POST UTME BSU 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double entry system of accounting. The following transactions were recorded in the journal: Debit: Rent Paid ₦15,000, Credit: Rent Earned ₦15,000. What is the effect of this transaction on the company's trial balance?
A. ₦30,000
B. ₦60,000
C. ₦45,000
D. ₦90,000
Question 2
A company issued 5,000 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the annual charge for interest and the amount of the discount.
A. ₦45,000; ₦50,000
B. ₦40,000; ₦45,000
C. ₦50,000; ₦55,000
D. ₦45,000; ₦50,000
Question 3
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent' account. However, the company's accounting records indicate that the rent for the year was ₦20,000. What is the correct treatment for this discrepancy in the company's financial statements?
A. Debit the 'Rent' account by ₦5,000 and credit the 'Accrued Expenses' account by ₦5,000.
B. Debit the 'Accrued Expenses' account by ₦5,000 and credit the 'Rent' account by ₦5,000.
C. Debit the 'Rent' account by ₦5,000 and credit the 'Cash' account by ₦5,000.
D. Debit the 'Accrued Expenses' account by ₦20,000 and credit the 'Rent' account by ₦20,000.
Question 4
A company uses the double-entry system of accounting. The following transactions were recorded in the journal during the month of January:
A. Debit Cash 1,000 and Credit Accounts Payable 1,000
B. Debit Accounts Payable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Receivable 1,000
D. Debit Accounts Receivable 1,000 and Credit Cash 1,000
Question 5
A company has a cash book balance of ₦200,000. The bank statement shows a balance of ₦220,000. The difference is due to a discrepancy in the cash book. What is the reason for the discrepancy?
A. The cash book has not been updated to reflect the latest transactions.
B. The bank statement has not been updated to reflect the latest transactions.
C. There is a discrepancy in the cash book due to an error in recording a transaction.
D. The cash book has been reconciled with the bank statement, but there is a difference in the balances.
Question 6
A company's bank reconciliation statement as of December 31, 2023, showed the following balances:
A. 10,000
B. 5,000
C. 15,000
D. 20,000
Question 7
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the company's equity?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 8
A company's control account shows the following transactions: ₦10,000 received from a customer; ₦5,000 paid to a supplier; ₦2,000 deposited into the bank. Prepare the control account and bank reconciliation statement.
A. ₦10,000; ₦5,000; ₦2,000
B. ₦12,000; ₦6,000; ₦3,000
C. ₦15,000; ₦7,000; ₦4,000
D. ₦18,000; ₦9,000; ₦5,000
Question 9
A company's balance sheet shows an increase in share capital of ₦50,000 and a decrease in reserves of ₦20,000. Calculate the net increase in shareholders' funds.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 10
A company's balance sheet shows the following: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 20,000 | | Stock | 30,000 | Share Capital | 40,000 | | Debtors | 15,000 | | | | | | | | What is the amount of the company's net worth?
A. ₦55,000
B. ₦60,000
C. ₦65,000
D. ₦70,000
Question 11
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 treatment for this discrepancy?
A. Debit the 'Rent Received' account by ₦15,000 and credit the 'Rent Payable' account by ₦15,000.
B. Credit the 'Rent Received' account by ₦15,000 and debit the 'Rent Payable' account by ₦15,000.
C. Debit the 'Rent Received' account by ₦15,000 and credit the 'Cash' account by ₦15,000.
D. Credit the 'Rent Received' account by ₦15,000 and debit the 'Bank' account by ₦15,000.
Question 12
A company uses the perpetual inventory system to record its inventory transactions. The company's inventory has a cost of ₦20,000 and a selling price of ₦30,000. What is the gross profit margin for the company?
A. 20%
B. 30%
C. 40%
D. 50%
Question 13
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦150,000 respectively. The profit-sharing ratio is 2:3. What is the share of profit of partner A?
A. ₦40,000
B. ₦60,000
C. ₦80,000
D. ₦100,000
Question 14
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation charge?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 15
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. The difference is due to a discrepancy in the cash book. What is the reason for the discrepancy?
A. The cash book has not been updated to reflect the latest transactions.
B. The bank statement has not been updated to reflect the latest transactions.
C. There is a discrepancy in the cash book due to an error in recording a transaction.
D. The cash book has been reconciled with the bank statement, but there is a difference in the balances.

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