Practice Post UTME BSU accounting 2023 Past Questions

Question 1

A company's trading account for the year ended 31st December 2022 is as follows: Debit: Sundry Creditors: ₦120,000 Wages: ₦150,000 Rent: ₦80,000 Profit on Sale of Assets: ₦30,000 Credit: Sales: ₦1,200,000 Purchases: ₦900,000 Bank Charges: ₦20,000 Interest Received: ₦10,000 Calculate the company's net profit for the year.

A. ₦150,000

Correct B. ₦180,000

C. ₦200,000

D. ₦220,000

Correct Answer: B

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Question 2

A partnership agreement between two partners, A and B, states that profits and losses are to be shared in the ratio 3:2. The partnership's profit for the year ended 31st December 2022 is ₦240,000. Calculate A's share of the profit.

Correct A. ₦180,000

B. ₦200,000

C. ₦220,000

D. ₦240,000

Correct Answer: A

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Question 3

A company's cash book for the year ended 31st December 2022 is as follows: Date | Debit | Credit | Balance -----|--------|--------|-------- 01/01/2022 | ₦100,000 | ₦0 | ₦100,000 15/02/2022 | ₦50,000 | ₦0 | ₦150,000 28/03/2022 | ₦0 | ₦200,000 | ₦-50,000 Calculate the company's bank overdraft at 31st December 2022.

A. ₦50,000

B. ₦100,000

Correct C. ₦150,000

D. ₦200,000

Correct Answer: C

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Question 4

A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.

A. ₦150,000

B. ₦200,000

Correct C. ₦250,000

D. ₦300,000

Correct Answer: C

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Question 5

A company's balance sheet as at 31st December 2022 is as follows: Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Prepaid Rent: ₦20,000 Total Assets: ₦320,000 Liabilities: Creditors: ₦120,000 Bank Overdraft: ₦50,000 Total Liabilities: ₦170,000 Calculate the company's net worth.

A. ₦150,000

B. ₦170,000

Correct C. ₦190,000

D. ₦210,000

Correct Answer: C

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Question 6

A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦100,000 | ₦0 | | Accounts Payable | ₦0 | ₦50,000 | | Sales Revenue | ₦0 | ₦150,000 | | Cost of Goods Sold | ₦0 | ₦80,000 | | Net Income | ₦0 | ₦0 | | Total | ₦100,000 | ₦280,000 | What is the amount of the company's net income for the year ended 31st December 2022?

A. ₦70,000

Correct B. ₦30,000

C. ₦50,000

D. ₦0

Correct Answer: B

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Question 7

A company's trial balance as at 31st December 2022 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦120,000 | ₦0 | | Accounts Payable | ₦0 | ₦60,000 | | Sales Revenue | ₦0 | ₦180,000 | | Cost of Goods Sold | ₦0 | ₦100,000 | | Net Income | ₦0 | ₦0 | | Total | ₦120,000 | ₦340,000 | What is the amount of the company's net income for the year ended 31st December 2022?

A. ₦60,000

Correct B. ₦40,000

C. ₦80,000

D. ₦0

Correct Answer: B

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Question 8

A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦150,000 | ₦0 | | Accounts Payable | ₦0 | ₦70,000 | | Sales Revenue | ₦0 | ₦210,000 | | Cost of Goods Sold | ₦0 | ₦120,000 | | Net Income | ₦0 | ₦0 | | Total | ₦150,000 | ₦400,000 | What is the amount of the company's net income for the year ended 31st December 2022?

A. ₦70,000

Correct B. ₦30,000

C. ₦50,000

D. ₦0

Correct Answer: B

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Question 9

A company's trial balance as at 31st December 2022 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦180,000 | ₦0 | | Accounts Payable | ₦0 | ₦80,000 | | Sales Revenue | ₦0 | ₦240,000 | | Cost of Goods Sold | ₦0 | ₦140,000 | | Net Income | ₦0 | ₦0 | | Total | ₦180,000 | ₦460,000 | What is the amount of the company's net income for the year ended 31st December 2022?

A. ₦80,000

Correct B. ₦40,000

C. ₦60,000

D. ₦0

Correct Answer: B

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Question 10

A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦200,000 | ₦0 | | Accounts Payable | ₦0 | ₦90,000 | | Sales Revenue | ₦0 | ₦270,000 | | Cost of Goods Sold | ₦0 | ₦160,000 | | Net Income | ₦0 | ₦0 | | Total | ₦200,000 | ₦510,000 | What is the amount of the company's net income for the year ended 31st December 2022?

A. ₦90,000

Correct B. ₦40,000

C. ₦50,000

D. ₦0

Correct Answer: B

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Question 11

A company uses the perpetual inventory system. At the end of the year, it discovers that the physical count of inventory is 10% less than the book value. What is the appropriate accounting treatment?

A. Write off the difference as a loss.

B. Adjust the inventory account to reflect the physical count.

C. Increase the cost of goods sold by the difference.

Correct D. Decrease the inventory account by the difference.

Correct Answer: D

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Question 12

A manufacturing company has the following data for the year ended December 31, 2022: Cost of Goods Sold = ₦1,500,000; Gross Profit = ₦750,000; Sales = ₦2,250,000. Calculate the Gross Profit Ratio.

A. 60%

Correct B. 50%

C. 40%

D. 30%

Correct Answer: B

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Question 13

A company has the following transactions: Purchased office supplies for ₦10,000; Paid salaries of ₦50,000; Purchased equipment for ₦200,000. What is the total amount of cash outflows?

Correct A. ₦260,000

B. ₦260,000

C. ₦260,000

D. ₦260,000

Correct Answer: A

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Question 14

A government agency has the following data: Total Revenue = ₦1,500,000; Total Expenditure = ₦1,200,000. What is the Budget Surplus?

Correct A. ₦300,000

B. ₦300,000

C. ₦300,000

D. ₦300,000

Correct Answer: A

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Question 15

A company has the following bank statement: Opening Balance = ₦50,000; Deposits = ₦150,000; Withdrawals = ₦100,000. What is the Closing Balance?

Correct A. ₦100,000

B. ₦100,000

C. ₦100,000

D. ₦100,000

Correct Answer: A

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Question 16

A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the carrying value of the debentures.

A. ₦950,000

B. ₦1,000,000

Correct C. ₦1,050,000

D. ₦1,100,000

Correct Answer: C

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Question 17

A partnership of two persons, A and B, has a capital of ₦200,000. A contributes ₦120,000 and B contributes ₦80,000. The profit-sharing ratio is 3:2. Calculate the profit-sharing ratio in terms of the capital contributed by each partner.

A. 3:1

Correct B. 3:2

C. 2:1

D. 1:2

Correct Answer: B

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Question 18

A company purchases a machine for ₦500,000 and depreciates it by 10% per annum using the straight-line method. Calculate the carrying value of the machine after 3 years.

A. ₦350,000

B. ₦360,000

Correct C. ₦370,000

D. ₦380,000

Correct Answer: C

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Question 19

A government agency receives a grant of ₦1,500,000 to construct a road. The agency incurs expenses of ₦1,200,000 and receives a refund of ₦300,000 from the contractor. Calculate the net expenditure on the road.

Correct A. ₦900,000

B. ₦1,000,000

C. ₦1,100,000

D. ₦1,200,000

Correct Answer: A

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Question 20

A company purchases a building for ₦2,000,000 and sells it after 5 years for ₦2,500,000. Calculate the gain on sale of the building.

A. ₦250,000

B. ₦500,000

Correct C. ₦750,000

D. ₦1,000,000

Correct Answer: C

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Question 21

A company issued 5,000, 10% debentures of ₦100 each. The debentures are redeemable at the end of 5 years. The company pays an annual interest of 5% on the debentures. Calculate the total interest paid by the company for the first 2 years.

A. ₦12,500

B. ₦25,000

Correct C. ₦37,500

D. ₦50,000

Correct Answer: C

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Question 22

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | | 4th Jan | Bank | | 300 | What is the balance of the cash book?

Correct A. ₦1,200

B. ₦1,500

C. ₦1,800

D. ₦2,000

Correct Answer: A

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Question 23

A government agency is responsible for the collection of taxes. The agency's income statement for the year ended 31st December 2022 is as follows: | Particulars | Amount | | --- | --- | | Revenue | 10,000,000 | | Expenditure | 8,000,000 | | Surplus | 2,000,000 | What is the percentage increase in the agency's revenue for the year?

A. 20%

Correct B. 25%

C. 30%

D. 35%

Correct Answer: B

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Question 24

A company's balance sheet as at 31st December 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 50,000 | | Bank | 20,000 | Share Capital | 100,000 | | Stock | 30,000 | Profit | 20,000 | What is the company's current ratio?

A. 1:1

Correct B. 1:2

C. 2:1

D. 3:1

Correct Answer: B

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Question 25

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | | 4th Jan | Bank | | 300 | What is the balance of the cash book?

Correct A. ₦1,200

B. ₦1,500

C. ₦1,800

D. ₦2,000

Correct Answer: A

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