POST UTME MADONNA UNIVERSITY 2019 Accounting | Objective

Are you preparing for POST UTME MADONNA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. £ 10,000
B. £ 50,000
Correct C. £ 60,000
D. £ 70,000

Correct Answer: C

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Question 2
A company's trial balance showed the following balances: Machinery £ 10,000, Accrued Expenses £ 5,000, and Drawings £ 8,000. Prepare the ledger accounts for Machinery and Accrued Expenses.
Correct A. Machinery: Debit £ 10,000, Credit £ 5,000; Accrued Expenses: Debit £ 5,000, Credit £ 8,000
B. Machinery: Debit £ 10,000, Credit £ 8,000; Accrued Expenses: Debit £ 5,000, Credit £ 10,000
C. Machinery: Debit £ 10,000, Credit £ 10,000; Accrued Expenses: Debit £ 5,000, Credit £ 5,000
D. Machinery: Debit £ 8,000, Credit £ 10,000; Accrued Expenses: Debit £ 5,000, Credit £ 5,000

Correct Answer: A

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Question 3
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. £ 10,000
B. £ 50,000
Correct C. £ 60,000
D. £ 70,000

Correct Answer: C

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Question 4
A company's trial balance showed the following balances: Machinery £ 10,000, Accrued Expenses £ 5,000, and Drawings £ 8,000. Prepare the ledger accounts for Machinery and Accrued Expenses.
Correct A. Machinery: Debit £ 10,000, Credit £ 5,000; Accrued Expenses: Debit £ 5,000, Credit £ 8,000
B. Machinery: Debit £ 10,000, Credit £ 8,000; Accrued Expenses: Debit £ 5,000, Credit £ 10,000
C. Machinery: Debit £ 10,000, Credit £ 10,000; Accrued Expenses: Debit £ 5,000, Credit £ 5,000
D. Machinery: Debit £ 8,000, Credit £ 10,000; Accrued Expenses: Debit £ 5,000, Credit £ 5,000

Correct Answer: A

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Question 5
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. £ 10,000
B. £ 50,000
Correct C. £ 60,000
D. £ 70,000

Correct Answer: C

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Question 6
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank overdraft of ₦30,000. What is the correct balance in the cash book?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦210,000

Correct Answer: C

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Question 7
A partnership has two partners, A and B. The capital contributions of A and B are ₦80,000 and ₦60,000 respectively. The profit sharing ratio is 3:2. What is the ratio of A's capital to B's capital?
A. 1:1
B. 2:1
Correct C. 3:2
D. 4:3

Correct Answer: C

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Question 8
A company uses the straight-line method of depreciation. The cost of the asset is ₦120,000 and its useful life is 5 years. What is the annual depreciation?
A. ₦20,000
B. ₦24,000
Correct C. ₦30,000
D. ₦36,000

Correct Answer: C

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Question 9
A company's trial balance shows the following balances: Account A ₦80,000, Account B ₦60,000. The company's accountant wants to prepare a balance sheet. What is the correct balance for Account A?
Correct A. ₦80,000
B. ₦60,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 10
A company's bank reconciliation statement shows a difference of ₦30,000. The company's accountant wants to prepare a cash book. What is the correct balance in the cash book?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦210,000

Correct Answer: C

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Question 11
A company's manufacturing process involves the production of a new product, 'X'. The production process requires an initial investment of ₦1,500,000. The company expects to produce 10,000 units of product 'X' in the first year, with a selling price of ₦150 per unit. The company's accountant has estimated the following costs for the production of product 'X':
A. ₦1,200,000
B. ₦1,500,000
Correct C. ₦1,800,000
D. ₦2,000,000

Correct Answer: C

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Question 12
A company has the following transactions in its ledger: Debit: ₦1,000,000; Credit: ₦800,000. What is the balance of the account?
A. ₦200,000
B. ₦100,000
Correct C. ₦0
D. ₦300,000

Correct Answer: C

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Question 13
A company has the following transactions in its ledger: Debit: ₦1,000,000; Credit: ₦800,000. What is the balance of the account?
A. ₦200,000
B. ₦100,000
Correct C. ₦0
D. ₦300,000

Correct Answer: C

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Question 14
A company has the following transactions in its ledger: Debit: ₦1,000,000; Credit: ₦800,000. What is the balance of the account?
A. ₦200,000
B. ₦100,000
Correct C. ₦0
D. ₦300,000

Correct Answer: C

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Question 15
A company has the following transactions in its ledger: Debit: ₦1,000,000; Credit: ₦800,000. What is the balance of the account?
A. ₦200,000
B. ₦100,000
Correct C. ₦0
D. ₦300,000

Correct Answer: C

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Question 16
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦12,000

Correct Answer: A

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Question 17
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the net profit for the year is ₦150,000, how much will A receive as their share of the profit?
Correct A. ₦135,000
B. ₦120,000
C. ₦90,000
D. ₦60,000

Correct Answer: A

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Question 18
A company prepares its financial statements in accordance with the accruals basis of accounting. If the company has a trade receivable of ₦50,000 and a trade payable of ₦20,000, what is the net amount due from customers?
Correct A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: A

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Question 19
A company uses the perpetual inventory system to track its inventory. If the company purchases 100 units of goods at ₦50 each, what is the total cost of goods purchased?
Correct A. ₦5,000
B. ₦4,000
C. ₦6,000
D. ₦7,000

Correct Answer: A

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Question 20
A company has the following transactions: - Purchased goods for ₦10,000 cash - Sold goods for ₦15,000 on credit - Purchased goods for ₦8,000 on credit What is the total amount of cash received from customers?
A. ₦23,000
Correct B. ₦25,000
C. ₦27,000
D. ₦29,000

Correct Answer: B

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Question 21
A company produces two products, X and Y. Product X requires 2 hours of direct labor and 3 hours of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 8 hours a day and produces 100 units of product X and 80 units of product Y, what is the total labor cost for the day?
A. ₦12,800
Correct B. ₦13,200
C. ₦13,600
D. ₦14,000

Correct Answer: B

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Question 22
A company uses a job costing system to account for its manufacturing operations. The company has two departments: Cutting and Assembly. The Cutting department incurs a direct labor cost of ₦10,000 and an indirect labor cost of ₦5,000. The Assembly department incurs a direct labor cost of ₦15,000 and an indirect labor cost of ₦10,000. What is the total labor cost for the company?
A. ₦30,000
B. ₦35,000
Correct C. ₦40,000
D. ₦45,000

Correct Answer: C

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Question 23
A company uses a process costing system to account for its manufacturing operations. The company has two departments: Mixing and Packaging. The Mixing department incurs a direct labor cost of ₦20,000 and an indirect labor cost of ₦15,000. The Packaging department incurs a direct labor cost of ₦30,000 and an indirect labor cost of ₦20,000. What is the total labor cost for the company?
A. ₦65,000
B. ₦70,000
Correct C. ₦75,000
D. ₦80,000

Correct Answer: C

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Question 24
A company uses a job costing system to account for its manufacturing operations. The company has two departments: Cutting and Assembly. The Cutting department incurs a direct labor cost of ₦15,000 and an indirect labor cost of ₦10,000. The Assembly department incurs a direct labor cost of ₦20,000 and an indirect labor cost of ₦15,000. What is the total labor cost for the company?
A. ₦40,000
B. ₦45,000
Correct C. ₦50,000
D. ₦55,000

Correct Answer: C

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Question 25
A company uses a process costing system to account for its manufacturing operations. The company has two departments: Mixing and Packaging. The Mixing department incurs a direct labor cost of ₦25,000 and an indirect labor cost of ₦20,000. The Packaging department incurs a direct labor cost of ₦35,000 and an indirect labor cost of ₦25,000. What is the total labor cost for the company?
A. ₦80,000
B. ₦85,000
Correct C. ₦90,000
D. ₦95,000

Correct Answer: C

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