POST UTME PAN-ATLANTIC UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME PAN-ATLANTIC UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a partnership account, what is the correct method for calculating the capital of a partner who has been absent for a year?
Correct A. Capital is calculated as the average of the partner's capital for the previous and current years.
B. Capital is calculated as the average of the partner's capital for the current and next years.
C. Capital is calculated as the partner's capital for the previous year.
D. Capital is calculated as the partner's capital for the current year.

Correct Answer: A

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Question 2
What is the correct journal entry for the following transaction: A partner withdraws ₦10,000 cash from the partnership?
Correct A. Partner's Capital a/c Dr. ₦10,000, Cash a/c Cr. ₦10,000
B. Partner's Capital a/c Cr. ₦10,000, Cash a/c Dr. ₦10,000
C. Cash a/c Dr. ₦10,000, Partner's Capital a/c Cr. ₦10,000
D. Partner's Capital a/c Dr. ₦10,000, Cash a/c Dr. ₦10,000

Correct Answer: A

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Question 3
A partnership has two partners, A and B. The partnership's trial balance shows a discrepancy of ₦5,000. What is the correct procedure to rectify the discrepancy?
Correct A. Prepare a suspense account and debit or credit the discrepancy to it.
B. Prepare a journal entry to rectify the discrepancy.
C. Adjust the trial balance by debiting or crediting the discrepancy to the relevant account.
D. Ignore the discrepancy and proceed with the accounting process.

Correct Answer: A

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Question 4
What is the correct formula for calculating depreciation using the straight-line method?
Correct A. Depreciation = (Cost - Residual Value) / Useful Life
B. Depreciation = (Cost - Residual Value) / (Useful Life - Residual Value)
C. Depreciation = (Cost - Residual Value) / (Useful Life + Residual Value)
D. Depreciation = (Cost + Residual Value) / Useful Life

Correct Answer: A

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Question 5
A public sector organization has a fixed asset with a cost of ₦100,000 and a residual value of ₦20,000. What is the correct method for valuing the asset?
Correct A. Cost Model
B. Revaluation Model
C. Fair Value Model
D. Depreciated Cost Model

Correct Answer: A

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Question 6
A company uses the straight-line method of depreciation for its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 7
A government agency has the following transactions for the year: Cash received from customers: ₦100,000 Cash paid to suppliers: ₦80,000 Cash paid to employees: ₦30,000 Cash received from loans: ₦20,000 What is the net cash inflow for the year?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 8
A manufacturing company has the following production costs for the month: Direct materials: ₦150,000 Direct labor: ₦100,000 Variable overhead: ₦50,000 Fixed overhead: ₦30,000 What is the total production cost for the month?
A. ₦370,000
B. ₦380,000
Correct C. ₦390,000
D. ₦400,000

Correct Answer: C

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Question 9
A company has the following balance sheet as at December 31: Assets: Cash: ₦50,000 Accounts receivable: ₦100,000 Inventory: ₦150,000 Total assets: ₦300,000 Liabilities: Accounts payable: ₦50,000 Long-term debt: ₦100,000 Total liabilities: ₦150,000 What is the company's equity?
A. ₦150,000
B. ₦200,000
C. ₦250,000
Correct D. ₦300,000

Correct Answer: D

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Question 10
A partnership has the following capital accounts: Partner A: ₦100,000 Partner B: ₦150,000 Partner C: ₦200,000 What is the total capital of the partnership?
A. ₦450,000
B. ₦500,000
C. ₦550,000
Correct D. ₦600,000

Correct Answer: D

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Question 11
A company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials are valued at ₦120,000, the work-in-progress is valued at ₦180,000, and the finished goods are valued at ₦240,000. If the company uses a weighted average method with a weight of 0.4 for raw materials, 0.3 for work-in-progress, and 0.3 for finished goods, what is the total value of the inventory?
A. ₦360,000
Correct B. ₦420,000
C. ₦480,000
D. ₦540,000

Correct Answer: B

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Question 12
A company has the following transactions in its cash book: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash received from customers | ₦100,000 | | | 1/2 | Cash paid to suppliers | | ₦80,000 | | 1/3 | Cash received from bank | ₦120,000 | | | 1/4 | Cash paid to employees | | ₦90,000 | What is the total cash balance at the end of the month?
A. ₦150,000
B. ₦180,000
Correct C. ₦210,000
D. ₦240,000

Correct Answer: C

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Question 13
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦500,000 and a useful life of 5 years. What is the annual depreciation charge?
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 14
A company has the following transactions in its bank reconciliation statement: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Bank balance | ₦100,000 | | | 1/2 | Cheque deposited | | ₦120,000 | | 1/3 | Cheque returned | ₦80,000 | | | 1/4 | Bank interest | | ₦10,000 | What is the correct bank balance?
A. ₦130,000
B. ₦140,000
Correct C. ₦150,000
D. ₦160,000

Correct Answer: C

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Question 15
A company has the following transactions in its ledger: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Sales | ₦100,000 | | | 1/2 | Purchases | | ₦80,000 | | 1/3 | Wages | | ₦90,000 | | 1/4 | Rent | ₦10,000 | | What is the net profit?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 16
A company issued 5,000 shares of 10 par value at a premium of 5 per share. If the company received 50,000 from the sale of these shares, what is the total amount of shareholders' equity?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 17
A government agency is responsible for collecting taxes on behalf of the government. The agency collects ₦1,000,000 in taxes and pays ₦200,000 in salaries. What is the net amount collected by the agency?
Correct A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,200,000

Correct Answer: A

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Question 18
A company has the following transactions: Purchased office supplies for ₦10,000, sold goods for ₦50,000, and purchased equipment for ₦20,000. What is the total amount of assets?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 19
A company issued 10,000 shares of 5 par value at a premium of 2 per share. If the company received 60,000 from the sale of these shares, what is the total amount of shareholders' equity?
A. ₦120,000
B. ₦140,000
Correct C. ₦160,000
D. ₦180,000

Correct Answer: C

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Question 20
A government agency is responsible for collecting taxes on behalf of the government. The agency collects ₦2,000,000 in taxes and pays ₦400,000 in salaries. What is the net amount collected by the agency?
Correct A. ₦1,600,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,400,000

Correct Answer: A

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Question 21
A company has the following transactions: Purchased office supplies for ₦20,000, sold goods for ₦100,000, and purchased equipment for ₦30,000. What is the total amount of assets?
A. ₦150,000
B. ₦160,000
Correct C. ₦170,000
D. ₦180,000

Correct Answer: C

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Question 22
A company issued 15,000 shares of 10 par value at a premium of 3 per share. If the company received 90,000 from the sale of these shares, what is the total amount of shareholders' equity?
A. ₦135,000
B. ₦155,000
Correct C. ₦175,000
D. ₦195,000

Correct Answer: C

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Question 23
A government agency is responsible for collecting taxes on behalf of the government. The agency collects ₦3,000,000 in taxes and pays ₦600,000 in salaries. What is the net amount collected by the agency?
Correct A. ₦2,400,000
B. ₦2,800,000
C. ₦3,000,000
D. ₦3,600,000

Correct Answer: A

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Question 24
A company has the following transactions: Purchased office supplies for ₦30,000, sold goods for ₦150,000, and purchased equipment for ₦40,000. What is the total amount of assets?
A. ₦220,000
B. ₦230,000
Correct C. ₦240,000
D. ₦250,000

Correct Answer: C

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Question 25
A company issues 10,000, 9% debentures of ₦100 each at a premium of 10%. Calculate the amount received from the issue of debentures.
A. ₦1,000,000
Correct B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000

Correct Answer: B

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