POST UTME AL-HIKMAH UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME AL-HIKMAH UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company produces two products, X and Y, using two machines, A and B. Machine A can produce 60 units of X and 40 units of Y per hour, while machine B can produce 40 units of X and 60 units of Y per hour. If the company operates for 8 hours a day, what is the total number of units of X and Y produced per day?
A. 800 units of X and 600 units of Y
B. 1200 units of X and 800 units of Y
Correct C. 1600 units of X and 1200 units of Y
D. 2000 units of X and 1600 units of Y

Correct Answer: C

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Question 2
A company has a cash book account with a balance of ₦150,000. The company receives a cash deposit of ₦50,000 and pays a bill of ₦20,000. What is the new balance of the cash book account?
Correct A. ₦180,000
B. ₦170,000
C. ₦160,000
D. ₦150,000

Correct Answer: A

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Question 3
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦120,000, how much will partner A receive?
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 4
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Bank | | 8,000 | | 3rd Jan | Cash | | 5,000 | | 4th Jan | Bank | | 3,000 | What is the balance of the cash book account?
A. ₦10,000
Correct B. ₦8,000
C. ₦5,000
D. ₦3,000

Correct Answer: B

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Question 5
A company has the following balance sheet: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Stock | 30,000 | Share Capital | 40,000 | | Debtors | 20,000 | | | | Creditors | 10,000 | | | What is the total amount of equity?
A. ₦60,000
B. ₦70,000
C. ₦80,000
Correct D. ₦90,000

Correct Answer: D

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Question 6
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000, Purchases: ₦1,200,000, Returns Outwards: ₦20,000, Returns Inwards: ₦15,000. Calculate the gross profit for the year.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 7
A company issued 10,000, 10% debentures of ₦100 each on 1st January 2022. The debentures are redeemable at par after 5 years. Calculate the annual charge for the year ended 31st December 2022.
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 8
A company's balance sheet as at 31st December 2022 is as follows: Share Capital: ₦500,000, Reserves: ₦300,000, Debtors: ₦150,000, Creditors: ₦100,000. Calculate the net worth of the company.
A. ₦750,000
B. ₦800,000
Correct C. ₦850,000
D. ₦900,000

Correct Answer: C

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Question 9
A company's cash book for the year ended 31st December 2022 is as follows: Cash at Bank: ₦200,000, Cash in Hand: ₦50,000, Bank Overdraft: ₦150,000. Calculate the total cash and bank balance.
A. ₦400,000
B. ₦450,000
Correct C. ₦500,000
D. ₦550,000

Correct Answer: C

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Question 10
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000, Purchases: ₦1,200,000, Returns Outwards: ₦20,000, Returns Inwards: ₦15,000. Calculate the gross profit for the year.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 11
A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, Accounts Receivable, and Sales. The ledger also has a control account called 'Total Assets'. If the company's cash account balance is ₦150,000 and its accounts payable balance is ₦75,000, what is the balance in the 'Total Assets' control account?
A. ₦225,000
B. ₦175,000
Correct C. ₦225,000
D. ₦175,000

Correct Answer: C

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Question 12
A manufacturing company uses a job order costing system. The company has the following accounts: Work in Process, Finished Goods, and Cost of Goods Sold. The company's Work in Process account has a balance of ₦200,000 and its Finished Goods account has a balance of ₦150,000. If the company sells 500 units of finished goods at ₦300 each, what is the balance in the Cost of Goods Sold account?
A. ₦175,000
Correct B. ₦225,000
C. ₦175,000
D. ₦225,000

Correct Answer: B

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Question 13
A company uses a cash book to record its cash transactions. The cash book has the following accounts: Cash, Bank, and Discounts. The company's cash account balance is ₦100,000 and its bank account balance is ₦50,000. If the company receives a deposit of ₦20,000 and pays a bill of ₦15,000, what is the new balance in the Cash account?
A. ₦115,000
B. ₦105,000
Correct C. ₦115,000
D. ₦105,000

Correct Answer: C

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Question 14
A company uses a bank reconciliation statement to reconcile its bank account. The statement shows the following balances: Cash, ₦100,000; Bank, ₦50,000; and Outstanding Checks, ₦20,000. If the company's bank statement shows a balance of ₦70,000, what is the reason for the difference?
A. Outstanding checks
B. Deposits in transit
Correct C. Outstanding checks and deposits in transit
D. Deposits in transit

Correct Answer: C

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Question 15
A company uses a double-entry system to record its transactions. The company has the following accounts: Cash, Accounts Payable, and Sales. The company's cash account balance is ₦150,000 and its accounts payable balance is ₦75,000. If the company sells 500 units of goods at ₦300 each, what is the new balance in the Cash account?
A. ₦225,000
B. ₦175,000
Correct C. ₦225,000
D. ₦175,000

Correct Answer: C

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Question 16
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The shares were subscribed for by the public in full. Calculate the amount received from the issue of shares.
A. £ 10,000
B. £ 50,000
Correct C. £ 60,000
D. £ 70,000

Correct Answer: C

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Question 17
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦12,500
Correct B. ₦13,000
C. ₦13,500
D. ₦14,000

Correct Answer: B

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Question 18
A company's trial balance as at 31st December 2020 showed the following balances: Capital £ 50,000, Profit £ 20,000, Drawings £ 10,000. Prepare the company's Balance Sheet as at 31st December 2020.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 19
A company issued 5,000 debentures of £ 100 each at a discount of £ 5 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦475,000
Correct B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: B

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Question 20
A company's trading account for the year ended 31st December 2020 showed the following balances: Sales £ 100,000, Purchases £ 80,000, Returns Outwards £ 5,000. Prepare the company's Trading Account for the year ended 31st December 2020.
A. ₦20,000
Correct B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: B

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Question 21
A company's Balance Sheet as at 31st December 2020 showed the following balances: Capital £ 50,000, Profit £ 20,000, Drawings £ 10,000. Prepare the company's Profit and Loss Account for the year ended 31st December 2020.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 22
A public sector organization has a budget of ₦1,500,000 for the year. The organization has the following expenses: salaries ₦600,000, rent ₦200,000, utilities ₦150,000, and miscellaneous ₦250,000. What is the percentage of the budget spent on salaries?
A. 30%
B. 40%
Correct C. 50%
D. 60%

Correct Answer: C

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Question 23
A company uses the single-entry system of accounting. The company's assets at the beginning of the year were ₦500,000. During the year, the company purchased equipment for ₦200,000 and sold goods for ₦300,000. What is the company's net worth at the end of the year?
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 24
A company uses the double-entry system of accounting. The company's assets at the beginning of the year were ₦500,000. During the year, the company purchased equipment for ₦200,000 and sold goods for ₦300,000. What is the company's net worth at the end of the year?
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 25
A company uses the double-entry system of accounting. The company's assets at the beginning of the year were ₦500,000. During the year, the company purchased equipment for ₦200,000 and sold goods for ₦300,000. What is the company's net worth at the end of the year?
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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