POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2021 Accounting | Objective

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Question 1
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦100,000 | | | 2 Jan | Accounts Payable | | ₦50,000 | | 3 Jan | Sales | | ₦200,000 | | 4 Jan | Cost of Goods Sold | ₦150,000 | | | 5 Jan | Net Income | | ₦50,000 | Prepare the journal entries for the transactions.
A. Jan 1: Cash | ₦100,000 | Accounts Payable | ₦50,000 Jan 2: Sales | ₦200,000 | Cost of Goods Sold | ₦150,000 Jan 3: Net Income | ₦50,000 |
B. Jan 1: Cash | ₦100,000 | Accounts Payable | ₦50,000 Jan 2: Sales | ₦200,000 | Cost of Goods Sold | ₦150,000 Jan 3: Net Income | ₦50,000 |
C. Jan 1: Cash | ₦100,000 | Accounts Payable | ₦50,000 Jan 2: Sales | ₦200,000 | Cost of Goods Sold | ₦150,000 Jan 3: Net Income | ₦50,000 |
D. Jan 1: Cash | ₦100,000 | Accounts Payable | ₦50,000 Jan 2: Sales | ₦200,000 | Cost of Goods Sold | ₦150,000 Jan 3: Net Income | ₦50,000 |
Question 2
A bank reconciliation statement shows a difference of ₦5,000 between the cash book balance and the bank statement balance. What is the reason for this difference?
A. Bank error
B. Cash book error
C. Cheque not yet cleared
D. Deposit not yet credited
Question 3
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. After 2 years, A withdraws ₦50,000 and B adds ₦20,000. Calculate the new capital of the partnership.
A. ₦400,000
B. ₦450,000
C. ₦500,000
D. ₦550,000
Question 4
A partnership has two partners, A and B. The capital accounts of A and B are ₦200,000 and ₦300,000 respectively. The profit-sharing ratio is 2:3. Calculate the profit to be distributed to each partner.
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 5
A manufacturing company has the following departmental accounts: Production Department: ₦500,000, Sales Department: ₦300,000. What is the total profit of the company?
A. ₦800,000
B. ₦700,000
C. ₦600,000
D. ₦900,000
Question 6
A company's cash book shows a debit balance of ₦120,000. The bank statement shows a credit balance of ₦150,000. The difference between the two is ₦30,000. What is the reason for the difference?
A. The company has not yet deposited the cash into the bank.
B. The company has not yet received the cash from the bank.
C. The company has written a cheque that has not yet been presented for payment.
D. The company has received a bank transfer that has not yet been credited to the account.
Question 7
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 8
A company has the following control account: Sales Ledger: ₦500,000, Purchase Ledger: ₦300,000. What is the total value of the company's assets?
A. ₦800,000
B. ₦700,000
C. ₦600,000
D. ₦900,000
Question 9
A company's balance sheet as of December 31, 2022, is as follows: Assets 100,000; Liabilities 50,000; Equity 50,000. What is the company's current ratio?
A. 2:1
B. 3:1
C. 4:1
D. 5:1
Question 10
A company's assets are valued at ₦1,500,000. The company's liabilities are ₦800,000. What is the company's equity?
A. ₦700,000
B. ₦1,000,000
C. ₦1,300,000
D. ₦1,700,000
Question 11
A company uses the perpetual inventory system. On January 1, 2022, it had 500 units of a product in stock, valued at ₦25 each. During the year, 300 units were sold, and 200 units were purchased at ₦30 each. The company uses the weighted average method to value its inventory. What is the total value of inventory on December 31, 2022?
A. ₦9,500
B. ₦10,000
C. ₦10,500
D. ₦11,000
Question 12
A company has the following transactions: Jan 1, 2022, Cash 500,000; Jan 10, 2022, Purchased goods for ₦200,000; Jan 15, 2022, Sold goods for ₦150,000. Prepare the cash book and bank reconciliation statement.
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 13
A company's financial statements show a net income of ₦200,000. The company's balance sheet shows a total assets of ₦1,500,000 and total liabilities of ₦800,000. What is the company's return on equity?
A. 10%
B. 20%
C. 30%
D. 40%
Question 14
A company uses the double entry system to record its transactions. The company's ledger account for 'Office Equipment' shows a debit balance of ₦120,000. The company's trial balance also shows a credit balance of ₦120,000 for 'Office Equipment'. What is the correct journal entry to record the purchase of office equipment?
A. Debit Office Equipment ₦120,000, Credit Cash ₦120,000
B. Debit Office Equipment ₦120,000, Credit Bank ₦120,000
C. Debit Office Equipment ₦120,000, Credit Office Supplies ₦120,000
D. Debit Office Equipment ₦120,000, Credit Office Expenses ₦120,000
Question 15
A company's trial balance as at December 31, 2022, is as follows: Accounts Payable ₦50,000; Accounts Receivable ₦30,000; Common Stock ₦100,000; Dividends ₦20,000; Equipment ₦150,000; Interest Expense ₦10,000; Interest Income ₦5,000; Net Income ₦50,000; Retained Earnings ₦80,000; Salaries Expense ₦30,000; Sales Revenue ₦150,000; Taxes Payable ₦10,000. Prepare the balance sheet.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

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