POST UTME BABCOCK UNIVERSITY 2019 Accounting | Objective

Are you preparing for POST UTME BABCOCK UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit balance of ₦5,000 for an outstanding cheque. What is the correct journal entry to reconcile the two balances?
A. ₦120,000
B. ₦150,000
C. ₦5,000
Correct D. ₦25,000

Correct Answer: D

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Question 2
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a net income of ₦200,000, how much will partner A receive as their share of the net income?
Correct A. ₦120,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 3
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The company receives a total of ₦15,000. What is the amount received from the issue of shares?
A. ₦10,000
B. ₦12,000
Correct C. ₦15,000
D. ₦18,000

Correct Answer: C

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Question 4
A company has a cash book balance of ₦80,000 and a bank statement balance of ₦60,000. The bank statement shows a debit balance of ₦5,000 for an outstanding cheque. What is the correct journal entry to reconcile the two balances?
A. ₦80,000
B. ₦60,000
C. ₦5,000
Correct D. ₦30,000

Correct Answer: D

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Question 5
A company issues 500 shares of ₦20 each at a discount of ₦5 per share. The company receives a total of ₦8,000. What is the amount received from the issue of shares?
Correct A. ₦8,000
B. ₦9,000
C. ₦10,000
D. ₦11,000

Correct Answer: A

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Question 6
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the total premium received.
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 7
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 1,000 | | | 2 | Cash | | 500 | | 3 | Cash | | 1,500 | | 4 | Cash | 2,000 | | | 5 | Cash | | 1,000 | Calculate the cash balance.
A. ₦1,000
Correct B. ₦2,000
C. ₦3,000
D. ₦4,000

Correct Answer: B

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Question 8
A company's balance sheet as at 31st December 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 20,000 | | Stock | 30,000 | Bank Loan | 40,000 | | Debtors | 20,000 | Share Capital | 50,000 | | Creditors | 10,000 | | | | | | | | | | 70,000 | | 110,000 | Calculate the company's net worth.
A. ₦40,000
B. ₦50,000
C. ₦60,000
Correct D. ₦70,000

Correct Answer: D

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Question 9
A company's profit and loss account for the year ended 31st December 2022 is as follows: | Particulars | ₦ | | Particulars | ₦ | | --- | --- | --- | --- | --- | | Sales | 100,000 | | Cost of Goods Sold | 60,000 | | Gross Profit | 40,000 | | Operating Expenses | 20,000 | | Net Profit | 20,000 | | | | | | | | | | | | | | Calculate the company's net profit margin.
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

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Question 10
A company's balance sheet as at 31st December 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 20,000 | | Stock | 30,000 | Bank Loan | 40,000 | | Debtors | 20,000 | Share Capital | 50,000 | | Creditors | 10,000 | | | | | | | | | | 70,000 | | 110,000 | Calculate the company's current ratio.
A. 1.5
Correct B. 2.0
C. 2.5
D. 3.0

Correct Answer: B

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Question 11
A company's trial balance shows an error of ₦1,000 in the debit side of the cash account. The correct balance of the cash account is ₦1,500. What is the correct balance of the cash account after correcting the error?
Correct A. ₦1,500
B. ₦1,600
C. ₦1,700
D. ₦1,800

Correct Answer: A

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Question 12
A company's balance sheet shows an increase in the value of its assets from ₦1,000 to ₦1,500. What is the percentage increase in the value of its assets?
A. 10%
B. 15%
Correct C. 20%
D. 25%

Correct Answer: C

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Question 13
A company's profit and loss account shows a net profit of ₦1,000. The company's balance sheet shows an increase in the value of its assets from ₦1,000 to ₦1,500. What is the percentage increase in the value of its assets?
A. 10%
B. 15%
Correct C. 20%
D. 25%

Correct Answer: C

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Question 14
A company's trial balance shows an error of ₦1,000 in the debit side of the cash account. The correct balance of the cash account is ₦1,500. What is the correct balance of the cash account after correcting the error?
Correct A. ₦1,500
B. ₦1,600
C. ₦1,700
D. ₦1,800

Correct Answer: A

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Question 15
A company's balance sheet shows an increase in the value of its assets from ₦1,000 to ₦1,500. What is the percentage increase in the value of its assets?
A. 10%
B. 15%
Correct C. 20%
D. 25%

Correct Answer: C

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦475,000
Correct B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: B

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Question 17
A company's trial balance showed an error of ₦5,000 due to an omission. The company's net profit for the year was ₦200,000. Prepare the corrected trading and profit and loss account.
Correct A. Trading Account: ₦195,000; Profit and Loss Account: ₦195,000
B. Trading Account: ₦200,000; Profit and Loss Account: ₦200,000
C. Trading Account: ₦195,000; Profit and Loss Account: ₦205,000
D. Trading Account: ₦205,000; Profit and Loss Account: ₦205,000

Correct Answer: A

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Question 18
A company's balance sheet showed an increase in share capital of ₦50,000 and a decrease in reserves of ₦20,000. Calculate the increase in net worth.
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 19
A company's manufacturing account showed a direct material cost of ₦150,000 and a direct labor cost of ₦100,000. Calculate the prime cost.
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 20
A company's departmental accounts showed a cost of goods sold of ₦500,000 and a gross profit of ₦150,000. Calculate the gross profit percentage.
A. 30%
Correct B. 40%
C. 50%
D. 60%

Correct Answer: B

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Question 21
A company's accounting records show that the total value of its assets increased by ₦1,500,000 during the year. However, the company's profit after tax for the year was ₦800,000. What is the amount of the company's capital expenditure for the year?
A. ₦1,700,000
B. ₦1,300,000
Correct C. ₦1,500,000
D. ₦1,200,000

Correct Answer: C

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Question 22
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurred costs of ₦120,000 and the Assembly department incurred costs of ₦180,000. What is the total cost of production for the company?
Correct A. ₦300,000
B. ₦300,000
C. ₦300,000
D. ₦300,000

Correct Answer: A

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Question 23
A company issues 10,000 shares of ₦1 each at a premium of ₦0.50 per share. What is the total amount received from the issue of shares?
Correct A. ₦5,500
B. ₦5,000
C. ₦5,500
D. ₦5,000

Correct Answer: A

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Question 24
A company's accounting records show that the total value of its assets increased by ₦1,500,000 during the year. However, the company's profit after tax for the year was ₦800,000. What is the amount of the company's capital expenditure for the year?
A. ₦1,700,000
B. ₦1,300,000
Correct C. ₦1,500,000
D. ₦1,200,000

Correct Answer: C

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Question 25
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurred costs of ₦120,000 and the Assembly department incurred costs of ₦180,000. What is the total cost of production for the company?
Correct A. ₦300,000
B. ₦300,000
C. ₦300,000
D. ₦300,000

Correct Answer: A

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