Practice Post UTME ESUT accounting 2022 Past Questions

Question 1

A company uses the single-entry system of accounting. The following transactions were recorded during the year: (i) Purchased office equipment for ₦120,000. (ii) Sold goods for ₦150,000. (iii) Purchased raw materials for ₦80,000. (iv) Paid salaries of ₦30,000. (v) Collected cash from customers for ₦200,000. Determine the net profit or loss for the year.

A. ₦20,000

Correct B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: B

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Question 2

A company's trial balance as at December 31, 2022, is as follows: Debit ₦ Cash 150,000 Accounts Payable 50,000 Salaries Payable 20,000 Equipment 100,000 Accumulated Depreciation 30,000 Total Debit 350,000 Credit ₦ Accounts Receivable 40,000 Sales Revenue 200,000 Cost of Goods Sold 120,000 Salaries Expense 30,000 Rent Expense 10,000 Total Credit 400,000 Determine the net income for the year.

A. ₦50,000

Correct B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: B

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Question 3

A company uses the straight-line method of depreciation. The cost of equipment is ₦120,000 and its useful life is 5 years. Determine the annual depreciation charge.

Correct A. ₦24,000

B. ₦25,000

C. ₦26,000

D. ₦27,000

Correct Answer: A

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Question 4

A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.

A. ₦900,000

Correct B. ₦950,000

C. ₦990,000

D. ₦1,000,000

Correct Answer: B

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Question 5

A firm has a cash book balance of ₦150,000 and a bank statement balance of ₦180,000. The bank statement shows a credit balance of ₦5,000 for a dishonored cheque. The cash book shows a debit balance of ₦10,000 for a bank error. What is the correct balance of the firm's cash account?

A. ₦155,000

B. ₦160,000

Correct C. ₦165,000

D. ₦170,000

Correct Answer: C

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Question 6

A company has a capital of ₦500,000 divided into 5,000 shares of ₦100 each. The company issues 1,000, 10% preference shares of ₦50 each at a premium of ₦5. Calculate the amount received from the preference shareholders.

A. ₦50,000

Correct B. ₦55,000

C. ₦60,000

D. ₦65,000

Correct Answer: B

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Question 7

A firm has a cash book balance of ₦120,000 and a bank statement balance of ₦140,000. The bank statement shows a credit balance of ₦2,000 for a dishonored cheque. The cash book shows a debit balance of ₦8,000 for a bank error. What is the correct balance of the firm's cash account?

A. ₦124,000

B. ₦128,000

Correct C. ₦132,000

D. ₦136,000

Correct Answer: C

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Question 8

A company has a capital of ₦600,000 divided into 6,000 shares of ₦100 each. The company issues 2,000, 10% preference shares of ₦50 each at a premium of ₦5. Calculate the amount received from the preference shareholders.

A. ₦100,000

B. ₦110,000

Correct C. ₦120,000

D. ₦130,000

Correct Answer: C

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Question 9

A partnership is dissolved when one partner withdraws from the business. The remaining partners will share the profits and losses in the ratio of their capital contributions. If the capital contributions are in the ratio 3:5:7, and the total capital is ₦150,000, what is the amount of profit to be shared by the partner with a capital contribution of ₦30,000?

Correct A. ₦6,750

B. ₦9,000

C. ₦10,500

D. ₦12,000

Correct Answer: A

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Question 10

A company uses the straight-line method of depreciation for its assets. If the asset has a useful life of 10 years and a residual value of ₦20,000, what is the annual depreciation charge if the asset cost ₦250,000?

A. ₦20,000

Correct B. ₦22,500

C. ₦25,000

D. ₦27,500

Correct Answer: B

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Question 11

A government agency uses the accrual basis of accounting. If the agency receives ₦100,000 in cash from customers in a month, but also incurs expenses of ₦120,000, what is the net cash inflow for the month?

A. ₦20,000

Correct B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: B

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Question 12

A company uses the single-entry system of accounting. If the company's cash account shows a balance of ₦50,000, and the company's accounts payable account shows a balance of ₦30,000, what is the net working capital of the company?

A. ₦20,000

Correct B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: B

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Question 13

A government agency uses the cash basis of accounting. If the agency receives ₦150,000 in cash from customers in a month, but also incurs expenses of ₦120,000, what is the net cash inflow for the month?

A. ₦30,000

B. ₦40,000

Correct C. ₦50,000

D. ₦60,000

Correct Answer: C

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Question 14

A company uses the straight-line method of depreciation for its assets. If the asset has a useful life of 10 years and a residual value of ₦20,000, what is the annual depreciation charge if the asset cost ₦200,000?

A. ₦18,000

Correct B. ₦20,000

C. ₦22,000

D. ₦24,000

Correct Answer: B

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Question 15

A government agency uses the accrual basis of accounting. If the agency receives ₦80,000 in cash from customers in a month, but also incurs expenses of ₦100,000, what is the net cash inflow for the month?

A. ₦20,000

Correct B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: B

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Question 16

A company issued 5,000 shares of ₦10 each at a premium of ₦3 per share. Calculate the total amount received from the issue of shares.

A. ₦150,000

Correct B. ₦175,000

C. ₦200,000

D. ₦225,000

Correct Answer: B

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Question 17

A company has a trial balance that shows a debit balance of ₦50,000 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct treatment of this error?

A. Debit the 'Rent Received' account and credit the 'Rent Paid' account

B. Debit the 'Rent Paid' account and credit the 'Rent Received' account

Correct C. Debit the 'Rent Received' account and credit the 'Rent Paid' account

D. Credit the 'Rent Received' account and debit the 'Rent Paid' account

Correct Answer: C

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Question 18

A company has a self-balancing ledger that shows a debit balance of ₦20,000 in the account 'Sales'. However, the company's accounting records show that the sales were actually made to a customer. What is the correct treatment of this error?

A. Debit the 'Sales' account and credit the 'Sales Returns' account

Correct B. Debit the 'Sales Returns' account and credit the 'Sales' account

C. Debit the 'Sales' account and credit the 'Sales' account

D. Credit the 'Sales' account and debit the 'Sales' account

Correct Answer: B

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Question 19

A company has a control account that shows a debit balance of ₦30,000 in the account 'Cash at Bank'. However, the company's accounting records show that the cash was actually withdrawn from the bank. What is the correct treatment of this error?

A. Debit the 'Cash at Bank' account and credit the 'Bank Overdraft' account

Correct B. Debit the 'Bank Overdraft' account and credit the 'Cash at Bank' account

C. Debit the 'Cash at Bank' account and credit the 'Cash' account

D. Credit the 'Cash at Bank' account and debit the 'Cash' account

Correct Answer: B

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Question 20

A company has a ledger that shows a debit balance of ₦40,000 in the account 'Purchases'. However, the company's accounting records show that the purchases were actually made on credit. What is the correct treatment of this error?

A. Debit the 'Purchases' account and credit the 'Purchases Returns' account

B. Debit the 'Purchases Returns' account and credit the 'Purchases' account

Correct C. Debit the 'Purchases' account and credit the 'Creditors' account

D. Credit the 'Purchases' account and debit the 'Creditors' account

Correct Answer: C

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Question 21

A company uses the single entry system of accounting. The following transactions were recorded in the cash book for the month of January: Cash received from customers: ₦120,000 Cash paid to suppliers: ₦80,000 Cash paid to employees: ₦30,000 Cash received from bank: ₦20,000 Cash paid to bank: ₦15,000 What is the total cash received by the company during the month of January?

A. ₦120,000

Correct B. ₦140,000

C. ₦160,000

D. ₦180,000

Correct Answer: B

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Question 22

A company's cash book shows the following transactions for the month of February: Cash received from customers: ₦150,000 Cash paid to suppliers: ₦100,000 Cash paid to employees: ₦40,000 Cash received from bank: ₦25,000 Cash paid to bank: ₦20,000 What is the total cash paid by the company during the month of February?

A. ₦150,000

B. ₦180,000

Correct C. ₦210,000

D. ₦240,000

Correct Answer: C

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Question 23

A company uses the cash book system of accounting. The following transactions were recorded in the cash book for the month of March: Cash received from customers: ₦180,000 Cash paid to suppliers: ₦120,000 Cash paid to employees: ₦50,000 Cash received from bank: ₦30,000 Cash paid to bank: ₦25,000 What is the total cash received by the company during the month of March?

A. ₦180,000

Correct B. ₦200,000

C. ₦220,000

D. ₦240,000

Correct Answer: B

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Question 24

A company's cash book shows the following transactions for the month of April: Cash received from customers: ₦200,000 Cash paid to suppliers: ₦140,000 Cash paid to employees: ₦60,000 Cash received from bank: ₦35,000 Cash paid to bank: ₦30,000 What is the total cash paid by the company during the month of April?

A. ₦200,000

B. ₦220,000

Correct C. ₦240,000

D. ₦260,000

Correct Answer: C

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Question 25

A company uses the cash book system of accounting. The following transactions were recorded in the cash book for the month of May: Cash received from customers: ₦220,000 Cash paid to suppliers: ₦160,000 Cash paid to employees: ₦70,000 Cash received from bank: ₦40,000 Cash paid to bank: ₦35,000 What is the total cash received by the company during the month of May?

A. ₦220,000

Correct B. ₦240,000

C. ₦260,000

D. ₦280,000

Correct Answer: B

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