Transfer and business taxes by ampongan 6th sol man mc vat

MULTIPLE CHOICE – VALUE ADDED TAX TEST TRUE OR FALSE F F 11 T 16 F F F 12 T 17 T T F 13 F 18 F F T 14 F 19 T T 10 T 15 T 20 F TEST MULTIPLE CHOICE - THEORIES A B 15 B 22 B D A 16 C 23 A B 10 B 17 B 24 C D 11 D 18 D 25 D C 12 C 19 B C 13 C 20 C D 14 D 21 B TEST MULTIPLE CHOICE THEORY A D 11 A 16 C C D 12 D 17 D B C 13 D 18 D D D 14 D 19 D A 10 C 15 A 20 C TEST MULTIPLE CHOICE PROBLEMS ANSWER: D Cash sales Open account sales Installment sales Consignment sales, April 15 Total sales Rate of tax Output tax ANSWER: P 200,000 100,000 100,000 100,000 500,000 12% 60,000 D Total sales Multiply by P 220,000 3/28 75 Value-added tax ANSWER: 23,571 C Export sales by VAT registered persons are zero rated sales ANSWER: C Total landed cost Rate of tax VAT payable ANSWER: P 250,000 12% 30,000 A On purchase of goods P120,00 18,00 15,000 153,00 36,00 117,00 On purchase of services Carry over from previous quarter Total Less: Input taxes on purchase returns Net creditable input tax ANSWER: C Output tax (120,000 + 24,000) P144,00 117,00 27,00 Less: Input tax (see solution to Question 5) VAT payable ANSWER: C ANSWER: B Output tax (469,000 x 3/28) Less: Input tax On purchases (57,400 x 3/28) Transitional input tax Inventory (204,000 x 50%) x 2% 2,040 Actual VAT paid 16,000 Allowed (higher) VAT payable ANSWER: C 10 ANSWER: D 50,250 6,150 16,000 76 22,150 28,100 Output tax: Sales Less: Sales returns Net sales 6,800,000 200,000 6,600,00 3/28 5,500,000 300,000 5,200,00 12% 624,000 9,500 Multiply by Purchases, net of input tax Less: Purchase returns Net purchases Rate of tax Input tax Add: Deferred input tax carry-over VAT payable 11 ANSWER: 707,143 633,500 73,643 A Gross receipts (371,250 / 99%) P 375,000 3/2 40,179 Multiply by Value added tax Note: The transportation contractor is subject to VAT because it is engaged in the carriage of the products of A 12 ANSWER: C Output tax: Sales up to Dec 15 (313,500 x 3/28) Inventory on Dec 16 (190,000 x 12%) Input tax: Purchases (215,000 x 12%) Deferred input tax carry-over VAT payable 13 ANSWER: 33,589 22,800 P 56,389 25,800 3,500 A Dutiable value on importation (12,500/10%) Customs duty P 125,000 12,50 9,50 147,00 12 % 17,64 Other charges Total Rate of tax VAT payable 14 ANSWER: 29,300 27,089 D Output tax (4,200,000 x 12%) P504,00 77 Less: Input taxes On purchases (3,850,000 x 3/28) Input taxes carry-over VAT payable 15 ANSWER: 412,500 22,000 A Output tax (8,721,500 - 240,500) x 3/28 P 908,679 Less: Input taxes On purchases (7,398,000 - 215,000) x 3/28 Carry over VAT payable Note: 16 434,500 69,500 P 769,607 58,00 827,607 81,072 This is an actual CPA Board Examination Problem The phrase "carried over from the previous quarter" is more appropriate than "carry over to the next quarter." ANSWER: D Transitional input tax (P300,000 x 2%) P 6,000 Note: The transitional input tax is based on the 2% of the beginning inventory on December 31 because the actual VAT paid on such inventory is not given in the problem 17 ANSWER: C Note: There is a debit to input tax of P6,000 to establish that account in the books The credit is inventory because it reduces the amount appearing in the books by P6,000 which is the amount set up for input tax 18 ANSWER: B Output tax (P770,000 x 3/28) Less: Input tax (414,400 x 3/28) VAT payable P 82,500 44,400 38,100 Note: The transitional input tax which is based on the higher amount between 2% of the inventory and actual VAT paid is allowed only when the taxpayer is subject to VAT for the first time In this problem, the XYZ Merchandising is already a VAT-registered taxpayer 19 ANSWER: C Output tax (P336,000 x 3/28) Less: Input tax (100,000 x 12%) VAT payable P 36,000 12,000 24,000 78 ANSWER: B Output tax (P550,000 x 3/28) Less: Input tax (P165,000 x 3/28) VAT payable P 58,929 17,679 41,250 TEST MULTIPLE CHOICE PROBLEMS ANSWER: B Sales, local Less: Sales returns, local Net sales Multiply by Export sales Output tax Less: Input tax Purchases Less: Purchase returns Net purchases Multiply by VAT payable Answer: P 367,500 15,500 352,000 3/28 P 263,900 17,500 246,400 3/28 24,000 13,400 10,600 D Hotel Restaurant – food and refreshments Restaurant – wines and beer Total gross receipts 24,640.00 37,440.00 19,440.00 81,520.0 12% 9,782.40 Times Output tax Answer: 26,400.00 11,314.29 C Output tax: (200,000 x 12%) Less: Input tax Purchases (70,000 x 12%) 8,400 Transitional input tax: On inventory (50,000 x 2%) 1, 000 Actual VAT paid 5,000 Allowed (higher) 5,00 VAT payable Answer: P 37,714.29 37,714.29 D 79 Sales, food and softdrinks Sales, wines and beer Purchases, food and softdrinks Purchases, wines and beer Net Rate of tax VAT payable P 280,550 152,400 P 110,220 101,250 432,950 211,470 221,480 12% 26,577.60 Answer: D Food and refreshments Wines and beer Cost – food and refreshments - wines and beer Net Times VAT payable P 116,200 58,600 51,000 39,500 P 174,800 90,500 84,300 12% 10,116 Answer: D Food and refreshments Wines and beer Total gross receipts Rate of tax Percentage tax P 116,200 58,600 174,800 18% 31,464 Answer: B Accounts receivable, Apr P 180,000 850,0 00 1,030,00 120,000 910,000 12% 109,200 57,600 51,600 Add: Bills on completed work Total Less: Accounts receivable, Jun 30 Gross receipts Rate of tax Output tax Less: Input tax (480,000 x 12%) VAT payable Answer: B CIF 225,645.0 3,550.00 1,525 00 2,295 00 6,000 00 307 00 2,550 Bank charges Wharfage Arrastre charges Customs duty Brokerage fee Marine cargo insurance 80 00 241,872 00 12 % 29,024.6 Landed cost Rate of tax VAT payable on importation Answer: C Output tax (275,000 x 3/28) P 29,464.29 Less: Input taxes On importation Freight to warehouse (2,000 x 12%) 29,024.6 240.0 VAT payable 29,264.64 199.65 Answer: D Purchases of goods for domestic sales Purchases of supplies on domestic sales Purchase of services Purchases of goods for export Total purchases Multiply by Input tax 374,000 69,848 154,000 55,000 652,848 3/28 69,948 Answer: C Output tax: Domestic sales Domestic sales to export traders Total Multiply by 330,000 274,996 604,996 3/28 Input tax: Goods for domestic sales Supplies on domestic sales Services Goods for export Total Multiply by VAT payable 374,000 69,848 154,000 55,000 652,848 3/28 Answer: C (see computation in Question 15 below) Answer: D (see computation in Question No 15) Answer: C (see computation in Question No 15) Answer: C 81 P 64,821 69,948 ( 5,127) Output tax Less: Input taxes On importation VAT paid April April P 70,000 (47,000) ( 8,000) May P 42,000 (55,000) (13,000) June P 192,000 ( 162,000) ( 21,000) ( 15,000) _ VAT payable 15,000 ( 6,000) Output taxes (2nd quarter) Less: Input taxes On importation Net Less: Tax paid, April Excess tax to be carried over 192,000 162,000 21,000 183,000 9,000 15,000 ( 6,00 0) Answer: C The amount of P 93 is inclusive of the tax Answer: Output tax "A" (2,240,000 x 3/28) P 240,000 Less: Input tax Purchases (537,600 x 3/28) Input tax on purchases of: Goods, A & B (772,800 x 3/28 x 20/25) Supplies, A & B (280,000 x 3/28 x 20/25) Machineries (274,400 x 3/28 x 20/25) VAT payable Supporting computation: Sales “A” (2,240,000/112%) 57,600 66,240 24,00 23,52 68,640 2,000,00 500,00 2,500,00 Sales “B” Total sales Answer: A Output tax: Contract Contract 1,200,000 950,00 200,00 Contract 82 171,360 Gross receipts 2,350,00 x 12% Rate of tax Input tax: Materials (850,000 -[850,000 x 5%]) Subcontractors (1,250,000 – 50,000) Advances to subcontractors Total Rate of tax 807,500 1,200,000 150,000 2,157,500 12% VAT payable 19 282,00 258,90 23,10 Answer: D Cash sales Sales on account 660,800 246,40 22,40 16,80 19,04 8,960 974,400 3/28 104,4 00 31,200 73,200 Consignment sales Payment to creditors Distributed to employees Property dividends Gross selling price Multiply by Output tax Less: Input tax (291,200 x 3/28) VAT payable Answer: C Sales Less: Portion exempt from VAT (66,000 x 50%) Sales subject to VAT Times Output tax 83 P 66,000 33,000 33,000 12% 3,960 ... tax VAT payable P 280,550 152,400 P 110,220 101,250 432,950 211,470 221,480 12% 26,577.60 Answer: D Food and refreshments Wines and beer Cost – food and refreshments - wines and beer Net Times VAT. .. Actual VAT paid 5,000 Allowed (higher) 5,00 VAT payable Answer: P 37,714.29 37,714.29 D 79 Sales, food and softdrinks Sales, wines and beer Purchases, food and softdrinks Purchases, wines and beer... between 2% of the inventory and actual VAT paid is allowed only when the taxpayer is subject to VAT for the first time In this problem, the XYZ Merchandising is already a VAT- registered taxpayer 19