POST UTME ABU 2020 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
In a public sector accounting system, what is the primary purpose of the 'Ledger Account'?
Question 2
A company has the following trial balance: Accounts Receivable 10,000, Sales Revenue 100,000, and Cost of Goods Sold 50,000. What is the gross profit for the period?
Question 3
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₦2,000,000; Liabilities: ₦1,000,000; Capital: ₦1,000,000. Calculate the company's liquidity ratio.
Question 4
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. The partnership has a net income of 100,000. What is partner B's share of the net income?
Question 5
A company uses the single entry system of accounting. The following transactions were recorded in the journal:
1. Purchased office equipment for ₦ 120,000.
2. Sold goods for ₦ 150,000.
3. Purchased raw materials for ₦ 80,000.
4. Paid salaries of ₦ 30,000.
5. Collected cash from customers for ₦ 200,000.
6. Paid rent for ₦ 20,000.
7. Purchased factory equipment for ₦ 180,000.
8. Sold factory equipment for ₦ 120,000.
9. Purchased office supplies for ₦ 10,000.
10. Collected cash from customers for ₦ 50,000.
The journal entries were posted to the ledger. The ledger accounts are as follows:
Office Equipment: ₦ 120,000.
Raw Materials: ₦ 80,000.
Salaries: ₦ 30,000.
Cash: ₦ 350,000.
Rent: ₦ 20,000.
Factory Equipment: ₦ 180,000.
Office Supplies: ₦ 10,000.
What is the total amount of cash received from customers?
Question 6
A company uses the double-entry system of accounting. The journal entry for the purchase of equipment is as follows: Debit Equipment 10,000 and Credit Cash 10,000. What is the effect of this transaction on the accounting equation?
Question 7
A company issued 5,000 debentures of ₦100 each at a premium of ₦10 per debenture. Calculate the total amount received from the issue of debentures.
Question 8
A company's trial balance shows the following accounts: Sales 100,000, Cost of Goods Sold 60,000, Gross Profit 40,000. What is the gross profit percentage?
Question 9
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Purchases: ₦1,000,000; Returns outwards: ₦50,000; Returns inwards: ₦20,000. Calculate the gross profit for the year.
Question 10
A company has the following trial balance:
Debit:
Cash: ₦500,000
Accounts Receivable: ₦1,000,000
Inventory: ₦2,000,000
Total Debit: ₦3,500,000
Credit:
Accounts Payable: ₦1,500,000
Long-term Debt: ₦1,000,000
Total Credit: ₦2,500,000
What is the company's net income?
Question 11
Determine the amount of depreciation for the year ended 31st December 2020, on a machine purchased on 1st January 2018 for ₦150,000, with a residual value of ₦20,000, using the straight-line method, assuming a useful life of 5 years.
Question 12
A company has two departments, A and B, with the following production costs and sales revenue for the year:
Department A:
Cost of Goods Sold: ₦1,500,000
Selling and Administrative Expenses: ₦800,000
Total Revenue: ₦2,500,000
Department B:
Cost of Goods Sold: ₦1,200,000
Selling and Administrative Expenses: ₦600,000
Total Revenue: ₦2,000,000
What is the total profit for the year?
Question 13
A company produces two products, X and Y, using two machines, M1 and M2. The production process for X requires 2 hours on M1 and 3 hours on M2, while the production process for Y requires 3 hours on M1 and 2 hours on M2. If the company operates for 24 hours, how many units of X and Y should it produce to maximize profit, given that the profit per unit of X is ₦150 and the profit per unit of Y is ₦200?
Question 14
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 partnership's profit for the year ended 31st December 2020, is ₦500,000, how much will partner A receive as their share of the profit?
Question 15
A company has the following transactions:
1. Purchased raw materials for ₦ 100,000.
2. Sold goods for ₦ 150,000.
3. Purchased factory equipment for ₦ 180,000.
4. Paid salaries of ₦ 30,000.
5. Collected cash from customers for ₦ 200,000.
6. Paid rent for ₦ 20,000.
7. Purchased office supplies for ₦ 10,000.
8. Sold factory equipment for ₦ 120,000.
9. Purchased office equipment for ₦ 120,000.
10. Collected cash from customers for ₦ 50,000.
The journal entries were posted to the ledger. The ledger accounts are as follows:
Raw Materials: ₦ 100,000.
Factory Equipment: ₦ 180,000.
Salaries: ₦ 30,000.
Cash: ₦ 450,000.
Rent: ₦ 20,000.
Office Supplies: ₦ 10,000.
Office Equipment: ₦ 120,000.
What is the total amount of cash received from customers?
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