Practice Post UTME OSUSTECH accounting 2024 Past Questions

Question 1

Determine the amount of depreciation expense for the year ended December 31, 2023, for a machine purchased on January 1, 2022, for ₦500,000, with a useful life of 5 years and a residual value of ₦50,000.

A. ₦80,000

Correct B. ₦90,000

C. ₦100,000

D. ₦110,000

Correct Answer: B

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Question 2

A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 5,000 debentures of ₦100 each. Prepare the journal entry to record the issue of shares and debentures.

A. Debit Share Capital ₦5,000,000; Credit Premium on Issue ₦2,500,000; Credit Debentures ₦5,000,000

B. Debit Share Capital ₦5,000,000; Credit Premium on Issue ₦2,500,000; Credit Cash ₦5,000,000

Correct C. Debit Share Capital ₦5,000,000; Credit Premium on Issue ₦2,500,000; Credit Debentures ₦5,000,000

D. Debit Share Capital ₦5,000,000; Credit Premium on Issue ₦2,500,000; Credit Cash ₦5,000,000

Correct Answer: C

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Question 3

A partnership is formed between two partners, A and B, who contribute ₦200,000 and ₦300,000 respectively. The partnership agreement states that the profit and loss will be shared in the ratio 2:3. Prepare the partnership deed.

Correct A. Partnership Deed: A and B to share profits and losses in the ratio 2:3

B. Partnership Deed: A and B to share profits and losses in the ratio 3:2

C. Partnership Deed: A and B to share profits and losses in the ratio 1:1

D. Partnership Deed: A and B to share profits and losses in the ratio 4:6

Correct Answer: A

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Question 4

A company's trial balance shows the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. Prepare the balance sheet.

A. ₦1,200,000

Correct B. ₦1,300,000

C. ₦1,400,000

D. ₦1,500,000

Correct Answer: B

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Question 5

A company's financial statements for the year ended December 31, 2023, show the following: Net Income ₦200,000, Dividends ₦50,000, and Retained Earnings ₦150,000. Prepare the statement of changes in equity.

A. ₦300,000

B. ₦400,000

Correct C. ₦500,000

D. ₦600,000

Correct Answer: C

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Question 6

In a partnership account, if the partners' capital accounts are overdrawn, what is the accounting treatment?

Correct A. The overdrawn amount is treated as a loan from the partners.

B. The overdrawn amount is treated as a loss to be shared among the partners.

C. The overdrawn amount is treated as a capital contribution from the partners.

D. The overdrawn amount is ignored in the partnership accounts.

Correct Answer: A

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Question 7

A company issues 1,000 shares of 10 par value at a premium of 20%. What is the total amount received from the issue of shares?

Correct A. ₦1,200,000

B. ₦1,100,000

C. ₦1,000,000

D. ₦900,000

Correct Answer: A

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Question 8

A company's assets are valued at ₦1,500,000, liabilities are ₦800,000, and equity is ₦700,000. What is the company's net asset value?

A. ₦1,000,000

Correct B. ₦1,200,000

C. ₦1,300,000

D. ₦1,400,000

Correct Answer: B

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Question 9

A company has a control account for its cash account. The balance in the control account is ₦500,000, and the cash account balance is ₦600,000. What is the reason for the difference?

A. The control account is under-stated.

Correct B. The control account is over-stated.

C. The cash account is under-stated.

D. The cash account is over-stated.

Correct Answer: B

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Question 10

A company issues 5-year debentures at a discount of 5%. What is the annual interest on the debentures?

A. ₦50,000

Correct B. ₦55,000

C. ₦60,000

D. ₦65,000

Correct Answer: B

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Question 11

A company issued 5,000 shares of 10 par value at a premium of 5 per share. Calculate the total amount received from the issue of shares.

A. ₦250,000

Correct B. ₦250,000,000

C. ₦125,000,000

D. ₦50,000,000

Correct Answer: B

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Question 12

A company purchased a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.

Correct A. ₦90,000

B. ₦100,000

C. ₦80,000

D. ₦110,000

Correct Answer: A

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Question 13

A company issued 10,000 debentures of ₦1,000 each at a discount of 5%. Calculate the total amount received from the issue of debentures.

Correct A. ₦9,500,000

B. ₦9,000,000

C. ₦9,800,000

D. ₦9,200,000

Correct Answer: A

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Question 14

A company purchased a building for ₦2,000,000. The building has a useful life of 10 years and a residual value of ₦200,000. Calculate the annual depreciation using the straight-line method.

Correct A. ₦180,000

B. ₦160,000

C. ₦200,000

D. ₦220,000

Correct Answer: A

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Question 15

A company issued 20,000 shares of ₦5 par value at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.

A. ₦100,000

Correct B. ₦120,000

C. ₦140,000

D. ₦160,000

Correct Answer: B

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Question 16

A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. The profit-sharing ratio is 3:2. Calculate the total profit for the year, given that the net profit is ₦750,000.

A. ₦450,000

Correct B. ₦525,000

C. ₦600,000

D. ₦675,000

Correct Answer: B

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Question 17

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

A. ₦500,000

Correct B. ₦550,000

C. ₦600,000

D. ₦650,000

Correct Answer: B

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Question 18

A manufacturing company produces two products, X and Y. The selling price of X is ₦100 per unit, and the selling price of Y is ₦120 per unit. The company sells 500 units of X and 300 units of Y. Calculate the total revenue from the sale of these products.

A. ₦120,000

B. ₦150,000

Correct C. ₦180,000

D. ₦200,000

Correct Answer: C

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Question 19

A company has a trial balance as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | | | Accounts Payable | | ₦30,000 | | Sales | | ₦100,000 | | Cost of Goods Sold | ₦60,000 | | | Net Income | | ₦20,000 | Identify the error in the trial balance.

A. The Cash account has a debit balance of ₦50,000.

B. The Accounts Payable account has a credit balance of ₦30,000.

Correct C. The Sales account has a credit balance of ₦100,000.

D. The Cost of Goods Sold account has a debit balance of ₦60,000.

Correct Answer: C

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Question 20

A company has a cash book as follows: | Date | Debit | Credit | | --- | --- | --- | | 2022-01-01 | ₦10,000 | | | 2022-01-15 | | ₦5,000 | | 2022-02-01 | ₦20,000 | | Identify the error in the cash book.

A. The debit balance on 2022-01-01 is ₦10,000.

B. The credit balance on 2022-01-15 is ₦5,000.

C. The debit balance on 2022-02-01 is ₦20,000.

Correct D. The cash book is balanced.

Correct Answer: D

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Question 21

A company issued 5,000 shares of ₦10 each at a premium of ₦3 per share. Calculate the total amount received from the issue of shares.

A. ₦150,000

Correct B. ₦175,000

C. ₦200,000

D. ₦225,000

Correct Answer: B

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Question 22

A company's trading account for the year ended 31st December 2023 is as follows: Debit: \begin{itemize} \item Purchases: ₦1,500,000 \item Carriage Inward: ₦20,000 \item Office Expenses: ₦30,000 \end{itemize} Credit: \begin{itemize} \item Sales: ₦2,000,000 \item Returns Outward: ₦10,000 \end{itemize} Calculate the gross profit for the year.

Correct A. ₦450,000

B. ₦500,000

C. ₦550,000

D. ₦600,000

Correct Answer: A

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Question 23

A company's balance sheet as at 31st December 2023 is as follows: Assets: \begin{itemize} \item Cash: ₦50,000 \item Debtors: ₦100,000 \item Stock: ₦200,000 \item Plant and Machinery: ₦300,000 \end{itemize} Liabilities: \begin{itemize} \item Creditors: ₦150,000 \item Loan: ₦200,000 \end{itemize} Calculate the company's net worth.

A. ₦100,000

B. ₦150,000

C. ₦200,000

Correct D. ₦250,000

Correct Answer: D

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Question 24

A company's profit and loss account for the year ended 31st December 2023 is as follows: Trading Profit: ₦500,000 \begin{itemize} \item Depreciation: ₦50,000 \item Interest on Loan: ₦20,000 \end{itemize} Calculate the company's net profit for the year.

A. ₦450,000

Correct B. ₦500,000

C. ₦550,000

D. ₦600,000

Correct Answer: B

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Question 25

A company's balance sheet as at 31st December 2023 is as follows: Assets: \begin{itemize} \item Cash: ₦50,000 \item Debtors: ₦100,000 \item Stock: ₦200,000 \item Plant and Machinery: ₦300,000 \end{itemize} Liabilities: \begin{itemize} \item Creditors: ₦150,000 \item Loan: ₦200,000 \end{itemize} Calculate the company's current ratio.

A. 1:1

Correct B. 1:2

C. 2:1

D. 3:1

Correct Answer: B

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