POST UTME MADONNA UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's manufacturing account shows the following transactions: Debit: £ 1,000, £ 500, £ 200 Credit: £ 800, £ 300 Calculate the balance in the manufacturing account.
A. £ 1,200
B. £ 1,300
C. £ 1,400
D. £ 1,500
Question 2
A company's trading account for the year ended 31st December 2020 shows a profit of ₦500,000. The company's profit and loss account for the year ended 31st December 2020 shows a net profit of ₦750,000. The company's balance sheet as at 31st December 2020 shows total assets of ₦2,500,000 and total liabilities of ₦1,500,000. Calculate the company's retained earnings as at 31st December 2020.
A. ₦250,000
B. ₦250,000
C. ₦250,000
D. ₦250,000
Question 3
A company's trial balance shows an error of £ 1,500 due to an incorrect posting of a £ 3,000 debit to the office supplies account. The correct entry should have been a £ 2,500 debit. What is the correct journal entry to rectify this error?
A. Office Supplies £ 1,500, Capital £ 1,500
B. Office Supplies £ 2,500, Capital £ 1,500
C. Office Supplies £ 1,500, Capital £ 2,500
D. Office Supplies £ 2,500, Capital £ 2,500
Question 4
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000, and its residual value is ₦50,000. The machine is expected to be used for 5 years. Calculate the annual depreciation charge.
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 5
A company uses the perpetual inventory system. The company's beginning inventory on January 1, 2020, was ₦100,000. During the year, the company purchased goods worth ₦200,000 and sold goods worth ₦250,000. The company's ending inventory on December 31, 2020, was ₦150,000. Calculate the company's cost of goods sold.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 6
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 200 | | 4th Jan | Bank | | 300 | What is the total amount of cash transactions?
A. ₦1,200
B. ₦1,400
C. ₦1,600
D. ₦1,800
Question 7
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of discount on the debentures.
A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000
Question 8
In a partnership account, the capital of a partner who withdraws cash from the business is reduced by the amount withdrawn. However, if the partner's capital is reduced below the minimum capital required by the partnership agreement, the deficiency must be made up by the partner. Which of the following is the correct treatment of the deficiency?
A. The deficiency is treated as a loan from the partner to the partnership.
B. The deficiency is treated as a capital contribution from the partner to the partnership.
C. The deficiency is treated as a loss to the partner and is deducted from the partner's capital.
D. The deficiency is treated as a loan from the partnership to the partner.
Question 9
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 200 | | 4th Jan | Bank | | 300 | What is the balance of the bank account?
A. ₦1,800
B. ₦2,000
C. ₦2,200
D. ₦2,300
Question 10
A company's departmental account shows the following transactions: Debit: £ 1,000, £ 500, £ 200 Credit: £ 800, £ 300 Calculate the balance in the departmental account.
A. £ 1,200
B. £ 1,300
C. £ 1,400
D. £ 1,500
Question 11
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. ₦12,500
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 12
A company's trial balance shows an error of £ 2,000 due to an incorrect posting of a £ 4,000 credit to the accounts payable account. The correct entry should have been a £ 2,000 credit. What is the correct journal entry to rectify this error?
A. Accounts Payable £ 2,000, Capital £ 2,000
B. Accounts Payable £ 4,000, Capital £ 2,000
C. Accounts Payable £ 2,000, Capital £ 4,000
D. Accounts Payable £ 4,000, Capital £ 4,000
Question 13
A company's balance sheet as at 31st December 2020 shows total assets of ₦2,500,000 and total liabilities of ₦1,500,000. The company's profit and loss account for the year ended 31st December 2020 shows a net loss of ₦500,000. Calculate the company's equity as at 31st December 2020.
A. ₦1,000,000
B. ₦1,000,000
C. ₦1,000,000
D. ₦1,000,000
Question 14
The partners of XYZ Partnership, which was formed on January 1, 2018, have the following capital accounts: A = ₦100,000, B = ₦150,000, and C = ₦200,000. If the profit for the year ended December 31, 2018, was ₦50,000, and the partners' drawings for the year were A = ₦20,000, B = ₦30,000, and C = ₦40,000, what is the total amount of the partners' capital at the end of the year?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 15
A company uses the straight-line method of depreciation. If the cost of a machine is ₦500,000 and its residual value is ₦50,000, what is the annual depreciation charge if the machine is expected to last for 5 years?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

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