Practice Post UTME OSUSTECH accounting 2020 Past Questions

Question 1

In a partnership account, the capital of a partner who leaves the business is calculated as the difference between the partner's share of the profit and the partner's share of the loss. If the profit is ₦120,000 and the loss is ₦80,000, and the partner's share of the profit and loss is 2/5, what is the partner's capital?

Correct A. ₦16,000

B. ₦24,000

C. ₦32,000

D. ₦40,000

Correct Answer: A

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Question 2

A company has a manufacturing department that produces two products, A and B. Product A has a selling price of ₦100, a variable cost of ₦60, and a fixed cost of ₦10,000. Product B has a selling price of ₦120, a variable cost of ₦80, and a fixed cost of ₦15,000. If the company produces 100 units of product A and 50 units of product B, what is the total profit?

A. ₦10,000

B. ₦12,000

Correct C. ₦15,000

D. ₦18,000

Correct Answer: C

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Question 3

A company has a trading department that sells goods worth ₦500,000 and incurs a cost of goods sold of ₦300,000. If the company also has a non-trading income of ₦20,000, what is the net profit?

A. ₦120,000

Correct B. ₦150,000

C. ₦180,000

D. ₦200,000

Correct Answer: B

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Question 4

A company has a balance sheet that shows assets of ₦500,000, liabilities of ₦200,000, and equity of ₦300,000. If the company issues 10,000 shares at a premium of ₦5 per share, what is the new equity?

A. ₦350,000

B. ₦360,000

C. ₦370,000

Correct D. ₦380,000

Correct Answer: D

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Question 5

A company has a profit and loss account that shows a profit of ₦150,000. If the company issues 5,000 shares at a premium of ₦10 per share, what is the new profit?

A. ₦160,000

B. ₦170,000

C. ₦180,000

Correct D. ₦190,000

Correct Answer: D

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Question 6

A company uses the straight-line method to depreciate its assets. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?

Correct A. ₦24,000

B. ₦20,000

C. ₦25,000

D. ₦22,000

Correct Answer: A

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Question 7

A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 1 Jan | Bank | | 10,000 | | 2 Jan | Sales | | 15,000 | | 3 Jan | Purchases | 8,000 | | | 3 Jan | Bank | | 8,000 | What is the balance on the Cash account?

A. ₦2,000

Correct B. ₦10,000

C. ₦15,000

D. ₦8,000

Correct Answer: B

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Question 8

A government agency has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 50,000 | | | 1 Jan | Bank | | 50,000 | | 2 Jan | Salaries | | 30,000 | | 3 Jan | Rent | 20,000 | | | 3 Jan | Bank | | 20,000 | What is the balance on the Bank account?

A. ₦20,000

B. ₦30,000

Correct C. ₦50,000

D. ₦70,000

Correct Answer: C

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Question 9

A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 1 Jan | Bank | | 10,000 | | 2 Jan | Sales | | 15,000 | | 3 Jan | Purchases | 8,000 | | | 3 Jan | Bank | | 8,000 | What is the balance on the Bank account?

A. ₦2,000

Correct B. ₦10,000

C. ₦15,000

D. ₦8,000

Correct Answer: B

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Question 10

A company has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 1 Jan | Bank | | 10,000 | | 2 Jan | Sales | | 15,000 | | 3 Jan | Purchases | 8,000 | | | 3 Jan | Bank | | 8,000 | What is the balance on the Cash account?

A. ₦2,000

Correct B. ₦10,000

C. ₦15,000

D. ₦8,000

Correct Answer: B

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Question 11

A company's cash book shows a debit balance of ₦25,000. However, the bank statement shows a credit balance of ₦30,000. What is the correct explanation for this discrepancy?

Correct A. The company has an outstanding cheque.

B. The bank has charged a fee for a service.

C. The company has deposited cash into the bank.

D. The company has withdrawn cash from the bank.

Correct Answer: A

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Question 12

A trader's ledger account for 'Purchases' shows a debit balance of ₦50,000. However, the 'Purchases Return' account shows a credit balance of ₦10,000. What is the correct journal entry to record the return of goods?

A. Debit 'Purchases Return' and credit 'Purchases'.

Correct B. Debit 'Purchases' and credit 'Purchases Return'.

C. Debit 'Purchases Return' and debit 'Purchases'.

D. Credit 'Purchases Return' and credit 'Purchases'.

Correct Answer: B

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Question 13

A company's trial balance shows a debit balance of ₦20,000 in the 'Rent' account. However, the 'Rent Received' account shows a credit balance of ₦15,000. What is the correct explanation for this discrepancy?

A. The company has paid rent in advance.

Correct B. The company has received rent in advance.

C. The company has not recorded rent paid in advance.

D. The company has not recorded rent received in advance.

Correct Answer: B

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Question 14

A trader's ledger account for 'Sales' shows a credit balance of ₦60,000. However, the 'Sales Return' account shows a debit balance of ₦5,000. What is the correct journal entry to record the return of goods?

A. Credit 'Sales Return' and debit 'Sales'.

Correct B. Debit 'Sales Return' and credit 'Sales'.

C. Debit 'Sales' and credit 'Sales Return'.

D. Credit 'Sales' and debit 'Sales Return'.

Correct Answer: B

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Question 15

A company's bank reconciliation statement shows a difference of ₦10,000 between the cash book balance and the bank statement balance. What is the correct explanation for this discrepancy?

Correct A. The company has an outstanding cheque.

B. The bank has charged a fee for a service.

C. The company has deposited cash into the bank.

D. The company has withdrawn cash from the bank.

Correct Answer: A

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Question 16

A trader's ledger account for 'Purchases' shows a debit balance of ₦40,000. However, the 'Purchases Return' account shows a credit balance of ₦8,000. What is the correct journal entry to record the return of goods?

A. Debit 'Purchases Return' and credit 'Purchases'.

Correct B. Debit 'Purchases' and credit 'Purchases Return'.

C. Debit 'Purchases Return' and debit 'Purchases'.

D. Credit 'Purchases Return' and credit 'Purchases'.

Correct Answer: B

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Question 17

A company's trial balance shows a debit balance of ₦25,000 in the 'Rent' account. However, the 'Rent Received' account shows a credit balance of ₦20,000. What is the correct explanation for this discrepancy?

A. The company has paid rent in advance.

Correct B. The company has received rent in advance.

C. The company has not recorded rent paid in advance.

D. The company has not recorded rent received in advance.

Correct Answer: B

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Question 18

A trader's ledger account for 'Sales' shows a credit balance of ₦80,000. However, the 'Sales Return' account shows a debit balance of ₦12,000. What is the correct journal entry to record the return of goods?

A. Credit 'Sales Return' and debit 'Sales'.

Correct B. Debit 'Sales Return' and credit 'Sales'.

C. Debit 'Sales' and credit 'Sales Return'.

D. Credit 'Sales' and debit 'Sales Return'.

Correct Answer: B

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Question 19

A company's bank reconciliation statement shows a difference of ₦15,000 between the cash book balance and the bank statement balance. What is the correct explanation for this discrepancy?

A. The company has an outstanding cheque.

B. The bank has charged a fee for a service.

C. The company has deposited cash into the bank.

D. The company has withdrawn cash from the bank.

Correct Answer: VIEW ANSWER

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Question 20

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

A. ₦450,000

Correct B. ₦475,000

C. ₦500,000

D. ₦525,000

Correct Answer: B

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Question 21

A manufacturing company uses the weighted average method to value its inventory. The company has two departments: A and B. Department A has 100 units of inventory with a cost of ₦10 each, while Department B has 50 units of inventory with a cost of ₦20 each. If the total cost of goods available for sale is ₦5,000, calculate the value of inventory using the weighted average method.

A. ₦3,500

Correct B. ₦4,000

C. ₦4,500

D. ₦5,000

Correct Answer: B

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Question 22

A company issued 10,000 shares of ₦5 each at a premium of ₦2. If the company's authorized capital is ₦100,000, calculate the amount received from share capital.

A. ₦50,000

B. ₦60,000

C. ₦70,000

Correct D. ₦80,000

Correct Answer: D

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Question 23

A government agency has a budget of ₦1,000,000 for the year. The agency has the following expenses: salaries ₦300,000, rent ₦150,000, and utilities ₦100,000. Calculate the amount available for other expenses.

A. ₦350,000

B. ₦450,000

Correct C. ₦550,000

D. ₦650,000

Correct Answer: C

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Question 24

A company uses the straight-line method to depreciate its assets. The company has a machine that cost ₦100,000 and is expected to last for 5 years. Calculate the annual depreciation.

Correct A. ₦20,000

B. ₦15,000

C. ₦10,000

D. ₦5,000

Correct Answer: A

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Question 25

The partners in a firm share profits and losses in the ratio of 5:3:2. If the total profit for the year is ₦120,000, calculate the amount of profit that will be shared by each partner.

A. ₦20,000

Correct B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: B

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