POST UTME PAN-ATLANTIC UNIVERSITY 2021 Accounting | Objective

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Question 1
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. The partnership has a net income of ₦100,000. Determine the amount of net income that partner A will receive.
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 2
A company's trial balance as at December 31, 2022, is as follows: Accounts Payable ₦150,000; Accounts Receivable ₦200,000; Common Stock ₦500,000; Cost of Goods Sold ₦300,000; Dividends ₦20,000; Equipment ₦100,000; Interest Expense ₦15,000; Interest Income ₦10,000; Net Income ₦50,000; Rent Expense ₦30,000; Salaries Expense ₦40,000; Sales ₦600,000; Selling Expenses ₦20,000; Utilities Expense ₦10,000. Prepare a statement of cash flows as at December 31, 2022.
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 3
A company has the following transactions: Purchased office equipment for ₦120,000; sold office equipment for ₦80,000; purchased office equipment for ₦100,000. Prepare the ledger accounts for the above transactions.
A. Office Equipment: ₦220,000, Cash: ₦220,000
B. Office Equipment: ₦220,000, Cash: ₦180,000
C. Office Equipment: ₦220,000, Cash: ₦120,000
D. Office Equipment: ₦220,000, Cash: ₦100,000
Question 4
A public sector organization has a cash book that records all its financial transactions. The cash book shows a balance of ₦1,500,000. However, the bank statement shows a balance of ₦1,800,000. What is the reason for the difference?
A. The cash book has not been updated to reflect the latest transactions.
B. The bank statement has not been updated to reflect the latest transactions.
C. The cash book and bank statement have different accounting periods.
D. The cash book and bank statement have different exchange rates.
Question 5
A company uses the straight-line method of depreciation. The cost of an asset is ₦150,000 and its useful life is 5 years. What is the annual depreciation charge?
A. ₦30,000
B. ₦25,000
C. ₦20,000
D. ₦15,000
Question 6
A company uses the perpetual inventory system. On 1 January 2020, the company had 100 units of Product A in inventory at a cost of 10 per unit. During the year, the company purchased 500 units of Product A at 12 per unit and sold 200 units at 20 per unit. Prepare the journal entry to record the purchase and sale of Product A.
A. Debit Purchase of Inventory 6,000, Credit Cash 6,000
B. Debit Purchase of Inventory 6,000, Credit Accounts Payable 6,000
C. Debit Sales Revenue 4,000, Credit Cost of Goods Sold 4,000
D. Debit Purchase of Inventory 6,000, Credit Accounts Receivable 6,000
Question 7
A company uses the perpetual inventory system. At the end of the year, the following information is available: Beginning inventory, 2,000 units at ₦10 each; purchases, 12,000 units at ₦12 each; sales, 8,000 units at ₦20 each. Prepare a statement of cost of goods sold as at December 31, 2022.
A. ₦96,000
B. ₦120,000
C. ₦144,000
D. ₦168,000
Question 8
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 9
A company uses the perpetual inventory system. At the end of the year, the following information is available: Beginning inventory, 2,000 units at ₦10 each; purchases, 12,000 units at ₦12 each; sales, 8,000 units at ₦20 each. Calculate the cost of goods sold.
A. ₦96,000
B. ₦120,000
C. ₦144,000
D. ₦168,000
Question 10
A company's trading account for the year ended 31st December 2021 shows a profit of ₦1,500,000. The balance on the profit and loss account is ₦2,000,000. The balance on the capital account is ₦3,500,000. The company's issued share capital is ₦5,000,000. Calculate the company's retained earnings at the end of the year.
A. ₦6,000,000
B. ₦5,500,000
C. ₦6,500,000
D. ₦7,000,000
Question 11
A company has the following transactions: Purchased goods for ₦100,000 on credit; sold goods for ₦120,000 for cash; and purchased equipment for ₦50,000 on credit. What is the total amount of cash received from customers?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 12
A company has two partners, A and B, who share profits in the ratio 3:2. Their capital contributions are ₦120,000 and ₦80,000 respectively. If the company's profit for the year is ₦420,000, what is the amount of profit that will be distributed to partner A?
A. ₦180,000
B. ₦120,000
C. ₦240,000
D. ₦300,000
Question 13
A company's trial balance as at 31st December 2022 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Accounts Payable | ₦0 | ₦50,000 | | Sales Revenue | ₦0 | ₦200,000 | | Cost of Goods Sold | ₦100,000 | ₦0 | | Net Income | ₦0 | ₦0 | | Total | ₦150,000 | ₦250,000 | Identify the error in the trial balance.
A. The debit and credit totals do not match.
B. The cash account has a debit balance.
C. The accounts payable account has a credit balance.
D. The sales revenue account has a debit balance.
Question 14
Determine the amount of depreciation for a machine that cost ₦250,000 and has a useful life of 5 years, with a residual value of ₦50,000. The machine is depreciated using the straight-line method.
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 15
A company's trial balance as at December 31, 2022, is as follows: Accounts Payable ₦150,000; Accounts Receivable ₦200,000; Common Stock ₦500,000; Cost of Goods Sold ₦300,000; Dividends ₦20,000; Equipment ₦100,000; Interest Expense ₦15,000; Interest Income ₦10,000; Net Income ₦50,000; Rent Expense ₦30,000; Salaries Expense ₦40,000; Sales ₦600,000; Selling Expenses ₦20,000; Utilities Expense ₦10,000. Prepare a balance sheet as at December 31, 2022.
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000

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