POST UTME ACHIEVERS UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000 debentures of ₦1,000 each at a premium of ₦50 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦5,000,000
B. ₦5,250,000
C. ₦5,500,000
D. ₦5,750,000
Question 2
A company has the following transactions for the month of January: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st | Cash received from customers | | 1,000,000 | | 15th | Salaries paid | 500,000 | | | 20th | Rent paid | 200,000 | | | 25th | Utilities paid | 100,000 | | What is the total amount of cash paid for salaries and rent?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 3
A company issued 10,000 shares of 1 par value at a premium of 3 per share. If the company received a total of 35,000 from the sale of these shares, what is the total amount of paid-in capital?
A. ₦35,000
B. ₦32,000
C. ₦30,000
D. ₦28,000
Question 4
A company's balance sheet shows the following: ₦10,000 cash; ₦0,000 accounts receivable; ₦0,000 accounts payable. Prepare the balance sheet.
A. Balance Sheet: ₦10,000 cash; ₦0,000 accounts receivable; ₦0,000 accounts payable
B. Balance Sheet: ₦10,000 cash; ₦0,000 accounts payable; ₦0,000 accounts receivable
C. Balance Sheet: ₦10,000 cash; ₦0,000 accounts receivable; ₦0,000 accounts payable
D. Balance Sheet: ₦10,000 cash; ₦0,000 accounts payable; ₦0,000 accounts receivable
Question 5
A company uses the single-entry system of accounting. The journal entries for the month of January are as follows: Debit Cash: ₦10,000, Credit Accounts Payable: ₦5,000, Debit Sales Revenue: ₦20,000, Credit Cost of Goods Sold: ₦15,000. What is the net income of the company?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 6
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 5% debentures of ₦10,000 at 5% discount. Prepare the share capital account and debenture account.
A. Share Capital Account: ₦1,000,000; Debenture Account: ₦10,000
B. Share Capital Account: ₦1,050,000; Debenture Account: ₦09,500
C. Share Capital Account: ₦1,000,000; Debenture Account: ₦10,000
D. Share Capital Account: ₦1,050,000; Debenture Account: ₦09,500
Question 7
A public sector organization uses the accrual basis of accounting. The organization's financial statements for the year ended December 31, 2022, show the following balances: Revenue ₦100,000,000, Expenses ₦80,000,000, and Net Assets ₦20,000,000. What is the correct accounting treatment for the organization's revenue and expenses?
A. Revenue is recognized when earned, and expenses are matched with revenues
B. Revenue is recognized when received, and expenses are matched with revenues
C. Revenue is recognized when earned, and expenses are matched with revenues and expenses
D. Revenue is recognized when received, and expenses are matched with revenues and expenses
Question 8
A company's ledger account for the year ended 31st December 2022 is as follows: Debit: Purchases £ 120,000 Credit: Sales £ 150,000 Determine the amount of profit or loss for the year.
A. £ 30,000
B. £ 40,000
C. £ 50,000
D. £ 60,000
Question 9
The following is a balance sheet for XYZ Ltd. as at 31st December 2021.
A. ₦1,500,000
B. ₦2,000,000
C. ₦1,000,000
D. ₦500,000
Question 10
A company issued 10,000 ordinary shares of ₦5 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 11
The following trial balance was extracted from the books of XYZ Ltd. at 31st December 2022.
A. | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | 0 | | Bank | 0 | 5,000 | | Sales | 0 | 20,000 | | Purchases | 15,000 | 0 | | Capital | 0 | 25,000 | | Drawings | 5,000 | 0 | | Profit | 0 | 5,000 | | --- | --- | --- | | Total | 20,000 | 20,000 |
B. | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | 0 | | Bank | 0 | 5,000 | | Sales | 20,000 | 0 | | Purchases | 0 | 15,000 | | Capital | 25,000 | 0 | | Drawings | 0 | 5,000 | | Profit | 5,000 | 0 | | --- | --- | --- | | Total | 20,000 | 20,000 |
C. | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | 0 | | Bank | 0 | 5,000 | | Sales | 20,000 | 0 | | Purchases | 15,000 | 0 | | Capital | 25,000 | 0 | | Drawings | 5,000 | 0 | | Profit | 0 | 5,000 | | --- | --- | --- | | Total | 20,000 | 20,000 |
D. | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | 0 | | Bank | 0 | 5,000 | | Sales | 0 | 20,000 | | Purchases | 15,000 | 0 | | Capital | 0 | 25,000 | | Drawings | 5,000 | 0 | | Profit | 5,000 | 0 | | --- | --- | --- | | Total | 20,000 | 20,000 |
Question 12
A company's profit and loss account shows the following: ₦10,000 revenue; ₦0,000 expense. Prepare the profit and loss account.
A. Profit and Loss Account: ₦10,000 revenue; ₦0,000 expense
B. Profit and Loss Account: ₦10,000 revenue; ₦0,000 expense
C. Profit and Loss Account: ₦10,000 revenue; ₦0,000 expense
D. Profit and Loss Account: ₦10,000 revenue; ₦0,000 expense
Question 13
The following are the balance sheet of XYZ Ltd. at 31st December 2022.
A. | Asset | ₦ | Liability | ₦ | Capital | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 5,000 | Share Capital | 25,000 | | Bank | 5,000 | Debentures | 10,000 | Profit | 5,000 | | Stock | 15,000 | Creditors | 5,000 | Drawings | 5,000 | | --- | --- | --- | --- | --- | --- | | Total | 30,000 | Total | 20,000 | Total | 35,000 |
B. | Asset | ₦ | Liability | ₦ | Capital | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 10,000 | Share Capital | 25,000 | | Bank | 5,000 | Debentures | 5,000 | Profit | 5,000 | | Stock | 15,000 | Creditors | 5,000 | Drawings | 5,000 | | --- | --- | --- | --- | --- | --- | | Total | 30,000 | Total | 20,000 | Total | 35,000 |
C. | Asset | ₦ | Liability | ₦ | Capital | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 5,000 | Share Capital | 25,000 | | Bank | 5,000 | Debentures | 10,000 | Profit | 5,000 | | Stock | 15,000 | Creditors | 5,000 | Drawings | 5,000 | | --- | --- | --- | --- | --- | --- | | Total | 30,000 | Total | 20,000 | Total | 35,000 |
D. | Asset | ₦ | Liability | ₦ | Capital | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 10,000 | Share Capital | 25,000 | | Bank | 5,000 | Debentures | 5,000 | Profit | 5,000 | | Stock | 15,000 | Creditors | 5,000 | Drawings | 5,000 | | --- | --- | --- | --- | --- | --- | | Total | 30,000 | Total | 20,000 | Total | 35,000 |
Question 14
A company's control account for the year ended 31st December 2022 is as follows: Debit: Purchases £ 120,000 Credit: Sales £ 150,000 Determine the amount of profit or loss for the year.
A. £ 30,000
B. £ 40,000
C. £ 50,000
D. £ 60,000
Question 15
A company uses the double-entry system of accounting. The trial balance shows the following balances: Accounts Payable: ₦120,000, Sales Revenue: ₦150,000, Cost of Goods Sold: ₦80,000, and Common Stock: ₦100,000. What is the net income of the company?
A. ₦70,000
B. ₦30,000
C. ₦50,000
D. ₦20,000

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