POST UTME NILE UNIVERSITY 2021 Accounting | Objective

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Question 1 View Details
In a partnership account, the capital of two partners, A and B, is ₦500,000 and ₦300,000 respectively. If the profit-sharing ratio is 3:2, what is the ratio of their capitals?
Correct A. 3:2
B. 2:3
C. 1:1
D. 4:3

Correct Answer: A

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Question 2 View Details
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the issue of debentures.
A. ₦950,000
Correct B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000

Correct Answer: B

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Question 3 View Details
A company purchased a machine 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 using the straight-line method.
A. ₦90,000
B. ₦95,000
Correct C. ₦100,000
D. ₦105,000

Correct Answer: C

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Question 4 View Details
A company has the following cash transactions: ₦1,000,000 received from customers, ₦500,000 paid to suppliers, ₦200,000 paid to employees, and ₦300,000 received from bank. Prepare the cash book.
Correct A. Cash Book Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Cash | | 1,000,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------
B. Cash Book Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Cash | | 1,000,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------
C. Cash Book Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Cash | | 1,000,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------
D. Cash Book Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Cash | | 1,000,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------

Correct Answer: A

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Question 5 View Details
A company has the following bank statement: ₦1,500,000, ₦500,000, ₦200,000, and ₦300,000. Prepare the bank reconciliation statement.
Correct A. Bank Reconciliation Statement Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Bank | | 1,500,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------
B. Bank Reconciliation Statement Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Bank | | 1,500,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------
C. Bank Reconciliation Statement Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Bank | | 1,500,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------
D. Bank Reconciliation Statement Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Bank | | 1,500,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------

Correct Answer: A

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Question 6 View Details
A company uses the double-entry system of accounting. The following transactions occurred during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
Correct B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Payable 1,000
D. Debit Accounts Payable 1,000 and Credit Cash 1,000

Correct Answer: B

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Question 7 View Details
A company's cash book shows the following transactions:
A. ₦1,500
B. ₦1,000
Correct C. ₦2,000
D. ₦3,000

Correct Answer: C

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Question 8 View Details
A company's bank reconciliation statement shows the following discrepancies:
A. ₦500
Correct B. ₦1,000
C. ₦2,000
D. ₦3,000

Correct Answer: B

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Question 9 View Details
A company's trial balance shows the following balances:
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 10 View Details
A company's financial statements show the following information:
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 11 View Details
A company produces two products, X and Y, using two machines, A and B. Machine A produces 60 units of X and 40 units of Y per hour, while machine B produces 40 units of X and 60 units of Y per hour. If the company operates for 8 hours a day, what is the total production of product X in a day?
A. 480 units
B. 640 units
Correct C. 720 units
D. 800 units

Correct Answer: C

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Question 12 View Details
A partnership is formed between two individuals, A and B, with a capital of ₦100,000 each. After one year, the profit is shared in the ratio 3:2. If the total profit is ₦120,000, how much does A receive?
Correct A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 13 View Details
A company uses a job costing system to account for its production costs. The following information is available for Job No. 101: Direct Materials: ₦15,000, Direct Labour: ₦20,000, Overheads: ₦30,000. What is the total cost of Job No. 101?
A. ₦65,000
B. ₦70,000
Correct C. ₦75,000
D. ₦80,000

Correct Answer: C

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Question 14 View Details
A company has the following information for its sales and purchases for the month of January: Sales: ₦500,000, Purchases: ₦300,000, Returns Outwards: ₦20,000, Returns Inwards: ₦10,000. What is the total value of sales and purchases for the month?
A. ₦800,000
B. ₦820,000
Correct C. ₦840,000
D. ₦860,000

Correct Answer: C

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Question 15 View Details
A company has the following information for its trial balance: Sales: ₦500,000, Purchases: ₦300,000, Returns Outwards: ₦20,000, Returns Inwards: ₦10,000. What is the total value of sales and purchases for the month?
A. ₦800,000
B. ₦820,000
Correct C. ₦840,000
D. ₦860,000

Correct Answer: C

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Question 16 View Details
Determine the amount of cash that should be debited to the 'Cash' account when a company purchases a new machine for ₦120,000, paying ₦80,000 in cash and the balance by a 3-year loan.
A. ₦40,000
Correct B. ₦60,000
C. ₦80,000
D. ₦100,000

Correct Answer: B

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Question 17 View Details
A company has the following transactions: Purchased office supplies for ₦15,000; Purchased a new computer for ₦80,000; Sold office supplies for ₦5,000. Prepare the journal entries for these transactions.
A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000
B. Debit Office Supplies ₦20,000, Credit Cash ₦20,000
Correct C. Debit Office Supplies ₦15,000, Credit Cash ₦15,000
D. Debit Office Supplies ₦20,000, Credit Cash ₦15,000

Correct Answer: C

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Question 18 View Details
A partnership has the following capital accounts: A ₦100,000, B ₦80,000, C ₦120,000. The profit for the year is ₦60,000. Prepare the profit-sharing journal entry.
Correct A. Debit A ₦20,000, Debit B ₦16,000, Debit C ₦24,000, Credit Profit ₦60,000
B. Debit A ₦24,000, Debit B ₦20,000, Debit C ₦16,000, Credit Profit ₦60,000
C. Debit A ₦16,000, Debit B ₦24,000, Debit C ₦20,000, Credit Profit ₦60,000
D. Debit A ₦20,000, Debit B ₦24,000, Debit C ₦16,000, Credit Profit ₦60,000

Correct Answer: A

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Question 19 View Details
A company has the following transactions: Issued 10,000 shares at ₦10 per share; Purchased a new machine for ₦120,000. Prepare the journal entries for these transactions.
A. Debit Cash ₦100,000, Credit Share Capital ₦100,000
Correct B. Debit Cash ₦100,000, Credit Share Capital ₦100,000; Debit Machine ₦120,000, Credit Cash ₦120,000
C. Debit Share Capital ₦100,000, Credit Cash ₦100,000
D. Debit Machine ₦120,000, Credit Cash ₦120,000

Correct Answer: B

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Question 20 View Details
A company has the following transactions: Issued 10,000 shares at ₦10 per share; Purchased a new machine for ₦120,000. Prepare the journal entries for these transactions.
A. Debit Cash ₦100,000, Credit Share Capital ₦100,000
Correct B. Debit Cash ₦100,000, Credit Share Capital ₦100,000; Debit Machine ₦120,000, Credit Cash ₦120,000
C. Debit Share Capital ₦100,000, Credit Cash ₦100,000
D. Debit Machine ₦120,000, Credit Cash ₦120,000

Correct Answer: B

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Question 21 View Details
A company uses the double-entry system to record its transactions. The company's trial balance shows the following balances: Accounts Payable 10,000, Accounts Receivable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the total amount of the company's assets?
Correct A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000

Correct Answer: A

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Question 22 View Details
A company's cash book shows the following transactions: Cash 1,000, Accounts Payable 2,000, and Common Stock 3,000. What is the net effect of these transactions on the company's cash balance?
Correct A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000

Correct Answer: A

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Question 23 View Details
A company's bank reconciliation statement shows the following discrepancies: Outstanding checks 1,000, Deposits in transit 2,000, and Bank errors 3,000. What is the net effect of these discrepancies on the company's cash balance?
Correct A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000

Correct Answer: A

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Question 24 View Details
A company uses the straight-line method to depreciate its assets. The asset's cost is 10,000, and its useful life is 5 years. What is the annual depreciation expense?
A. ₦2,000
Correct B. ₦4,000
C. ₦6,000
D. ₦8,000

Correct Answer: B

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Question 25 View Details
A company's balance sheet shows the following accounts: Cash 10,000, Accounts Payable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the total amount of the company's liabilities and equity?
A. ₦40,000
B. ₦45,000
Correct C. ₦50,000
D. ₦55,000

Correct Answer: C

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