POST UTME COAL CITY UNIVERSITY 2018 Accounting | Objective

Are you preparing for POST UTME COAL CITY 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 partnership account is prepared for XYZ Partnership, which has two partners, A and B. The capital accounts of A and B are 10,000 and 15,000 respectively. The profit for the year is 25,000. Prepare the partnership account, showing the capital accounts, profit and loss account and the balance sheet.
Correct A. Capital Account: A 15,000, B 20,000; Profit and Loss Account: 25,000; Balance Sheet: 40,000 40,000
B. Capital Account: A 10,000, B 15,000; Profit and Loss Account: 20,000; Balance Sheet: 35,000 35,000
C. Capital Account: A 15,000, B 20,000; Profit and Loss Account: 20,000; Balance Sheet: 35,000 35,000
D. Capital Account: A 10,000, B 15,000; Profit and Loss Account: 25,000; Balance Sheet: 40,000 40,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A public sector organization, XYZ Ltd, has the following transactions during the year: Purchase of goods 100,000; Sale of goods 150,000; Wages 20,000; Rent 10,000. Prepare the cash flow statement, showing the operating, investing and financing activities.
A. Operating Activities: 30,000; Investing Activities: -100,000; Financing Activities: 20,000
B. Operating Activities: 30,000; Investing Activities: 50,000; Financing Activities: -20,000
Correct C. Operating Activities: 40,000; Investing Activities: -100,000; Financing Activities: 20,000
D. Operating Activities: 40,000; Investing Activities: 50,000; Financing Activities: -20,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company, XYZ Ltd, has the following transactions during the year: Purchase of goods 100,000; Sale of goods 150,000; Wages 20,000; Rent 10,000. Prepare the trading account, profit and loss account and balance sheet.
Correct A. Trading Account: 50,000; Profit and Loss Account: 30,000; Balance Sheet: 180,000 180,000
B. Trading Account: 50,000; Profit and Loss Account: 20,000; Balance Sheet: 160,000 160,000
C. Trading Account: 40,000; Profit and Loss Account: 30,000; Balance Sheet: 170,000 170,000
D. Trading Account: 40,000; Profit and Loss Account: 20,000; Balance Sheet: 160,000 160,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company, XYZ Ltd, has the following transactions during the year: Purchase of goods 100,000; Sale of goods 150,000; Wages 20,000; Rent 10,000. Prepare the cash book, showing the cash and bank columns.
Correct A. Cash Column: 40,000; Bank Column: 60,000
B. Cash Column: 60,000; Bank Column: 40,000
C. Cash Column: 50,000; Bank Column: 50,000
D. Cash Column: 40,000; Bank Column: 60,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company, XYZ Ltd, has the following transactions during the year: Purchase of goods 100,000; Sale of goods 150,000; Wages 20,000; Rent 10,000. Prepare the bank reconciliation statement, showing the differences between the cash book and bank statements.
Correct A. Differences: 10,000; Cash Book Balance: 60,000; Bank Statement Balance: 70,000
B. Differences: 20,000; Cash Book Balance: 50,000; Bank Statement Balance: 60,000
C. Differences: 10,000; Cash Book Balance: 60,000; Bank Statement Balance: 70,000
D. Differences: 20,000; Cash Book Balance: 50,000; Bank Statement Balance: 60,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦100,000. The company's accountant has reconciled the difference by adding a credit note of ₦10,000 and a debit note of ₦5,000. What is the correct explanation for the difference?
A. The company has outstanding checks totaling ₦10,000.
Correct B. The company has deposited ₦10,000 into the bank but has not yet been credited.
C. The company has issued a credit note of ₦10,000 to a customer.
D. The company has paid a bill of ₦10,000 but has not yet been debited.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A government agency has a budget of ₦500 million for a project. The project requires an initial investment of ₦200 million and a recurring expenditure of ₦150 million per year for 5 years. What is the total cost of the project?
A. ₦1,025,000,000
B. ₦1,075,000,000
Correct C. ₦1,125,000,000
D. ₦1,175,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company's assets are valued at ₦500 million, liabilities are ₦200 million, and equity is ₦300 million. What is the company's ratio of debt to equity?
A. 1:2
Correct B. 1:3
C. 2:3
D. 3:4

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's cash book shows a balance of ₦150,000. The company's accountant has reconciled the difference by adding a credit note of ₦20,000 and a debit note of ₦10,000. What is the correct explanation for the difference?
A. The company has outstanding checks totaling ₦20,000.
Correct B. The company has deposited ₦20,000 into the bank but has not yet been credited.
C. The company has issued a credit note of ₦20,000 to a customer.
D. The company has paid a bill of ₦20,000 but has not yet been debited.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's assets are valued at ₦600 million, liabilities are ₦250 million, and equity is ₦350 million. What is the company's ratio of debt to equity?
A. 1:2
Correct B. 1:3
C. 2:3
D. 3:4

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company uses the single entry system. The following transactions were recorded during the year: Purchase of goods for ₦120,000, Sale of goods for ₦180,000, and Payment of ₦30,000 to a creditor. Prepare the ledger accounts for the company.
A. Purchase Ledger: Debit: ₦120,000, Credit: ₦0; Sales Ledger: Debit: ₦0, Credit: ₦180,000; Creditor Ledger: Debit: ₦0, Credit: ₦30,000
B. Purchase Ledger: Debit: ₦0, Credit: ₦120,000; Sales Ledger: Debit: ₦180,000, Credit: ₦0; Creditor Ledger: Debit: ₦30,000, Credit: ₦0
Correct C. Purchase Ledger: Debit: ₦120,000, Credit: ₦0; Sales Ledger: Debit: ₦0, Credit: ₦180,000; Creditor Ledger: Debit: ₦0, Credit: ₦30,000
D. Purchase Ledger: Debit: ₦0, Credit: ₦120,000; Sales Ledger: Debit: ₦180,000, Credit: ₦0; Creditor Ledger: Debit: ₦30,000, Credit: ₦0

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A partnership is formed between two individuals, A and B, with a capital of ₦100,000 each. During the year, A withdraws ₦20,000 and B withdraws ₦15,000. Prepare the capital account for the partnership.
A. Capital Account: A: ₦100,000 - ₦20,000 = ₦80,000; B: ₦100,000 - ₦15,000 = ₦85,000
B. Capital Account: A: ₦100,000 - ₦15,000 = ₦85,000; B: ₦100,000 - ₦20,000 = ₦80,000
Correct C. Capital Account: A: ₦100,000 - ₦20,000 = ₦80,000; B: ₦100,000 - ₦15,000 = ₦85,000
D. Capital Account: A: ₦100,000 - ₦15,000 = ₦85,000; B: ₦100,000 - ₦20,000 = ₦80,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company purchases a machine for ₦150,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
Correct A. ₦150,000 x 0.9 x 0.9 x 0.9 = ₦108,270.00
B. ₦150,000 x 0.9 x 0.9 x 0.9 = ₦121,500.00
C. ₦150,000 x 0.9 x 0.9 x 0.9 = ₦108,270.00
D. ₦150,000 x 0.9 x 0.9 x 0.9 = ₦121,500.00

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company prepares its final accounts for the year. The trading account shows a profit of ₦50,000, the profit and loss account shows a profit of ₦20,000, and the balance sheet shows a net worth of ₦150,000. Prepare the statement of profit or loss and other comprehensive income.
A. Statement of Profit or Loss and Other Comprehensive Income: ₦50,000 + ₦20,000 = ₦70,000
B. Statement of Profit or Loss and Other Comprehensive Income: ₦50,000 - ₦20,000 = ₦30,000
Correct C. Statement of Profit or Loss and Other Comprehensive Income: ₦50,000 + ₦20,000 = ₦70,000
D. Statement of Profit or Loss and Other Comprehensive Income: ₦50,000 - ₦20,000 = ₦30,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company uses the double entry system. The following transactions were recorded during the year: Purchase of goods for ₦120,000, Sale of goods for ₦180,000, and Payment of ₦30,000 to a creditor. Prepare the ledger accounts for the company.
A. Purchase Ledger: Debit: ₦120,000, Credit: ₦0; Sales Ledger: Debit: ₦0, Credit: ₦180,000; Creditor Ledger: Debit: ₦0, Credit: ₦30,000
B. Purchase Ledger: Debit: ₦0, Credit: ₦120,000; Sales Ledger: Debit: ₦180,000, Credit: ₦0; Creditor Ledger: Debit: ₦30,000, Credit: ₦0
Correct C. Purchase Ledger: Debit: ₦120,000, Credit: ₦0; Sales Ledger: Debit: ₦0, Credit: ₦180,000; Creditor Ledger: Debit: ₦0, Credit: ₦30,000
D. Purchase Ledger: Debit: ₦0, Credit: ₦120,000; Sales Ledger: Debit: ₦180,000, Credit: ₦0; Creditor Ledger: Debit: ₦30,000, Credit: ₦0

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company issued 10,000 shares of ₦5 each at a premium of ₦2. The shares were subscribed for by the public in full. Calculate the amount received from the issue of shares.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A manufacturing company uses a job costing system. The following data are extracted from the ledger accounts of the company for the year ended 31st December 2018:
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company's trial balance at 31st December 2018 showed the following balances:
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A partnership was formed on 1st January 2018 between two partners, A and B, who contributed ₦50,000 and ₦30,000 respectively. The partnership made a profit of ₦20,000 in the first year.
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company issued 10,000 debentures of ₦100 each at a premium of ₦5. The debentures were subscribed for by the public in full. Calculate the amount received from the issue of debentures.
A. ₦1,050,000
B. ₦1,100,000
Correct C. ₦1,150,000
D. ₦1,200,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount of share premium.
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company purchased a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦90,000
Correct B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company has the following transactions: Purchased goods for ₦200,000; sold goods for ₦250,000; and returned goods worth ₦20,000 to the supplier. Prepare the journal entry for the above transactions.
A. Debit Purchases ₦200,000, Credit Returns Inwards ₦20,000
B. Debit Sales ₦250,000, Credit Purchases ₦200,000
C. Debit Returns Inwards ₦20,000, Credit Purchases ₦220,000
Correct D. Debit Purchases ₦220,000, Credit Returns Inwards ₦20,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company issued 5,000 debentures of ₦1,000 each at a discount of 5%. The total amount received from the issue of debentures is ₦4,500,000. Calculate the amount of discount.
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 25
A company has the following transactions: Purchased goods for ₦300,000; sold goods for ₦400,000; and returned goods worth ₦30,000 to the supplier. Prepare the journal entry for the above transactions.
A. Debit Purchases ₦300,000, Credit Returns Inwards ₦30,000
B. Debit Sales ₦400,000, Credit Purchases ₦300,000
C. Debit Returns Inwards ₦30,000, Credit Purchases ₦330,000
Correct D. Debit Purchases ₦330,000, Credit Returns Inwards ₦30,000

Correct Answer: D

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