POST UTME LAUTECH 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the weighted average method of inventory valuation. If the cost of goods available for sale is ₦1,000,000, the cost of goods sold is ₦800,000, and the total number of units sold is 10,000, what is the weighted average cost per unit?
A. ₦80
B. ₦90
C. ₦100
D. ₦110
Question 2
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦15,000 | | 3rd Jan | Cash | ₦8,000 | | | 4th Jan | Bank | | ₦12,000 | What is the correct balance of the company's cash book at the end of the month?
A. ₦18,000
B. ₦22,000
C. ₦26,000
D. ₦30,000
Question 3
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2. Calculate the amount received from shareholders.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 4
A company uses the single entry system to record its transactions. The following transactions were recorded in the year ended December 31, 2018: (i) Cash received from customers, ₦1,500,000; (ii) Cash paid to suppliers, ₦800,000; (iii) Cash paid to employees, ₦300,000; (iv) Cash received from the sale of assets, ₦200,000; (v) Cash paid for rent, ₦100,000; (vi) Cash received from the sale of goods, ₦1,200,000; (vii) Cash paid to the bank, ₦500,000; (viii) Cash received from the bank, ₦600,000. Prepare the rent account for the year ended December 31, 2018.
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 5
A company uses the straight-line method of depreciation. If the cost of a machine is ₦120,000 and its residual value is ₦20,000, what is the annual depreciation charge?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 6
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦15,000 | | 3rd Jan | Cash | ₦8,000 | | | 4th Jan | Bank | | ₦12,000 | What is the correct balance of the company's bank account at the end of the month?
A. ₦27,000
B. ₦31,000
C. ₦35,000
D. ₦39,000
Question 7
A company's manufacturing account shows a loss of ₦50,000. Its trading account shows a profit of ₦150,000. Calculate the company's net profit.
A. ₦100,000
B. ₦100,000
C. ₦100,000
D. ₦100,000
Question 8
A company's balance sheet showed the following balances: Assets ₦1,000,000, Liabilities ₦500,000, Equity ₦500,000. Prepare the company's statement of changes in equity.
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
D. ₦1,250,000
Question 9
A company uses the single entry system to record its transactions. The following transactions were recorded in the year ended December 31, 2018: (i) Cash received from customers, ₦1,500,000; (ii) Cash paid to suppliers, ₦800,000; (iii) Cash paid to employees, ₦300,000; (iv) Cash received from the sale of assets, ₦200,000; (v) Cash paid for rent, ₦100,000; (vi) Cash received from the sale of goods, ₦1,200,000; (vii) Cash paid to the bank, ₦500,000; (viii) Cash received from the bank, ₦600,000. Prepare the cash account for the year ended December 31, 2018.
A. ₦1,500,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 10
A company's trial balance shows an error of ₦1,500 due to an omission of a transaction. The error is discovered after the preparation of the financial statements. What is the correct journal entry to rectify the error?
A. Debit Cash ₦1,500, Credit Profit and Loss Account ₦1,500
B. Debit Profit and Loss Account ₦1,500, Credit Cash ₦1,500
C. Debit Profit and Loss Account ₦1,500, Credit Capital ₦1,500
D. Debit Capital ₦1,500, Credit Profit and Loss Account ₦1,500
Question 11
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company received a total of ₦250,000, what is the amount received from the issue of shares?
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦250,000
Question 12
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct treatment of these accounts in the preparation of the company's final accounts?
A. The debit balance in 'Rent Received' is ignored and the credit balance in 'Rent Paid' is ignored.
B. The debit balance in 'Rent Received' is transferred to the profit and loss account and the credit balance in 'Rent Paid' is transferred to the profit and loss account.
C. The debit balance in 'Rent Received' is transferred to the profit and loss account and the credit balance in 'Rent Paid' is ignored.
D. The debit balance in 'Rent Received' is ignored and the credit balance in 'Rent Paid' is transferred to the profit and loss account.
Question 13
A company's profit and loss account for the year ended 31st December 20X7 is as follows: ₦ Turnover: ₦500,000 Returns outwards: ₦20,000 Returns inwards: ₦10,000 Cost of goods sold: ₦300,000 Gross profit: ₦210,000 Operating expenses: ₦50,000 Net profit: ₦160,000 What is the net profit for the year?
A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000
Question 14
A company uses the double-declining balance method to depreciate its assets. The company's asset has a cost of ₦120,000 and a useful life of 5 years. What is the annual depreciation charge?
A. ₦24,000
B. ₦30,000
C. ₦36,000
D. ₦42,000
Question 15
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the total amount received from debenture holders.
A. ₦500,000
B. ₦525,000
C. ₦550,000
D. ₦575,000

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub: