Practice Post UTME NILE UNIVERSITY accounting 2023 Past Questions

Question 1

A company issued 10,000 shares of 1 par value at a premium of 2 per share. The proceeds from the issue were credited to a share capital account. Prepare the journal entry to record the issue of shares.

Correct A. Debit Share Capital 20,000, Credit Cash 20,000

B. Debit Share Capital 20,000, Credit Cash 10,000

C. Debit Share Capital 20,000, Credit Cash 30,000

D. Debit Share Capital 20,000, Credit Cash 40,000

Correct Answer: A

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Question 2

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1000 | | | 2 Jan | Bank | | 500 | | 3 Jan | Cash | | 200 | | 4 Jan | Bank | | 300 | Prepare the bank reconciliation statement.

Correct A. Bank Balance: 500, Cash Balance: 800

B. Bank Balance: 800, Cash Balance: 500

C. Bank Balance: 700, Cash Balance: 600

D. Bank Balance: 600, Cash Balance: 700

Correct Answer: A

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Question 3

A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | 1000 | | | Bank | | 500 | | Sales | | 2000 | | Purchases | 1500 | | | Capital | | 3000 | Prepare the ledger accounts for the above transactions.

Correct A. Cash: 1000, Bank: 500, Sales: 2000, Purchases: 1500, Capital: 3000

B. Cash: 500, Bank: 1000, Sales: 1500, Purchases: 2000, Capital: 3000

C. Cash: 1000, Bank: 500, Sales: 1500, Purchases: 2000, Capital: 3000

D. Cash: 500, Bank: 1000, Sales: 2000, Purchases: 1500, Capital: 3000

Correct Answer: A

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Question 4

A company's financial statements for the year ended 31 December 2022 are as follows: | Statement | Amount | | --- | --- | | Revenue | 100,000 | | Cost of Goods Sold | 60,000 | | Gross Profit | 40,000 | | Operating Expenses | 20,000 | | Net Profit | 20,000 | What is the company's return on equity (ROE) for the year?

Correct A. 20%

B. 25%

C. 30%

D. 35%

Correct Answer: A

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Question 5

A company's financial statements for the year ended 31 December 2022 are as follows: | Statement | Amount | | --- | --- | | Revenue | 100,000 | | Cost of Goods Sold | 60,000 | | Gross Profit | 40,000 | | Operating Expenses | 20,000 | | Net Profit | 20,000 | What is the company's current ratio?

Correct A. 2:1

B. 3:1

C. 4:1

D. 5:1

Correct Answer: A

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Question 6

A company's accounting policy requires that depreciation be calculated using the straight-line method. The company's asset has a useful life of 5 years and a residual value of ₦0. If the asset's cost is ₦1,500,000, what is the annual depreciation charge?

A. ₦300,000

Correct B. ₦150,000

C. ₦75,000

D. ₦30,000

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. If the profit for the year is ₦120,000, how much will A receive?

Correct A. ₦90,000

B. ₦80,000

C. ₦70,000

D. ₦60,000

Correct Answer: A

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Question 8

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦15,000 from the issue, what is the amount received from the issue of shares?

A. ₦10,000

B. ₦12,000

Correct C. ₦15,000

D. ₦18,000

Correct Answer: C

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Question 9

A company's balance sheet shows a current asset of ₦50,000 and a non-current asset of ₦200,000. If the company's total assets are ₦400,000, what is the amount of the company's liabilities?

A. ₦100,000

B. ₦150,000

C. ₦200,000

Correct D. ₦250,000

Correct Answer: D

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Question 10

A company's profit for the year is ₦150,000. If the company's tax rate is 25%, what is the amount of tax payable?

A. ₦30,000

B. ₦35,000

Correct C. ₦40,000

D. ₦45,000

Correct Answer: C

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Question 11

A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 2,000. Calculate the amount received from the issue of shares.

A. £ 6,250

Correct B. £ 6,500

C. £ 6,750

D. £ 7,000

Correct Answer: B

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Question 12

A partnership is formed between two partners, A and B, who contribute £ 10,000 and £ 8,000 respectively. The profit-sharing ratio is 3:2. Calculate the amount of profit to be shared by partner A.

Correct A. £ 4,500

B. £ 5,000

C. £ 5,500

D. £ 6,000

Correct Answer: A

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Question 13

A company has a credit balance of £ 10,000 in its profit and loss account. It issues 5,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the amount of share capital to be credited to the profit and loss account.

A. £ 5,000

Correct B. £ 5,250

C. £ 5,500

D. £ 6,000

Correct Answer: B

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Question 14

A company issues 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 5,000. Calculate the amount received from the issue of shares.

Correct A. £ 10,500

B. £ 11,000

C. £ 11,500

D. £ 12,000

Correct Answer: A

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Question 15

A partnership is formed between three partners, A, B, and C, who contribute £ 15,000, £ 12,000, and £ 9,000 respectively. The profit-sharing ratio is 4:3:2. Calculate the amount of profit to be shared by partner A.

Correct A. £ 6,000

B. £ 6,500

C. £ 7,000

D. £ 7,500

Correct Answer: A

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Question 16

A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the total amount received from debenture holders.

A. ₦500,000

Correct B. ₦525,000

C. ₦550,000

D. ₦575,000

Correct Answer: B

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Question 17

A trader's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 1,000 | | | 2 | Sales | | 1,500 | | 3 | Purchases | 800 | | | 4 | Cash | | 1,200 | Calculate the cash balance at the end of the month.

A. ₦700

B. ₦800

C. ₦900

Correct D. ₦1,000

Correct Answer: D

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Question 18

A company's balance sheet as at 31st December, 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 20,000 | | Stock | 30,000 | Share Capital | 50,000 | | Debtors | 15,000 | Profit | 5,000 | | Creditors | 8,000 | | | | | | | | Calculate the company's total assets.

A. ₦63,000

B. ₦65,000

C. ₦67,000

Correct D. ₦69,000

Correct Answer: D

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Question 19

A company's profit and loss account for the year ended 31st December, 2022 is as follows: | Particulars | ₦ | | | | --- | --- | --- | --- | | Sales | 100,000 | | | | Purchases | 80,000 | | | | Gross Profit | 20,000 | | | | Rent | 5,000 | | | | Salaries | 10,000 | | | | | | | | Calculate the company's net profit.

A. ₦5,000

B. ₦10,000

C. ₦15,000

Correct D. ₦20,000

Correct Answer: D

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Question 20

A company's balance sheet as at 31st December, 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 20,000 | | Stock | 30,000 | Share Capital | 50,000 | | Debtors | 15,000 | Profit | 5,000 | | Creditors | 8,000 | | | | | | | | Calculate the company's total liabilities.

A. ₦73,000

B. ₦75,000

C. ₦77,000

Correct D. ₦79,000

Correct Answer: D

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Question 21

A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Equipment'. However, the company's accountant has confirmed that the correct balance should be a credit of ₦5,000. What is the correct journal entry to rectify this error?

A. ₦15,000 debit to Office Equipment, ₦5,000 credit to Office Equipment

B. ₦20,000 debit to Office Equipment, ₦15,000 credit to Office Equipment

Correct C. ₦5,000 debit to Office Equipment, ₦15,000 credit to Office Equipment

D. ₦15,000 credit to Office Equipment, ₦5,000 debit to Office Equipment

Correct Answer: C

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Question 22

A company has the following transactions: Purchased office equipment for ₦20,000, paid ₦5,000 cash, and the balance was financed by a loan from the bank. Prepare the journal entry for the purchase of office equipment.

Correct A. ₦20,000 debit to Office Equipment, ₦5,000 credit to Cash, ₦15,000 credit to Bank Loan

B. ₦20,000 debit to Office Equipment, ₦15,000 credit to Bank Loan, ₦5,000 debit to Cash

C. ₦20,000 debit to Office Equipment, ₦15,000 debit to Bank Loan, ₦5,000 credit to Cash

D. ₦20,000 debit to Office Equipment, ₦5,000 debit to Cash, ₦15,000 debit to Bank Loan

Correct Answer: A

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Question 23

A company's cash book shows the following transactions: Cash received from customers ₦10,000, Cash paid to suppliers ₦5,000, and Cash paid to employees ₦3,000. Prepare the cash book entry for these transactions.

Correct A. ₦10,000 credit to Cash, ₦5,000 debit to Cash, ₦3,000 debit to Cash

B. ₦10,000 credit to Cash, ₦8,000 debit to Cash

C. ₦10,000 credit to Cash, ₦8,000 credit to Cash

D. ₦10,000 debit to Cash, ₦8,000 credit to Cash

Correct Answer: A

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Question 24

A company's bank reconciliation statement shows a difference of ₦1,000 between the cash book balance and the bank statement balance. The company's accountant has confirmed that the correct balance should be ₦1,500. What is the correct bank reconciliation entry?

A. ₦1,000 debit to Bank, ₦1,500 credit to Bank

Correct B. ₦1,500 debit to Bank, ₦1,000 credit to Bank

C. ₦1,000 credit to Bank, ₦1,500 debit to Bank

D. ₦1,500 credit to Bank, ₦1,000 debit to Bank

Correct Answer: B

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Question 25

A company's trial balance shows a debit balance of ₦20,000 in the account 'Office Equipment'. However, the company's accountant has confirmed that the correct balance should be a credit of ₦10,000. What is the correct journal entry to rectify this error?

A. ₦20,000 debit to Office Equipment, ₦10,000 credit to Office Equipment

B. ₦30,000 debit to Office Equipment, ₦20,000 credit to Office Equipment

Correct C. ₦10,000 debit to Office Equipment, ₦20,000 credit to Office Equipment

D. ₦20,000 credit to Office Equipment, ₦10,000 debit to Office Equipment

Correct Answer: C

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