Practice Post UTME OSUSTECH accounting 2023 Past Questions

Question 1

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this error?

A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

Correct B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid

D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

Correct Answer: B

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Question 2

A company's partnership agreement states that the profits and losses are to be shared in the ratio 3:2 between partners A and B. If the total profit for the year is ₦120,000, how much will partner A receive?

Correct A. ₦90,000

B. ₦60,000

C. ₦80,000

D. ₦100,000

Correct Answer: A

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Question 3

A company's balance sheet shows a current asset of ₦50,000 and a current liability of ₦30,000. What is the company's working capital?

Correct A. ₦20,000

B. ₦10,000

C. ₦30,000

D. ₦40,000

Correct Answer: A

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Question 4

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this error?

A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

Correct B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid

D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

Correct Answer: B

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Question 5

A company's partnership agreement states that the profits and losses are to be shared in the ratio 3:2 between partners A and B. If the total profit for the year is ₦120,000, how much will partner A receive?

Correct A. ₦90,000

B. ₦60,000

C. ₦80,000

D. ₦100,000

Correct Answer: A

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Question 6

A company has the following transactions recorded in its cash book: Debit: Cash: ₦15,000 Bank: ₦20,000 Credit: Cash: ₦10,000 Bank: ₦25,000 What is the correct balance of the company's cash account?

A. ₦5,000

Correct B. ₦10,000

C. ₦15,000

D. ₦20,000

Correct Answer: B

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Question 7

A manufacturing company has the following departmental accounts: Selling Department: Sales: ₦100,000 Cost of Goods Sold: ₦80,000 Purchasing Department: Purchases: ₦120,000 Returns: ₦10,000 What is the net profit of the company?

A. ₦20,000

B. ₦30,000

Correct C. ₦40,000

D. ₦50,000

Correct Answer: C

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Question 8

A company has the following shares issued: Ordinary Shares: 10,000 shares of ₦10 each Preference Shares: 5,000 shares of ₦5 each What is the total amount of share capital?

A. ₦150,000

B. ₦200,000

Correct C. ₦250,000

D. ₦300,000

Correct Answer: C

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Question 9

A company has the following trial balance: Debit: Cash: ₦50,000 Bank: ₦30,000 Credit: Sales: ₦100,000 Purchases: ₦80,000 What is the correct balance of the company's cash account?

A. ₦20,000

B. ₦30,000

C. ₦40,000

Correct D. ₦50,000

Correct Answer: D

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Question 10

A company has the following incomplete records: Cash: ₦20,000 Bank: ₦30,000 What is the correct balance of the company's cash account?

Correct A. ₦20,000

B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: A

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Question 11

A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount received from the issue of shares in excess of the par value.

A. ₦3,400,000

B. ₦3,500,000

Correct C. ₦3,600,000

D. ₦3,700,000

Correct Answer: C

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Question 12

A company's balance sheet as at 31st December 2022 is as follows: Equity Share Capital 100,000, Retained Earnings 200,000, and Non-Current Liabilities 300,000. Calculate the company's total equity.

Correct A. 600,000

B. 700,000

C. 800,000

D. 900,000

Correct Answer: A

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Question 13

A company purchased a machine for 10,000. The machine has a useful life of 5 years and a residual value of 2,000. Calculate the annual depreciation using the straight-line method.

Correct A. 1,600

B. 1,800

C. 1,900

D. 2,000

Correct Answer: A

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Question 14

A company issued 5,000 debentures of 100 each at a premium of 10%. The total amount received from the issue of debentures is 525,000. Calculate the amount received from the issue of debentures in excess of the face value.

A. ₦25,500

B. ₦26,000

Correct C. ₦26,500

D. ₦27,000

Correct Answer: C

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Question 15

A company's trial balance as at 31st December 2022 is as follows: Sales 500,000, Cost of Goods Sold 300,000, and Net Profit 150,000. Calculate the company's gross profit.

A. 200,000

B. 250,000

Correct C. 300,000

D. 350,000

Correct Answer: C

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Question 16

A company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of 10,000 units with a cost of ₦50,000. During the period, the Cutting department incurred direct materials of ₦120,000 and direct labor of ₦80,000. The Assembly department has a beginning work-in-process inventory of 8,000 units with a cost of ₦40,000. During the period, the Assembly department incurred direct materials of ₦100,000 and direct labor of ₦60,000. The company uses a predetermined overhead rate of 150% of direct labor costs. The total production cost for the period is ₦500,000. What is the total cost of goods manufactured for the period?

A. ₦550,000

Correct B. ₦600,000

C. ₦650,000

D. ₦700,000

Correct Answer: B

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Question 17

A company uses the perpetual inventory system. The company's beginning inventory is 500 units at a cost of ₦100 per unit. During the period, the company purchases 1,000 units at ₦120 per unit and sells 600 units at ₦150 per unit. The company uses the FIFO method to value its inventory. What is the cost of goods sold for the period?

A. ₦60,000

B. ₦70,000

Correct C. ₦80,000

D. ₦90,000

Correct Answer: C

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Question 18

A company uses the job costing method to account for its production costs. The company has a job that requires 10,000 units of direct materials at a cost of ₦50 per unit and 5,000 units of direct labor at a cost of ₦100 per hour. The company uses a predetermined overhead rate of 150% of direct labor costs. The total production cost for the job is ₦500,000. What is the total cost of direct materials for the job?

Correct A. ₦250,000

B. ₦300,000

C. ₦350,000

D. ₦400,000

Correct Answer: A

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Question 19

A company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of 10,000 units with a cost of ₦50,000. During the period, the Cutting department incurred direct materials of ₦120,000 and direct labor of ₦80,000. The Assembly department has a beginning work-in-process inventory of 8,000 units with a cost of ₦40,000. During the period, the Assembly department incurred direct materials of ₦100,000 and direct labor of ₦60,000. The company uses a predetermined overhead rate of 150% of direct labor costs. What is the total cost of goods manufactured for the period?

A. ₦550,000

Correct B. ₦600,000

C. ₦650,000

D. ₦700,000

Correct Answer: B

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Question 20

A company uses the perpetual inventory system. The company's beginning inventory is 500 units at a cost of ₦100 per unit. During the period, the company purchases 1,000 units at ₦120 per unit and sells 600 units at ₦150 per unit. The company uses the FIFO method to value its inventory. What is the cost of goods sold for the period?

A. ₦60,000

B. ₦70,000

Correct C. ₦80,000

D. ₦90,000

Correct Answer: C

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Question 21

A company uses a single-entry system. The journal entry for the purchase of a machine on January 1, 2023, is as follows: Debit: Machine 10,000, Credit: Cash 10,000. If the machine's useful life is 5 years, and the company uses the straight-line method of depreciation, what is the annual depreciation expense for the year 2023?

Correct A. 2,000

B. 1,000

C. 4,000

D. 5,000

Correct Answer: A

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Question 22

A company has the following trial balance as at December 31, 2022: Accounts Payable 50,000, Accounts Receivable 20,000, Common Stock 100,000, Dividends 5,000, Equipment 80,000, Interest Expense 10,000, Net Income 20,000, Retained Earnings 30,000, Salaries Expense 15,000, Sales Revenue 150,000, Taxes Payable 10,000, Utilities Expense 5,000. What is the total amount of the company's assets as at December 31, 2022?

Correct A. 250,000

B. 200,000

C. 220,000

D. 180,000

Correct Answer: A

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Question 23

A partnership has two partners, A and B. The capital accounts of the partners are as follows: A 100,000, B 50,000. The profit-sharing ratio is 3:2. What is the amount of the profit to be distributed to partner A?

Correct A. 60,000

B. 40,000

C. 50,000

D. 30,000

Correct Answer: A

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Question 24

A company has the following balance sheet as at December 31, 2022: Cash 50,000, Accounts Payable 20,000, Common Stock 100,000, Dividends 5,000, Equipment 80,000, Interest Expense 10,000, Net Income 20,000, Retained Earnings 30,000, Salaries Expense 15,000, Sales Revenue 150,000, Taxes Payable 10,000, Utilities Expense 5,000. What is the total amount of the company's liabilities as at December 31, 2022?

Correct A. 120,000

B. 100,000

C. 110,000

D. 90,000

Correct Answer: A

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Question 25

A company has the following trial balance as at December 31, 2022: Accounts Payable 50,000, Accounts Receivable 20,000, Common Stock 100,000, Dividends 5,000, Equipment 80,000, Interest Expense 10,000, Net Income 20,000, Retained Earnings 30,000, Salaries Expense 15,000, Sales Revenue 150,000, Taxes Payable 10,000, Utilities Expense 5,000. What is the total amount of the company's equity as at December 31, 2022?

Correct A. 220,000

B. 200,000

C. 210,000

D. 190,000

Correct Answer: A

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