POST UTME BOWEN UNIVERSITY 2019 Accounting | Objective

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Question 1
A company uses the double-entry system to record its transactions. The company's trial balance shows a debit balance of ₦1,500 in the account 'Office Equipment' and a credit balance of ₦1,200 in the account 'Office Supplies'. What is the correct journal entry to record the adjustment for the difference between the two accounts?
Correct A. ₦300 debit to Office Equipment and ₦300 credit to Office Supplies
B. ₦300 debit to Office Supplies and ₦300 credit to Office Equipment
C. ₦300 debit to Office Equipment and ₦300 credit to Cash
D. ₦300 debit to Office Supplies and ₦300 credit to Cash

Correct Answer: A

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Question 2
A company uses the single-entry system to record its transactions. The company's ledger shows a debit balance of ₦2,000 in the account 'Rent Expense' and a credit balance of ₦1,500 in the account 'Cash'. What is the correct journal entry to record the adjustment for the difference between the two accounts?
Correct A. ₦500 debit to Rent Expense and ₦500 credit to Cash
B. ₦500 debit to Cash and ₦500 credit to Rent Expense
C. ₦500 debit to Rent Expense and ₦500 credit to Accounts Payable
D. ₦500 debit to Cash and ₦500 credit to Accounts Payable

Correct Answer: A

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Question 3
A company uses the double-entry system to record its transactions. The company's trial balance shows a debit balance of ₦3,000 in the account 'Depreciation Expense' and a credit balance of ₦2,500 in the account 'Accumulated Depreciation'. What is the correct journal entry to record the adjustment for the difference between the two accounts?
Correct A. ₦500 debit to Depreciation Expense and ₦500 credit to Accumulated Depreciation
B. ₦500 debit to Accumulated Depreciation and ₦500 credit to Depreciation Expense
C. ₦500 debit to Depreciation Expense and ₦500 credit to Cash
D. ₦500 debit to Accumulated Depreciation and ₦500 credit to Cash

Correct Answer: A

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Question 4
A company uses the single-entry system to record its transactions. The company's ledger shows a debit balance of ₦4,000 in the account 'Salaries Expense' and a credit balance of ₦3,000 in the account 'Cash'. What is the correct journal entry to record the adjustment for the difference between the two accounts?
Correct A. ₦1,000 debit to Salaries Expense and ₦1,000 credit to Cash
B. ₦1,000 debit to Cash and ₦1,000 credit to Salaries Expense
C. ₦1,000 debit to Salaries Expense and ₦1,000 credit to Accounts Payable
D. ₦1,000 debit to Cash and ₦1,000 credit to Accounts Payable

Correct Answer: A

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Question 5
A company uses the double-entry system to record its transactions. The company's trial balance shows a debit balance of ₦5,000 in the account 'Office Equipment' and a credit balance of ₦4,000 in the account 'Office Supplies'. What is the correct journal entry to record the adjustment for the difference between the two accounts?
Correct A. ₦1,000 debit to Office Equipment and ₦1,000 credit to Office Supplies
B. ₦1,000 debit to Office Supplies and ₦1,000 credit to Office Equipment
C. ₦1,000 debit to Office Equipment and ₦1,000 credit to Cash
D. ₦1,000 debit to Office Supplies and ₦1,000 credit to Cash

Correct Answer: A

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Question 6
A company uses the single entry system of accounting. The following transactions were recorded during the year:
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 7
A manufacturing company produces two products, X and Y. The selling price of X is ₦100 per unit, and the selling price of Y is ₦120 per unit. The company sells 500 units of X and 300 units of Y. Calculate the total revenue.
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 8
A partnership is formed between two individuals, 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. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 9
A company prepares its final accounts for the year ended 31st December 2022. The trading account shows a profit of ₦150,000. The company's capital at the beginning of the year was ₦200,000, and the drawings during the year were ₦20,000. Calculate the capital at the end of the year.
A. ₦220,000
B. ₦230,000
Correct C. ₦240,000
D. ₦250,000

Correct Answer: C

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Question 10
A company's balance sheet as at 31st December 2022 is as follows:
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 11
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. They share profits and losses in the ratio 3:2. If the profit for the year is ₦250,000, how much will A receive?
Correct A. ₦225,000
B. ₦175,000
C. ₦225,000
D. ₦175,000

Correct Answer: A

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Question 12
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. The company pays interest annually. If the debentures are redeemed after 5 years, what is the total amount paid to the debenture holders?
A. ₦1,500,000
B. ₦1,600,000
Correct C. ₦1,500,000
D. ₦1,600,000

Correct Answer: C

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Question 13
A company has the following ledger balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦30,000. What is the total equity of the company?
A. ₦180,000
Correct B. ₦180,000
C. ₦180,000
D. ₦180,000

Correct Answer: B

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Question 14
A company has the following transactions: Purchased office supplies for ₦10,000, Sold goods for ₦50,000, Purchased equipment for ₦20,000. What is the net effect on the company's assets?
A. ₦60,000
B. ₦40,000
Correct C. ₦60,000
D. ₦40,000

Correct Answer: C

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Question 15
A company has the following financial statements: Balance Sheet ₦100,000, Income Statement ₦50,000. What is the total equity of the company?
A. ₦150,000
Correct B. ₦150,000
C. ₦150,000
D. ₦150,000

Correct Answer: B

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Question 16
A company has two types of shares: ordinary and preference. The ordinary shares have a par value of ₦10 each and a market value of ₦20 each. The preference shares have a par value of ₦5 each and a market value of ₦15 each. If the company has 100 ordinary shares and 50 preference shares, what is the total value of the shares?
A. ₦2500
Correct B. ₦3000
C. ₦3500
D. ₦4000

Correct Answer: B

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Question 17
A company has a cash book that shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | ₦1000 | | | 1/2 | Sales | | ₦2000 | | 1/3 | Purchases | ₦500 | | | 1/4 | Cash | | ₦1500 | What is the balance in the cash account?
A. ₦500
B. ₦1000
Correct C. ₦1500
D. ₦2000

Correct Answer: C

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Question 18
A company has a manufacturing account that shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Raw Materials | ₦1000 | | | 1/2 | Labour | ₦500 | | | 1/3 | Work-in-Progress | | ₦1500 | | 1/4 | Finished Goods | | ₦2000 | What is the cost of goods sold?
A. ₦1000
Correct B. ₦1500
C. ₦2000
D. ₦2500

Correct Answer: B

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Question 19
A company has a departmental account that shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Sales | ₦1000 | | | 1/2 | Purchases | | ₦500 | | 1/3 | Wages | ₦200 | | | 1/4 | Rent | | ₦300 | What is the net profit of the department?
A. ₦200
B. ₦300
C. ₦400
Correct D. ₦500

Correct Answer: D

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Question 20
A company has a ledger account that shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | ₦1000 | | | 1/2 | Sales | | ₦2000 | | 1/3 | Purchases | ₦500 | | | 1/4 | Cash | | ₦1500 | What is the balance in the cash account?
A. ₦500
B. ₦1000
Correct C. ₦1500
D. ₦2000

Correct Answer: C

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Question 21
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that profits and losses will be shared in the ratio 3:2. If the partnership makes a profit of ₦150,000, how much will A receive?
Correct A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦200,000

Correct Answer: A

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Question 22
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦12,000,000, how much of the amount will be credited to the share capital account?
Correct A. ₦10,000,000
B. ₦12,000,000
C. ₦11,000,000
D. ₦9,000,000

Correct Answer: A

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Question 23
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 | What is the balance in the cash account?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 24
A company issues 1,000 debentures of ₦100 each at a premium of ₦10 per debenture. If the company receives a total of ₦120,000,000, how much of the amount will be credited to the debenture account?
Correct A. ₦100,000,000
B. ₦120,000,000
C. ₦110,000,000
D. ₦90,000,000

Correct Answer: A

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Question 25
A company's balance sheet shows the following: | Assets | ₦50,000,000 | | Liabilities | ₦30,000,000 | | Share Capital | ₦20,000,000 | What is the company's net worth?
Correct A. ₦20,000,000
B. ₦30,000,000
C. ₦40,000,000
D. ₦50,000,000

Correct Answer: A

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