POST UTME ESUT 2021 Accounting | Objective

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Question 1
A company uses the straight-line method to depreciate its assets. The company's asset has a cost of ₦100,000 and an estimated useful life of 5 years. What is the annual depreciation expense?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 2
A company issued 5,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 10,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 60,000
B. ₦ 65,000
C. ₦ 70,000
D. ₦ 75,000
Question 3
A company's financial statements are prepared using the accrual basis of accounting. Which of the following is a characteristic of the accrual basis?
A. Matching of revenues and expenses with the period in which they are earned or incurred
B. Matching of cash inflows and outflows with the period in which they are received or paid
C. Matching of revenues with the period in which they are received
D. Matching of expenses with the period in which they are paid
Question 4
A company has the following transactions: Purchase of goods for ₦100,000, Sale of goods for ₦150,000, and Return of goods for ₦20,000. What is the net effect on the company's cash balance?
A. ₦30,000
B. ₦50,000
C. ₦70,000
D. ₦90,000
Question 5
A company uses the single entry system to record its transactions. The following transactions were recorded in the year ended December 31, 2021:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 6
The following is a statement of profit or loss for XYZ Limited for the year ended December 31, 2021:
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 7
A company's trial balance as at 31st December, 2020, showed the following balances: Debtors: ₦50,000; Creditors: ₦30,000; Capital: ₦100,000; Profit and Loss Account: ₦20,000. Prepare the Balance Sheet as at 31st December, 2020.
A. ₦50,000; ₦30,000; ₦120,000; ₦20,000
B. ₦50,000; ₦30,000; ₦120,000; ₦20,000
C. ₦50,000; ₦30,000; ₦120,000; ₦20,000
D. ₦50,000; ₦30,000; ₦120,000; ₦20,000
Question 8
A company's trial balance shows a debit balance of ₦10,000 in the account 'Purchases'. However, the company's accounting records show that the purchases were actually returned to the supplier. What is the correct journal entry to correct this error?
A. Debit Purchases ₦10,000, Credit Returns Outwards ₦10,000
B. Debit Returns Outwards ₦10,000, Credit Purchases ₦10,000
C. Debit Purchases ₦10,000, Credit Purchases Return ₦10,000
D. Debit Purchases Return ₦10,000, Credit Purchases ₦10,000
Question 9
A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 10
A partnership has two partners, A and B. A invests ₦50,000 and B invests ₦30,000. The profit is divided in the ratio 2:1. If the total profit is ₦15,000, how much does A receive?
A. ₦6,000
B. ₦8,000
C. ₦10,000
D. ₦12,000
Question 11
A company has the following transactions for the year ended December 31, 2021:
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 12
A company manufactures products using a job-order costing system. The company's work-in-progress inventory has the following costs: Direct Materials = ₦20,000, Direct Labor = ₦30,000, and Overhead = ₦40,000. What is the total cost of the work-in-progress inventory?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 13
A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, Accounts Receivable, and Common Stock. The company's trial balance shows the following balances: Cash = ₦50,000, Accounts Payable = ₦20,000, Accounts Receivable = ₦30,000, and Common Stock = ₦100,000. What is the total amount of assets recorded in the ledger?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 14
A company issued 5,000 shares of ₦1 each at a premium of ₦0.50 per share. The shares were subscribed for by the public for ₦1.25 per share. Calculate the amount received from the public and the amount paid up by the shareholders.
A. ₦6,250
B. ₦7,500
C. ₦8,750
D. ₦10,000
Question 15
A partnership has two partners, A and B. The capital accounts of A and B at the beginning of the year were ₦100,000 and ₦150,000 respectively. During the year, A withdrew ₦20,000 and B introduced ₦30,000. The profit for the year was ₦60,000. Prepare the partners' capital accounts.
A. ₦120,000; ₦180,000
B. ₦140,000; ₦160,000
C. ₦160,000; ₦140,000
D. ₦180,000; ₦120,000

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