POST UTME ACHIEVERS UNIVERSITY 2019 Accounting | Objective

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Question 1
A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received'. What is the correct journal entry to correct this error?
A. ₦1,500 debit to Rent Received and ₦1,500 credit to Cash
Correct B. ₦1,500 debit to Cash and ₦1,500 credit to Rent Received
C. ₦1,500 debit to Rent Received and ₦1,500 credit to Rent Paid
D. ₦1,500 debit to Rent Paid and ₦1,500 credit to Rent Received

Correct Answer: B

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Question 2
A public sector organization has the following transactions for the month of January: ₦10,000 cash received from customers ₦5,000 cash paid to suppliers ₦3,000 cash paid to employees ₦2,000 cash received from government grant What is the total cash received by the organization for the month of January?
Correct A. ₦12,000
B. ₦15,000
C. ₦17,000
D. ₦20,000

Correct Answer: A

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Question 3
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: ₦10,000 cash received from customers ₦5,000 cash paid to suppliers ₦3,000 cash paid to employees What is the total debit balance in the journal for the month of January?
Correct A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦25,000

Correct Answer: A

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Question 4
A manufacturing company produces 1,000 units of a product. The cost of production is ₦10 per unit. The selling price is ₦20 per unit. What is the profit made by the company?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 5
A company has the following ledger balances: ₦10,000 debit in the account 'Rent Received' ₦5,000 credit in the account 'Rent Paid' What is the correct journal entry to correct the error?
A. ₦10,000 debit to Rent Received and ₦10,000 credit to Cash
Correct B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
D. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

Correct Answer: B

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Question 6
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. What is the correct treatment of this account in the preparation of the company's final accounts?
Correct A. Debit side of the Profit and Loss Account
B. Credit side of the Profit and Loss Account
C. Debit side of the Balance Sheet
D. Credit side of the Balance Sheet

Correct Answer: A

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Question 7
A public sector organization has the following transactions during the year: ₦10,000 received from the government for a grant ₦20,000 received from the government for a loan ₦15,000 paid to an employee as salary ₦5,000 paid to a supplier for goods purchased What is the correct journal entry to record the above transactions?
Correct A. ₦10,000 Debit: Grant Received ₦20,000 Credit: Loan Received ₦15,000 Debit: Salary Expense ₦5,000 Credit: Purchase of Goods
B. ₦10,000 Credit: Grant Received ₦20,000 Debit: Loan Received ₦15,000 Credit: Salary Expense ₦5,000 Debit: Purchase of Goods
C. ₦10,000 Credit: Grant Received ₦20,000 Debit: Loan Received ₦15,000 Debit: Salary Expense ₦5,000 Credit: Purchase of Goods
D. ₦10,000 Debit: Grant Received ₦20,000 Credit: Loan Received ₦15,000 Credit: Salary Expense ₦5,000 Debit: Purchase of Goods

Correct Answer: A

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Question 8
A company's cash book shows the following transactions: ₦5,000 received from a customer ₦3,000 paid to a supplier ₦2,000 received from a bank ₦1,500 paid to an employee What is the correct bank reconciliation statement?
A. ₦5,000 Debit: Cash ₦3,000 Credit: Bank ₦2,000 Debit: Bank ₦1,500 Credit: Salary Expense
B. ₦5,000 Credit: Cash ₦3,000 Debit: Bank ₦2,000 Credit: Bank ₦1,500 Debit: Salary Expense
Correct C. ₦5,000 Debit: Cash ₦3,000 Credit: Bank ₦2,000 Debit: Bank ₦1,500 Credit: Salary Expense
D. ₦5,000 Credit: Cash ₦3,000 Debit: Bank ₦2,000 Credit: Bank ₦1,500 Debit: Salary Expense

Correct Answer: C

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Question 9
A company's trial balance shows the following balances: ₦10,000 debit in the account 'Rent Paid' ₦15,000 credit in the account 'Rent Received' What is the correct treatment of these accounts in the preparation of the company's final accounts?
Correct A. Debit side of the Profit and Loss Account
B. Credit side of the Profit and Loss Account
C. Debit side of the Balance Sheet
D. Credit side of the Balance Sheet

Correct Answer: A

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Question 10
A company's cash book shows the following transactions: ₦5,000 received from a customer ₦3,000 paid to a supplier What is the correct bank reconciliation statement?
Correct A. ₦5,000 Debit: Cash ₦3,000 Credit: Bank
B. ₦5,000 Credit: Cash ₦3,000 Debit: Bank
C. ₦5,000 Debit: Cash ₦3,000 Credit: Bank
D. ₦5,000 Credit: Cash ₦3,000 Debit: Bank

Correct Answer: A

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Question 11
Determine the amount of depreciation for a machine that cost ₦250,000 and has a useful life of 5 years, with a residual value of ₦50,000. The machine is depreciated using the straight-line method.
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 12
A partnership has two partners, A and B, with capital contributions of ₦200,000 and ₦300,000 respectively. The profit-sharing ratio is 2:3. If the net profit for the year is ₦150,000, what is the amount of profit to be distributed to partner A?
A. ₦30,000
Correct B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: B

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Question 13
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦120,000, while the general ledger shows a balance of ₦150,000. The bank statement shows a balance of ₦180,000. What is the amount of the bank reconciliation difference?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 14
A government agency has a budget of ₦500,000 for a project. The agency has already spent ₦200,000 and has a remaining balance of ₦300,000. If the agency receives an additional grant of ₦100,000, what is the new total budget for the project?
A. ₦600,000
Correct B. ₦700,000
C. ₦800,000
D. ₦900,000

Correct Answer: B

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Question 15
A company has a trial balance that shows a debit balance of ₦150,000 for an account called 'Office Supplies'. The company's accounting policy requires that office supplies be expensed immediately. What is the correct journal entry to record the expense?
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 16
A company's trial balance shows an error of ₦1,500 in the debit side of the account 'Rent Received'. The correct amount of rent received during the year is ₦15,000. What is the correct balance in the 'Rent Received' account?
Correct A. ₦13,500
B. ₦15,500
C. ₦17,500
D. ₦19,500

Correct Answer: A

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Question 17
A company uses the straight-line method of depreciation. The cost of a machine is ₦120,000 and its useful life is 5 years. What is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 18
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to a bank overdraft of ₦10,000. What is the correct balance in the cash book?
A. ₦60,000
Correct B. ₦50,000
C. ₦40,000
D. ₦30,000

Correct Answer: B

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Question 19
A company produces 10,000 units of a product. The cost of production is ₦50 per unit. The selling price is ₦75 per unit. What is the profit per unit?
A. ₦25
Correct B. ₦30
C. ₦35
D. ₦40

Correct Answer: B

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Question 20
A government agency has a budget of ₦1,000,000 for a project. The project requires a loan of ₦500,000. What is the percentage of the budget allocated to the loan?
Correct A. 50%
B. 40%
C. 30%
D. 20%

Correct Answer: A

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Question 21
A company issues 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 22
A firm has a cash book balance of ₦200,000 and a bank statement balance of ₦250,000. The bank statement shows a credit balance of ₦10,000 for a dishonored cheque. What is the correct balance in the cash book?
A. ₦190,000
B. ₦200,000
Correct C. ₦210,000
D. ₦220,000

Correct Answer: C

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Question 23
A company's assets are valued at ₦1,500,000. Depreciation is provided at 10% per annum on the cost of the assets. Calculate the amount of depreciation for the year.
Correct A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000

Correct Answer: A

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Question 24
A firm has a control account balance of ₦500,000 and a ledger account balance of ₦600,000. What is the correct balance in the control account?
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 25
A company issues 10,000, 5% shares of ₦10 each at a premium of ₦2. Calculate the amount received from the shareholders.
A. ₦100,000
Correct B. ₦110,000
C. ₦120,000
D. ₦130,000

Correct Answer: B

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