Practice Post UTME EKSU accounting 2020 Past Questions

Question 1

A company's trial balance shows a discrepancy of ₦25,000 between the debit and credit sides. The company's accountant has identified the following transactions that were not recorded in the journal: A purchase of office equipment for ₦15,000, a sale of goods for ₦20,000, and a payment of ₦10,000 to a creditor. What is the correct journal entry to record these transactions?

Correct A. Debit Office Equipment ₦15,000, Credit Cash ₦15,000

B. Debit Cash ₦20,000, Credit Sales ₦20,000

C. Debit Creditor ₦10,000, Credit Cash ₦10,000

D. Debit Office Equipment ₦15,000, Credit Sales ₦20,000

Correct Answer: A

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Question 2

A partnership agreement between two partners, John and Mary, states that John will receive 60% of the profits and Mary will receive 40%. If the total profit for the year is ₦120,000, how much will John receive?

Correct A. ₦72,000

B. ₦48,000

C. ₦60,000

D. ₦80,000

Correct Answer: A

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Question 3

A company's cash book shows the following transactions: A deposit of ₦10,000, a withdrawal of ₦5,000, and a payment of ₦8,000 to a creditor. What is the correct bank reconciliation statement?

Correct A. ₦3,000

B. ₦5,000

C. ₦10,000

D. ₦15,000

Correct Answer: A

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Question 4

A company's trial balance shows a discrepancy of ₦25,000 between the debit and credit sides. The company's accountant has identified the following errors: A debit of ₦10,000 was posted to the wrong account, a credit of ₦15,000 was omitted, and a debit of ₦20,000 was posted twice. What is the correct journal entry to correct these errors?

Correct A. Debit Wrong Account ₦10,000, Credit Correct Account ₦10,000

B. Debit Correct Account ₦15,000, Credit Wrong Account ₦15,000

C. Debit Correct Account ₦20,000, Credit Wrong Account ₦20,000

D. Debit Wrong Account ₦10,000, Credit Correct Account ₦15,000

Correct Answer: A

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Question 5

A company's cash book shows the following transactions: A deposit of ₦10,000, a withdrawal of ₦5,000, and a payment of ₦8,000 to a creditor. What is the correct bank reconciliation statement?

Correct A. ₦3,000

B. ₦5,000

C. ₦10,000

D. ₦15,000

Correct Answer: A

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Question 6

A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department incurred costs of ₦120,000 for direct materials and ₦80,000 for direct labor. The Assembly department incurred costs of ₦150,000 for direct materials and ₦100,000 for direct labor. The total cost of production for the company is ₦500,000. What is the cost of the Cutting department?

Correct A. ₦120,000

B. ₦150,000

C. ₦180,000

D. ₦200,000

Correct Answer: A

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Question 7

A company has two partners, A and B, who share profits in the ratio 3:2. The company's profit for the year is ₦1,200,000. If A's drawings for the year are ₦200,000, what is B's share of the profit?

A. ₦360,000

Correct B. ₦420,000

C. ₦480,000

D. ₦540,000

Correct Answer: B

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Question 8

A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, and Common Stock. The company's trial balance shows a debit balance of ₦100,000 in the Cash account and a credit balance of ₦50,000 in the Accounts Payable account. What is the balance in the Common Stock account?

A. ₦50,000

B. ₦100,000

Correct C. ₦150,000

D. ₦200,000

Correct Answer: C

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Question 9

A company has the following ledger accounts: Sales, Cost of Goods Sold, and Gross Profit. The company's trial balance shows a debit balance of ₦500,000 in the Sales account and a credit balance of ₦300,000 in the Cost of Goods Sold account. What is the balance in the Gross Profit account?

A. ₦100,000

B. ₦200,000

Correct C. ₦300,000

D. ₦400,000

Correct Answer: C

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Question 10

A company has the following ledger accounts: Sales, Cost of Goods Sold, and Gross Profit. The company's trial balance shows a debit balance of ₦500,000 in the Sales account and a credit balance of ₦300,000 in the Cost of Goods Sold account. What is the balance in the Gross Profit account?

A. ₦100,000

B. ₦200,000

Correct C. ₦300,000

D. ₦400,000

Correct Answer: C

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Question 11

A company issued 5,000 shares of 10 par value. If the market value of the shares is 25, what is the amount of shareholders' equity?

A. \10,000

B. \25,000

Correct C. \35,000

D. \50,000

Correct Answer: C

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Question 12

A company has the following transactions: Purchased office supplies for 1,000 cash, Sold office supplies for 500 cash, and Purchased office equipment for 2,000 cash. What is the net effect on cash?

A. \1,000

B. \500

Correct C. \-1,500

D. \2,000

Correct Answer: C

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Question 13

A company issued 10,000 shares of 5 par value. If the market value of the shares is 15, what is the amount of shareholders' equity?

A. \50,000

B. \150,000

Correct C. \200,000

D. \250,000

Correct Answer: C

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Question 14

A company has the following transactions: Purchased office supplies for 2,000 cash, Sold office supplies for 1,000 cash, and Purchased office equipment for 3,000 cash. What is the net effect on cash?

A. \2,000

B. \1,000

Correct C. \-2,000

D. \3,000

Correct Answer: C

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Question 15

A company issued 20,000 shares of 2 par value. If the market value of the shares is 10, what is the amount of shareholders' equity?

A. \40,000

B. \200,000

Correct C. \240,000

D. \280,000

Correct Answer: C

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Question 16

A company's cash book shows a debit balance of ₦1,500,000. The bank statement shows a credit balance of ₦1,800,000. The company's accounting records show a credit balance of ₦1,200,000. What is the correct explanation for the discrepancy?

A. The company has made a mistake in recording the cash transactions.

B. The bank has made a mistake in recording the cash transactions.

Correct C. The company has made a mistake in recording the bank transactions.

D. The company has made a mistake in recording the accounting transactions.

Correct Answer: C

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Question 17

A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦150,000 respectively. The profit-sharing ratio is 2:3. What is the amount of profit to be shared by A?

Correct A. ₦50,000

B. ₦75,000

C. ₦100,000

D. ₦125,000

Correct Answer: A

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Question 18

A company's bank reconciliation statement shows a difference of ₦20,000 between the cash book balance and the bank statement balance. The company's accounting records show a credit balance of ₦15,000. What is the correct explanation for the discrepancy?

A. The company has made a mistake in recording the cash transactions.

B. The bank has made a mistake in recording the cash transactions.

Correct C. The company has made a mistake in recording the bank transactions.

D. The company has made a mistake in recording the accounting transactions.

Correct Answer: C

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Question 19

A public sector organization has a cash book balance of ₦500,000 and a bank statement balance of ₦600,000. The accounting records show a credit balance of ₦400,000. What is the correct explanation for the discrepancy?

A. The organization has made a mistake in recording the cash transactions.

B. The bank has made a mistake in recording the cash transactions.

Correct C. The organization has made a mistake in recording the bank transactions.

D. The organization has made a mistake in recording the accounting transactions.

Correct Answer: C

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Question 20

A company's cash book shows a debit balance of ₦1,000,000. The bank statement shows a credit balance of ₦1,200,000. The company's accounting records show a credit balance of ₦800,000. What is the correct explanation for the discrepancy?

A. The company has made a mistake in recording the cash transactions.

B. The bank has made a mistake in recording the cash transactions.

Correct C. The company has made a mistake in recording the bank transactions.

D. The company has made a mistake in recording the accounting transactions.

Correct Answer: C

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Question 21

A company's trial balance shows an error of \pm 1,500 in the account 'Rent Paid'. If the company's accounting period is 12 months, what is the effect of this error on the company's net income?

Correct A. \pm 1,500

B. \pm 1,800

C. \pm 2,100

D. \pm 2,400

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's net income is \pm 12,000, what is partner A's share of the net income?

Correct A. \pm 7,200

B. \pm 8,000

C. \pm 8,400

D. \pm 9,600

Correct Answer: A

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Question 23

A company uses the straight-line method of depreciation for its assets. If the asset's cost is \pm 10,000 and its useful life is 5 years, what is the annual depreciation expense?

Correct A. \pm 2,000

B. \pm 2,500

C. \pm 3,000

D. \pm 3,500

Correct Answer: A

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Question 24

A company's balance sheet shows an asset of \pm 20,000 with a book value of \pm 15,000. If the company uses the net realizable value method of asset valuation, what is the asset's net realizable value?

A. \pm 15,000

B. \pm 18,000

Correct C. \pm 20,000

D. \pm 22,000

Correct Answer: C

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Question 25

A company's trial balance shows an error of \pm 1,000 in the account 'Salaries Paid'. If the company's accounting period is 12 months, what is the effect of this error on the company's net income?

Correct A. \pm 1,000

B. \pm 1,200

C. \pm 1,400

D. \pm 1,600

Correct Answer: A

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