Practice Post UTME ABU accounting 2022 Past Questions

Question 1

A company uses the double-entry system of accounting. The trial balance for the year ended December 31, 2022, shows the following balances: Accounts Payable: ₦120,000, Sales Revenue: ₦500,000, Cost of Goods Sold: ₦300,000, and Common Stock: ₦200,000. What is the net income for the year?

Correct A. ₦200,000

B. ₦150,000

C. ₦100,000

D. ₦50,000

Correct Answer: A

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Question 2

A company has the following ledger accounts: Cash: ₦100,000, Accounts Receivable: ₦50,000, Inventory: ₦200,000, and Equipment: ₦150,000. What is the total amount of assets?

Correct A. ₦500,000

B. ₦600,000

C. ₦700,000

D. ₦800,000

Correct Answer: A

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Question 3

A company uses the self-balancing ledger system. The ledger shows the following balances: Sales Revenue: ₦500,000, Cost of Goods Sold: ₦300,000, and Common Stock: ₦200,000. What is the net income for the year?

Correct A. ₦200,000

B. ₦150,000

C. ₦100,000

D. ₦50,000

Correct Answer: A

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Question 4

A company has the following incomplete records: Cash: ₦100,000, Accounts Receivable: ₦50,000, Inventory: ₦200,000, and Equipment: ₦150,000. What is the total amount of assets?

Correct A. ₦500,000

B. ₦600,000

C. ₦700,000

D. ₦800,000

Correct Answer: A

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Question 5

A company uses the double-entry system of accounting. The trial balance for the year ended December 31, 2022, shows the following balances: Accounts Payable: ₦120,000, Sales Revenue: ₦500,000, Cost of Goods Sold: ₦300,000, and Common Stock: ₦200,000. What is the net income for the year?

Correct A. ₦200,000

B. ₦150,000

C. ₦100,000

D. ₦50,000

Correct Answer: A

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Question 6

A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 5 each. Prepare the journal entry to record the issue of these shares.

Correct A. Debit Cash 50,000, Credit Common Stock 40,000, Credit Paid-in Capital in Excess of Par Value 10,000

B. Debit Common Stock 40,000, Credit Paid-in Capital in Excess of Par Value 10,000, Credit Cash 50,000

C. Debit Common Stock 40,000, Credit Paid-in Capital in Excess of Par Value 10,000, Debit Cash 50,000

D. Debit Paid-in Capital in Excess of Par Value 10,000, Credit Common Stock 40,000, Credit Cash 50,000

Correct Answer: A

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Question 7

A company has the following ledger balances: Accounts Receivable 100,000, Accounts Payable 50,000, Common Stock 200,000, Retained Earnings 150,000. Prepare the balance sheet.

Correct A. Assets: 250,000, Liabilities: 50,000, Equity: 200,000

B. Assets: 250,000, Liabilities: 50,000, Equity: 200,000

C. Assets: 250,000, Liabilities: 50,000, Equity: 200,000

D. Assets: 250,000, Liabilities: 50,000, Equity: 200,000

Correct Answer: A

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Question 8

A company has the following transactions: Purchased office supplies for 1,000, Issued common stock for 10,000, Paid salaries 5,000. Prepare the journal entries for these transactions.

A. Debit Office Supplies 1,000, Credit Cash 1,000

B. Debit Cash 10,000, Credit Common Stock 10,000

C. Debit Salaries Expense 5,000, Credit Cash 5,000

Correct D. Debit Office Supplies 1,000, Credit Cash 1,000, Debit Salaries Expense 5,000, Credit Cash 5,000

Correct Answer: D

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Question 9

A company has the following financial statements: Income Statement, Balance Sheet. The company has net income of 50,000 and retained earnings of 100,000. What is the company's total equity?

Correct A. 150,000

B. 100,000

C. 50,000

D. 200,000

Correct Answer: A

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Question 10

A company has the following financial statements: Income Statement, Balance Sheet. The company has net income of 50,000 and retained earnings of 100,000. What is the company's total equity?

Correct A. 150,000

B. 100,000

C. 50,000

D. 200,000

Correct Answer: A

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Question 11

A company purchased a machine for ₦120,000. Depreciation is calculated using the straight-line method. If the machine is expected to last for 5 years, what is the annual depreciation charge?

Correct A. ₦24,000

B. ₦20,000

C. ₦18,000

D. ₦22,000

Correct Answer: A

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Question 12

A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. If the company received ₦50,000 in cash, what is the amount of share capital?

A. ₦50,000

Correct B. ₦55,000

C. ₦60,000

D. ₦65,000

Correct Answer: B

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Question 13

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 1,000 | | | 2 | Cash | | 500 | | 3 | Cash | | 1,500 | What is the balance of the cash account?

A. ₦2,500

B. ₦2,000

Correct C. ₦1,500

D. ₦1,000

Correct Answer: C

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Question 14

A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Bank | | 20,000 | | Sales | | 50,000 | | Purchases | 30,000 | | What is the total of the debit balances?

A. ₦40,000

B. ₦50,000

Correct C. ₦60,000

D. ₦70,000

Correct Answer: C

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Question 15

A company issued 5,000 debentures of ₦100 each at a discount of ₦5 per debenture. If the company received ₦400,000 in cash, what is the amount of debenture issue?

A. ₦450,000

B. ₦475,000

Correct C. ₦500,000

D. ₦525,000

Correct Answer: C

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Question 16

A company issued 5,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the amount of discount.

Correct A. ₦475,000

B. ₦480,000

C. ₦485,000

D. ₦490,000

Correct Answer: A

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Question 17

A company's cash book shows a balance of ₦120,000. The bank statement shows a balance of ₦150,000. The company's cash book also shows a debit balance of ₦30,000 in the bank column. What is the correct balance of the company's cash book after reconciliation?

A. ₦170,000

Correct B. ₦180,000

C. ₦190,000

D. ₦200,000

Correct Answer: B

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Question 18

A company's cash book shows a balance of ₦150,000. The bank statement shows a balance of ₦180,000. The company's cash book also shows a debit balance of ₦20,000 in the bank column. What is the correct balance of the company's cash book after reconciliation?

A. ₦170,000

Correct B. ₦180,000

C. ₦190,000

D. ₦200,000

Correct Answer: B

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Question 19

A company issued 10,000, 8% debentures of ₦50 each at a premium of 10%. Calculate the amount received from debenture holders and the amount of premium.

A. ₦500,000

Correct B. ₦510,000

C. ₦520,000

D. ₦530,000

Correct Answer: B

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Question 20

A company's cash book shows a balance of ₦180,000. The bank statement shows a balance of ₦200,000. The company's cash book also shows a debit balance of ₦30,000 in the bank column. What is the correct balance of the company's cash book after reconciliation?

A. ₦210,000

Correct B. ₦220,000

C. ₦230,000

D. ₦240,000

Correct Answer: B

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Question 21

A company's trading account shows a profit of ₦1,500,000. However, the profit is reduced by ₦300,000 due to depreciation. What is the net profit?

Correct A. ₦1,200,000

B. ₦1,500,000

C. ₦1,700,000

D. ₦2,000,000

Correct Answer: A

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Question 22

A company uses the self-balancing ledger system. The ledger shows a debit balance of ₦500,000 in the trading account. What is the corresponding credit balance in the capital account?

A. ₦300,000

B. ₦400,000

Correct C. ₦500,000

D. ₦600,000

Correct Answer: C

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Question 23

A company's balance sheet shows a current asset of ₦2,000,000 and a non-current asset of ₦3,000,000. What is the total asset value?

A. ₦5,000,000

B. ₦6,000,000

C. ₦7,000,000

Correct D. ₦8,000,000

Correct Answer: D

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Question 24

A company uses the straight-line method of depreciation. The asset's original cost is ₦10,000, and its residual value is ₦2,000. What is the annual depreciation?

A. ₦3,000

B. ₦4,000

Correct C. ₦5,000

D. ₦6,000

Correct Answer: C

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Question 25

A company's incomplete records show a debit balance of ₦1,000,000 in the trading account. What is the corresponding credit balance in the capital account?

A. ₦500,000

B. ₦600,000

Correct C. ₦700,000

D. ₦800,000

Correct Answer: C

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