POST UTME IGBINEDION UNIVERSITY 2020 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's profit and loss account for the year ended 31st December 2020 is as follows:
| Particulars | ₦ | ₦ |
| --- | --- | --- |
| Sales | 500,000 | |
| Cost of Goods Sold | 300,000 | |
| Gross Profit | 200,000 | |
| Operating Expenses | 100,000 | |
| Net Profit | 100,000 | |
What is the gross profit percentage?
Question 2
A company has two partners, A and B, who share profits in the ratio 3:2. The capital contributed by A is ₦120,000 and that by B is ₦80,000. Calculate the ratio of their capitals.
Question 3
A trader purchased goods on credit for ₦120,000. He sold the goods for ₦180,000. Calculate the profit made by the trader.
Question 4
A company issued 10,000 5% debentures of ₦ 100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
Question 5
A company uses a job costing system to account for its manufacturing activities. The company has two departments: Cutting and Assembly. The Cutting Department has a balance of ₦120,000 in its Work-in-Progress (WIP) account at the beginning of the year. During the year, the department incurs expenses of ₦150,000 and earns revenue of ₦180,000. The Assembly Department has a balance of ₦80,000 in its WIP account at the beginning of the year. During the year, the department incurs expenses of ₦100,000 and earns revenue of ₦120,000. The company's total WIP balance at the end of the year is ₦200,000. What is the balance in the Cutting Department's WIP account at the end of the year?
Question 6
A company's trial balance showed the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. Prepare the company's balance sheet.
Question 7
A company's cash book shows a debit balance of ₦12,000. The bank statement shows a credit balance of ₦15,000. The company's accounting records show that the bank has been overcharged by ₦3,000. What is the correct balance in the company's cash book?
Question 8
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The company also issued 2,000, 12% preference shares of ₦50 each at a premium of 10%. Calculate the total amount received from the issue of debentures and preference shares.
Question 9
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount of discount and the amount of interest paid annually.
Question 10
A company has the following bank reconciliation statement:
| Date | Bank Balance | Cash Balance | Difference |
| --- | --- | --- | --- |
| 1st | ₦100,000 | ₦120,000 | ₦20,000 |
| 5th | ₦80,000 | ₦100,000 | ₦20,000 |
| 10th | ₦60,000 | ₦80,000 | ₦20,000 |
What is the reason for the difference between the bank balance and the cash balance?
Question 11
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. If the partnership has a net income of ₦1,200,000, how much will Partner A receive as their share of the net income?
Question 12
A company has the following trial balance:
| Account | Debit | Credit |
| --- | --- | --- |
| Cash | ₦100,000 | |
| Accounts Payable | | ₦50,000 |
| Sales Revenue | ₦200,000 | |
| Cost of Goods Sold | | ₦150,000 |
| Net Income | | ₦50,000 |
Identify the error in the trial balance.
Question 13
A company uses the straight-line method of depreciation for its assets. If the asset has a useful life of 5 years and a cost of ₦1,500,000, what is the annual depreciation expense?
Question 14
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the amount of discount on the debentures.
Question 15
A company's bank reconciliation statement showed the following balances: Bank balance ₦100,000, Cash balance ₦50,000, and Outstanding checks ₦20,000. Prepare the company's bank reconciliation statement.
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