POST UTME MADONNA UNIVERSITY 2025 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 2025 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's cash book shows a balance of ₦125,000. However, the bank statement shows a balance of ₦120,000. The bank reconciliation statement reveals that there are 50 outstanding checks totaling ₦5,000 and 20 deposits in transit totaling ₦10,000. What is the correct balance in the company's cash book?
Correct A. ₦130,000
B. ₦125,000
C. ₦120,000
D. ₦115,000

Correct Answer: A

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Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit and loss account shows a profit of ₦20,000. What is the new balance in A's capital account?
Correct A. ₦120,000
B. ₦100,000
C. ₦80,000
D. ₦120,000

Correct Answer: A

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Question 3
A company uses the perpetual inventory system. The cost of goods sold for the year is ₦500,000. The beginning inventory is ₦100,000 and the ending inventory is ₦150,000. What is the value of net purchases for the year?
Correct A. ₦450,000
B. ₦400,000
C. ₦500,000
D. ₦550,000

Correct Answer: A

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Question 4
A company uses the straight-line method of depreciation. The cost of the asset is ₦200,000 and the useful life is 5 years. What is the annual depreciation charge?
Correct A. ₦40,000
B. ₦20,000
C. ₦30,000
D. ₦50,000

Correct Answer: A

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Question 5
A company uses the FIFO method of inventory valuation. The beginning inventory is ₦100,000 and the cost of goods available for sale is ₦500,000. The ending inventory is ₦150,000. What is the cost of goods sold?
Correct A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000

Correct Answer: A

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Question 6
A company uses the single entry system to record its transactions. The following transactions occurred during the year: Depreciation on machinery: ₦120,000 Depreciation on building: ₦150,000 Drawings: ₦80,000 Profit: ₦200,000 The company's capital at the beginning of the year was ₦500,000. Prepare the company's statement of affairs at the end of the year.
A. ₦1,250,000
B. ₦1,300,000
Correct C. ₦1,350,000
D. ₦1,400,000

Correct Answer: C

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Question 7
A company's trading account for the year ended 31st December 2024 is as follows: Sales: ₦2,500,000 Returns outwards: ₦50,000 Returns inwards: ₦20,000 Cost of goods sold: ₦1,800,000 Calculate the gross profit for the year.
Correct A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: A

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Question 8
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.
Correct A. 2:1
B. 3:1
C. 4:1
D. 5:1

Correct Answer: A

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Question 9
A company's machinery was purchased for ₦500,000. It is expected to have a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation for the first year.
A. ₦90,000
B. ₦100,000
C. ₦110,000
Correct D. ₦120,000

Correct Answer: D

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Question 10
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
Correct B. ₦2,500,000
C. ₦2,600,000
D. ₦2,700,000

Correct Answer: B

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Question 11
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. After one year, the profit is ₦200,000. The profit-sharing ratio is 3:2. Calculate the amount of profit that A will receive.
Correct A. ₦180,000
B. ₦120,000
C. ₦160,000
D. ₦140,000

Correct Answer: A

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Question 12
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
Correct A. ₦150,000
B. ₦100,000
C. ₦200,000
D. ₦250,000

Correct Answer: A

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Question 13
A company purchases a machine for ₦200,000. The machine has a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦36,000
B. ₦40,000
C. ₦38,000
D. ₦42,000

Correct Answer: A

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Question 14
A company issues 5% debentures of ₦100 each at a premium of ₦10 per share. Calculate the annual interest payable on the debentures.
Correct A. ₦5,000
B. ₦4,000
C. ₦6,000
D. ₦3,000

Correct Answer: A

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Question 15
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.
Correct A. ₦45,000
B. ₦50,000
C. ₦48,000
D. ₦52,000

Correct Answer: A

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Question 16
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
Correct C. ₦375,000
D. ₦500,000

Correct Answer: C

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Question 17
A company has a capital of ₦1,000,000, consisting of 10,000 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 new capital of the company?
A. ₦1,500,000
B. ₦2,000,000
Correct C. ₦2,200,000
D. ₦2,500,000

Correct Answer: C

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Question 18
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
Correct C. ₦120,000
D. ₦160,000

Correct Answer: C

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Question 19
A company issued 10,000 shares of ₦100 par value at a premium of ₦20 per share. If the company received a total of ₦2,000,000, what is the amount of the premium received?
A. ₦200,000
B. ₦400,000
Correct C. ₦600,000
D. ₦800,000

Correct Answer: C

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Question 20
A company has a capital of ₦1,500,000, consisting of 15,000 shares of ₦100 each. If the company issues 5,000 more shares of ₦100 each at a premium of ₦20 per share, what is the new capital of the company?
A. ₦2,500,000
B. ₦3,000,000
Correct C. ₦3,500,000
D. ₦4,000,000

Correct Answer: C

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Question 21
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the amount of discount on the debentures.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 22
A company purchased a machine for ₦1,500,000 and immediately sold it for ₦1,800,000. Calculate the profit made on the sale of the machine.
Correct A. ₦300,000
B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: A

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Question 23
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
Correct B. ₦220,000
C. ₦240,000
D. ₦260,000

Correct Answer: B

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Question 24
A company purchased a machine for ₦1,000,000 and immediately sold it for ₦1,200,000. Calculate the profit made on the sale of the machine.
Correct A. ₦200,000
B. ₦150,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

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Question 25
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the amount of discount on the debentures.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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