POST UTME BELLS UNIVERSITY 2018 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's balance sheet as at 31st December 2022 shows the following: Equity Share Capital ₦1,000,000, Retained Earnings ₦500,000, and Accumulated Depreciation ₦200,000. If the company's net assets are ₦1,400,000, what is the value of its goodwill?
Question 2
A company purchased a machine for ₦40,000 and sold it for ₦50,000. The profit on the sale of the machine is credited to the profit and loss account. Prepare the machine account.
Question 3
A company's balance sheet as at 31 Dec is as follows:
| Assets | ₦ | Liabilities | ₦ |
| --- | --- | --- | --- |
| Cash | 50,000 | Bank Loan | 100,000 |
| Debtors | 150,000 | Share Capital | 200,000 |
| Stock | 100,000 | Retained Earnings | 50,000 |
| Total | 300,000 | Total | 450,000 |
What is the ratio of debtors to stock?
Question 4
A company's cash book shows the following transactions:
| Date | Particulars | Debit | Credit |
| --- | --- | --- | --- |
| 1 Jan | Cash | ₦10,000 | |
| 2 Jan | Bank | | ₦15,000 |
| 3 Jan | Cash | | ₦20,000 |
| 4 Jan | Bank | ₦25,000 | |
| 5 Jan | Cash | | ₦30,000 |
What is the balance in the cash book on 5 Jan?
Question 5
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance sheet as at 31st December 2022 shows a decrease in inventory of ₦200,000 and an increase in accounts payable of ₦300,000. Calculate the company's net profit for the year.
Question 6
A company's profit and loss account for the year ended 31 Dec is as follows:
| Particulars | ₦ |
| --- | --- |
| Sales | 500,000 |
| Cost of Goods Sold | 300,000 |
| Gross Profit | 200,000 |
| Operating Expenses | 100,000 |
| Net Profit | 100,000 |
What is the gross profit percentage?
Question 7
A company's assets are valued at ₦500,000. If the company's liabilities are ₦200,000, calculate the amount of shareholders' equity.
Question 8
A manufacturing company has the following data for the year ended December 31, 2018: Cost of Goods Sold ₦1,500,000; Gross Profit ₦800,000; Operating Expenses ₦400,000; Net Profit ₦300,000. Prepare the Trading and Profit and Loss Account for the year.
Question 9
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 will be distributed to partner A.
Question 10
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance sheet as at 31st December 2022 shows a decrease in inventory of ₦200,000 and an increase in accounts payable of ₦300,000. If the company's net assets are ₦1,400,000, what is the value of its retained earnings?
Question 11
A company uses the straight-line method to depreciate its assets. The asset was purchased on January 1, 2018, for ₦120,000 and has a useful life of 5 years. Calculate the annual depreciation for the year ended December 31, 2018.
Question 12
A partnership is formed between two individuals, A and B, with a capital of ₦1,000,000. The profit-sharing ratio is 3:2. If the profit for the year is ₦500,000, calculate the amount of profit that will be distributed to A.
Question 13
A partnership has two partners, A and B, who share profits in the ratio 5:3. If the total profit for the year is ₦150,000, calculate the amount of profit that will be distributed to partner A.
Question 14
A company uses the cash book to record its transactions. The cash book shows a balance of ₦50,000 on December 31st. However, the bank statement shows a balance of ₦60,000 on the same date. What is the reason for the difference?
Question 15
A company purchased a machine for ₦50,000 and sold it for ₦60,000. The profit on the sale of the machine is credited to the profit and loss account. Prepare the machine account.
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