POST UTME CALEB UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME CALEB UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the likely reason for the discrepancy?
A. The company has not yet received the bank statement.
B. The bank has charged a fee for the overdraft.
Correct C. The company has made an error in recording the transactions.
D. The bank has credited an incorrect amount to the company's account.

Correct Answer: C

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Question 2
A government agency has a fixed asset of ₦10 million, which is depreciated by 10% per annum. What is the carrying value of the asset after 3 years?
Correct A. ₦7,100,000
B. ₦8,100,000
C. ₦9,100,000
D. ₦10,100,000

Correct Answer: A

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Question 3
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,500
B. ₦11,000
Correct C. ₦11,500
D. ₦12,000

Correct Answer: C

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Question 4
A company has a control account for its cash account, which shows a balance of ₦50,000. The cash book shows a balance of ₦60,000. What is the likely reason for the discrepancy?
A. The company has not yet received the cash book.
B. The cash book has been incorrectly balanced.
C. The company has made an error in recording the transactions.
Correct D. The cash account has been incorrectly posted to the control account.

Correct Answer: D

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Question 5
A company issues 5% debentures of ₦100 each at a premium of ₦10 per share. What is the total amount received from the issue of debentures?
A. ₦525
B. ₦550
C. ₦575
Correct D. ₦600

Correct Answer: D

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Question 6
A partnership is formed between three individuals, A, B, and C, with initial capital contributions of ₦100,000, ₦80,000, and ₦120,000 respectively. During the year, the partnership earns a profit of ₦240,000 and incurs expenses of ₦120,000. The profit is divided in the ratio 2:3:4. Calculate the amount of profit to be distributed to partner C.
A. ₦48,000
B. ₦60,000
Correct C. ₦72,000
D. ₦80,000

Correct Answer: C

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Question 7
The following are the balances in the ledger accounts of a business on December 31, 2022:
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 8
A business maintains a cash book and a general ledger. The cash book shows the following transactions:
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 9
A business has the following balances in its ledger accounts:
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 10
A business has the following balances in its ledger accounts:
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 11
A company's financial statements for the year ended December 31, 2016, are as follows: Profit before tax: ₦1,500,000; Tax expense: ₦300,000; Profit after tax: ₦1,200,000. Calculate the company's earnings per share (EPS) if the number of ordinary shares in issue is 200,000.
Correct A. ₦6.00
B. ₦6.50
C. ₦7.00
D. ₦7.50

Correct Answer: A

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Question 12
A company purchases a machine for ₦500,000 and depreciates it using the straight-line method over a useful life of 5 years. Calculate the annual depreciation charge if the machine is expected to have a residual value of ₦50,000.
Correct A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: A

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Question 13
A company's trial balance as at December 31, 2016, is as follows: Accounts Receivable: ₦500,000; Accounts Payable: ₦300,000; Common Stock: ₦1,000,000; Retained Earnings: ₦800,000. Prepare a balance sheet for the company as at December 31, 2016.
Correct A. ₦2,300,000
B. ₦2,400,000
C. ₦2,500,000
D. ₦2,600,000

Correct Answer: A

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Question 14
A company issues 10,000 shares of common stock at ₦10 per share. Calculate the total amount received from the sale of the shares.
Correct A. ₦100,000
B. ₦110,000
C. ₦120,000
D. ₦130,000

Correct Answer: A

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Question 15
A company purchases a building for ₦1,500,000 and depreciates it using the straight-line method over a useful life of 10 years. Calculate the annual depreciation charge if the building is expected to have a residual value of ₦150,000.
Correct A. ₦135,000
B. ₦145,000
C. ₦155,000
D. ₦165,000

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.
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 has 3 partners: A, B, and C. The capital contributions of A, B, and C are ₦50,000, ₦30,000, and ₦20,000 respectively. If the profit is divided in the ratio 3:2:1, what is the share of profit of partner A?
Correct A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000

Correct Answer: A

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Question 18
A company purchases a machine for ₦500,000 and sells it 2 years later for ₦600,000. Calculate the profit made from the sale of the machine, assuming the company uses the straight-line method of depreciation.
A. ₦25,000
B. ₦50,000
C. ₦75,000
Correct D. ₦100,000

Correct Answer: D

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Question 19
A company has the following transactions: Purchased goods for ₦100,000; sold goods for ₦120,000; and returned goods worth ₦10,000 to the supplier. Prepare the journal entries for these transactions.
A. Debit Purchases ₦100,000, Credit Returns Inwards ₦10,000
B. Debit Sales ₦120,000, Credit Returns Inwards ₦10,000
Correct C. Debit Purchases ₦100,000, Credit Sales ₦120,000
D. Debit Returns Inwards ₦10,000, Credit Purchases ₦100,000

Correct Answer: C

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Question 20
A company has the following ledger balances: Cash ₦50,000, Debtors ₦100,000, Creditors ₦20,000, and Capital ₦200,000. Prepare the balance sheet for the company.
A. Cash ₦50,000, Debtors ₦100,000, Creditors ₦20,000, Capital ₦200,000
B. Cash ₦50,000, Debtors ₦100,000, Creditors ₦20,000, Capital ₦250,000
C. Cash ₦50,000, Debtors ₦100,000, Creditors ₦20,000, Capital ₦300,000
Correct D. Cash ₦50,000, Debtors ₦100,000, Creditors ₦20,000, Capital ₦250,000

Correct Answer: D

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Question 21
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The bank reconciliation statement reveals that there is an outstanding cheque of ₦20,000 and a deposit in transit of ₦10,000. What is the correct balance of the company's cash book?
Correct A. ₦140,000
B. ₦150,000
C. ₦160,000
D. ₦170,000

Correct Answer: A

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Question 22
A manufacturing company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials inventory has a cost of ₦100,000 and a quantity of 100 units. The work-in-progress inventory has a cost of ₦150,000 and a quantity of 50 units. The finished goods inventory has a cost of ₦200,000 and a quantity of 200 units. What is the total value of the inventory?
A. ₦450,000
Correct B. ₦500,000
C. ₦550,000
D. ₦600,000

Correct Answer: B

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Question 23
A company's balance sheet shows a current liability of ₦50,000 and a non-current liability of ₦100,000. The company also has a current asset of ₦150,000 and a non-current asset of ₦200,000. What is the company's net worth?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 24
A government agency is responsible for collecting taxes on behalf of the government. The agency has a budget of ₦500,000 and has collected ₦400,000 in taxes. However, the agency has also incurred an expense of ₦20,000. What is the agency's surplus?
A. ₦380,000
Correct B. ₦400,000
C. ₦420,000
D. ₦440,000

Correct Answer: B

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Question 25
A company's cash book shows a balance of ₦200,000. However, the bank statement shows a balance of ₦180,000. The bank reconciliation statement reveals that there is an outstanding cheque of ₦10,000 and a deposit in transit of ₦5,000. What is the correct balance of the company's cash book?
A. ₦190,000
B. ₦200,000
Correct C. ₦210,000
D. ₦220,000

Correct Answer: C

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