POST UTME AL-HIKMAH UNIVERSITY 2023 Accounting | Objective

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Question 1
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The profit-sharing ratio is 3:2. If the profit for the year is ₦750,000, calculate the amount of profit that should be shared by A.
Correct A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000

Correct Answer: A

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Question 2
A company uses the double-entry system of accounting. The following transactions were recorded during the year:
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 3
A company has the following trial balance:
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 4
A company uses the self-balancing ledger system. The following transactions were recorded during the year:
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 5
A company has the following control account balances:
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 6
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the profit for the year is ₦750,000, calculate the amount of profit that will be shared by A.
Correct A. ₦450,000
B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 7
A company uses the straight-line method of depreciation to depreciate its assets. If the asset has a useful life of 5 years and a residual value of ₦50,000, calculate the annual depreciation charge if the asset cost ₦250,000.
Correct A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000

Correct Answer: A

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Question 8
A company prepares its final accounts for the year ended 31st December 2022. The company's trial balance as at 31st December 2022 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Bank | ₦20,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales | ₦0 | ₦150,000 | | Cost of Goods Sold | ₦0 | ₦80,000 | | Profit | ₦0 | ₦0 | | Total | ₦70,000 | ₦220,000 | What is the amount of profit for the year ended 31st December 2022?
A. ₦70,000
B. ₦80,000
Correct C. ₦90,000
D. ₦100,000

Correct Answer: C

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Question 9
A government agency prepares its financial statements for the year ended 31st December 2022. The agency's financial statements are as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Bank | ₦20,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales | ₦0 | ₦150,000 | | Cost of Goods Sold | ₦0 | ₦80,000 | | Profit | ₦0 | ₦0 | | Total | ₦70,000 | ₦220,000 | What is the amount of profit for the year ended 31st December 2022?
A. ₦70,000
B. ₦80,000
Correct C. ₦90,000
D. ₦100,000

Correct Answer: C

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Question 10
A company prepares its trial balance as at 31st December 2022. The trial balance is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Bank | ₦20,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales | ₦0 | ₦150,000 | | Cost of Goods Sold | ₦0 | ₦80,000 | | Profit | ₦0 | ₦0 | | Total | ₦70,000 | ₦220,000 | What is the amount of profit for the year ended 31st December 2022?
A. ₦70,000
B. ₦80,000
Correct C. ₦90,000
D. ₦100,000

Correct Answer: C

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Question 11
A company prepares its financial statements for the year ended 31st December 2022. The company's financial statements are as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Bank | ₦20,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales | ₦0 | ₦150,000 | | Cost of Goods Sold | ₦0 | ₦80,000 | | Profit | ₦0 | ₦0 | | Total | ₦70,000 | ₦220,000 | What is the amount of profit for the year ended 31st December 2022?
A. ₦70,000
B. ₦80,000
Correct C. ₦90,000
D. ₦100,000

Correct Answer: C

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Question 12
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 50,000. Calculate the total amount received from the issue of shares.
A. ₦ 210,000
B. ₦ 220,000
C. ₦ 230,000
Correct D. ₦ 240,000

Correct Answer: D

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Question 13
A partnership has two partners, A and B. A invested ₦ 80,000 and B invested ₦ 60,000. The profit-sharing ratio is 3:2. Calculate the share of profit of A.
A. ₦ 36,000
Correct B. ₦ 40,000
C. ₦ 42,000
D. ₦ 44,000

Correct Answer: B

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Question 14
A company purchased a machine for ₦ 120,000. It was sold after 5 years for ₦ 90,000. Calculate the annual depreciation.
A. ₦ 6,000
B. ₦ 8,000
Correct C. ₦ 10,000
D. ₦ 12,000

Correct Answer: C

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Question 15
A company issued 5% debentures of ₦ 10,000 each. The interest is payable half-yearly. Calculate the amount of interest payable in a year.
A. ₦ 250
B. ₦ 500
C. ₦ 750
Correct D. ₦ 1,000

Correct Answer: D

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Question 16
A company purchased a machine for ₦ 150,000. It was sold after 3 years for ₦ 100,000. Calculate the annual depreciation.
A. ₦ 10,000
B. ₦ 12,000
Correct C. ₦ 15,000
D. ₦ 18,000

Correct Answer: C

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Question 17
A company's cash book shows a balance of ₦125,000. However, the bank statement shows a balance of ₦120,000. The company's bank reconciliation statement shows a difference of ₦5,000. What is the reason for this difference?
A. Bank charges
B. Interest on overdraft
Correct C. Cheque returned unpaid
D. Incorrect bank statement

Correct Answer: C

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Question 18
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 3 hours of indirect labor, while product B requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 8 hours a day and produces 100 units of product A and 50 units of product B, what is the total labor cost?
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 19
A company's accounting records show the following transactions: Debit Cash ₦10,000, Credit Accounts Payable ₦5,000, Debit Accounts Receivable ₦8,000, Credit Sales ₦12,000. What is the net effect on the company's cash balance?
A. ₦5,000 increase
Correct B. ₦5,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease

Correct Answer: B

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Question 20
A company uses the single-entry system of accounting. The company's records show the following transactions: Debit Cash ₦15,000, Credit Accounts Payable ₦8,000, Debit Accounts Receivable ₦12,000, Credit Sales ₦18,000. What is the net effect on the company's cash balance?
Correct A. ₦5,000 increase
B. ₦5,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease

Correct Answer: A

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Question 21
A company's control account shows a balance of ₦50,000. However, the subsidiary ledger shows a balance of ₦60,000. What is the reason for this difference?
A. Error in control account
Correct B. Error in subsidiary ledger
C. Difference in accounting periods
D. Difference in accounting methods

Correct Answer: B

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Question 22
A company issued 5,000 shares of 10 par value at a premium of 25%. Calculate the total amount received from the issue of shares.
A. ₦125,000
B. ₦150,000
Correct C. ₦175,000
D. ₦200,000

Correct Answer: C

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Question 23
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | What is the balance of the cash account?
Correct A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,000

Correct Answer: A

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Question 24
A company's balance sheet as at 31st December 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Retained Earnings | 10,000 | | Total | 80,000 | Total | 90,000 | What is the amount of the company's share capital?
Correct A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: A

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Question 25
A company's profit and loss account for the year ended 31st December 2022 is as follows: | Particulars | ₦ | | --- | --- | | Sales | 100,000 | | Cost of Goods Sold | 60,000 | | Gross Profit | 40,000 | | Operating Expenses | 20,000 | | Net Profit | 20,000 | What is the company's gross profit percentage?
Correct A. 40%
B. 50%
C. 60%
D. 70%

Correct Answer: A

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