POST UTME LAUTECH 2017 Accounting | Objective

Are you preparing for POST UTME LAUTECH exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
Determine the amount of depreciation on a machine that cost ₦120,000 and has a useful life of 5 years, using the straight-line method.
Correct A. ₦12,000
B. ₦24,000
C. ₦36,000
D. ₦48,000

Correct Answer: A

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Question 2
A company's trial balance shows an error of ₦10,000 in the accounts payable account. Prepare the necessary journal entry to correct this error.
A. Debit Accounts Payable ₦10,000, Credit Cash ₦10,000
Correct B. Debit Cash ₦10,000, Credit Accounts Payable ₦10,000
C. Debit Accounts Payable ₦10,000, Credit Accounts Receivable ₦10,000
D. Debit Cash ₦10,000, Credit Accounts Receivable ₦10,000

Correct Answer: B

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Question 3
A company's balance sheet shows an increase in inventory of ₦50,000. Prepare the necessary journal entry to record this increase.
Correct A. Debit Inventory ₦50,000, Credit Purchases ₦50,000
B. Debit Purchases ₦50,000, Credit Inventory ₦50,000
C. Debit Inventory ₦50,000, Credit Sales ₦50,000
D. Debit Sales ₦50,000, Credit Inventory ₦50,000

Correct Answer: A

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Question 4
A company's income statement shows a net income of ₦150,000. Prepare the necessary journal entry to record this net income.
Correct A. Debit Retained Earnings ₦150,000, Credit Net Income ₦150,000
B. Debit Net Income ₦150,000, Credit Retained Earnings ₦150,000
C. Debit Net Income ₦150,000, Credit Dividends ₦150,000
D. Debit Dividends ₦150,000, Credit Net Income ₦150,000

Correct Answer: A

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Question 5
A company's balance sheet shows an increase in accounts payable of ₦20,000. Prepare the necessary journal entry to record this increase.
Correct A. Debit Accounts Payable ₦20,000, Credit Purchases ₦20,000
B. Debit Purchases ₦20,000, Credit Accounts Payable ₦20,000
C. Debit Accounts Payable ₦20,000, Credit Sales ₦20,000
D. Debit Sales ₦20,000, Credit Accounts Payable ₦20,000

Correct Answer: A

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Question 6
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2017 shows the following balances: Accounts Payable ₦120,000, Accounts Receivable ₦80,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦150,000, Gain on Sale of Equipment ₦30,000, Loss on Sale of Equipment ₦10,000, Net Income ₦120,000, Retained Earnings ₦200,000, Salaries Expense ₦80,000, Sales Revenue ₦500,000, Selling Expense ₦60,000, Taxes Payable ₦40,000, and Utilities Expense ₦20,000. Prepare a balance sheet as at 31st December 2017.
A. ₦1,030,000
Correct B. ₦1,040,000
C. ₦1,050,000
D. ₦1,060,000

Correct Answer: B

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Question 7
A partnership is formed by three individuals: John, Mary, and David. John contributes ₦300,000, Mary contributes ₦200,000, and David contributes ₦100,000. The partnership agreement states that the profits and losses will be shared in the ratio 3:2:1. If the partnership makes a profit of ₦150,000, how much will John receive?
Correct A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: A

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Question 8
A company uses the double-entry system of accounting. The company's journal entries for the month of January 2018 are as follows: Debit Accounts Payable ₦50,000, Debit Salaries Expense ₦30,000, Credit Cash ₦80,000, and Credit Sales Revenue ₦100,000. Prepare the company's ledger accounts for the month of January 2018.
A. ₦130,000
B. ₦140,000
Correct C. ₦150,000
D. ₦160,000

Correct Answer: C

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Question 9
A company uses the self-balancing ledger system. The company's ledger accounts for the month of January 2018 are as follows: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Dividends ₦20,000, Equipment ₦150,000, Gain on Sale of Equipment ₦30,000, Loss on Sale of Equipment ₦10,000, Net Income ₦120,000, Retained Earnings ₦200,000, Salaries Expense ₦80,000, Sales Revenue ₦500,000, Selling Expense ₦60,000, Taxes Payable ₦40,000, and Utilities Expense ₦20,000. Prepare the company's trial balance as at 31st January 2018.
A. ₦1,030,000
Correct B. ₦1,040,000
C. ₦1,050,000
D. ₦1,060,000

Correct Answer: B

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Question 10
A company uses the control account system. The company's control account for the month of January 2018 is as follows: Cash ₦80,000, Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Dividends ₦20,000, Equipment ₦150,000, Gain on Sale of Equipment ₦30,000, Loss on Sale of Equipment ₦10,000, Net Income ₦120,000, Retained Earnings ₦200,000, Salaries Expense ₦80,000, Sales Revenue ₦500,000, Selling Expense ₦60,000, Taxes Payable ₦40,000, and Utilities Expense ₦20,000. Prepare the company's ledger accounts for the month of January 2018.
A. ₦1,030,000
B. ₦1,040,000
Correct C. ₦1,050,000
D. ₦1,060,000

Correct Answer: C

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Question 11
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 12
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,000 | | | 2nd Jan | Bank | | ₦500 | | 3rd Jan | Cash | | ₦500 | Calculate the balance of the cash book.
Correct A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000

Correct Answer: A

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Question 13
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Sales | ₦100,000 | | | Purchases | | ₦120,000 | | Capital | ₦50,000 | | | Drawings | | ₦20,000 | Calculate the profit or loss for the year.
A. ₦30,000
B. ₦40,000
C. ₦50,000
Correct D. ₦60,000

Correct Answer: D

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Question 14
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2. Calculate the amount received from share holders.
A. ₦200,000
B. ₦210,000
Correct C. ₦220,000
D. ₦230,000

Correct Answer: C

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Question 15
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,500 | | | 2nd Jan | Bank | | ₦1,000 | | 3rd Jan | Cash | | ₦500 | Calculate the balance of the cash book.
A. ₦1,000
Correct B. ₦1,500
C. ₦2,000
D. ₦2,500

Correct Answer: B

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Question 16
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦110,000. The bank reconciliation statement reveals that there is an outstanding cheque of ₦8,000 and a deposit of ₦2,000. What is the correct balance in the cash book?
Correct A. ₦130,000
B. ₦120,000
C. ₦110,000
D. ₦100,000

Correct Answer: A

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Question 17
A company's trial balance shows the following accounts: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Profit ₦200,000. What is the correct amount of Gross Profit?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 18
A company's balance sheet shows the following accounts: Assets ₦1,000,000, Liabilities ₦500,000, and Equity ₦500,000. What is the correct amount of Net Worth?
A. ₦500,000
Correct B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000

Correct Answer: B

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Question 19
A company's cash book shows the following transactions: Cash Sale ₦100,000, Cash Purchase ₦50,000, and Bank Deposit ₦20,000. What is the correct balance in the cash book?
A. ₦70,000
B. ₦80,000
C. ₦90,000
Correct D. ₦100,000

Correct Answer: D

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Question 20
A company's trial balance shows the following accounts: Sales Revenue ₦1,000,000, Cost of Goods Sold ₦500,000, and Profit ₦500,000. What is the correct amount of Gross Profit?
A. ₦500,000
Correct B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000

Correct Answer: B

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Question 21
A company issued 5,000, 10% debentures of ₦100 each. The debentures are redeemable at a premium of 5% after 5 years. Calculate the amount of premium to be paid on redemption.
A. ₦250,000
B. ₦500,000
Correct C. ₦750,000
D. ₦1,000,000

Correct Answer: C

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Question 22
A company's trial balance as at 31st December, 2022, showed the following balances:
A. ₦1,500,000
Correct B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000

Correct Answer: B

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Question 23
A company's profit and loss account for the year ended 31st December, 2022, showed the following: Sales ₦3,000,000, Cost of Goods Sold ₦2,000,000, Gross Profit ₦1,000,000, Operating Expenses ₦500,000, Net Profit ₦500,000. Prepare the company's balance sheet as at 31st December, 2022.
A. ₦2,500,000
Correct B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000

Correct Answer: B

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Question 24
A company issued 10,000 shares of ₦10 each at a premium of 50%. Calculate the amount of premium received.
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 25
A company's balance sheet as at 31st December, 2022, showed the following: Share Capital ₦1,000,000, Retained Earnings ₦500,000, Non-Current Assets ₦1,500,000, Current Assets ₦1,000,000, Total Assets ₦3,000,000. Prepare the company's statement of changes in equity for the year ended 31st December, 2022.
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
Correct D. ₦3,000,000

Correct Answer: D

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