FABM 2 2nd Quarter Exam - Bank Reconciliation - PDF

2nd Quarter Exam in FABM 2 reconciliation. Can be also termed as uncashed check. LESSON 1: BANK RECONCILIATION No sufficient fund check / NSFC - is the process of...

2nd Quarter Exam in FABM 2 reconciliation. Can be also termed as uncashed check. LESSON 1: BANK RECONCILIATION No sufficient fund check / NSFC - is the process of matching the balances in an - A check that was not honored by the bank entity's accounting records for a cash accounts to of the entity’s bank account does not the corresponding information on a bank contain sufficient funds. NSF is an statement. The goal of this process is to ascertain. acronym for “not sufficient funds”. The changes the differences between the two and to entity attempting to cash on NSF check book to the accounting records as appropriate. may be charged a processing fee by its TWO PARTS OF A BANK STATEMENT bank. The entity issuing an NSF Check will certainty be charged a fee by its bank. 1. Account Summary BOOK Balance His located at the top of the first page and starts with your opening balance, adds depoxits and - It is the account balance in a company's other credits, adds any interest subtracts all acounting records. check, withdrawals and service fees, then ends - The term is most commonly applied to with the closing balance. the balance in a company's checking account of the end of an accounting 2. Transaction Detail period. Interest Earned - This amount is recorded in the bank statement, and must added the company's book balance. be 40 Bank Balance Services Charge - it is the ending balance on the bank statement for each month also known as - These amounts are charged by the bank balance per bank statement. for its services in maintaining the checking account and must be added to Book Balance/ Cash Ledger the book balance. This may also include a - Is the amount shown in the company’s fee for supplying check stock to the general ledger for the bank account. Bank company. balance is also referred to as the balance Adjustment to Deposits per books. - The company may sometimes record a Deposit in Transit deposit incorrectly, or it may deposit a - Cash or checks that have been received check for which there are not sufficient and recorded by an entity (business), but funds. which have not yet been recorded in the - If so, and the bank spots the error, the records of the bank where the entity company must adjust its book balance to deposits the funds. If this occurs at the correct the error. month end then the deposit will not FROM THE MODULE: appear on the bank statement, and so becomes a recording item in the bank Nature of Bank Reconciliation Statement reconciliation. - It is normal for a company's bank balance Outstanding Check as per accounting records to differ from the balance as per bank statement. The A check payment that has been recorded by the difference between these figures is the issuing entity, but which has not yet cleared as a reasons why companies prepare a bank deduction from cash. If it is not yet cleared by the reconciliation statement. Bank end of the month, it does not appear on the reconciliation statement is a report which month-end bank statement, and so is a compares the bank balance as per reconciling item on the month-end bank  company's accounting records with the LESSON 2: TAX COMPUTATION balance stated in the bank statement. TRAIN LAW There three methods of preparing bank  Ang Tax Reform for Acceleration and reconciliation statement, namely: Inclusion (TRAIN) ay naghahangad na a. Adjusted Method wherein the balances per baguhin ang kasalukuyang sistema ng bank and per book are separately determined. pagbubuwis upang gawin itong simple, makatarungan, at mas mabisa. b. Book to Bank Method wherein the book balance is adjusted to agree with the bank  Sa pamamagitan ng TRAIN, ang bawat balance. Pilipino ay maga-ambag sa pagpondo ng mas maraming imprastraktura at mga c. Bank to Book Method wherein the bank balance serbisyong panlipunan para mawala ang is adjusted to agree with book balance. matinding kahirapan at mabawasan ang Bank reconciliation is the procedure to reconcile hindi pagkakapantay-pantay. Ang TRAIN the unadjusted bank and bookbalances to the ay prayoridad na reporma ng correct cash balance. administrasyong Duterte. a. Reconciling items that result from timing SINO ANG MAKIKINABANG SA MGA differences occurs when transactions are PAGBABAGO SA PIT? recorded on the banks and the company’s  Hindi na bubuwisan ang unang 250,000 accounting books at different dates. ng taunang kita. Sa pangkahalatan, tataas I. Outstanding checks refer to the checks issued ang kita ng 99.9% ng mga nagbabayad ng and delivered to the designated payee but has not buwis, dulot ng paggalaw sa mga saklong yet cleared the bank. ng kita at pagbaba ng antas ng buwis. Upang mapanatliting progresibo ang II. Deposit in transit refers to the deposits that did Sistema ng pagbubuwis, ipapataw ang not meet the bank’s cut-off time and is not mas mataas na antas na 35% sa recorded in the bank statement until the following pinakamayamang 0.1% ng mga period. nagbabayad ng buwis. III. Collections received directly by the bank are SAKOP BA NG BUWIS ANG BONUS AT IBA added to the unadjusted bookbalance. PANG BENEPISYO? IV. Debit and credit memo refers to additions and  Hindi sakop ng income tax ng mga bonus deductions from the account that were not at benepisyo na aabot sa 90,000. (Iniakyat instructed by the depositor. Examples are interest ang exemption mula 82,000). Alinsunod income, interest expense and bank service sa layuning gawing simple ang sistema ng charge. pagbubuwis, pasok na sa pinataas na V. NSF checks are checks dishonoured by the exemption ng 250,000 ang kasalukuyang bank because the balance of the issuer’s checking personal exemption at exemption para sa account is not enough to cover the amount of the mga may dependent. Exempt din ang de check. minimis benefits. Tinaas naman ang buwis sa fringe benefits sa 35%, katulad b. Errors are unintentional mistakes. It should be ng pinakamataas na antas para sa PIT. carefully analyzed to determine the proper adjustment to the bank reconciliation. PAANO GAMITIN ANG TAX CALCULATOR?  Kung ikaw ay biyudo o biyuda, gamitin ang single option sa calculator.  Hindi kasama sa kalkulasyon ang mga overtime, absences, leaves, de minimis benefits, at iba pa.  Kung ikaw o ang asawa mo ay walang trabaho, itype ang 0 (zero).   Kasama sa total contributions ang law. mandatory contributions para sa Taxation is the process by which the government SSS/GSIS, PhilHealth, at PAG-IBIG. collects revenue in order to pay for its expenses. TAX CALCULATOR Income tax is defined as the tax on the net  Kasama sa kalkulasyon para sa lumang income or the entire income realized in one sistema ang exemption para sa mga taxable year. dependents. Who are required to pay income tax in the  Tuloy pa rin ang exemption ng mga Philippines? (Section 23 of the National Internal minimum wage earner at OFW sa Revenue Code [NIRC] of 1997) Personal Income Tax. - A citizen of the Philippines, living in the  Walang impormasyon na kinukuha ang Philippines, is taxable on all income DOF mula sa mga datos na ipinabahagi sa earned inside and outside the Philippines tax calculator na ito para maprotektahan - A non-resident citizen is taxable only on ang privacy ng lahat. income earned in the Philippines - An OFW is taxable only on income earned in the Philippines. - A foreigner living in the Philippines is taxable only on income earned in the Philippines. - A domestic corporation is taxable on all income derived from sources inside and outside the Philippines; and - A foreign corporation is taxable only on the income derived inside the Philippines II. List of sources of gross income: (NIRC 1997 Chapter 6 Section 32 A) Compensation for services in whatever form paid, including, but not limited to fees, salaries, wages, commissions, and similar items Gross income derived from the conduct of trade or business or the exercise of a profession Gains derived from dealings in property; (Note: subject to 6% capital gains tax for individuals and for corporation if land and building is not used in business) Interests; (Note: generally subject to 20% final withholding tax) Rents FROM MODULE: Royalties; (Note: generally subject to Principles of Taxation 20% final withholding tax,10% if from Governing tax law in the Philippines is the books and literary works) National Internal Revenue Code of 1997. Dividends; (Note: generally subject to The Bureau of Internal Revenue (BIR) is the 10% final withholding tax for individuals, primary implementing agency of this tax exempt for corporation)  Annuities - Taxable income is computed after deducting personal and additional exemptions. Prizes and winnings; (Note: generally subject to 20% final withholding tax, - Applicable tax rate is applied on the taxable except those that are tax exempt based income to get the tax due. on specific criteria in the law) - The total income tax withheld by the employer is Pensions; and deducted from the tax due to get remaining tax liability by the employee. Partner's distributive share from the net income of the general professional Taxpayers who derive their income solely from partnership. compensation are required to file III. Compensation Income BIR Form 1700 as their income tax returns. However, to give relief to these taxpayers, the Employed individuals that earn employee may present BIR Form 2316 as their compensation income pay their income income tax return. taxes monthly. Employers withhold the income tax of their employees from their BIR Form 2316 is a statement issued by the monthly gross income and remit these employer and signed by the employee but not filed sums to the BIR. with the BIR. This is referred to as substituted filing. Philippine individual income tax is progressive. The tax rate increases as the IV. Business Income tax base increases which means that tax The tax payments of a business payers with more capacity to pay will pay organized as a sole proprietorship are more taxes. made in the name of its owner. The owner All individual taxpayers are granted a is considered an individual taxpayer who personal exemption of P 50,000. derived income from business. He is Additional exemptions of ₱ 25,000 are required to file BIR Form 1701. given for each qualified dependent but Businesses may settle their income tax only up to four dependents. For husband liabilities and submit their income tax and wives with children, only one spouse returns (tax form) to the government three can claim the additional exemption. The months and fifteen days from the close of husband is deemed head of the family the year. For a business that follows a and will claim the deduction unless he calendar year, the date of settlement is explicitly waves his right in favor of his April 15. wife. Some businesses pay income tax on a Withholding income tax for employees: quarterly basis based on their quarter- - Employers are required by law to withhold endincome. Quarterly payments are due income tax dues from their employees’ salary. sixty days following the close of the first three quarters of the year. - It is implemented because employees might not have sufficient cash to pay for their income tax When the tax due is in excess of ₱ 2,000, dues if aggregated to a one time annual payment. the individual taxpayer may elect to pay the tax in two equal installments. The first - The withholding tax deduction is computed installment shall be paid at the time the based on the employee’s gross compensation (net return is filed and the second installment of mandatory contributions to SSS or GSIS, is paid on or before July 15 following the Philhealth and Pagibig Fund), tax status, timing of close of the calendar year. compensation payments and using the published BIR withholding tax table. Income tax is computed at the end of the year based on all compensation income derived during the year.