Professional Documents
Culture Documents
Assets
Account Account Title To Description/Explanation of
No. Increase Account
101 Cash/Cash in Checking account balance,
Bank Debit currency, coins, and checks
received from customers but
not yet deposited.
1
The account titles to be used are not limited in this chart of accounts. Appropriate changes by adding or
eliminating account title/s shall be made whenever necessary to fit business needs.
permanent connection to the
structure of a building or
utilities, e.g, vase, paintings,
plants.
Liabilities
Account Account Title To Description/Explanation of
No. Increase Account
201 Accounts Payable Credit Amounts owed to suppliers
of goods and/or services.
Equity
Account Account Title To Description/Explanation of
No. Increase Account
301 Bumagat2, Credit Amounts the owner invested
Capital in the company (through cash
or other assets) plus earnings
and minus losses of the
company not withdrawn by
the owner.
Expenses
Account Account Title To Description/Explanation of
No. Increase Account
401 Purchases Debit Purchases of merchandise for
resale. Equipment and
supplies are not recorded in
this account.
Notes:
1. Cost of goods sold shall include all business expenses directly
incurred to produce the merchandise to bring them to their
present location and use. - RR 12- 2007.
2. Expenses must be incurred or paid in connection with business,
trade or profession in order to be deductible expenses for
taxation purposes.
Revenues/Income
Account Account Title To Description/Explanation of
No. Increase Account
501 Sales Credit The performance of all kinds
of services in the Philippines
for others for a fee,
remuneration or
consideration, whether in
kind or in cash, including
those performed or rendered.
-RR No. 14-2005