POST UTME MOUNTAIN TOP UNIVERSITY 2022 Accounting | Objective
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Question 1
A company has the following incomplete records: Cash, Accounts Receivable, and Accounts Payable. If the balance in the Cash account is ₦30,000, and the balance in the Accounts Payable account is ₦15,000, what is the total amount of assets and liabilities in the company?
Question 2
In a partnership account, the capital of a partner is increased by ₦50,000. The partner's drawings for the year are ₦20,000. The partner's share of profit is ₦30,000. What is the partner's new capital balance?
Question 3
A company's trial balance shows a discrepancy of ₦5,000 between the debit and credit sides. The company's accountant has identified the following errors: (i) a journal entry of ₦10,000 was posted twice, (ii) a journal entry of ₦8,000 was posted incorrectly as a debit instead of a credit, and (iii) a journal entry of ₦12,000 was posted incorrectly as a credit instead of a debit. What is the correct adjustment to be made to the trial balance?
Question 4
A manufacturing company has the following departmental accounts: Production Department: ₦500,000; Selling Department: ₦200,000; Administrative Department: ₦100,000. What is the total cost of goods sold?
Question 5
A company has the following trial balance: Debitors: ₦100,000; Creditors: ₦80,000; Capital: ₦120,000. What is the total amount of assets?
Question 6
A company has the following profit and loss account: Sales: ₦500,000; Cost of Goods Sold: ₦300,000; Gross Profit: ₦200,000. What is the net profit?
Question 7
A company uses the cash basis of accounting. On January 1, the company had a cash balance of ₦50,000. During the year, the company received cash of ₦30,000 and paid cash of ₦20,000. What is the cash balance on December 31?
Question 8
Determine the amount of depreciation for a machine with an initial value of ₦250,000, a residual value of ₦50,000, and a useful life of 5 years, assuming a straight-line method of depreciation.
Question 9
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
Question 10
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a cash payment of ₦15,000, what is the amount of the share premium account?
Question 11
A company prepares a balance sheet as at 31st December 2022. The company's assets are ₦500,000, liabilities are ₦200,000, and equity is ₦300,000. What is the company's return on equity (ROE) for the year?
Question 12
A company has a profit of ₦500,000 and a tax rate of 25%. Calculate the amount of tax payable.
Question 13
A firm has a debt of ₦1,000,000 at an interest rate of 10% per annum. Calculate the interest on the debt for a period of 2 years.
Question 14
A company issues 1,000 debentures of ₦100 each at a discount of 5%. If the company receives a cash payment of ₦90,000, what is the amount of the discount account?
Question 15
A company uses the perpetual inventory system. On January 1, the inventory balance was ₦50,000. During the year, the company purchased goods worth ₦30,000 and sold goods worth ₦40,000. What is the inventory balance on December 31?
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