POST UTME PAN-ATLANTIC UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a cash payment of ₦15,000, what is the total amount received from the issue of shares?
A. ₦15,000
B. ₦16,000
C. ₦17,000
D. ₦18,000
Question 2
A company has the following transactions: Purchased office equipment for 8,000, paid 4,000 cash, and borrowed 4,000 from a bank. Prepare the journal entries for these transactions.
A. Debit Office Equipment 8,000, Credit Cash 4,000, Credit Bank Loan 4,000
B. Debit Office Equipment 8,000, Credit Cash 8,000
C. Debit Office Equipment 8,000, Credit Bank Loan 4,000
D. Debit Office Equipment 8,000, Credit Cash 4,000
Question 3
A company has the following ledger accounts: Cash ₦50,000, Accounts Payable ₦20,000, Sales Revenue ₦100,000, and Cost of Goods Sold ₦50,000. What is the net income of the company?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 4
A company issues 500 debentures of ₦100 each at a premium of ₦20 per debenture. If the company receives a cash payment of ₦50,000, what is the total amount received from the issue of debentures?
A. ₦50,000
B. ₦55,000
C. ₦60,000
D. ₦65,000
Question 5
A company has the following transactions: Purchased office supplies for ₦10,000, Sold goods for ₦50,000, and Paid rent for ₦20,000. What is the total amount of cash outflows?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 6
A company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a profit of ₦250,000. What is the reason for the difference?
A. Depreciation
B. Interest on loans
C. Dividends paid
D. Taxation
Question 7
A company's trial balance shows an error of ₦5,000 in the debit side of the purchases account. The correct figure is ₦1,50,000. What is the effect of this error on the net profit?
A. Increases the net profit by ₦5,000
B. Decreases the net profit by ₦5,000
C. Increases the net profit by ₦ 50,000
D. Decreases the net profit by ₦ 50,000
Question 8
A company's balance sheet as at 31st December 2017 is as follows: Assets: ₦10,000,000 Liabilities: ₦5,000,000 Capital: ₦3,000,000 Calculate the current ratio.
A. 2:1
B. 3:1
C. 4:1
D. 5:1
Question 9
A company's control account for the year ended 31st December 2017 is as follows: Purchases: ₦5,000,000 Sales: ₦10,000,000 Cost of Goods Sold: ₦8,000,000 Calculate the balance of the control account.
A. ₦2,000,000
B. ₦3,000,000
C. ₦4,000,000
D. ₦5,000,000
Question 10
A company's balance sheet shows the following assets: Cash 10,000, Accounts Receivable 20,000, Inventory 30,000 What is the total value of the company's assets?
A. 60,000
B. 70,000
C. 80,000
D. 90,000
Question 11
A company's cash book shows a balance of ₦500,000. The company's bank statement shows a balance of ₦550,000. What is the reason for the difference?
A. Bank charges
B. Interest earned
C. Deposits in transit
D. Cheques outstanding
Question 12
A company's trading account for the year ended 31st December 2017 is as follows: Sales: ₦5,000,000 Purchases: ₦3,500,000 Cost of Goods Sold: ₦4,000,000 Gross Profit: ₦1,000,000 Calculate the gross profit percentage.
A. 20%
B. 25%
C. 30%
D. 35%
Question 13
A company issued 10,000 shares of 1 par value at a premium of 3 per share. If the company received 35,000 from the sale of these shares, what is the total amount of the premium received?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 14
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 15
A company has the following transactions: Sold office equipment for 6,000, purchased office equipment for 8,000, and paid 2,000 cash. Prepare the journal entries for these transactions.
A. Debit Office Equipment 8,000, Credit Cash 2,000, Credit Bank Loan 6,000
B. Debit Office Equipment 8,000, Credit Cash 6,000
C. Debit Office Equipment 8,000, Credit Bank Loan 6,000
D. Debit Office Equipment 8,000, Credit Cash 8,000

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