POST UTME CHRISTOPHER UNIVERSITY 2018 Accounting | Objective

Are you preparing for POST UTME CHRISTOPHER UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the single entry system of accounting. The company's cash book shows a debit balance of ₦15,000. The company's trial balance shows a credit balance of ₦20,000 for the same account. What is the correct journal entry to rectify the discrepancy?
A. Debit Cash ₦15,000, Credit Profit and Loss Account ₦15,000
Correct B. Debit Profit and Loss Account ₦15,000, Credit Cash ₦15,000
C. Debit Cash ₦20,000, Credit Profit and Loss Account ₦20,000
D. Debit Profit and Loss Account ₦20,000, Credit Cash ₦20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A public sector organization has the following transactions for the month of January:
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
The following is a balance sheet of a partnership firm:
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company uses the cash book system of accounting. The company's cash book shows a debit balance of ₦30,000. The company's bank statement shows a credit balance of ₦40,000 for the same account. What is the correct journal entry to rectify the discrepancy?
A. Debit Cash ₦30,000, Credit Profit and Loss Account ₦30,000
Correct B. Debit Profit and Loss Account ₦30,000, Credit Cash ₦30,000
C. Debit Cash ₦40,000, Credit Profit and Loss Account ₦40,000
D. Debit Profit and Loss Account ₦40,000, Credit Cash ₦40,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company uses the single entry system of accounting. The company's cash book shows a debit balance of ₦25,000. The company's trial balance shows a credit balance of ₦35,000 for the same account. What is the correct journal entry to rectify the discrepancy?
A. Debit Cash ₦25,000, Credit Profit and Loss Account ₦25,000
B. Debit Profit and Loss Account ₦25,000, Credit Cash ₦25,000
C. Debit Cash ₦35,000, Credit Profit and Loss Account ₦35,000
Correct D. Debit Profit and Loss Account ₦35,000, Credit Cash ₦35,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company uses the perpetual inventory system. On January 1, 2022, it had 500 units of a product on hand at a cost of ₦120 per unit. During the year, 300 units were sold, and 200 units were purchased at a cost of ₦150 per unit. The company uses the weighted average method to determine the cost of goods sold. What is the total cost of goods sold for the year?
A. ₦36,000
Correct B. ₦40,000
C. ₦42,000
D. ₦45,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company has the following transactions related to its accounts payable: | Date | Description | Amount | | --- | --- | --- | | Jan 1 | Purchase of goods | ₦10,000 | | Jan 15 | Payment to supplier | ₦8,000 | | Feb 1 | Purchase of goods | ₦12,000 | | Feb 15 | Payment to supplier | ₦10,000 | What is the total amount of accounts payable at the end of February?
A. ₦14,000
B. ₦16,000
Correct C. ₦18,000
D. ₦20,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company uses the allowance method to account for bad debts. At the end of the year, the company estimates that 5% of its accounts receivable are uncollectible. If the company has accounts receivable of ₦100,000, what is the allowance for bad debts?
A. ₦4,000
Correct B. ₦5,000
C. ₦6,000
D. ₦7,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company has the following transactions related to its inventory: | Date | Description | Quantity | Unit Cost | | --- | --- | --- | --- | | Jan 1 | Beginning inventory | 100 | ₦10 | | Jan 15 | Purchase | 200 | ₦12 | | Feb 1 | Sale | 50 | ₦0 | | Feb 15 | Purchase | 150 | ₦14 | What is the total cost of goods available for sale at the end of February?
A. ₦3,400
B. ₦3,600
Correct C. ₦3,800
D. ₦4,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 5 years and a residual value of ₦10,000, what is the annual depreciation expense?
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. Calculate the amount of share capital and the amount of share premium.
Correct A. ₦150,000
B. ₦100,000
C. ₦120,000
D. ₦180,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company purchased a machine for ₦120,000 and immediately spent ₦15,000 on its installation. The machine has a useful life of 5 years and a residual value of ₦10,000. Calculate the annual depreciation.
Correct A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦25,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company issued 5,000 debentures of ₦100 each at a discount of ₦5 per debenture. The issue expenses were ₦10,000. Calculate the amount of debenture capital and the amount of discount on debentures.
Correct A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company purchased a building for ₦500,000. The building has a useful life of 10 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company issued 10,000 shares of ₦10 each at a premium of ₦2 per share. The issue expenses were ₦20,000. Calculate the amount of share capital and the amount of share premium.
Correct A. ₦220,000
B. ₦240,000
C. ₦260,000
D. ₦280,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A partnership has two partners, A and B. The capital contributions of A and B are ₦80,000 and ₦60,000 respectively. If the profit-sharing ratio is 3:2, what is the share of profit of partner A?
Correct A. ₦24,000
B. ₦18,000
C. ₦20,000
D. ₦22,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company uses the weighted average method to value its inventory. The cost of the items in the inventory is as follows: ₦50,000 at ₦10 each, ₦30,000 at ₦15 each, and ₦20,000 at ₦20 each. What is the total value of the inventory?
A. ₦100,000
Correct B. ₦120,000
C. ₦110,000
D. ₦130,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company has a self-balancing ledger with the following accounts: Cash ₦50,000, Accounts Payable ₦30,000, and Common Stock ₦20,000. What is the total value of the assets?
Correct A. ₦100,000
B. ₦120,000
C. ₦110,000
D. ₦130,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company uses the FIFO method to value its inventory. The cost of the items in the inventory is as follows: ₦50,000 at ₦10 each, ₦30,000 at ₦15 each, and ₦20,000 at ₦20 each. What is the total value of the inventory?
A. ₦100,000
Correct B. ₦120,000
C. ₦110,000
D. ₦130,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
In a partnership account, the capital of the partners is divided in the ratio of 3:5:7. If the total capital is ₦1,500,000, what is the amount of capital of the partner with a 7:1 ratio?
A. ₦420,000
B. ₦630,000
Correct C. ₦840,000
D. ₦1,050,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company uses a job costing system. The following data relate to Job No. 101: Direct Materials: ₦15,000, Direct Labour: ₦8,000, Overheads: ₦12,000. Calculate the total cost of the job.
A. ₦35,000
B. ₦40,000
Correct C. ₦45,000
D. ₦50,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company has the following transactions: Purchased goods for ₦100,000; Sold goods for ₦120,000; Purchased goods for ₦80,000. What is the net effect on the company's cash balance?
A. ₦20,000
Correct B. ₦40,000
C. ₦60,000
D. ₦80,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company uses the perpetual inventory system. The following data relate to the company's inventory: Beginning inventory: 100 units @ ₦50 each; Purchases: 200 units @ ₦60 each; Sales: 150 units @ ₦70 each. Calculate the cost of goods sold.
A. ₦15,000
B. ₦18,000
Correct C. ₦21,000
D. ₦24,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has the following transactions: Purchased goods for ₦120,000; Sold goods for ₦150,000; Purchased goods for ₦100,000. What is the net effect on the company's inventory?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

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