POST UTME FUTA 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 10,000
B. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000, Credit Issue Expenses £ 5,000
C. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 5,000
D. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000, Credit Issue Expenses £ 10,000
Question 2
A partnership is formed between two individuals, A and B, who contribute ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit-sharing ratio in decimal form.
A. 0.6
B. 0.7
C. 0.8
D. 0.9
Question 3
A company purchases a machine for ₦600,000 and depreciates it by 15% per annum. What is the value of the machine after 2 years?
A. ₦420,000
B. ₦450,000
C. ₦480,000
D. ₦510,000
Question 4
A company uses the single entry system to record its transactions. The following transactions were recorded during the year: Debit: ₦10,000 to 'Office Equipment' Credit: ₦5,000 to 'Rent' and ₦3,000 to 'Salaries' What is the total amount of the company's expenses for the year?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦25,000
Question 5
A company has the following transactions: Purchased office equipment for 10,000, paid 5,000 cash, and issued a 3-year note payable for the balance. What is the amount of the note payable?
A. 5,000
B. 7,500
C. 10,000
D. 12,500
Question 6
A company's balance sheet shows an increase in the value of its property, plant and equipment by ₦1,500,000. The increase is due to the purchase of new machinery. Prepare the necessary journal entry to record the increase in value.
A. Debit Machinery ₦1,500,000, Credit Bank ₦1,500,000
B. Debit Machinery ₦1,500,000, Credit Accumulated Depreciation ₦1,500,000
C. Debit Machinery ₦1,500,000, Credit Bank ₦1,500,000 and Accumulated Depreciation ₦1,500,000
D. Debit Bank ₦1,500,000, Credit Machinery ₦1,500,000
Question 7
A company's trading account shows a profit of ₦200,000. However, the profit and loss account shows a loss of ₦50,000. What is the correct net profit?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 8
A company's cash book shows a balance of ₦100,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦20,000 is due to a dishonored cheque of ₦10,000 and an outstanding deposit of ₦10,000. What is the correct balance in the cash book?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 9
A company uses the single entry system to record its transactions. The following transactions were recorded during the year: Debit: ₦15,000 to 'Office Equipment' Credit: ₦8,000 to 'Rent' and ₦4,000 to 'Salaries' What is the total amount of the company's expenses for the year?
A. ₦27,000
B. ₦30,000
C. ₦33,000
D. ₦36,000
Question 10
A public sector organization has the following transactions for the year: ₦10,000 received from the government for a grant ₦20,000 paid to an employee as salary ₦15,000 paid to a supplier for goods purchased ₦5,000 received from the sale of assets What is the net cash outflow for the year?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 11
A partnership has two partners, A and B. Partner A's capital is ₦10000 and partner B's capital is ₦20000. The profit-sharing ratio is 3:2. What is the amount of profit to be shared by partner A?
A. ₦10000
B. ₦20000
C. ₦30000
D. ₦40000
Question 12
A company has the following balance sheet: Assets: ₦100,000 cash ₦50,000 accounts receivable ₦20,000 inventory Liabilities: ₦30,000 accounts payable ₦20,000 loans payable What is the net working capital of the company?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 13
In a partnership account, the capital of a partner who leaves the business is transferred to the remaining partners in the ratio of their current profits. If the capital of the departing partner is ₦120,000 and the current profits of the remaining partners are ₦80,000 and ₦60,000 respectively, what is the amount of capital that will be transferred to each partner?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦80,000
Question 14
A company has the following transactions:
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 15
A company's balance sheet shows a total assets of ₦1,000,000 and total liabilities of ₦500,000. What is the correct net worth?
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000

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