POST UTME LEAD CITY UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000, 10% preference shares of ₦10 each at a premium of ₦2 per share. Calculate the total premium received.
A. ₦50,000
B. ₦100,000
C. ₦50,000
D. ₦100,000
Question 2
A company's asset valuation schedule shows the following balances: | Asset | Cost | Accumulated Depreciation | Net Book Value | | --- | --- | --- | --- | | Machinery | 10,000 | 5,000 | 5,000 | | Furniture | 8,000 | 3,000 | 5,000 | | Vehicles | 6,000 | 2,000 | 4,000 | What is the correct balance of the net book value account?
A. ₦14,000
B. ₦12,000
C. ₦10,000
D. ₦8,000
Question 3
A company uses the single-entry system of accounting. The following transactions occurred during the month of January: Purchased office supplies for ₦10,000, sold goods for ₦50,000, and paid salaries of ₦20,000. Prepare the ledger accounts for these transactions.
A. Office Supplies ₦10,000, Sales ₦50,000, Salaries ₦20,000
B. Office Supplies ₦10,000, Sales ₦50,000, Salaries ₦20,000
C. Office Supplies ₦10,000, Sales ₦50,000, Salaries ₦20,000
D. Office Supplies ₦10,000, Sales ₦50,000, Salaries ₦20,000
Question 4
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2. The company also issued 5,000 ordinary shares of ₦5 each at a premium of ₦1. Calculate the total amount received from shareholders.
A. ₦250,000
B. ₦250,000
C. ₦250,000
D. ₦250,000
Question 5
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. If the profit for the year is ₦20,000, what is the share of profit of partner A?
A. ₦10,000
B. ₦12,000
C. ₦14,000
D. ₦16,000
Question 6
A company's accounting policy requires that depreciation be calculated using the straight-line method. The company purchased a machine for ₦120,000 and it is expected to have a useful life of 5 years. Calculate the annual depreciation charge.
A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦22,000
Question 7
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit for the year is ₦20,000. Prepare the profit and loss account for the partnership.
A. ₦80,000
B. ₦70,000
C. ₦60,000
D. ₦90,000
Question 8
A company issues 5,000, 12% preference shares of ₦10 each. Calculate the total amount received from preference shareholders.
A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000
Question 9
A company uses the double-entry system of accounting. If the company's assets increased by ₦100,000 and its liabilities decreased by ₦50,000, what is the increase in the company's equity?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 10
A company's cash book shows the following transactions: Cash received from customers: ₦50,000; Cash paid to suppliers: ₦30,000; Cash paid to employees: ₦20,000. Calculate the net cash inflow.
A. ₦0
B. ₦0
C. ₦0
D. ₦0
Question 11
A company's balance sheet shows a total assets of ₦5,000,000 and a total liabilities of ₦3,000,000. What is the company's equity?
A. ₦1,000,000
B. ₦2,000,000
C. ₦3,000,000
D. ₦4,000,000
Question 12
A company's trial balance showed an error of ₦10,000 in the debit side of the purchases account. The correct balance of the purchases account is ₦200,000. Prepare the necessary journal entry to correct the error.
A. Debit Purchases Account ₦10,000, Credit Profit and Loss Account ₦10,000
B. Debit Profit and Loss Account ₦10,000, Credit Purchases Account ₦10,000
C. Debit Purchases Account ₦10,000, Credit Purchases Returns Account ₦10,000
D. Debit Purchases Returns Account ₦10,000, Credit Purchases Account ₦10,000
Question 13
A company uses the incomplete records system of accounting. If the company's assets are ₦100,000, its liabilities are ₦50,000, and its capital is ₦30,000, what is the company's net worth?
A. ₦0
B. ₦10,000
C. ₦20,000
D. ₦30,000
Question 14
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 1,000 | | | 2 | Bank | | 500 | | 3 | Cash | | 800 | | 4 | Bank | | 300 | | 5 | Cash | | 1,200 | What is the balance of the cash account?
A. ₦1,200
B. ₦1,000
C. ₦800
D. ₦500
Question 15
A company's control account shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Sales | | 10,000 | | Purchases | 8,000 | | | Capital | | 5,000 | What is the correct balance of the sales account?
A. ₦10,000
B. ₦8,000
C. ₦5,000
D. ₦1,000

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