POST UTME ELIZADE UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses a double-entry system to record its transactions. The company's ledger shows the following entries: Debit Cash ₦100,000, Credit Accounts Payable ₦50,000, and Debit Common Stock ₦200,000. What is the total equity of the company?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 2
A company's profit and loss account for the year ended 31st December 2022 is as follows: Gross Profit: ₦1,000,000; Operating Expenses: ₦500,000; Depreciation: ₦200,000. Calculate the net profit for the year.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 3
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 4
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 1,000 | | | 2 | Bank | | 1,500 | | 3 | Cash | | 800 | | 4 | Bank | | 1,200 | | 5 | Cash | | 1,000 | What is the balance in the cash book?
A. ₦1,200
B. ₦2,200
C. ₦3,200
D. ₦4,200
Question 5
A company issued 5,000, 10% preference shares of ₦10 each at a premium of ₦2. Calculate the total amount received from the issue of these shares.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 6
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 1,000 | | | 2 | Bank | | 1,500 | | 3 | Cash | | 800 | | 4 | Bank | | 1,200 | | 5 | Cash | | 1,000 | What is the balance in the bank account?
A. ₦1,200
B. ₦2,200
C. ₦3,200
D. ₦4,200
Question 7
A company's profit and loss account for the year ended 31st December 2022 is as follows: Gross Profit: ₦1,000,000; Operating Expenses: ₦500,000; Depreciation: ₦200,000. Calculate the net profit for the year.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 8
A company's balance sheet as at 31st December 2022 is as follows: Share Capital: ₦500,000; Reserves: ₦300,000; Debtors: ₦200,000; Creditors: ₦100,000. Calculate the net worth of the company.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 9
A company's balance sheet shows the following information: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. What is the company's debt-to-equity ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 10
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦900,000
B. ₦950,000
C. ₦990,000
D. ₦1,000,000
Question 11
A partnership of three persons has a capital of ₦1,500,000. The profits are to be divided in the ratio of 3:5:7. If the profits for the year are ₦450,000, calculate the share of each partner.
A. ₦135,000
B. ₦225,000
C. ₦315,000
D. ₦405,000
Question 12
A company prepares a trial balance. The debit balance of the accounts payable account is ₦150,000, and the credit balance of the accounts receivable account is ₦200,000. Calculate the net effect on the balance sheet.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 13
A company has a capital of ₦2,000,000 and a reserve of ₦500,000. The company also has a profit of ₦750,000. Prepare a balance sheet for the company.
A. ₦3,250,000
B. ₦3,500,000
C. ₦3,750,000
D. ₦4,000,000
Question 14
A company uses the double-entry system. The journal entry for the purchase of an asset is: Debit: Asset = ₦500,000, Credit: Cash = ₦500,000. Calculate the net effect on the balance sheet.
A. ₦0
B. ₦500,000
C. ₦1,000,000
D. ₦1,500,000
Question 15
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount of premium received.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000

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