POST UTME CHRISTOPHER UNIVERSITY 2020 Accounting | Objective

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Question 1
A company's balance sheet as at 31st December 2022 shows a non-current liability of ₦3,000,000 and a current liability of ₦2,000,000. The company's equity as at 31st December 2021 was ₦1,000,000. Calculate the company's total equity as at 31st December 2022.
A. ₦4,000,000
B. ₦5,000,000
C. ₦6,000,000
D. ₦7,000,000
Question 2
The following is an extract from the financial statements of a public sector entity: Cash and cash equivalents: ₦1,500,000 Accounts receivable: ₦2,000,000 Prepaid expenses: ₦300,000 Total current assets: ₦3,800,000 What is the amount of the entity's current liabilities?
A. ₦3,800,000
B. ₦4,100,000
C. ₦4,300,000
D. ₦4,500,000
Question 3
A company's trading account for the year ended 31st December 2020 shows a profit of ₦1,500,000. The balance sheet at the beginning of the year showed a capital of ₦2,000,000 and a profit and loss account balance of ₦500,000. The company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. The balance sheet at the end of the year showed a capital of ₦3,500,000 and a profit and loss account balance of ₦1,000,000. Calculate the amount of dividends paid to the shareholders.
A. ₦750,000
B. ₦1,000,000
C. ₦1,250,000
D. ₦1,500,000
Question 4
A company's trial balance shows an error of ₦8,000 due to an incorrect posting of a transaction. The error is discovered during the preparation of the balance sheet. What is the correct treatment of this error?
A. ₦8,000 is debited to the error account.
B. ₦8,000 is credited to the error account.
C. ₦8,000 is ignored as it is a minor error.
D. ₦8,000 is posted to the profit and loss account.
Question 5
A company's trading account for the year ended 31st December 2020 shows a profit of ₦3,000,000. The balance sheet at the beginning of the year showed a capital of ₦3,000,000 and a profit and loss account balance of ₦1,000,000. The company issued 30,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 15,000 debentures of ₦100 each. The balance sheet at the end of the year showed a capital of ₦7,000,000 and a profit and loss account balance of ₦2,500,000. Calculate the amount of dividends paid to the shareholders.
A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 6
A sole proprietorship has the following transactions for the year:
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 7
A company's trial balance shows an error of ₦10,000 due to an incorrect posting of a transaction. The error is discovered during the preparation of the balance sheet. What is the correct treatment of this error?
A. ₦10,000 is debited to the error account.
B. ₦10,000 is credited to the error account.
C. ₦10,000 is ignored as it is a minor error.
D. ₦10,000 is posted to the profit and loss account.
Question 8
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦1,200,000, what is the amount of profit that partner A will receive?
A. ₦900,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 9
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 using the straight-line method?
A. ₦90,000
B. ₦95,000
C. ₦100,000
D. ₦105,000
Question 10
The following are the details of a company's cash book for the year ended 31st December 2022: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,000,000 | | | 15th Jan | Bank | | ₦800,000 | | 20th Jan | Cash | | ₦500,000 | | 25th Jan | Bank | ₦200,000 | | | 31st Dec | Cash | | ₦1,000,000 | Calculate the company's bank balance as at 31st December 2022.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 11
A company's balance sheet as at 31st December 2022 shows a non-current asset of ₦3,000,000 and a current asset of ₦2,000,000. The company's equity as at 31st December 2021 was ₦1,000,000. Calculate the company's total equity as at 31st December 2022.
A. ₦5,000,000
B. ₦6,000,000
C. ₦7,000,000
D. ₦8,000,000
Question 12
A company uses the perpetual inventory system. On January 1, 2020, it had 500 units of a product in stock, costing ₦50 each. During the year, 300 units were sold, and 200 units were purchased at ₦60 each. Calculate the cost of goods sold for the year.
A. ₦15,000
B. ₦18,000
C. ₦20,000
D. ₦22,000
Question 13
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference of ₦30,000 is due to an outstanding cheque of ₦20,000 and a deposit of ₦10,000. What is the correct balance in the cash book?
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 14
A manufacturing company has the following ledger balances: Raw Materials ₹ 50,000, Work-in-Progress ₹ 100,000, Finished Goods ₹ 150,000. What is the total value of the company's inventory?
A. ₹300,000
B. ₹350,000
C. ₹400,000
D. ₹450,000
Question 15
A company's balance sheet at the beginning of the year showed a capital of ₦2,500,000 and a profit and loss account balance of ₦300,000. During the year, the company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. The balance sheet at the end of the year showed a capital of ₦5,500,000 and a profit and loss account balance of ₦1,200,000. Calculate the amount of dividends paid to the shareholders.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000

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