POST UTME AFE BABALOLA UNIVERSITY 2024 Accounting | Objective

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Question 1
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
Correct B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000

Correct Answer: B

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Question 2
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.
Correct 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

Correct Answer: A

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Question 3
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 cash flow statement for the year.
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 4
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
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 5
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
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 6
A company issued 5,000, 10% debentures of ₦100 each on January 1, 2022. The debentures are redeemable at par on December 31, 2025. Interest is payable half-yearly on June 30 and December 31. Calculate the amount of interest payable on December 31, 2024.
A. ₦25,000
Correct B. ₦50,000
C. ₦75,000
D. ₦100,000

Correct Answer: B

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Question 7
A company's balance sheet as at December 31, 2023, is as follows:
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,500,000

Correct Answer: C

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Question 8
A partnership is formed between two partners, A and B, who contribute ₦200,000 and ₦300,000 respectively. The profit is to be shared in the ratio 2:3. If the profit for the year is ₦150,000, calculate the amount of profit to be shared by partner A.
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 9
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount of premium received.
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 10
A company's trading account for the year ended December 31, 2023, is as follows:
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,500,000

Correct Answer: C

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Question 11
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
Correct C. ₦4,500,000
D. ₦5,000,000

Correct Answer: C

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Question 12
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
Correct B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: B

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Question 13
A company issues 10,000 ordinary shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦105,000
B. ₦110,000
C. ₦115,000
Correct D. ₦120,000

Correct Answer: D

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Question 14
A company's cash book shows the following transactions: 1. Cash sales: ₦1,000,000 2. Cash purchases: ₦500,000 3. Credit sales: ₦800,000 4. Credit purchases: ₦400,000 5. Dividends received: ₦200,000 Prepare the company's cash book.
A. ₦1,500,000
Correct B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000

Correct Answer: B

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Question 15
A government agency receives a grant of ₦1,000,000 from the federal government. The grant is to be used for a specific project. Prepare the journal entry to record the receipt of the grant.
Correct A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

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Question 16
A manufacturing company uses a job order costing system. The company has two departments: Cutting and Assembly. The Cutting department incurs costs of ₦120,000 and ₦80,000 for direct materials and direct labor, respectively. The Assembly department incurs costs of ₦60,000 and ₦40,000 for direct materials and direct labor, respectively. The company's total direct labor cost for the period is ₦240,000. If the company's total direct materials cost for the period is ₦360,000, what is the total cost of goods manufactured for the period?
A. ₦600,000
Correct B. ₦640,000
C. ₦680,000
D. ₦720,000

Correct Answer: B

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Question 17
SHARED STIMULUS
Assets: ₦1,200,000; Liabilities: ₦300,000; Equity: ₦600,000
A company's trial balance as of December 31, 2023, is as follows:
A. ₦1,200,000
B. ₦1,500,000
Correct C. ₦1,800,000
D. ₦2,000,000

Correct Answer: C

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Question 18
A company uses the weighted average method to value its inventory. The company has two types of inventory: Type A and Type B. Type A has a cost of ₦100 per unit and a selling price of ₦120 per unit. Type B has a cost of ₦80 per unit and a selling price of ₦100 per unit. If the company has 100 units of Type A and 200 units of Type B, what is the total value of the inventory?
A. ₦24,000
B. ₦28,000
Correct C. ₦32,000
D. ₦36,000

Correct Answer: C

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Question 19
SHARED STIMULUS
Assets: ₦1,200,000; Liabilities: ₦300,000; Equity: ₦600,000
A company's balance sheet as of December 31, 2023, is as follows:
A. ₦1,500,000
Correct B. ₦1,800,000
C. ₦2,000,000
D. ₦2,200,000

Correct Answer: B

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Question 20
A company uses the double-entry system of accounting. The company has a cash account with a debit balance of ₦100,000. If the company's cash account is credited with ₦50,000, what is the new balance of the cash account?
A. ₦50,000
Correct B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 21
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
A. ₦24,000
Correct B. ₦20,000
C. ₦22,000
D. ₦25,000

Correct Answer: B

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Question 22
A company's trial balance shows an error of ₦10,000. The error is due to the omission of a transaction. What is the correct journal entry to rectify the error?
A. Debit Cash ₦10,000, Credit Profit and Loss ₦10,000
Correct B. Debit Profit and Loss ₦10,000, Credit Cash ₦10,000
C. Debit Profit and Loss ₦10,000, Credit Capital ₦10,000
D. Debit Capital ₦10,000, Credit Profit and Loss ₦10,000

Correct Answer: B

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Question 23
A company uses the weighted average method to value its inventory. The following data is available: Cost of goods available for sale ₦120,000, Net realizable value ₦100,000, and the cost of goods sold ₦80,000. What is the cost of goods sold using the weighted average method?
Correct A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: A

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Question 24
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
Correct 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

Correct Answer: B

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Question 25
A company uses the perpetual inventory system. The following data is available: Beginning inventory ₦20,000, Purchases ₦30,000, and Sales ₦40,000. What is the cost of goods sold?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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