POST UTME LAUTECH 2018 Accounting | Objective

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Question 1 View Details
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.
Correct 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.

Correct Answer: B

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Question 2 View Details
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?
Correct A. ₦18,000
B. ₦22,000
C. ₦26,000
D. ₦30,000

Correct Answer: A

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Question 3 View Details
A company's balance sheet at the end of the year shows the following: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Creditors | 15,000 | | Stock | 40,000 | | | | | | | | What is the total amount of the company's equity at the end of the year?
A. ₦55,000
B. ₦60,000
Correct C. ₦65,000
D. ₦70,000

Correct Answer: C

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Question 4 View Details
A company's trial balance shows the following: | Account | Debit | Credit | | --- | --- | --- | | Rent Received | 15,000 | | | Rent Paid | | 20,000 | | | | | 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.
Correct 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.

Correct Answer: B

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Question 5 View Details
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
Correct B. ₦31,000
C. ₦35,000
D. ₦39,000

Correct Answer: B

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Question 6 View Details
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
Correct B. ₦525,000
C. ₦550,000
D. ₦575,000

Correct Answer: B

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Question 7 View Details
A company's trial balance showed the following balances: Accounts Payable ₦200,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000. Prepare the company's income statement.
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

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Question 8 View Details
A company purchased a machine for ₦1,000,000 and depreciated it by 10% per annum using the straight-line method. Calculate the machine's value after 3 years.
A. ₦900,000
B. ₦800,000
Correct C. ₦700,000
D. ₦600,000

Correct Answer: C

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Question 9 View Details
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from share holders.
A. ₦150,000
B. ₦175,000
C. ₦200,000
Correct D. ₦225,000

Correct Answer: D

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Question 10 View Details
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
Correct C. ₦1,000,000
D. ₦1,250,000

Correct Answer: C

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Question 11 View Details
A company issues 5,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the total premium received.
Correct A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000

Correct Answer: A

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Question 12 View Details
A company's trading account shows a profit of ₦150,000. Its profit and loss account shows a loss of ₦50,000. Calculate the company's net profit.
Correct A. ₦100,000
B. ₦100,000
C. ₦100,000
D. ₦100,000

Correct Answer: A

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Question 13 View Details
A company's balance sheet shows a current liability of ₦200,000. Its profit and loss account shows a profit of ₦150,000. Calculate the company's net worth.
Correct A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000

Correct Answer: A

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Question 14 View Details
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.
Correct A. ₦100,000
B. ₦100,000
C. ₦100,000
D. ₦100,000

Correct Answer: A

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Question 15 View Details
A company's balance sheet shows a non-current asset of ₦500,000. Its profit and loss account shows a profit of ₦150,000. Calculate the company's net worth.
Correct A. ₦650,000
B. ₦650,000
C. ₦650,000
D. ₦650,000

Correct Answer: A

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Question 16 View Details
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
Correct B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000

Correct Answer: B

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Question 17 View Details
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 bank account for the year ended December 31, 2018.
A. ₦1,500,000
B. ₦2,500,000
C. ₦3,000,000
Correct D. ₦3,500,000

Correct Answer: D

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Question 18 View Details
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
Correct D. ₦400,000

Correct Answer: D

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Question 19 View Details
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 assets account for the year ended December 31, 2018.
A. ₦1,500,000
B. ₦2,500,000
Correct C. ₦3,000,000
D. ₦3,500,000

Correct Answer: C

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Question 20 View Details
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 bank overdraft account for the year ended December 31, 2018.
A. ₦1,500,000
B. ₦2,500,000
C. ₦3,000,000
Correct D. ₦3,500,000

Correct Answer: D

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Question 21 View Details
In a partnership account, the capital of a partner who leaves the business is transferred to the remaining partners in the ratio of their existing capitals. If the capital of the remaining partners is in the ratio of 3:5 and the partner who leaves has a capital of ₦120,000, what is the total capital of the remaining partners?
A. ₦180,000
Correct B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: B

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Question 22 View Details
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
Correct D. ₦250,000

Correct Answer: D

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Question 23 View Details
A company's trading account for the year ended 31st December 20X7 is as follows: Sales: ₦500,000 Returns outwards: ₦20,000 Returns inwards: ₦10,000 Cost of goods sold: ₦300,000 What is the gross profit for the year?
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

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Question 24 View Details
A company's balance sheet as at 31st December 20X7 is as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦100,000 Stock: ₦150,000 Total assets: ₦300,000 ₦ Liabilities: Creditors: ₦80,000 Capital: ₦220,000 Total liabilities: ₦300,000 What is the amount of capital that the company has?
Correct A. ₦220,000
B. ₦240,000
C. ₦260,000
D. ₦280,000

Correct Answer: A

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Question 25 View Details
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
Correct B. ₦160,000
C. ₦170,000
D. ₦180,000

Correct Answer: B

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