Practice Post UTME ELIZADE UNIVERSITY accounting 2025 Past Questions

Question 1

A company uses the perpetual inventory system. On January 1, 2025, it had 500 units of a product in stock, costing ₦250 each. During the year, 300 units were sold, and 200 units were purchased at ₦300 each. Calculate the cost of goods sold for the year.

A. ₦75,000

Correct B. ₦80,000

C. ₦85,000

D. ₦90,000

Correct Answer: B

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Question 2

A company uses the perpetual inventory system. On January 1, 2025, it had 500 units of a product in stock, costing ₦250 each. During the year, 300 units were sold, and 200 units were purchased at ₦300 each. Calculate the cost of goods sold for the year.

A. ₦75,000

Correct B. ₦80,000

C. ₦85,000

D. ₦90,000

Correct Answer: B

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Question 3

A company uses the perpetual inventory system. On January 1, 2025, it had 500 units of a product in stock, costing ₦250 each. During the year, 300 units were sold, and 200 units were purchased at ₦300 each. Calculate the cost of goods sold for the year.

A. ₦75,000

Correct B. ₦80,000

C. ₦85,000

D. ₦90,000

Correct Answer: B

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Question 4

A company uses the perpetual inventory system. On January 1, 2025, it had 500 units of a product in stock, costing ₦250 each. During the year, 300 units were sold, and 200 units were purchased at ₦300 each. Calculate the cost of goods sold for the year.

A. ₦75,000

Correct B. ₦80,000

C. ₦85,000

D. ₦90,000

Correct Answer: B

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Question 5

A company uses the perpetual inventory system. On January 1, 2025, it had 500 units of a product in stock, costing ₦250 each. During the year, 300 units were sold, and 200 units were purchased at ₦300 each. Calculate the cost of goods sold for the year.

A. ₦75,000

Correct B. ₦80,000

C. ₦85,000

D. ₦90,000

Correct Answer: B

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Question 6

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?

A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

Correct B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid

D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

Correct Answer: B

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Question 7

A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. What is the total profit-sharing ratio?

Correct A. 3:2

B. 5:3

C. 6:4

D. 7:5

Correct Answer: A

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Question 8

A company's balance sheet shows a current ratio of 2:1. If the total current assets are ₦100,000 and the total current liabilities are ₦50,000, what is the total quick ratio?

A. 1:1

Correct B. 1:2

C. 2:1

D. 3:2

Correct Answer: B

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Question 9

A company's trial balance shows a debit balance of ₦20,000 in the account 'Salaries' and a credit balance of ₦15,000 in the account 'Wages'. What is the correct journal entry to correct this discrepancy?

Correct A. ₦5,000 debit to Salaries and ₦5,000 credit to Wages

B. ₦5,000 debit to Wages and ₦5,000 credit to Salaries

C. ₦10,000 debit to Salaries and ₦10,000 credit to Wages

D. ₦10,000 debit to Wages and ₦10,000 credit to Salaries

Correct Answer: A

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Question 10

A company's balance sheet shows a total asset of ₦150,000 and a total liability of ₦80,000. What is the total equity?

A. ₦20,000

B. ₦30,000

C. ₦40,000

Correct D. ₦50,000

Correct Answer: D

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Question 11

A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a discrepancy in the cash book. What is the most likely reason for this discrepancy?

A. The company has not recorded a deposit of ₦30,000.

Correct B. The company has not recorded a withdrawal of ₦30,000.

C. The company has not recorded a bank charge of ₦30,000.

D. The company has not recorded a credit note of ₦30,000.

Correct Answer: B

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Question 12

A government agency has the following transactions for the year: - Received ₦1,000,000 from the Ministry of Finance. - Paid ₦500,000 to a contractor. - Received ₦200,000 from a donor. - Paid ₦300,000 to a supplier. What is the total amount of revenue for the year?

Correct A. ₦1,200,000

B. ₦1,500,000

C. ₦1,800,000

D. ₦2,000,000

Correct Answer: A

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Question 13

A company's assets are depreciated using the straight-line method. If the asset's cost is ₦500,000 and its useful life is 5 years, what is the annual depreciation?

Correct A. ₦100,000

B. ₦80,000

C. ₦60,000

D. ₦50,000

Correct Answer: A

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Question 14

A company's trading account for the year shows a profit of ₦500,000. The company's balance sheet shows a total equity of ₦2,000,000. What is the company's return on equity?

Correct A. 25%

B. 30%

C. 35%

D. 40%

Correct Answer: A

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Question 15

A company's cash book shows a balance of ₦1,000,000. The company's bank statement shows a balance of ₦1,200,000. The difference is due to a discrepancy in the cash book. What is the most likely reason for this discrepancy?

A. The company has not recorded a deposit of ₦200,000.

Correct B. The company has not recorded a withdrawal of ₦200,000.

C. The company has not recorded a bank charge of ₦200,000.

D. The company has not recorded a credit note of ₦200,000.

Correct Answer: B

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Question 16

A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. During the year, A withdraws ₦100,000 for personal use, while B invests an additional ₦50,000. At the end of the year, the partnership realizes a profit of ₦200,000. Prepare the partnership's statement of profit or loss and the statement of changes in equity.

A. ₦300,000

Correct B. ₦350,000

C. ₦400,000

D. ₦450,000

Correct Answer: B

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Question 17

A company uses the cash book to record its transactions. The cash book shows a balance of ₦150,000 in the cash account. However, the bank statement shows a balance of ₦120,000. Prepare a bank reconciliation statement.

A. ₦30,000

Correct B. ₦40,000

C. ₦50,000

D. ₦60,000

Correct Answer: B

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Question 18

A company uses the single entry system to record its transactions. The company's cash book shows a balance of ₦200,000 in the cash account. However, the company's ledger shows a balance of ₦250,000. Prepare a statement of affairs.

A. ₦50,000

B. ₦60,000

Correct C. ₦70,000

D. ₦80,000

Correct Answer: C

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Question 19

A government agency uses the accrual basis of accounting to record its transactions. The agency's ledger shows a balance of ₦300,000 in the accounts payable account. However, the agency's cash book shows a balance of ₦250,000 in the cash account. Prepare a statement of financial position.

A. ₦50,000

B. ₦60,000

Correct C. ₦70,000

D. ₦80,000

Correct Answer: C

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Question 20

A manufacturing company uses the process costing method to assign costs to its products. The company's ledger shows a balance of ₦400,000 in the direct materials account. However, the company's cash book shows a balance of ₦350,000 in the cash account. Prepare a statement of cost of goods manufactured.

A. ₦50,000

B. ₦60,000

Correct C. ₦70,000

D. ₦80,000

Correct Answer: C

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Question 21

A company's manufacturing overheads are allocated to production departments using the following formula: Allocation = (Direct Labour Hours * Total Overheads) / Total Direct Labour Hours. If the company has a total of 10,000 direct labour hours and a total of ₦1,200,000 in manufacturing overheads, and Department A has 3,000 direct labour hours, what is the manufacturing overhead allocated to Department A?

Correct A. ₦360,000

B. ₦400,000

C. ₦420,000

D. ₦440,000

Correct Answer: A

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Question 22

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦900,000, how much profit will A receive?

Correct A. ₦540,000

B. ₦600,000

C. ₦660,000

D. ₦720,000

Correct Answer: A

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Question 23

A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. If the company receives a total of ₦550,000, what is the amount received from the issue of shares?

Correct A. ₦500,000

B. ₦520,000

C. ₦540,000

D. ₦560,000

Correct Answer: A

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Question 24

A company has a balance sheet as follows: Assets ₦1,500,000, Liabilities ₦800,000, and Share Capital ₦500,000. What is the amount of retained earnings?

Correct A. ₦200,000

B. ₦250,000

C. ₦300,000

D. ₦350,000

Correct Answer: A

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Question 25

A company issues 5,000 debentures of ₦100 each at a premium of ₦5 per debenture. If the company receives a total of ₦525,000, what is the amount received from the issue of debentures?

Correct A. ₦500,000

B. ₦520,000

C. ₦540,000

D. ₦560,000

Correct Answer: A

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