Practice Post UTME COAL CITY UNIVERSITY accounting 2024 Past Questions

Question 1

A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.

Correct A. ₦12,500

B. ₦12,000

C. ₦11,500

D. ₦11,000

Correct Answer: A

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Question 2

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 500 | | 3 Jan | Cash | | 200 | | 4 Jan | Bank | | 300 | | 5 Jan | Cash | | 100 | What is the balance in the cash book?

Correct A. ₦1,300

B. ₦1,400

C. ₦1,500

D. ₦1,600

Correct Answer: A

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Question 3

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. Calculate the profit to be shared by A.

Correct A. ₦18,000

B. ₦20,000

C. ₦22,000

D. ₦24,000

Correct Answer: A

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Question 4

A company's trading account shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Sales | 10,000 | | | 2 Jan | Purchases | | 8,000 | | 3 Jan | Sales | | 2,000 | | 4 Jan | Purchases | | 1,000 | What is the gross profit?

A. ₦2,000

Correct B. ₦3,000

C. ₦4,000

D. ₦5,000

Correct Answer: B

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Question 5

A company's balance sheet shows the following assets: | Asset | Value | | --- | --- | | Cash | 10,000 | | Debtors | 20,000 | | Stock | 30,000 | | Plant and Machinery | 40,000 | What is the total value of the assets?

A. ₦100,000

B. ₦120,000

C. ₦140,000

Correct D. ₦160,000

Correct Answer: D

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Question 6

A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the likely reason for the discrepancy?

A. The company has not yet deposited the cash into the bank.

Correct B. The bank has not yet credited the company's account for the deposited cash.

C. The company has not yet paid the bank charges.

D. The company has not yet received the bank statement.

Correct Answer: B

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Question 7

A company's trading account shows a profit of ₦200,000. However, the profit and loss account shows a loss of ₦150,000. What is the likely reason for the discrepancy?

Correct A. The company has not yet recorded the depreciation of assets.

B. The company has not yet recorded the provision for bad debts.

C. The company has not yet recorded the interest on loans.

D. The company has not yet recorded the sale of assets.

Correct Answer: A

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Question 8

A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the likely reason for the discrepancy?

A. The company has not yet recorded the depreciation of assets.

B. The company has not yet recorded the provision for bad debts.

C. The company has not yet recorded the interest on loans.

Correct D. The company has not yet recorded the sale of assets.

Correct Answer: D

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Question 9

A company's cash book shows a balance of ₦200,000. However, the bank statement shows a balance of ₦250,000. What is the likely reason for the discrepancy?

A. The company has not yet deposited the cash into the bank.

Correct B. The bank has not yet credited the company's account for the deposited cash.

C. The company has not yet paid the bank charges.

D. The company has not yet received the bank statement.

Correct Answer: B

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Question 10

A company's trading account shows a profit of ₦300,000. However, the profit and loss account shows a loss of ₦200,000. What is the likely reason for the discrepancy?

A. The company has not yet recorded the depreciation of assets.

B. The company has not yet recorded the provision for bad debts.

Correct C. The company has not yet recorded the interest on loans.

D. The company has not yet recorded the sale of assets.

Correct Answer: C

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Question 11

A company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials have a cost of ₦100,000 and a weightage of 20%. The work-in-progress has a cost of ₦150,000 and a weightage of 30%. The finished goods have a cost of ₦200,000 and a weightage of 50%. What is the total value of the inventory?

A. ₦150,000

B. ₦200,000

C. ₦250,000

Correct D. ₦300,000

Correct Answer: D

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Question 12

A company has the following transactions: Purchased raw materials for ₦100,000, purchased work-in-progress for ₦150,000, and sold finished goods for ₦200,000. The company uses the perpetual inventory system. What is the total value of the inventory?

A. ₦150,000

B. ₦200,000

C. ₦250,000

Correct D. ₦300,000

Correct Answer: D

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Question 13

A company has the following transactions: Purchased raw materials for ₦100,000, purchased work-in-progress for ₦150,000, and sold finished goods for ₦200,000. The company uses the periodic inventory system. What is the total value of the inventory?

A. ₦150,000

B. ₦200,000

C. ₦250,000

Correct D. ₦300,000

Correct Answer: D

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Question 14

A company has the following transactions: Purchased raw materials for ₦100,000, purchased work-in-progress for ₦150,000, and sold finished goods for ₦200,000. The company uses the weighted average method to value its inventory. What is the total value of the inventory?

A. ₦150,000

B. ₦200,000

C. ₦250,000

Correct D. ₦300,000

Correct Answer: D

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Question 15

A company has the following transactions: Purchased raw materials for ₦100,000, purchased work-in-progress for ₦150,000, and sold finished goods for ₦200,000. The company uses the first-in-first-out (FIFO) method to value its inventory. What is the total value of the inventory?

A. ₦150,000

B. ₦200,000

C. ₦250,000

Correct D. ₦300,000

Correct Answer: D

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Question 16

A company's trial balance shows a debit balance of ₦15,000 in the 'Office Equipment' account. However, the company's accountant has forgotten to record a purchase of office equipment worth ₦10,000. What is the correct adjustment to be made to the trial balance?

Correct A. ₦10,000 debit to 'Office Equipment' and ₦10,000 credit to 'Cash'

B. ₦10,000 credit to 'Office Equipment' and ₦10,000 debit to 'Cash'

C. ₦10,000 debit to 'Office Equipment' and ₦10,000 credit to 'Office Expenses'

D. ₦10,000 credit to 'Office Equipment' and ₦10,000 debit to 'Office Expenses'

Correct Answer: A

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Question 17

A company uses the single-entry system of accounting. The company's cash book shows a balance of ₦50,000. However, the company's accountant has forgotten to record a cash receipt of ₦20,000. What is the correct adjustment to be made to the cash book?

Correct A. ₦20,000 debit to 'Cash' and ₦20,000 credit to 'Sales'

B. ₦20,000 credit to 'Cash' and ₦20,000 debit to 'Sales'

C. ₦20,000 debit to 'Cash' and ₦20,000 credit to 'Office Expenses'

D. ₦20,000 credit to 'Cash' and ₦20,000 debit to 'Office Expenses'

Correct Answer: A

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Question 18

A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank statement balance. The company's accountant has forgotten to record a bank charge of ₦2,000. What is the correct adjustment to be made to the bank reconciliation statement?

Correct A. ₦2,000 debit to 'Bank Charges' and ₦2,000 credit to 'Cash'

B. ₦2,000 credit to 'Bank Charges' and ₦2,000 debit to 'Cash'

C. ₦2,000 debit to 'Bank Charges' and ₦2,000 credit to 'Office Expenses'

D. ₦2,000 credit to 'Bank Charges' and ₦2,000 debit to 'Office Expenses'

Correct Answer: A

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Question 19

A company uses the double-entry system of accounting. The company's ledger shows a debit balance of ₦10,000 in the 'Office Equipment' account. However, the company's accountant has forgotten to record a purchase of office equipment worth ₦5,000. What is the correct adjustment to be made to the ledger?

Correct A. ₦5,000 debit to 'Office Equipment' and ₦5,000 credit to 'Cash'

B. ₦5,000 credit to 'Office Equipment' and ₦5,000 debit to 'Cash'

C. ₦5,000 debit to 'Office Equipment' and ₦5,000 credit to 'Office Expenses'

D. ₦5,000 credit to 'Office Equipment' and ₦5,000 debit to 'Office Expenses'

Correct Answer: A

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Question 20

A company's trial balance shows a credit balance of ₦20,000 in the 'Office Equipment' account. However, the company's accountant has forgotten to record a sale of office equipment worth ₦10,000. What is the correct adjustment to be made to the trial balance?

Correct A. ₦10,000 debit to 'Office Equipment' and ₦10,000 credit to 'Sales'

B. ₦10,000 credit to 'Office Equipment' and ₦10,000 debit to 'Sales'

C. ₦10,000 debit to 'Office Equipment' and ₦10,000 credit to 'Office Expenses'

D. ₦10,000 credit to 'Office Equipment' and ₦10,000 debit to 'Office Expenses'

Correct Answer: A

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Question 21

In a partnership with a 60% profit-sharing ratio, a partner's capital contribution is 1:3 compared to another partner. If the total profit is ₦120,000, how much will the partner with a 1:3 capital contribution ratio receive?

A. ₦18,000

Correct B. ₦24,000

C. ₦30,000

D. ₦36,000

Correct Answer: B

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Question 22

A company's manufacturing department has a production cost of ₦150,000 and a selling price of ₦250,000. If the company sells 500 units, what is the gross profit?

A. ₦250,000

Correct B. ₦375,000

C. ₦500,000

D. ₦750,000

Correct Answer: B

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Question 23

A public sector organization has a budget of ₦10 million for a project. If the organization spends 80% of the budget on personnel and 10% on equipment, what percentage of the budget is left for other expenses?

A. 10%

B. 20%

Correct C. 30%

D. 40%

Correct Answer: C

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Question 24

A company uses the straight-line method of depreciation for a machine that cost ₦500,000. If the machine has a useful life of 5 years, what is the annual depreciation?

A. ₦50,000

B. ₦75,000

Correct C. ₦100,000

D. ₦125,000

Correct Answer: C

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Question 25

A company's financial statements show an increase in assets of ₦200,000 and an increase in liabilities of ₦150,000. What is the net increase in equity?

A. ₦25,000

B. ₦50,000

C. ₦75,000

Correct D. ₦100,000

Correct Answer: D

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