POST UTME COAL CITY UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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.
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
Question 2
A partnership has a capital of ₦500,000. The profit-sharing ratio is 3:2. If the profit for the year is ₦120,000, calculate the share of profit of each partner.
A. ₦60,000 and ₦40,000
B. ₦80,000 and ₦40,000
C. ₦60,000 and ₦60,000
D. ₦40,000 and ₦80,000
Question 3
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.
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.
Question 4
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.
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
Question 5
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
D. Debit Purchases ₦220,000, Credit Returns Inwards ₦20,000
Question 6
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
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
Question 7
A company is considering the purchase of a machine that costs ₦1,500,000. The machine is expected to last for 5 years and will reduce production costs by ₦200,000 per year. The company's cost of capital is 10% per annum. What is the net present value (NPV) of the machine?
A. ₦750,000
B. ₦1,000,000
C. ₦1,250,000
D. ₦1,500,000
Question 8
A company has a cash book balance of ₦500,000. The bank statement shows a balance of ₦600,000. The difference is due to an outstanding cheque of ₦50,000. Calculate the bank reconciliation statement.
A. ₦550,000
B. ₦600,000
C. ₦650,000
D. ₦700,000
Question 9
A company issued 10,000 shares of 1 par value at a premium of 3 per share. Calculate the total amount received from the issue of shares.
A. ₦30,000,000
B. ₦40,000,000
C. ₦50,000,000
D. ₦60,000,000
Question 10
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
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
Question 11
A company's trial balance at 31st December 2018 showed the following balances:
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 12
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
C. ₦70,000
D. ₦80,000
Question 13
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
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
Question 14
A company has a cash book that shows a balance of ₦500,000. The company's bank statement shows a balance of ₦600,000. The company's cash book has a debit balance of ₦50,000 and a credit balance of ₦100,000. What is the correct balance of the company's cash book?
A. ₦450,000
B. ₦500,000
C. ₦550,000
D. ₦600,000
Question 15
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. The partnership has a profit of ₦1,200,000. How much profit will partner A receive?
A. ₦720,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

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