POST UTME NILE UNIVERSITY 2023 Accounting | Objective

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Question 1
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
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
Question 2
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
B. £ 5,250
C. £ 5,500
D. £ 6,000
Question 3
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.
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
Question 4
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.
A. £ 4,500
B. £ 5,000
C. £ 5,500
D. £ 6,000
Question 5
A company uses the straight-line method of depreciation. The cost of an asset is ₦500,000 and its residual value is ₦50,000. If the asset is depreciated over 5 years, what is the annual depreciation charge?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
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
B. ₦150,000
C. ₦75,000
D. ₦30,000
Question 7
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.
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
Question 8
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.
A. £ 6,000
B. £ 6,500
C. £ 7,000
D. £ 7,500
Question 9
A company uses the double-entry system to record transactions. The company's journal entry for the sale of merchandise on January 25, 2023, is as follows: Debit Sales 10,000 and Credit Accounts Receivable 10,000. What is the effect of this transaction on the company's balance sheet?
A. ₦10,000 increase in assets and ₦10,000 increase in liabilities
B. ₦10,000 increase in assets and ₦10,000 decrease in liabilities
C. ₦10,000 decrease in assets and ₦10,000 decrease in liabilities
D. ₦10,000 increase in liabilities and ₦10,000 decrease in assets
Question 10
A company issued 10,000 shares of its common stock at a par value of ₦5 per share. If the company also issued 5,000 shares of its preferred stock at a par value of ₦10 per share, what is the total par value of the company's issued stock?
A. ₦75,000
B. ₦100,000
C. ₦125,000
D. ₦150,000
Question 11
A company uses the straight-line method to depreciate its assets. If the asset has a cost of ₦100,000 and a useful life of 5 years, what is the annual depreciation expense?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 12
A company uses the double-entry system to record transactions. The company's journal entry for the sale of merchandise on January 15, 2023, is as follows: Debit Sales 5,000 and Credit Accounts Receivable 5,000. What is the effect of this transaction on the company's balance sheet?
A. ₦5,000 increase in assets and ₦5,000 increase in liabilities
B. ₦5,000 increase in assets and ₦5,000 decrease in liabilities
C. ₦5,000 decrease in assets and ₦5,000 decrease in liabilities
D. ₦5,000 increase in liabilities and ₦5,000 decrease in assets
Question 13
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
D. ₦69,000
Question 14
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
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
Question 15
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
D. ₦1,000

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