POST UTME ACHIEVERS UNIVERSITY 2023 Accounting | Objective

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Question 1
A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 2,000. Prepare the journal entry for the issue of shares.
Correct A. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Credit Issue Expenses £ 2,000
B. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500
C. Debit Share Capital £ 5,000, Credit Issue Expenses £ 2,000
D. Debit Share Premium £ 2,500, Credit Issue Expenses £ 2,000

Correct Answer: A

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Question 2
A company's trial balance showed the following balances: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Sales Revenue £ 20,000, Cost of Goods Sold £ 15,000. Prepare the income statement.
Correct A. Sales Revenue £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
B. Sales Revenue £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
C. Sales Revenue £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
D. Sales Revenue £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000

Correct Answer: A

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Question 3
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 2,000. Prepare the journal entry for the issue of shares.
Correct A. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 2,000
B. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000
C. Debit Share Capital £ 10,000, Credit Issue Expenses £ 2,000
D. Debit Share Premium £ 5,000, Credit Issue Expenses £ 2,000

Correct Answer: A

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Question 4
A company's trial balance showed the following balances: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Sales Revenue £ 20,000, Cost of Goods Sold £ 15,000. Prepare the income statement.
Correct A. Sales Revenue £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
B. Sales Revenue £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
C. Sales Revenue £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
D. Sales Revenue £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000

Correct Answer: A

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Question 5
A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 2,000. Prepare the journal entry for the issue of shares.
Correct A. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Credit Issue Expenses £ 2,000
B. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500
C. Debit Share Capital £ 5,000, Credit Issue Expenses £ 2,000
D. Debit Share Premium £ 2,500, Credit Issue Expenses £ 2,000

Correct Answer: A

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Question 6
A company uses the perpetual inventory system. On January 1, 2023, it had 500 units of a product in stock, costing ₦120 each. During the year, 300 units were sold, and 200 units were purchased at ₦130 each. Calculate the cost of goods sold for the year.
A. ₦36,000
Correct B. ₦38,000
C. ₦40,000
D. ₦42,000

Correct Answer: B

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Question 7
A company's trial balance as of December 31, 2022, is as follows: Accounts Receivable ₦50,000, Accounts Payable ₦30,000, Common Stock ₦100,000, Retained Earnings ₦50,000. What is the total amount of assets?
Correct A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000

Correct Answer: A

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Question 8
A company uses the straight-line method of depreciation. A machine was purchased on January 1, 2022, for ₦200,000 and has a useful life of 5 years. What is the annual depreciation expense?
Correct A. ₦40,000
B. ₦42,000
C. ₦44,000
D. ₦46,000

Correct Answer: A

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Question 9
A company's control account for Accounts Payable is ₦50,000. The subsidiary ledger shows the following transactions: January 1, 2023, ₦30,000; January 15, 2023, ₦20,000; February 1, 2023, ₦10,000. What is the balance in the control account?
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 10
A government agency has the following transactions: January 1, 2023, received ₦100,000 in cash; January 15, 2023, spent ₦50,000 on office supplies; February 1, 2023, received ₦20,000 in cash. What is the total amount of assets?
A. ₦70,000
B. ₦80,000
C. ₦90,000
Correct D. ₦100,000

Correct Answer: D

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Question 11
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5,000 ₦ 100 debentures. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 120,000
Correct B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000

Correct Answer: B

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Question 12
A business has an incomplete record of its transactions. The following information is available: | Date | Debit | Credit | | --- | --- | --- | | 1 Jan | ₦ 1,000 | | | 15 Jan | | ₦ 500 | | 20 Jan | ₦ 800 | | | 25 Jan | | ₦ 1,200 | Determine the missing amounts.
A. ₦ 1,500
B. ₦ 1,800
Correct C. ₦ 2,000
D. ₦ 2,200

Correct Answer: C

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Question 13
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦ 1,000 | | | 15 Jan | Bank | | ₦ 500 | | 20 Jan | Cash | ₦ 800 | | | 25 Jan | Bank | | ₦ 1,200 | Prepare the bank reconciliation statement.
A. ₦ 1,500
B. ₦ 1,800
Correct C. ₦ 2,000
D. ₦ 2,200

Correct Answer: C

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Question 14
A public sector organization has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦ 1,000 | | | 15 Jan | Bank | | ₦ 500 | | 20 Jan | Cash | ₦ 800 | | | 25 Jan | Bank | | ₦ 1,200 | Prepare the cash flow statement.
A. ₦ 1,500
B. ₦ 1,800
Correct C. ₦ 2,000
D. ₦ 2,200

Correct Answer: C

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Question 15
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦ 1,000 | | | 15 Jan | Bank | | ₦ 500 | | 20 Jan | Cash | ₦ 800 | | | 25 Jan | Bank | | ₦ 1,200 | Prepare the bank reconciliation statement.
A. ₦ 1,500
B. ₦ 1,800
Correct C. ₦ 2,000
D. ₦ 2,200

Correct Answer: C

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Question 16
A company issues 10,000, 10% preference shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of these shares.
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 17
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare a balance sheet for the company.
Correct A. {\begin{tabular}{|l|l|} Accounts Payable & ₦50,000 \\ Sales Revenue & ₦200,000 \\ Cost of Goods Sold & ₦150,000 \\ Common Stock & ₦100,000 \\ \end{tabular}}
B. {\begin{tabular}{|l|l|} Accounts Payable & ₦50,000 \\ Sales Revenue & ₦200,000 \\ Cost of Goods Sold & ₦150,000 \\ Common Stock & ₦100,000 \\ \end{tabular}}
C. {\begin{tabular}{|l|l|} Accounts Payable & ₦50,000 \\ Sales Revenue & ₦200,000 \\ Cost of Goods Sold & ₦150,000 \\ Common Stock & ₦100,000 \\ \end{tabular}}
D. {\begin{tabular}{|l|l|} Accounts Payable & ₦50,000 \\ Sales Revenue & ₦200,000 \\ Cost of Goods Sold & ₦150,000 \\ Common Stock & ₦100,000 \\ \end{tabular}}

Correct Answer: A

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Question 18
A company has the following ledger accounts: Cash ₦50,000, Accounts Payable ₦20,000, Sales Revenue ₦100,000, and Cost of Goods Sold ₦80,000. Prepare a trial balance for the company.
Correct A. {\begin{tabular}{|l|l|} Cash & ₦50,000 \\ Accounts Payable & ₦20,000 \\ Sales Revenue & ₦100,000 \\ Cost of Goods Sold & ₦80,000 \\ \end{tabular}}
B. {\begin{tabular}{|l|l|} Cash & ₦50,000 \\ Accounts Payable & ₦20,000 \\ Sales Revenue & ₦100,000 \\ Cost of Goods Sold & ₦80,000 \\ \end{tabular}}
C. {\begin{tabular}{|l|l|} Cash & ₦50,000 \\ Accounts Payable & ₦20,000 \\ Sales Revenue & ₦100,000 \\ Cost of Goods Sold & ₦80,000 \\ \end{tabular}}
D. {\begin{tabular}{|l|l|} Cash & ₦50,000 \\ Accounts Payable & ₦20,000 \\ Sales Revenue & ₦100,000 \\ Cost of Goods Sold & ₦80,000 \\ \end{tabular}}

Correct Answer: A

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Question 19
A company has the following transactions: Purchased office supplies for ₦10,000, Sold goods for ₦50,000, and Paid salaries ₦20,000. Prepare a journal entry for the company.
Correct A. {\begin{tabular}{|l|l|} Office Supplies & ₦10,000 \\ Sales Revenue & ₦50,000 \\ Salaries Expense & ₦20,000 \\ \end{tabular}}
B. {\begin{tabular}{|l|l|} Office Supplies & ₦10,000 \\ Sales Revenue & ₦50,000 \\ Salaries Expense & ₦20,000 \\ \end{tabular}}
C. {\begin{tabular}{|l|l|} Office Supplies & ₦10,000 \\ Sales Revenue & ₦50,000 \\ Salaries Expense & ₦20,000 \\ \end{tabular}}
D. {\begin{tabular}{|l|l|} Office Supplies & ₦10,000 \\ Sales Revenue & ₦50,000 \\ Salaries Expense & ₦20,000 \\ \end{tabular}}

Correct Answer: A

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Question 20
A company has the following ledger accounts: Cash ₦50,000, Accounts Payable ₦20,000, Sales Revenue ₦100,000, and Cost of Goods Sold ₦80,000. Prepare a balance sheet for the company.
A. {\begin{tabular}{|l|l|} Cash & ₦50,000 \\ Accounts Payable & ₦20,000 \\ Sales Revenue & ₦100,000 \\ Cost of Goods Sold & ₦80,000 \\ \end{tabular}}
B. {\begin{tabular}{|l|l|} Cash & ₦50,000 \\ Accounts Payable & ₦20,000 \\ Sales Revenue & ₦100,000 \\ Cost of Goods Sold & ₦80,000 \\ \end{tabular}}
C. {\begin{tabular}{|l|l|} Cash & ₦50,000 \\ Accounts Payable & ₦20,000 \\ Sales Revenue & ₦100,000 \\ Cost of Goods Sold & ₦80,000 \\ \end{tabular}}
D. {\begin{tabular}{|l|l|} Cash & ₦50,000 \\ Accounts Payable & ₦20,000 \\ Sales Revenue & ₦100,000 \\ Cost of Goods Sold & ₦80,000 \\ \end{tabular}}

Correct Answer: VIEW ANSWER

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Question 21
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

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Question 22
A firm has two partners, A and B, who share profits in the ratio 3:2. The capital of A is ₦60,000 and that of B is ₦40,000. Calculate the profit-sharing ratio of A and B.
Correct A. 3:2
B. 2:3
C. 4:3
D. 5:4

Correct Answer: A

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Question 23
A company's trial balance showed the following balances: Accounts Payable ₦120,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦200,000, and Common Stock ₦300,000. Prepare the company's balance sheet.
A. ₦1,220,000
B. ₦1,320,000
Correct C. ₦1,420,000
D. ₦1,520,000

Correct Answer: C

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Question 24
A company issued 10,000, 5% shares of ₦10 each at a premium of ₦2. The shares are redeemable at the end of 3 years. Calculate the amount of premium on the shares.
A. ₦20,000
Correct B. ₦40,000
C. ₦60,000
D. ₦80,000

Correct Answer: B

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Question 25
A firm has two partners, A and B, who share profits in the ratio 2:3. The capital of A is ₦30,000 and that of B is ₦45,000. Calculate the profit-sharing ratio of A and B.
Correct A. 2:3
B. 3:2
C. 4:3
D. 5:4

Correct Answer: A

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