POST UTME MADONNA UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows the following accounts: Sales ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦200,000. What is the gross profit?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 2
A company's assets are valued at ₦1,000,000, liabilities are ₦200,000, and equity is ₦800,000. If the company's assets depreciate by 10% and liabilities increase by 20%, what is the new equity value?
A. ₦720,000
B. ₦800,000
C. ₦880,000
D. ₦960,000
Question 3
A company has the following ledger balances: Capital: ₦100,000; Profit: ₦20,000; Drawings: ₦10,000. Prepare the trial balance.
A. Capital: ₦100,000; Profit: ₦20,000; Drawings: ₦10,000
B. Capital: ₦90,000; Profit: ₦30,000; Drawings: ₦0
C. Capital: ₦110,000; Profit: ₦20,000; Drawings: ₦10,000
D. Capital: ₦100,000; Profit: ₦20,000; Drawings: ₦10,000
Question 4
A company's trial balance as at 31st December, 2018 is as follows: Debtors: ₦100,000 Creditors: ₦50,000 Capital: ₦200,000 Profit: ₦30,000 What is the total amount of assets of the company?
A. ₦380,000
B. ₦380,000
C. ₦380,000
D. ₦380,000
Question 5
A partnership has two partners, A and B. A has a 60% interest in the partnership and B has a 40% interest. The partnership has a profit of ₦100,000. Calculate the share of profit of each partner.
A. A: ₦60,000; B: ₦40,000
B. A: ₦40,000; B: ₦60,000
C. A: ₦50,000; B: ₦50,000
D. A: ₦0; B: ₦100,000
Question 6
A company uses the single-entry system of accounting. The following transactions were recorded during the year: Depreciation on a machine: ₦10,000 Interest on a loan: ₦5,000 Rent paid: ₦20,000 Salaries paid: ₦30,000 What is the total amount of expenses recorded by the company?
A. ₦65,000
B. ₦65,000
C. ₦65,000
D. ₦65,000
Question 7
A company issued 5,000, 10% debentures of ₦100 each. The debentures are redeemable at the end of 5 years. Calculate the total amount to be paid to the debenture holders at redemption.
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000
Question 8
A company's financial statements show a net income of ₦100,000. If the company's tax rate is 25%, what is the amount of income tax payable?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 9
A company issued 5,000, 10% debentures of ₦100 each. The debentures are redeemable at the end of 5 years. Calculate the annual charge for interest on the debentures.
A. ₦50,000
B. ₦25,000
C. ₦12,500
D. ₦62,500
Question 10
A firm has a cash book balance of ₦50,000. The bank statement shows a balance of ₦60,000. The firm's cash book shows a debit balance of ₦5,000. The bank statement shows a credit balance of ₦3,000. What is the correct balance of the firm's cash book?
A. ₦55,000
B. ₦57,000
C. ₦59,000
D. ₦61,000
Question 11
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. If the partnership makes a profit of ₦150,000, how much will A receive?
A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦200,000
Question 12
A company's cash book shows the following transactions: deposit of ₦10,000, withdrawal of ₦5,000, and payment of ₦8,000 to a supplier. What is the new balance in the cash account?
A. ₦13,000
B. ₦12,000
C. ₦11,000
D. ₦10,000
Question 13
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 14
In a partnership account, what is the correct method of calculating the capital of a partner who has been absent for a year?
A. Capital is calculated as the average of the partner's capital for the previous year and the current year.
B. Capital is calculated as the partner's capital for the previous year minus any drawings made during the year.
C. Capital is calculated as the partner's capital for the previous year plus any profits made during the year.
D. Capital is calculated as the average of the partner's capital for the previous year and the current year, minus any drawings made during the year.
Question 15
The following is a partial list of the accounts in the ledger of DEF Ltd. at December 31, 2018:
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000

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