POST UTME COAL CITY UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records show that the actual rent paid for the year was ₦8,000. What is the correct journal entry to record the correction?
A. ₦7,000 debit to 'Rent and Rates' and ₦7,000 credit to 'Profit and Loss Account'
B. ₦8,000 debit to 'Rent and Rates' and ₦8,000 credit to 'Profit and Loss Account'
C. ₦15,000 debit to 'Rent and Rates' and ₦15,000 credit to 'Profit and Loss Account'
D. ₦7,000 debit to 'Profit and Loss Account' and ₦7,000 credit to 'Rent and Rates'
Question 2
A company has a share capital of ₹1,00,000 and a reserve of ₹50,000. What is the company's total equity?
A. ₹1,50,000
B. ₹1,00,000
C. ₹1,25,000
D. ₹1,50,000
Question 3
A company issued 10,000 shares of ₦1 each at a premium of 50% and 5,000 shares of ₦5 each at a discount of 10%. Calculate the total amount received from the issue of shares.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 4
A company's equity is as follows: Ordinary Share Capital: ₦1,500,000 Preference Share Capital: ₦800,000 What is the total value of the company's equity?
A. ₦2,300,000
B. ₦2,400,000
C. ₦2,500,000
D. ₦2,600,000
Question 5
A company's assets are as follows: Plant and Machinery: ₦1,500,000 Building: ₦2,000,000 Furniture: ₦800,000 What is the total value of the company's assets?
A. ₦4,300,000
B. ₦4,500,000
C. ₦4,700,000
D. ₦4,800,000
Question 6
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 7
A company's share capital consists of 10,000 ordinary shares of ₦10 each and 5,000 preference shares of ₦5 each. If the company issues 2,000 ordinary shares and 1,000 preference shares, what is the increase in share capital?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 8
A company produces two products, X and Y. The selling price of X is ₦200 per unit and that of Y is ₦150 per unit. The company sells 300 units of X and 400 units of Y. If the total profit made from the sale of these products is ₦120,000, calculate the cost price of one unit of product X.
A. ₦100
B. ₦120
C. ₦150
D. ₦180
Question 9
A company's trading account for the year ended 31st December 2022 is as follows: Debit: Cost of goods sold: ₦1,500,000 Sales returns: ₦20,000 Credit: Sales: ₦2,000,000 Purchase returns: ₦30,000 What is the net profit for the year?
A. ₦500,000
B. ₦520,000
C. ₦540,000
D. ₦560,000
Question 10
A company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a net profit of ₦250,000. What is the company's net profit?
A. ₦400,000
B. ₦350,000
C. ₦300,000
D. ₦250,000
Question 11
A company's nature and principles of accounting for the year ended 31st December 2022 is as follows: Debit: Purchases: ₦1,000,000 Returns inwards: ₦20,000 Credit: Sales: ₦1,500,000 Returns outwards: ₦30,000 What is the net profit for the year?
A. ₦500,000
B. ₦520,000
C. ₦540,000
D. ₦560,000
Question 12
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The capital accounts of A and B at the beginning of the year were ₦100,000 and ₦80,000 respectively. During the year, A withdrew ₦20,000 and B introduced ₦10,000. Prepare the partners' capital accounts for the year.
A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000
Question 13
A company issued 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 14
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 15
A company has a cash balance of ₹50,000 and a bank overdraft of ₹20,000. What is the company's net cash position?
A. ₹30,000
B. ₹40,000
C. ₹50,000
D. ₹60,000

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