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Multiple-Choice – Problems: Part 1

1. Sabina Flour Milling (SFM) Corporation imports and mills wheat for the domestic market.
During the month, it imported wheat at a total landed cost of P3, 000,000. The same was milled
and yielded 2,000 sacks of flour. 1,200 sacks was sold at a price of P2,400 per sack.
What is the advanced VAT to be paid by SFM upon importation of the wheat?
a. P 0
b. P 288,000

c. P 360,000
d. P 460,800

e.
2. Sugar Nanny Corporation (SNC) buys sugar cane from farmers and processes them into refined
sugar. During a month, SNC made the following purchases:
f.
g. Purchase of canes sugar
P 1,800,000
h. Other supplies, excluding VAT
300,000
i. Other expenses, including VAT
112,000
j.
k. A total of 2,000 bags were produced. 1,500 were sold at a price of P1,600 per bag in the same
month.
l.
m. SNC paid the advanced VAT on the production in accordance with the BIR’s prescribed new
based price for refines sugar.
n. \
o. What is the advanced VAT?
a. P 204,000
b. P 216,000

c. P 288,000
d. P 336,000

c.
3. In the immediately preceding problem, what is the total credit against output VAT (including the
advanced VAT) for the month?
a. P 318,000
c. P 456,000
b. P 324,000
d. P 480,000
4.
5. A VAT-taxpayer had the following data on its VAT obligation at the last quarter of the year:
6.
7. Output VAT on regular sales
P 150,000
8. Input VAT on regular sales
120,000
9. Advanced input VAT
70,000
10. Advanced input VAT claimed as tax credit
40,000
11. VAT paid in the prior months
40,000
12.
13. What is the input VAT carry-over for the following quarter?

P 840.000 50. 46. The following gross receipts and input VAT relates to a non-profit and non-stock charitable institution in the month: 34.000 40. P 0 c. Purchases from non-VAT persons 100. a.000 19. P 21.000 d. P 27.000 b. Esperon. P 0 c. P 18. Ms. P 36. Cash sales P 450. Sales of gift shop items 900.000 27. exclusive of VAT P 1.000 28.000 36. 22. 15. 42. VAT exclusive 200. P 24. What is the VAT payable? a. P 42. Contribution from the public P 8.000 53. 39.000 c. A VAT registered person. 24. Compute the VAT payable.000 23.000 18. P 50. Purchases from VAT persons. P 132. Purchases of vatable goods 250.000 b. P 40. Total sales. Purchases of equipment.000 20.000 35. 51. 33.000 29.500.000 21. What is the VAT payable? a. P 116. VAT exclusive P 400. Compute the VAT payable. P 24.000. Installment sales (30% collected) 400. P 80.000 b.000 52.000 49. had the following transactions during the month: 16. Government grant 1.000 d. 54.000. P 768. VAT inclusive 448. Mr. A seller of goods reported the following in the month: 45.000 c.000 37.000 . Input VAT related to shop and rental operations P 112.008.600 d. Sales to non-VAT persons. Chelsea had the following transactions in June 2014: 25.000 43. Input VAT related to non-profit operations 428. P 84. 26. Purchases of VAT-exempt goods 120.000 14.000 38.000. Sales to VAT persons.000 41.000 32.000 b. 17. a.000 48.000 c. P 72.000 30.000 d. Rental of vacant premises 1.000 47. Credit sales (40% collected) 650. Purchases of goods. Sale of vatable goods 400. Sale of VAT-exempt goods P 200. VAT exclusive 500. 31. All figures are exclusive of VAT.a. VAT inclusive 1. 44.

P 210. Depreciation expense 600. computer the VAT payable. 77.600 76. 68.50% of the expenses were from VAT-suppliers. Salaries expense 400. 84. inclusive of P12. Determine the VAT payable. P 37.000 74. Purchases returns and allowances 40. P 0 c.000 91. 56. Assuming all data are inclusive of VAT. P 45.000 at the end of the month. a. P 261. a. 62.000 89.000 71. Collection from the contract 2. P 28.000 83.000 61. 75. had the following sales and purchases: 87. P 36.688.000 fixed price construction contract. Inventory increased by P60. .800 d.240. 63. exclusive of VAT 20. Sales P 800. The net income of Aklan Trading Company during the quarter is as follows: 57. 64. Utilities expense.600 b. P 33. a.000 90. The VAT payable is a. Details of its operations during the quarter is presented below: 67. ABC Construction Company started work on a P5. 600.000 c. Sales return and allowances 20. Total progress billings on the contract P 2. exclusive of VAT: 78. 66.400 72. Mrs.600 d. Compute the VAT payable. P 34. Baniaga.000 59. Supplies expense 134. P 213.000 VAT 140. Sales of fruits and vegetables P 800.000 b. a fruit and vegetable dealer.600 d. P 24.000 73.400 85.200 d. Purchases of fruits and vegetables 500. 58.000 81.800 65. Less: Expenses 120. P 30. P 0 55.600 d.000 82. 600 b. P 258. 79. A VAT registered seller of goods had the following sales and purchases.600 b. P 130. 37. All the inventories were purchased from VAT suppliers. Purchases of cellophane and containers.600 c. P 26. P 0 c.000 80. Purchases 600.000 60. 92. P 21.000 69.000 70. 88. 86. Net income P 240.800 93. Gross income (40% of sales) P 360.b.

115. 2. Domestic sales 1. P 24. 124. VAT was paid in the two prior months of the quarter. P 36. Domestic sales 1.000 106. Purchases of food condiments 80.000. Unit 141 – B P 2.000 98.000 118. 131.000 109. Compute the VAT payable a.000 101. Total sales. Multiple-Choice – Problems: Part 2 1. P 210. P 36.000 b.500. Export sales P 800.000 b.000 99. 132.000 128.200. Purchases 1. 102. Purchases of rice.000 c. Assume all amounts are exclusive of VAT.000. Receipts from softdrinks 200.000 c. 111.000 129. 108. 72. meat and vegetables 200.200. 96. 100.000 127. A VAT-registered trader reported the following during the month: 95. Compute the VAT payable.000.000 105. The VAT payable is a. exclusive of VAT P 6. A domestic seller and exporter had the following summary of trading activities in the quarter: 103.000 120. P 60. P 12.000 125.000 122. 133.500 b. P 120. Total input VAT during the month P 210. Receipts from food served P 600. A realty dealer disposed two residential units during the month: 114.000 116. 119.000 input VAT was applied for a tax refund during the period. 123. 121. 60. Export sales P 1.000 d.94. P 510. A VAT-registered restaurant had the following transactions during the month. Unit 142 – C 3.000 107. P 297.500. P 24.000 117. P 720. Purchases of softdrinks 120. 104.500.000 112.000 97.000 130. 110. P 72. The VAT payable still due should be a.000 126. Purchases 1.000 d. 113. Purchases of vegetables 100.000 d.000 c. .

3.a. Office supplies expense 500.000 134. 146. It incurred a P 600. Input VAT on regular sales (P 80. Compute the VAT payable.000 144. 158. 4.000 d. 155. Export sales 1. A manufacturing subcontractor generated the following receipts from various clients: 145. radio broadcasting company with P 8M annual receipts. Input VAT traceable PEZA clients 100. Receipts from clients P 5. Compute the VAT payable. P 72. P 36.000. P 72. P 58.000 151. P 24. Depreciation expense 200. Receipts from Non-PEZA locators 1.000 148.000 160.000 b. Compute the VAT payable.000 c. P 48. P 634. 136. P 0 164.000 c.000 b. P 0 153.000 162. P 100. P 20. Salaries expense 3. P 9.000 139. 154. 163. A VAT-registered tax practitioner who is using the cash basis of accounting disclosed the following results of operations (exclusive of VAT): 135. DZQC. A VAT-taxpayer had the following data during the month: 157. Input VAT on general operations 60.000 137.000 149.000 161. Input VAT traceable to non-PEZA locators 50. P 50. .000 c. Regular sales P 3. Advance from clients 1. P 0 c. P 390. 5.000 b.000 141. 152. Compute the VAT payable.000 d. 143.000.000 d.600 d.000 was collected during the month. P 0 c. 6. 7. Utilities expense 50.000.000. P 120.000.500.000 total expenditures out of which P 224.000 d. An insurer had the following receipts and input VAT data during the month: 165.000 b.000 140. P 534.000 156. generated a total revenue of P 1M out of which P 800.000 147.000.000 were paid to VAT suppliers. applied for tax credit certificate) 100. a.000 138. a. a. a. P 654.000 159. P 150.000 142.000 150. Receipts from PEZA locator P 4.000 b.

000 177. P 12.000 197.000 c.000 d.000 189. Receipts from incoming flight 2. 167.000 P 2.000 193. Promissory note 500. A domestic airliner had the following transactions during the month: 185. Spaces with P 15. Transport of cargoes.000.000 205. 196.000 179. Input VAT Purchase of goods and supplies P 28.000 176.000 200. Sales of non-food products 500. a. Transport of passengers P 4.000 b. a.000 202. Total P 3.000 100.000 b.000 170.000 168. 190. A seller of goods had the following sales: 198.000.000 Purchase of equipment (4 year life) 24.000 c. 175.500.000 d.000 184.000 188.000 monthly rental 1. 9. P 220.000 200.166. 181.000.500. Sales of unprocessed agricultural food products P 200. 8. What is the VAT payable? a. 199.000 monthly rental P 500. 204.000 600. P 360.000 d. Other input VAT 70. A lessor of commercial spaces had the following receipts and input VAT data for the month: 174. mails.500. P 232.000 P 6.000. Total input VAT during the month 182. . Spaces with P 5. P 270.000 192. P 52. excess baggage 1. Spaces with P 10.000 80. Compute the VAT payable.000 201.000 171. P 309. 10. Total claimable input VAT P 468.000 169. 172.000 178. 194. International operation 187. P 207. P 204. Domestic operation 191. Sales of processed agricultural products 300. Compute the VAT payable.363 b. Receipts from outgoing flights P 2.000 195.000.000 180. 203.000 monthly rental 800.000 monthly rental 700. Cash collection P 4. P 192.000 c. P 195.000 173. Life Non-life Total . Spaces with P 20. 183. Traceable input VAT 120. 186.500. P 153.

000 215. A domestic sea carrier had the following receipts and attributable input VAT for the month: 230.200. Receipts from cargoes 300.000 224. P 560.000.000 b.000 210.000 218. 238. P 30. The following relates to its sales and input VAT during the quarter: 208.000 227.000 c. c. Receipts from cargoes 600.500 207.000.000 from various clients including advances and paid P 800. A VAT registered television company with annual receipts of P8M reported P 1M total revenue for the month of June 2015.000 b. What is the VAT payable? a. Compute the VAT payable. 231. P 48. P 44. Total input VAT for the month 240. 214.000 b. 237. P 27.000 234.000 d. 209. . Receipts from passengers P 2.000 229. Input VAT on building (20 year life) 180. exclusive of VAT P 5.000 of which is paid to VAT suppliers. a.000 216. The collections and payments are inclusive of VAT. P 70. P 24. 228.000 212.500. Sales of VAT-exempt goods 500. P 0 236. Input VAT on bus insurance and repairs 30.000 220.000 211. What is the VAT payable for January ? a. P 120.700. It collected P 1. P 48.000 233.400 d.000 232.400. P 274. Input VAT on purchase vatable goods 150. P 0 c. 3. P 68.000 217.000 226.000 of expenses. Denzi Marketing bought a building to house its retail activities. Export sales 1. VAT paid prior months 80. Input VAT carry-over in the prior quarter P 60. Input VAT on purchase of new bus 360.000 223.000 225. P 0 c. 219. P 64. Input VAT on gasoline 50. Total sales.000 Multiple-Choice – Problems : Part 3 1.800 d. 235. A VAT-registered bus company had the following receipts in January 2015: 221. 4.000 213. P 130. What is VAT payable? a. 222.206.000 d.000 b. P 67. Sales of goods P 3. Receipts from passengers P 2. 2.

Rental expense.000 267. Receipts from hospital operations P 20. 8.239. Compute the VAT payable. Utilities expense. Baguio General Hospital had the following receipts and input VAT: 270. exclusive of P 120.000 248.571 b.000 274. P 272. 271.800 d.200.000 244. P 72. Purchases of sugar cane P 1.000 b. Sweet Papa Corporation is a VAT-registered sugar refiner.000 275.500. 243. inclusive of P 240.000 .000 c. A bookstore had the following summary transactions during the month: 242. Other expenses.000.000 253. Sales of bread P 4.000 254. Compute the VAT payable. Input VAT on hospital drugstore 120. Sales of cakes 500. P 84. inclusive of VAT 56. 6.000 c.000.000 247. What is the VAT payable? a. P 77. inclusive of VAT 448.000 c.000 258.000 272.000. P 76.000 263.000 VAT 2. Other purchases.000 c. 300.000 250. What is the VAT payable? a. Salaries expenses 500. Input VAT traceable to hospital operations 2.800 241. P 120. Importation of flour 1.000 d.000 265. 180. Other purchases. Sales of books inventory P 300. 249. 240. P 20. Sales of school supplies. Danes Bakeshop had the following details of operations during the month: 251. Details of its operations are as follows: 261. P 60. Export sales of refined sugar 2.000 256.000 246.000 b. a.000.000 d. 268.000 260. Sales of medicines 4. P 78. 7. 140.000 245. Advanced input VAT paid P 240.000 266.100. 259.000. Domestic sale of refined sugar P 3.000 257. 120 b. P 312.000. 252.000 VAT 1. P 52.000 255. P 0 c. 276. 5. exclusive of VAT 700. exclusive of VAT 20. a.000 d. P 32. P 660.000.000 264. P 68. What is the VAT payable? a. 262.000 269. Salaries expense 100.000 273.

308. Sales P 1.000 289.000 285. Polaris Company claimed P 45. Miscellaneous fees 100.000. 320. P 360. Purchases and payments. Sale to the a registered Ecozone export trader 200. Sale of snacks 150.200. 301.000 277.000.000. b. P 0 c. Costumers 302.000.512. exclusive of VAT 150.000 281. P 96. Tuition fees P 800. Input VAT 20. Sales to persons engaged in business 700. P 4. a.000 295. 287.000 of input VAT on export sales as a tax credit 307. Compute the VAT payable 309. 296. .000 d. a. a VAT seller.000 d. Sales to persons not engaged in business 500. 297.000 VAT 220. P 189.000 293.000 3. A VAT taxpayer made the following sales: 312.000 1.000 P 2. Sale to the government P 250. Purchase of supplies.000 c.000 304. 260. 292.000 311.000 317.000 d. Polaris Company.000 315. 10.000 310. P 110. b. inclusive of VAT P 1. Sale to non-profit institutions 350.000.000 298.000 318. 303. P 92. Purchases 600. Compute the VAT payable. P 0 c. 306.000 294. a. Compute the VAT payable. Total sales P 2. Cordon College had the following receipts and input VAT payments: 291.000 286.000 P 4.b.000 319. 9. P 71. A VAT-registered professional review school had the following receipts during the month: 278.800.000 299.000. 12. 11. Other expenses.000 d.000 321. b. 283.000 305. 288. P 100. Miscellaneous fees 200. P 144. 313. Reviewer salaries 300.000 282.000 P 7. inclusive of P 16. 279.000 3.000 280. had the following sales and purchases during the month as recorded on its books of accounts: 300.000 284. Tuition fees P 800.000 290.000 316. P 2.000 314. Government Foreigners Others Total . P 76.

344. 369.000 372. 363. T 9. 360. 329. T 6.500 d. 325. 334. 364. 379. 353. 355. 366. 356. 354. 352. 8. 323. T 14. 378. P 0 b. P 56.322. F 3. 336. 347. 339. 331. 335. 375. 349. 376. F 12. a. 370. F Multiple Choice – Theory . 358. 333. 338. 348. P 54. F 7. 337. 345.000 Answers: True or False 1. T c. 377. 326. F 11. 332. 324. 371. 340. 357. 373. 351. 381. 350. 374. 330.F 2. 367. 327. 341. T 5. 361. F 15. 328. 359. P 78. 346. 380. 368.000 actual input VAT is traceable to the sales to the government. 343. Compute the VAT payable. 365. P 20. T 10. 342. T 13. 362. T 4.

383. 391. D 4. B 8. B 2. 406. A 2. 412. D 7. 417. 393. 429. 399. 421.C 6. 390. 404. C 408. B 7. B 5. A 13. C 3. A 14. 407. D 3. 389. 411.D 7.B 9. B 3. C 2. 425.C 10.D 8.C Multiple – Choice Problems: Part 1 1. 386. 416. C 11. 387. 403. 427. C 7.A 11. B 2. 392. C 4. 400. 410. 405. A 6. C 10. B 9. D 3. 1. 385. 415. 397. 419. A 5. 422. C 9. A 6. D 4. 418. 431. A 12. 395. B 10. 398. C 8. 409. 413. 384. 433. 432. A 6. D 9. C Multiple Choice – Problems: Part 3 1. 401. 428. D 12. D 8. Multiple Choice – Problems: Part 2 1. 388. 394. 414. 402. 420. D 5. 430.382. 426. 423. 424. B 4. C 5. C . 396. C 10.