POST UTME COAL CITY UNIVERSITY 2022 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 2022 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦475,000
Correct B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: B

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Question 2
A company's trial balance showed an error of ₦5,000 in the balance of the 'Sales' account. The correct balance should be ₦25,000. What is the effect of this error on the company's net profit?
Correct A. ₦5,000 decrease
B. ₦5,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase

Correct Answer: A

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Question 3
A company purchased a machine for ₦120,000 and depreciated it by 10% per annum. Calculate the book value of the machine after 3 years.
Correct A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: A

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Question 4
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from share capital.
A. ₦500,000
Correct B. ₦550,000
C. ₦600,000
D. ₦650,000

Correct Answer: B

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Question 5
A company's trial balance showed an error of ₦10,000 in the balance of the 'Purchases' account. The correct balance should be ₦50,000. What is the effect of this error on the company's net profit?
Correct A. ₦10,000 decrease
B. ₦10,000 increase
C. ₦20,000 decrease
D. ₦20,000 increase

Correct Answer: A

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Question 6
A company's trial balance shows a discrepancy of ₦50,000 between the debit and credit sides. The company's accountant suspects that the error occurred in the journal entry for the purchase of office equipment. The accountant has identified two possible errors: (i) the debit entry for the purchase of office equipment was overstated by ₦20,000, and (ii) the credit entry for the purchase of office equipment was understated by ₦30,000. Which of the following journal entries would correct the error?
A. Debit Office Equipment ₦20,000, Credit Cash ₦20,000
B. Debit Office Equipment ₦30,000, Credit Cash ₦30,000
Correct C. Debit Office Equipment ₦20,000, Credit Cash ₦30,000
D. Debit Office Equipment ₦30,000, Credit Cash ₦20,000

Correct Answer: C

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Question 7
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Office Equipment | | ₦8,000 | | 3 Jan | Cash | | ₦12,000 | | 4 Jan | Office Equipment | ₦6,000 | | | 5 Jan | Cash | | ₦4,000 | What is the balance in the cash account at the end of January?
A. ₦2,000
Correct B. ₦4,000
C. ₦6,000
D. ₦8,000

Correct Answer: B

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Question 8
A company's balance sheet at the end of the year shows the following: | Assets | ₦ | Liabilities | ₦ | Equity | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | Share Capital | 50,000 | | Office Equipment | 30,000 | Creditors | 15,000 | Retained Earnings | 25,000 | | Investments | 40,000 | | | | | | | | | | | | What is the total amount of the company's liabilities?
A. ₦35,000
B. ₦40,000
Correct C. ₦45,000
D. ₦50,000

Correct Answer: C

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Question 9
A company's trial balance shows the following: | Account | Debit | Credit | | --- | --- | --- | | Sales | | ₦100,000 | | Purchases | ₦80,000 | | | Wages | | ₦20,000 | | | | | What is the net profit of the company?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 10
A company's balance sheet at the end of the year shows the following: | Assets | ₦ | Liabilities | ₦ | Equity | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | Share Capital | 50,000 | | Office Equipment | 30,000 | Creditors | 15,000 | Retained Earnings | 25,000 | | Investments | 40,000 | | | | | | | | | | | | What is the total amount of the company's assets?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 11
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance sheet as at 31st December 2022 shows a current asset of ₦2,500,000 and a non-current asset of ₦3,000,000. What is the value of the company's equity?
Correct A. ₦6,000,000
B. ₦5,500,000
C. ₦6,500,000
D. ₦7,000,000

Correct Answer: A

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Question 12
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 5,000 debentures of ₦100 each. What is the total amount received from the issue of shares and debentures?
A. ₦1,250,000
B. ₦1,500,000
Correct C. ₦1,750,000
D. ₦2,000,000

Correct Answer: C

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Question 13
A company's manufacturing account for the year ended 31st December 2022 shows a cost of goods sold of ₦4,000,000. The company's selling price per unit is ₦200. What is the company's gross profit?
A. ₦800,000
B. ₦1,000,000
Correct C. ₦1,200,000
D. ₦1,500,000

Correct Answer: C

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Question 14
A company's balance sheet as at 31st December 2022 shows a current liability of ₦1,500,000 and a non-current liability of ₦2,000,000. What is the total amount of the company's liabilities?
A. ₦3,500,000
B. ₦4,000,000
Correct C. ₦4,500,000
D. ₦5,000,000

Correct Answer: C

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Question 15
A company's partnership account for the year ended 31st December 2022 shows a profit of ₦1,000,000. The partners' capital accounts are as follows: A ₦500,000, B ₦300,000, C ₦200,000. What is the ratio of the partners' capital?
Correct A. 1:1:1
B. 2:1:1
C. 3:2:1
D. 4:3:2

Correct Answer: A

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦475,000
B. ₦480,000
Correct C. ₦485,000
D. ₦490,000

Correct Answer: C

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Question 17
A manufacturing company uses a job costing system. The following data are available for the month of January: Direct Materials: ₦120,000; Direct Labour: ₦80,000; Factory Overheads: ₦60,000. Calculate the total cost of production.
A. ₦260,000
B. ₦270,000
Correct C. ₦280,000
D. ₦290,000

Correct Answer: C

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Question 18
A partnership is formed between two individuals, A and B, with a capital of ₦200,000 and ₦300,000 respectively. After one year, the profit is ₦50,000. The profit is divided in the ratio of 2:3. Calculate the amount of profit shared by A.
A. ₦20,000
Correct B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: B

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Question 19
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2. Calculate the amount received from the shareholders.
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 20
A company has the following balance sheet: Assets ₦500,000; Liabilities ₦200,000; Capital ₦300,000. Calculate the ratio of capital to liabilities.
Correct A. 1:2
B. 2:3
C. 3:4
D. 4:5

Correct Answer: A

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Question 21
A company's cash book shows a balance of ₦250,000, but the bank statement shows a balance of ₦280,000. The bank statement also shows a debit of ₦10,000 for a bank charge. What is the correct balance in the company's cash book?
Correct A. ₦260,000
B. ₦240,000
C. ₦230,000
D. ₦270,000

Correct Answer: A

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Question 22
A company uses the double-entry system of accounting. It records the following transactions in its journal: Debit Cash ₦10,000, Credit Purchases ₦10,000. What is the effect of this transaction on the company's cash balance?
A. Increase by ₦10,000
Correct B. Decrease by ₦10,000
C. No effect
D. Increase by ₦20,000

Correct Answer: B

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Question 23
A government agency is required to prepare a trial balance. The following balances are extracted from the ledger accounts: Debit ₦100,000, Credit ₦120,000. What is the correct balance in the trial balance?
A. ₦20,000
B. ₦100,000
C. ₦120,000
Correct D. ₦140,000

Correct Answer: D

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Question 24
A company's ledger account for Sales shows a balance of ₦500,000. The company's trial balance shows a balance of ₦600,000. What is the correct balance in the Sales account?
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 25
A company uses the single-entry system of accounting. It records the following transactions in its journal: Debit Sales ₦20,000, Credit Purchases ₦10,000. What is the effect of this transaction on the company's profit?
Correct A. Increase by ₦10,000
B. Decrease by ₦10,000
C. No effect
D. Increase by ₦20,000

Correct Answer: A

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