POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2018 Accounting | Objective

Are you preparing for POST UTME JOSEPH AYO BABALOLA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A government agency is considering the implementation of a new accounting system. The current system uses a manual process to record transactions, which is prone to errors. The new system will use a computerized system to record transactions. Which of the following is a benefit of the new system?
Correct A. Improved accuracy
B. Reduced labor costs
C. Increased security
D. Enhanced customer satisfaction

Correct Answer: A

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Question 2
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | 1,000 | | | 2-Jan | Equipment | | 1,500 | | 3-Jan | Cash | | 500 | What is the balance in the Cash account?
A. ₦500
Correct B. ₦1,000
C. ₦1,500
D. ₦2,000

Correct Answer: B

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Question 3
A partnership has the following capital accounts: | Partner | Capital | Drawing | Balance | | --- | --- | --- | --- | | A | 10,000 | | | | B | 8,000 | | | | C | 12,000 | | | If A withdraws ₦2,000, what is the new balance in A's capital account?
A. ₦8,000
Correct B. ₦10,000
C. ₦12,000
D. ₦14,000

Correct Answer: B

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Question 4
A company has the following departmental expenses: | Department | Expenses | Revenue | | --- | --- | --- | | A | 10,000 | 8,000 | | B | 12,000 | 10,000 | | C | 8,000 | 6,000 | What is the total profit of the company?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 5
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | 1,000 | | | 2-Jan | Equipment | | 1,500 | | 3-Jan | Cash | | 500 | What is the balance in the Equipment account?
A. ₦1,000
Correct B. ₦1,500
C. ₦2,000
D. ₦2,500

Correct Answer: B

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Question 6
A company's trial balance shows an error of ₦5,000 due to an omission of a transaction. The error is corrected by adjusting the balance of the 'Sales' account. What is the correct adjustment?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 7
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the share of profit of each partner.
Correct A. ₦45,000 and ₦30,000
B. ₦40,000 and ₦35,000
C. ₦50,000 and ₦20,000
D. ₦60,000 and ₦10,000

Correct Answer: A

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Question 8
A company's balance sheet shows an asset of ₦100,000 and a liability of ₦80,000. What is the company's equity?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 9
A company's trial balance shows an error of ₦10,000 due to an error in the journal entry. The error is corrected by adjusting the balance of the 'Purchases' account. What is the correct adjustment?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 10
A company's balance sheet shows an asset of ₦150,000 and a liability of ₦120,000. What is the company's equity?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 11
A partnership is formed by A, B, and C, sharing profits in the ratio 5:3:2. The capital contributed by A, B, and C are ₦60,000, ₦45,000, and ₦30,000 respectively. Calculate the total profit sharing ratio.
A. Total profit sharing ratio = 5:3:2
Correct B. Total profit sharing ratio = 10:6:4
C. Total profit sharing ratio = 15:9:6
D. Total profit sharing ratio = 20:12:8

Correct Answer: B

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Question 12
A company issued 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦950,000
B. ₦975,000
Correct C. ₦1,000,000
D. ₦1,025,000

Correct Answer: C

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Question 13
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦50,000 cash ₦30,000 debtors ₦20,000 creditors ₦10,000 capital Liabilities: ₦20,000 share capital ₦10,000 loan What is the company's net worth?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 14
A company's trial balance as at 31st December 2022 is as follows: Debit: ₦50,000 cash ₦30,000 debtors ₦20,000 creditors ₦10,000 capital Credit: ₦20,000 share capital ₦10,000 loan What is the company's net worth?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 15
A company issued 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦950,000
B. ₦975,000
Correct C. ₦1,000,000
D. ₦1,025,000

Correct Answer: C

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Question 16
A company produces two products, X and Y, using two machines, A and B. The production process for X requires 2 hours on machine A and 3 hours on machine B, while the production process for Y requires 3 hours on machine A and 2 hours on machine B. If the company operates for 24 hours, and machine A operates for 18 hours and machine B operates for 20 hours, what is the maximum number of units of product X that can be produced?
A. 12
B. 15
Correct C. 18
D. 20

Correct Answer: C

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Question 17
A company has two departments, A and B, with the following balances in their respective ledgers:
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 18
A partnership is formed between two individuals, X and Y, with a capital contribution of ₦100,000 and ₦80,000 respectively. After one year, the partnership makes a profit of ₦50,000. If X and Y share the profit in the ratio 3:2, how much will X receive?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 19
A company uses the straight-line method of depreciation to depreciate its assets. If the asset has a useful life of 5 years and a residual value of ₦20,000, what is the annual depreciation charge if the asset cost ₦150,000?
A. ₦20,000
B. ₦25,000
Correct C. ₦30,000
D. ₦35,000

Correct Answer: C

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Question 20
A company has the following trial balance:
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 21
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank error. Prepare a bank reconciliation statement.
A. ₦30,000
Correct B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: B

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Question 22
A manufacturing company uses the process costing method. The following data is available: Direct Materials: ₦100,000; Direct Labour: ₦150,000; Factory Overheads: ₦200,000. Calculate the total cost of production.
Correct A. ₦450,000
B. ₦550,000
C. ₦650,000
D. ₦750,000

Correct Answer: A

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Question 23
A company's trial balance shows the following balances: Accounts Payable: ₦50,000; Sales Revenue: ₦200,000; Cost of Goods Sold: ₦150,000. Prepare a balance sheet.
A. ₦250,000
B. ₦350,000
Correct C. ₦450,000
D. ₦550,000

Correct Answer: C

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Question 24
A company's income statement shows the following data: Sales Revenue: ₦300,000; Cost of Goods Sold: ₦150,000; Operating Expenses: ₦100,000. Calculate the net income.
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 25
A company's balance sheet shows the following data: Assets: ₦500,000; Liabilities: ₦200,000; Equity: ₦300,000. Calculate the return on equity.
A. 20%
Correct B. 30%
C. 40%
D. 50%

Correct Answer: B

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