POST UTME IMS U 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st January | Cash | ₦10,000 | ₦0 | | 2nd January | Bank | ₦0 | ₦20,000 | | 3rd January | Sales | ₦0 | ₦50,000 | | 4th January | Purchases | ₦40,000 | ₦0 | | 5th January | Capital | ₦0 | ₦30,000 | | 6th January | Drawings | ₦0 | ₦10,000 | | 7th January | Rent | ₦0 | ₦5,000 | | 8th January | Salaries | ₦0 | ₦10,000 | | 9th January | Interest | ₦0 | ₦2,000 | | 10th January | Dividend | ₦0 | ₦5,000 | | 11th January | Discount | ₦0 | ₦1,000 | | 12th January | Bad Debts | ₦0 | ₦2,000 | | 13th January | Provision for Bad Debts | ₦0 | ₦1,000 | | 14th January | Depreciation | ₦0 | ₦5,000 | | 15th January | Provision for Depreciation | ₦0 | ₦2,000 | Determine the correct bank reconciliation statement.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 2
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.
A. 2:1
B. 3:1
C. 1:2
D. 4:1
Question 3
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
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 4
A partnership has two partners, A and B. The capital of A is ₦60,000 and that of B is ₦40,000. The profit-sharing ratio is 5:3. Calculate the profit to be shared by A.
A. ₦22,500
B. ₦25,000
C. ₦27,500
D. ₦30,000
Question 5
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?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 6
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.
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
Question 7
A company purchased a machine for ₦120,000. The machine depreciates by 10% per annum. Calculate the value of the machine after 3 years.
A. ₦81,600
B. ₦82,400
C. ₦83,200
D. ₦84,000
Question 8
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Prepare the journal entry to record the issue of debentures.
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000
Question 9
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
D. Debit Profit and Loss and Credit Purchases
Question 10
A company's trial balance as at 31st December, 2020 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦0 | | Bank | ₦0 | ₦20,000 | | Sales | ₦0 | ₦50,000 | | Purchases | ₦40,000 | ₦0 | | Capital | ₦0 | ₦30,000 | | Profit | ₦0 | ₦0 | | Drawings | ₦0 | ₦10,000 | | Rent | ₦0 | ₦5,000 | | Salaries | ₦0 | ₦10,000 | | Interest | ₦0 | ₦2,000 | | Dividend | ₦0 | ₦5,000 | | Discount | ₦0 | ₦1,000 | | Bad Debts | ₦0 | ₦2,000 | | Provision for Bad Debts | ₦0 | ₦1,000 | | Depreciation | ₦0 | ₦5,000 | | Provision for Depreciation | ₦0 | ₦2,000 | | Profit and Loss Account | ₦0 | ₦0 | | Balance Sheet | ₦0 | ₦0 | Determine the correct order of preparation of the final accounts.
A. Trading and Profit and Loss Account, then Balance Sheet
B. Balance Sheet, then Trading and Profit and Loss Account
C. Trading and Profit and Loss Account, then Balance Sheet, then Profit and Loss Account
D. Balance Sheet, then Profit and Loss Account, then Trading and Profit and Loss Account
Question 11
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?
A. ₦7,000
B. ₦8,000
C. ₦9,000
D. ₦10,000
Question 12
A company's trial balance shows the following balances: Accounts Payable ₦500,000, Accounts Receivable ₦200,000, Common Stock ₦1,000,000, Retained Earnings ₦750,000. What is the total equity?
A. ₦1,750,000
B. ₦2,250,000
C. ₦2,500,000
D. ₦3,000,000
Question 13
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
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 14
A company issued 5,000, 9% debentures of ₦100 each. Calculate the amount of interest payable annually.
A. ₦45,000
B. ₦45,500
C. ₦45,000.50
D. ₦45,000.25
Question 15
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?
A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

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