POST UTME IGBINEDION UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company purchases a machine for ₦200,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦120,000
B. ₦140,000
C. ₦160,000
D. ₦180,000
Question 2
A company's trial balance showed an error of ₦5,000 in the accounts payable account.
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 3
What is the main principle of the double entry system?
A. Every transaction affects at least two accounts
B. Every transaction affects only one account
C. Every transaction affects all accounts
D. Every transaction affects no accounts
Question 4
A company's balance sheet as at 31st December 2016 is as follows: | Assets | ₦ | Liabilities | ₦ | Capital | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | Share Capital | 50,000 | | Office Equipment | 30,000 | Creditors | 15,000 | Profit | 20,000 | | Investments | 40,000 | | | | | | | | | | | If the company issues 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share, and also issues 5,000 ₦ 100 debentures at 5% interest, what will be the new balance sheet?
A. ₦ 120,000
B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000
Question 5
A company's cash book shows the following transactions: Date | Particulars | Debit | Credit 01/01 | Cash | 1,000 | Bank 02/01 | Bank | 500 | Cash 03/01 | Cash | 200 | Purchases 04/01 | Purchases | 300 | Cash Prepare the bank reconciliation statement.
A. Bank Balance ₦ 1,500, Cash Balance ₦ 1,200
B. Bank Balance ₦ 1,200, Cash Balance ₦ 1,500
C. Bank Balance ₦ 1,000, Cash Balance ₦ 1,300
D. Bank Balance ₦ 1,300, Cash Balance ₦ 1,000
Question 6
What is the purpose of a ledger?
A. To record all transactions of the business
B. To record all cash transactions of the business
C. To record all credit transactions of the business
D. To record all sales and purchases of the business
Question 7
A company issued 5,000 debentures of ₦100 each at a premium of ₦20 per debenture. The debentures were sold for ₦120 each. Calculate the total amount received from the sale of debentures.
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 8
A company's ledger showed a balance of ₦80,000. The company's cash book showed a balance of ₦90,000. The company's cash book also showed a debit of ₦10,000 for a bank charge. What is the correct balance of the company's ledger?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 9
A company has the following balance sheet as at 31st December, 2016: Assets: ₦50,000 cash ₦30,000 debtors ₦20,000 creditors ₦10,000 machinery Liabilities: ₦20,000 capital ₦10,000 drawings What is the net worth of the company?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 10
A company issues 5,000, 12% debentures of ₦50 each at a premium of 10%. Calculate the amount received from debenture holders.
A. ₦250,000
B. ₦275,000
C. ₦300,000
D. ₦325,000
Question 11
A company issues 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issues 5,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 120,000
B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000
Question 12
A company purchased a machine for ₦ 50,000. The machine is expected to have a useful life of 5 years and a residual value of ₦ 5,000. Calculate the annual depreciation using the straight-line method.
A. ₦ 9,500
B. ₦ 10,000
C. ₦ 9,000
D. ₦ 8,500
Question 13
A company's cash book showed a balance of ₦50,000. The bank statement showed a balance of ₦60,000. The company's cash book also showed a debit of ₦10,000 for a bank charge. What is the correct balance of the company's cash book?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 14
A company's cash book showed a balance of ₦60,000. The bank statement showed a balance of ₦70,000. The company's cash book also showed a credit of ₦10,000 for a bank deposit. What is the correct balance of the company's cash book?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 15
A company's cash book shows the following transactions for the month of January: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 10,000 | | | 2 | Bank | | 10,000 | | 3 | Office Equipment | 8,000 | | | 4 | Office Equipment | | 8,000 | | 5 | Salaries | 20,000 | | | 6 | Salaries | | 20,000 | | 7 | Rent | 15,000 | | | 8 | Rent | | 15,000 | | 9 | Miscellaneous | 5,000 | | | 10 | Miscellaneous | | 5,000 | What is the total amount of cash received and paid during the month?
A. ₦ 53,000
B. ₦ 58,000
C. ₦ 63,000
D. ₦ 68,000

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