POST UTME BELLS UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has the following transactions: Purchase of equipment for ₦50,000, Sale of goods for ₦30,000, Purchase of goods for ₦20,000. Prepare the journal entries for these transactions.
A. Debit Equipment = ₦50,000, Credit Cash = ₦50,000; Debit Sales = ₦30,000, Credit Cash = ₦30,000; Debit Purchases = ₦20,000, Credit Cash = ₦20,000
B. Debit Equipment = ₦50,000, Credit Cash = ₦50,000; Debit Sales = ₦30,000, Credit Cash = ₦30,000; Debit Purchases = ₦20,000, Credit Cash = ₦20,000
C. Debit Equipment = ₦50,000, Credit Cash = ₦50,000; Debit Sales = ₦30,000, Credit Cash = ₦30,000; Debit Purchases = ₦20,000, Credit Cash = ₦20,000
D. Debit Equipment = ₦50,000, Credit Cash = ₦50,000; Debit Sales = ₦30,000, Credit Cash = ₦30,000; Debit Purchases = ₦20,000, Credit Cash = ₦20,000
Question 2
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦5,000, what is the annual depreciation charge if the asset's cost is ₦100,000?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦25,000
Question 3
A partnership agreement between two partners, John and David, states that the profit and loss of the business will be shared in the ratio 3:2. If the total profit for the year ended 31st December 2022 is ₦2,400,000, calculate the amount of profit that will be shared by John.
A. ₦2,160,000
B. ₦2,400,000
C. ₦2,640,000
D. ₦3,000,000
Question 4
A company's balance sheet as at 31/12/2021 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 20,000 | | Bank | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Profit & Loss | 10,000 | Calculate the company's net worth.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
In a partnership account, what is the formula for calculating the capital of a partner who has been absent for a year?
A. Capital = (Total Capital x Number of Years) / Number of Partners
B. Capital = (Total Capital x Number of Partners) / Number of Years
C. Capital = (Total Capital x Number of Years) / (Number of Partners + 1)
D. Capital = (Total Capital x Number of Partners) / (Number of Years + 1)
Question 6
A partnership between two individuals, John and Mary, has the following capital accounts: John's capital = ₦50,000, Mary's capital = ₦30,000. The partnership's profit for the year is ₦80,000. Prepare the capital accounts of John and Mary after the profit is shared in the ratio 2:1.
A. John's capital = ₦60,000, Mary's capital = ₦20,000
B. John's capital = ₦40,000, Mary's capital = ₦40,000
C. John's capital = ₦80,000, Mary's capital = ₦0
D. John's capital = ₦0, Mary's capital = ₦80,000
Question 7
A company's balance sheet at the beginning of the year shows a capital of ₦2,000,000 and drawings of ₦400,000. The balance sheet at the end of the year shows a capital of ₦2,800,000. If the company made a profit of ₦800,000, calculate the amount of profit transferred to the reserve account.
A. ₦400,000
B. ₦600,000
C. ₦800,000
D. ₦1,000,000
Question 8
A company's balance sheet shows a current liability of ₦40,000 in the 'Accounts Payable' account. However, the company's trial balance shows a debit balance of ₦20,000 in the 'Accounts Payable' account. What is the correct treatment for this discrepancy?
A. Debit the 'Accounts Payable' account by ₦40,000 and credit the 'Cash' account by ₦40,000.
B. Debit the 'Accounts Payable' account by ₦20,000 and credit the 'Cash' account by ₦20,000.
C. Debit the 'Accounts Payable' account by ₦40,000 and credit the 'Accounts Receivable' account by ₦40,000.
D. Debit the 'Accounts Payable' account by ₦20,000 and credit the 'Accounts Receivable' account by ₦20,000.
Question 9
A company's balance sheet as at 31/12/2021 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 20,000 | | Bank | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Profit & Loss | 10,000 | Calculate the company's total assets.
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 10
A partnership agreement between two partners, A and B, states that the profits and losses will be shared in the ratio 3:2. If the total profit for the year is ₦120,000, how much will partner A receive?
A. ₦90,000
B. ₦60,000
C. ₦80,000
D. ₦100,000
Question 11
A company issued 5,000 shares of ₦10 each at a premium of 50%. Calculate the amount received from the issue of shares.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 12
A company's trial balance shows the following accounts: Sales = ₦1,200,000, Cost of Goods Sold = ₦800,000, Rent Expense = ₦50,000, Salaries Expense = ₦150,000. Prepare the company's income statement for the year.
A. Sales = ₦1,200,000, Cost of Goods Sold = ₦800,000, Gross Profit = ₦400,000, Operating Expenses = ₦200,000, Net Income = ₦200,000
B. Sales = ₦1,200,000, Cost of Goods Sold = ₦800,000, Gross Profit = ₦400,000, Operating Expenses = ₦250,000, Net Income = ₦150,000
C. Sales = ₦1,200,000, Cost of Goods Sold = ₦800,000, Gross Profit = ₦400,000, Operating Expenses = ₦300,000, Net Income = ₦100,000
D. Sales = ₦1,200,000, Cost of Goods Sold = ₦800,000, Gross Profit = ₦400,000, Operating Expenses = ₦350,000, Net Income = ₦50,000
Question 13
A company has the following trial balance: Debit: 100,000, Credit: 120,000. What is the correct journal entry to rectify the discrepancy?
A. Debit: 20,000, Credit: 0
B. Debit: 0, Credit: 20,000
C. Debit: 20,000, Credit: 20,000
D. Debit: 0, Credit: 0
Question 14
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,500
B. ₦10,000
C. ₦9,500
D. ₦9,000
Question 15
A company's balance sheet showed an error of ₦10,000 in the credit side of the drawings account. What is the correct amount of the drawings account?
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000

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