POST UTME AFE BABALOLA UNIVERSITY 2023 Accounting | Objective

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Question 1
A manufacturing company uses a job costing system. The following data are extracted from the company's records for the year ended December 31, 2022: Direct Materials: ₦1,500,000 Direct Labour: ₦750,000 Overheads: ₦1,200,000 Total Cost: ₦3,450,000 Selling Price per unit: ₦2,500 Number of units sold: 1,500 Determine the profit or loss for the year.
A. ₦1,125,000
B. ₦1,250,000
C. ₦1,375,000
D. ₦1,500,000
Question 2
A company's profit and loss account for the year ended December 31, 2022, is as follows: Turnover: ₦5,000,000 Cost of Goods Sold: ₦3,500,000 Gross Profit: ₦1,500,000 Operating Expenses: ₦750,000 Profit Before Tax: ₦750,000 Tax: ₦250,000 Profit After Tax: ₦500,000 Determine the company's return on equity.
A. 25%
B. 30%
C. 35%
D. 40%
Question 3
A company uses the self-balancing ledger system. What is the purpose of the self-balancing ledger?
A. To record all transactions of the company.
B. To record only cash transactions of the company.
C. To record only credit transactions of the company.
D. To ensure that the ledger accounts are always balanced.
Question 4
A company issued 10,000, 9% debentures of ₦100 each at a premium of 10%. Calculate the amount received from debenture holders and the amount of premium.
A. ₦1,100,000
B. ₦1,150,000
C. ₦1,200,000
D. ₦1,250,000
Question 5
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦500,000 and an estimated useful life of 5 years. If the asset is depreciated for 3 years, what is the annual depreciation?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 6
A company's trial balance shows the following accounts: Accounts Payable ₦100,000, Accounts Receivable ₦50,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦200,000, Interest Expense ₦15,000, Interest Income ₦10,000, Net Income ₦50,000, Prepaid Rent ₦30,000, Salaries Expense ₦40,000, Sales Revenue ₦600,000, and Utilities Expense ₦25,000. What is the total amount of assets?
A. ₦1,100,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 7
In a partnership account, the capital of a partner who leaves the business is transferred to the drawing account. What is the effect of this transfer on the partner's capital account?
A. The partner's capital account is reduced by the amount transferred.
B. The partner's capital account is increased by the amount transferred.
C. The partner's capital account remains unchanged.
D. The partner's capital account is closed.
Question 8
A company has the following transactions: Purchased goods for ₦150,000 on credit, sold goods for ₦200,000 on credit, and paid cash of ₦30,000. Prepare the journal entry for the above transactions.
A. Debit Cash ₦30,000, Credit Accounts Payable ₦150,000, Debit Sales ₦200,000, Credit Cost of Goods Sold ₦150,000
B. Debit Cash ₦30,000, Credit Accounts Receivable ₦200,000, Debit Cost of Goods Sold ₦150,000, Credit Purchases ₦150,000
C. Debit Accounts Payable ₦150,000, Credit Purchases ₦150,000, Debit Sales ₦200,000, Credit Cost of Goods Sold ₦150,000
D. Debit Cash ₦30,000, Credit Accounts Receivable ₦200,000, Debit Purchases ₦150,000, Credit Cost of Goods Sold ₦150,000
Question 9
A company uses the cash book to record its cash transactions. What is the purpose of the cash book?
A. To record all transactions of the company.
B. To record only cash transactions of the company.
C. To record only credit transactions of the company.
D. To record only debit transactions of the company.
Question 10
A company has the following transactions: Purchased a piece of land for ₦500,000, and then sold it for ₦700,000. Prepare the journal entry for the above transactions.
A. Debit Land ₦500,000, Credit Cash ₦700,000
B. Debit Cash ₦500,000, Credit Land ₦700,000
C. Debit Land ₦500,000, Credit Cash ₦700,000
D. Debit Cash ₦500,000, Credit Land ₦700,000
Question 11
A company's cash book shows the following transactions: 1. Cash received from customers ₦50,000. 2. Cash paid to suppliers ₦20,000. 3. Cash received from bank ₦10,000. 4. Cash paid to bank ₦5,000. What is the balance of the cash book at the end of the month?
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 12
A company has the following transactions: Purchased goods for ₦200,000 on credit, and then sold goods for ₦300,000 on credit. Prepare the journal entry for the above transactions.
A. Debit Accounts Payable ₦200,000, Credit Purchases ₦200,000, Debit Sales ₦300,000, Credit Accounts Receivable ₦300,000
B. Debit Accounts Payable ₦200,000, Credit Purchases ₦200,000, Debit Sales ₦300,000, Credit Accounts Receivable ₦300,000
C. Debit Accounts Payable ₦200,000, Credit Purchases ₦200,000, Debit Sales ₦300,000, Credit Accounts Receivable ₦300,000
D. Debit Accounts Payable ₦200,000, Credit Purchases ₦200,000, Debit Sales ₦300,000, Credit Accounts Receivable ₦300,000
Question 13
A government agency has the following transactions: Cash received from taxpayers ₦500,000, Cash paid to suppliers ₦200,000, Cash paid to employees ₦150,000, Cash received from interest income ₦20,000, and Cash paid to interest expense ₦15,000. What is the net increase in cash?
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000
Question 14
A company has the following transactions: Purchased a piece of land for ₦500,000, and then sold it for ₦700,000. Prepare the journal entry for the above transactions.
A. Debit Land ₦500,000, Credit Cash ₦700,000
B. Debit Cash ₦500,000, Credit Land ₦700,000
C. Debit Land ₦500,000, Credit Cash ₦700,000
D. Debit Cash ₦500,000, Credit Land ₦700,000
Question 15
A company has a capital of ₦1,500,000, divided into 150,000 shares of ₦10 each. The company issues 30,000 debentures of ₦50 each. Prepare the company's balance sheet.
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,500,000

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