
VAT and NON-VAT RECEIPTS
A PERSON IS SUBJECT TO VAT IF HIS GROSS
ANNUAL SALES EXCEEDS 3M
Accounting Documents and its Use
4. Voucher
 Check Voucher – accounting
document to evidence payments of
the company thru checks.
 Cash Voucher – accounting
document to evidence payments of
the company thru cash.
 Emergence of E-payment
Accounting Documents and its Use

5. Cheque
 Cheque – bank provided accounting
document to evidence payments of
the company thru bank checks.
 Emergence of E-payment
 PAYOR’s DETAILS DATE
PAYEE

Amount
in Words
and
Figure

PAYOR’S AUTHORIZED
SIGNATORIES
CLASS EXERCISE
1. PREPARE A CHECK VOUCHER FOR EACH OF THE RECEIPTS YOU HAVE
BROUGHT
2. PREPARE A CHECK CORRESPONDING TO THE VOUCHER BASE ABOVE, DATE
THE CHECK FIVE DAYS AFTER THE VOUCHER DATE