POST UTME MOUNTAIN TOP UNIVERSITY 2017 Accounting | Objective

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Question 1
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022 is as follows: Debtors: ₦150,000 Stock: ₦200,000 Bills Receivable: ₦50,000 Bills Payable: ₦30,000 Accrued Expenses: ₦20,000 Bank: ₦100,000 What is the total amount of the company's assets as at 31st December 2022?
A. ₦520,000
B. ₦620,000
C. ₦720,000
D. ₦820,000
Question 2
A company's trial balance showed an error of ₦10,000 in the debit side of the sales account. The correct balance of the sales account is ₦150,000. What is the correct balance of the purchases account?
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 3
A company has the following trial balance as at December 31, 2022: Cash ¡ 1,000,000, Accounts Receivable ¡ 500,000, Inventory ¡ 1,500,000, Prepaid Rent ¡ 200,000, and Accumulated Depreciation ¡ 300,000. Prepare the company's balance sheet as at December 31, 2022.
A. Assets ¡ 4,100,000, Liabilities ¡ 0, Equity ¡ 4,100,000
B. Assets ¡ 4,200,000, Liabilities ¡ 0, Equity ¡ 4,200,000
C. Assets ¡ 4,100,000, Liabilities ¡ 0, Equity ¡ 4,200,000
D. Assets ¡ 4,200,000, Liabilities ¡ 0, Equity ¡ 4,100,000
Question 4
A company's cash book shows a debit balance of ₦15,000. However, the bank statement shows a credit balance of ₦20,000. What is the correct explanation for the discrepancy?
A. The company has a loan from the bank.
B. The company has a credit balance in its cash book.
C. The company has a debit balance in its bank statement.
D. The company has a credit balance in its bank statement.
Question 5
A company has two partners, A and B. Partner A has a 60% interest in the company, while Partner B has a 40% interest. If the company's net income for the year is ¡ 1,000,000, how much should Partner A receive as their share of the net income?
A. ¡ 600,000
B. ¡ 400,000
C. ¡ 500,000
D. ¡ 700,000
Question 6
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the annual charge for interest on the debentures.
A. ₦50,000
B. ₦50,500
C. ₦51,000
D. ₦51,500
Question 7
A company's assets are valued as follows: | Asset | Value | | --- | --- | | Buildings | ₦500,000 | | Machinery | ₦300,000 | | Vehicles | ₦100,000 | | Furniture | ₦50,000 | Calculate the total value of the company's assets.
A. ₦1,000,000
B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000
Question 8
A company's single entry system showed an increase in the cash account of ₦15,000 and a decrease in the accounts payable account of ₦10,000. What is the net increase in the company's assets?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 9
A company's ledger account for 'Accounts Receivable' shows a balance of ₦25,000. The company's trial balance shows a debit balance of ₦15,000 in the account 'Sales' and a credit balance of ₦10,000 in the account 'Accounts Receivable'. What is the correct journal entry to correct this discrepancy?
A. ₦10,000 debit to Sales and ₦10,000 credit to Accounts Receivable
B. ₦15,000 debit to Sales and ₦10,000 credit to Accounts Receivable
C. ₦10,000 debit to Accounts Receivable and ₦10,000 credit to Sales
D. ₦15,000 debit to Sales and ₦15,000 credit to Accounts Receivable
Question 10
A company's trial balance shows a debit balance of ₦5,000 in the account 'Rent Received' and a credit balance of ₦3,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. ₦2,000 debit to Rent Received and ₦2,000 credit to Rent Paid
B. ₦2,000 debit to Rent Paid and ₦2,000 credit to Rent Received
C. ₦1,000 debit to Rent Received and ₦1,000 credit to Rent Paid
D. ₦1,000 debit to Rent Paid and ₦1,000 credit to Rent Received
Question 11
A public sector organization has the following transactions: Purchase of office supplies for ₦10,000, Payment of salaries for ₦50,000, and Receipt of cash from customers for ₦20,000. What is the correct journal entry for these transactions?
A. ₦10,000 debit to Office Supplies and ₦50,000 credit to Salaries
B. ₦50,000 debit to Salaries and ₦20,000 credit to Cash
C. ₦10,000 debit to Office Supplies and ₦20,000 credit to Cash
D. ₦50,000 debit to Salaries and ₦10,000 credit to Office Supplies
Question 12
A company uses a trial balance to account for its financial transactions. The trial balance has the following accounts: Sales, Purchases, Cost of Goods Sold, and Gross Profit. The company's sales for the period are ₦1,200,000, and its purchases for the period are ₦900,000. The company's cost of goods sold for the period is ₦600,000. What is the company's gross profit for the period?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 13
A company's bank reconciliation statement shows the following discrepancies: NSF checks (₦5,000), outstanding deposits (₦3,000), and bank errors (₦2,000). What is the correct explanation for the discrepancy?
A. The company has a loan from the bank.
B. The company has a credit balance in its bank statement.
C. The company has a debit balance in its bank statement.
D. The company has a credit balance in its cash book.
Question 14
A company's manufacturing account showed an abnormal loss of ₦20,000. The company's cost of goods sold is ₦500,000. What is the abnormal gain or loss?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 15
A company's ledger account for 'Accounts Payable' shows a balance of ₦30,000. The company's trial balance shows a debit balance of ₦20,000 in the account 'Purchases' and a credit balance of ₦10,000 in the account 'Accounts Payable'. What is the correct journal entry to correct this discrepancy?
A. ₦10,000 debit to Purchases and ₦10,000 credit to Accounts Payable
B. ₦20,000 debit to Purchases and ₦10,000 credit to Accounts Payable
C. ₦10,000 debit to Accounts Payable and ₦10,000 credit to Purchases
D. ₦20,000 debit to Purchases and ₦20,000 credit to Accounts Payable

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