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100+ Free Bookkeeping NC III Practice Questions

Pass your TESDA Bookkeeping NC III Competency Assessment exam on the first try — instant access, no signup required.

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2026 Statistics

Key Facts: Bookkeeping NC III Exam

75%

Passing Score

TESDA

6 hours

Total Duration

1h written + 5h practical

₱540.00

Standard Fee

Official TESDA rate

292 hours

Training Duration

Standard program length

5 years

Certificate Validity

TESDA NC III

1 month

Retake Wait Time

For failed attempts

The TESDA Bookkeeping NC III assessment in the Philippines requires a 75% score to pass. It consists of a 1-hour written exam (30 multiple-choice questions) and a 5-hour practical demonstration covering the full accounting cycle: journalizing, posting, trial balance, financial reports, and internal control reviews. The standard assessment fee is ₱540.00.

Sample Bookkeeping NC III Practice Questions

Try these sample questions to test your Bookkeeping NC III exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1What type of account is Accumulated Depreciation and what is its normal balance?
A.Asset account with a normal debit balance
B.Contra-asset account with a normal credit balance
C.Liability account with a normal credit balance
D.Expense account with a normal debit balance
Explanation: Accumulated Depreciation is a contra-asset account that is presented on the Balance Sheet as a deduction from the related property, plant, and equipment asset account. Because it reduces the value of an asset, its normal balance is a credit, which is the opposite of a standard asset account's normal debit balance. It accumulates the depreciation expense recorded over the useful life of the asset.
2Under the current regulations of the Bureau of Internal Revenue (BIR) in the Philippines following the Ease of Paying Taxes (EOPT) Act, which business document is the principal document that must be issued to a customer for the sale of services?
A.Sales Invoice
B.Official Receipt
C.Delivery Receipt
D.Billing Statement
Explanation: Under the Ease of Paying Taxes (EOPT) Act (Republic Act No. 11976) and RR 7-2024, the Invoice (Sales/Service Invoice) is now the principal document evidencing the sale of both goods and services. The Official Receipt was downgraded to a supplementary document (proof of payment only) and is no longer the primary tax document for services. Therefore, the Sales/Service Invoice must be issued for the sale of services.
3A sole proprietor purchases office supplies worth ₱15,000 on account. Which journal entry is correct to record this transaction?
A.Debit Office Supplies ₱15,000; Credit Cash ₱15,000
B.Debit Accounts Payable ₱15,000; Credit Office Supplies ₱15,000
C.Debit Office Supplies ₱15,000; Credit Accounts Payable ₱15,000
D.Debit Office Supplies Expense ₱15,000; Credit Cash ₱15,000
Explanation: Purchasing supplies 'on account' means buying on credit, which increases both an asset (Office Supplies) and a liability (Accounts Payable). To record this, the asset account Office Supplies is debited for ₱15,000, and the liability account Accounts Payable is credited for ₱15,000. Crediting Cash would only be correct if it were a cash purchase.
4Under the perpetual inventory system, a business purchases merchandise on credit with terms FOB shipping point. The buyer pays the freight charges of ₱2,500 in cash. What is the correct journal entry to record the freight payment?
A.Debit Freight-In ₱2,500; Credit Cash ₱2,500
B.Debit Merchandise Inventory ₱2,500; Credit Cash ₱2,500
C.Debit Freight-Out ₱2,500; Credit Cash ₱2,500
D.Debit Merchandise Inventory ₱2,500; Credit Accounts Payable ₱2,500
Explanation: Under the perpetual inventory system, all costs associated with acquiring merchandise and getting it ready for sale, including freight-in, are debited directly to the Merchandise Inventory account. FOB shipping point means the buyer is responsible for shipping costs. Therefore, the buyer debits Merchandise Inventory and credits Cash for the payment.
5A company using the periodic inventory system purchases merchandise for ₱50,000 with terms 2/10, n/30. Using the gross method, what is the journal entry to record the purchase on the transaction date?
A.Debit Merchandise Inventory ₱50,000; Credit Accounts Payable ₱50,000
B.Debit Purchases ₱49,000; Credit Accounts Payable ₱49,000
C.Debit Purchases ₱50,000; Credit Accounts Payable ₱50,000
D.Debit Purchases ₱50,000; Credit Cash ₱50,000
Explanation: Under the periodic inventory system and using the gross method, purchases are recorded at their full face value (gross amount) in the temporary Purchases account. Therefore, on the purchase date, the business debits Purchases for ₱50,000 and credits Accounts Payable for ₱50,000. Discounts are only recorded if payment is made within the discount period.
6Partner Santos invests ₱100,000 cash and delivery equipment with a book value of ₱150,000 and a fair market value of ₱180,000 into a new partnership. At what value should the delivery equipment be recorded in the partnership books?
A.₱150,000
B.₱180,000
C.₱280,000
D.₱100,000
Explanation: When partners contribute non-cash assets to a partnership, those assets must be recorded on the partnership books at their fair market value at the date of transfer. This ensures that any gains or losses occurring prior to the partnership's formation are kept separate from partnership operations. In this case, the delivery equipment is recorded at its fair market value of ₱180,000.
7Which of the following accounts has a normal debit balance?
A.Sales Returns and Allowances
B.Purchase Returns and Allowances
C.Sales
D.Interest Payable
Explanation: Sales Returns and Allowances is a contra-revenue account that reduces gross sales. Because sales (revenue) has a normal credit balance, its contra-revenue account must have a normal debit balance. Purchase Returns and Allowances is a contra-purchases account with a normal credit balance, Sales has a credit balance, and Interest Payable is a liability with a credit balance.
8Given the following periodic inventory records: Purchases ₱250,000; Purchase Returns and Allowances ₱12,000; Purchase Discounts ₱5,000; and Freight-In ₱18,000. What is the net cost of purchases?
A.₱233,000
B.₱251,000
C.₱238,000
D.₱268,000
Explanation: The formula for net cost of purchases is: Purchases minus Purchase Returns and Allowances minus Purchase Discounts plus Freight-In. Calculation: ₱250,000 - ₱12,000 - ₱5,000 = ₱233,000 (Net Purchases); then add Freight-In: ₱233,000 + ₱18,000 = ₱251,000. This is the final cost added to beginning inventory to find cost of goods available for sale.
9Which BIR-approved document is issued by a merchandising company to record sales of physical inventory on credit?
A.Official Receipt
B.Sales Invoice
C.Purchase Order
D.Collection Receipt
Explanation: In Philippine business operations regulated by the BIR, a Sales Invoice (SI) is the principal document issued to record the sale of goods or merchandise, whether on cash or credit. It acts as the source document for recording sales revenue. Under the EOPT Act (RA 11976), the Official Receipt is now only a supplementary document used as proof of payment/collection.
10A business using the perpetual inventory system pays an outstanding account payable of ₱20,000 within a 2% discount period. What is the correct journal entry to record this payment?
A.Debit Accounts Payable ₱20,000; Credit Cash ₱20,000
B.Debit Accounts Payable ₱20,000; Credit Purchase Discounts ₱400, Credit Cash ₱19,600
C.Debit Accounts Payable ₱20,000; Credit Merchandise Inventory ₱400, Credit Cash ₱19,600
D.Debit Accounts Payable ₱19,600, Debit Merchandise Inventory ₱400; Credit Cash ₱20,000
Explanation: Under the perpetual inventory system, purchase discounts are credited directly to the Merchandise Inventory account rather than a separate Purchase Discounts account. The transaction pays off the full liability of ₱20,000 with a cash payment of ₱19,600 (98%) and a reduction in inventory cost of ₱400 (2%). Therefore, Accounts Payable is debited for ₱20,000, Merchandise Inventory is credited for ₱400, and Cash is credited for ₱19,600.

About the Bookkeeping NC III Exam

National competency assessment in the Philippines certifying bookkeepers. The assessment includes a 1-hour written exam and a 5-hour practical project.

Questions

30 scored questions

Time Limit

6 hours

Passing Score

75%

Exam Fee

₱540.00 (TESDA)

Bookkeeping NC III Exam Content Outline

25%

Journalize Transactions

Journalizing transactions for sole proprietorships and partnerships under periodic and perpetual systems

20%

Post Transactions

Posting entries to the general ledger and subsidiary ledgers, and maintaining control accounts

20%

Prepare Trial Balance

Preparing unadjusted and adjusted trial balances, and recording adjusting entries for accruals/deferrals

20%

Prepare Financial Reports

Preparing Income Statement, Balance Sheet, changes in equity, closing entries, and reversing entries

15%

Review Internal Control System

Reviewing internal control policies, petty cash controls, and preparing bank reconciliations

How to Pass the Bookkeeping NC III Exam

What You Need to Know

  • Passing score: 75%
  • Exam length: 30 questions
  • Time limit: 6 hours
  • Exam fee: ₱540.00

Keys to Passing

  • Complete 500+ practice questions
  • Score 80%+ consistently before scheduling
  • Focus on highest-weighted sections
  • Use our AI tutor for tough concepts

Bookkeeping NC III Study Tips from Top Performers

1Master the accounting cycle - you will be required to manually journalize, post to ledger, and prepare financial statements in the 5-hour practical exam.
2Understand the differences between periodic and perpetual inventory methods, as both are common in the assessment.
3Familiarize yourself with both the asset/liability and expense/revenue methods for recording deferrals.
4Practice bank reconciliation statements thoroughly, including adjusting entries for book and bank errors.
5Bring your own calculator, pencil, ruler, and scissors on the assessment day as phones are strictly prohibited.

Frequently Asked Questions

What is the format of the TESDA Bookkeeping NC III assessment?

The assessment is composed of two parts: a 1-hour written test containing 30 multiple-choice questions (10% weight) and a 5-hour work-related practical project (90% weight) where you must demonstrate the full accounting cycle from journalizing to financial statements and bank reconciliation.

What is the passing score for Bookkeeping NC III?

To achieve the National Certificate (NC III) in Bookkeeping, you must obtain an overall score of 75% or higher across both the written examination and the practical project assessment.

How much is the TESDA Bookkeeping NC III assessment fee?

The official standard assessment fee is PHP 540.00. However, some accredited assessment centers may add minimal facility or administrative fees, so it is recommended to confirm with your chosen center.

What happens if I fail the Bookkeeping NC III assessment?

If you do not pass, you can apply for reassessment after one month. Reassessment is only required for the specific tasks you did not achieve. However, if you fail twice consecutively, you must complete a refresher course before retaking it.

How long is the nominal duration of the Bookkeeping NC III training?

The standard nominal training duration is 292 hours. This is broken down into 20 hours of Basic Competencies, 24 hours of Common Competencies, and 248 hours of Core Competencies.