Practice Post UTME NOUN accounting 2017 Past Questions

Question 1

A company uses the single-entry system of accounting. The company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Sales | | 1,500 | | 3 Jan | Purchases | 800 | | | 4 Jan | Cash | | 1,200 | What is the total amount of cash at bank on 4 Jan?

Correct A. ₦1,200

B. ₦1,500

C. ₦2,000

D. ₦2,500

Correct Answer: A

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Question 2

A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Sales | | 1,500 | | 3 Jan | Purchases | 800 | | | 4 Jan | Cash | | 1,200 | What is the total amount of cash at bank on 4 Jan?

Correct A. ₦1,200

B. ₦1,500

C. ₦2,000

D. ₦2,500

Correct Answer: A

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Question 3

A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Sales | | 1,500 | | 3 Jan | Purchases | 800 | | | 4 Jan | Cash | | 1,200 | What is the total amount of cash at bank on 4 Jan?

Correct A. ₦1,200

B. ₦1,500

C. ₦2,000

D. ₦2,500

Correct Answer: A

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Question 4

A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Sales | | 1,500 | | 3 Jan | Purchases | 800 | | | 4 Jan | Cash | | 1,200 | What is the total amount of cash at bank on 4 Jan?

Correct A. ₦1,200

B. ₦1,500

C. ₦2,000

D. ₦2,500

Correct Answer: A

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Question 5

A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Sales | | 1,500 | | 3 Jan | Purchases | 800 | | | 4 Jan | Cash | | 1,200 | What is the total amount of cash at bank on 4 Jan?

Correct A. ₦1,200

B. ₦1,500

C. ₦2,000

D. ₦2,500

Correct Answer: A

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Question 6

A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, Sales Revenue, and Cost of Goods Sold. The ledger also has a control account called 'Total Assets'. If the company's total assets are ₦1,500,000 and the Cash account has a balance of ₦200,000, what is the balance of the Accounts Payable account?

A. ₦1,300,000

B. ₦1,200,000

Correct C. ₦1,300,000

D. ₦1,200,000

Correct Answer: C

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Question 7

A company has the following incomplete records: Sales Revenue: ₦500,000; Cost of Goods Sold: ₦300,000; and Accounts Payable: ₦200,000. The company also has a single entry of ₦100,000 for 'Miscellaneous Expenses'. What is the net profit of the company?

Correct A. ₦200,000

B. ₦250,000

C. ₦150,000

D. ₦100,000

Correct Answer: A

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Question 8

A company has the following cash book transactions: Cash received from customers: ₦1,000,000; Cash paid to suppliers: ₦500,000; and Cash paid to employees: ₦200,000. What is the net cash inflow of the company?

Correct A. ₦300,000

B. ₦400,000

C. ₦500,000

D. ₦600,000

Correct Answer: A

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Question 9

A company has the following manufacturing accounts: Direct Materials: ₦500,000; Direct Labor: ₦300,000; and Overhead: ₦200,000. What is the total manufacturing cost of the company?

Correct A. ₦1,000,000

B. ₦1,200,000

C. ₦1,300,000

D. ₦1,400,000

Correct Answer: A

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Question 10

A company has the following departmental accounts: Sales Department: ₦500,000; Marketing Department: ₦300,000; and Administration Department: ₦200,000. What is the total departmental cost of the company?

Correct A. ₦1,000,000

B. ₦1,200,000

C. ₦1,300,000

D. ₦1,400,000

Correct Answer: A

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Question 11

A company has the following nature and principles of accounting: Accounting Equation: Assets = Liabilities + Equity; Accounting Cycle: Identify the steps involved in the accounting cycle.

A. Assets = Liabilities + Equity

B. Assets = Liabilities + Equity; Identify the steps involved in the accounting cycle.

C. Assets = Liabilities + Equity; Identify the steps involved in the accounting cycle; Accounting Equation: Assets = Liabilities + Equity

Correct D. Assets = Liabilities + Equity; Identify the steps involved in the accounting cycle; Accounting Equation: Assets = Liabilities + Equity; Accounting Cycle: Identify the steps involved in the accounting cycle.

Correct Answer: D

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Question 12

A company has the following control accounts: Total Assets: ₦1,500,000; Total Liabilities: ₦500,000; and Total Equity: ₦1,000,000. What is the balance of the Cash account?

Correct A. ₦1,000,000

B. ₦1,200,000

C. ₦1,300,000

D. ₦1,400,000

Correct Answer: A

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Question 13

A company has the following incomplete records: Sales Revenue: ₦500,000; Cost of Goods Sold: ₦300,000; and Accounts Payable: ₦200,000. The company also has a single entry of ₦100,000 for 'Miscellaneous Expenses'. What is the net profit of the company?

Correct A. ₦200,000

B. ₦250,000

C. ₦150,000

D. ₦100,000

Correct Answer: A

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Question 14

A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a discrepancy in the cash book. What is the most likely reason for this discrepancy?

A. The company has not recorded a deposit of ₦30,000.

Correct B. The company has not recorded a withdrawal of ₦30,000.

C. The company has not recorded a bank charge of ₦30,000.

D. The company has not recorded a bank interest of ₦30,000.

Correct Answer: B

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Question 15

A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. What is the share of profit of partner A?

Correct A. ₦120,000

B. ₦100,000

C. ₦80,000

D. ₦60,000

Correct Answer: A

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Question 16

A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Purchases ₦10,000. What is the effect of this transaction on the accounting equation?

Correct A. Increases assets and decreases liabilities.

B. Decreases assets and increases liabilities.

C. Increases liabilities and decreases equity.

D. Decreases liabilities and increases equity.

Correct Answer: A

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Question 17

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000. What is the net effect of these balances on the company's financial position?

Correct A. Increases assets and decreases liabilities.

B. Decreases assets and increases liabilities.

C. Increases liabilities and decreases equity.

D. Decreases liabilities and increases equity.

Correct Answer: A

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Question 18

A public sector organization has the following transactions: Revenue ₦100,000, Expenditure ₦80,000. What is the net effect of these transactions on the organization's financial position?

A. Increases assets and decreases liabilities.

B. Decreases assets and increases liabilities.

C. Increases liabilities and decreases equity.

Correct D. Decreases liabilities and increases equity.

Correct Answer: D

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Question 19

A company's trial balance shows a debit balance of ₦120,000 in the account 'Accrued Expenses' but the ledger account shows a credit balance of ₦80,000. What is the correct treatment for this error?

A. Debit the Accrued Expenses account by ₦40,000

Correct B. Credit the Accrued Expenses account by ₦40,000

C. Debit the Accrued Expenses account by ₦80,000

D. Credit the Accrued Expenses account by ₦120,000

Correct Answer: B

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Question 20

A public sector organization has a cash book that shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. What is the reason for this discrepancy?

A. The cash book balance is incorrect

B. The bank statement balance is incorrect

Correct C. There is a bank overdraft

D. There is a difference in the exchange rates used

Correct Answer: C

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Question 21

A partnership has two partners, A and B. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. However, the current year's profits are ₦120,000. How much will partner A receive?

Correct A. ₦90,000

B. ₦80,000

C. ₦120,000

D. ₦100,000

Correct Answer: A

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Question 22

A company has a cash book that shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for this discrepancy?

A. The cash book balance is incorrect

B. The bank statement balance is incorrect

Correct C. There is a bank overdraft

D. There is a difference in the exchange rates used

Correct Answer: C

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Question 23

A partnership has two partners, A and B. The partnership agreement states that the profits and losses will be shared in the ratio 2:3. However, the current year's profits are ₦180,000. How much will partner B receive?

A. ₦120,000

Correct B. ₦180,000

C. ₦120,000

D. ₦180,000

Correct Answer: B

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Question 24

A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance on the profit and loss account at the beginning of the year was ₦500,000. The company's balance sheet at the beginning of the year showed a capital of ₦5,000,000 and a profit and loss account balance of ₦500,000. The company's balance sheet at the end of the year shows a capital of ₦6,500,000 and a profit and loss account balance of ₦2,000,000. Calculate the company's profit for the year ended 31st December 2022.

Correct A. ₦2,000,000

B. ₦1,500,000

C. ₦1,000,000

D. ₦1,750,000

Correct Answer: A

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Question 25

A company's balance sheet at the beginning of the year shows a capital of ₦5,000,000 and a profit and loss account balance of ₦500,000. The company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet at the end of the year shows a capital of ₦6,500,000 and a profit and loss account balance of ₦2,000,000. Calculate the company's profit for the year ended 31st December 2022.

A. ₦2,000,000

Correct B. ₦1,500,000

C. ₦1,000,000

D. ₦1,750,000

Correct Answer: B

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