POST UTME CRAWFORD UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 5,000. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital £ 10,000, Credit Cash £ 10,000
B. Debit Share Capital £ 10,000, Credit Cash £ 10,500
C. Debit Share Capital £ 10,000, Credit Cash £ 10,000, Debit Issue Expenses £ 5,000
D. Debit Share Capital £ 10,000, Credit Cash £ 10,000, Credit Issue Expenses £ 5,000
Question 2
A company purchased a machine for ₦200,000. The machine has a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦36,000
B. ₦40,000
C. ₦38,000
D. ₦42,000
Question 3
A company's cash book shows a credit balance of ₦15,000 in the cash account. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?
A. The company has an outstanding cheque that has not been presented to the bank.
B. The company has deposited cash into the bank but the bank has not yet credited the account.
C. The company has withdrawn cash from the bank but the bank has not yet debited the account.
D. The company has an error in its cash book.
Question 4
A company's trial balance as at 31st December 2024 is as follows: Debit £ 10,000 £ 20,000 £ 30,000 £ 40,000 £ 50,000 £ 60,000 £ 70,000 £ 80,000 £ 90,000 £ 100,000 Credit £ 10,000 £ 20,000 £ 30,000 £ 40,000 £ 50,000 £ 60,000 £ 70,000 £ 80,000 £ 90,000 £ 100,000 Identify the error in the trial balance.
A. The debit and credit balances are equal.
B. The debit balances are greater than the credit balances.
C. The credit balances are greater than the debit balances.
D. The trial balance is not balanced.
Question 5
A company issues 5,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the total premium received.
A. ₦50,000
B. ₦50,500
C. ₦50,000
D. ₦50,500
Question 6
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and its residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 7
A company produces two products, X and Y. The selling price of X is ₦200 per unit, and the selling price of Y is ₦300 per unit. The company sells 500 units of X and 300 units of Y. Calculate the total revenue generated by the company.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 8
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. The partnership agreement states that profits will be shared in the ratio 3:2. If the profit for the year is ₦750,000, calculate the amount of profit that will be shared by A.
A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000
Question 9
A company is considering a proposal to invest in a new project. The project has a net present value of ₦100,000 and a payback period of 5 years. What is the correct decision regarding the project?
A. Accept the project.
B. Reject the project.
C. Pursue further analysis of the project.
D. Seek additional funding for the project.
Question 10
A business uses the percentage of completion method to account for construction contracts. If a contract is 75% complete and the total contract price is ₦1,500,000, what is the amount of revenue recognized if the contract price is ₦1,200,000?
A. ₦900,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 11
A company's manufacturing account shows a cost of ₦100,000 for direct materials and ₦50,000 for direct labor. Calculate the total prime cost.
A. ₦150,000
B. ₦100,000
C. ₦50,000
D. ₦200,000
Question 12
A company's cash book shows a balance of ₦20,000 in the cash account. However, the bank statement shows a balance of ₦30,000. Prepare the necessary bank reconciliation statement.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 13
A company uses the double-declining balance method of depreciation. If the asset's cost is ₦200,000 and its residual value is ₦20,000, what is the annual depreciation charge if the asset's useful life is 5 years?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 14
A company's trial balance shows an error of ₦1,000 in the debit side of the accounts payable account. The correct balance is ₦50,000. Prepare the necessary journal entry to correct the error.
A. Debit Accounts Payable ₦1,000, Credit Cash ₦1,000
B. Debit Accounts Payable ₦1,000, Credit Bank ₦1,000
C. Debit Cash ₦1,000, Credit Accounts Payable ₦1,000
D. Debit Bank ₦1,000, Credit Accounts Payable ₦1,000
Question 15
A company issues 10,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the amount received from debenture holders.
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000

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