Tax 2 - Midterm Exam

Republic of the Philippines
SORSOGON STATE COLLEGE

Bulan Campus
Bulan, Sorsogon
1st quiz - Midterm
Business and Transfer Taxes MICHELLE M. BONGALONTA, CPA, CTT, MICB
Part A. Encircle the correct answer.

1. An act whereby a person is permitted with the formalities prescribed by law, to control to a
certain degree the disposition of his estate, to take effect after his death.
A. will C. legitime
B. Succession D. device
2. The person whose property is transmitted through succession, whether or not he left a will.
A. successor C. legatee
B. heir D. decedent
3. The person called to the succession, either by the provision of a will or by operation of law.
A. Heir C. devisee
B. legatee D. decedent
4. Succession which results from the designation of an heir, made in a will executed in the form
prescribe by law.
A. Testamentary C. intestate succession
B. mixed succession D. legal succession
5. Transmission of properties where there is no will, or if there is a will, the same is void or nobody
succeeds in the will.
A. testamentary succession C. legal succession
B. mixed succession D. escheat
6. Transmission of properties which is effected partly by will and partly by operation of law.
A. testamentary succession C. legal succession
B. mixed succession D. intestate succession
7. An heir to a particular personal property given by virtue of will.
A. Legacy C. devisee
B. successor D. legatee
8. An heir to particular real property given by virtue of will.
A. devise C. successor
B. devisee D. legatee
9. Part of the testator’s property which he cannot dispose of because the law has reserved it for
certain heirs who are called compulsory heirs.
A. legitimate C. free portion
B. legitime D. estate
10. A will which is entirely written, dated and signed by the testator.
A. hieloglyphics C. holocaust
B. holographic D. own will
11. Which of the following statement is wrong? A distinction between a donation inter vivos and a
donation mortis causa is:
a. The first take effect during the lifetime of the grantor while the second takes effect after the
death of the grantor.
b. The first is subject to the donor’s tax while the second is subject to the estate tax.
c. The first always requires a public document while the second may not require a public
document.
d. The first is valued at fair market value at the time the property is given while the second is
valued at fair market value at the time of the death of the grantor.
12. The following are the requisites of a donation for purposes of the donor’s tax, except one:
a. capacity of the donor c. delivery of the subject matter of gift
b. capacity of the donee d. donative intent
13. The following are major internal revenue business taxes in the NIRC of 1997, except one:
A. Income tax C. Value-added tax
B. Excise tax D. Percentage tax
14. Alamid imported cigarettes from Taiwan for sale. At a later date, he sold cigarettes in the
Philippines. He is subject to value-added tax. He is also subject to the business tax of:
A. Excise tax C. Percentage tax
B. Income tax D. None of these
Problem 1
Topline Company sold to Bestbooks Enterprises goods worth P 10 000, exclusive of tax. Record the
accounting entries in the sales book and in the purchase book if:
1. The buyer and the seller are subject to VAT.
2. Seller is VAT registered, while buyer is not.
3. Seller is no VAT registered, while buyer is VAT registered.
Answer:
Sales book Purchase book
1. Cash/ accounts receivable P 11 200 Purchases P 10 000
Sales 10 Input tax 1 200
000 Cash 11 200
Output Tax 1
200
2. Cash/ accounts receivable P 11 200 Purchases P 11,200
Sales 10 Cash 11 200
000
Output Tax 1
200
3. Cash/ accounts receivable P 10 000 Purchases P 10 000
Sales 10 Cash 10 000
000
Problem 2
All amounts given are total invoice costs/prices:
A, non-VAT taxpayer, sells to B, VAT taxpayer P 67 200
B, VAT taxpayer, sells to C, VAT taxpayer 100 800
C, VAT taxpayer, sells to D, VAT taxpayer, an exporter 168 000
D, VAT taxpayer, exports 300 000
1. The value-added tax of B:
A. Payable of P 3 600 C. Payable of P 10 080
B. Payable of P 10 800 D. Payable of P 12 096
2. The value-added tax of C:
B. Payable of P 6 720 D. Refundable of P 10 900
3. The value-added tax of D:
B. Refundable of P 18 000 D. Refundable of P 36 000
___________________________________________END_____________________________________________

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Republic of the Philippines

SORSOGON STATE COLLEGE

1st quiz - Midterm

Business and Transfer Taxes MICHELLE M. BONGALONTA, CPA, CTT, MICB

Part A. Encircle the correct answer.

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