POST UTME IMS U 2024 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 2024 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference of ₦30,000 is due to an outstanding cheque of ₦20,000 and a deposit of ₦10,000. What is the correct balance in the cash book?
A. ₦130,000
B. ₦140,000
Correct C. ₦150,000
D. ₦160,000

Correct Answer: C

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Question 2
A manufacturing company uses a job costing system. The following information is available for Job No. 101: Direct Materials: ₦50,000; Direct Labour: ₦30,000; Overheads: ₦20,000. What is the total cost of Job No. 101?
Correct A. ₦100,000
B. ₦120,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 3
A company's trial balance shows the following balances: Sales: ₦500,000; Cost of Goods Sold: ₦300,000; Gross Profit: ₦200,000; Operating Expenses: ₦150,000; Net Profit: ₦50,000. What is the correct net profit?
Correct A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: A

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Question 4
A company's cash book shows the following transactions: Cash received from customers: ₦100,000; Cash paid to suppliers: ₦80,000; Cash paid to employees: ₦20,000. What is the net cash inflow?
A. ₦20,000
Correct B. ₦40,000
C. ₦60,000
D. ₦80,000

Correct Answer: B

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Question 5
A company's bank reconciliation statement shows the following discrepancies: Outstanding cheque: ₦20,000; Deposits in transit: ₦10,000; Bank errors: ₦5,000. What is the total discrepancy?
A. ₦35,000
B. ₦40,000
C. ₦45,000
Correct D. ₦50,000

Correct Answer: D

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Question 6
A partnership is dissolved when a partner dies. Calculate the amount of goodwill to be written off in the books of XYZ Partnership, which has a capital of ₦1,500,000, divided in the ratio 3:2:1 between partners A, B, and C respectively.
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 7
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 8
A company has a trading profit of ₦500,000 and a non-trading income of ₦200,000. Calculate the total profit for the year.
A. ₦700,000
B. ₦800,000
C. ₦900,000
Correct D. ₦1,000,000

Correct Answer: D

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Question 9
A company has a capital of ₦1,000,000, divided in the ratio 2:3:4 between partners A, B, and C respectively. If the company makes a profit of ₦200,000, calculate the amount of profit to be distributed to each partner.
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 10
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 11
A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦800,000 and an increase in accounts payable of ₦300,000. What is the net effect on the company's cash position?
A. ₦1,500,000
B. ₦1,200,000
Correct C. ₦1,000,000
D. ₦800,000

Correct Answer: C

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Question 12
A manufacturing company uses the weighted average method to assign overhead costs to jobs. The company has two departments: machining and assembly. The machining department has a total overhead cost of ₦1,200,000 and a total labor cost of ₦900,000. The assembly department has a total overhead cost of ₦800,000 and a total labor cost of ₦600,000. What is the overhead allocation rate for the machining department?
A. ₦1,333.33
B. ₦1,500.00
Correct C. ₦1,666.67
D. ₦2,000.00

Correct Answer: C

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Question 13
A company issues 10,000 shares of its common stock at a par value of ₦10 per share. The company also issues 5,000 shares of its preferred stock at a par value of ₦20 per share. What is the total par value of the company's issued stock?
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 14
A company has the following ledger balances: Cash ₦1,500,000, Accounts Receivable ₦800,000, Inventory ₦1,200,000, and Equipment ₦2,000,000. What is the total amount of the company's assets?
A. ₦6,500,000
B. ₦7,000,000
C. ₦7,500,000
Correct D. ₦8,000,000

Correct Answer: D

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Question 15
A company has the following transactions: Debit Cash ₦1,000,000, Credit Accounts Payable ₦500,000, Debit Inventory ₦800,000, Credit Sales ₦1,200,000. What is the net effect on the company's cash position?
A. ₦500,000
Correct B. ₦1,000,000
C. ₦1,200,000
D. ₦1,500,000

Correct Answer: B

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Question 16
A company's trial balance shows a debit balance of ₦120,000 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct journal entry to correct this error?
A. ₦120,000 debit to Rent Received and ₦120,000 credit to Cash
Correct B. ₦120,000 debit to Cash and ₦120,000 credit to Rent Received
C. ₦120,000 debit to Rent Received and ₦120,000 credit to Rent Paid
D. ₦120,000 debit to Rent Paid and ₦120,000 credit to Rent Received

Correct Answer: B

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Question 17
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. What is the total profit-sharing ratio?
Correct A. 3:2
B. 5:3
C. 7:4
D. 9:5

Correct Answer: A

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Question 18
A company's balance sheet shows a current asset of ₦150,000 in the account 'Accounts Receivable'. However, the company's accounting records show that the amount is actually ₦180,000. What is the correct journal entry to correct this error?
Correct A. ₦30,000 debit to Accounts Receivable and ₦30,000 credit to Cash
B. ₦30,000 debit to Cash and ₦30,000 credit to Accounts Receivable
C. ₦30,000 debit to Accounts Receivable and ₦30,000 credit to Profit
D. ₦30,000 debit to Profit and ₦30,000 credit to Accounts Receivable

Correct Answer: A

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Question 19
A company's trial balance shows a credit balance of ₦20,000 in the account 'Dividends'. However, the company's accounting records show that the dividends were actually paid to the shareholders. What is the correct journal entry to correct this error?
A. ₦20,000 debit to Dividends and ₦20,000 credit to Cash
Correct B. ₦20,000 debit to Cash and ₦20,000 credit to Dividends
C. ₦20,000 debit to Dividends and ₦20,000 credit to Profit
D. ₦20,000 debit to Profit and ₦20,000 credit to Dividends

Correct Answer: B

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Question 20
A company's balance sheet shows a non-current liability of ₦100,000 in the account 'Bonds Payable'. However, the company's accounting records show that the bonds were actually redeemed. What is the correct journal entry to correct this error?
Correct A. ₦100,000 debit to Bonds Payable and ₦100,000 credit to Cash
B. ₦100,000 debit to Cash and ₦100,000 credit to Bonds Payable
C. ₦100,000 debit to Bonds Payable and ₦100,000 credit to Profit
D. ₦100,000 debit to Profit and ₦100,000 credit to Bonds Payable

Correct Answer: A

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Question 21
A company's trial balance shows a debit balance of ₦50,000 in the account 'Rent Paid'. However, the company's accounting records show that the rent was actually received from the landlord. What is the correct journal entry to correct this error?
A. ₦50,000 debit to Rent Paid and ₦50,000 credit to Cash
Correct B. ₦50,000 debit to Cash and ₦50,000 credit to Rent Paid
C. ₦50,000 debit to Rent Paid and ₦50,000 credit to Profit
D. ₦50,000 debit to Profit and ₦50,000 credit to Rent Paid

Correct Answer: B

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Question 22
A company's balance sheet shows a current asset of ₦80,000 in the account 'Accounts Payable'. However, the company's accounting records show that the amount is actually ₦60,000. What is the correct journal entry to correct this error?
Correct A. ₦20,000 debit to Accounts Payable and ₦20,000 credit to Cash
B. ₦20,000 debit to Cash and ₦20,000 credit to Accounts Payable
C. ₦20,000 debit to Accounts Payable and ₦20,000 credit to Profit
D. ₦20,000 debit to Profit and ₦20,000 credit to Accounts Payable

Correct Answer: A

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Question 23
A company's trial balance shows a credit balance of ₦30,000 in the account 'Dividends'. However, the company's accounting records show that the dividends were actually paid to the shareholders. What is the correct journal entry to correct this error?
A. ₦30,000 debit to Dividends and ₦30,000 credit to Cash
B. ₦30,000 debit to Cash and ₦30,000 credit to Dividends
C. ₦30,000 debit to Dividends and ₦30,000 credit to Profit
D. ₦30,000 debit to Profit and ₦30,000 credit to Dividends

Correct Answer: VIEW ANSWER

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Question 24
A company uses the perpetual inventory system. On January 1, 2024, it had 1,000 units of a product in stock, valued at ₦10 each. During the year, 500 units were sold, and 200 units were purchased at ₦12 each. The company uses the weighted average method to value its inventory. What is the total value of the inventory at the end of the year?
A. ₦5,500
B. ₦6,000
Correct C. ₦6,200
D. ₦6,500

Correct Answer: C

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Question 25
A company's trial balance as of December 31, 2024, is as follows: Debit Accounts Payable ₦10,000 Salaries Expense ₦20,000 Rent Expense ₦15,000 Utilities Expense ₦5,000 Credit Cash ₦50,000 Accounts Receivable ₦30,000 Common Stock ₦100,000 Retained Earnings ₦80,000 What is the total amount of the company's assets?
A. ₦175,000
Correct B. ₦185,000
C. ₦195,000
D. ₦205,000

Correct Answer: B

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