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  • Financial Accounting Ii Chapter 3: Accrued Liabilities and Deferred Revenue Payroll Taxes

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    Sheena
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    The document discusses four types of accrued liabilities and deferred revenue: 1) Payroll taxes that must be withheld from employee salaries and remitted to tax agencies. 2) VAT (value added taxes) that must be collected from customers on certain sales and remitted to the BIR. 3) Gift certificates that are initially recorded as a liability when sold, and then removed from liability and recorded as sales revenue when redeemed. 4) Refundable deposits from customers that are recognized as a liability until certain conditions are met for refund.

    Original Description:

    Fina Act 3 notes

    Original Title

    FIN ACT II (Ch3)

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    The document discusses four types of accrued liabilities and deferred revenue: 1) Payroll taxes that must be withheld from employee salaries and remitted to tax agencies. 2) VAT (value added taxes) that must be collected from customers on certain sales and remitted to the BIR. 3) Gift certificates that are initially recorded as a liability when sold, and then removed from liability and recorded as sales revenue when redeemed. 4) Refundable deposits from customers that are recognized as a liability until certain conditions are met for refund.

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    © All Rights Reserved
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    4 views1 page

    Financial Accounting Ii Chapter 3: Accrued Liabilities and Deferred Revenue Payroll Taxes

    Uploaded by

    Sheena
    The document discusses four types of accrued liabilities and deferred revenue: 1) Payroll taxes that must be withheld from employee salaries and remitted to tax agencies. 2) VAT (value added taxes) that must be collected from customers on certain sales and remitted to the BIR. 3) Gift certificates that are initially recorded as a liability when sold, and then removed from liability and recorded as sales revenue when redeemed. 4) Refundable deposits from customers that are recognized as a liability until certain conditions are met for refund.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    FINANCIAL ACCOUNTING II

    CHAPTER 3: ACCRUED LIABILITIES AND DEFERRED REVENUE


    Payroll Taxes
    Under the law, entity as an employer is required to withhold
    from the salaries of each employee the following:
    a. Income tax payable by the employee
    b. Employee contribution to the SSS
    c. Employee contribution for PhilHealth
    d. Employee contribution to the Pag-ibig Fund

    VAT (Value Added Taxes)


    - Under National Internal Revenue Code, entity is required
    to collect VAT from customers on sales of tangible
    personal property and certain services.
    - VAT collected shall be remitted monthly to the BIR.

    Gift Certificates Payable


    1. Gift certificates are sold
    Cash xx
    Gift certificates payable xx
    The latter account is a current liability
    2. Gift certificates are redeemed
    Gift certificate payable xx
    Sales xx
    3. Gift certificate expires or when gift certificates are not
    redeemed
    Gift certificates payable xx
    Forfeited gift certificates xx

    Note: PDTI (Philippine Department of Trade and Industry)


    ruled that gift certificates no longer have an expiration period.

    Refundable Deposits
    - Consists of cash or property received from customers but
    are refundable after compliance with certain conditions.
    Example: Customer deposit required for returnable containers
    like bottles, drums, tanks and barrels.

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