Free Practice Questions for Bookkeeping NC III

Exam-style questions and explanations by OpenExamPrep.

✓ No registration✓ No credit card

118+ Questions

100% Free

Loading practice questions...

Exam Review

Key Facts: Bookkeeping NC III Exam

Not published

Numeric Passing Score

TESDA Training Regulations

Project type

Assessment Method

Written examination and work-related project

Center-confirmed

Assessment Fee

Accredited assessment center

292 hours

Training Duration

Standard program length

5 years

Certificate Validity

TESDA NC III

1 month

Retake Wait Time

For failed attempts

TESDA Bookkeeping NC III assesses journalizing, ledger posting, trial-balance preparation, financial reporting, and internal-control review through a project-type assessment with written and work-related components. The current public rules do not publish fixed question, duration, weight, or cut-score figures.

Sample Bookkeeping NC III Practice Questions

Try these sample questions to review concepts for the Bookkeeping NC III exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 118+ 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

Philippine national competency assessment for Bookkeeping NC III. The current TESDA Training Regulations use a project-type assessment supported by a written examination and work-related project, without publishing a fixed question count, duration, percentage split, or numeric cut score.

Exam sponsor: TESDA. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

Question count not published by the exam provider

Time Limit

Not published

Passing Score

Not published

Exam / Certification Fees

Confirm the current amount with the accredited assessment center

Exam sponsor website

Reported exam pass rate: Not publicly published by TESDA. TESDA does not publish a current national pass-rate figure for this qualification Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

No official weight published

Journalize Transactions

Journalizing business transactions using the source documents, books, and procedures required by the competency standard

No official weight published

Post Transactions

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

No official weight published

Prepare Trial Balance

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

No official weight published

Prepare Financial Reports

Preparing the required financial reports from adjusted accounting records

No official weight published

Review Internal Control System

Reviewing an entity's internal-control system and documenting findings under the competency standard

Preparing for the Bookkeeping NC III Exam

What You Need to Know

Passing score: Not published
Assessment: Question count not published by the exam provider
Time limit: Not published
Exam / certification fees: Confirm the current amount with the accredited assessment center Official sources

Using Our Practice Resources

Work through all 118 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

Bookkeeping NC III: Suggested Study Strategy

1Master the full accounting cycle so you can journalize, post to ledgers, prepare a trial balance, and produce financial reports in an integrated work-related project.

2Use inventory and adjusting-entry exercises as supporting bookkeeping practice, while keeping the official competency outcomes as the scope anchor.

3Familiarize yourself with both the asset/liability and expense/revenue methods for recording deferrals.

4Use reconciliation exercises to practise internal-control reasoning without treating them as a separately named official assessment domain.

5Confirm permitted supplies with your assessment center; the public self-assessment guide identifies a calculator and scissors and prohibits mobile phones.

Frequently Asked Questions

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

TESDA's current Training Regulations specify a project-type assessment using a written examination and a work-related project. They do not publish a universal item count, duration, or 10%/90% split. Confirm logistics with the accredited assessment center.

What is the passing score for Bookkeeping NC III?

TESDA's current public Training Regulations do not publish a universal numeric cut score. Candidates must demonstrate the required competencies under the assessment arrangements used by the accredited center.

How much is the TESDA Bookkeeping NC III assessment fee?

The current public Training Regulations and Self-Assessment Guide do not publish a fixed nationwide assessment fee. Confirm the live amount and included charges with the selected accredited assessment 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.