Practice Post UTME CHRISTOPHER UNIVERSITY accounting 2019 Past Questions

Question 1

A company uses the double-entry system to record transactions. If the company purchases office equipment for ₦150,000 cash, what is the accounting equation after the transaction?

A. ₦150,000

Correct B. ₦0

C. ₦300,000

D. ₦250,000

Correct Answer: B

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Question 2

A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦100,000. What is the reason for the difference?

A. Bank charges

Correct B. Cheques deposited but not yet credited

C. Cheques issued but not yet debited

D. Interest earned

Correct Answer: B

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Question 3

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000. What is the net effect on the accounting equation?

A. ₦80,000

B. ₦20,000

C. ₦10,000

Correct D. ₦0

Correct Answer: D

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Question 4

A company uses the straight-line method of depreciation. If the asset has a useful life of 5 years and a residual value of ₦10,000, what is the annual depreciation charge?

A. ₦20,000

B. ₦22,000

Correct C. ₦25,000

D. ₦30,000

Correct Answer: C

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Question 5

A company's cash book shows the following transactions: Cash received from customers ₦50,000, Cash paid to suppliers ₦30,000. What is the net effect on the cash balance?

Correct A. ₦20,000

B. ₦10,000

C. ₦0

D. ₦-20,000

Correct Answer: A

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Question 6

A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 12 hours and machine B operates for 15 hours, how many units of product X and Y should the company produce?

A. 10 units of X and 15 units of Y

Correct B. 15 units of X and 10 units of Y

C. 12 units of X and 18 units of Y

D. 18 units of X and 12 units of Y

Correct Answer: B

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Question 7

A company has two departments, A and B. Department A has a budget of ₦1,500,000 and department B has a budget of ₦2,000,000. If department A spends 80% of its budget on salaries and department B spends 70% of its budget on salaries, what is the total amount spent on salaries by both departments?

A. ₦1,400,000

B. ₦1,600,000

Correct C. ₦1,800,000

D. ₦2,000,000

Correct Answer: C

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Question 8

A company has a trial balance as follows: Debit Cash ₦100,000 Accounts Payable ₦50,000 Equipment ₦200,000 Credit Accounts Receivable ₦150,000 Salaries Payable ₦30,000 Common Stock ₦250,000 What is the total amount of assets and liabilities of the company?

A. ₦400,000

B. ₦450,000

Correct C. ₦500,000

D. ₦550,000

Correct Answer: C

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Question 9

A company has the following transactions for the month of January: Jan 1: Cash ₦100,000 Jan 5: Accounts Payable ₦50,000 Jan 10: Equipment ₦200,000 Jan 15: Accounts Receivable ₦150,000 Jan 20: Salaries Payable ₦30,000 Jan 25: Common Stock ₦250,000 What is the total amount of assets and liabilities of the company at the end of January?

A. ₦1,200,000

B. ₦1,300,000

Correct C. ₦1,400,000

D. ₦1,500,000

Correct Answer: C

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Question 10

A company has the following transactions for the month of February: Feb 1: Cash ₦150,000 Feb 5: Accounts Payable ₦75,000 Feb 10: Equipment ₦300,000 Feb 15: Accounts Receivable ₦200,000 Feb 20: Salaries Payable ₦40,000 Feb 25: Common Stock ₦350,000 What is the total amount of assets and liabilities of the company at the end of February?

A. ₦2,200,000

B. ₦2,300,000

Correct C. ₦2,400,000

D. ₦2,500,000

Correct Answer: C

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Question 11

A company has a cash book account with a debit balance of ₦15,000. The bank statement shows a credit balance of ₦20,000. The bank reconciliation statement reveals a difference of ₦5,000. What is the reason for the difference?

A. Bank charges

B. Interest on overdraft

Correct C. Unrecorded cash sales

D. Unrecorded cash purchases

Correct Answer: C

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Question 12

A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the total profit-sharing ratio?

Correct A. 3:2

B. 5:3

C. 6:4

D. 7:5

Correct Answer: A

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Question 13

A public sector organization has a budget of ₦100,000,000. The actual expenditure is ₦120,000,000. What is the variance?

Correct A. ₦20,000,000

B. ₦30,000,000

C. ₦40,000,000

D. ₦50,000,000

Correct Answer: A

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Question 14

A company uses the double-entry system of accounting. The journal entry for the purchase of equipment is:

Correct A. Debit Equipment ₦50,000, Credit Cash ₦50,000

B. Debit Equipment ₦50,000, Credit Bank ₦50,000

C. Debit Bank ₦50,000, Credit Equipment ₦50,000

D. Debit Cash ₦50,000, Credit Bank ₦50,000

Correct Answer: A

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Question 15

A company has a ledger account with a debit balance of ₦20,000. The cash book account has a credit balance of ₦15,000. What is the reason for the difference?

A. Bank charges

B. Interest on overdraft

C. Unrecorded cash sales

Correct D. Unrecorded cash purchases

Correct Answer: D

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Question 16

A company's cash book shows a credit balance of ₦15,000. However, the bank statement shows a debit balance of ₦20,000. What is the reason for the discrepancy?

A. The company has deposited more money than it has withdrawn.

Correct B. The company has withdrawn more money than it has deposited.

C. The bank has made an error in its statement.

D. The company's cash book is not up-to-date.

Correct Answer: B

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Question 17

A manufacturing company produces two products, X and Y. Product X requires 2 hours of labor and 3 units of raw material, while product Y requires 3 hours of labor and 2 units of raw material. If the company has 120 hours of labor and 180 units of raw material available, how many units of product X and product Y should it produce to maximize profit?

Correct A. 10 units of X and 15 units of Y

B. 15 units of X and 10 units of Y

C. 20 units of X and 5 units of Y

D. 5 units of X and 20 units of Y

Correct Answer: A

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Question 18

A company's assets are valued at ₦100,000. The company depreciates its assets by 10% each year. What is the value of the company's assets after 5 years?

Correct A. ₦61,610

B. ₦63,210

C. ₦65,810

D. ₦68,410

Correct Answer: A

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Question 19

A company's trading account shows a profit of ₦50,000. The company's profit and loss account shows a net profit of ₦60,000. What is the reason for the discrepancy?

A. The company has made an error in its trading account.

Correct B. The company has made an error in its profit and loss account.

C. The company has made an error in its balance sheet.

D. The company's profit and loss account is not up-to-date.

Correct Answer: B

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Question 20

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. ₦10,000

B. ₦15,000

Correct C. ₦20,000

D. ₦25,000

Correct Answer: C

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Question 21

A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received' and a credit balance of ₦1,200 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?

A. Debit Rent Paid by ₦300 and Credit Rent Received by ₦300

Correct B. Debit Rent Received by ₦300 and Credit Rent Paid by ₦300

C. Debit Rent Paid by ₦1,500 and Credit Rent Received by ₦1,200

D. Debit Rent Received by ₦1,200 and Credit Rent Paid by ₦1,500

Correct Answer: B

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Question 22

A company's ledger accounts are as follows: Purchases ₦10,000, Sales ₦15,000, Returns Outwards ₦1,000, Returns Inwards ₦500. What is the correct journal entry to record the above transactions?

A. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Outwards by ₦1,000, Credit Returns Inwards by ₦500

B. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Inwards by ₦500, Credit Returns Outwards by ₦1,000

Correct C. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Outwards by ₦1,000, Credit Returns Inwards by ₦500

D. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Inwards by ₦500, Credit Returns Outwards by ₦1,000

Correct Answer: C

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Question 23

A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received' and a credit balance of ₦1,200 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?

A. Debit Rent Paid by ₦300 and Credit Rent Received by ₦300

Correct B. Debit Rent Received by ₦300 and Credit Rent Paid by ₦300

C. Debit Rent Paid by ₦1,500 and Credit Rent Received by ₦1,200

D. Debit Rent Received by ₦1,200 and Credit Rent Paid by ₦1,500

Correct Answer: B

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Question 24

A company's ledger accounts are as follows: Purchases ₦10,000, Sales ₦15,000, Returns Outwards ₦1,000, Returns Inwards ₦500. What is the correct journal entry to record the above transactions?

A. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Outwards by ₦1,000, Credit Returns Inwards by ₦500

B. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Inwards by ₦500, Credit Returns Outwards by ₦1,000

Correct C. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Outwards by ₦1,000, Credit Returns Inwards by ₦500

D. Debit Purchases by ₦10,000, Credit Sales by ₦15,000, Debit Returns Inwards by ₦500, Credit Returns Outwards by ₦1,000

Correct Answer: C

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Question 25

A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received' and a credit balance of ₦1,200 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?

A. Debit Rent Paid by ₦300 and Credit Rent Received by ₦300

Correct B. Debit Rent Received by ₦300 and Credit Rent Paid by ₦300

C. Debit Rent Paid by ₦1,500 and Credit Rent Received by ₦1,200

D. Debit Rent Received by ₦1,200 and Credit Rent Paid by ₦1,500

Correct Answer: B

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