POST UTME BOWEN UNIVERSITY 2025 Accounting | Objective

Are you preparing for POST UTME BOWEN UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 5,000. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital £ 10,000, Credit Cash £ 10,000
Correct B. Debit Share Capital £ 10,000, Credit Cash £ 10,500
C. Debit Share Capital £ 10,500, Credit Cash £ 10,000
D. Debit Share Capital £ 10,000, Credit Cash £ 15,000

Correct Answer: B

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Question 2
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦950,000
B. ₦975,000
Correct C. ₦1,000,000
D. ₦1,025,000

Correct Answer: C

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Question 3
A manufacturing company has the following production costs: Direct Materials ₦120,000, Direct Labour ₦80,000, and Overheads ₦60,000. Calculate the total production cost.
A. ₦260,000
B. ₦280,000
Correct C. ₦300,000
D. ₦320,000

Correct Answer: C

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Question 4
A company's cash book shows the following transactions: Cash received from customers ₦150,000, Cash paid to suppliers ₦80,000, Cash paid to employees ₦60,000, and Cash received from bank ₦20,000. Calculate the net increase in cash.
A. ₦30,000
B. ₦40,000
C. ₦50,000
Correct D. ₦60,000

Correct Answer: D

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Question 5
A company issues 10,000, 9% shares of ₦10 each at a premium of ₦2. Calculate the amount received from shareholders.
A. ₦120,000
B. ₦140,000
Correct C. ₦160,000
D. ₦180,000

Correct Answer: C

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Question 6
A company uses the single-entry system of accounting. The company's assets, liabilities, and equity at the beginning of the year were ₦100,000, ₦50,000, and ₦50,000, respectively. During the year, the company purchased equipment for ₦20,000 and sold goods for ₦30,000. The company's net income for the year is ₦
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 7
A company's trial balance as of December 31, 2024, is as follows:
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 8
A company's assets, liabilities, and equity at the beginning of the year were ₦100,000, ₦50,000, and ₦50,000, respectively. During the year, the company purchased equipment for ₦20,000 and sold goods for ₦30,000. The company's net income for the year is ₦
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 9
A company's trial balance as of December 31, 2024, is as follows:
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 10
A company uses the single-entry system of accounting. The company's assets, liabilities, and equity at the beginning of the year were ₦100,000, ₦50,000, and ₦50,000, respectively. During the year, the company purchased equipment for ₦20,000 and sold goods for ₦30,000. The company's net income for the year is ₦
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 11
A company uses the single-entry system of accounting. The following transactions were recorded in the month of January:
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 12
A company's trial balance as at 31st December, 2024 is as follows:
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 13
A company's cash book as at 31st December, 2024 is as follows:
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 14
A company's bank reconciliation statement as at 31st December, 2024 is as follows:
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 15
A company's final accounts as at 31st December, 2024 are as follows:
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 16
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from its tenants. What is the correct journal entry to correct this error?
A. Debit Rent Received ₦15,000, Credit Rent Received ₦15,000
B. Debit Rent Received ₦15,000, Credit Cash ₦15,000
Correct C. Debit Rent Received ₦15,000, Credit Profit or Loss on Adjustment ₦15,000
D. Debit Cash ₦15,000, Credit Rent Received ₦15,000

Correct Answer: C

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Question 17
A manufacturing company uses the process costing method to account for its production costs. The company's production costs for the month of January are as follows: Direct Materials ₦120,000, Direct Labour ₦150,000, Factory Overheads ₦180,000. If the company produced 10,000 units during the month, what is the cost per unit?
A. ₦15.00
Correct B. ₦18.00
C. ₦20.00
D. ₦22.00

Correct Answer: B

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Question 18
A company's balance sheet as at 31st December 2024 shows the following: Share Capital ₦500,000, Retained Earnings ₦200,000, Accumulated Depreciation ₦100,000. If the company's profit for the year was ₦150,000, what is the company's net worth?
A. ₦750,000
B. ₦800,000
Correct C. ₦850,000
D. ₦900,000

Correct Answer: C

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Question 19
A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. If the company receives a cash payment of ₦50,000, what is the amount received from the sale of shares?
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 20
A company's assets are valued as follows: Land ₦200,000, Buildings ₦300,000, Machinery ₦400,000. If the company's assets are depreciated by 10% per annum, what is the value of the assets after 2 years?
A. ₦1,120,000
B. ₦1,200,000
Correct C. ₦1,280,000
D. ₦1,360,000

Correct Answer: C

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Question 21
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, valued at ₦150 each. During the year, 300 units were sold, and 200 units were purchased at ₦200 each. If the company uses the weighted average method to value its inventory, what is the total value of inventory on December 31, 2024?
A. ₦75,000
B. ₦80,000
Correct C. ₦85,000
D. ₦90,000

Correct Answer: C

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Question 22
A partnership is formed between three individuals, A, B, and C, who contribute ₦100,000, ₦150,000, and ₦200,000 respectively. The partnership agreement states that the profits and losses will be shared in the ratio 2:3:4. If the partnership earns a profit of ₦50,000, how much will A receive?
A. ₦20,000
Correct B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: B

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Question 23
A company uses the job order costing system. On January 1, 2024, it had a work-in-progress inventory of ₦50,000. During the year, it incurred direct materials costs of ₦100,000 and direct labor costs of ₦150,000. If the company uses the absorption costing method, what is the total cost of goods manufactured for the year?
A. ₦300,000
B. ₦350,000
Correct C. ₦400,000
D. ₦450,000

Correct Answer: C

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Question 24
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, valued at ₦150 each. During the year, 300 units were sold, and 200 units were purchased at ₦200 each. If the company uses the FIFO method to value its inventory, what is the total value of inventory on December 31, 2024?
A. ₦75,000
B. ₦80,000
C. ₦85,000
Correct D. ₦90,000

Correct Answer: D

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Question 25
A company uses the job order costing system. On January 1, 2024, it had a work-in-progress inventory of ₦50,000. During the year, it incurred direct materials costs of ₦100,000 and direct labor costs of ₦150,000. If the company uses the variable costing method, what is the total cost of goods manufactured for the year?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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