POST UTME LEAD CITY UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
C. ₦50,000
D. ₦60,000
Question 2
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000
Question 3
A company's cash book shows the following transactions:
A. ₦1,200
B. ₦1,500
C. ₦1,800
D. ₦2,000
Question 4
A company's cash book shows the following transactions:
A. ₦1,500
B. ₦1,200
C. ₦1,800
D. ₦1,600
Question 5
A company's assets are valued at ₦2,000,000. The company's liabilities are ₦1,200,000. What is the company's equity?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000
Question 6
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000
Question 7
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
C. ₦1,000,000
D. ₦1,050,000
Question 8
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 |
Question 9
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
C. ₦50,000
D. ₦60,000
Question 10
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
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 11
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.
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
Question 12
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 |
Question 13
A company issued 10,000, 10% debentures of ₦100 each at a premium of 5%. Calculate the amount received from the debenture holders.
A. ₦1,050,000
B. ₦1,000,000
C. ₦950,000
D. ₦900,000
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
C. To show the revenue and expenses of the company
D. To show the assets and liabilities of the company
Question 15
A company's assets are valued at ₦1,500,000. The company's liabilities are ₦800,000. What is the company's equity?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

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