POST UTME MADONNA UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the perpetual inventory system. If the company purchases 100 units of inventory at ₦50 per unit and sells 50 units at ₦75 per unit, what is the cost of goods sold?
A. ₦2,500
B. ₦3,000
C. ₦3,500
D. ₦4,000
Question 2
A company has the following trial balance: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Dividends ₦10,000, Equipment ₦20,000, Interest Expense ₦5,000, Interest Income ₦2,000, Net Income ₦15,000, Retained Earnings ₦25,000, Salaries Expense ₦20,000, Sales Revenue ₦150,000, Taxes Expense ₦10,000. Prepare the balance sheet.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 3
A company has a capital of ₦500,000, consisting of 5,000 shares of ₦100 each. If the company issues 2,000 more shares of ₦100 each at a premium of ₦20 per share, what is the amount of the premium received?
A. ₦40,000
B. ₦80,000
C. ₦120,000
D. ₦160,000
Question 4
A company has the following information: Depreciation Expense ₦10,000, Equipment ₦50,000, Accumulated Depreciation ₦20,000. Calculate the net book value of the equipment.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 5
A company issued 5,000 shares of 10 par value at a premium of 5 per share. If the company received a total of 250,000, what is the amount of the premium received?
A. ₦125,000
B. ₦250,000
C. ₦375,000
D. ₦500,000
Question 6
A company's ledger shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | 1,000 | | | Bank | | 500 | | Debtors | | 800 | | Creditors | 200 | | Calculate the total assets of the company.
A. ₦2,300
B. ₦2,500
C. ₦2,700
D. ₦3,000
Question 7
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 | | 200 | Calculate the balance of the cash account.
A. ₦1,200
B. ₦1,400
C. ₦1,800
D. ₦2,000
Question 8
A company issued 10,000, 5% shares of ₦10 each at a premium of ₦2. Calculate the amount received from share holders and the amount of premium on the shares.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 9
A company issued 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 10
A partnership has three partners: A, B, and C. The capital accounts of A, B, and C are ₦100,000, ₦80,000, and ₦60,000 respectively. If the profit is shared in the ratio 3:2:1, calculate the amount of profit to be distributed to each partner.
A. ₦24,000
B. ₦32,000
C. ₦40,000
D. ₦48,000
Question 11
A company's manufacturing account for the year ended 31st December 2024 is as follows: Materials: ₦1,200,000 Labour: ₦800,000 Overheads: ₦400,000 Calculate the company's cost of production.
A. ₦2,400,000
B. ₦2,500,000
C. ₦2,600,000
D. ₦2,700,000
Question 12
A company issued 5,000 debentures of ₦100 each at a premium of ₦5. Calculate the total amount received from the issue of debentures.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 13
A company purchases a building for ₦500,000. The building has a useful life of 10 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦45,000
B. ₦50,000
C. ₦48,000
D. ₦52,000
Question 14
A company's balance sheet as at 31st December 2024 is as follows: Fixed assets: ₦1,500,000 Current assets: ₦800,000 Capital: ₦1,000,000 Profit: ₦200,000 Calculate the company's current ratio.
A. 2:1
B. 3:1
C. 4:1
D. 5:1
Question 15
A company's income statement shows the following balances: Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Net Income ₦50,000. What is the gross profit?
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000

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