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 c. P 360,000
b. P 288,000 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 c. P 288,000
b. P 216,000 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?
 a. P 0 c. P 50,000
b. P 40,000 d. P 80,000
14.
15. Mr. Esperon, A VAT registered person, had the following transactions during the month:
16.
17. Sales to non-VAT persons, VAT exclusive P 400,000
18. Sales to VAT persons, VAT exclusive 500,000
19. Purchases from VAT persons, VAT exclusive 200,000
20. Purchases from non-VAT persons 100,000
21.
22. Compute the VAT payable.
a. P 84,000 c. P 36,000
b. P 72,000 d. P 24,000
23.
24. Ms. Chelsea had the following transactions in June 2014:
25.
26. Sale of VAT-exempt goods P 200,000
27. Sale of vatable goods 400,000
28. Purchases of VAT-exempt goods 120,000
29. Purchases of vatable goods 250,000
30.
31. All figures are exclusive of VAT. Compute the VAT payable.
a. P 42,000 c. P 21,000
b. P 27,600 d. P 18,000
32.
33. The following gross receipts and input VAT relates to a non-profit and non-stock
charitable institution in the month:
34. Contribution from the public P 8,000,000
35. Government grant 1,000,000
36. Sales of gift shop items 900,000
37. Rental of vacant premises 1,000,000
38.
39. Input VAT related to shop and rental operations P 112,000
40. Input VAT related to non-profit operations 428,000
41.
42. What is the VAT payable?
a. P 0 c. P 768,000
b. P 116,000 d. P 840,000
43.
44. A seller of goods reported the following in the month:
45.
46. Cash sales P 450,000
47. Credit sales (40% collected) 650,000
48. Installment sales (30% collected) 400,000
49. Total sales, exclusive of VAT P 1,500,000
50.
51. Purchases of goods, VAT inclusive 448,000
52. Purchases of equipment, VAT inclusive 1,008,000
53.
54. What is the VAT payable?
a. P 132,000 c. P 24,000
 b. P 130,200 d. P 0
55.
56. The net income of Aklan Trading Company during the quarter is as follows:
57.
58. Gross income (40% of sales) P 360,000
59. Less: Expenses 120,000
60. Net income P 240,000
61.61.
62. 37.50% of the expenses were from VAT-suppliers. All the inventories were purchased from
VAT suppliers. Inventory increased by P60,000 at the end of the month.
63.63.
64. Compute the VAT payable.
a. P 45,000 c. P 30,600
b. P 37,800 d. P 28,800
65.65.
66. ABC Construction Company started work on a P5, 600,000 fixed price construction
contract. Details of its operations during the quarter is presented below:
67.67.
68. Total progress billings on the contract P 2,688,000
69. Collection from the contract 2,240,000
70. Depreciation expense 600,000
71. Supplies expense 134,400
72. Salaries expense 400,000
73. Utilities expense, inclusive of P12,000 VAT 140,000
74.
75. Assuming all data are inclusive of VAT, computer the VAT payable.
a. P 261,600 c. P 213, 600
b. P 258,600 d. P 210,600
76.
77. A VAT registered seller of goods had the following sales and purchases, exclusive of
VAT: 78.
79. Sales P 800,000
80. Sales return and allowances 20,000
81. Purchases 600,000
82. Purchases returns and allowances 40,000
83.
84. The VAT payable is
a. P 0 c. P 24,600
b. P 21,600 d. P 26,400
85.
86. Mrs. Baniaga, a fruit and vegetable dealer, had the following sales and purchases:
87.
88. Sales of fruits and vegetables P 800,000
89. Purchases of fruits and vegetables 500,000
90. Purchases of cellophane and containers, exclusive of VAT 20,000
91.
92. Determine the VAT payable.
a. P 0 c. P 36,000
b. P 33,600 d. P 34,800
93.
94. A VAT-registered trader reported the following during the month:
95.
96. Export sales P 800,000
97. Domestic sales 1,200,000
98. Purchases 1,000,000
99.99.
100. The VAT payable is
a. P 24,000 c. P 72,000
b. P 60,000 d. P 120,000
101.101.
102. A domestic seller and exporter had the following summary of trading activities in
the quarter:
103.103.
104. Export sales P 1,000,000
105. Domestic sales 1,500,000
106. Purchases 1,200,000
107.107.
108. P 36,000 input VAT was applied for a tax refund during the period. P 12,000
109. VAT was paid in the two prior months of the
quarter. 110.
111. The VAT payable still due should be
a. P 24,000 c. 60,000
b. P 36,000 d. 72,000
112.

113. Multiple-Choice – Problems: Part 2

1. A realty dealer disposed two residential units during the month:

114.
115. Unit 141 – B P 2,500,000
116. Unit 142 – C 3,500,000
117. Total sales, exclusive of VAT P 6,000,000
118.
119. Total input VAT during the month P 210,000
120.
121. Compute the VAT payable
a. P 720,000 c. P 297,500
b. P 510,000 d. P 210,000
122.
2. A VAT-registered restaurant had the following transactions during the
month. 123.
124. Receipts from food served P 600,000
125. Receipts from softdrinks 200,000
126. Purchases of rice, meat and vegetables 200,000
127. Purchases of vegetables 100,000
128. Purchases of softdrinks 120,000
129. Purchases of food condiments 80,000
130.
131. Assume all amounts are exclusive of VAT.
132.
133. Compute the VAT payable.
 a. P 0 c. P 36,000
b. P 9,600 d. P 72,000
134.
3. A VAT-registered tax practitioner who is using the cash basis of accounting disclosed the
following results of operations (exclusive of VAT):
135.
136. Receipts from clients P 5,000,000
137. Advance from clients 1,000,000
138. Salaries expense 3,000,000
139. Depreciation expense 200,000
140. Office supplies expense 500,000
141. Utilities expense 50,000
142.
143. Compute the VAT payable.
a. P 150,000 c. P 634,000
b. P 534,000 d. P 654,000
144.
4. A manufacturing subcontractor generated the following receipts from various
clients: 145.
146. Receipts from PEZA locator P 4,000,000
147. Receipts from Non-PEZA locators 1,000,000
148. Input VAT traceable PEZA clients 100,000
149. Input VAT traceable to non-PEZA locators 50,000
150. Input VAT on general operations 60,000
151.
152. Compute the VAT payable.
a. P 390,000 c. P 50,000
b. P 58,000 d. P 0
153.
5. DZQC, radio broadcasting company with P 8M annual receipts, generated a total revenue of
P 1M out of which P 800,000 was collected during the month. It incurred a P 600,000 total
expenditures out of which P 224,000 were paid to VAT suppliers.
154.
155. Compute the VAT payable.
a. P 0 c. P 48,000
b. P 24,000 d. P 72,000
156.
6. A VAT-taxpayer had the following data during the month:
157.
158. Regular sales P 3,000,000
159. Export sales 1,500,000
160. Input VAT on regular sales (P 80,000
161. applied for tax credit certificate) 100,000
162.
163. Compute the VAT payable.
a. P 120,000 c. P 20,000
b. P 100,000 d. P 0
164.
7. An insurer had the following receipts and input VAT data during the month:
165.
166. Life Non-life Total .
167. Cash collection P 4,000,000 P 2,500,000 P 6,500,000
168. Promissory note 500,000 100,000 600,000
169. Traceable input VAT 120,000 80,000 200,000
170. Other input VAT 70,000
171.
172. Compute the VAT payable.
a. P 232,000 c. P 207,000
b. P 220,000 d. P 195,000
173.
8. A lessor of commercial spaces had the following receipts and input VAT data for the month:
174.
175. Spaces with P 5,000 monthly rental P 500,000
176. Spaces with P 10,000 monthly rental 800,000
177. Spaces with P 15,000 monthly rental 700,000
178. Spaces with P 20,000 monthly rental 1,000,000
179. Total P 3,000,000
180.
181. Total input VAT during the month
182.
183. Compute the VAT payable.
a. P 360,000 c. P 204,000
b. P 270,000 d. P 153,000
184.
9. A domestic airliner had the following transactions during the month:
185.
186. International operation
187. Receipts from outgoing flights P 2,000,000
188. Receipts from incoming flight 2,500,000
189.
190. Domestic operation
191. Transport of passengers P 4,000,000
192. Transport of cargoes, mails, excess baggage 1,500,000
193.
194. Total claimable input VAT P 468,000
195.
196. What is the VAT payable?
a. P 309,000 c. P 52,363
b. P 192,000 d. P 12,000
197.
10. A seller of goods had the following sales:
198.
199. Sales of unprocessed agricultural food products P 200,000
200. Sales of processed agricultural products 300,000
201. Sales of non-food products 500,000
202.
203.
204. Input VAT
- Purchase of goods and supplies P 28,000
- Purchase of equipment (4 year life) 24,000
205.
 206. Compute the VAT payable.
a. P 68,000 c. P 48,800
b. P 67,500 d. P 44,000

207. Multiple-Choice – Problems : Part 3

1. Denzi Marketing bought a building to house its retail activities. The following relates to its sales
and input VAT during the quarter:
208.
209. Sales of goods P 3,000,000
210. Export sales 1,500,000
211. Sales of VAT-exempt goods 500,000
212. Total sales, exclusive of VAT P 5,000,000
213.
214. Input VAT carry-over in the prior quarter P 60,000
215. Input VAT on purchase vatable goods 150,000
216. Input VAT on building (20 year life) 180,000
217. VAT paid prior months 80,000
218.
219. What is VAT payable?
a. P 0 c. P 70,000
b. P 64,000 d. P 130,000
220.
2. A VAT-registered bus company had the following receipts in January 2015:
221.
222. Receipts from passengers P 2,700,000
223. Receipts from cargoes 300,000
224. Input VAT on gasoline 50,000
225. Input VAT on bus insurance and repairs 30,000
226. Input VAT on purchase of new bus 360,000
227.
228. What is the VAT payable for January ?
a. P 0 c. P 30,000
b. P 27,400 d. P 274,000
229.
3. A domestic sea carrier had the following receipts and attributable input VAT for the month:
230.
231. Receipts from passengers P 2,400,000
232. Receipts from cargoes 600,000
233. Total input VAT for the month 240,000
234.
235. What is the VAT payable?
a. P 120,000 c. P 24,000
b. P 48,000 d. P 0
236.
4. A VAT registered television company with annual receipts of P8M reported P 1M total revenue
for the month of June 2015. It collected P 1,200,000 from various clients including advances
and paid P 800,000 of expenses, P 560,000 of which is paid to VAT suppliers.
237.
238. The collections and payments are inclusive of VAT.
 239.
240. What is the VAT payable?
a. P 0 c. P 68,571
b. P 52,800 d. P 76,800
241.
5. A bookstore had the following summary transactions during the
month: 242.
243. Sales of books inventory P 300,000
244. Sales of school supplies, exclusive of VAT 700,000
245. Rental expense, inclusive of VAT 56,000
246. Salaries expense 100,000
247. Utilities expense, exclusive of VAT 20,000
248.
249. What is the VAT payable?
a. P 120,000 c. P 78, 120
b. P 84,000 d. P 77,000
250.
6. Danes Bakeshop had the following details of operations during the
month: 251.
252. Sales of bread P 4,000,000
253. Sales of cakes 500,000
254. Importation of flour 1,000,000
255. Other purchases, inclusive of P 240,000 VAT 2,500,000
256. Salaries expenses 500,000
257. Other expenses, exclusive of P 120,000 VAT 1,200,000
258.
259. Compute the VAT payable.
a. P 20,000 c. 140,000
b. P 60,000 d. 180,000
260.
7. Sweet Papa Corporation is a VAT-registered sugar refiner. Details of its operations are as follows:
261.
262. Domestic sale of refined sugar P 3,000,000
263. Export sales of refined sugar 2,000,000
264. Purchases of sugar cane P 1,000,000
265. Other purchases, inclusive of VAT 448,000
266. Advanced input VAT paid P 240,000
267.
268. What is the VAT payable?
a. P 312,000 c. P 72,000
b. P 272,000 d. P 32,000
269.
8. Baguio General Hospital had the following receipts and input VAT:
270.
271. Receipts from hospital operations P 20,000,000
272. Sales of medicines 4,000,000
273. Input VAT traceable to hospital operations 2,100,000
274. Input VAT on hospital drugstore 120,000
275.
276. Compute the VAT payable.
a. P 660,000 c. 300,000
 b. P 360,000 d. 260,000
277.
9. A VAT-registered professional review school had the following receipts during the month:
278.
279. Tuition fees P 800,000
280. Miscellaneous fees 100,000
281. Sale of snacks 150,000
282.
283. Reviewer salaries 300,000
284. Purchase of supplies, exclusive of VAT 150,000
285. Other expenses, inclusive of P 16,000 VAT 220,000
286.
287. Compute the VAT payable.
288. a. P 0 c. P 92,000
289. b. P 2,000 d. P 110,000
290.
10. Cordon College had the following receipts and input VAT payments:
291.
292. Tuition fees P 800,000
293. Miscellaneous fees 200,000
294. Input VAT 20,000
295.
296. Compute the VAT payable.
297. a. P 0 c. P 76,000
298. b. P 4,000 d. P 100,000
299.
11. Polaris Company, a VAT seller, had the following sales and purchases during the month as
recorded on its books of accounts:
300.
301. Costumers
302. Government Foreigners Others Total .
303. Sales P 1,000,000 P 2,000,000 P 4,000,000 P 7,000,000
304. Purchases 600,000 1,200,000 3,000,000 3,800,000
305.
306. Polaris Company claimed P 45,000 of input VAT on export sales as a tax credit
307.
308. Compute the VAT payable
309. a. P 71,000 c. P 144,000
310. b. P 96,000 d. P 189,000
311.
12. A VAT taxpayer made the following sales:
312.
313. Sale to the government P 250,000
314. Sale to non-profit institutions 350,000
315. Sale to the a registered Ecozone export trader 200,000
316. Sales to persons engaged in business 700,000
317. Sales to persons not engaged in business 500,000
318. Total sales P 2,000,000
319.
320. Purchases and payments, inclusive of VAT P 1,512,000
321.
 322. P 20,000 actual input VAT is traceable to the sales to the
government. 323.
324. Compute the VAT payable.
325. a. P 0 c. P 56,500
326. b. P 54,000 d. P 78,000
327.
328.
329.
330.
331.
332.
333.
334.
335.
336.
337.
338.
339.
340.
341.
342.
343.
344.
345.
346.
347.
348.
349.
350.
351.
352.
353.
354.
355.
356.
357.
358.
359.
360.
361.

362. Answers: 372. 8. T

363. 373. 9. T
364. True or False 374. 10. F
365. 1.F 375. 11. F
366. 2. F 376. 12. T
367. 3. T 377. 13. T
368. 4. T 378. 14. F
369. 5. T 379. 15. F
370. 6. F 380.
371. 7. T 381. Multiple Choice – Theory
382. 1. A 408.
383. 2. C 409. Multiple Choice – Problems: Part 2
384. 3. D 410. 1. C
385. 4. A 411. 2. D
386. 5. A 412. 3. D
387. 6. C 413. 4. D
388. 7. C 414. 5. A
389. 8. D 415. 6. B
390. 9. C 416. 7. D
391. 10.C 417. 8. B
392. 418. 9. B
393. Multiple – Choice Problems: Part 1 419. 10. C
394. 1. B 420.
395. 2. D 421. Multiple Choice – Problems: Part 3
396. 3. B 422. 1. B
397. 4. B 423. 2. B
398. 5. A 424. 3. C
399. 6. D 425. 4. C
400. 7. B 426. 5.C
401. 8. C 427. 6.D
402. 9. C 428. 7.D
403. 10. C 429. 8.B
404. 11. D 430. 9.C
405. 12. A 431. 10.A
406. 13. A 432. 11. A
407. 14. C 433. 12. C