1. Statement 1: The account title "VAT payable” refers only to the excess of Output Tax over the
Input Tax
Statement 2: In value-added tax, although the seller-businessman is the one statutorily liable to
pay he does not shoulder the burden of the tax
Statement 3: Zero rated transactions are exempt transactions because it does not result to output
tax. Statement 4: There may be an export sale although there is no sale or shipment of the goods from
the Philippines to other countries
Which of the following options is correct?
A.
B.
C.
D.
Statements 2 and 4 are true.
Statements 1 and 2 are false.
Statements 3 and 4 are true.
Statement 4 is false
2.
Tsutsuwap Company, a VAT-registered business, had the following data during the quarter
Export sales
Domestic sales (tax included)
Purchases of goods for export and domestic sales
Purchases of supplies for export and domestic sales
P 1,900,000
1,232,000
888,500
124,850
Assuming that the input taxes paid on purchases of goods for export are claimed as tax credit, the
VAT payable by Tsukuba Company is A.
B.
C.
D.
12,895
10,398
177,895
84,895
3.
In Question 2, assuming that the input taxes attributable to export sales are being claimed as
refund, the amount refundable is
A.
72.000
B.
12,895
C.
77,015
D.
Zero
4.
Joey, a non-VAT taxpayer purchased merchandise worth P11,200, VAT inclusive, from Willie, a
VAT registered seller. The passed on VAT of P1,200 on the purchases is A.
an expense
B.
part of the cost of purchases
C.
a tax credit
D.
ignored
5.
Altura sold goods at an invoice value of P123,200 to Beltran on account. Beltran sold the same
goods to Cantona for P143,000 (exclusive of tax) cash. All of them are VAT registered taxpayers. The
accounting entry to record the sales in the books of Beltran is.
A.
Cash
P 160,160
Sales
P 143,000
Output tax (143,000 x 12%)
17,160
B. Cash
143,000
Sales
C.
D.
143,000
Cash
Sales
Cash
Sales
Output tax
160,160
160,160
143,000
125,840
17,160
Numbers 6 and 7 are based on the following information:
6.
The Pastry Shop sells cakes and pastry items to well-known hotels around the Metro Manila area.
The hotels are allowed credit based on the track record of the hotels. The total amounts received or
receivable from sales by the Pastry Shop in the 2nd quarter of 2015 were P224,000, including the valueadded tax. Seventy five percent of the sales are normally on account. How much is the value-added tax on
the sales for the 2nd quarter of 2015? (RPCPA)
A.
P20,000
B.
24,000
C.
26,880
D.
15,000
7.
Cruz, a trader, made the following transactions of goods, exclusive of VAT during the second
quarter
Cash sales
Open account sales
Consigned goods - delivered:
P
200,000
100,000
April 15 100,000
May 15
100,000
June 15 100,000
The output tax for the second quarter is A.
B.
C.
D.
P 40,000
48,000
60,000
36,000
Questions 17 through 19 are based on the following information:
8.
Mongolia Company, a VAT registered business had the following data in its books on July 31,
2015:
Domestic sales P 709,500
Sales returns 26,400
Goods shipped on consignment (net of tax):
Units
Unit Price
25
20
12
P22,000
22,000
22,000
July 5
June 5
May 5
Goods withdrawn for use by the company
Goods taken as payment to creditor
Freight and insurance of goods
Purchases
Raw materials
Supplies
Capital goods
Salaries of employees
38,500
26,950
4,675
484,000
61,600
60,500
235,000
During the month, one consignee remitted cash net of 20% commission representing the payment for five
(5) units delivered on June 5
Another consignee remitted cash of P220,000, gross of 20% commission, representing payment
for 10 units sold in July Other than the commission, Mongolia company gave 5% discount/rebate to the
consignee for selling ten (10) units in a one month period
The output tax in July is A.
B.
C.
D.
124,450
121,050
161,106
134 255
9.
A.
B.
C.
D.
The input tax is 61,078
73,293
65,440
None of the above
10.
A.
B.
C.
D.
The amount of VAT payable is P 87,813.00
69,350.00
66,525.00
78,404 46
11.
A.
B.
C.
A creditable input tax allowed on one who becomes subject to VAT for the first time
Presumptive input tax
Transitional input tax
Excess input tax
D.
Total input tax
12.
Isaac Company, a newly VAT registered business, has the following data in January (all amounts
are inclusive of tax)
Merchandise inventory
Actual VAT paid on the inventory
Sales, total invoice amount
Purchases
P 204,000
16,000
469,000
57 400
Fifty percent (50%) of the merchandise inventory on January 1 were purchased from non-VAT registered
sellers
The VAT payable by Isaac Company is A.
B.
C.
D.
P 30,100
28,100
3,960
4,950
13.
An owner of heavy equipments is engaged in equipment rental It used to be VAT-exempt
because its annual receipts never exceeded P3,000,000. On January 2, 2020 it decided to register under
the VAT system. The following data were from the first quarter ending March 31, 2020
Rental from heavy equipments with 12% VAT
P 336,000
Purchases of supplies (February) gross of VAT
112,000
Inventory of supplies
Subject to VAT Jan 1, 2020
50,400
Not subject to VAT
60,000
VAT paid on the inventory of supplies, Jan 1, 2020
5,400
The VAT payable for the quarter ending March 2020 is
A.
B.
C.
D.
P12,171
33,792
18,600
22,992
14.
On January 22 Ginatan Company sold goods to Baduya Department Store worth P16,800, gross
of value-added tax. Term: 2/10, n/30. F.O.B. destination, freight prepaid, P800, value-added tax not
included. How much is the output tax? How much is the input tax?
Output tax
Input tax
A.
P2,016.00
P 96.00
B.
1,800.00
96.00
C.
1,800.00
85.71
D.
1,800.00
None
15.
In the preceding number if there was a return of defective goods worth P2,240 (inclusive of VAT)
within the discount period and the balance of the receivable was collected on January 30, the amount of
the Output Tax upon collection is
A.
DebitP5.20
B.
Debit - 31.20
C.
Credit -P 5.20
D.
Credit - 34.94
16.
Ben Door supplier in Manila, sold merchandise on May 5, 2015 for P100,000 (exclusive of VAT)
to Bay Yerr, a storeowner in Cebu. The terms are: 2/10, n/30 FOB shipping point, freight prepaid Cost of
freight per way bill is P1,120 .Payment was made by Bay on May 12, 2015 after a return of detective
merchandise worth P5,600, tax inclusive.
Based on the above transactions, how much is the balance of Output tax to Ben Door?
11,172
17.
Beth, had the following receipts during the month (exclusive of VAT):
Jeepney 1
Jeepney 2
Bus
Sea Vessel
Cessna Plane for hire
Passenger
P20,000
P30,000
P15,000
P1,500,000
P800,000
Cargo
P8,500
P800,000
P560.000
The output tax during the period is a.
b.
c.
d.
164,220
441,000
439,200
440,220
18.
Bonnevie is a real estate dealer. During the month of November 2015, he sold three (3) lots under
the following terms
Selling price
Cost
Gain / loss
Lot 1
Lot 2
P 250,000
150,000
100,000
P 200.000
130,000
70,000
Lot 3
P300.000
175.000
125,000
Terms:
Downpayment, November 5
Due December 5
Jan to Dec 2016
25,000
50,000
25,000
200,000
40.000
20,000
20,000
130,000
240,000
All amounts indicated above do not include the tax
The value-added tax in November is
A.
B.
C.
D.
19.
is A.
B.
C.
D.
P 26,500
31,800
34,800
90,000
Based on the information given in No. 18 above, the value-added tax for the month of December
P 5,400
4,500
10,000
None
20.
Dimagiba Construction Company entered into a contract with the government to construct an
edifice for a total contract price of P25,000,000. During the month, the government paid P10,000,000 of
which it withheld 5% final withholding tax How much is the VAT payable by the company on the
government contract?
A.
P150,000
B.
850,000
C.
0
21.
Celebrado, a VAT registered taxpayer, had the following data on importation in 2015
For Sale
Invoice cost (Exchange rate: $1 : Php 46)
Customs duties
12%
Freight
Insurance
Other charges before release from customs house
Facilitation fee
- NON VAT
Freight from customs house to warehouse (net of VAT) 12,000
$ 5,650 $ 850
10%
20,000
28,000
7,000
10,000
1,200
Own Use
4,000
4,250
2,500
5,000
Assuming the customs duties are determined on the basis of the quantity or volume of the goods, the VAT
on the importation is
A.
B.
C.
31,260
37,285
47,981.76
D.
44,742.00
22.
In Question 39 above, how much is the VAT payable if the imported goods for
sale were sold for P665,000 (inclusive of tax) 10 days after its delivery to the warehouse
A.
B.
C.
D.
28,279.44
32,298.00
17,540.00
25.068,00
Numbers 23 to 25 are based on the following information
Sumilco, a manufacturer of refined sugar, became subject to VAT effective December 1 of the current
year. During the month, the following are its data:
Refined sugar withdrawn from refinery, inclusive of VAT
Purchases of Supplies from VAT registered suppliers
Packaging materials, VAT inclusive
Sugar cane from planters
Water bill
Salaries of officials and employees
Inventory per balance sheet, December 1:
Packaging materials, purchased from VAT registered
Supplies purchased from VAT registered persons
23.
A.
B.
C.
D.
The presumptive input tax is 35,000
5,250
13,860
14,000
24.
A.
B.
C.
D.
The transitional input tax is 3,506.25
2,975.00
654.50
2,998.00
25.
A.
B.
The total creditable input taxes is 24,530.54
13,828.00
P 924,000
38,500
27,060
350,000
12,000
150,000
17,875
14,850
C.
D.
92,935.00
22,935 00
26.
A.
B.
C.
D.
The VAT payable is 61,065.00
70,172.00
74.469.46
69,815.00
27.
Tala Company had the following data for the 1st quarter of the current year (VAT exclusive)
Taxable sales
P 600,000
Exempted sales
300,000
Zero-rated sales
100,000
Input tax which cannot be directly
attributed to any of the above sales
50,000
The VAT payable for the quarter if the input tax on zero-rated sales is claimed as tax credit is A.
B.
C.
D.
42,000
37,000
32,000
22,000
28.
Combined Company operates a VAT business and a non-VAT business. During the month, its
books revealed the following record of sales and purchases:
Sales (VAT business)
P 600,000
Sales (Non-VAT business)
200,000
Purchases (VAT business)
401,500
Purchases (Non-VAT business)
80,000
Purchases (for use in VAT and Non-VAT businesses) 64,000
The value-added tax payable by Combined Company is
29.
18,060
Given the following data during the first quarter of the current year:
Month
Output Tax
Input Tax
January
P20,000
P15,000
February
P40,000
P22,000
March
P50,000
P10,000
In the books of the taxpayer, there was a debit balance of input tax of P8,000 in the last quarter of
the preceding year.
The VAT Payable for the month of January -a.
b.
c.
P(3,000)
P 5,000
P0
d.
P3,000
30. Vat payable for the month of February -a.
b.
c.
d.
P18,000
P15,000
P10,000
None
31. Tax Payable that must appear on BIR form 2550Q?
a.
b.
c.
d.
55,000
63,000
40,000
53,000
32. Felicisma had the following data during the month :
Sales, net of VAT
Purchases of goods for sale, exclusive of vat
Purchase of Machines (VAT Not Included)
Machine Life
The amount of VAT Payable ? --Case 1 ? 73,920
Case 2? (84,000)
Case 1
Case 2
P 1,900,000
P1,800,000
P 1,260,000
P1,600,000
P 1,440,000
P 900,000
6 years
3 years