POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2024 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 2024 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 5,000 shares of £ 10 each at a premium of £ 2 per share. Calculate the total amount received from the issue of shares.
A. £ 50,000
Correct B. £ 60,000
C. £ 70,000
D. £ 80,000

Correct Answer: B

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Question 2
A trader bought 200 units of a product at £ 20 each. He then sold 150 units at £ 30 each and the remaining units at £ 25 each. Calculate the profit made by the trader.
A. £ 1,500
B. £ 2,000
Correct C. £ 2,500
D. £ 3,000

Correct Answer: C

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Question 3
A company's cash book showed a debit balance of £ 10,000. The bank statement showed a credit balance of £ 12,000. The difference between the two balances is £ 2,000. Calculate the bank's reconciliation statement.
A. £ 10,000
B. £ 12,000
C. £ 14,000
Correct D. £ 16,000

Correct Answer: D

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Question 4
A company's trading account showed a profit of £ 50,000. The company's profit and loss account showed a profit of £ 60,000. Calculate the company's balance sheet.
A. £ 100,000
B. £ 120,000
C. £ 140,000
Correct D. £ 160,000

Correct Answer: D

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Question 5
A company issued 5,000 shares of £ 10 each at a premium of £ 2 per share. Calculate the total amount received from the issue of shares.
A. £ 50,000
Correct B. £ 60,000
C. £ 70,000
D. £ 80,000

Correct Answer: B

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Question 6
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦120 each. During the year, 300 units were sold, and 200 units were purchased at ₦150 each. Calculate the cost of goods sold.
A. ₦42,000
Correct B. ₦45,000
C. ₦48,000
D. ₦51,000

Correct Answer: B

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Question 7
A manufacturing company uses a job order costing system. It has two departments: Cutting and Assembly. The Cutting department incurred the following costs during the month: ₦120,000 in direct labor, ₦30,000 in indirect labor, and ₦50,000 in overhead. The Assembly department incurred the following costs during the month: ₦80,000 in direct labor, ₦20,000 in indirect labor, and ₦40,000 in overhead. What is the total cost of the Cutting department?
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 8
A company uses the double-entry system of accounting. On January 1, 2024, it had the following balances: Cash ₦100,000, Accounts Receivable ₦50,000, Inventory ₦75,000, Accounts Payable ₦30,000, and Common Stock ₦150,000. During the year, it sold ₦60,000 worth of goods, collected ₦40,000 from customers, purchased ₦80,000 worth of goods, and paid ₦20,000 to suppliers. What is the new balance of Cash?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 9
A company uses the straight-line method of depreciation. It purchased a machine on January 1, 2024, for ₦200,000. The machine has an estimated useful life of 5 years and a residual value of ₦20,000. What is the annual depreciation expense?
A. ₦36,000
B. ₦40,000
Correct C. ₦42,000
D. ₦44,000

Correct Answer: C

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Question 10
A company uses the weighted average method of inventory valuation. It had the following inventory balances at the beginning and end of the year: Beginning Inventory ₦50,000, Purchases ₦150,000, and Ending Inventory ₦75,000. What is the cost of goods sold?
A. ₦125,000
B. ₦130,000
Correct C. ₦135,000
D. ₦140,000

Correct Answer: C

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Question 11
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000, its residual value is ₦20,000, and it is used for 5 years, what is the annual depreciation charge?
A. ₦18,000
Correct B. ₦20,000
C. ₦22,000
D. ₦24,000

Correct Answer: B

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Question 12
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 ₦150,000, how much will A receive?
Correct A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: A

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Question 13
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦100,000, and Common Stock ₦150,000. What is the company's net income?
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 14
A company uses the double-declining balance method to depreciate its assets. If the asset's cost is ₦120,000, its residual value is ₦20,000, and it is used for 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦26,000
Correct C. ₦28,000
D. ₦30,000

Correct Answer: C

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Question 15
A company's balance sheet shows the following balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦30,000. What is the company's total liabilities?
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 16
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦950,000
Correct B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000

Correct Answer: B

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Question 17
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. If the profit is divided in the ratio 2:3, what is the share of profit of partner A?
Correct A. ₦400,000
B. ₦600,000
C. ₦800,000
D. ₦1,000,000

Correct Answer: A

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Question 18
A company purchases a machine for ₦500,000 and sells it after one year for ₦600,000. Calculate the profit made from the sale of the machine.
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 19
A company issues 5,000 8% shares of ₦20 each at a premium of ₦5. Calculate the total amount received from shareholders.
A. ₦125,000
B. ₦150,000
Correct C. ₦175,000
D. ₦200,000

Correct Answer: C

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Question 20
A company purchases a machine for ₦300,000 and sells it after two years for ₦450,000. Calculate the profit made from the sale of the machine.
A. ₦75,000
B. ₦100,000
Correct C. ₦125,000
D. ₦150,000

Correct Answer: C

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Question 21
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Prepare the journal entry to record the issue of these shares.
A. Debit Cash 75,000, Credit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000
B. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000
Correct C. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000
D. Debit Paid-in Capital in Excess of Par Value 25,000, Credit Common Stock 50,000, Credit Cash 75,000

Correct Answer: C

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Question 22
A company has the following trial balance: Debit 100,000, Credit 120,000. What is the correct journal entry to correct the error?
Correct A. Debit 20,000, Credit 20,000
B. Debit 20,000, Credit 20,000
C. Debit 20,000, Credit 20,000
D. Debit 20,000, Credit 20,000

Correct Answer: A

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Question 23
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 4 each. Prepare the journal entry to record the issue of these shares.
A. Debit Cash 40,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000
B. Debit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000, Credit Cash 40,000
Correct C. Debit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000, Credit Cash 40,000
D. Debit Paid-in Capital in Excess of Par Value 30,000, Credit Common Stock 10,000, Credit Cash 40,000

Correct Answer: C

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Question 24
A company has the following balance sheet: Assets 100,000, Liabilities 80,000, Equity 20,000. What is the correct journal entry to correct the error?
Correct A. Debit 20,000, Credit 20,000
B. Debit 20,000, Credit 20,000
C. Debit 20,000, Credit 20,000
D. Debit 20,000, Credit 20,000

Correct Answer: A

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Question 25
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Prepare the journal entry to record the issue of these shares.
A. Debit Cash 75,000, Credit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000
B. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000
Correct C. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000
D. Debit Paid-in Capital in Excess of Par Value 25,000, Credit Common Stock 50,000, Credit Cash 75,000

Correct Answer: C

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