POST UTME ELIZADE UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
C. ₦25,000
D. ₦30,000
Question 2
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
C. ₦190,000
D. ₦200,000
Question 3
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
B. Error in preparing the trial balance
C. Error in accounting for a transaction
D. Error in preparing the ledger accounts
Question 4
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
B. Error in preparing the trial balance
C. Error in accounting for a transaction
D. Error in preparing the ledger accounts
Question 5
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare a statement of cash flows.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 6
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
C. ₦72,000 and ₦48,000
D. ₦80,000 and ₦40,000
Question 7
A company uses the weighted average method of inventory costing. The following data is available: Beginning Inventory ₦30,000, Purchases ₦60,000, and Sales ₦80,000. Calculate the cost of goods sold.
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 8
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?
A. Increase in equity
B. Decrease in equity
C. No effect on equity
D. Increase in liabilities
Question 9
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?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 10
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
C. ₦0
D. ₦1,500
Question 11
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
B. ₦120,000
C. ₦100,000
D. ₦80,000
Question 12
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
C. ₦1,500,000
D. ₦2,000,000
Question 13
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
C. ₦140,000
D. ₦150,000
Question 14
A company uses the straight-line method of depreciation. The cost of a machine is ₦120,000 and its useful life is 5 years. Calculate the annual depreciation charge.
A. ₦24,000
B. ₦20,000
C. ₦30,000
D. ₦18,000
Question 15
A company's bank reconciliation statement shows a difference of ₦1,000 between the bank statement balance and the company's records. The bank statement balance is ₦50,000. Prepare a bank reconciliation statement.
A. ₦51,000
B. ₦49,000
C. ₦48,000
D. ₦47,000

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