Practice Post UTME ESUT accounting 2024 Past Questions

Question 1

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'

Correct 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'

Correct Answer: B

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Question 2

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?

Correct A. ₦72,000

B. ₦48,000

C. ₦60,000

D. ₦80,000

Correct Answer: A

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Question 3

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?

Correct A. 1:1

B. 2:1

C. 3:1

D. 4:1

Correct Answer: A

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Question 4

A government agency has a budget of ₦500,000 for the year. If the agency has already spent ₦300,000, what percentage of the budget has been spent?

A. 40%

Correct B. 50%

C. 60%

D. 70%

Correct Answer: B

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Question 5

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'

Correct 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'

Correct Answer: B

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Question 6

A company uses the single entry system of accounting. The following transactions were recorded in the cash book during the year: Deposits: ₦50,000, ₦20,000, ₦30,000 Withdrawals: ₦10,000, ₦25,000 Calculate the total cash balance at the end of the year.

Correct A. ₦85,000

B. ₦90,000

C. ₦95,000

D. ₦100,000

Correct Answer: A

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Question 7

A company's cash book shows the following transactions: ₦10,000 deposited on 1st January ₦5,000 withdrawn on 15th January ₦8,000 deposited on 20th January ₦3,000 withdrawn on 25th January Calculate the cash balance on 31st January.

A. ₦10,000

Correct B. ₦12,000

C. ₦14,000

D. ₦16,000

Correct Answer: B

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Question 8

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

Correct C. ₦25,000

D. ₦27,000

Correct Answer: C

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Question 9

A company's cash book and bank statement show the following transactions: ₦10,000 deposited on 1st January ₦5,000 withdrawn on 15th January ₦8,000 deposited on 20th January ₦3,000 withdrawn on 25th January Calculate the difference between the cash balance and bank balance on 31st January.

A. ₦2,000

Correct B. ₦4,000

C. ₦6,000

D. ₦8,000

Correct Answer: B

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Question 10

A company's cash book and bank statement show 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 difference between the cash balance and bank balance on 31st January.

A. ₦4,000

B. ₦6,000

Correct C. ₦8,000

D. ₦10,000

Correct Answer: C

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Question 11

A company has a cash book account with a debit balance of ₦15,000. The bank statement shows a credit balance of ₦20,000. The cash book also shows a credit balance of ₦5,000 in the 'Bank' account. What is the correct explanation for the discrepancy?

Correct A. The company has an outstanding cheque.

B. The company has deposited cash into the bank but not yet recorded in the cash book.

C. The company has a loan from the bank that has not been recorded in the cash book.

D. The company has a credit note from the bank that has not been recorded in the cash book.

Correct Answer: A

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Question 12

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 amount of profit to be distributed to each partner?

A. ₦30,000 to A and ₦20,000 to B.

Correct B. ₦45,000 to A and ₦30,000 to B.

C. ₦60,000 to A and ₦40,000 to B.

D. ₦75,000 to A and ₦50,000 to B.

Correct Answer: B

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Question 13

A company has a trial balance with the following accounts: Sales ₦100,000, Cost of Goods Sold ₦80,000, and Profit ₦20,000. What is the correct journal entry to record the profit?

Correct A. Debit Sales and credit Profit.

B. Debit Profit and credit Sales.

C. Debit Cost of Goods Sold and credit Profit.

D. Debit Profit and credit Cost of Goods Sold.

Correct Answer: A

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Question 14

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?

Correct 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.

Correct Answer: A

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Question 15

A company has a control account for its cash. The following transactions are recorded in the cash book: Debit Cash ₦5,000 and credit Bank ₦5,000. What is the effect of this transaction on the company's cash balance?

Correct A. The cash balance increases by ₦5,000.

B. The cash balance decreases by ₦5,000.

C. The cash balance remains the same.

D. The cash balance increases by ₦10,000.

Correct Answer: A

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Question 16

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.

Correct 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

Correct Answer: A

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Question 17

A company's trial balance showed a debit balance of £ 1,000 in the account 'Rent Received'. The correct balance should be a credit balance of £ 1,000. What is the correct journal entry to correct the error?

A. Debit Rent Received £ 1,000, Credit Rent Received £ 1,000

Correct B. Debit Rent Received £ 1,000, Credit Profit and Loss £ 1,000

C. Credit Rent Received £ 1,000, Debit Profit and Loss £ 1,000

D. Debit Rent Received £ 1,000, Credit Profit and Loss £ 1,000

Correct Answer: B

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Question 18

A company issued 10,000 £ 1 shares at a premium of £ 0.50 per share. The issue expenses were £ 3,000. Prepare the journal entry to record the issue of shares.

Correct A. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 3,000

B. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000

C. Debit Share Capital £ 10,000, Credit Issue Expenses £ 3,000

D. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Debit Issue Expenses £ 3,000

Correct Answer: A

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Question 19

A company's bank statement showed a balance of £ 5,000. However, the company's cash book showed a balance of £ 3,000. What is the correct bank reconciliation?

Correct A. Bank Overdraft £ 2,000, Bank Charges £ 1,000, Unpresented Cheques £ 2,000

B. Bank Overdraft £ 2,000, Bank Charges £ 1,000

C. Bank Overdraft £ 2,000, Unpresented Cheques £ 2,000

D. Bank Overdraft £ 2,000, Bank Charges £ 1,000, Unpresented Cheques £ 1,000

Correct Answer: A

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Question 20

A company issued 5,000 £ 1 shares at a premium of £ 0.50 per share. The issue expenses were £ 1,500. Prepare the journal entry to record the issue of shares.

Correct A. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Credit Issue Expenses £ 1,500

B. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500

C. Debit Share Capital £ 5,000, Credit Issue Expenses £ 1,500

D. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Debit Issue Expenses £ 1,500

Correct Answer: A

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Question 21

A company's cash book shows a balance of ₦125,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦5,000 is due to a bank charge of ₦2,000 and an NSF cheque of ₦3,000. What is the correct balance in the cash book?

Correct A. ₦123,000

B. ₦125,000

C. ₦127,000

D. ₦129,000

Correct Answer: A

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Question 22

A manufacturing company uses the weighted average method to value its inventory. The company has two types of inventory: A and B. Inventory A has a cost of ₦50,000 and a quantity of 100 units. Inventory B has a cost of ₦75,000 and a quantity of 50 units. The total quantity of inventory is 150 units. What is the cost of the inventory per unit?

A. ₦60,000

Correct B. ₦62,500

C. ₦65,000

D. ₦67,500

Correct Answer: B

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Question 23

A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦200,000 and a useful life of 5 years. What is the annual depreciation?

A. ₦40,000

Correct B. ₦42,857

C. ₦45,000

D. ₦50,000

Correct Answer: B

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Question 24

A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦145,000. The difference of ₦5,000 is due to a bank charge of ₦2,000 and an NSF cheque of ₦3,000. What is the correct balance in the cash book?

Correct A. ₦147,000

B. ₦150,000

C. ₦153,000

D. ₦155,000

Correct Answer: A

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Question 25

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

Correct B. ₦62,500

C. ₦65,000

D. ₦67,500

Correct Answer: B

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