POST UTME BSU 2020 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 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 ordinary shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦200,000
Correct D. ₦500,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company has a capital of ₦1,000,000 divided into 200,000 ordinary shares of ₦5 each. If the company issues 20,000 shares at a premium of ₦2, calculate the new capital.
A. ₦1,200,000
Correct B. ₦1,400,000
C. ₦1,600,000
D. ₦2,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company issued 10,000 debentures of ₦100 each at a premium of ₦5. Calculate the total amount received from the issue of debentures.
A. ₦1,000,000
Correct B. ₦1,050,000
C. ₦1,100,000
D. ₦1,500,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company has a capital of ₦500,000 divided into 100,000 ordinary shares of ₦5 each. If the company issues 10,000 shares at a premium of ₦2, calculate the new capital.
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦1,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company issued 5,000 debentures of ₦200 each at a premium of ₦10. Calculate the total amount received from the issue of debentures.
A. ₦1,000,000
Correct B. ₦1,050,000
C. ₦1,100,000
D. ₦1,500,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company issued 10,000 shares of ₹10 each at a premium of ₹5 per share. The company also issued 5% debentures of ₹100 each. The debentures are redeemable at a premium of 5% after 5 years. Calculate the total amount of share capital and debenture capital.
A. ₹1,50,000
B. ₹1,75,000
Correct C. ₹2,00,000
D. ₹2,50,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A trader maintains a cash book and a sales day book. The cash book shows a balance of ₹50,000. The sales day book shows a balance of ₹75,000. The cash book also shows a debit balance of ₹25,000. What is the correct balance of the sales day book?
A. ₹75,000
Correct B. ₹80,000
C. ₹85,000
D. ₹90,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company's trial balance shows the following balances: Accounts Payable ₹50,000, Sales ₹1,50,000, Cost of Goods Sold ₹75,000, and Common Stock ₹1,00,000. What is the correct balance of the company's retained earnings?
A. ₹25,000
B. ₹50,000
C. ₹75,000
Correct D. ₹1,00,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's bank reconciliation statement shows a difference of ₹5,000 between the company's cash book balance and the bank statement balance. The company's cash book balance is ₹50,000. What is the correct bank statement balance?
Correct A. ₹55,000
B. ₹50,000
C. ₹45,000
D. ₹40,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's control account shows a balance of ₹50,000. The company's ledger account shows a balance of ₹75,000. What is the correct balance of the company's control account?
A. ₹50,000
Correct B. ₹75,000
C. ₹80,000
D. ₹90,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
In a partnership account, the capital of one partner is withdrawn and replaced by a loan from another partner. The loan is repayable on demand. What is the effect on the partnership's balance sheet?
Correct A. Increase in loan account and decrease in capital account
B. Increase in capital account and decrease in loan account
C. No effect on the balance sheet
D. Decrease in loan account and increase in capital account

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company uses the weighted average method to value its inventory. The following data is available: Cost of goods available for sale: ₦1,500,000; Net realizable value of ending inventory: ₦1,200,000. What is the cost of goods sold?
Correct A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,100,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company has the following transactions: Purchased goods for ₦100,000; Sold goods for ₦150,000; Purchased office supplies for ₦20,000. What is the total cost of goods sold?
A. ₦120,000
Correct B. ₦140,000
C. ₦160,000
D. ₦180,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company has the following transactions: Purchased goods for ₦100,000; Sold goods for ₦150,000; Purchased office supplies for ₦20,000. What is the total revenue?
Correct A. ₦170,000
B. ₦180,000
C. ₦190,000
D. ₦200,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company has the following transactions: Purchased goods for ₦100,000; Sold goods for ₦150,000; Purchased office supplies for ₦20,000. What is the total expense?
A. ₦120,000
Correct B. ₦140,000
C. ₦160,000
D. ₦180,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
Correct B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A partnership has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦120,000, calculate the amount of profit that will be distributed to partner A.
Correct A. ₦90,000
B. ₦80,000
C. ₦70,000
D. ₦60,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company purchases a machine for ₦500,000 and sells it after 5 years for ₦750,000. Calculate the annual depreciation of the machine using the straight-line method.
A. ₦20,000
B. ₦25,000
Correct C. ₦30,000
D. ₦35,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company has a capital of ₦1,000,000 and a reserve of ₦200,000. If it issues 10,000 shares of ₦10 each at a premium of ₦5 per share, calculate the amount received from the issue of shares.
A. ₦150,000
B. ₦175,000
C. ₦200,000
Correct D. ₦225,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company has a profit of ₦500,000 and a tax rate of 25%. Calculate the amount of tax payable.
A. ₦125,000
Correct B. ₦150,000
C. ₦175,000
D. ₦200,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company's trial balance shows an error of £ 1,500 in the debit side of the Trading Account. The error is due to an incorrect posting of £ 1,500 from the Purchases Account to the Trading Account. Prepare the necessary journal entry to correct the error.
A. Debit Purchases Account £ 1,500, Credit Trading Account £ 1,500
Correct B. Debit Trading Account £ 1,500, Credit Purchases Account £ 1,500
C. Debit Purchases Account £ 1,500, Credit Cash £ 1,500
D. Debit Trading Account £ 1,500, Credit Purchases Account £ 1,500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company's Balance Sheet shows an error of £ 2,000 in the debit side of the Capital Account. The error is due to an incorrect posting of £ 2,000 from the Bank Account to the Capital Account. Prepare the necessary journal entry to correct the error.
A. Debit Capital Account £ 2,000, Credit Bank Account £ 2,000
Correct B. Debit Bank Account £ 2,000, Credit Capital Account £ 2,000
C. Debit Capital Account £ 2,000, Credit Purchases Account £ 2,000
D. Debit Bank Account £ 2,000, Credit Capital Account £ 2,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company's Trial Balance shows an error of £ 1,000 in the debit side of the Sales Account. The error is due to an incorrect posting of £ 1,000 from the Sales Account to the Purchases Account. Prepare the necessary journal entry to correct the error.
A. Debit Sales Account £ 1,000, Credit Purchases Account £ 1,000
Correct B. Debit Purchases Account £ 1,000, Credit Sales Account £ 1,000
C. Debit Sales Account £ 1,000, Credit Bank Account £ 1,000
D. Debit Purchases Account £ 1,000, Credit Sales Account £ 1,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company's Balance Sheet shows an error of £ 3,000 in the debit side of the Bank Account. The error is due to an incorrect posting of £ 3,000 from the Bank Account to the Purchases Account. Prepare the necessary journal entry to correct the error.
A. Debit Bank Account £ 3,000, Credit Purchases Account £ 3,000
Correct B. Debit Purchases Account £ 3,000, Credit Bank Account £ 3,000
C. Debit Bank Account £ 3,000, Credit Sales Account £ 3,000
D. Debit Purchases Account £ 3,000, Credit Bank Account £ 3,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company's Trial Balance shows an error of £ 2,500 in the debit side of the Purchases Account. The error is due to an incorrect posting of £ 2,500 from the Purchases Account to the Sales Account. Prepare the necessary journal entry to correct the error.
A. Debit Purchases Account £ 2,500, Credit Sales Account £ 2,500
Correct B. Debit Sales Account £ 2,500, Credit Purchases Account £ 2,500
C. Debit Purchases Account £ 2,500, Credit Bank Account £ 2,500
D. Debit Sales Account £ 2,500, Credit Purchases Account £ 2,500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support