POST UTME ABU 2023 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 2023 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Supplies' and a credit balance of ₦20,000 in the account 'Office Equipment'. What is the correct journal entry to correct this error?
A. ₦15,000 debit to Office Supplies and ₦20,000 credit to Office Equipment
Correct B. ₦20,000 debit to Office Equipment and ₦15,000 credit to Office Supplies
C. ₦35,000 debit to Office Supplies and ₦20,000 credit to Office Equipment
D. ₦20,000 debit to Office Equipment and ₦35,000 credit to Office Supplies

Correct Answer: B

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Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. If the profit for the year is ₦20,000, what is the correct distribution of the profit?
A. ₦10,000 to A and ₦10,000 to B
Correct B. ₦12,500 to A and ₦7,500 to B
C. ₦15,000 to A and ₦5,000 to B
D. ₦18,750 to A and ₦1,250 to B

Correct Answer: B

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Question 3
A company uses a self-balancing ledger to record its transactions. The ledger shows a debit balance of ₦10,000 in the account 'Sales' and a credit balance of ₦15,000 in the account 'Purchases'. What is the correct journal entry to correct this error?
A. ₦10,000 debit to Sales and ₦15,000 credit to Purchases
Correct B. ₦15,000 debit to Purchases and ₦10,000 credit to Sales
C. ₦25,000 debit to Sales and ₦15,000 credit to Purchases
D. ₦15,000 debit to Purchases and ₦25,000 credit to Sales

Correct Answer: B

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Question 4
A company's trial balance shows a debit balance of ₦20,000 in the account 'Rent' and a credit balance of ₦15,000 in the account 'Salaries'. What is the correct journal entry to correct this error?
A. ₦20,000 debit to Rent and ₦15,000 credit to Salaries
Correct B. ₦15,000 debit to Salaries and ₦20,000 credit to Rent
C. ₦35,000 debit to Rent and ₦20,000 credit to Salaries
D. ₦20,000 debit to Salaries and ₦35,000 credit to Rent

Correct Answer: B

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Question 5
A company uses a control account to record its transactions. The control account shows a debit balance of ₦30,000 in the account 'Office Supplies' and a credit balance of ₦25,000 in the account 'Office Equipment'. What is the correct journal entry to correct this error?
A. ₦30,000 debit to Office Supplies and ₦25,000 credit to Office Equipment
Correct B. ₦25,000 debit to Office Equipment and ₦30,000 credit to Office Supplies
C. ₦55,000 debit to Office Supplies and ₦25,000 credit to Office Equipment
D. ₦25,000 debit to Office Equipment and ₦55,000 credit to Office Supplies

Correct Answer: B

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Question 6
A company has a capital of ₦500,000, divided equally among three partners, A, B, and C. The profit-sharing ratio is 2:3:4. If the company made a profit of ₦150,000, how much will each partner receive?
A. ₦30,000
B. ₦45,000
Correct C. ₦60,000
D. ₦75,000

Correct Answer: C

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Question 7
A trader purchases goods worth ₦120,000 and sells them at a profit of 25%. Calculate the selling price and the profit made.
Correct A. ₦150,000, ₦30,000
B. ₦144,000, ₦24,000
C. ₦160,000, ₦40,000
D. ₦168,000, ₦48,000

Correct Answer: A

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Question 8
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦100,000, and Common Stock ₦150,000. Prepare the company's balance sheet.
Correct A. ₦50,000, ₦200,000, ₦100,000, ₦150,000
B. ₦100,000, ₦200,000, ₦150,000, ₦50,000
C. ₦200,000, ₦100,000, ₦50,000, ₦150,000
D. ₦150,000, ₦100,000, ₦200,000, ₦50,000

Correct Answer: A

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Question 9
A company has the following transactions: Purchased goods for ₦80,000, Sold goods for ₦120,000, and Paid salaries of ₦20,000. Prepare the company's cash book.
Correct A. ₦80,000, ₦120,000, ₦20,000
B. ₦120,000, ₦80,000, ₦20,000
C. ₦80,000, ₦20,000, ₦120,000
D. ₦20,000, ₦80,000, ₦120,000

Correct Answer: A

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Question 10
A company's bank statement shows a balance of ₦50,000, while the company's cash book shows a balance of ₦60,000. What is the reason for the difference?
A. Bank error
B. Cash book error
Correct C. Deposits not recorded
D. Withdrawals not recorded

Correct Answer: C

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Question 11
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount of share capital and the amount of share premium.
A. ₦350,000
B. ₦350,000
C. ₦350,000
Correct D. ₦350,000

Correct Answer: D

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Question 12
A company has the following transactions: Purchased office equipment for ₦50,000, paid ₦20,000 cash, and the balance on account. Sold goods for ₦80,000, received ₦60,000 cash, and the balance on account. Prepare the ledger accounts for office equipment and sales.
A. ₦30,000
B. ₦30,000
C. ₦30,000
Correct D. ₦30,000

Correct Answer: D

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Question 13
A company has the following transactions: Purchased office equipment for ₦50,000, paid ₦20,000 cash, and the balance on account. Sold goods for ₦80,000, received ₦60,000 cash, and the balance on account. Prepare the journal entries for office equipment and sales.
A. ₦30,000
B. ₦30,000
C. ₦30,000
Correct D. ₦30,000

Correct Answer: D

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Question 14
A company has the following transactions: Purchased office equipment for ₦50,000, paid ₦20,000 cash, and the balance on account. Sold goods for ₦80,000, received ₦60,000 cash, and the balance on account. Prepare the trial balance for the company.
A. ₦30,000
B. ₦30,000
C. ₦30,000
Correct D. ₦30,000

Correct Answer: D

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Question 15
A company has the following transactions: Purchased office equipment for ₦50,000, paid ₦20,000 cash, and the balance on account. Sold goods for ₦80,000, received ₦60,000 cash, and the balance on account. Prepare the balance sheet for the company.
A. ₦30,000
B. ₦30,000
C. ₦30,000
Correct D. ₦30,000

Correct Answer: D

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Question 16
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the profit for the year is ₦750,000, calculate the amount of profit that will be shared by A.
Correct A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000

Correct Answer: A

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Question 17
A company uses the single entry system of accounting. The following transactions were recorded during the year:
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 18
A manufacturing company produces two products, X and Y. The production costs for each product are as follows:
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 19
A company prepares its final accounts for the year ended 31st December 2022. The trading account shows a profit of ₦500,000. The profit and loss account shows a profit of ₦750,000. Calculate the amount of dividend that will be paid to the shareholders.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 20
A company uses the double entry system of accounting. The following transactions were recorded during the year:
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

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Question 21
A company's cash book shows a credit balance of ₦15,000. However, the bank statement shows a debit balance of ₦10,000. What is the correct balance of the company's cash account?
A. ₦25,000
Correct B. ₦5,000
C. ₦10,000
D. ₦15,000

Correct Answer: B

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Question 22
A manufacturing company uses the process costing method. The company has two departments: Cutting and Assembly. The Cutting department has a production cost of ₦100,000 and the Assembly department has a production cost of ₦150,000. What is the total production cost of the company?
Correct A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 23
A company's trial balance shows a debit balance of ₦20,000 in the Accounts Payable account. However, the company's ledger shows a credit balance of ₦15,000 in the same account. What is the correct balance of the Accounts Payable account?
A. ₦20,000
Correct B. ₦15,000
C. ₦5,000
D. ₦10,000

Correct Answer: B

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Question 24
A company uses the single-entry system of accounting. The company's ledger shows a debit balance of ₦30,000 in the Cash account. However, the company's bank statement shows a credit balance of ₦25,000 in the same account. What is the correct balance of the Cash account?
A. ₦30,000
B. ₦25,000
Correct C. ₦5,000
D. ₦10,000

Correct Answer: C

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Question 25
A company's financial statements show a net income of ₦50,000. However, the company's cash flow statement shows a net cash outflow of ₦20,000. What is the correct net income of the company?
A. ₦50,000
Correct B. ₦30,000
C. ₦20,000
D. ₦10,000

Correct Answer: B

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