POST UTME IGBINEDION UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system of accounting. If the company purchases an asset for ₦50,000 and pays for it in cash, what is the effect on the accounting equation?
A. Assets increase by ₦50,000 and Liabilities decrease by ₦50,000
B. Assets increase by ₦50,000 and Equity increases by ₦50,000
C. Assets decrease by ₦50,000 and Liabilities increase by ₦50,000
D. Assets decrease by ₦50,000 and Equity decreases by ₦50,000
Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. If the profit for the year is ₦20,000, what is the share of profit of partner A?
A. ₦12,000
B. ₦10,000
C. ₦8,000
D. ₦6,000
Question 3
A, B, C and D are partners in a firm sharing profits and losses in the ratio 3:5:7:9. Their capitals were ₦100,000, ₦150,000, ₦200,000 and ₦250,000 respectively. Calculate the total capital of the firm.
A. ₦900,000
B. ₦1,000,000
C. ₦1,100,000
D. ₦1,200,000
Question 4
A company's balance sheet as at December 31, 2023, shows the following: Fixed assets: ₦500,000 Current assets: ₦300,000 Total assets: ₦800,000 Capital and reserves: ₦400,000 Long-term liabilities: ₦200,000 Short-term liabilities: ₦100,000 Total liabilities: ₦300,000 What is the net worth of the company?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 5
A company's trial balance shows a debit balance of ₦15,000 in the 'Accrued Expenses' account. However, the company's accountant believes that this balance is incorrect. Which of the following steps should the accountant take to correct the error?
A. Verify the journal entries related to the 'Accrued Expenses' account.
B. Reconcile the 'Accrued Expenses' account with the general ledger.
C. Adjust the 'Accrued Expenses' account to reflect the correct balance.
D. Ignore the error and proceed with the financial statements.
Question 6
A company's manufacturing overheads for the year ended December 31, 2023, were as follows: Direct Labour £ 10,000, Direct Materials £ 20,000, and Factory Rent £ 30,000. The total production cost for the year was £ 150,000. Calculate the manufacturing overheads as a percentage of total production cost.
A. 25%
B. 30%
C. 35%
D. 40%
Question 7
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 8
A trader maintains the following trial balance as at 31st December, 2023.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 9
A company purchases a machine for ₦1,200,000 and sells it after 5 years for ₦1,500,000. If the machine is depreciated at 10% per annum, what is the amount of depreciation for the first year?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 10
A company's balance sheet as at 31st December, 2023, showed a capital of ₦1,500,000. The company's drawings for the year were ₦300,000. Calculate the company's profit for the year ended 31st December, 2023.
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 11
A company's trading account for the year ended 31st December, 2023, showed a profit of ₦500,000. The company's balance sheet as at 31st December, 2022, showed a capital of ₦1,000,000. The company's drawings for the year were ₦200,000. Calculate the company's profit for the year ended 31st December, 2023.
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 12
A company purchases a machine for ₦800,000 and sells it after 3 years for ₦1,200,000. If the machine is depreciated at 15% per annum, what is the amount of depreciation for the first year?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 13
A company uses the single-entry system of accounting. If the company's cash account shows a balance of ₦100,000 and the company's accounts payable account shows a balance of ₦50,000, what is the company's net worth?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 14
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦8,000 | | 3rd Jan | Cash | | ₦12,000 | What is the balance of the cash account?
A. ₦2,000
B. ₦4,000
C. ₦6,000
D. ₦8,000
Question 15
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The shares were subscribed for by the public in full. Calculate the amount received from the issue of shares.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: