POST UTME AFE BABALOLA UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as at December 31, 2023, is as follows:
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000
Question 2
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 3
A company's cash book showed a balance of ₦50,000. The company's bank statement showed a balance of ₦75,000. The company's cash book also showed a credit balance of ₦20,000 in the bank overdraft account. The bank statement showed a debit balance of ₦10,000 in the bank overdraft account. Prepare a bank reconciliation statement for the company.
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 4
A company has the following transactions during the year: Issued 10,000 9% debentures of ₦100 each at a discount of 5% Purchased a machine for ₦50,000 Sold goods for ₦120,000 Purchased goods for ₦80,000 Paid rent for ₦10,000 Prepare the company's profit and loss account for the year.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
A company's accounting records are incomplete due to a fire that destroyed its office. The company's accountant has reconstructed the records using the single-entry method. The accountant has identified the following transactions for the year ended December 31, 2022: 1. Cash sales: ₦1,500,000 2. Cash purchases: ₦800,000 3. Credit sales: ₦2,000,000 4. Credit purchases: ₦1,200,000 5. Dividends received: ₦300,000 6. Rent received: ₦400,000 7. Salaries paid: ₦600,000 8. Interest paid: ₦100,000 9. Depreciation: ₦200,000 10. Profit: ₦500,000 Using the single-entry method, prepare the company's statement of financial position as at December 31, 2022.
A. ₦3,500,000
B. ₦4,000,000
C. ₦4,500,000
D. ₦5,000,000
Question 6
A company purchases a machine for ₦1,000,000. The machine has an expected useful life of 5 years and a residual value of ₦100,000. Calculate the annual depreciation for the first year using the straight-line method.
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 7
A manufacturing company uses a process costing system. The company produces two products, A and B, which have the following characteristics:
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000
Question 8
A partnership has three partners: A, B, and C. The capital accounts of the partners at the beginning of the year were ₦50,000, ₦30,000, and ₦20,000 respectively. During the year, A withdrew ₦10,000, B introduced ₦5,000, and C withdrew ₦2,000. The profit for the year was ₦15,000. Prepare the partners' capital accounts at the end of the year.
A. A: ₦45,000, B: ₦35,000, C: ₦22,000
B. A: ₦40,000, B: ₦35,000, C: ₦25,000
C. A: ₦50,000, B: ₦35,000, C: ₦20,000
D. A: ₦45,000, B: ₦30,000, C: ₦25,000
Question 9
A company's trial balance as of December 31, 2023, is as follows:
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 10
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the total amount received from debenture holders and the amount of discount on the debentures.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 11
A company has the following balance sheet at the end of the year: Assets: ₦500,000 Liabilities: ₦200,000 Capital: ₦300,000 Prepare the company's trading account for the year.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 12
A company's trial balance as at 31st December, 2023 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦0 | | Accounts Payable | ₦0 | ₦8,000 | | Sales Revenue | ₦0 | ₦20,000 | | Cost of Goods Sold | ₦0 | ₦15,000 | | Net Income | ₦0 | ₦5,000 | What is the correct balance of the company's Cash account?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 13
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the opening inventory is ₦300,000. If the company purchases additional inventory at a cost of ₦800,000, what is the total cost of the inventory at the end of the period?
A. ₦1,400,000
B. ₦1,500,000
C. ₦1,600,000
D. ₦1,700,000
Question 14
A company's balance sheet shows an error of ₦5,000. The error is due to the omission of a transaction. What is the correct journal entry to rectify the error?
A. Debit Cash ₦5,000, Credit Profit and Loss ₦5,000
B. Debit Profit and Loss ₦5,000, Credit Cash ₦5,000
C. Debit Profit and Loss ₦5,000, Credit Capital ₦5,000
D. Debit Capital ₦5,000, Credit Profit and Loss ₦5,000
Question 15
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2 per share. Calculate the amount received from the shareholders.
A. ₦200,000
B. ₦210,000
C. ₦220,000
D. ₦230,000

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