Practice Post UTME REDEEMERS UNIVERSITY accounting 2018 Past Questions

Question 1

A company uses the single-entry system of accounting. The company's assets at the beginning of the year were ₦1,500,000. During the year, the company purchased equipment for ₦800,000 and sold goods worth ₦1,200,000. The company also received dividends of ₦300,000. Calculate the company's net assets at the end of the year.

Correct A. ₦2,100,000

B. ₦2,300,000

C. ₦2,500,000

D. ₦2,800,000

Correct Answer: A

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Question 2

A company's balance sheet at the beginning of the year showed assets of ₦1,500,000 and liabilities of ₦800,000. During the year, the company purchased equipment for ₦800,000 and sold goods worth ₦1,200,000. The company also received dividends of ₦300,000. Calculate the company's net assets at the end of the year.

Correct A. ₦2,100,000

B. ₦2,300,000

C. ₦2,500,000

D. ₦2,800,000

Correct Answer: A

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Question 3

A company uses the single-entry system of accounting. The company's assets at the beginning of the year were ₦1,500,000. During the year, the company purchased equipment for ₦800,000 and sold goods worth ₦1,200,000. The company also received dividends of ₦300,000. Calculate the company's net assets at the end of the year.

Correct A. ₦2,100,000

B. ₦2,300,000

C. ₦2,500,000

D. ₦2,800,000

Correct Answer: A

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Question 4

A company's balance sheet at the beginning of the year showed assets of ₦1,500,000 and liabilities of ₦800,000. During the year, the company purchased equipment for ₦800,000 and sold goods worth ₦1,200,000. The company also received dividends of ₦300,000. Calculate the company's net assets at the end of the year.

Correct A. ₦2,100,000

B. ₦2,300,000

C. ₦2,500,000

D. ₦2,800,000

Correct Answer: A

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Question 5

A company uses the single-entry system of accounting. The company's assets at the beginning of the year were ₦1,500,000. During the year, the company purchased equipment for ₦800,000 and sold goods worth ₦1,200,000. The company also received dividends of ₦300,000. Calculate the company's net assets at the end of the year.

Correct A. ₦2,100,000

B. ₦2,300,000

C. ₦2,500,000

D. ₦2,800,000

Correct Answer: A

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Question 6

A company's trading account for the year ended 31st December 2018 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦20,000; Returns Inwards: ₦15,000. Calculate the gross profit for the year.

A. ₦250,000

Correct B. ₦270,000

C. ₦290,000

D. ₦310,000

Correct Answer: B

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Question 7

A company's balance sheet as at 31st December 2018 is as follows: Equity: ₦1,500,000; Liabilities: ₦1,200,000. Calculate the company's net worth.

Correct A. ₦300,000

B. ₦320,000

C. ₦340,000

D. ₦360,000

Correct Answer: A

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Question 8

A company's cash book for the year ended 31st December 2018 is as follows: Cash at Bank: ₦1,500,000; Cash in Hand: ₦200,000. Calculate the company's total cash.

Correct A. ₦1,700,000

B. ₦1,720,000

C. ₦1,740,000

D. ₦1,760,000

Correct Answer: A

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Question 9

A company's bank reconciliation statement for the year ended 31st December 2018 is as follows: Bank Statement Balance: ₦1,500,000; Cash Book Balance: ₦1,200,000. Calculate the company's bank overdraft.

Correct A. ₦300,000

B. ₦320,000

C. ₦340,000

D. ₦360,000

Correct Answer: A

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Question 10

A company's single entry system for the year ended 31st December 2018 is as follows: Cash Received: ₦1,500,000; Cash Paid: ₦1,200,000. Calculate the company's net cash flow.

Correct A. ₦300,000

B. ₦320,000

C. ₦340,000

D. ₦360,000

Correct Answer: A

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Question 11

A company issued 5,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.

A. ₣0,250

Correct B. ₣1,250

C. ₣2,500

D. ₣3,750

Correct Answer: B

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Question 12

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 500 | | 3 Jan | Cash | | 800 | What is the balance of the cash account?

Correct A. ₨0

B. ₡00

C. ₡20

D. ₡40

Correct Answer: A

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Question 13

A company issued 10,000 debentures of ₡00 each at a discount of 5%. Calculate the total amount received from the issue of debentures.

A. ₩00,000

Correct B. ₩50,000

C. ₡,000,000

D. ₡,050,000

Correct Answer: B

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Question 14

A. ₠

B. ₡00,000

C. ₢00,000

Correct D. ₣00,000

Correct Answer: D

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Question 15

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 500 | | 3 Jan | Cash | | 800 | What is the balance of the bank account?

A. ₥00

B. ₦00

C. ₧00

Correct D. ₨00

Correct Answer: D

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Question 16

A company issued 5,000 shares of ₡ each at a premium of ₠.50 per share. Calculate the total amount received from the issue of shares.

A. ₢,500

Correct B. ₣,250

C. ₤,000

D. ₤,750

Correct Answer: B

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Question 17

A. ₠

B. ₡00,000

C. ₢00,000

Correct D. ₣00,000

Correct Answer: D

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Question 18

A company issued 10,000 debentures of ₡00 each at a discount of 5%. Calculate the total amount received from the issue of debentures.

A. ₩00,000

Correct B. ₩50,000

C. ₡,000,000

D. ₡,050,000

Correct Answer: B

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Question 19

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 500 | | 3 Jan | Cash | | 800 | What is the balance of the cash account?

A. ₨0

B. ₡00

C. ₡20

D. ₡40

Correct Answer: VIEW ANSWER

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Question 20

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that the rent received was ₦10,000. What is the correct journal entry to correct the error?

Correct A. ₦5,000 debit to Rent Received and ₦5,000 credit to Cash

B. ₦10,000 debit to Rent Received and ₦10,000 credit to Cash

C. ₦15,000 debit to Rent Received and ₦15,000 credit to Cash

D. ₦20,000 debit to Rent Received and ₦20,000 credit to Cash

Correct Answer: A

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Question 21

A company uses the straight-line method of depreciation. The asset's cost is ₦120,000, its residual value is ₦20,000, and it is expected to be used for 5 years. What is the annual depreciation charge?

Correct A. ₦16,000

B. ₦20,000

C. ₦24,000

D. ₦28,000

Correct Answer: A

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Question 22

A government agency is required to prepare a cash flow statement in accordance with the cash basis of accounting. Which of the following items would NOT be included in the cash flows from operating activities?

A. Cash received from customers

B. Cash paid to suppliers

Correct C. Cash received from government grants

D. Cash paid for interest on loans

Correct Answer: C

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Question 23

A company's trading account shows a profit of ₦50,000. The company's profit and loss account shows a net profit of ₦70,000. What is the amount of the company's non-trading income?

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 24

A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank statement balance. The company's cash book balance is ₦20,000. What is the bank statement balance?

A. ₦25,000

B. ₦30,000

C. ₦35,000

Correct D. ₦40,000

Correct Answer: D

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Question 25

In a single-entry system, a business records its transactions by debiting or crediting a single account. What is the primary advantage of this system?

Correct A. Simplifies accounting processes

B. Increases accuracy of financial statements

C. Reduces the need for ledger accounts

D. Enhances internal control

Correct Answer: A

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