POST UTME BABCOCK UNIVERSITY 2017 Accounting | Objective

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Question 1
A company uses the double-entry system of accounting. The following transactions were recorded during the year: Debit: Raw Materials ₥ 10,000, Wages ₥ 20,000, Rent ₥ 30,000 Credit: Purchases ₥ 40,000, Salaries ₥ 25,000, Dividends ₥ 15,000 What is the total amount of assets recorded by the company?
A. ₥ 55,000
B. ₥ 60,000
C. ₥ 65,000
D. ₥ 70,000
Question 2
A company uses the straight-line method of depreciation. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation expense?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000
Question 3
A company has the following trial balance: Debit 100,000, Credit 120,000. What is the correct journal entry to rectify the error?
A. Debit 20,000 to Profit and Loss Account, Credit 20,000 to Capital Account
B. Debit 20,000 to Capital Account, Credit 20,000 to Profit and Loss Account
C. Debit 20,000 to Profit and Loss Account, Credit 20,000 to Drawings Account
D. Debit 20,000 to Drawings Account, Credit 20,000 to Profit and Loss Account
Question 4
A public sector organization has the following transactions: Purchased office equipment for ₦50,000, paid ₦20,000 in advance for rent, and received ₦15,000 from a customer. Prepare the journal entries for these transactions.
A. Debit Office Equipment ₦50,000, Credit Cash ₦50,000
B. Debit Rent Expense ₦20,000, Credit Cash ₦20,000
C. Debit Accounts Receivable ₦15,000, Credit Cash ₦15,000
D. Debit Office Equipment ₦50,000, Credit Rent Expense ₦20,000
Question 5
A company uses the single-entry system of accounting. The following transactions were recorded during the year: Debit: Raw Materials ₥ 10,000, Wages ₥ 20,000, Rent ₥ 30,000 Credit: Purchases ₥ 40,000, Salaries ₥ 25,000, Dividends ₥ 15,000 What is the total amount of assets recorded by the company?
A. ₥ 55,000
B. ₥ 60,000
C. ₥ 65,000
D. ₥ 70,000
Question 6
A company has a cost of goods sold of ₦500,000 and a selling price of ₦1,000,000. The company's accountant has made an error in the financial statements, resulting in an understatement of cost of goods sold by ₦20,000. What is the correct gross profit?
A. ₦400,000
B. ₦420,000
C. ₦440,000
D. ₦460,000
Question 7
A partnership has two partners, A and B. The partnership's capital account shows a balance of ₦20,000, while the partner's capital account shows a balance of ₦15,000. What is the correct explanation for the discrepancy?
A. Partner A has made an error in recording a transaction.
B. Partner B has made an error in recording a transaction.
C. The partnership has made an error in reconciling the capital account and partner's capital account.
D. The partnership has made an error in recording a deposit.
Question 8
A single entry system is used by a company to record transactions. The company's cash book shows a balance of ₦10,000, while the general ledger shows a balance of ₦12,000. What is the correct explanation for the discrepancy?
A. The company has made an error in recording a transaction.
B. The company has made an error in reconciling the cash book and general ledger.
C. The company has made an error in recording a deposit.
D. The company has made an error in recording a withdrawal.
Question 9
A company has the following ledger accounts: Sales 100,000, Purchases 120,000. What is the correct journal entry to rectify the error?
A. Debit 20,000 to Profit and Loss Account, Credit 20,000 to Capital Account
B. Debit 20,000 to Capital Account, Credit 20,000 to Profit and Loss Account
C. Debit 20,000 to Profit and Loss Account, Credit 20,000 to Drawings Account
D. Debit 20,000 to Drawings Account, Credit 20,000 to Profit and Loss Account
Question 10
A company has the following ledger accounts: Sales 100,000, Purchases 120,000. What is the correct journal entry to rectify the error?
A. Debit 20,000 to Profit and Loss Account, Credit 20,000 to Capital Account
B. Debit 20,000 to Capital Account, Credit 20,000 to Profit and Loss Account
C. Debit 20,000 to Profit and Loss Account, Credit 20,000 to Drawings Account
D. Debit 20,000 to Drawings Account, Credit 20,000 to Profit and Loss Account
Question 11
A company's manufacturing account shows the following balances:
A. Debit Work-in-Progress 10,000 and Credit Cost of Goods Sold 10,000
B. Debit Cost of Goods Sold 10,000 and Credit Work-in-Progress 10,000
C. Debit Direct Materials 10,000 and Credit Direct Labor 10,000
D. Debit Direct Labor 10,000 and Credit Direct Materials 10,000
Question 12
A public sector organization has a budget of ₦1,000,000 for a project. The project has two components, A and B. Component A has a budget of ₦500,000 and a variance of ₦20,000. Component B has a budget of ₦300,000 and a variance of ₦15,000. What is the total variance for the project?
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 13
A company's trial balance shows a difference of ₦20,000 between the debit and credit balances. The company's accountant suspects that the difference is due to an error in the posting of a transaction. Which of the following steps should the accountant take next?
A. Verify the journal entries for the period to identify the error.
B. Reconcile the bank statement to ensure that all transactions have been recorded.
C. Check the cash book to ensure that all cash transactions have been recorded.
D. Prepare a revised trial balance to reflect the correct balances.
Question 14
A company uses the single-entry system of accounting. The following transactions were recorded during the year: Debit: Raw Materials ₥ 10,000, Wages ₥ 20,000, Rent ₥ 30,000 Credit: Purchases ₥ 40,000, Salaries ₥ 25,000, Dividends ₥ 15,000 What is the total amount of assets recorded by the company?
A. ₥ 55,000
B. ₥ 60,000
C. ₥ 65,000
D. ₥ 70,000
Question 15
A company has two departments, A and B. Department A has a balance of ₦500,000 in its control account, while Department B has a balance of ₦200,000. The total balance in the company's control account is ₦1,000,000. What is the balance in Department A's control account after Department B's balance is transferred to Department A?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000

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