There's double taxation when a business is subject to VAT and then Income Tax in the same taxable period. In the sales journal, the TIN of the seller should be indicated on every page of the journal.
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
- If the business is in kind the seller needs to issue Sales Invoice while for services Official Receipt or OR is issued.
- On the part of creditors in debt financing, interest income from notes receivable is subject to basic income tax.
- Sales Journal and Purchases Journal book does not need to be stamped by the BIR.
- There's double
taxation when a business is subject to VAT and then Income Tax in the same taxable period. - In the sales journal, the TIN of the seller should be indicated on every page of the journal.
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