POST UTME COAL CITY UNIVERSITY 2020 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 2020 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: Debit: Cash 1,000, Accounts Payable 2,000, Equipment 3,000 Credit: Accounts Receivable 4,000, Common Stock 5,000, Retained Earnings 6,000 What is the correct journal entry for the purchase of equipment?
A. Debit Equipment 3,000, Credit Cash 3,000
Correct B. Debit Equipment 3,000, Credit Accounts Payable 3,000
C. Debit Equipment 3,000, Credit Common Stock 3,000
D. Debit Equipment 3,000, Credit Retained Earnings 3,000

Correct Answer: B

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Question 2
A company's bank statement shows a balance of 10,000. The company's cash book shows a balance of 12,000. The bank statement also shows a debit of 2,000 for a NSF check. What is the correct bank reconciliation?
Correct A. Add 2,000 to the bank statement balance
B. Subtract 2,000 from the bank statement balance
C. Add 2,000 to the cash book balance
D. Subtract 2,000 from the cash book balance

Correct Answer: A

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Question 3
A company prepares a trial balance. The following accounts are listed: Accounts Receivable 10,000, Accounts Payable 20,000, Common Stock 30,000, Retained Earnings 40,000 What is the correct total of the trial balance?
Correct A. 100,000
B. 120,000
C. 140,000
D. 160,000

Correct Answer: A

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Question 4
A company uses the straight-line method of depreciation. The following information is given: Cost of asset 10,000, Useful life 5 years, Residual value 2,000 What is the annual depreciation expense?
Correct A. 1,600
B. 1,800
C. 2,000
D. 2,200

Correct Answer: A

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Question 5
A partnership has two partners: John and Jane. The partnership agreement states that John will receive 60% of the profits and Jane will receive 40%. The partnership has a net income of 100,000. What is John's share of the profits?
Correct A. 60,000
B. 70,000
C. 80,000
D. 90,000

Correct Answer: A

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Question 6
A company issued 10,000 shares of 1 par value at a premium of 2 per share. Calculate the total amount received from the issue of shares.
A. ₦20,000,000
Correct B. ₦22,000,000
C. ₦24,000,000
D. ₦26,000,000

Correct Answer: B

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Question 7
A company's cash book shows the following transactions: Debit: Cash 10,000, Credit: Bank 15,000. What is the effect of this transaction on the company's cash balance?
Correct A. ₦25,000 decrease
B. ₦25,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase

Correct Answer: A

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Question 8
A company's ledger shows the following account balances: Cash 10,000, Bank 15,000. What is the company's total cash balance?
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 9
A company issued 10,000 shares of 1 par value at a premium of 2 per share. Calculate the total amount received from the issue of shares.
A. ₦20,000,000
Correct B. ₦22,000,000
C. ₦24,000,000
D. ₦26,000,000

Correct Answer: B

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Question 10
A company's cash book shows the following transactions: Debit: Cash 10,000, Credit: Bank 15,000. What is the effect of this transaction on the company's cash balance?
Correct A. ₦25,000 decrease
B. ₦25,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase

Correct Answer: A

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Question 11
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's financial statements show a credit balance of ₦10,000 in the same account. What is the correct treatment of this discrepancy?
A. Debit the Rent Received account by ₦10,000 and credit the Rent Paid account by ₦10,000.
Correct B. Credit the Rent Received account by ₦10,000 and debit the Rent Paid account by ₦10,000.
C. Debit the Rent Received account by ₦15,000 and credit the Rent Paid account by ₦15,000.
D. Credit the Rent Received account by ₦15,000 and debit the Rent Paid account by ₦15,000.

Correct Answer: B

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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 amount of profit to be distributed to partner A?
Correct A. ₦45,000
B. ₦30,000
C. ₦60,000
D. ₦20,000

Correct Answer: A

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Question 13
A company prepares its financial statements for the year ended December 31, 2020. The company's trial balance shows a debit balance of ₦20,000 in the account 'Depreciation Expense'. However, the company's financial statements show a credit balance of ₦15,000 in the same account. What is the correct treatment of this discrepancy?
Correct A. Debit the Depreciation Expense account by ₦15,000 and credit the Accumulated Depreciation account by ₦15,000.
B. Credit the Depreciation Expense account by ₦15,000 and debit the Accumulated Depreciation account by ₦15,000.
C. Debit the Depreciation Expense account by ₦20,000 and credit the Accumulated Depreciation account by ₦20,000.
D. Credit the Depreciation Expense account by ₦20,000 and debit the Accumulated Depreciation account by ₦20,000.

Correct Answer: A

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Question 14
A company's financial statements for the year ended December 31, 2020, show a net loss of ₦50,000. However, the company's trial balance shows a debit balance of ₦20,000 in the account 'Salaries Expense'. What is the correct treatment of this discrepancy?
A. Debit the Salaries Expense account by ₦20,000 and credit the Salaries Payable account by ₦20,000.
Correct B. Credit the Salaries Expense account by ₦20,000 and debit the Salaries Payable account by ₦20,000.
C. Debit the Salaries Expense account by ₦30,000 and credit the Salaries Payable account by ₦30,000.
D. Credit the Salaries Expense account by ₦30,000 and debit the Salaries Payable account by ₦30,000.

Correct Answer: B

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Question 15
A company prepares its financial statements for the year ended December 31, 2020. The company's trial balance shows a debit balance of ₦10,000 in the account 'Rent Received'. However, the company's financial statements show a credit balance of ₦5,000 in the same account. What is the correct treatment of this discrepancy?
Correct A. Debit the Rent Received account by ₦5,000 and credit the Rent Paid account by ₦5,000.
B. Credit the Rent Received account by ₦5,000 and debit the Rent Paid account by ₦5,000.
C. Debit the Rent Received account by ₦10,000 and credit the Rent Paid account by ₦10,000.
D. Credit the Rent Received account by ₦10,000 and debit the Rent Paid account by ₦10,000.

Correct Answer: A

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Question 16
A company's cash book shows a balance of ₦150,000, but the bank statement shows a balance of ₦120,000. The bank charges a service fee of ₦5,000 and a minimum balance fee of ₦2,000. The company's cash book also shows a deposit of ₦20,000 and a withdrawal of ₦30,000. What is the correct balance in the company's cash book after reconciliation?
Correct A. ₦137,000
B. ₦142,000
C. ₦147,000
D. ₦152,000

Correct Answer: A

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Question 17
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a profit of ₦200,000, how much will partner A receive as their share of the profit?
Correct A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000

Correct Answer: A

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Question 18
A government agency has the following transactions: a grant of ₦500,000, a loan of ₦200,000, and a grant of ₦300,000. What is the total amount of grants received by the agency?
A. ₦800,000
B. ₦900,000
Correct C. ₦1,000,000
D. ₦1,100,000

Correct Answer: C

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Question 19
A company's trial balance shows the following accounts: Sales ₦500,000, Cost of Goods Sold ₦300,000, and Profit ₦200,000. What is the correct balance in the Profit account?
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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Question 20
A company has the following transactions: a purchase of ₦100,000, a sale of ₦150,000, and a purchase of ₦200,000. What is the correct balance in the company's cash account?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 21
A company's cash book shows a balance of ₦150,000, but the bank statement shows a balance of ₦120,000. The bank charges a service fee of ₦5,000 and a minimum balance fee of ₦2,000. The company's cash book also shows a deposit of ₦20,000 and a withdrawal of ₦30,000. What is the correct balance in the company's cash book after reconciliation?
Correct A. ₦137,000
B. ₦142,000
C. ₦147,000
D. ₦152,000

Correct Answer: A

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Question 22
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a profit of ₦200,000, how much will partner A receive as their share of the profit?
Correct A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000

Correct Answer: A

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Question 23
A government agency has the following transactions: a grant of ₦500,000, a loan of ₦200,000, and a grant of ₦300,000. What is the total amount of grants received by the agency?
A. ₦800,000
B. ₦900,000
Correct C. ₦1,000,000
D. ₦1,100,000

Correct Answer: C

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Question 24
A company's trial balance shows the following accounts: Sales ₦500,000, Cost of Goods Sold ₦300,000, and Profit ₦200,000. What is the correct balance in the Profit account?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: VIEW ANSWER

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Question 25
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the likely reason for the discrepancy?
Correct A. The company has an outstanding cheque.
B. The bank has charged a fee for an overdraft.
C. The company has deposited cash but not yet credited to the bank statement.
D. The company has an unrecorded bank loan.

Correct Answer: A

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