POST UTME LEAD CITY UNIVERSITY 2021 Accounting | Objective

Are you preparing for POST UTME LEAD CITY UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The company also issued 2,000, 10% debentures of 100 each. Prepare the journal entry to record the issue of shares and debentures.
A. Debit Cash 50,000, Credit Share Capital 50,000, Credit Debentures 200,000
B. Debit Share Capital 50,000, Credit Cash 50,000, Credit Debentures 200,000
Correct C. Debit Cash 50,000, Credit Share Capital 50,000, Credit Debentures 200,000
D. Debit Share Capital 50,000, Credit Cash 50,000, Credit Debentures 200,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Cash | 500 | | | 3rd Jan | Cash | | 1,500 | What is the correct balance of the cash account?
A. ₦1,500
Correct B. ₦2,500
C. ₦3,500
D. ₦4,500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | | | Bank | | 15,000 | | Accounts Payable | | 20,000 | | Sales | | 30,000 | What is the correct balance of the Cash account?
Correct A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦30,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If an asset cost ₦100,000 and has a residual value of ₦20,000, what is the annual depreciation charge?
A. ₦8,000
Correct B. ₦10,000
C. ₦12,000
D. ₦14,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's bank reconciliation statement shows the following differences: | Date | Particulars | Bank | Cash Book | | --- | --- | --- | --- | | 1st Jan | Bank Overdraft | | 1,000 | | 2nd Jan | Bank Overdraft | | 500 | | 3rd Jan | Bank Overdraft | | | 1,500 | What is the correct balance of the bank account?
A. ₦1,500
Correct B. ₦2,500
C. ₦3,500
D. ₦4,500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company uses the cash book to record all its cash transactions. The cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦100,000. What is the reason for the difference?
A. The company has not recorded all its cash transactions.
B. The bank has charged a fee for the month.
C. The company has deposited cash into the bank but has not yet recorded it.
Correct D. The company has withdrawn cash from the bank but has not yet recorded it.

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company has two departments: A and B. Department A has a balance of ₦50,000 in its control account, while Department B has a balance of ₦30,000. The total balance of the company is ₦80,000. What is the balance of the company's control account?
Correct A. ₦80,000
B. ₦70,000
C. ₦60,000
D. ₦90,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company uses the self-balancing ledger system. The ledger shows a balance of ₦120,000. However, the trial balance shows a balance of ₦100,000. What is the reason for the difference?
A. The company has not recorded all its transactions.
Correct B. The company has made an error in its accounting records.
C. The company has not updated its ledger.
D. The company has not prepared its trial balance.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company has a cash balance of ₦50,000 and a bank overdraft of ₦20,000. What is the company's net cash position?
Correct A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company has a cash balance of ₦100,000 and a bank overdraft of ₦30,000. What is the company's net cash position?
Correct A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦70,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦130,000. What is the likely reason for the discrepancy?
A. The company has not yet deposited the cash into the bank.
Correct B. The bank has not yet credited the company's account for the deposited cash.
C. The company has not yet debited the cash from the bank account.
D. The company has not yet recorded the cash transaction in the cash book.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A partnership has two partners, A and B. The capital contributions of A and B are ₦80,000 and ₦60,000 respectively. If the profit is shared in the ratio 3:2, what is the share of profit of partner A?
Correct A. ₦36,000
B. ₦48,000
C. ₦60,000
D. ₦72,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the issue price is ₦15 per share, what is the total amount received from the issue of shares?
A. ₦15,000
Correct B. ₦15,500
C. ₦16,000
D. ₦16,500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's manufacturing account shows a cost of goods sold of ₦150,000. If the company's sales revenue is ₦200,000, what is the gross profit?
A. ₦25,000
B. ₦50,000
Correct C. ₦75,000
D. ₦100,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's departmental accounts show a profit of ₦30,000 in the sales department and a loss of ₦20,000 in the production department. What is the overall profit or loss of the company?
Correct A. Profit of ₦10,000
B. Loss of ₦10,000
C. Profit of ₦50,000
D. Loss of ₦50,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's trial balance shows an error of \pm \frac{1}{2} in the debit side of the account. If the total debit is \\ 1,500, what is the correct total debit?
A. \1,499.50
Correct B. \1,500.50
C. \1,501.00
D. \1,502.50

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A manufacturing company uses a job costing system. The following information is available for the month of January: Direct Materials \\ 1,500, Direct Labour \\ 2,000, Overheads \\ 1,800. If the total cost of production is \\ 5,000, what is the cost of goods manufactured?
A. \\ 4,500
B. \\ 4,800
Correct C. \\ 5,000
D. \\ 5,200

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company issues 10% debentures of \\ 100 each at a discount of 5% and 7% respectively. If the company receives \\ 95 for each debenture, what is the total amount received?
A. \\ 950
B. \\ 1,000
Correct C. \\ 1,050
D. \\ 1,100

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company's balance sheet shows an increase in its current assets of \\ 10,000 and a decrease in its current liabilities of \\ 5,000. If the company's net working capital is \\ 20,000, what is the increase in its net working capital?
A. \\ 5,000
Correct B. \\ 10,000
C. \\ 15,000
D. \\ 20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's trial balance shows an error of \pm \frac{1}{4} in the credit side of the account. If the total credit is \\ 2,000, what is the correct total credit?
A. \\ 1,975
B. \\ 1,999
Correct C. \\ 2,000
D. \\ 2,025

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company's cash book shows a debit balance of ₦150,000. However, the bank statement shows a credit balance of ₦120,000. What is the likely reason for the discrepancy?
A. The company has not recorded a bank overdraft.
B. The company has not recorded a bank loan.
Correct C. The company's cash book is not up-to-date.
D. The bank has made an error in its statement.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A government agency is required to prepare a budget for the upcoming fiscal year. The budget must include a breakdown of expected revenues and expenditures. What is the primary purpose of this budget?
A. To determine the agency's financial position.
Correct B. To plan for future financial needs.
C. To allocate resources among different departments.
D. To report on past financial performance.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A manufacturing company produces two products: A and B. Product A requires 2 hours of labor and 1 hour of machine time, while product B requires 1 hour of labor and 2 hours of machine time. If the company has 8 hours of labor and 6 hours of machine time available, how many units of each product should it produce to maximize profit?
A. 10 units of A and 6 units of B.
Correct B. 8 units of A and 4 units of B.
C. 6 units of A and 2 units of B.
D. 4 units of A and 8 units of B.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company's trading account shows a profit of ₦500,000. However, the profit and loss account shows a loss of ₦200,000. What is the likely reason for the discrepancy?
A. The company has not recorded a gain on the sale of assets.
B. The company has not recorded a loss on the sale of assets.
Correct C. The company's trading account is not up-to-date.
D. The company's profit and loss account is not accurate.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company's balance sheet shows a total asset value of ₦1,500,000. However, the company's accounting records show a total asset value of ₦1,800,000. What is the likely reason for the discrepancy?
A. The company has not recorded a depreciation expense.
B. The company has not recorded a gain on the sale of assets.
Correct C. The company's balance sheet is not up-to-date.
D. The company's accounting records are not accurate.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

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:
Chat with Support