POST UTME ABU 2023 Accounting | Objective

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Question 1
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.
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
Question 2
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
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
Question 3
A company uses the straight-line method of depreciation. The cost of a machine is ₦120,000 and its useful life is 5 years. Calculate the annual depreciation charge.
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 4
A company's trial balance as at 31st December 2022 shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦80,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦200,000, Interest Expense ₦30,000, Interest Income ₦15,000, Net Income ₦150,000, Retained Earnings ₦250,000, Salaries Expense ₦120,000, Sales Revenue ₦600,000, Taxes Payable ₦25,000, and Utilities Expense ₦40,000. Prepare the company's income statement for the year ended 31st December 2022.
A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000
Question 5
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022 shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦80,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦200,000, Interest Expense ₦30,000, Interest Income ₦15,000, Net Income ₦150,000, Retained Earnings ₦250,000, Salaries Expense ₦120,000, Sales Revenue ₦600,000, Taxes Payable ₦25,000, and Utilities Expense ₦40,000. Prepare the company's balance sheet as at 31st December 2022.
A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000
Question 6
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.
A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000
Question 7
A company issued 1,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 500 debentures of ₦100 each at a discount of ₦5 per debenture. What is the total amount received from the issue of shares and debentures?
A. ₦15,500
B. ₦16,500
C. ₦17,500
D. ₦18,500
Question 8
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022 shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦80,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦200,000, Interest Expense ₦30,000, Interest Income ₦15,000, Net Income ₦150,000, Retained Earnings ₦250,000, Salaries Expense ₦120,000, Sales Revenue ₦600,000, Taxes Payable ₦25,000, and Utilities Expense ₦40,000. Prepare the company's statement of cash flows for the year ended 31st December 2022.
A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000
Question 9
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
C. ₦5,000
D. ₦10,000
Question 10
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
B. ₦5,000
C. ₦10,000
D. ₦15,000
Question 11
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Bank | | 8,000 | | 3rd Jan | Cash | | 12,000 | What is the balance in the cash account?
A. ₦2,000
B. ₦12,000
C. ₦10,000
D. ₦8,000
Question 12
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct treatment of this error?
A. Debit the 'Rent Received' account and credit the 'Rent Paid' account.
B. Credit the 'Rent Received' account and debit the 'Rent Paid' account.
C. Debit the 'Rent Received' account and credit the 'Cash' account.
D. Credit the 'Rent Received' account and debit the 'Accrued Expenses' account.
Question 13
A partnership is formed between two individuals, John and Mary. John contributes ₦500,000 in cash and a building worth ₦300,000, while Mary contributes ₦200,000 in cash and a machine worth ₦150,000. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. Calculate the amount of profit to be shared by John.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 14
A company uses the single entry system of accounting. The following transactions were recorded during the year:
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 15
A company uses the perpetual inventory system. The cost of goods sold is ₦150,000 and the net realizable value of closing inventory is ₦30,000. Calculate the cost of goods sold using the periodic inventory system.
A. ₦180,000
B. ₦160,000
C. ₦140,000
D. ₦120,000

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