Practice Post UTME EKSU accounting 2019 Past Questions

Question 1

A company maintains a cash book and a general ledger. The cash book shows a balance of ₦125,000 on December 31, 2018, and the general ledger shows a balance of ₦150,000 on the same date. The company's accountant has prepared a bank reconciliation statement that shows a difference of ₦20,000 between the cash book balance and the bank statement balance. What is the correct explanation for this difference?

A. The difference is due to a bank error.

B. The difference is due to a cash book error.

Correct C. The difference is due to a timing difference between the cash book and the bank statement.

D. The difference is due to a combination of bank and cash book errors.

Correct Answer: C

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Question 2

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's capital account shows a balance of ₦200,000 on January 1, 2018. During the year, partner A withdrew ₦50,000 and partner B invested an additional ₦20,000. What is the correct journal entry to record the withdrawal and investment?

A. Debit Partner's Capital ₦50,000, Credit Cash ₦50,000.

B. Debit Partner's Capital ₦20,000, Credit Cash ₦20,000.

Correct C. Debit Partner's Capital ₦50,000, Credit Cash ₦20,000.

D. Debit Cash ₦50,000, Credit Partner's Capital ₦50,000.

Correct Answer: C

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Question 3

A company uses the perpetual inventory system and has the following transactions during the month of January:

Correct A. Debit Purchases ₦10,000, Credit Inventory ₦10,000.

B. Debit Inventory ₦10,000, Credit Purchases ₦10,000.

C. Debit Purchases ₦20,000, Credit Inventory ₦20,000.

D. Debit Inventory ₦20,000, Credit Purchases ₦20,000.

Correct Answer: A

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Question 4

A company has the following transactions during the month of February:

Correct A. Debit Sales ₦30,000, Credit Cost of Goods Sold ₦30,000.

B. Debit Cost of Goods Sold ₦30,000, Credit Sales ₦30,000.

C. Debit Sales ₦40,000, Credit Cost of Goods Sold ₦40,000.

D. Debit Cost of Goods Sold ₦40,000, Credit Sales ₦40,000.

Correct Answer: A

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Question 5

A company uses the single-entry system and has the following transactions during the month of March:

A. Debit Cash ₦50,000, Credit Accounts Payable ₦50,000.

Correct B. Debit Accounts Payable ₦50,000, Credit Cash ₦50,000.

C. Debit Cash ₦20,000, Credit Accounts Payable ₦20,000.

D. Debit Accounts Payable ₦20,000, Credit Cash ₦20,000.

Correct Answer: B

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Question 6

A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If machine A operates for 24 hours and machine B operates for 18 hours, what is the total production of product X?

A. 60 units

Correct B. 72 units

C. 80 units

D. 90 units

Correct Answer: B

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Question 7

A partnership is formed between three individuals, A, B, and C, with initial capital contributions of ₦100,000, ₦80,000, and ₦120,000, respectively. After one year, the partnership earns a profit of ₦240,000. If A's share of the profit is ₦60,000, what is B's share of the profit?

Correct A. ₦48,000

B. ₦60,000

C. ₦72,000

D. ₦80,000

Correct Answer: A

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Question 8

A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C, with quantities of 100, 200, and 300 units, respectively. The costs of these inventories are ₦50, ₦60, and ₦70 per unit, respectively. If the total cost of the inventory is ₦24,000, what is the total value of the inventory?

A. ₦20,000

Correct B. ₦24,000

C. ₦28,000

D. ₦32,000

Correct Answer: B

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Question 9

A company has the following trial balance: Assets ₦100,000, Liabilities ₦80,000, and Equity ₦20,000. What is the company's net worth?

A. ₦20,000

B. ₦40,000

Correct C. ₦60,000

D. ₦80,000

Correct Answer: C

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Question 10

A company has the following financial statements: Income Statement: ₦100,000, Balance Sheet: ₦200,000. What is the company's return on equity?

A. 0.5

Correct B. 1.0

C. 1.5

D. 2.0

Correct Answer: B

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Question 11

The following is a trial balance for a government ministry: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦1,000 | | | Accounts Payable | | ₦500 | | Salaries Expense | ₦200 | | | Rent Expense | | ₦300 | | Total | ₦1,200 | ₦800 | What is the correct balance of the Cash account?

Correct A. ₦1,000

B. ₦1,200

C. ₦800

D. ₦500

Correct Answer: A

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Question 12

A company uses the cash basis of accounting. During the year, it received ₦10,000 in cash and paid ₦8,000 in cash. What is the net increase in cash?

Correct A. ₦2,000

B. ₦8,000

C. ₦10,000

D. ₦12,000

Correct Answer: A

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Question 13

A government ministry has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | ₦1,000 | | | 1/2 | Accounts Payable | | ₦500 | | 1/3 | Salaries Expense | ₦200 | | | 1/4 | Rent Expense | | ₦300 | What is the correct balance of the Cash account?

Correct A. ₦1,000

B. ₦1,200

C. ₦800

D. ₦500

Correct Answer: A

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Question 14

A company uses the accrual basis of accounting. During the year, it earned ₦10,000 in revenue and paid ₦8,000 in expenses. What is the net increase in net income?

Correct A. ₦2,000

B. ₦8,000

C. ₦10,000

D. ₦12,000

Correct Answer: A

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Question 15

A government ministry has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | ₦1,000 | | | 1/2 | Accounts Payable | | ₦500 | | 1/3 | Salaries Expense | ₦200 | | | 1/4 | Rent Expense | | ₦300 | What is the correct balance of the Cash account?

Correct A. ₦1,000

B. ₦1,200

C. ₦800

D. ₦500

Correct Answer: A

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Question 16

A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 5,000. Calculate the amount received from the issue of shares.

A. £ 50,000

Correct B. £ 55,000

C. £ 60,000

D. £ 65,000

Correct Answer: B

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Question 17

A company's trial balance showed the following balances: Accounts Payable £ 10,000, Accounts Receivable £ 8,000, Common Stock £ 50,000, Dividends £ 5,000. Prepare a balance sheet.

A. £ 63,000

B. £ 68,000

Correct C. £ 73,000

D. £ 78,000

Correct Answer: C

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Question 18

A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 2,500. Calculate the amount received from the issue of shares.

A. £ 25,000

Correct B. £ 27,500

C. £ 30,000

D. £ 32,500

Correct Answer: B

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Question 19

A company's trial balance showed the following balances: Accounts Payable £ 12,000, Accounts Receivable £ 9,000, Common Stock £ 60,000, Dividends £ 6,000. Prepare a balance sheet.

A. £ 72,000

B. £ 77,000

Correct C. £ 82,000

D. £ 87,000

Correct Answer: C

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Question 20

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

A. £ 55,000

B. £ 60,000

Correct C. £ 65,000

D. £ 70,000

Correct Answer: C

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Question 21

A company's trial balance shows a debit balance of ₦15,000 in the 'Office Equipment' account. However, the company's accounting records show that the equipment was purchased for ₦20,000 and has a remaining useful life of 3 years. Calculate the annual depreciation charge using the straight-line method.

A. ₦5,000

Correct B. ₦6,667

C. ₦8,333

D. ₦10,000

Correct Answer: B

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Question 22

A government agency is required to prepare a cash flow statement in accordance with the cash basis of accounting. The agency's cash inflows and outflows for the year are as follows: Cash Inflows: ₦10,000,000 from sales of goods and services ₦5,000,000 from interest on investments ₦2,000,000 from sale of assets Cash Outflows: ₦8,000,000 for purchase of goods and services ₦3,000,000 for payment of salaries ₦1,500,000 for payment of interest on loans Determine the net cash inflow for the year.

A. ₦1,500,000

Correct B. ₦2,500,000

C. ₦3,500,000

D. ₦4,500,000

Correct Answer: B

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Question 23

A company's bank reconciliation statement shows a difference of ₦10,000 between the company's cash book balance and the bank statement balance. The company's cash book balance is ₦50,000, and the bank statement balance is ₦60,000. Determine the cause of the difference.

A. Bank error

B. Company error

Correct C. Both bank and company errors

D. Neither bank nor company error

Correct Answer: C

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Question 24

A company's trial balance shows a credit balance of ₦20,000 in the 'Sales Returns' account. However, the company's accounting records show that the sales returns were actually ₦15,000. Determine the correct amount of sales returns.

Correct A. ₦15,000

B. ₦20,000

C. ₦25,000

D. ₦30,000

Correct Answer: A

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Question 25

A company's accounting records show that the company purchased office equipment for ₦30,000. However, the company's trial balance shows a debit balance of ₦20,000 in the 'Office Equipment' account. Determine the correct amount of depreciation.

A. ₦5,000

B. ₦10,000

Correct C. ₦15,000

D. ₦20,000

Correct Answer: C

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