POST UTME LEAD CITY UNIVERSITY 2023 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 2023 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
In a manufacturing company, the following transactions occurred during the month of January: Purchased raw materials worth ₦150,000 on credit from a supplier. Sold goods worth ₦250,000 for cash. Purchased a machine worth ₦100,000 on credit from a supplier. Sold goods worth ₦120,000 on credit to a customer. What is the total amount of assets acquired by the company during the month of January?
A. ₦250,000
B. ₦350,000
C. ₦450,000
Correct D. ₦550,000

Correct Answer: D

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Question 2
A company has the following ledger balances: Debtors: ₦50,000 Creditors: ₦30,000 Capital: ₦100,000 What is the total amount of assets owned by the company?
A. ₦180,000
B. ₦200,000
C. ₦220,000
Correct D. ₦240,000

Correct Answer: D

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Question 3
A partnership has the following capital accounts: John: ₦100,000 Mary: ₦80,000 David: ₦60,000 What is the total amount of capital invested in the partnership?
A. ₦240,000
B. ₦260,000
C. ₦280,000
Correct D. ₦300,000

Correct Answer: D

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Question 4
A company has the following trial balance: Debtors: ₦50,000 Creditors: ₦30,000 Capital: ₦100,000 What is the total amount of assets owned by the company?
A. ₦180,000
B. ₦200,000
C. ₦220,000
Correct D. ₦240,000

Correct Answer: D

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Question 5
A company has the following ledger balances: Debtors: ₦50,000 Creditors: ₦30,000 Capital: ₦100,000 What is the total amount of assets owned by the company?
A. ₦180,000
B. ₦200,000
C. ₦220,000
Correct D. ₦240,000

Correct Answer: D

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Question 6
A company produces two products, X and Y, using two machines, A and B. Machine A produces 60 units of X and 40 units of Y per hour, while machine B produces 40 units of X and 60 units of Y per hour. If the company operates for 8 hours a day, what is the total number of units of X and Y produced per day?
A. 960 units of X and 640 units of Y
B. 800 units of X and 800 units of Y
Correct C. 960 units of X and 960 units of Y
D. 800 units of X and 640 units of Y

Correct Answer: C

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Question 7
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. After one year, the profit is shared in the ratio 3:2. If the total profit is ₦200,000, how much does A receive?
Correct A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 8
A company purchases a machine for ₦1,000,000 and depreciates it by 10% per annum. If the machine is used for 5 years, what is the total depreciation?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 9
A company has a control account with a balance of ₦500,000. If the company purchases goods worth ₦200,000 and sells goods worth ₦300,000, what is the new balance of the control account?
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 10
A company has a self-balancing ledger with a balance of ₦1,000,000. If the company purchases goods worth ₦500,000 and sells goods worth ₦700,000, what is the new balance of the self-balancing ledger?
A. ₦1,200,000
B. ₦1,300,000
Correct C. ₦1,400,000
D. ₦1,500,000

Correct Answer: C

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Question 11
A partnership is dissolved when one partner dies. What is the accounting treatment for the deceased partner's share of the partnership's assets and liabilities?
A. The deceased partner's share is distributed to the remaining partners.
B. The deceased partner's share is transferred to the partnership's capital account.
C. The deceased partner's share is written off as a loss.
Correct D. The deceased partner's share is distributed to the deceased partner's estate.

Correct Answer: D

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Question 12
A company issues 1,000 shares of 10 par value at 15 per share. What is the amount of cash received from the issue of shares?
Correct A. 15,000
B. 10,000
C. 15,000,000
D. 10,000,000

Correct Answer: A

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Question 13
A public sector entity receives a grant of ₦1,000,000. What is the accounting treatment for the grant?
Correct A. The grant is recorded as revenue.
B. The grant is recorded as an asset.
C. The grant is recorded as a liability.
D. The grant is not recorded in the financial statements.

Correct Answer: A

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Question 14
A company issues 500 shares of 5 par value at 10 per share. What is the amount of cash received from the issue of shares?
A. 5,000
B. 5,000,000
Correct C. 10,000
D. 10,000,000

Correct Answer: C

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Question 15
A partnership is dissolved when one partner withdraws from the partnership. What is the accounting treatment for the withdrawing partner's share of the partnership's assets and liabilities?
A. The withdrawing partner's share is distributed to the remaining partners.
B. The withdrawing partner's share is transferred to the partnership's capital account.
C. The withdrawing partner's share is written off as a loss.
Correct D. The withdrawing partner's share is distributed to the withdrawing partner's estate.

Correct Answer: D

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Question 16
A company uses the cash book to record all its cash transactions. The cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The bank charges a service fee of ₦5,000 and the company has an outstanding cheque of ₦20,000. What is the correct balance in the cash book?
Correct A. ₦135,000
B. ₦145,000
C. ₦155,000
D. ₦165,000

Correct Answer: A

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Question 17
A government agency is required to prepare a statement of financial position in accordance with the Public Sector Accounting Standards. The agency has a cash balance of ₦500,000 and accounts payable of ₦200,000. What is the total amount of assets?
Correct A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: A

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Question 18
A company has incomplete records and uses the single entry system to prepare its financial statements. The company has a cash balance of ₦300,000 and accounts receivable of ₦150,000. What is the total amount of assets?
Correct A. ₦450,000
B. ₦550,000
C. ₦650,000
D. ₦750,000

Correct Answer: A

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Question 19
A company uses the control account system to prepare its financial statements. The company has a cash account balance of ₦200,000 and a bank overdraft of ₦50,000. What is the total amount of assets?
Correct A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: A

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Question 20
A company uses the double entry system to prepare its financial statements. The company has a cash balance of ₦400,000 and accounts payable of ₦100,000. What is the total amount of assets?
Correct A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: A

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Question 21
A company's trial balance shows an error of ₦15,000 in the debit side of the accounts payable account. The error was caused by a clerk who forgot to record a payment of ₦15,000 made to a supplier. What is the correct journal entry to rectify this error?
A. Debit Accounts Payable ₦15,000, Credit Cash ₦15,000
Correct B. Debit Cash ₦15,000, Credit Accounts Payable ₦15,000
C. Debit Accounts Payable ₦15,000, Credit Bank ₦15,000
D. Debit Bank ₦15,000, Credit Accounts Payable ₦15,000

Correct Answer: B

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Question 22
A company uses the straight-line method of depreciation. The cost of a machine is ₦150,000 and its useful life is 5 years. If the machine is sold after 3 years, what is the amount of depreciation that should be recorded in the 3rd year?
A. ₦30,000
B. ₦45,000
Correct C. ₦60,000
D. ₦75,000

Correct Answer: C

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Question 23
A company's balance sheet shows an asset of ₦100,000 that is recorded at its cost of ₦80,000. What is the amount of accumulated depreciation that should be recorded?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 24
A company issues 1,000 shares of ₦10 each at a premium of ₦2 per share. What is the total amount of cash received from the issue of shares?
A. ₦12,000
B. ₦14,000
Correct C. ₦16,000
D. ₦18,000

Correct Answer: C

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Question 25
A company's trial balance shows an error of ₦15,000 in the credit side of the accounts receivable account. The error was caused by a clerk who forgot to record a payment of ₦15,000 received from a customer. What is the correct journal entry to rectify this error?
A. Debit Accounts Receivable ₦15,000, Credit Cash ₦15,000
Correct B. Debit Cash ₦15,000, Credit Accounts Receivable ₦15,000
C. Debit Accounts Receivable ₦15,000, Credit Bank ₦15,000
D. Debit Bank ₦15,000, Credit Accounts Receivable ₦15,000

Correct Answer: B

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