POST UTME BELLS UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system to record its transactions. The company's ledger shows the following balances: Assets ₦100,000, Liabilities ₦50,000, and Equity ₦50,000. What is the company's net worth?
A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000
Question 2
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 5 Jan | Bank | | 8,000 | | 10 Jan | Cash | | 12,000 | | 15 Jan | Bank | | 5,000 | What is the balance in the cash account?
A. ₦2,000
B. ₦8,000
C. ₦12,000
D. ₦20,000
Question 3
A company uses the perpetual inventory system. On January 1, 2023, it had 1,000 units of a product in stock, costing ₦50 each. During the year, 500 units were sold, and 200 units were purchased at ₦60 each. The company uses the weighted average method to value inventory. What is the total cost of goods sold for the year?
A. ₦25,000
B. ₦30,000
C. ₦35,000
D. ₦40,000
Question 4
A company's balance sheet as of December 31, 2022, is as follows: Cash ₦100,000, Accounts Receivable ₦200,000, Inventory ₦300,000, Property, Plant, and Equipment ₦500,000, and Total Liabilities ₦800,000. Prepare a statement of stockholders' equity.
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 5
A company uses the straight-line method to depreciate its assets. The asset's cost is ₦100,000, and its useful life is 5 years. What is the annual depreciation?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
A company's bank statement shows a balance of ₦10,000, while the cash book shows a balance of ₦15,000. The bank statement also shows a debit of ₤10,000 for a cheque that has been dishonoured. What is the correct bank reconciliation statement?
A. Bank Overdraft ₤10,000, Cash in Hand ₤10,000
B. Bank Overdraft ₤10,000, Cash in Bank ₤10,000
C. Cash in Hand ₤10,000, Cash in Bank ₤10,000
D. Bank Overdraft ₤10,000, Bank Balance ₤10,000
Question 7
A partnership was formed on January 1, 2022, between two individuals, A and B, with a capital of ₦1,000,000. On March 1, 2022, A invested an additional ₦500,000, and on June 1, 2022, B withdrew ₦200,000. The profit-sharing ratio is 3:2. Calculate the total profit for the year, assuming a profit of ₦750,000.
A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000
Question 8
A company issues 1,000, 10% debentures of ₦10 each. The debentures are redeemable at par after 5 years. What is the annual amortisation of the debentures?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 9
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5% debentures of ₦ 10,000 at 5% discount. Prepare the journal entries to record the issue of shares and debentures.
A. Debit Share Capital ₦ 20,000, Credit Cash ₦ 20,000
B. Debit Share Capital ₦ 10,000, Credit Cash ₦ 10,000
C. Debit Share Capital ₦ 20,000, Credit Cash ₦ 10,000
D. Debit Share Capital ₦ 10,000, Credit Cash ₦ 20,000
Question 10
A company maintains the following cash book: Date | Particulars | Debit | Credit 31st Dec, 2022 | Cash | ₦ 50,000 | ₦ 20,000 31st Dec, 2022 | Bank | ₦ 20,000 | ₦ 50,000 31st Dec, 2022 | Debtors | ₦ 30,000 | ₦ 10,000 31st Dec, 2022 | Creditors | ₦ 10,000 | ₦ 30,000 Prepare the bank reconciliation statement.
A. Bank Balance ₦ 70,000, Cash Balance ₦ 20,000
B. Bank Balance ₦ 20,000, Cash Balance ₦ 70,000
C. Bank Balance ₦ 50,000, Cash Balance ₦ 20,000
D. Bank Balance ₦ 20,000, Cash Balance ₦ 50,000
Question 11
A company's bank statement shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 5 Jan | Bank | | 8,000 | | 10 Jan | Cash | | 12,000 | | 15 Jan | Bank | | 5,000 | What is the balance in the cash account?
A. ₦2,000
B. ₦8,000
C. ₦12,000
D. ₦20,000
Question 12
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 1 hour of indirect labor, while product B requires 3 hours of direct labor and 2 hours of indirect labor. If the company produces 100 units of product A and 50 units of product B, what is the total direct labor cost?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 13
A company uses the weighted average method to value its inventory. The following data is available: 100 units of item A at ₦20 each, 200 units of item B at ₦30 each, and 300 units of item C at ₦40 each. Calculate the total value of the inventory.
A. ₦14,000
B. ₦16,000
C. ₦18,000
D. ₦20,000
Question 14
A company uses the cash book to record its transactions. The cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the reason for the difference?
A. The company has a loan outstanding.
B. The company has a credit balance in its bank account.
C. The company has a debit balance in its bank account.
D. The company has a difference in exchange rates.
Question 15
A company has the following balance sheet: assets ₦500,000, liabilities ₦200,000, and equity ₦300,000. If the company issues 10,000 shares of ₦10 each at a premium of ₦5, calculate the amount received from share issue.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000

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