POST UTME ABU 2017 Accounting | Objective

Are you preparing for POST UTME ABU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company has two departments, A and B. Department A has a balance of ₦50,000 and Department B has a balance of ₦30,000. The company's total assets are ₦150,000. What is the balance of Department C?
A. ₦50,000
B. ₦30,000
C. ₦70,000
Correct D. ₦20,000

Correct Answer: D

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Question 2
A partnership has three partners, A, B, and C. Partner A has a capital of ₦100,000, Partner B has a capital of ₦80,000, and Partner C has a capital of ₦60,000. The partnership's total capital is ₦300,000. What is the ratio of Partner A's capital to Partner B's capital?
A. 1:1
Correct B. 2:1
C. 3:2
D. 4:3

Correct Answer: B

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Question 3
A company has a trial balance as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales | ₦0 | ₦100,000 | | Cost of Goods Sold | ₦80,000 | ₦0 | | Net Income | ₦20,000 | ₦0 | What is the company's net income?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 4
A company has the following transactions: | Date | Account | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦50,000 | ₦0 | | 1-Jan | Accounts Payable | ₦0 | ₦30,000 | | 2-Jan | Sales | ₦0 | ₦100,000 | | 3-Jan | Cost of Goods Sold | ₦80,000 | ₦0 | | 4-Jan | Net Income | ₦20,000 | ₦0 | What is the company's net income?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 5
A company has the following financial statements: | Account | Balance Sheet | Income Statement | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales | ₦0 | ₦100,000 | | Cost of Goods Sold | ₦80,000 | ₦0 | | Net Income | ₦20,000 | ₦0 | What is the company's net income?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 6
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2016 is as follows: Debit: Cash ¡ 50,000 Accounts Payable ¡ 30,000 Equipment ¡ 100,000 Credit: Accounts Receivable ¡ 20,000 Common Stock ¡ 150,000 Total ¡ 350,000
A. ¡ 20,000
B. ¡ 30,000
Correct C. ¡ 50,000
D. ¡ 100,000

Correct Answer: C

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Question 7
A company purchases a machine for ¡ 80,000. The machine is expected to have a useful life of 5 years and a residual value of ¡ 10,000. Calculate the annual depreciation using the straight-line method.
A. ¡ 14,000
Correct B. ¡ 15,000
C. ¡ 16,000
D. ¡ 17,000

Correct Answer: B

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Question 8
A company has the following ledger accounts: Debit: Cash ¡ 50,000 Accounts Payable ¡ 30,000 Equipment ¡ 100,000 Credit: Accounts Receivable ¡ 20,000 Common Stock ¡ 150,000 Total ¡ 350,000
A. ¡ 20,000
B. ¡ 30,000
Correct C. ¡ 50,000
D. ¡ 100,000

Correct Answer: C

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Question 9
A company purchases a machine for ¡ 80,000. The machine is expected to have a useful life of 5 years and a residual value of ¡ 10,000. Calculate the annual depreciation using the straight-line method.
A. ¡ 14,000
Correct B. ¡ 15,000
C. ¡ 16,000
D. ¡ 17,000

Correct Answer: B

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Question 10
A company has the following ledger accounts: Debit: Cash ¡ 50,000 Accounts Payable ¡ 30,000 Equipment ¡ 100,000 Credit: Accounts Receivable ¡ 20,000 Common Stock ¡ 150,000 Total ¡ 350,000
A. ¡ 20,000
B. ¡ 30,000
Correct C. ¡ 50,000
D. ¡ 100,000

Correct Answer: C

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Question 11
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank overdraft of ₦30,000. What is the correct balance in the cash book?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 12
A business has the following transactions in its incomplete records: Sales: ₦100,000; Purchases: ₦80,000; Drawings: ₦20,000. What is the net profit?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 13
A public sector organization has the following transactions: Salaries: ₦500,000; Wages: ₦300,000; Rent: ₦200,000. What is the total expenditure?
A. ₦1,000,000
Correct B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: B

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Question 14
A company uses the double-entry system and has the following ledger accounts: Debit: ₦100,000; Credit: ₦150,000. What is the net effect?
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 15
A business has the following final accounts: Trading Profit: ₦50,000; Profit and Loss: ₦100,000; Balance Sheet: ₦200,000. What is the net worth?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 16
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference of ₦30,000 is due to a dishonored cheque of ₦20,000 and an outstanding deposit of ₦10,000. What is the correct balance in the cash book?
A. ₦130,000
B. ₦140,000
Correct C. ₦150,000
D. ₦160,000

Correct Answer: C

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Question 17
The following is a partial extract from the ledger of a partnership between A and B: Debit Balance: ₦50,000 A's Capital: ₦100,000 B's Capital: ₦80,000 What is the total value of the partnership?
A. ₦230,000
B. ₦240,000
Correct C. ₦250,000
D. ₦260,000

Correct Answer: C

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Question 18
A company uses the double entry system. The following transactions were recorded: 1. Purchased office equipment for ₦50,000. 2. Sold goods for ₦100,000. 3. Paid rent of ₦20,000. What is the total value of the assets?
A. ₦120,000
B. ₦130,000
C. ₦140,000
Correct D. ₦150,000

Correct Answer: D

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Question 19
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦500,000 Returns Outwards: ₦20,000 Returns Inwards: ₦10,000 Cost of Goods Sold: ₦300,000 What is the gross profit?
A. ₦180,000
B. ₦190,000
Correct C. ₦200,000
D. ₦210,000

Correct Answer: C

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Question 20
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦500,000 Liabilities: ₦200,000 Capital: ₦300,000 What is the net worth of the company?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 21
A partnership is formed between two individuals, A and B, with a capital of ₦100,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the profit for the year is ₦120,000, calculate the amount of profit that will be shared by A.
Correct A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 22
A company uses the cash book to record its transactions. The cash book shows a balance of ₦50,000 on December 31. The bank statement shows a balance of ₦60,000 on December 31. The company's accountant has prepared a bank reconciliation statement, which shows that the difference between the cash book balance and the bank statement balance is due to an outstanding cheque of ₦5,000. What is the correct balance of the company's cash account on December 31?
A. ₦55,000
Correct B. ₦60,000
C. ₦65,000
D. ₦70,000

Correct Answer: B

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Question 23
A company prepares its final accounts for the year ended December 31. The trading account shows a profit of ₦200,000. The profit and loss account shows a profit of ₦250,000. The balance sheet shows a total assets of ₦500,000 and total liabilities of ₦300,000. What is the company's net worth on December 31?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 24
A company prepares its trial balance on December 31. The trial balance shows a total debit balance of ₦400,000 and a total credit balance of ₦450,000. The company's accountant has identified an error in the trial balance, which has resulted in an overstatement of assets by ₦20,000. What is the correct total assets of the company on December 31?
A. ₦380,000
B. ₦400,000
Correct C. ₦420,000
D. ₦440,000

Correct Answer: C

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Question 25
A company uses the double entry system to record its transactions. The company's ledger shows a debit balance of ₦100,000 in the account 'Sales' and a credit balance of ₦80,000 in the account 'Purchases'. What is the company's net profit for the year?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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