POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2018 Accounting | Objective

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Question 1
A public sector entity has the following transactions: Received revenue of ₦100,000; paid salaries of ₦80,000; and purchased goods for ₦20,000. Prepare the cash book for the month.
A. Cash Book
B. Revenue Ledger
C. Salaries Ledger
D. Purchases Ledger
Question 2
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
C. ₦30,000
D. ₦35,000
Question 3
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?
A. Improved accuracy
B. Reduced labor costs
C. Increased security
D. Enhanced customer satisfaction
Question 4
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦1,500,000, calculate the amount of profit that will be credited to A's capital account.
A. ₦1,200,000
B. ₦1,350,000
C. ₦1,500,000
D. ₦1,650,000
Question 5
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.
A. ₦450,000
B. ₦550,000
C. ₦650,000
D. ₦750,000
Question 6
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
C. ₦1,000,000
D. ₦1,025,000
Question 7
A company has the following trial balance:
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 8
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 9
A business entity uses the single-entry system of accounting. The following transactions occurred during the year: Purchased office equipment for ₦120,000; sold goods for ₦150,000; and paid rent of ₦30,000. Prepare the ledger account for the office equipment.
A. Office Equipment Ledger
B. Rent Ledger
C. Sales Ledger
D. Purchases Ledger
Question 10
A company has the following transactions: Issued 10,000 shares of ₦10 each at a premium of ₦2 per share; and received cash from share applications of ₦120,000. Prepare the share capital account for the company.
A. Share Capital Account
B. Share Premium Account
C. Share Application Account
D. Shareholders' Equity Account
Question 11
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
B. ₦1,000
C. ₦1,500
D. ₦2,000
Question 12
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
B. ₦10,000
C. ₦12,000
D. ₦14,000
Question 13
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
C. ₦1,000,000
D. ₦1,025,000
Question 14
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
B. ₦20,000
C. ₦10,000
D. ₦5,000
Question 15
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5,000 10% debentures of ₦ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 120,000
B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000

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