POST UTME AFE BABALOLA UNIVERSITY 2019 Accounting | Objective

Are you preparing for POST UTME AFE BABALOLA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company uses the double-entry system of accounting. The following transactions occurred during the year: Purchased office equipment for ₦120,000, and paid ₦50,000 in cash. The remaining balance of ₦70,000 was financed by a loan from the bank. What is the correct journal entry for the purchase of office equipment?
Correct A. Debit Office Equipment ₦120,000, Credit Cash ₦50,000, Credit Bank Loan ₦70,000
B. Debit Office Equipment ₦120,000, Credit Cash ₦70,000, Credit Bank Loan ₦50,000
C. Debit Office Equipment ₦120,000, Credit Cash ₦120,000
D. Debit Office Equipment ₦120,000, Credit Bank Loan ₦120,000

Correct Answer: A

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Question 2
A company's assets are valued at ₦1,500,000. The company uses the straight-line method of depreciation. If the asset has a useful life of 5 years and a residual value of ₦150,000, what is the annual depreciation charge?
Correct A. ₦270,000
B. ₦300,000
C. ₦250,000
D. ₦200,000

Correct Answer: A

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Question 3
A company's cash book shows the following transactions: Cash received from customers ₦150,000, Cash paid to suppliers ₦80,000, Cash received from bank ₦20,000. What is the correct cash book entry for the transactions?
A. Debit Cash ₦150,000, Credit Sales ₦150,000
B. Debit Cash ₦150,000, Credit Purchases ₦80,000
Correct C. Debit Cash ₦150,000, Credit Bank ₦20,000
D. Debit Cash ₦150,000, Credit Sales ₦80,000

Correct Answer: C

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Question 4
A company's bank statement shows the following transactions: Bank balance ₦50,000, Cash deposited ₦20,000, Cash withdrawn ₦10,000. What is the correct bank reconciliation statement?
Correct A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: A

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Question 5
A company's manufacturing account shows the following transactions: Direct materials used ₦100,000, Direct labor costs ₦50,000, Factory overheads ₦30,000. What is the correct manufacturing account entry for the transactions?
A. Debit Work-in-Progress ₦180,000
B. Debit Direct Materials Used ₦100,000, Debit Direct Labor Costs ₦50,000
C. Debit Factory Overheads ₦30,000
Correct D. Debit Work-in-Progress ₦180,000, Debit Factory Overheads ₦30,000

Correct Answer: D

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Question 6
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this discrepancy?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
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. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

Correct Answer: B

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Question 7
A manufacturing company uses a job costing system. The following data is extracted from the company's records: Job No. 101: ₦10,000 direct materials, ₦5,000 direct labor, and ₦2,000 overheads Job No. 102: ₦8,000 direct materials, ₦4,000 direct labor, and ₦1,500 overheads What is the total cost of production for Job No. 101?
Correct A. ₦17,000
B. ₦17,500
C. ₦18,000
D. ₦18,500

Correct Answer: A

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Question 8
A partnership is formed between two individuals, A and B, with a capital contribution of ₦100,000 each. After one year, the profit is shared in the ratio 3:2. What is the amount of profit shared by partner A?
Correct A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: A

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Question 9
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the amount of its non-current liabilities?
A. ₦25,000
B. ₦50,000
C. ₦75,000
Correct D. ₦100,000

Correct Answer: D

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Question 10
A company's trial balance shows a debit balance of ₦20,000 in the account 'Accrued Expenses' and a credit balance of ₦15,000 in the account 'Accrued Income'. What is the correct journal entry to rectify this discrepancy?
A. ₦5,000 debit to Accrued Expenses and ₦5,000 credit to Accrued Income
Correct B. ₦5,000 debit to Accrued Income and ₦5,000 credit to Accrued Expenses
C. ₦10,000 debit to Accrued Expenses and ₦10,000 credit to Accrued Income
D. ₦10,000 debit to Accrued Income and ₦10,000 credit to Accrued Expenses

Correct Answer: B

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Question 11
A company uses the single entry system. The following transactions were recorded in the year ended December 31, 2022: 1. Purchased office equipment for ₦120,000. 2. Sold goods for ₦500,000. 3. Purchased raw materials for ₦300,000. 4. Paid salaries of ₦200,000. 5. Collected cash from customers for ₦600,000. 6. Paid rent for ₦150,000. 7. Purchased factory equipment for ₦250,000. 8. Sold factory equipment for ₦180,000. 9. Paid dividends of ₦100,000. 10. Purchased land for ₦500,000. Determine the total assets of the company at the end of the year.
A. ₦1,420,000
Correct B. ₦1,520,000
C. ₦1,620,000
D. ₦1,720,000

Correct Answer: B

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Question 12
A manufacturing company uses the process costing method. The following data were collected for the month of January 2023: Direct Materials: Raw materials purchased: ₦1,500,000 Raw materials used: ₦1,200,000 Direct Labour: Labour cost: ₦1,000,000 Labour hours worked: 10,000 hours Overheads: Variable overheads: ₦800,000 Fixed overheads: ₦600,000 Determine the cost of production per unit.
A. ₦1,200
B. ₦1,300
C. ₦1,400
Correct D. ₦1,500

Correct Answer: D

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Question 13
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. During the year, the partnership made a profit of ₦200,000. Determine the amount of profit that will be shared by each partner.
A. ₦300,000
Correct B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: B

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Question 14
A company uses the straight-line method of depreciation. The asset has a cost of ₦1,000,000 and a residual value of ₦200,000. The asset is expected to have a useful life of 5 years. Determine the annual depreciation charge.
A. ₦150,000
B. ₦160,000
Correct C. ₦170,000
D. ₦180,000

Correct Answer: C

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Question 15
A company uses the double-entry system. The following transactions were recorded in the year ended December 31, 2022: 1. Purchased office equipment for ₦120,000. 2. Sold goods for ₦500,000. 3. Purchased raw materials for ₦300,000. 4. Paid salaries of ₦200,000. 5. Collected cash from customers for ₦600,000. 6. Paid rent for ₦150,000. 7. Purchased factory equipment for ₦250,000. 8. Sold factory equipment for ₦180,000. 9. Paid dividends of ₦100,000. 10. Purchased land for ₦500,000. Determine the total assets of the company at the end of the year.
A. ₦1,420,000
Correct B. ₦1,520,000
C. ₦1,620,000
D. ₦1,720,000

Correct Answer: B

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Question 16
A company uses the single entry system. The following transactions occurred during the year: Depreciation on building: ₦120,000 Depreciation on machinery: ₦80,000 Salaries: ₦240,000 Rent: ₦150,000 Interest on loan: ₦60,000 What is the total amount of expenses for the year?
A. ₦650,000
B. ₦700,000
C. ₦750,000
Correct D. ₦800,000

Correct Answer: D

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Question 17
A public sector organization has the following transactions: Received ₦1,500,000 from the government Paid ₦800,000 to suppliers Paid ₦200,000 to employees What is the net increase in assets?
A. ₦500,000
B. ₦600,000
C. ₦700,000
Correct D. ₦800,000

Correct Answer: D

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Question 18
A company has the following balance sheet: Assets: ₦2,000,000 Liabilities: ₦1,200,000 Equity: ₦800,000 What is the ratio of liabilities to equity?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 19
A company uses the straight-line method of depreciation. The cost of the asset is ₦500,000 and its useful life is 5 years. What is the annual depreciation?
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦50,000

Correct Answer: A

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Question 20
A company has the following transactions: Purchased an asset for ₦200,000 Sold an asset for ₦150,000 What is the gain or loss on the sale of the asset?
A. ₦50,000
B. ₦0
Correct C. ₦-50,000
D. ₦-100,000

Correct Answer: C

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Question 21
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The company received £ 10,000 as share capital. Calculate the amount of share premium.
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 22
A partnership has two partners, A and B. The capital accounts of A and B are £ 10,000 and £ 15,000 respectively. The profit-sharing ratio is 2:3. Calculate the profit-sharing ratio in terms of the capital accounts.
Correct A. 2:3
B. 1:2
C. 3:2
D. 4:3

Correct Answer: A

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Question 23
A company purchased a machine for £ 10,000. The machine has a useful life of 5 years and a residual value of £ 2,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦1,600
B. ₦1,800
C. ₦2,000
D. ₦2,400

Correct Answer: A

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Question 24
A company issued 5,000 debentures of £ 100 each at a premium of £ 10 per debenture. The company received £ 500,000 as debenture issue proceeds. Calculate the amount of debenture premium.
A. ₦25,000
Correct B. ₦50,000
C. ₦75,000
D. ₦100,000

Correct Answer: B

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Question 25
A company purchased a machine for £ 20,000. The machine has a useful life of 8 years and a residual value of £ 4,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦2,000
B. ₦2,400
C. ₦2,800
D. ₦3,200

Correct Answer: A

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