POST UTME MOUNTAIN TOP UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as at 31st December 2022 shows a current asset of ₦1,200,000 and a non-current asset of ₦1,500,000. The company's current liability is ₦800,000 and the non-current liability is ₦1,200,000. What is the company's net worth as at 31st December 2022?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 2
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's trial balance shows a debit balance of ₦20,000 in the 'Drawings' account. What is the correct allocation of the drawings to the partners?
A. Partner A ₦12,000, Partner B ₦8,000
B. Partner A ₦15,000, Partner B ₦5,000
C. Partner A ₦18,000, Partner B ₦2,000
D. Partner A ₦10,000, Partner B ₦10,000
Question 3
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022 shows a current liability of ₦800,000 and a non-current liability of ₦1,200,000. The company's equity as at 31st December 2022 is ₦2,500,000. What is the company's net worth as at 31st December 2022?
A. ₦1,200,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 4
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount of discount on the debentures.
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 5
Determine the amount of depreciation for a machine that cost ₦250,000 and has a useful life of 5 years, using the straight-line method. The machine is currently in its third year of operation.
A. ₦50,000
B. ₦62,500
C. ₦75,000
D. ₦87,500
Question 6
A company has a control account for its cash transactions. The following transactions occurred during the month of January: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | 10,000 | | | 5-Jan | Bank | | 12,000 | | 10-Jan | Cash | 8,000 | | | 15-Jan | Bank | | 9,000 | | 20-Jan | Cash | 12,000 | | | 25-Jan | Bank | | 15,000 | What is the balance in the cash control account at the end of January?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 7
A company's balance sheet as at 31st December 2022 shows a current asset of ₦1,200,000 and a non-current asset of ₦1,500,000. The company's current liability is ₦800,000 and the non-current liability is ₦1,200,000. What is the company's net worth as at 31st December 2022?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 8
A company has a control account for its accounts payable. The following transactions were recorded in the ledger: Debit Accounts Payable ₦10,000, Credit Purchases ₦15,000, Debit Cash ₦8,000, Credit Accounts Payable ₦5,000. What is the net effect on the company's accounts payable?
A. ₦5,000 increase
B. ₦5,000 decrease
C. ₦10,000 increase
D. ₦10,000 decrease
Question 9
A company uses the FIFO method to assign overhead costs to jobs. The following data are available: Job 1: 10 units, Job 2: 20 units, Overhead Costs: ₦15,000, and Total Units: 30. What is the overhead cost per unit?
A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000
Question 10
A company has the following balance sheet: Assets: ₦100,000; Liabilities: ₦80,000; Capital: ₦20,000. Prepare the trading account and profit and loss account.
A. Trading Account: ₦20,000; Profit and Loss Account: ₦10,000
B. Trading Account: ₦20,000; Profit and Loss Account: ₦15,000
C. Trading Account: ₦20,000; Profit and Loss Account: ₦20,000
D. Trading Account: ₦20,000; Profit and Loss Account: ₦25,000
Question 11
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. The partnership's profit for the year ended 31st December 2022 is ₦1,800,000. What is partner B's share of the profit?
A. ₦720,000
B. ₦800,000
C. ₦960,000
D. ₦1,080,000
Question 12
A company's balance sheet shows the following balances: Assets: ₦1,000,000, Liabilities: ₦500,000, and Equity: ₦500,000. What is the total amount of assets on the balance sheet?
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 13
A company prepares a trial balance at the end of the year. The following accounts are listed: Cash ₦50,000, Accounts Payable ₦20,000, Sales ₦80,000, Purchases ₦60,000. What is the total amount of the company's assets?
A. ₦110,000
B. ₦120,000
C. ₦130,000
D. ₦140,000
Question 14
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 15
Determine the amount of depreciation for a machine that cost ₦150,000 and has a useful life of 5 years, with a residual value of ₦30,000. The machine is depreciated using the straight-line method.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000

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