POST UTME ABU 2018 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 2018 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 5,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 2,000 10% debentures of ₦100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 2
A partnership consisting of A, B, and C shared profits and losses in the ratio 5:3:2. The capital contributed by A, B, and C were ₦50,000, ₦30,000, and ₦20,000 respectively. Calculate the total profit of ₦150,000.
A. ₦75,000
B. ₦80,000
Correct C. ₦85,000
D. ₦90,000

Correct Answer: C

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Question 3
A company maintains its accounting records on a cash basis. The company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Sales | | 15,000 | | 3rd Jan | Purchases | 8,000 | | | 4th Jan | Cash | | 12,000 | Calculate the total profit for the month of January.
A. ₦7,000
Correct B. ₦12,000
C. ₦17,000
D. ₦22,000

Correct Answer: B

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Question 4
A government agency is required to prepare a statement of cash flows. The agency's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Sales | | 15,000 | | 3rd Jan | Purchases | 8,000 | | | 4th Jan | Cash | | 12,000 | Prepare the statement of cash flows for the month of January.
A. ₦7,000
Correct B. ₦12,000
C. ₦17,000
D. ₦22,000

Correct Answer: B

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Question 5
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Sales | | 15,000 | | Purchases | 8,000 | | | Cash | | 12,000 | Identify the error in the trial balance and correct it.
A. ₦7,000
Correct B. ₦12,000
C. ₦17,000
D. ₦22,000

Correct Answer: B

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Question 6
The following is a statement of financial position for a company at the end of the year. What is the amount of the company's current liabilities?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 7
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Cash | | 5,000 | | 3rd Jan | Cash | | 8,000 | What is the balance in the cash account?
Correct A. ₦3,000
B. ₦5,000
C. ₦8,000
D. ₦10,000

Correct Answer: A

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Question 8
A company has the following transactions in its bank reconciliation statement: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Bank | 10,000 | | | 2nd Jan | Bank | | 5,000 | | 3rd Jan | Bank | | 8,000 | What is the balance in the bank account?
Correct A. ₦3,000
B. ₦5,000
C. ₦8,000
D. ₦10,000

Correct Answer: A

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Question 9
A company has the following transactions in its ledger: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Cash | | 5,000 | | 3rd Jan | Cash | | 8,000 | What is the balance in the cash account?
Correct A. ₦3,000
B. ₦5,000
C. ₦8,000
D. ₦10,000

Correct Answer: A

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Question 10
A company has the following transactions in its ledger: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Bank | 10,000 | | | 2nd Jan | Bank | | 5,000 | | 3rd Jan | Bank | | 8,000 | What is the balance in the bank account?
Correct A. ₦3,000
B. ₦5,000
C. ₦8,000
D. ₦10,000

Correct Answer: A

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Question 11
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

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Question 12
A company's trial balance as at 31st December, 2022, showed the following balances: Cash ₦50,000, Bank ₦200,000, Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000. Prepare a statement of financial position as at 31st December, 2022.
A. ₦1,200,000
Correct B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: B

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Question 13
A company's cash book showed the following transactions: 1st January, 2022, Cash ₦50,000; 10th January, 2022, Bank ₦200,000; 20th January, 2022, Accounts Payable ₦150,000. Prepare a cash book as at 31st January, 2022.
A. ₦350,000
B. ₦450,000
Correct C. ₦550,000
D. ₦650,000

Correct Answer: C

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Question 14
A company issued 5,000, 10% shares of ₦10 each at a premium of ₦5. The shares are redeemable after 5 years. Calculate the amount of premium on the shares.
A. ₦25,000
B. ₦50,000
C. ₦75,000
Correct D. ₦100,000

Correct Answer: D

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Question 15
A company's bank reconciliation statement as at 31st December, 2022, showed the following balances: Bank ₦200,000, Cash ₦50,000. Prepare a bank reconciliation statement as at 31st December, 2022.
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 16
A company uses the double-entry system to record transactions. The following journal entry is made: Debit: Office Expenses, ₦10,000; Credit: Cash, ₦10,000. What is the effect of this transaction on the accounting equation?
A. Increases both assets and liabilities
B. Decreases both assets and liabilities
Correct C. Increases assets and decreases liabilities
D. Decreases assets and increases liabilities

Correct Answer: C

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Question 17
A company's trial balance shows the following balances: Accounts Payable, ₦50,000; Sales Revenue, ₦100,000. What is the correct classification of these accounts?
Correct A. Assets and Liabilities
B. Equity and Revenue
C. Expenses and Dividends
D. Assets and Expenses

Correct Answer: A

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Question 18
A company's balance sheet shows the following information: Total Assets, ₦200,000; Total Liabilities, ₦100,000. What is the company's net worth?
A. ₦100,000
B. ₦50,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 19
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦50,000 and its useful life is 5 years, what is the annual depreciation?
A. ₦10,000
Correct B. ₦5,000
C. ₦12,500
D. ₦20,000

Correct Answer: B

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Question 20
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦12,000
Correct D. ₦18,000

Correct Answer: D

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Question 21
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
Correct A. ₦475,000
B. ₦475,500
C. ₦480,000
D. ₦485,000

Correct Answer: A

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Question 22
A trader's trial balance as at 31st December, 2022, showed the following balances: Purchases ₦150,000, Sales ₦200,000, Returns Outwards ₦5,000, Returns Inwards ₦3,000, Discounts Allowed ₦2,000, Discounts Received ₦1,000, Wages ₦10,000, Salaries ₦8,000, Rent ₦5,000, and Depreciation ₦3,000. Prepare the trading and profit and loss account for the year.
Correct A. Trading Account: ₦45,000; Profit and Loss Account: ₦32,000
B. Trading Account: ₦40,000; Profit and Loss Account: ₦30,000
C. Trading Account: ₦50,000; Profit and Loss Account: ₦35,000
D. Trading Account: ₦55,000; Profit and Loss Account: ₦40,000

Correct Answer: A

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Question 23
A company's balance sheet as at 31st December, 2022, showed the following balances: Share Capital ₦100,000, Reserves ₦50,000, Debtors ₦30,000, Stock ₦20,000, Prepaid Rent ₦5,000, Accrued Expenses ₦3,000, and Bank Balance ₦10,000. Prepare the balance sheet for the year.
A. ₦200,000
Correct B. ₦220,000
C. ₦240,000
D. ₦260,000

Correct Answer: B

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Question 24
A public sector organization's cash book as at 31st December, 2022, showed the following balances: Cash in Hand ₦50,000, Bank Balance ₦30,000, Cash Received from Customers ₦20,000, Cash Paid to Suppliers ₦15,000, Cash Paid to Employees ₦10,000, and Cash Paid for Rent ₦5,000. Prepare the cash flow statement for the year.
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 25
A company's trial balance as at 31st December, 2022, showed the following balances: Purchases ₦150,000, Sales ₦200,000, Returns Outwards ₦5,000, Returns Inwards ₦3,000, Discounts Allowed ₦2,000, Discounts Received ₦1,000, Wages ₦10,000, Salaries ₦8,000, Rent ₦5,000, and Depreciation ₦3,000. Prepare the trading and profit and loss account for the year.
Correct A. Trading Account: ₦45,000; Profit and Loss Account: ₦32,000
B. Trading Account: ₦40,000; Profit and Loss Account: ₦30,000
C. Trading Account: ₦50,000; Profit and Loss Account: ₦35,000
D. Trading Account: ₦55,000; Profit and Loss Account: ₦40,000

Correct Answer: A

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