POST UTME BABCOCK UNIVERSITY 2020 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 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
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.
Correct A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 2
A manufacturing company uses a job costing system. The following data are available for the month of January: Direct Materials: ₦120,000; Direct Labour: ₦80,000; Overheads: ₦60,000. Calculate the total cost of production for the month.
A. ₦260,000
B. ₦280,000
Correct C. ₦300,000
D. ₦320,000

Correct Answer: C

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Question 3
A company's trial balance as at 31st December, 2020 is as follows: Accounts Payable ₦120,000; Accounts Receivable ₦80,000; Common Stock ₦200,000; Dividends ₦20,000; Equipment ₦150,000; Interest Expense ₦10,000; Interest Income ₦5,000; Net Income ₦50,000; Prepaid Rent ₦30,000; Salaries Expense ₦40,000; Sales Revenue ₦500,000; Taxes Payable ₦25,000. Prepare a balance sheet as at 31st December, 2020.
A. ₦1,000,000
B. ₦1,100,000
Correct C. ₦1,200,000
D. ₦1,300,000

Correct Answer: C

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Question 4
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.
A. ₦215,000
B. ₦225,000
Correct C. ₦235,000
D. ₦245,000

Correct Answer: C

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Question 5
A company uses a departmental accounting system. The following data are available for the month of January: Department A: Direct Materials ₦80,000; Direct Labour ₦50,000; Overheads ₦30,000. Department B: Direct Materials ₦60,000; Direct Labour ₦40,000; Overheads ₦20,000. Calculate the total cost of production for the month.
A. ₦220,000
B. ₦240,000
Correct C. ₦260,000
D. ₦280,000

Correct Answer: C

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Question 6
A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received' while the corresponding credit balance in the account 'Rent Paid' is ₦1,200. What is the correct journal entry to rectify this error?
A. Debit Rent Paid ₦300, Credit Rent Received ₦300
Correct B. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Profit and Loss ₦300
C. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Credit Profit and Loss ₦300
D. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Rent Received ₦300

Correct Answer: B

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Question 7
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.
Correct A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

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Question 8
A government agency has the following transactions: Purchase of goods ₦1,500,000, Sale of goods ₦2,000,000, Purchase of equipment ₦500,000. Prepare the cash flow statement for the agency.
Correct A. ₦1,000,000 (outflow)
B. ₦500,000 (inflow)
C. ₦1,500,000 (outflow)
D. ₦2,000,000 (inflow)

Correct Answer: A

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Question 9
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.
Correct A. ₦1,000,000 (outflow)
B. ₦500,000 (inflow)
C. ₦1,500,000 (outflow)
D. ₦2,000,000 (inflow)

Correct Answer: A

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Question 10
A company has the following transactions: Purchase of goods ₦1,500,000, Sale of goods ₦2,000,000, Purchase of equipment ₦500,000. Prepare the bank reconciliation statement for the company.
Correct A. ₦1,000,000 (outflow)
B. ₦500,000 (inflow)
C. ₦1,500,000 (outflow)
D. ₦2,000,000 (inflow)

Correct Answer: A

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Question 11
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.
A. ₦60,000
Correct B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: B

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Question 12
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.
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 13
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.
A. ₦150,000
B. ₦160,000
Correct C. ₦170,000
D. ₦180,000

Correct Answer: C

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Question 14
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.
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 15
A company's balance sheet shows the following information: Cash ₦50,000, Accounts Payable ₦30,000, and Common Stock ₦100,000. If the company's total liabilities are ₦80,000, calculate the amount of total equity.
A. ₦120,000
B. ₦130,000
C. ₦140,000
Correct D. ₦150,000

Correct Answer: D

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Question 16
A company produces two products, X and Y, using two machines, A and B. Machine A is used for 6 hours a day to produce 120 units of X, while machine B is used for 4 hours a day to produce 80 units of Y. If the company operates for 20 days, calculate the total cost of production, given that the cost of operating machine A is ₦150 per hour and the cost of operating machine B is ₦200 per hour.
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 17
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦1,500,000, calculate the amount received from the issue of shares.
A. ₦1,200,000
Correct B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000

Correct Answer: B

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Question 18
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.
A. ₦300,000
B. ₦350,000
Correct C. ₦400,000
D. ₦450,000

Correct Answer: C

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Question 19
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.
A. ₦425,000
Correct B. ₦450,000
C. ₦475,000
D. ₦500,000

Correct Answer: B

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Question 20
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.
A. ₦560,000
B. ₦600,000
Correct C. ₦640,000
D. ₦680,000

Correct Answer: C

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Question 21
A company issued 10,000 9% debentures of ₦100 each. Calculate the amount of interest payable annually.
A. ₦90,000
Correct B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: B

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Question 22
A company's trading account for the year ended 31st December 2020 showed a profit of ₦500,000. The company's profit and loss account also showed a profit of ₦200,000. Calculate the company's net profit for the year.
Correct A. ₦700,000
B. ₦600,000
C. ₦500,000
D. ₦400,000

Correct Answer: A

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Question 23
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.
A. ₦250,000
B. ₦275,000
Correct C. ₦300,000
D. ₦325,000

Correct Answer: C

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Question 24
A company's balance sheet as at 31st December 2020 showed a total equity of ₦1,500,000. The company's profit and loss account for the year ended 31st December 2020 showed a profit of ₦200,000. Calculate the company's retained earnings.
Correct A. ₦1,700,000
B. ₦1,600,000
C. ₦1,500,000
D. ₦1,400,000

Correct Answer: A

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Question 25
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.
Correct A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

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