POST UTME LEAD CITY UNIVERSITY 2017 Accounting | Objective

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Question 1
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
Correct A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: A

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Question 2
A trial balance for XYZ Ltd. is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 | Identify the error in the trial balance.
A. Cash account has a debit balance of ₦5,000.
Correct B. Accounts Payable account has a credit balance of ₦5,000.
C. Sales account has a debit balance of ₦5,000.
D. Net Income account has a credit balance of ₦5,000.

Correct Answer: B

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Question 3
A company has the following ledger balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 | Prepare a trial balance.
Correct A. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 |
B. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦45,000 | ₦50,000 |
C. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 |
D. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦45,000 | ₦50,000 |

Correct Answer: A

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Question 4
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
Correct A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: A

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Question 5
A company has the following ledger balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 | Prepare a trial balance.
A. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 |
B. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦45,000 | ₦50,000 |
C. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 |
D. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦45,000 | ₦50,000 |

Correct Answer: VIEW ANSWER

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Question 6
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦900,000
B. ₦950,000
Correct C. ₦1,000,000
D. ₦1,050,000

Correct Answer: C

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Question 7
A manufacturing company has the following transactions: Purchased raw materials on credit ₦50,000; sold goods on credit ₦80,000; and purchased office equipment on cash ₦20,000. Prepare a journal entry for the above transactions.
Correct A. Debit Raw Materials ₦50,000, Credit Office Equipment ₦20,000
B. Debit Office Equipment ₦20,000, Credit Raw Materials ₦50,000
C. Debit Raw Materials ₦50,000, Credit Sales ₦80,000
D. Debit Sales ₦80,000, Credit Raw Materials ₦50,000

Correct Answer: A

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Question 8
A company's trial balance as at 31st December, 2022 is as follows: Cash ₦50,000; Bank ₦20,000; Accounts Payable ₦30,000; Sales Revenue ₦80,000; Cost of Goods Sold ₦40,000. Prepare a balance sheet as at 31st December, 2022.
A. ₦150,000
Correct B. ₦180,000
C. ₦200,000
D. ₦220,000

Correct Answer: B

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Question 9
A company issued 10,000, 10% debentures of ₦100 each at a premium of 5%. Calculate the amount received from the debenture holders.
Correct A. ₦1,050,000
B. ₦1,000,000
C. ₦950,000
D. ₦900,000

Correct Answer: A

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Question 10
A company's balance sheet as at 31st December, 2022 is as follows: Cash ₦50,000; Bank ₦20,000; Accounts Payable ₦30,000; Sales Revenue ₦80,000; Cost of Goods Sold ₦40,000. Prepare a trading account as at 31st December, 2022.
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 11
In a public sector accounting system, what is the primary purpose of the 'General Ledger'?
Correct A. To record all financial transactions of the organization
B. To prepare the annual financial statements
C. To manage the organization's cash flow
D. To control the organization's assets

Correct Answer: A

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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 ₦120,000, what is the share of profit of partner A?
A. ₦90,000
B. ₦60,000
Correct C. ₦72,000
D. ₦84,000

Correct Answer: C

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Question 13
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦50,000, while the general ledger shows a balance of ₦70,000. What is the reason for the difference?
A. The cash book is not up-to-date
B. The general ledger is not up-to-date
Correct C. There is a discrepancy in the accounting records
D. The cash book is incorrect

Correct Answer: C

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Question 14
A company prepares a trading account, profit and loss account, and balance sheet. What is the purpose of the trading account?
A. To show the profit or loss of the company
B. To show the financial position of the company
Correct C. To show the revenue and expenses of the company
D. To show the assets and liabilities of the company

Correct Answer: C

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Question 15
A company uses the single entry system of accounting. The company's cash book shows a balance of ₦100,000. What is the purpose of the single entry system?
Correct A. To simplify the accounting process
B. To reduce the cost of accounting
C. To increase the accuracy of accounting records
D. To reduce the time taken to prepare financial statements

Correct Answer: A

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Question 16
A company issues 10,000, 5% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest payable on the debentures for the first year.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 17
A manufacturing company has the following transactions during the year: Purchased raw materials worth ₦100,000 on credit. Sold goods worth ₦150,000 for cash. Purchased machinery worth ₦50,000 on credit. Sold goods worth ₦80,000 on credit. Paid cash of ₦20,000 to a creditor. Prepare the cash book and bank reconciliation statement.
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 18
A company has the following trial balance: Debtors: ₦100,000 Stock: ₦50,000 Bills Receivable: ₦20,000 Bills Payable: ₦10,000 Capital: ₦200,000 Drawings: ₦20,000 Sales: ₦150,000 Purchases: ₦80,000 Determine the net profit or loss for the year.
A. ₦30,000
Correct B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: B

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Question 19
A company has the following transactions during the year: Issued 10,000, 5% shares of ₦10 each at a premium of 50%. Sold goods worth ₦100,000 for cash. Purchased raw materials worth ₦50,000 on credit. Sold goods worth ₦80,000 on credit. Paid cash of ₦20,000 to a creditor. Prepare the share capital account.
A. ₦500,000
B. ₦600,000
Correct C. ₦700,000
D. ₦800,000

Correct Answer: C

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Question 20
A company has the following transactions during the year: Purchased raw materials worth ₦100,000 on credit. Sold goods worth ₦150,000 for cash. Purchased machinery worth ₦50,000 on credit. Sold goods worth ₦80,000 on credit. Paid cash of ₦20,000 to a creditor. Prepare the cash book and bank reconciliation statement.
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 21
A company uses the double-entry system of accounting. The following transactions occurred during the month of January:
A. Debit Cash 1,000 and Credit Accounts Payable 1,000
Correct B. Debit Accounts Payable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Sales 1,000
D. Debit Sales 1,000 and Credit Cash 1,000

Correct Answer: B

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Question 22
A company's cash book shows the following transactions:
A. ₦1,500
B. ₦1,200
Correct C. ₦1,800
D. ₦1,600

Correct Answer: C

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Question 23
A company's bank statement shows the following balance:
A. ₦10,000
B. ₦12,000
Correct C. ₦15,000
D. ₦18,000

Correct Answer: C

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Question 24
A company's assets are valued at ₦1,500,000. The company's liabilities are ₦800,000. What is the company's equity?
Correct A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: A

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Question 25
A company's cash book shows the following transactions:
A. ₦1,200
Correct B. ₦1,500
C. ₦1,800
D. ₦2,000

Correct Answer: B

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