POST UTME AL-HIKMAH UNIVERSITY 2025 Accounting | Objective

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Question 1
A company's balance sheet shows the following: | Assets | ₦1,500,000 | | Liabilities | ₦800,000 | | Share Capital | ₦300,000 | | Retained Earnings | ₦200,000 | What is the company's net worth?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 2
A company has a capital of ₦0,000 divided into 5,000 shares of ₡0 each. If the company issues 2,000 shares at a premium of ₥0 per share, calculate the amount received from the issue of shares.
A. ₡0,000
B. ₢0,000
C. ₣0,000
D. ₤0,000
Question 3
In a partnership account, what is the correct order of preparation of the following accounts?
A. Trading and Profit and Loss Account, Balance Sheet, Partners' Capital Account
B. Balance Sheet, Trading and Profit and Loss Account, Partners' Capital Account
C. Partners' Capital Account, Balance Sheet, Trading and Profit and Loss Account
D. Trading and Profit and Loss Account, Partners' Capital Account, Balance Sheet
Question 4
A partnership account shows a capital balance of ₦500,000. The partners' capital accounts are as follows: A ₦200,000, B ₦150,000, C ₦150,000. What is the correct journal entry to record the distribution of the profit of ₦50,000?
A. Debit Profit and Loss Account ₦50,000, Credit A's Capital ₦20,000, Credit B's Capital ₦15,000, Credit C's Capital ₦15,000
B. Debit Profit and Loss Account ₦50,000, Credit A's Capital ₦25,000, Credit B's Capital ₦12,500, Credit C's ₦12,500
C. Debit Profit and Loss Account ₦50,000, Credit A's Capital ₦20,000, Credit B's Capital ₦20,000, Credit C's Capital ₦10,000
D. Debit Profit and Loss Account ₦50,000, Credit A's Capital ₦25,000, Credit B's Capital ₦12,500, Credit C's Capital ₦12,500
Question 5
A manufacturing company produces two products, X and Y. The company's production costs for the year ended 31st December 2024 are as follows: Direct Materials: ₦1,500,000; Direct Labour: ₦1,200,000; Variable Overheads: ₦900,000; Fixed Overheads: ₦600,000. What is the total production cost for the year?
A. ₦4,200,000
B. ₦4,500,000
C. ₦4,800,000
D. ₦5,100,000
Question 6
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦1,000 | | | 2 Jan | Bank | | ₦500 | | 3 Jan | Cash | | ₦200 | | 4 Jan | Bank | ₦300 | | | 5 Jan | Cash | | ₦150 | What is the balance in the cash book on 5 January?
A. ₦1,250
B. ₦1,350
C. ₦1,450
D. ₦1,550
Question 7
A company is preparing its financial statements for the year ended 31st December 2024. The company's accounting year-end is 31st December, but the financial statements are to be prepared on a 30th June year-end. What is the accounting treatment for the following items?
A. Recognize the items in the financial statements as at 30th June 2024
B. Recognize the items in the financial statements as at 31st December 2024
C. Recognize the items in the financial statements as at 30th June 2025
D. Recognize the items in the financial statements as at 31st December 2025
Question 8
A company has a capital of ₦0,000 divided into 5,000 shares of ₡0 each. If the company issues 2,000 shares at a premium of ₥0 per share, calculate the amount received from the issue of shares.
A. ₡0,000
B. ₢0,000
C. ₣0,000
D. ₤0,000
Question 9
A company issues 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. ₦5,500
B. ₦5,500.00
C. ₦5,500.00
D. ₦5,500.00
Question 10
A company's cash book shows the following transactions: Debit Cash ₦5,000, Credit Accounts Receivable ₦3,000, Debit Sales Revenue ₦8,000, Credit Cost of Goods Sold ₦6,000. What is the net effect on the accounting equation?
A. ₦2,000 increase in assets
B. ₦2,000 decrease in liabilities
C. ₦2,000 increase in equity
D. ₦2,000 decrease in assets
Question 11
A company's bank statement shows the following transactions: Debit NSF Check ₦10,000, Credit Bank Service Charge ₦5,000. What is the net effect on the accounting equation?
A. ₦5,000 decrease in assets
B. ₦5,000 increase in liabilities
C. ₦5,000 increase in equity
D. ₦5,000 decrease in liabilities
Question 12
A company has a capital of ₦0,000 divided into 5,000 shares of ₡0 each. If the company issues 2,000 shares at a premium of ₥0 per share, calculate the amount received from the issue of shares.
A. ₡0,000
B. ₢0,000
C. ₣0,000
D. ₤0,000
Question 13
A company's trial balance shows the following balances: Sales ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦100,000, Net Profit ₦50,000. What is the correct journal entry to record the closing of the profit and loss account?
A. Debit Profit and Loss Account ₦50,000, Credit Retained Earnings ₦50,000
B. Debit Profit and Loss Account ₦50,000, Credit Capital ₦50,000
C. Debit Profit and Loss Account ₦50,000, Credit Drawings ₦50,000
D. Debit Profit and Loss Account ₦50,000, Credit Dividends ₦50,000
Question 14
A company's cash book shows the following transactions: Debit Cash ₦8,000, Credit Accounts Payable ₦4,000, Debit Sales Revenue ₦12,000, Credit Cost of Goods Sold ₦9,000. What is the net effect on the accounting equation?
A. ₦3,000 increase in assets
B. ₦3,000 decrease in liabilities
C. ₦3,000 increase in equity
D. ₦3,000 decrease in assets
Question 15
A company issues 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. ₦0,500
B. ₦1,000
C. ₦1,050
D. ₦1,500

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