POST UTME BELLS UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as at 31st December 2022 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦200,000; Accumulated Depreciation: ₦50,000. Calculate the net worth of the company.
A. ₦650,000
B. ₦700,000
C. ₦750,000
D. ₦800,000
Question 2
A company's balance sheet as at 31st December 2022 is as follows: Share Capital: ₦500,000; Retained Earnings: ₦200,000; Accumulated Depreciation: ₦50,000. Calculate the net worth of the company.
A. ₦650,000
B. ₦700,000
C. ₦750,000
D. ₦800,000
Question 3
A partnership between John and Mary has a capital account balance of ₦50,000. John's capital account balance is ₦30,000, and Mary's capital account balance is ₦20,000. What is the correct journal entry to record the distribution of the partnership's profit?
A. Debit John's Capital A/c ₦10,000, Credit Mary's Capital A/c ₦10,000
B. Debit Profit and Loss A/c ₦10,000, Credit John's Capital A/c ₦5,000, Credit Mary's Capital A/c ₦5,000
C. Debit John's Capital A/c ₦5,000, Credit Mary's Capital A/c ₦5,000
D. Debit Profit and Loss A/c ₦10,000, Credit John's Capital A/c ₦10,000
Question 4
A company's trading account for the year ended 31st December, 2022, showed the following balances: Sales: ₦500,000; Cost of Goods Sold: ₦300,000. Calculate the gross profit for the year.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 5
A company produces two products, X and Y, using two machines, M1 and M2. The production process for X requires 2 hours on M1 and 3 hours on M2, while the production process for Y requires 3 hours on M1 and 2 hours on M2. If the company operates for 24 hours, and each machine operates for 12 hours, how many units of X and Y should the company produce to maximize profit?
A. X = 6, Y = 4
B. X = 4, Y = 6
C. X = 8, Y = 2
D. X = 2, Y = 8
Question 6
A manufacturing company has the following departmental expenses: Direct Labour: ₦120,000; Direct Materials: ₦150,000; Factory Overheads: ₦80,000. Calculate the total departmental expenses.
A. ₦350,000
B. ₦380,000
C. ₦410,000
D. ₦440,000
Question 7
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' while the corresponding credit balance in the 'Rent Paid' account is ₦20,000. What is the correct journal entry to rectify this error?
A. ₦15,000 debit to Rent Paid and ₦20,000 credit to Rent Received
B. ₦15,000 credit to Rent Paid and ₦20,000 debit to Rent Received
C. ₦15,000 debit to Rent Paid and ₦20,000 debit to Rent Received
D. ₦15,000 credit to Rent Paid and ₦20,000 credit to Rent Received
Question 8
A company issued 10,000 shares of 1 par value at a premium of 3 per share. Calculate the total amount received from the issue of shares.
A. ₦30,000,000
B. ₦40,000,000
C. ₦50,000,000
D. ₦60,000,000
Question 9
A company's income statement shows the following balances: Sales Revenue ₦100,000; Cost of Goods Sold ₦50,000. What is the net effect of these transactions on the company's financial position?
A. Increase in assets
B. Decrease in assets
C. Increase in liabilities
D. Decrease in liabilities
Question 10
A company issues 10,000, 9% debentures of ₦100 each at a premium of 10%. Calculate the total premium received.
A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000
Question 11
A company's trading account shows a profit of ₦100,000. The company's profit and loss account shows a net profit of ₦120,000. What is the correct journal entry to record the transfer of the trading account profit to the profit and loss account?
A. Debit Trading A/c ₦100,000, Credit Profit and Loss A/c ₦100,000
B. Debit Profit and Loss A/c ₦120,000, Credit Trading A/c ₦100,000
C. Debit Trading A/c ₦100,000, Credit Profit and Loss A/c ₦120,000
D. Debit Profit and Loss A/c ₦100,000, Credit Trading A/c ₦120,000
Question 12
A partnership has two partners, A and B. A invests ₦50,000 and B invests ₦30,000. The profit is divided in the ratio 3:2. Calculate the share of profit of A.
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 13
A company's ledger accounts are prepared using the double-entry system. Which of the following accounts would be credited when a company purchases office supplies on credit?
A. Office Supplies Expense
B. Office Supplies Account
C. Cash Account
D. Accounts Payable
Question 14
A government agency has the following transactions in its cash book: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash received from taxpayers | 100,000 | 0 | | 1/2 | Cash paid to suppliers | 0 | 50,000 | | 1/3 | Cash received from taxpayers | 80,000 | 0 | | 1/4 | Cash paid to employees | 0 | 30,000 | What is the balance of the cash account at the end of January?
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 15
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦1,000,000; Liabilities: ₦800,000. Calculate the company's net worth.
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

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