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POST UTME IMS U 2020 Accounting | Objective

Are you preparing for POST UTME IMS U exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1

A company uses the double-entry system of accounting. The following transactions occurred during the year:

A. Debit Cash 1,000 and Credit Accounts Receivable 1,000

B. Debit Accounts Payable 1,000 and Credit Cash 1,000

Correct C. Debit Accounts Receivable 1,000 and Credit Cash 1,000

D. Debit Cash 1,000 and Credit Accounts Payable 1,000

Correct Answer: C

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Question 2

A manufacturing company has the following costs:

Correct A. Direct Materials 10,000, Direct Labor 15,000, Manufacturing Overhead 20,000

B. Direct Materials 15,000, Direct Labor 10,000, Manufacturing Overhead 20,000

C. Direct Materials 10,000, Direct Labor 20,000, Manufacturing Overhead 15,000

D. Direct Materials 20,000, Direct Labor 15,000, Manufacturing Overhead 10,000

Correct Answer: A

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Question 3

A partnership has the following capital accounts:

Correct A. John 10,000, Mary 15,000, Bob 20,000

B. John 15,000, Mary 10,000, Bob 20,000

C. John 10,000, Mary 20,000, Bob 15,000

D. John 20,000, Mary 15,000, Bob 10,000

Correct Answer: A

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Question 4

A company has the following incomplete records:

A. Debit Sales 10,000 and Credit Cost of Goods Sold 5,000

Correct B. Debit Cost of Goods Sold 5,000 and Credit Sales 10,000

C. Debit Sales 5,000 and Credit Cost of Goods Sold 10,000

D. Debit Cost of Goods Sold 10,000 and Credit Sales 5,000

Correct Answer: B

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Question 5

A company has the following final accounts:

Correct A. Trading Profit 10,000, Profit Before Tax 15,000, Profit After Tax 20,000

B. Trading Profit 15,000, Profit Before Tax 10,000, Profit After Tax 20,000

C. Trading Profit 10,000, Profit Before Tax 20,000, Profit After Tax 15,000

D. Trading Profit 20,000, Profit Before Tax 15,000, Profit After Tax 10,000

Correct Answer: A

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Question 6

A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its cost is ₦120,000, what is the annual depreciation expense?

Correct A. ₦24,000

B. ₦20,000

C. ₦25,000

D. ₦30,000

Correct Answer: A

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Question 7

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's net income is ₦150,000, how much will Partner A receive in salary?

Correct A. ₦90,000

B. ₦60,000

C. ₦80,000

D. ₦120,000

Correct Answer: A

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Question 8

A company has the following trial balance: Debitors ₦100,000, Creditors ₦50,000, Capital ₦200,000. What is the total amount of assets?

A. ₦250,000

Correct B. ₦300,000

C. ₦350,000

D. ₦400,000

Correct Answer: B

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Question 9

A company uses the double-entry system to record its transactions. If the company purchases an asset for ₦100,000 and pays ₦20,000 cash, what is the journal entry?

Correct A. Debit Asset ₦100,000, Credit Cash ₦20,000

B. Debit Cash ₦20,000, Credit Asset ₦100,000

C. Debit Asset ₦80,000, Credit Cash ₦20,000

D. Debit Cash ₦100,000, Credit Asset ₦20,000

Correct Answer: A

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Question 10

A company has the following ledger account: Asset ₦100,000, Liability ₦50,000, Equity ₦200,000. What is the total amount of assets?

A. ₦250,000

Correct B. ₦300,000

C. ₦350,000

D. ₦400,000

Correct Answer: B

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Question 11

A company issued 5,000, 9% debentures of ₦100 each. Calculate the amount of interest payable annually.

Correct A. ₦45,000

B. ₦45,500

C. ₦45,000.50

D. ₦45,000.25

Correct Answer: A

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Question 12

A company's trial balance showed the following balances: Sales ₦1,500,000, Cost of Goods Sold ₦1,200,000, and Profit ₦300,000. What is the company's net profit?

Correct A. ₦300,000

B. ₦400,000

C. ₦500,000

D. ₦600,000

Correct Answer: A

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Question 13

A company's cash book showed the following transactions: Cash received from customers ₦10,000, Cash paid to suppliers ₦8,000, and Cash received from bank ₦5,000. What is the company's net cash inflow?

Correct A. ₦7,000

B. ₦8,000

C. ₦9,000

D. ₦10,000

Correct Answer: A

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Question 14

A company issued 10,000, 10% preference shares of ₦10 each. Calculate the amount of dividend payable annually.

Correct A. ₦10,000

B. ₦10,500

C. ₦10,000.50

D. ₦10,000.25

Correct Answer: A

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Question 15

A company's balance sheet showed the following balances: Assets ₦500,000, Liabilities ₦300,000, and Equity ₦200,000. What is the company's net worth?

Correct A. ₦200,000

B. ₦300,000

C. ₦400,000

D. ₦500,000

Correct Answer: A

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Question 16

A company's trading account for the year ended December 31, 2022, is as follows: Debit: Sales £ 500,000 Cost of Goods Sold £ 300,000 Credit: Purchases £ 200,000 calculate the net profit for the year.

Correct A. £ 150,000

B. £ 200,000

C. £ 250,000

D. £ 300,000

Correct Answer: A

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Question 17

A partnership has two partners, A and B. The capital accounts of the partners are as follows: A:£ 100,000 B:£ 50,000 The profit for the year is £ 20,000. Calculate the distribution of the profit between the partners.

Correct A. A: £ 12,000, B: £ 8,000

B. A: £ 10,000, B: £ 10,000

C. A: £ 8,000, B: £ 12,000

D. A: £ 15,000, B: £ 5,000

Correct Answer: A

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Question 18

A company uses the straight-line method of depreciation. The cost of a machine is £ 10,000 and its useful life is 5 years. Calculate the annual depreciation charge.

A. £ 2,000

Correct B. £ 1,667

C. £ 2,500

D. £ 1,000

Correct Answer: B

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Question 19

A company's balance sheet as at December 31, 2022, is as follows: Assets:£ 500,000 Liabilities:£ 200,000 Equity:£ 300,000 Calculate the current ratio.

Correct A. 2:1

B. 3:1

C. 1:2

D. 4:1

Correct Answer: A

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Question 20

A company's profit and loss account for the year ended December 31, 2022, is as follows: Trading Profit:£ 100,000 Non-Trading Income:£ 20,000 Total Profit:£ 120,000 Calculate the net profit for the year.

A. £ 100,000

Correct B. £ 120,000

C. £ 140,000

D. £ 160,000

Correct Answer: B

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Question 21

A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.

A. ₦450,000

Correct B. ₦475,000

C. ₦500,000

D. ₦525,000

Correct Answer: B

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Question 22

A company's trial balance showed an error of ₦10,000 due to an incorrect posting of a sale. The error was discovered during the preparation of the balance sheet. Prepare the necessary journal entry to correct the error.

Correct A. Debit Sales and Credit Profit and Loss

B. Debit Profit and Loss and Credit Sales

C. Debit Sales and Credit Profit and Loss

D. Debit Profit and Loss and Credit Sales

Correct Answer: A

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Question 23

A company's balance sheet showed a decrease in inventory of ₦50,000. The company's accountant discovered that the decrease was due to an error in the inventory count. Prepare the necessary journal entry to correct the error.

A. Debit Inventory and Credit Cost of Goods Sold

Correct B. Debit Cost of Goods Sold and Credit Inventory

C. Debit Inventory and Credit Profit and Loss

D. Debit Profit and Loss and Credit Inventory

Correct Answer: B

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Question 24

A company issued 10,000, 5% shares of ₦10 each at a premium of ₦2. Calculate the amount received from the shareholders.

A. ₦200,000

Correct B. ₦220,000

C. ₦240,000

D. ₦260,000

Correct Answer: B

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Question 25

A company's trial balance showed an error of ₦20,000 due to an incorrect posting of a purchase. The error was discovered during the preparation of the balance sheet. Prepare the necessary journal entry to correct the error.

A. Debit Purchases and Credit Profit and Loss

B. Debit Profit and Loss and Credit Purchases

C. Debit Purchases and Credit Profit and Loss

Correct D. Debit Profit and Loss and Credit Purchases

Correct Answer: D

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