Practice Post UTME OAU accounting 2020 Past Questions

Question 1

A company's trial balance shows a discrepancy of ₦10,000 between the debit and credit sides. The company's accountant has identified the following errors: (i) A credit of ₦5,000 was posted to the wrong account, (ii) A debit of ₦3,000 was omitted from the trial balance, and (iii) A credit of ₦2,000 was posted twice to the same account. What is the correct amount of the discrepancy?

Correct A. ₦12,000

B. ₦10,000

C. ₦8,000

D. ₦6,000

Correct Answer: A

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Question 2

A manufacturing company uses the weighted average method to assign overhead costs to jobs. The company has the following data for the current period: Total overhead costs = ₦1,200,000, Total direct labor hours = 10,000, and the overhead rate is ₦120 per direct labor hour. What is the total overhead cost assigned to Job X, which required 500 direct labor hours?

A. ₦60,000

Correct B. ₦80,000

C. ₦100,000

D. ₦120,000

Correct Answer: B

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Question 3

A company's balance sheet as at December 31, 2022, shows the following: Share capital = ₦5,000,000, Retained earnings = ₦3,000,000, and Total liabilities = ₦2,500,000. What is the company's total equity?

Correct A. ₦8,500,000

B. ₦8,000,000

C. ₦7,500,000

D. ₦7,000,000

Correct Answer: A

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Question 4

A company's profit and loss account for the year ended December 31, 2022, shows the following: Sales = ₦15,000,000, Cost of goods sold = ₦10,000,000, Operating expenses = ₦2,000,000, and Net income = ₦1,500,000. What is the company's gross profit?

Correct A. ₦5,000,000

B. ₦4,500,000

C. ₦4,000,000

D. ₦3,500,000

Correct Answer: A

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Question 5

A company's trial balance as at December 31, 2022, shows the following: Accounts payable = ₦1,500,000, Accounts receivable = ₦2,000,000, and Inventory = ₦3,000,000. What is the company's total current assets?

Correct A. ₦6,500,000

B. ₦6,000,000

C. ₦5,500,000

D. ₦5,000,000

Correct Answer: A

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Question 6

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The shares were issued for ₦ 12,000. Calculate the amount received from the issue of shares.

Correct A. ₦ 12,000

B. ₦ 10,000

C. ₦ 8,000

D. ₦ 6,000

Correct Answer: A

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Question 7

A company's trading account for the year ended 31st December 20X7 is as follows: Debit: ₦ 50,000 (Purchases) ₦ 10,000 (Direct Expenses) ₦ 20,000 (Carriage Inwards) ₦ 5,000 (Freight Inwards) Credit: ₦ 80,000 (Sales) ₦ 15,000 (Direct Expenses) Calculate the gross profit for the year.

Correct A. ₦ 25,000

B. ₦ 30,000

C. ₦ 35,000

D. ₦ 40,000

Correct Answer: A

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Question 8

A company's balance sheet as at 31st December 20X7 is as follows: Assets: ₦ 100,000 (Cash) ₦ 150,000 (Debtors) ₦ 50,000 (Stock) Liabilities: ₦ 80,000 (Creditors) Calculate the company's net worth.

Correct A. ₦ 120,000

B. ₦ 130,000

C. ₦ 140,000

D. ₦ 150,000

Correct Answer: A

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Question 9

A company's profit and loss account for the year ended 31st December 20X7 is as follows: Trading Account: ₦ 80,000 (Sales) ₦ 50,000 (Purchases) Non-Trading Income: ₦ 10,000 (Rent Received) Non-Trading Expenses: ₦ 5,000 (Rent Paid) Calculate the company's net profit for the year.

Correct A. ₦ 35,000

B. ₦ 40,000

C. ₦ 45,000

D. ₦ 50,000

Correct Answer: A

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Question 10

A company's balance sheet as at 31st December 20X7 is as follows: Assets: ₦ 100,000 (Cash) ₦ 150,000 (Debtors) ₦ 50,000 (Stock) Liabilities: ₦ 80,000 (Creditors) Calculate 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 11

A company's trading account for the year ended 31st December 2020 shows a profit of ₦500,000. The company's balance sheet at the beginning of the year showed a capital of ₦1,000,000. The company's drawings for the year were ₦200,000. What is the company's capital at the end of the year?

A. ₦1,200,000

B. ₦1,300,000

Correct C. ₦1,400,000

D. ₦1,500,000

Correct Answer: C

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Question 12

A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurred costs of ₦100,000 and the Assembly department incurred costs of ₦150,000. The total cost of production for the year was ₦500,000. What is the cost of production for the Cutting department?

A. ₦50,000

Correct B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: B

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Question 13

A company uses a self-balancing ledger system. The ledger shows the following balances: Debtors ₦100,000, Creditors ₦50,000, Capital ₦200,000. What is the total value of the company's assets?

A. ₦350,000

B. ₦400,000

C. ₦450,000

Correct D. ₦500,000

Correct Answer: D

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Question 14

A company's cash book shows the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, Cash received from bank ₦20,000. What is the total amount of cash received by the company?

A. ₦120,000

B. ₦130,000

C. ₦140,000

Correct D. ₦150,000

Correct Answer: D

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Question 15

A company's bank statement shows the following transactions: Bank balance ₦50,000, Cheque deposited ₦20,000, Cheque paid ₦10,000. What is the new bank balance?

A. ₦60,000

B. ₦70,000

C. ₦80,000

Correct D. ₦90,000

Correct Answer: D

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Question 16

In a partnership account, the capital of two partners, A and B, is shared in the ratio 3:2. If A's capital is ₦120,000, what is B's capital?

A. ₦80,000

B. ₦120,000

Correct C. ₦160,000

D. ₦200,000

Correct Answer: C

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Question 17

A company's cash book shows a debit balance of ₦15,000. However, the bank statement shows a credit balance of ₦20,000. What is the reason for the discrepancy?

A. Bank charges

Correct B. Cheque returned unpaid

C. Error in cash book

D. Error in bank statement

Correct Answer: B

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Question 18

A public sector organization has the following transactions: Debit: ₦10,000, Credit: ₦15,000. What is the accounting equation?

Correct A. Assets = Liabilities + Capital

B. Assets = Liabilities - Capital

C. Assets - Liabilities = Capital

D. Assets + Liabilities = Capital

Correct Answer: A

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Question 19

A company's trading account shows a profit of ₦50,000. However, the profit and loss account shows a loss of ₦20,000. What is the reason for the discrepancy?

A. Error in trading account

Correct B. Error in profit and loss account

C. Error in balance sheet

D. Error in cash book

Correct Answer: B

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Question 20

A company issues 1,000 shares of ₦10 each at a premium of ₦2 per share. What is the total amount received from the issue of shares?

A. ₦12,000

B. ₦14,000

Correct C. ₦16,000

D. ₦18,000

Correct Answer: C

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Question 21

A company issued 10,000 shares of 50% preference shares of ₦10 each at a premium of ₦5. Calculate the total amount received from the issue of these shares.

A. ₦500,000

B. ₦1,000,000

C. ₦1,500,000

Correct D. ₦2,000,000

Correct Answer: D

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Question 22

A company purchased a machine for ₦1,500,000. It was sold after 5 years for ₦1,200,000. Calculate the annual depreciation of the machine.

A. ₦150,000

B. ₦200,000

Correct C. ₦250,000

D. ₦300,000

Correct Answer: C

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Question 23

A company issued 5,000 shares of ₦10 each at a premium of ₦2. The company also issued 1,000 debentures of ₦100 each at a discount of ₦5. Calculate the total amount received from the issue of these shares and debentures.

A. ₦150,000

B. ₦250,000

Correct C. ₦350,000

D. ₦450,000

Correct Answer: C

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Question 24

A company purchased a machine for ₦2,000,000. It was sold after 3 years for ₦1,800,000. Calculate the annual depreciation of the machine.

A. ₦200,000

B. ₦250,000

Correct C. ₦300,000

D. ₦350,000

Correct Answer: C

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Question 25

A company issued 10,000 shares of ₦10 each at a premium of ₦5. Calculate the total amount received from the issue of these shares.

A. ₦500,000

B. ₦1,000,000

C. ₦1,500,000

Correct D. ₦2,000,000

Correct Answer: D

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