POST UTME ELIZADE UNIVERSITY 2019 Accounting | Objective

Are you preparing for POST UTME ELIZADE UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for the discrepancy?
A. The company has an overdraft facility.
B. The bank has charged a service fee.
Correct C. The company has deposited cash but not yet credited to the bank statement.
D. The company has withdrawn cash but not yet debited from the bank statement.

Correct Answer: C

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Question 2
A company purchases a machine for ₦500,000 and depreciates it by 20% per annum using the straight-line method. What is the book value of the machine after 3 years?
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 3
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
Correct D. ₦25,000

Correct Answer: D

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Question 4
A company's manufacturing account shows the following: Materials purchased ₦50,000, Labour cost ₦30,000, Overheads ₦20,000. What is the total cost of production?
A. ₦100,000
Correct B. ₦120,000
C. ₦100,000
D. ₦80,000

Correct Answer: B

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Question 5
A company's ledger account shows the following: Debit balance ₦50,000, Credit balance ₦30,000. What is the net effect on the company's equity?
Correct A. Increase in equity
B. Decrease in equity
C. No effect on equity
D. Increase in liabilities

Correct Answer: A

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Question 6
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

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Question 7
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 500 | | 3 Jan | Cash | | 500 | What is the balance in the cash book?
A. ₦500
B. ₦1,000
Correct C. ₦0
D. ₦1,500

Correct Answer: C

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Question 8
A company's manufacturing account shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Work-in-progress | 10,000 | | | 2 Jan | Direct materials | | 5,000 | | 3 Jan | Direct labour | | 3,000 | | 4 Jan | Factory overheads | | 2,000 | What is the total cost of production?
Correct A. ₦20,000
B. ₦15,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

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Question 9
A company's ledger account shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Sales | 10,000 | | | 2 Jan | Purchases | | 5,000 | | 3 Jan | Returns outwards | | 2,000 | | 4 Jan | Returns inwards | | 1,000 | What is the net profit?
Correct A. ₦4,000
B. ₦3,000
C. ₦2,000
D. ₦1,000

Correct Answer: A

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Question 10
A company's bank reconciliation statement shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 2 Jan | Bank | | 5,000 | | 3 Jan | Cash | | 2,000 | | 4 Jan | Bank | | 1,000 | What is the balance in the bank account?
Correct A. ₦4,000
B. ₦3,000
C. ₦2,000
D. ₦1,000

Correct Answer: A

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Question 11
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 12
A trader's trial balance as at 31st December, 2019 showed: Capital Account ₦50,000, Drawings ₦20,000, Sales ₦150,000, Purchases ₦100,000, Rent Received ₦10,000, Rent Paid ₦5,000. Prepare the Trading and Profit and Loss Account for the year.
A. ₦40,000
B. ₦50,000
Correct C. ₦60,000
D. ₦70,000

Correct Answer: C

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Question 13
A company's balance sheet as at 31st December, 2019 showed: Equity Share Capital ₦100,000, 10% Debentures ₦50,000, Profit and Loss Account ₦20,000. Prepare the Balance Sheet.
A. ₦170,000
B. ₦180,000
Correct C. ₦190,000
D. ₦200,000

Correct Answer: C

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Question 14
A company's control account showed: Cash at Bank ₦50,000, Bank Overdraft ₦20,000, Cash in Hand ₦10,000. Prepare the Cash Account.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 15
A company's trial balance as at 31st December, 2019 showed: Capital Account ₦50,000, Drawings ₦20,000, Sales ₦150,000, Purchases ₦100,000, Rent Received ₦10,000, Rent Paid ₦5,000. Prepare the Balance Sheet.
A. ₦120,000
B. ₦130,000
Correct C. ₦140,000
D. ₦150,000

Correct Answer: C

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Question 16
A company issued 10,000, 10% debentures of ₦100 each. The debentures are redeemable at a premium of 5% after 5 years. Calculate the amount of premium to be paid on redemption.
A. ₦500,000
B. ₦1,000,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

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Question 17
A firm has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | | | Bank | | ₦20,000 | | Sales | ₦50,000 | | | Purchases | | ₦30,000 | | Capital | | ₦40,000 | What is the correct balance of the Cash account?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 18
A company has two partners, A and B, who share profits and losses in the ratio 3:2. The capital accounts of A and B are ₦60,000 and ₦40,000 respectively. What is the ratio of their share of profits?
Correct A. 3:2
B. 2:3
C. 4:3
D. 3:4

Correct Answer: A

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Question 19
A firm has the following bank reconciliation statement: | Date | Debit | Credit | | --- | --- | --- | | 2022-01-01 | ₦10,000 | | | 2022-01-15 | | ₦5,000 | | 2022-01-20 | ₦20,000 | | What is the correct balance of the Bank account?
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 20
A company issued 10,000, 10% debentures of ₦100 each. The debentures are redeemable at a premium of 5% after 5 years. Calculate the amount of premium to be paid on redemption.
A. ₦500,000
B. ₦1,000,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

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Question 21
In a self-balancing ledger, the personal account of a partner is closed by transferring its balance to the capital account. What is the correct journal entry for this transaction?
A. Debit Partner's Capital, Credit Partner's Personal Account
B. Debit Partner's Personal Account, Credit Partner's Capital
Correct C. Debit Partner's Capital, Credit Partner's Personal Account
D. Debit Partner's Personal Account, Debit Partner's Capital

Correct Answer: C

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Question 22
A company's trial balance shows a discrepancy of ₦5,000 between the debit and credit sides. What is the likely cause of this discrepancy?
A. Error in posting transactions
Correct B. Error in preparing the trial balance
C. Error in accounting for a transaction
D. Error in preparing the ledger accounts

Correct Answer: B

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Question 23
A partnership has two partners, A and B. The partnership agreement states that profits and losses are shared in the ratio 3:2. If the profit for the year is ₦120,000, how much will each partner receive?
A. ₦60,000 and ₦60,000
B. ₦90,000 and ₦30,000
Correct C. ₦72,000 and ₦48,000
D. ₦80,000 and ₦40,000

Correct Answer: C

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Question 24
A company's ledger accounts show a debit balance of ₦10,000 in the account 'Sales'. What is the correct journal entry to close this account?
A. Debit Sales, Credit Profit and Loss
Correct B. Debit Profit and Loss, Credit Sales
C. Debit Sales, Credit Profit and Loss
D. Debit Profit and Loss, Debit Sales

Correct Answer: B

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Question 25
A company's trial balance shows a discrepancy of ₦5,000 between the debit and credit sides. What is the likely cause of this discrepancy?
A. Error in posting transactions
Correct B. Error in preparing the trial balance
C. Error in accounting for a transaction
D. Error in preparing the ledger accounts

Correct Answer: B

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