POST UTME BSU 2019 Accounting | Objective

Are you preparing for POST UTME BSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's trial balance shows a debit balance of ₦50,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦60,000 in rent for the year. What is the correct journal entry to correct this error?
Correct A. ₦50,000 debit to 'Rent Expense' and ₦60,000 credit to 'Cash'
B. ₦50,000 credit to 'Rent Expense' and ₦60,000 debit to 'Cash'
C. ₦10,000 debit to 'Rent Expense' and ₦10,000 credit to 'Cash'
D. ₦60,000 debit to 'Rent Expense' and ₦50,000 credit to 'Cash'

Correct Answer: A

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Question 2
A company has the following ledger accounts: 'Sales Revenue' (₦100,000), 'Cost of Goods Sold' (₦80,000), and 'Gross Profit' (₦20,000). What is the correct formula for calculating the company's gross profit margin?
Correct A. (Gross Profit ÷ Sales Revenue) × 100%
B. (Cost of Goods Sold ÷ Sales Revenue) × 100%
C. (Gross Profit ÷ Cost of Goods Sold) × 100%
D. (Sales Revenue ÷ Cost of Goods Sold) × 100%

Correct Answer: A

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Question 3
A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank's statement balance. The company's accounting records show that it has deposited ₦10,000 into the bank but has not yet recorded it. What is the correct journal entry to correct this error?
Correct A. ₦10,000 debit to 'Cash' and ₦10,000 credit to 'Bank'
B. ₦5,000 debit to 'Cash' and ₦5,000 credit to 'Bank'
C. ₦10,000 credit to 'Cash' and ₦10,000 debit to 'Bank'
D. ₦5,000 credit to 'Cash' and ₦5,000 debit to 'Bank'

Correct Answer: A

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Question 4
A company has issued 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of these shares?
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 5
A company has the following ledger accounts: 'Debentures' (₦100,000), 'Interest on Debentures' (₦10,000), and 'Profit' (₦90,000). What is the correct formula for calculating the company's interest coverage ratio?
A. (Interest on Debentures ÷ Profit) × 100%
B. (Debentures ÷ Profit) × 100%
Correct C. (Profit ÷ Interest on Debentures) × 100%
D. (Interest on Debentures ÷ Debentures) × 100%

Correct Answer: C

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Question 6
In a public sector accounting system, what is the primary purpose of the 'General Ledger'?
Correct A. To record all financial transactions of the organization
B. To prepare the final accounts of the organization
C. To control and monitor the financial activities of the organization
D. To prepare the budget of the organization

Correct Answer: A

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Question 7
A company has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦120,000, how much will A receive?
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

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Question 8
A company's trading account for the year shows a profit of ₦150,000. The balance sheet shows a current liability of ₦80,000 and a non-current liability of ₦120,000. What is the company's net worth?
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 9
A company has a self-balancing ledger with the following accounts: Cash, Bank, and Accounts Payable. If the Cash account has a debit balance of ₦50,000 and the Bank account has a credit balance of ₦30,000, what is the balance in the Accounts Payable account?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 10
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the company's net worth?
A. ₦100,000
B. ₦150,000
C. ₦200,000
Correct D. ₦250,000

Correct Answer: D

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Question 11
A company issued 5,000, 10% preference shares of ₦10 each at a premium of ₦2. Calculate the total amount received from the issue of these shares.
A. ₦50,000
B. ₦100,000
C. ₦150,000
Correct D. ₦200,000

Correct Answer: D

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Question 12
A company's trial balance showed an error of ₦1,000 in the debit side of the cash account. The correct balance of the cash account is ₦20,000. Prepare the necessary journal entry to rectify the error.
A. Debit Cash ₦1,000, Credit Bank ₦1,000
Correct B. Debit Bank ₦1,000, Credit Cash ₦1,000
C. Debit Cash ₦1,000, Credit Profit and Loss Account ₦1,000
D. Credit Cash ₦1,000, Debit Profit and Loss Account ₦1,000

Correct Answer: B

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Question 13
A company's balance sheet showed an increase in the value of its assets from ₦500,000 to ₦750,000. The company also showed an increase in its liabilities from ₦200,000 to ₦350,000. Calculate the company's net worth.
A. ₦150,000
B. ₦200,000
C. ₦250,000
Correct D. ₦300,000

Correct Answer: D

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Question 14
A company issued 10,000, 7% debentures of ₦100 each at a premium of ₦10. Calculate the total amount received from the issue of these debentures.
A. ₦1,000,000
Correct B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: B

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Question 15
A company's trial balance showed an error of ₦500 in the credit side of the accounts receivable account. The correct balance of the accounts receivable account is ₦20,000. Prepare the necessary journal entry to rectify the error.
Correct A. Debit Accounts Receivable ₦500, Credit Profit and Loss Account ₦500
B. Debit Profit and Loss Account ₦500, Credit Accounts Receivable ₦500
C. Debit Bank ₦500, Credit Accounts Receivable ₦500
D. Credit Accounts Receivable ₦500, Debit Bank ₦500

Correct Answer: A

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Question 16
A company issues 10,000, 5% debentures of ₦100 each. Calculate the amount of interest payable annually.
A. ₦50,000
B. ₦50,000
C. ₦50,000
Correct D. ₦50,000

Correct Answer: D

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Question 17
A company has a capital of ₦1,000,000 divided into 10,000 shares of ₦100 each. If the company issues 5,000, 5% debentures of ₦100 each, what is the amount of interest payable annually?
A. ₦25,000
B. ₦25,000
C. ₦25,000
Correct D. ₦25,000

Correct Answer: D

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Question 18
A company has a capital of ₦1,000,000 divided into 10,000 shares of ₦100 each. If the company issues 5,000, 5% debentures of ₦100 each, what is the amount of interest payable annually?
A. ₦25,000
B. ₦25,000
C. ₦25,000
Correct D. ₦25,000

Correct Answer: D

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Question 19
A company has a capital of ₦1,000,000 divided into 10,000 shares of ₦100 each. If the company issues 5,000, 5% debentures of ₦100 each, what is the amount of interest payable annually?
A. ₦25,000
B. ₦25,000
C. ₦25,000
Correct D. ₦25,000

Correct Answer: D

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Question 20
A company has a capital of ₦1,000,000 divided into 10,000 shares of ₦100 each. If the company issues 5,000, 5% debentures of ₦100 each, what is the amount of interest payable annually?
A. ₦25,000
B. ₦25,000
C. ₦25,000
Correct D. ₦25,000

Correct Answer: D

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Question 21
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank error. The company's accountant has identified a deposit of ₦30,000 that was not recorded in the cash book. What is the correct balance in the cash book?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 22
A partnership is formed between two individuals, A and B, with a capital contribution of ₦100,000 each. After one year, the partnership makes a profit of ₦50,000. How much of the profit will each partner receive?
A. ₦25,000
Correct B. ₦50,000
C. ₦75,000
D. ₦100,000

Correct Answer: B

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Question 23
A company's trial balance shows a debit balance of ₦50,000 in the accounts payable account. However, the company's ledger shows a credit balance of ₦30,000 in the accounts payable account. What is the correct balance in the accounts payable account?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 24
A company uses the double-entry system of accounting. The company's ledger shows a debit balance of ₦100,000 in the accounts receivable account. However, the company's trial balance shows a credit balance of ₦80,000 in the accounts receivable account. What is the correct balance in the accounts receivable account?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 25
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank error. The company's accountant has identified a deposit of ₦30,000 that was not recorded in the cash book. What is the correct balance in the cash book?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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