Practice Post UTME FUTA accounting 2017 Past Questions

Question 1

A company's trial balance shows an error of ₦300 in the debit side of the 'Office Equipment' account. The correct balance of the 'Office Equipment' account is ₦1000. What is the correct balance of the 'Office Equipment' account after correcting the error?

Correct A. ₦1000

B. ₦3000

C. ₦5000

D. ₦7000

Correct Answer: A

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Question 2

A firm's cash book shows a balance of ₦1000. The bank statement shows a balance of ₦3000. The difference is due to a bank overdraft of ₦000. What is the correct balance of the cash book?

A. ₦1000

B. ₦2000

Correct C. ₦3000

D. ₦4000

Correct Answer: C

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Question 3

A company's balance sheet shows a total of ₦10000000 in assets and ₦30000000 in liabilities. What is the company's net worth?

A. ₥8000000

B. ₥9000000

C. ₦0000000

Correct D. ₦1000000

Correct Answer: D

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Question 4

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

Correct C. ₦30000

D. ₦40000

Correct Answer: C

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Question 5

A company's trial balance shows an error of ₦300 in the debit side of the 'Office Equipment' account. The correct balance of the 'Office Equipment' account is ₦1000. What is the correct balance of the 'Office Equipment' account after correcting the error?

Correct A. ₦1000

B. ₦3000

C. ₦5000

D. ₦7000

Correct Answer: A

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Question 6

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.

Correct 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

Correct Answer: A

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Question 7

A partnership of three partners has a capital balance of £ 100,000. The partners' capital accounts are as follows: A £ 30,000, B £ 40,000, C £ 30,000. The profit-sharing ratio is 2:3:1. Prepare the partnership balance sheet.

Correct A. A£ 30,000, B£ 40,000, C£ 30,000, Total Capital £ 100,000

B. A£ 60,000, B£ 80,000, C£ 40,000, Total Capital £ 180,000

C. A£ 40,000, B£ 60,000, C£ 40,000, Total Capital £ 140,000

D. A£ 60,000, B£ 80,000, C£ 40,000, Total Capital £ 180,000

Correct Answer: A

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Question 8

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.

Correct 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

Correct Answer: A

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Question 9

A company has the following transactions: Purchased goods for £ 10,000, Sold goods for £ 15,000, Purchased equipment for £ 5,000. Prepare the journal entries for the above transactions.

Correct A. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Equipment £ 5,000, Credit Cash £ 5,000

B. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Equipment £ 5,000, Credit Purchases £ 5,000

C. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Equipment £ 5,000, Credit Sales £ 5,000

D. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Equipment £ 5,000, Credit Purchases £ 5,000

Correct Answer: A

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Question 10

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?

Correct A. ₦90,000

B. ₦100,000

C. ₦110,000

D. ₦120,000

Correct Answer: A

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Question 11

A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. What is the value of the machine after 3 years?

Correct A. ₦300,000

B. ₦350,000

C. ₦400,000

D. ₦450,000

Correct Answer: A

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Question 12

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?

Correct A. ₦150,000

B. ₦200,000

C. ₦250,000

D. ₦300,000

Correct Answer: A

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Question 13

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

Correct C. ₦750,000

D. ₦1,000,000

Correct Answer: C

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Question 14

A company's cash book shows a balance of ₦200,000. However, the bank statement shows a balance of ₦220,000. The difference of ₦20,000 is due to a bank charge of ₦10,000 and an outstanding deposit of ₦10,000. What is the correct balance in the cash book?

Correct A. ₦180,000

B. ₦200,000

C. ₦220,000

D. ₦240,000

Correct Answer: A

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Question 15

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?

Correct A. ₦420,000

B. ₦450,000

C. ₦480,000

D. ₦510,000

Correct Answer: A

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Question 16

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

Correct C. ₦60,000

D. ₦80,000

Correct Answer: C

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Question 17

A company issued 5,000, 9% debentures of ₦100 each at a discount of 5%. If the debentures are redeemable at a premium of 10% after 5 years, what is the amount of interest that will be paid on the debentures for the first year?

Correct A. ₦22,500

B. ₦25,000

C. ₦27,500

D. ₦30,000

Correct Answer: A

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Question 18

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

Correct B. ₦15,000

C. ₦20,000

D. ₦25,000

Correct Answer: B

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Question 19

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

Correct B. ₦50,000

C. ₦60,000

D. ₦70,000

Correct Answer: B

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Question 20

A partnership has the following capital accounts: Partner A: ₦50,000 Partner B: ₦30,000 Partner C: ₦20,000 If Partner A withdraws ₦10,000 from the business, what is the new capital balance of Partner B?

A. ₦20,000

Correct B. ₦25,000

C. ₦30,000

D. ₦35,000

Correct Answer: B

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Question 21

A company's trial balance shows an error of ₦0.50 in the debit side of the account 'Rent Received'. The error is due to the omission of a receipt of ₦0.50 from the cash book. Prepare the necessary journal entry to rectify the error.

Correct A. Debit Rent Received ₦0.50, Credit Cash ₦0.50

B. Debit Rent Received ₦0.50, Credit Bank ₦0.50

C. Debit Rent Received ₦0.50, Credit Cash ₦0.50 and Bank ₦0.50

D. Debit Rent Received ₦0.50, Credit Bank ₦0.50 and Cash ₦0.50

Correct Answer: A

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Question 22

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.

Correct 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

Correct Answer: A

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Question 23

A company's trial balance shows an error of ₦0.50 in the debit side of the account 'Rent Paid'. The error is due to the omission of a payment of ₦0.50 from the cash book. Prepare the necessary journal entry to rectify the error.

Correct A. Debit Rent Paid ₦0.50, Credit Cash ₦0.50

B. Debit Rent Paid ₦0.50, Credit Bank ₦0.50

C. Debit Rent Paid ₦0.50, Credit Cash ₦0.50 and Bank ₦0.50

D. Debit Rent Paid ₦0.50, Credit Bank ₦0.50 and Cash ₦0.50

Correct Answer: A

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Question 24

A company's balance sheet shows an increase in the value of its inventory by ₦1,500,000. The increase is due to the purchase of new goods. Prepare the necessary journal entry to record the increase in value.

Correct A. Debit Inventory ₦1,500,000, Credit Bank ₦1,500,000

B. Debit Inventory ₦1,500,000, Credit Accumulated Depreciation ₦1,500,000

C. Debit Inventory ₦1,500,000, Credit Bank ₦1,500,000 and Accumulated Depreciation ₦1,500,000

D. Debit Bank ₦1,500,000, Credit Inventory ₦1,500,000

Correct Answer: A

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Question 25

A company's trial balance shows an error of ₦0.50 in the debit side of the account 'Salaries Paid'. The error is due to the omission of a payment of ₦0.50 from the cash book. Prepare the necessary journal entry to rectify the error.

Correct A. Debit Salaries Paid ₦0.50, Credit Cash ₦0.50

B. Debit Salaries Paid ₦0.50, Credit Bank ₦0.50

C. Debit Salaries Paid ₦0.50, Credit Cash ₦0.50 and Bank ₦0.50

D. Debit Salaries Paid ₦0.50, Credit Bank ₦0.50 and Cash ₦0.50

Correct Answer: A

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