Practice Post UTME BABCOCK UNIVERSITY accounting 2018 Past Questions

Question 1

The following is a trial balance for a partnership between A and B: Debit Cr. Credit Cash 100,000 100,000 Bank 50,000 50,000 Accounts Receivable 20,000 20,000 Equipment 80,000 80,000 Accounts Payable 10,000 10,000 Salaries Expense 40,000 40,000 Rent Expense 20,000 20,000 Utilities Expense 10,000 10,000 Total 270,000 270,000 What is the correct order of closing entries for this partnership?

Correct A. Prepare a trial balance, then prepare the closing entries for the income statement and balance sheet.

B. Prepare the closing entries for the income statement, then prepare a trial balance, then prepare the closing entries for the balance sheet.

C. Prepare a trial balance, then prepare the closing entries for the balance sheet, then prepare the closing entries for the income statement.

D. Prepare the closing entries for the income statement, then prepare the closing entries for the balance sheet, then prepare a trial balance.

Correct Answer: A

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Question 2

A company has the following transactions: 1. Issued 10,000 shares of common stock at 5 per share. 2. Purchased equipment for 80,000 cash. 3. Sold 5,000 shares of common stock at 10 per share. 4. Declared and paid a dividend of 20,000. What is the total amount of retained earnings at the end of the period?

A. 30,000

B. 40,000

Correct C. 50,000

D. 60,000

Correct Answer: C

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Question 3

The following is a diagram of a circuit: { "type": "svg", "category": "physics", "elements": [ { "type": "circuit", "label": "A", "position": "left" }, { "type": "resistor", "label": "B", "position": "right" } ], "connections": [ [ "A", "B" ] ], "style": "black_and_white_textbook" }

A. The circuit is a series circuit.

B. The circuit is a parallel circuit.

Correct C. The circuit is a combination of series and parallel circuits.

D. The circuit is a closed circuit.

Correct Answer: C

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Question 4

A company has the following transactions: 1. Issued 10,000 shares of common stock at 5 per share. 2. Purchased equipment for 80,000 cash. 3. Sold 5,000 shares of common stock at 10 per share. 4. Declared and paid a dividend of 20,000. What is the total amount of retained earnings at the end of the period?

A. 30,000

B. 40,000

Correct C. 50,000

D. 60,000

Correct Answer: C

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Question 5

The following is a diagram of a plant: { "type": "svg", "category": "biology", "elements": [ { "type": "leaf", "label": "A", "position": "left" }, { "type": "stem", "label": "B", "position": "right" } ], "connections": [ [ "A", "B" ] ], "style": "black_and_white_textbook" }

A. The plant is a monocot.

B. The plant is a dicot.

C. The plant is a gymnosperm.

Correct D. The plant is an angiosperm.

Correct Answer: D

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Question 6

A company uses the double-entry system of accounting. The following transactions occurred during the month of January: Purchased office supplies for ₦10,000, sold goods for ₦50,000, and paid salaries of ₦20,000. Prepare the journal entries for these transactions.

Correct A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000

B. Debit Office Supplies ₦10,000, Credit Accounts Payable ₦10,000

C. Debit Office Supplies ₦10,000, Credit Sales ₦10,000

D. Debit Office Supplies ₦10,000, Credit Salaries ₦10,000

Correct Answer: A

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Question 7

A manufacturing company has the following balance in its work-in-progress account: ₦50,000. During the month, it incurred direct labor costs of ₦20,000 and overhead costs of ₦15,000. Calculate the cost of goods manufactured.

Correct A. ₦85,000

B. ₦60,000

C. ₦45,000

D. ₦30,000

Correct Answer: A

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Question 8

A company's cash book shows the following transactions: Deposited ₦10,000 into the bank, withdrew ₦5,000 from the bank, and purchased office supplies for ₦8,000. Prepare the cash book entries for these transactions.

A. Debit Office Supplies ₦8,000, Credit Cash ₦8,000

B. Debit Office Supplies ₦8,000, Credit Bank ₦8,000

C. Debit Bank ₦5,000, Credit Cash ₦5,000

Correct D. Debit Cash ₦10,000, Credit Bank ₦10,000

Correct Answer: D

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Question 9

A company's bank statement shows a balance of ₦20,000. The company's cash book shows a balance of ₦25,000. The bank statement also shows a debit of ₦5,000 for a NSF cheque. Calculate the company's cash balance.

Correct A. ₦20,000

B. ₦25,000

C. ₦30,000

D. ₦35,000

Correct Answer: A

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Question 10

A company's financial statements show the following: Total assets ₦100,000, Total liabilities ₦50,000, and Total equity ₦50,000. Calculate the company's return on equity.

Correct A. 50%

B. 60%

C. 70%

D. 80%

Correct Answer: A

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Question 11

A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.

Correct A. ₦950,000

B. ₦1,000,000

C. ₦1,050,000

D. ₦1,100,000

Correct Answer: A

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Question 12

A partnership of two partners, A and B, share profits and losses in the ratio 3:2. If the total profit for the year is ₦1,500,000, calculate the share of profit of partner A.

Correct A. ₦1,350,000

B. ₦1,200,000

C. ₦1,050,000

D. ₦900,000

Correct Answer: A

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Question 13

A company purchases a machine for ₦500,000 and depreciates it by 10% per annum using the straight-line method. Calculate the depreciation for the first year.

Correct A. ₦50,000

B. ₦45,000

C. ₦40,000

D. ₦35,000

Correct Answer: A

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Question 14

A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from share capital.

A. ₦150,000

B. ₦200,000

Correct C. ₦250,000

D. ₦300,000

Correct Answer: C

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Question 15

A company's trading account shows a profit of ₦1,200,000. The company's profit and loss account shows a net profit of ₦1,500,000. Calculate the company's net worth.

Correct A. ₦2,700,000

B. ₦2,500,000

C. ₦2,300,000

D. ₦2,100,000

Correct Answer: A

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Question 16

A company's trial balance shows a debit balance of ₦15,000 in the accounts receivable account. However, the company's balance sheet shows a credit balance of ₦20,000 in the same account. What is the correct journal entry to rectify this discrepancy?

A. ₦15,000 debit to accounts receivable and ₦20,000 credit to accounts receivable

Correct B. ₦15,000 credit to accounts receivable and ₦20,000 debit to accounts receivable

C. ₦35,000 debit to accounts receivable

D. ₦35,000 credit to accounts receivable

Correct Answer: B

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Question 17

A company issues 1,000 shares of ₦10 par value at a premium of ₦5 per share. What is the total amount received from the issue of these shares?

A. ₦10,000

Correct B. ₦15,000

C. ₦20,000

D. ₦25,000

Correct Answer: B

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Question 18

A company's balance sheet shows a current asset of ₦50,000 in the accounts receivable account. However, the company's trial balance shows a debit balance of ₦40,000 in the same account. What is the correct journal entry to rectify this discrepancy?

Correct A. ₦10,000 debit to accounts receivable

B. ₦10,000 credit to accounts receivable

C. ₦50,000 debit to accounts receivable

D. ₦50,000 credit to accounts receivable

Correct Answer: A

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Question 19

A company issues 500 shares of ₦20 par value at a premium of ₦10 per share. What is the total amount received from the issue of these shares?

A. ₦10,000

B. ₦15,000

Correct C. ₦20,000

D. ₦25,000

Correct Answer: C

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Question 20

A company's trial balance shows a debit balance of ₦30,000 in the accounts payable account. However, the company's balance sheet shows a credit balance of ₦20,000 in the same account. What is the correct journal entry to rectify this discrepancy?

Correct A. ₦10,000 debit to accounts payable

B. ₦10,000 credit to accounts payable

C. ₦30,000 debit to accounts payable

D. ₦30,000 credit to accounts payable

Correct Answer: A

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Question 21

A company uses the double-entry system to record its transactions. The following transactions were recorded during the month of January:

A. Debit Cash 1,000 and Credit Accounts Receivable 1,000

Correct B. Debit Accounts Receivable 1,000 and Credit Cash 1,000

C. Debit Cash 1,000 and Credit Accounts Payable 1,000

D. Debit Accounts Payable 1,000 and Credit Cash 1,000

Correct Answer: B

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Question 22

A company has the following ledger accounts:

Correct A. Debit Sales 10,000 and Credit Cost of Goods Sold 10,000

B. Debit Cost of Goods Sold 10,000 and Credit Sales 10,000

C. Debit Sales 10,000 and Credit Accounts Receivable 10,000

D. Debit Accounts Receivable 10,000 and Credit Sales 10,000

Correct Answer: A

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Question 23

A company has the following trial balance:

A. Debit Cash 10,000 and Credit Accounts Payable 10,000

Correct B. Debit Accounts Payable 10,000 and Credit Cash 10,000

C. Debit Sales 10,000 and Credit Cost of Goods Sold 10,000

D. Debit Cost of Goods Sold 10,000 and Credit Sales 10,000

Correct Answer: B

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Question 24

A company has the following public sector accounting transactions:

Correct A. Debit Revenue 10,000 and Credit Expenditure 10,000

B. Debit Expenditure 10,000 and Credit Revenue 10,000

C. Debit Assets 10,000 and Credit Liabilities 10,000

D. Debit Liabilities 10,000 and Credit Assets 10,000

Correct Answer: A

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Question 25

A company has the following final accounts:

A. Trading Profit 10,000 and Loss 10,000

Correct B. Trading Loss 10,000 and Profit 10,000

C. Profit 10,000 and Loss 10,000

D. Loss 10,000 and Profit 10,000

Correct Answer: B

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