POST UTME ESUT 2024 Accounting | Objective

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Question 1
A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 2,000. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Credit Issue Expenses £ 2,000
B. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500
C. Debit Share Capital £ 5,000, Credit Issue Expenses £ 2,000
D. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Debit Issue Expenses £ 2,000
Question 2
A company's balance sheet shows a total equity of ₦150,000 and a total liabilities of ₦100,000. What is the value of the company's non-current liabilities?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 3
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 | | 800 | What is the balance of the cash book?
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,000
Question 4
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while Partner B has a 40% interest. If the partnership's net income for the year is ₦120,000, how much of the net income will Partner A receive?
A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000
Question 5
A company's profit and loss account shows a gross profit of ₦80,000 and a net profit of ₦40,000. What is the value of the company's operating expenses?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 6
A company's bank statement shows the following transactions: ₦15,000 deposited on 1st January ₦8,000 withdrawn on 15th January ₦12,000 deposited on 20th January ₦6,000 withdrawn on 25th January Calculate the bank balance on 31st January.
A. ₦21,000
B. ₦23,000
C. ₦25,000
D. ₦27,000
Question 7
A company uses the double-declining balance method to depreciate its assets. The asset has a cost of ₦300,000 and a useful life of 5 years. What is the annual depreciation?
A. ₦60,000
B. ₦62,500
C. ₦65,000
D. ₦67,500
Question 8
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's ledger shows a credit balance of ₦20,000 in the 'Rent Expense' account. What is the correct journal entry to correct this error?
A. ₦15,000 debit to 'Rent Expense' and ₦20,000 credit to 'Rent Expense'
B. ₦15,000 credit to 'Rent Expense' and ₦20,000 debit to 'Rent Expense'
C. ₦15,000 debit to 'Rent Expense' and ₦20,000 credit to 'Cash'
D. ₦15,000 credit to 'Rent Expense' and ₦20,000 debit to 'Cash'
Question 9
A company's share capital consists of 10,000 shares of 10 par value. The company issued 5,000 shares at a premium of 2 per share. The remaining shares were issued at a discount of 1 per share. Calculate the total amount received from the sale of these shares.
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 10
A company's share capital consists of 10,000 shares of 10 par value. The company issued 5,000 shares at a premium of 2 per share. The remaining shares were issued at a discount of 1 per share. Calculate the total amount received from the sale of these shares.
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 11
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Calculate the total amount received from the sale of these shares.
A. ₦75,000,000
B. ₦75,500,000
C. ₦76,000,000
D. ₦76,500,000
Question 12
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦150,000 and its current liabilities are ₦75,000, what is the company's quick ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 13
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 | | 800 | What is the balance of the cash book?
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,000
Question 14
A company's trial balance shows a debit balance of ₦20,000 in the 'Salaries Expense' account. However, the company's ledger shows a credit balance of ₦15,000 in the 'Salaries Expense' account. What is the correct journal entry to correct this error?
A. ₦20,000 debit to 'Salaries Expense' and ₦15,000 credit to 'Salaries Expense'
B. ₦20,000 credit to 'Salaries Expense' and ₦15,000 debit to 'Salaries Expense'
C. ₦20,000 debit to 'Salaries Expense' and ₦15,000 credit to 'Cash'
D. ₦20,000 credit to 'Salaries Expense' and ₦15,000 debit to 'Cash'
Question 15
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000 and credit Bank ₦10,000. What is the effect of this transaction on the company's cash balance?
A. The cash balance increases by ₦10,000.
B. The cash balance decreases by ₦10,000.
C. The cash balance remains the same.
D. The cash balance increases by ₦20,000.

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