POST UTME REDEEMERS UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's self-balancing ledger shows a balance of ₦20,000 in the account 'Office Equipment' and a balance of ₦15,000 in the account 'Office Supplies'. What is the correct journal entry to correct this error?
A. ₦5,000 debit to Office Supplies and ₦5,000 credit to Office Equipment
B. ₦5,000 credit to Office Supplies and ₦5,000 debit to Office Equipment
C. ₦25,000 debit to Office Supplies and ₦10,000 credit to Office Equipment
D. ₦10,000 debit to Office Supplies and ₦25,000 credit to Office Equipment
Question 2
A company purchased a machine for ₦2,000,000. The machine has a useful life of 5 years and a residual value of ₦200,000. Calculate the annual depreciation using the straight-line method.
A. ₦320,000
B. ₦320,000
C. ₦320,000
D. ₦320,000
Question 3
A company issued 5,000 debentures of ₦1,000 each at a discount of 5%. Calculate the amount of debenture capital and the amount of discount.
A. ₦5,000,000
B. ₦5,000,000
C. ₦5,000,000
D. ₦5,000,000
Question 4
A company's trial balance shows a debit balance of ₦15,000 in the account 'Office Equipment' and a credit balance of ₦20,000 in the account 'Office Supplies'. What is the correct journal entry to correct this error?
A. ₦15,000 debit to Office Supplies and ₦20,000 credit to Office Equipment
B. ₦15,000 credit to Office Supplies and ₦20,000 debit to Office Equipment
C. ₦35,000 debit to Office Supplies and ₦15,000 credit to Office Equipment
D. ₦20,000 debit to Office Supplies and ₦15,000 credit to Office Equipment
Question 5
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦15,000 in cash, determine the amount of share capital and the amount of share premium.
A. ₦10,000, ₦5,000
B. ₦15,000, ₦10,000
C. ₦20,000, ₦15,000
D. ₦25,000, ₦20,000
Question 6
A company purchased a machine for ₦1,500,000. The machine has a useful life of 5 years and a residual value of ₦150,000. Calculate the annual depreciation using the straight-line method.
A. ₦270,000
B. ₦270,000
C. ₦270,000
D. ₦270,000
Question 7
Determine the amount of goodwill to be written off in the year ended 31st December 2018, given that the goodwill account was valued at ₦120,000 at the beginning of the year and ₦90,000 at the end of the year.
A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000
Question 8
Determine the amount of depreciation on a machine that cost ₦120,000 and has a useful life of 5 years, with a residual value of ₦20,000. The machine is depreciated using the straight-line method.
A. ₦20,000
B. ₦24,000
C. ₦28,000
D. ₦32,000
Question 9
A company's income statement shows the following balances: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000. What is the company's net income?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 10
A company's balance sheet as at 31st December 2018 shows a total of ₦300,000 in the non-current assets section. The company's profit and loss account for the same period shows a net loss of ₦100,000. What is the amount of the company's provision for doubtful debts?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 11
A manufacturing company produces two products, A and B. The selling price of A is ₹50 per unit and the selling price of B is ₹75 per unit. The variable costs of A and B are ₹20 and ₹30 per unit respectively. The fixed costs are ₹10,000. If the company produces 100 units of A and 80 units of B, calculate the total profit.
A. ₹15,000
B. ₹20,000
C. ₹25,000
D. ₹30,000
Question 12
A company's cash book showed a balance of ₦50,000. The bank statement showed a balance of ₦60,000. The difference is due to a bank overdraft of ₦10,000. Prepare the necessary bank reconciliation statement.
A. ₦50,000 | ₦60,000 | ₦10,000
B. ₦60,000 | ₦50,000 | ₦10,000
C. ₦50,000 | ₦50,000 | ₦10,000
D. ₦60,000 | ₦60,000 | ₦10,000
Question 13
A company has a capital of ₦500,000, divided equally among three partners. The profit for the year is ₦150,000. If the partners' drawings are ₦20,000 each, determine the profit-sharing ratio of the partners.
A. 2:1:1
B. 1:1:2
C. 3:2:1
D. 1:2:3
Question 14
A company's control account shows a balance of ₦50,000 in the account 'Sales' and a balance of ₦40,000 in the account 'Purchases'. What is the correct journal entry to correct this error?
A. ₦10,000 debit to Sales and ₦10,000 credit to Purchases
B. ₦10,000 credit to Sales and ₦10,000 debit to Purchases
C. ₦50,000 debit to Sales and ₦40,000 credit to Purchases
D. ₦40,000 debit to Sales and ₦50,000 credit to Purchases
Question 15
A company uses the accrual method of accounting. If the company purchases goods on credit for ₦100,000 and pays ₦80,000 in cash, what is the amount of accounts payable?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

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