Practice Post UTME AAUA accounting 2017 Past Questions

Question 1

Determine the amount of depreciation on a machine with a cost of ₦120,000, a useful life of 5 years, and a residual value of ₦20,000. The machine is depreciated using the straight-line method.

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 2

A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.

A. ₦5,500

Correct B. ₦5,500.00

C. ₦5,500.00

D. ₦5,500.00

Correct Answer: B

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Question 3

A trader purchased goods on credit for ₦80,000. He sold the goods for ₦120,000 and incurred expenses of ₦10,000. Prepare the trading account.

Correct A. Trading Account: Debit: ₦80,000; Credit: ₦120,000; Expenses: ₦10,000

B. Trading Account: Debit: ₦80,000; Credit: ₦120,000; Expenses: ₦10,000

C. Trading Account: Debit: ₦80,000; Credit: ₦120,000; Expenses: ₦10,000

D. Trading Account: Debit: ₦80,000; Credit: ₦120,000; Expenses: ₦10,000

Correct Answer: A

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Question 4

A company issued 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.

A. ₦4,750

Correct B. ₦4,750.00

C. ₦4,750.00

D. ₦4,750.00

Correct Answer: B

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Question 5

A company's balance sheet as at 31st December, 2017 is as follows: ₦100,000; ₦50,000; ₦20,000. Prepare the balance sheet.

Correct A. ₦100,000; ₦50,000; ₦20,000

B. ₦100,000; ₦50,000; ₦20,000

C. ₦100,000; ₦50,000; ₦20,000

D. ₦100,000; ₦50,000; ₦20,000

Correct Answer: A

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Question 6

A company's cash book shows a debit balance of ₦15,000. However, the bank statement shows a credit balance of ₦20,000. What is the correct explanation for this discrepancy?

A. The company has an outstanding deposit with the bank.

Correct B. The company has an outstanding cheque in the bank.

C. The company has an error in its cash book.

D. The company has an error in its bank statement.

Correct Answer: B

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Question 7

A company's assets are valued at ₦100,000. However, the company's accountant estimates that the assets will depreciate by 10% each year. What is the value of the assets after 5 years?

Correct A. ₦61,610

B. ₦64,100

C. ₦66,690

D. ₦69,280

Correct Answer: A

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Question 8

A partnership has two partners, A and B. Partner A has a 60% share of the profits, while partner B has a 40% share. If the total profits are ₦120,000, how much will partner A receive?

Correct A. ₦72,000

B. ₦76,800

C. ₦80,640

D. ₦84,480

Correct Answer: A

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Question 9

A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?

A. ₦150,000

B. ₦175,000

Correct C. ₦200,000

D. ₦225,000

Correct Answer: C

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Question 10

A company issues 5% debentures of ₦100 each. If the company pays an annual interest of ₦5 per debenture, what is the total interest paid on the debentures?

A. ₦25

Correct B. ₦50

C. ₦100

D. ₦200

Correct Answer: B

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Question 11

A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C. The cost of inventory A is ₦150,000, and it has a weightage of 30%. The cost of inventory B is ₦200,000, and it has a weightage of 40%. The cost of inventory C is ₦100,000, and it has a weightage of 30%. What is the total cost of the inventory?

Correct A. ₦450,000

B. ₦550,000

C. ₦650,000

D. ₦750,000

Correct Answer: A

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Question 12

A company has the following transactions: Purchased 500 units of raw materials at ₦10 per unit, purchased 200 units of raw materials at ₦15 per unit, and sold 300 units of finished goods at ₦25 per unit. What is the total cost of goods sold?

A. ₦8,500

B. ₦9,500

Correct C. ₦10,500

D. ₦11,500

Correct Answer: C

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Question 13

A company has the following transactions: Purchased 500 units of raw materials at ₦10 per unit, purchased 200 units of raw materials at ₦15 per unit, and sold 300 units of finished goods at ₦25 per unit. What is the total revenue?

A. ₦7,500

B. ₦8,500

Correct C. ₦9,500

D. ₦10,500

Correct Answer: C

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Question 14

A company has the following transactions: Purchased 500 units of raw materials at ₦10 per unit, purchased 200 units of raw materials at ₦15 per unit, and sold 300 units of finished goods at ₦25 per unit. What is the total cost of goods available for sale?

A. ₦8,000

B. ₦9,000

Correct C. ₦10,000

D. ₦11,000

Correct Answer: C

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Question 15

A company has the following transactions: Purchased 500 units of raw materials at ₦10 per unit, purchased 200 units of raw materials at ₦15 per unit, and sold 300 units of finished goods at ₦25 per unit. What is the total profit?

A. ₦2,000

B. ₦3,000

Correct C. ₦4,000

D. ₦5,000

Correct Answer: C

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Question 16

A company has the following transactions: Purchased 500 units of raw materials at ₦10 per unit, purchased 200 units of raw materials at ₦15 per unit, and sold 300 units of finished goods at ₦25 per unit. What is the total expense?

A. ₦7,000

B. ₦8,000

Correct C. ₦9,000

D. ₦10,000

Correct Answer: C

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Question 17

A company has the following transactions: Purchased 500 units of raw materials at ₦10 per unit, purchased 200 units of raw materials at ₦15 per unit, and sold 300 units of finished goods at ₦25 per unit. What is the total asset?

A. ₦15,000

B. ₦16,000

Correct C. ₦17,000

D. ₦18,000

Correct Answer: C

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Question 18

A company has the following transactions: Purchased 500 units of raw materials at ₦10 per unit, purchased 200 units of raw materials at ₦15 per unit, and sold 300 units of finished goods at ₦25 per unit. What is the total liability?

A. ₦5,000

B. ₦6,000

Correct C. ₦7,000

D. ₦8,000

Correct Answer: C

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Question 19

A company uses the straight-line method of depreciation. The cost of a machine is ₦250,000 and its useful life is 5 years. Calculate the annual depreciation charge.

Correct A. ₦50,000

B. ₦40,000

C. ₦30,000

D. ₦20,000

Correct Answer: A

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Question 20

A company's cash book shows a balance of ₦150,000. The bank statement shows a balance of ₦120,000. The difference is due to an outstanding cheque of ₦15,000 and a deposit of ₦5,000. What is the correct balance in the cash book?

A. ₦140,000

Correct B. ₦145,000

C. ₦150,000

D. ₦155,000

Correct Answer: B

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Question 21

A company's trial balance shows the following balances: Debtors ₦50,000, Creditors ₦20,000, Capital ₦100,000, Profit and Loss Account ₦30,000. What is the total assets of the company?

A. ₦150,000

B. ₦180,000

Correct C. ₦200,000

D. ₦220,000

Correct Answer: C

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Question 22

A company's manufacturing account shows the following costs: Direct Materials ₦50,000, Direct Labour ₦30,000, Overheads ₦20,000. What is the total cost of production?

A. ₦100,000

Correct B. ₦120,000

C. ₦100,000

D. ₦140,000

Correct Answer: B

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Question 23

A company's departmental accounts show the following balances: Sales ₦100,000, Cost of Goods Sold ₦60,000, Gross Profit ₦40,000. What is the net profit?

A. ₦20,000

B. ₦30,000

C. ₦40,000

Correct D. ₦50,000

Correct Answer: D

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Question 24

A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance on the profit and loss account at the beginning of the year was ₦200,000. The company's retained earnings at the beginning of the year were ₦500,000. The company declared a dividend of ₦300,000 during the year. What is the company's retained earnings at the end of the year?

A. ₦1,700,000

B. ₦1,800,000

Correct C. ₦1,600,000

D. ₦1,900,000

Correct Answer: C

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Question 25

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 1st Jan | Bank | | 10,000 | | 15th Jan | Cash | | 5,000 | | 15th Jan | Bank | 5,000 | | | 20th Jan | Cash | | 8,000 | | 20th Jan | Bank | 8,000 | | What is the company's cash balance at the end of the month?

A. ₦13,000

Correct B. ₦15,000

C. ₦17,000

D. ₦19,000

Correct Answer: B

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