POST UTME MOUNTAIN TOP UNIVERSITY 2021 Accounting | Objective

Are you preparing for POST UTME MOUNTAIN TOP UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The shares were issued for £ 1.50 each. Calculate the amount received from the issue of shares.
A. ₦7,500
Correct B. ₦12,500
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 2
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare a balance sheet for the company.
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 3
A company purchased a machine for ₦120,000 and depreciated it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦80,000
Correct B. ₦90,000
C. ₦100,000
D. ₦110,000

Correct Answer: B

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Question 4
A company issued 10,000 debentures of ₦100 each at a premium of ₦10 per debenture. The debentures were issued for ₦120 each. Calculate the amount received from the issue of debentures.
A. ₦1,200,000
Correct B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: B

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Question 5
A company's balance sheet showed the following balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦50,000. Prepare a statement of cash flows for the company.
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 6
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records show that the rent for the year was actually ₦20,000. What is the correct journal entry to record the correction?
A. Debit Rent and Rates by ₦5,000 and credit Profit and Loss by ₦5,000
Correct B. Debit Profit and Loss by ₦5,000 and credit Rent and Rates by ₦5,000
C. Debit Rent and Rates by ₦5,000 and credit Capital by ₦5,000
D. Debit Capital by ₦5,000 and credit Rent and Rates by ₦5,000

Correct Answer: B

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Question 7
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 ₦30,000 in the 'Drawings' account. What is the correct distribution of the drawings between partners A and B?
Correct A. ₦18,000 to A and ₦12,000 to B
B. ₦20,000 to A and ₦10,000 to B
C. ₦22,000 to A and ₦8,000 to B
D. ₦24,000 to A and ₦6,000 to B

Correct Answer: A

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Question 8
A company uses the straight-line method of depreciation to depreciate its assets. The cost of the asset is ₦100,000, and its residual value is ₦20,000. The asset is expected to have a useful life of 5 years. What is the annual depreciation charge?
Correct A. ₦15,000
B. ₦16,000
C. ₦17,000
D. ₦18,000

Correct Answer: A

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Question 9
A company's balance sheet shows a current asset of ₦50,000 in the 'Accounts Receivable' account. However, the company's accounting records show that the accounts receivable are actually ₦60,000. What is the correct journal entry to record the correction?
A. Debit Accounts Receivable by ₦10,000 and credit Profit and Loss by ₦10,000
Correct B. Debit Profit and Loss by ₦10,000 and credit Accounts Receivable by ₦10,000
C. Debit Accounts Receivable by ₦10,000 and credit Capital by ₦10,000
D. Debit Capital by ₦10,000 and credit Accounts Receivable by ₦10,000

Correct Answer: B

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Question 10
A company uses the weighted average method to value its inventory. The cost of the inventory is ₦100,000, and the selling price is ₦120,000. The company's accounting records show that the inventory is actually worth ₦110,000. What is the correct journal entry to record the correction?
Correct A. Debit Inventory by ₦10,000 and credit Profit and Loss by ₦10,000
B. Debit Profit and Loss by ₦10,000 and credit Inventory by ₦10,000
C. Debit Inventory by ₦10,000 and credit Capital by ₦10,000
D. Debit Capital by ₦10,000 and credit Inventory by ₦10,000

Correct Answer: A

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Question 11
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Calculate the total amount received from the sale of shares.
A. ₦75,000
B. ₦100,000
Correct C. ₦125,000
D. ₦150,000

Correct Answer: C

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Question 12
A manufacturing company uses a job costing system. The company incurred the following costs in producing a batch of goods: direct materials 10,000, direct labor 15,000, and overhead 20,000. The company sold the goods for 60,000. Calculate the gross profit.
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 13
A company has the following balance sheet: Assets 100,000, Liabilities 50,000, and Equity 50,000. Calculate the current ratio.
A. 2:1
Correct B. 1:1
C. 1:2
D. 3:1

Correct Answer: B

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Question 14
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. If the partnership has a profit of 10,000, calculate the share of profit for Partner A.
Correct A. ₦6,000
B. ₦8,000
C. ₦10,000
D. ₦12,000

Correct Answer: A

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Question 15
A company has the following trial balance: Sales 100,000, Cost of Goods Sold 60,000, and Net Income 40,000. Calculate the gross profit.
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 16
A company's trading account for the year ended December 31, 2022, shows a profit of ₦1,500,000. The balance sheet as at December 31, 2022, shows a current asset of ₦2,500,000 and a non-current asset of ₦3,000,000. The company's equity as at December 31, 2022, is ₦6,500,000. What is the amount of the company's current liability?
Correct A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

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Question 17
A company's balance sheet as at December 31, 2022, shows a non-current liability of ₦5,000,000 and a non-current asset of ₦3,000,000. What is the amount of the company's net current liability?
Correct A. ₦2,000,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦5,000,000

Correct Answer: A

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Question 18
A company's trading account for the year ended December 31, 2022, shows a profit of ₦1,500,000. The balance sheet as at December 31, 2022, shows a current asset of ₦2,500,000 and a non-current asset of ₦3,000,000. The company's equity as at December 31, 2022, is ₦6,500,000. What is the amount of the company's non-current liability?
A. ₦1,000,000
B. ₦2,000,000
Correct C. ₦3,000,000
D. ₦5,000,000

Correct Answer: C

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Question 19
A company's balance sheet as at December 31, 2022, shows a non-current liability of ₦5,000,000 and a non-current asset of ₦3,000,000. What is the amount of the company's net current asset?
A. ₦2,000,000
B. ₦2,500,000
Correct C. ₦3,000,000
D. ₦5,000,000

Correct Answer: C

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Question 20
A company's trading account for the year ended December 31, 2022, shows a profit of ₦1,500,000. The balance sheet as at December 31, 2022, shows a current asset of ₦2,500,000 and a non-current asset of ₦3,000,000. The company's equity as at December 31, 2022, is ₦6,500,000. What is the amount of the company's current asset?
A. ₦1,000,000
B. ₦2,000,000
Correct C. ₦2,500,000
D. ₦3,000,000

Correct Answer: C

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Question 21
Determine the total cost of goods sold for the year ended December 31, 2022, using the weighted average method, given the following data: Cost of goods available for sale: ₦1,500,000; Beginning inventory: ₦300,000; Ending inventory: ₦400,000; Sales: ₦2,000,000.
Correct A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000

Correct Answer: A

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Question 22
A company has the following transactions related to its manufacturing department: Raw materials purchased: ₦200,000; Direct labor: ₦150,000; Factory overhead: ₦100,000. Calculate the total cost of goods manufactured.
A. ₦450,000
Correct B. ₦500,000
C. ₦550,000
D. ₦600,000

Correct Answer: B

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Question 23
A partnership has the following capital accounts: Partner A: ₦500,000; Partner B: ₦300,000; Partner C: ₦200,000. If Partner A withdraws ₦50,000 and Partner B invests an additional ₦20,000, what is the new capital balance for each partner?
A. Partner A: ₦450,000; Partner B: ₦320,000; Partner C: ₦200,000
Correct B. Partner A: ₦450,000; Partner B: ₦320,000; Partner C: ₦220,000
C. Partner A: ₦450,000; Partner B: ₦320,000; Partner C: ₦200,000
D. Partner A: ₦450,000; Partner B: ₦340,000; Partner C: ₦220,000

Correct Answer: B

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Question 24
A company has the following trading account: Sales: ₦2,000,000; Cost of goods sold: ₦1,500,000. Calculate the gross profit.
Correct A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000

Correct Answer: A

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Question 25
A company has the following balance sheet: Assets: ₦1,500,000; Liabilities: ₦500,000; Equity: ₦1,000,000. Calculate the current ratio.
A. 3:1
Correct B. 2:1
C. 1:1
D. 1:2

Correct Answer: B

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