University of Baguio

School of Business Administration and Accountancy

General Luna corner Assumption Roads, Baguio City 2600
Telephone Numbers: (074) 442-4915, 442-4730, 442-3036 local 240/209
Mobile Phone Number: +639209245627
Fax Number: (074) 442-3071
Email Address: commerce@ubaguio.edu

BACTNG1
Final Common Examinations

Name:______________________________________________

Name of Teacher:___________________________________

Multiple Choice: Select the best answer for the following questions.
Present your solutions in a yellow paper for questions 1 to 40, use
the attached worksheet for questions 41 to 50. No solution, no point.
3 points each.

1. If Cash is P114,000; Accounts receivable is P200,000, Office

equipment is P30,000; Accounts payable is P20,000; Notes payable is
P12,000; How much is the Capital of the owner?
a. P312,000 c. P324,000
b. P174,000 d. P344,000

2. If the Merchandise Inventory beginning is P50,000; Purchases is

P241,500; freight-out is P4,000; Purchase returns and allowances is
P8,500; Cost of Sales is P252,000. How much is Merchandise Inventory
End?
a. P19,000 c. P31,000
b. P39,500 d. P35,000

3. If the Sales is P450,000; Net income is P90,000; Cost of Sales is

P210,000; Operating expenses is P150,000; How much is Gross profit?
a. P600,000 c. P180,000
b. P 90,000 d. P240,000

4. If Net Loss is P10,000; Operating expenses is P50,000; Cost of Sales

is P30,000; How much is Sales?
a. P90,000 c. P80,000
b. P70,000 d. P30,000

5. Beginning balance for Assets is P400,000; Beginning balance for

liabilities is P240,000; Ending balance for Assets is P480,000;
Ending balance for liabilities is P260,000; Net income for the year
is P120,000; Additional investment for the year is P80,000 and
Drawings is ?
a. P60,000 c. P140,000
b. P20,000 d. none

6. The equipment was bought April 30, 2008 with a cost of P88,000,
salvage value after 13 years of 10,000. What is the depreciation
for the fiscal year ended March 31, 2012?
a. P1,500 c. P7,500
b. P7,333 d. P6,000

7. You sold Merchandise April 15, 2010 worth P200,000 Terms 15, 10,
5, 2/30, n/45. How much is the worth of your sales to be recorded
in the books?
a. P200,000 c. P143,550
b. P145,350 d. P142,443
8. You bought Merchandise January 21, 2010 worth P200,000 Terms:
2/10, 1/15, n/30, EOM.. You paid on February 14, 2010. How much
cash did you pay on February 14?
a. P194,040 c. P198,000
b. P196,000 d. P200,000

9. The goods you bought is worth P440,000 inclusive of 10% freight.

If the goods has a terms of FOB shipping point, freight prepaid,
how much is your accounts payable?
a. P396,000 c. P400,000
b. P44,000 d. P440,000

10.If the total liabilities of the business is P200,000 and its

capital contributed is 60% of the total assets, then the total
assets is
a. P300,000 c. P500,000
b. P333,333 d. P800,000

11.If the annual depreciation is P12,000 and the accumulated

depreciation is P36,000, at depreciation rate of 20% per year, the
net book value of the asset is
a. P24,000 c. P204,000
b. P48,000 d. P324,000

12.The total assets of the business before collection of receivables

is P150,000. What will be the balance of asset account if 3/4 of
P16,000 accounts receivable is collected in check?
a. P138,000 c. P162,000
b. P150,000 d. P174,000

13.The following information is available for Cart Company for the

year 2010 which are Disbursement for purchases in the amount of
P580,000’ Increase in trade accounts payable in the amount of
P50,000 and Decrease in merchandise inventory in the amount of
P20,000. What is the cost of goods sold for the year?
a. P650,000 c. P550.000
b. P610,000 d. P510,000

14.The ledger account in servicing shows the following:

Accounts receivable P250,000
Accounts payable 200,000
Capital 100,000
Cash ?
Expenses 350,000
Revenues 500,000
What is the cash balance?
a. P150,000
b. P250,000
c. P200,000
d. P450,000
15.The total assets of X firm is P350,000 of which P50,000 is accounts
receivable. Subsequently, P22,500 of accounts receivable was
collected. What is the new balance of its total assets?
a. P377,500
b. P322,500
c. P350,000
d. P400,000

16.The net asset (capital) of Y was P125,000. An account payable of

P11,700 was paid. What is the new balance of Y’s net asset?
a. P136,700
b. P113,300
 c. P125,000
d. P101,600

17.If the ending inventory is P10,000 which is ½ of the beginning

inventory and is 1/5 of the total purchases, what is the cost of
sale?
a. P40,000
b. P45,000
c. P50,000
d. P60,000

18.The pre-collection is P600. This is applicable for a six-month

rental period ending January 31, 200B. The balance sheet to be
prepared is dated December 31, 200A. If the pre-collection was
recorded under the income method, the liability to be recorded would
be
a. P500
b. P 50
c. P550
d. P100

19.The total sales was P1,000,000 of which sales on cash basis

amounted to P400,000. The policy of the business is to provide 1%
of credit sales as bad debts expense. The bad debts expense is
a. P10,000
b. P 4,000
c. P 6,000
d. None.

20.The net book value of the plant asset at the start of the year is
P480,000. The depreciation rate is 2% per year. The net book value
at the end of the year is P470,000. If there are no additions and
disposals of assets, the cost of assets would be
a. P 9,600
b. P 9,400
c. P 10,000
d. P500,000

21.The prepaid rent is P12,000 good for three months starting November
30, 200A. The balance sheet date is December 31, 200A. The
prepayment was recorded under asset method. The correct rent expense
for the given period would be
a. P 4,000
b. P 8,000
c. P12,000
d. None.

22.The 90-day non-interest bearing note amounting to P50,000 was

issued on November 30, 200A. The prevailing interest rate is 12%.
The accrued interest as of December 31, 200A is
a. P 500
b. P1,000
c. P1,500
d. None.

23.The beginning balance of unused supplies is P500. During the period

the total purchases of supplies amounted to P2,000 initially
recorded as asset. At the end of the period, the actual unused
supplies is P200. The supplies expense to be reported for the period
is
a. P 200 b. P 500 c. P1,800 d. P2,300
24.The business issued a 90-day promissory note of P20,000, carrying
an interest of 12% per year. The promissory note is dated May 1,
200A and the balance sheet date of the business is June 30, 200A.
The accrued expense is
a. P 200 b. P 400 c. P 800 d. P1,600.
25.The purchase invoice shows the amount of P250,000, 2/10;1/20;n/30;
FOB destination collect, P200. If the account is paid 15 days after
the invoice date, the net payment should be
a. P245,000 b. P247,500 c. P247,300 d. P244,800

26.C purchased merchandise for P 5,000 and paid P200 for freight, FOB
Destination collect. The merchandise was sold at 120% of cost. The
gross profit is
a. P1,000 b. P1,040 c. P6,000 d. P6,240

27.The total purchase is P1,176, net of 2% cash discount. Unsold

portion of purchase is P176. The sale is at mark-up of 10%. The
gross profit is
a. P117.60 b. P88.24 c. P115.25 d. P100.00

28.The term of a P300,000 purchase is 2/30; n/60; FOB, shipping point

prepaid, P300. If the account is paid on the 20th day from the
invoice date, the total payment is
a. P294,000 b. P299,700 c. P294,300 d. P300,300

29.If revenue was P45,000, expenses were P37,500, and the owner’s
withdrawals were P10,000, the amount of net income or net loss would
be:
a. P45,000 net income
b. P7,500 net income
c. P37,000 net loss
d. P2,500 net loss

30.The business is a servicing business. For the period it collected

P50,000 cash and still have receivable amounting to P25,000 for the
total services rendered. How much is the business revenue for the
period?
a. P50,000 c. P25,000
b. P75,000 d. P100,000

31.The total assets of Best Service is P500,000. Twenty five percent

represents the claim of the owner. Its liability, therefore is
a. P375,000 c. P100,000
b. P400,000 d. P125,000

32.The total cash payments made by the business for the period
amounted to P100,000 as follows:
Purchases of equipment for business use 55,000
Salaries of the employees 30,000
Water and electric used in business 10,000
Taxes and licenses of the business 5,000
How much is the total operation expense from these payments?
a. P45,000 c. P100,000
b. P95,000 d. P40,000

Use the following information to answer the questions 33 to 35.

Account Name Debit Credit
Sales 75,000
Sales Returns and Allowances 1,500
Sales Discounts 1,000
Purchases 17,000
Purchases Returns and Allowances 2,000
Freight In 3,000
Selling Expenses 7,500
General and Administrative 27,500
Expenses
In addition, beginning merchandise inventory was 5,500 and ending
merchandise inventory was 3,500.

33. Net sales for the period were

a. P75,500 b. P72,500 c. P73,500 d. P77,500

34. Cost of goods sold for the period was

a. P23,500 b. P16,000 c. P20,000 d. P17,000

35. Net income for the period was

a. P52,500 b. P45,000 c. P25,000 d. P17,500

36. The following incomplete records are presented to you by Cute

Co.:
Net purchases P 180,000.00
Net Sales 220,000.00
Ending inventory 40,000.00
Gross profit 70,000.00

Total goods available for sale would amount to?

a. P120,000
b. P190,000
c. P150,000
d. P200,000

37. Assuming that net cost of purchases was 90,000 during the year
and that ending merchandise inventory was 2,000 less than the
beginning merchandise inventory of 25,000, how much was cost of
goods sold?
a. P113,000
b. P 67,000
c. P 92,000
d. P117,000

38. Hendricks Construction purchased a crane on January 1, 2010, for

P410,000. At the time of purchase, the crane was estimated to have a
life of 5 years and a residual value of P10,000. If Hendricks uses
the straight-line method of depreciation, what will be the
depreciation expense for the crane in 2010?
a. P80,000 b. P82,000 c. P60,000 d. P61,500

39. Assuming the same data above, how much is the book value at
December 31, 2012?
a. P250,000 b. P30,000 c. P246,000 d. P170,000

40. Goods totaling 5, 000 purchased February 2 on terms of 2/10, n/30

and on which returns of 1, 000 were made on February 10 would be
subject to which of the following discounts if paid for on February
12?
a. None b. P100 c. P80 d. P20

Use the following information for questions 41 to 50:

COMPLETION OF ACCOUNTING CYCLE

The following trial balance was taken from the ledger of Ancient
Books Store at the end of its annual accounting period.
 Acient Bookstore
Trial Balance
For the Fiscal year ended June 30, 200B

Cash P 6,350.00
Accounts receivable 18,560.00
Merchandise Inventory 58,900.00
Store supplies on hand 3,822.00
Prepaid Insurance 3,200.00
Store equipment 64,400.00
Accumulated depreciation - Store Equipment P 29,400.00
Accounts payable 24,600.00
Maka Luma, Capital 34,902.00
Maka Luma, Drawing 5,800.00
Sales 228,800.00
Sales returns and allowances 1,940.00
Purchases 120,600.00
Purchase Returns and Allowances 29,800.00
Purchase Discount 2,712.00
Freight-In 4,522.00
Selling Expenses 41,020.00
Administrative Expenses 21,100.00
------------------ ------------------
Totals P 350,214.00 P 350,214.00
========== ==========

Required:
Complete the attached worksheet with the following information
and answer multiple choice questions 41 to 50.

i. Merchandise Inventory, June 30, 200B P62,444

ii. Selling expenses P3,100

Store supplies on hand P3,100

iii. Administrative expenses P2,500

Prepaid Insurance P2,500

41.Compute for the net sales

a. P228,800 b. P230,070 c. P226,860 d. P225,800

42.Compute for the gross purchases

a. P120,600 b. P125,122 c. P92,610 d. P151,510

43.Compute for the cost of goods sold

a. P151,510 b. P122,478 c. P89,066 d. P84,544

44.Compute for total operating expenses

a. P67,720 b. P62,120 c. P64,620 d. P65,220

45.Compute for the net income

a. P70,074 b. P75,674 c. P73,174 d. P72,574

46.Compute for the total Current Assets

a. P94,376 b. P91,276 c. P85,232 d. P88,776

47. Compute for the net book value of Total Non-current Assets
 a. P64,400 b. P35,000 c. P93,800 d. P59,376

48.Compute for the total Assets

a. P126,876 b. P129,376 c. P123,776 d. P120,232

49.Compute for the total Liabilities

a. P26,400 b. P23,900 c. P23,300 d. P32,000

50.Compute for the Maka Luma Capital

a. P104,976 b. P29,102 c. P64,274 d. P99,176

Answer section
1. A
2. D
3. D
4. B
5. C
6. D
7. B
8. C
9. C
10. C
11. B
12. C
13. A
14. C
15. C
16. C
17. D
18. D
19. C
20. D
21. A
22. A
23. D
24. B
25. C
26. A
27. D
28. C
29. B
30. B
31. A
32. A
33. B
34. C
35. D
36. B
37. C
38. A
39. D
40. C
41. C
42. B
43. C
44. A
45. A
46. D
47. B
48. C
49. A
50. D