POST UTME BABCOCK UNIVERSITY 2020 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company purchases a machine for ₦800,000 and depreciates it by 15% per annum. Calculate the book value of the machine after 2 years.
Question 2
A company issues 10% debentures of ₦100 each at a premium of 10%. If the company receives a sum of ₦1,000,000 from the debenture holders, calculate the amount of premium received.
Question 3
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦120,000, calculate the amount of profit that partner A will receive.
Question 4
A company issued 5,000 ordinary shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
Question 5
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 3 years.
Question 6
A company's trial balance shows the following balances: Cash ₦50,000, Accounts Payable ₦30,000, and Common Stock ₦100,000. If the company's total assets are ₦200,000, calculate the amount of total liabilities.
Question 7
In a self-balancing ledger, the control account is the account that is used to record the total of all the subsidiary accounts. What is the purpose of the control account in a self-balancing ledger?
Question 8
A company's income statement shows the following information: Sales ₦500,000, Cost of Goods Sold ₦300,000, and Gross Profit ₦200,000. If the company's operating expenses are ₦100,000, calculate the net income.
Question 9
A company's balance sheet as at 31st December 2020 showed a total assets of ₦2,500,000. The company's liabilities as at 31st December 2020 showed a total of ₦1,500,000. Calculate the company's net worth.
Question 10
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of discount on the debentures.
Question 11
A public sector organization has the following transactions for the month of January: Salaries ₦150,000; Rent ₦30,000; Utilities ₦20,000; Travel ₦10,000; Miscellaneous ₦5,000. Prepare a statement of cash flows for the month of January.
Question 12
A company has the following transactions: Purchase of goods ₦1,000,000, Sale of goods ₦1,500,000, Purchase of equipment ₦200,000. Prepare the cash book for the company.
Question 13
A partnership between John and Mary has a capital of ₦200,000. Their profit-sharing ratio is 3:2. If the profit for the year is ₦120,000, calculate the amount of profit that should be distributed to John.
Question 14
A company has a trial balance that shows a discrepancy of ₦10,000. What is the purpose of the trial balance?
Question 15
A company issues 5,000 debentures of ₦100 each at a discount of 5%. If the company receives a total of ₦450,000, calculate the amount received from the issue of debentures.
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