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:
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.
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.
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.
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.
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.
Question 7
A manufacturing company uses a process costing system. The company produces two products, A and B, which have the following characteristics:
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.
Question 9
A company's trial balance as of December 31, 2023, is as follows:
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.
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.
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?
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?
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?
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.
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