POST UTME ELIZADE UNIVERSITY 2017 Accounting | Objective

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Question 1
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct journal entry to correct this error?
A. ₦15,000 debit to Rent Paid and ₦15,000 credit to Rent Received
B. ₦15,000 debit to Rent Received and ₦15,000 credit to Rent Paid
C. ₦15,000 debit to Rent Paid and ₦15,000 credit to Cash
D. ₦15,000 debit to Cash and ₦15,000 credit to Rent Paid
Question 2
A company's trial balance showed the following balances: Debtors: ₦80,000; Creditors: ₦40,000; Capital: ₦100,000; Profit: ₦20,000. What is the total amount of assets?
A. ₦140,000
B. ₦160,000
C. ₦180,000
D. ₦200,000
Question 3
A company issues 10,000, 10% shares of ₦10 each at a premium of ₦5. Calculate the amount received from the shareholders.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 4
A company issued 10,000 ordinary shares of ₦10 each at a premium of ₦5 per share. If the company received a total of ₦150,000, what is the amount received for the premium?
A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000
Question 5
A partnership is formed by two partners, A and B, who contribute ₦50,000 and ₦30,000 respectively. The profit is divided in the ratio 3:2. If the total profit is ₦60,000, calculate the share of profit of partner A.
A. ₦30,000
B. ₦36,000
C. ₦42,000
D. ₦48,000
Question 6
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct journal entry to correct this error?
A. ₦15,000 debit to Rent Paid and ₦15,000 credit to Rent Received
B. ₦15,000 debit to Rent Received and ₦15,000 credit to Rent Paid
C. ₦15,000 debit to Rent Paid and ₦15,000 credit to Cash
D. ₦15,000 debit to Cash and ₦15,000 credit to Rent Paid
Question 7
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦12,000,000, calculate the amount of premium received.
A. ₦5,000,000
B. ₦6,000,000
C. ₦7,000,000
D. ₦8,000,000
Question 8
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022 shows an increase in the value of its investments of ₦2,000,000. The company's retained earnings as at 31st December 2021 were ₦1,000,000. What is the company's retained earnings as at 31st December 2022?
A. ₦3,500,000
B. ₦3,000,000
C. ₦2,500,000
D. ₦2,000,000
Question 9
A public sector organization has the following transactions: Purchased office equipment for ₦500,000; paid salaries of ₦300,000; and received cash from customers of ₦200,000. Prepare the cash book and bank reconciliation statement.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 10
A company issued 10,000 ordinary shares of ₦10 each at a premium of ₦5 per share. If the company received a total of ₦150,000, what is the amount received for the premium?
A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000
Question 11
A partnership is formed between three individuals, A, B, and C, who contribute ₦200,000, ₦300,000, and ₦400,000 respectively. The partnership agreement states that the profits will be shared in the ratio 2:3:4. If the total profit for the year is ₦600,000, calculate the amount of profit that will be shared by B.
A. ₦180,000
B. ₦240,000
C. ₦300,000
D. ₦360,000
Question 12
A partnership is formed between two individuals, A and B, who contribute ₦200,000 and ₦300,000 respectively. The partnership agreement states that the profits will be shared in the ratio 3:2. If the total profit for the year is ₦420,000, calculate the amount of profit that will be shared by A.
A. ₦180,000
B. ₦240,000
C. ₦300,000
D. ₦360,000
Question 13
A company has a cash book balance of ₦ 50,000. The bank statement shows a balance of ₦ 60,000. The cash book shows a debit balance of ₦ 10,000 in the clearing account. What is the correct balance of the company's cash?
A. ₦ 40,000
B. ₦ 50,000
C. ₦ 60,000
D. ₦ 70,000
Question 14
A company's balance sheet as at 31st December 2022 shows a current asset of ₦500,000 and a non-current asset of ₦1,500,000. The company's current liability is ₦200,000 and its non-current liability is ₦800,000. What is the company's net worth?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000
Question 15
A company maintains the following cash book balances: Cash in hand ₦50,000, Bank balance ₦30,000, and Cash at Bank ₦20,000. Prepare a bank reconciliation statement.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000

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