*The tax remittance advice (TRA) is recognized in the book of government agency for the constructive

remittance of tax withheld to the BIR.

*There is no actual and physical payment to BIR. The use of Tax Remittance Advice represents a
constructive of taxes withheld.

*The used of TRA is necessary in order for the BIR to record the taxes as its income for the BTr to
record the withholding agency disbursement authority as subsidy.

*The Credit to Subsidy from National Government means that the entity has the authority to use the
amount withheld for its operation.

Book of BIR

Cash , TRA 10,000

Income tax 10,000

Book of BTr

Subsidy to National Government 10,000

Cash 10,000

Remittance of Mandatory contributions

Due to GSIS 2,000

Due to PAG IBIG 2,000
Due to Philhealth 1.000
Cash, MDS Regular 5,000

Billings, Collections and Remittances

Entity A bills revenue of 100,000 for rent income

Accounts Receivable 100,000

Rent Income 100,000

Entity collects P100,000 from billed revenue and remitted the collection to the BTr.

Cash –Collecting Officers 100,000

Accounts Receivable 100,000
To record collections

Cash Treasury-Agency deposit, regular 100,000

Cash –Collecting Officers 100,000