POST UTME NILE UNIVERSITY 2025 Accounting | Objective

Are you preparing for POST UTME NILE UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company has two departments: Manufacturing and Sales. The Manufacturing department has a fixed asset of ₦1,500,000, which is depreciated by 10% per annum. The Sales department has a fixed asset of ₦800,000, which is depreciated by 15% per annum. If the company uses the straight-line method of depreciation, what is the total depreciation for the first two years?
A. ₦220,000
Correct B. ₦240,000
C. ₦260,000
D. ₦280,000

Correct Answer: B

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Question 2
A partnership has two partners: John and Mary. John has a 60% interest in the partnership, and Mary has a 40% interest. If the partnership has a profit of ₦120,000, how much will John receive as his share of the profit?
Correct A. ₦72,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 3
A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. If the company receives a total of ₦550,000, what is the amount received from the issue of shares?
A. ₦450,000
B. ₦500,000
Correct C. ₦550,000
D. ₦600,000

Correct Answer: C

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Question 4
A company has a debt of ₦1,000,000, which is to be repaid in 5 years. If the company repays the debt in equal annual installments, what is the amount of each installment?
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 5
A company issues 5,000 debentures of ₦100 each at a discount of 5%. If the company receives a total of ₦450,000, what is the amount received from the issue of debentures?
A. ₦425,000
Correct B. ₦450,000
C. ₦475,000
D. ₦500,000

Correct Answer: B

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Question 6
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, calculate the annual depreciation charge if the asset's cost is ₦120,000.
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 7
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. If the profit for the year is ₦20,000, and the drawings of A and B are ₦5,000 and ₦3,000 respectively, calculate the new capital balances of A and B.
Correct A. A: ₦45,000, B: ₦27,000
B. A: ₦50,000, B: ₦30,000
C. A: ₦55,000, B: ₦35,000
D. A: ₦60,000, B: ₦40,000

Correct Answer: A

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Question 8
A company prepares its final accounts for the year ended 31st December 2024. The trading account shows a profit of ₦150,000. The profit and loss account shows a profit of ₦120,000. The balance sheet shows a capital of ₦200,000. Calculate the drawings of the proprietor.
Correct A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: A

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Question 9
A company uses the double-declining balance method to depreciate its assets. If the asset's cost is ₦120,000, its residual value is ₦0, and its useful life is 5 years, calculate the annual depreciation charge.
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 10
A company's balance sheet as at 31st December 2024 shows the following: ₦150,000 in cash, ₦100,000 in accounts receivable, ₦50,000 in inventory, ₦20,000 in prepaid expenses, and ₦30,000 in equipment. Calculate the company's total assets.
Correct A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000

Correct Answer: A

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Question 11
A company has two partners, A and B, who share profits in the ratio 3:2. The capital of the company is ₦100,000, divided between A and B in the ratio 5:3. If the profit for the year is ₦40,000, calculate the amount of profit that should be distributed to each partner.
A. ₦12,000
Correct B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: B

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Question 12
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 1,000 | | 3 Jan | Cash | 500 | | | 4 Jan | Bank | | 500 | | 5 Jan | Cash | 1,000 | | | 6 Jan | Bank | | 1,000 | What is the balance in the cash book at the end of the month?
A. ₦2,000
B. ₦3,000
C. ₦4,000
Correct D. ₦5,000

Correct Answer: D

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Question 13
A company's balance sheet shows the following: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 15,000 | Creditors | 10,000 | | Stock | 20,000 | Capital | 30,000 | What is the total amount of the company's assets?
A. ₦55,000
B. ₦65,000
Correct C. ₦75,000
D. ₦85,000

Correct Answer: C

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Question 14
A company's profit and loss account shows the following: | Particulars | ₦ | Particulars | ₦ | | --- | --- | --- | --- | | Sales | 100,000 | Cost of Goods Sold | 80,000 | | Gross Profit | 20,000 | Operating Expenses | 10,000 | | Net Profit | 10,000 | | | What is the company's net profit?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 15
A company's balance sheet shows the following: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 15,000 | Creditors | 10,000 | | Stock | 20,000 | Capital | 30,000 | What is the total amount of the company's liabilities?
A. ₦40,000
B. ₦50,000
Correct C. ₦60,000
D. ₦70,000

Correct Answer: C

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Question 16
A company uses the single-entry system of accounting. The company's cash book shows a balance of ₦250,000. The bank statement shows a balance of ₦300,000. The company's accountant has prepared a bank reconciliation statement showing a difference of ₦20,000. What is the reason for the difference?
Correct A. The company has outstanding checks.
B. The company has deposited cash into the bank but has not been credited yet.
C. The company has a loan from the bank that has not been recorded.
D. The company has a credit card balance that has not been recorded.

Correct Answer: A

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Question 17
A company uses the double-entry system of accounting. The company's ledger shows the following transactions: Debit Cash ₦100,000, Credit Accounts Payable ₦100,000. What is the effect of this transaction on the company's financial position?
A. The company's cash balance decreases by ₦100,000.
Correct B. The company's accounts payable balance increases by ₦100,000.
C. The company's cash balance increases by ₦100,000.
D. The company's accounts payable balance decreases by ₦100,000.

Correct Answer: B

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Question 18
A government agency uses the cash basis of accounting. The agency receives a grant of ₦500,000 from the government. What is the effect of this transaction on the agency's financial position?
Correct A. The agency's cash balance increases by ₦500,000.
B. The agency's cash balance decreases by ₦500,000.
C. The agency's accounts receivable balance increases by ₦500,000.
D. The agency's accounts payable balance increases by ₦500,000.

Correct Answer: A

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Question 19
A company uses the accrual basis of accounting. The company's ledger shows the following transactions: Debit Salaries Expense ₦200,000, Credit Salaries Payable ₦200,000. What is the effect of this transaction on the company's financial position?
A. The company's salaries expense balance increases by ₦200,000.
Correct B. The company's salaries payable balance increases by ₦200,000.
C. The company's salaries expense balance decreases by ₦200,000.
D. The company's salaries payable balance decreases by ₦200,000.

Correct Answer: B

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Question 20
A company uses the cash basis of accounting. The company's ledger shows the following transactions: Debit Cash ₦300,000, Credit Accounts Payable ₦300,000. What is the effect of this transaction on the company's financial position?
Correct A. The company's cash balance increases by ₦300,000.
B. The company's accounts payable balance increases by ₦300,000.
C. The company's cash balance decreases by ₦300,000.
D. The company's accounts payable balance decreases by ₦300,000.

Correct Answer: A

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Question 21
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 22
A manufacturing company has the following costs for the month of January:
Correct A. Direct Materials 10,000, Direct Labor 8,000, Manufacturing Overhead 12,000
B. Direct Materials 12,000, Direct Labor 10,000, Manufacturing Overhead 8,000
C. Direct Materials 8,000, Direct Labor 12,000, Manufacturing Overhead 10,000
D. Direct Materials 10,000, Direct Labor 12,000, Manufacturing Overhead 8,000

Correct Answer: A

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Question 23
A company's trading account for the year ended December 31, 2024, is as follows:
Correct A. Sales 1,000,000, Purchases 800,000, Cost of Goods Sold 200,000
B. Sales 1,000,000, Purchases 900,000, Cost of Goods Sold 100,000
C. Sales 1,000,000, Purchases 1,000,000, Cost of Goods Sold 0
D. Sales 1,000,000, Purchases 1,000,000, Cost of Goods Sold 500,000

Correct Answer: A

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Question 24
A company's bank reconciliation statement for the month of January is as follows:
Correct A. Bank Balance 10,000, Cash Balance 12,000, Outstanding Checks 2,000
B. Bank Balance 12,000, Cash Balance 10,000, Outstanding Deposits 2,000
C. Bank Balance 10,000, Cash Balance 10,000, Outstanding Checks 2,000
D. Bank Balance 12,000, Cash Balance 12,000, Outstanding Deposits 2,000

Correct Answer: A

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Question 25
A company's balance sheet as at December 31, 2024, is as follows:
Correct A. Assets 1,000,000, Liabilities 500,000, Equity 500,000
B. Assets 1,000,000, Liabilities 1,000,000, Equity 0
C. Assets 1,000,000, Liabilities 0, Equity 1,000,000
D. Assets 1,000,000, Liabilities 500,000, Equity 1,500,000

Correct Answer: A

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