POST UTME ESUT 2020 Accounting | Objective

Are you preparing for POST UTME ESUT exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A public sector organization has a budget of ₦500 million for the year. The organization has the following expenses: ₦150 million for salaries, ₦100 million for rent, and ₦50 million for utilities. What is the remaining budget for the organization?
Correct A. ₦200 million
B. ₦250 million
C. ₦300 million
D. ₦350 million

Correct Answer: A

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Question 2
A company uses the self-balancing ledger system. The following transactions are recorded: Debit: ₦100,000 to Cash, ₦50,000 to Accounts Payable, and Credit: ₦150,000 to Sales. What is the net effect on the company's cash balance?
Correct A. ₦50,000 increase
B. ₦50,000 decrease
C. ₦100,000 increase
D. ₦100,000 decrease

Correct Answer: A

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Question 3
A trader has the following transactions: Purchases: ₦200,000, Sales: ₦300,000, and Returns: ₦20,000. What is the net profit of the trader?
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 4
A company has the following balance sheet: ₦500,000 in Cash, ₦200,000 in Accounts Payable, and ₦300,000 in Sales. What is the net worth of the company?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 5
A company uses the single-entry system. The following transactions are recorded: Debit: ₦100,000 to Cash, ₦50,000 to Accounts Payable, and Credit: ₦150,000 to Sales. What is the net effect on the company's cash balance?
Correct A. ₦50,000 increase
B. ₦50,000 decrease
C. ₦100,000 increase
D. ₦100,000 decrease

Correct Answer: A

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Question 6
A company's cash book shows a credit balance of ₦15,000 in the cash account. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?
Correct A. The company has an outstanding cheque that has not been presented to the bank.
B. The company has deposited cash into the bank but the bank has not yet credited the account.
C. The company has withdrawn cash from the bank but the bank has not yet debited the account.
D. The company has an error in its cash book.

Correct Answer: A

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Question 7
A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department has a production cost of ₦10,000 and the Assembly department has a production cost of ₦15,000. What is the total production cost of the product?
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 8
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 9
A company's bank statement shows a debit balance of ₦20,000. However, the company's cash book shows a credit balance of ₦15,000. What is the correct explanation for this discrepancy?
A. The company has an outstanding cheque that has not been presented to the bank.
B. The company has deposited cash into the bank but the bank has not yet credited the account.
Correct C. The company has withdrawn cash from the bank but the bank has not yet debited the account.
D. The company has an error in its cash book.

Correct Answer: C

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Question 10
A company issues 500 shares of ₦20 each at a premium of ₦10 per share. What is the total amount received from the issue of shares?
A. ₦15,000
B. ₦20,000
C. ₦25,000
Correct D. ₦30,000

Correct Answer: D

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Question 11
A company issues 10,000 shares of 1 par value at a premium of 3 per share. Calculate the total amount received from the issue of shares.
A. ₦30,000
B. ₦40,000
C. ₦50,000
Correct D. ₦60,000

Correct Answer: D

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Question 12
A company's balance sheet shows an increase in its current assets by ₦50,000 and a decrease in its current liabilities by ₦20,000. Calculate the net increase in working capital.
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 13
A company issues 5,000 debentures of ₦100 each at a premium of 5%. Calculate the total amount received from the issue of debentures.
A. ₦5,00,000
Correct B. ₦5,50,000
C. ₦6,00,000
D. ₦6,50,000

Correct Answer: B

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Question 14
A company's trial balance shows a discrepancy of ₦10,000 between the debit and credit sides. Calculate the effect of this discrepancy on the company's net profit.
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 15
A company's balance sheet shows an increase in its fixed assets by ₦200,000 and a decrease in its long-term liabilities by ₦150,000. Calculate the net increase in shareholders' funds.
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 16
A company produces two products, X and Y, using two machines, A and B. Machine A produces 60% of product X and 40% of product Y, while machine B produces 40% of product X and 60% of product Y. If machine A operates for 8 hours and machine B operates for 6 hours, calculate the total production of product X.
A. 120 units
Correct B. 150 units
C. 180 units
D. 200 units

Correct Answer: B

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Question 17
A company has the following trial balance: Debitors ₦ 100,000, Creditors ₦ 80,000, Capital ₦ 150,000. Prepare the balance sheet.
A. ₦ 100,000
Correct B. ₦ 150,000
C. ₦ 180,000
D. ₦ 200,000

Correct Answer: B

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Question 18
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit is ₦ 120,000, calculate the share of profit of partner A.
Correct A. ₦ 90,000
B. ₦ 100,000
C. ₦ 110,000
D. ₦ 120,000

Correct Answer: A

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Question 19
A company has the following journal entry: Debitors ₦ 10,000, Creditors ₦ 5,000. Prepare the ledger accounts.
Correct A. Debitors ₦ 10,000, Creditors ₦ 5,000
B. Debitors ₦ 5,000, Creditors ₦ 10,000
C. Debitors ₦ 15,000, Creditors ₦ 10,000
D. Debitors ₦ 10,000, Creditors ₦ 15,000

Correct Answer: A

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Question 20
A company has the following balance sheet: Assets ₦ 200,000, Liabilities ₦ 100,000. Calculate the net worth of the company.
A. ₦ 100,000
B. ₦ 150,000
Correct C. ₦ 200,000
D. ₦ 250,000

Correct Answer: C

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Question 21
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦1,500,000?
Correct A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000

Correct Answer: A

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Question 22
In a partnership with a 3:2:1 capital ratio, the net profit is ₦180,000. If the profit-sharing ratio is the same as the capital ratio, what is the share of the partner with a 1:1 capital ratio?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 23
A company's trial balance shows a debit balance of ₦50,000 in the account 'Rent Received'. What is the correct journal entry to record the rent received?
A. Debit Rent Received ₦50,000, Credit Cash ₦50,000
Correct B. Debit Cash ₦50,000, Credit Rent Received ₦50,000
C. Debit Rent Received ₦50,000, Credit Rent Paid ₦50,000
D. Debit Rent Paid ₦50,000, Credit Rent Received ₦50,000

Correct Answer: B

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Question 24
A company's balance sheet shows a current liability of ₦200,000. If the company's current assets are ₦300,000, what is the company's working capital?
Correct A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

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Question 25
A company's profit and loss account shows a net profit of ₦150,000. If the company's turnover is ₦500,000, what is the company's gross profit percentage?
A. 30%
B. 40%
Correct C. 50%
D. 60%

Correct Answer: C

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