POST UTME REDEEMERS UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
B. ₣1,250
C. ₣2,500
D. ₣3,750
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.
A. ₦2,100,000
B. ₦2,300,000
C. ₦2,500,000
D. ₦2,800,000
Question 3
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
B. ₦270,000
C. ₦290,000
D. ₦310,000
Question 4
A company uses the straight-line method of depreciation for a machine that cost ₦500,000 and has a residual value of ₦50,000. If the machine is expected to last for 5 years, calculate the annual depreciation charge.
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
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.
A. ₦2,100,000
B. ₦2,300,000
C. ₦2,500,000
D. ₦2,800,000
Question 6
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.
A. ₦2,100,000
B. ₦2,300,000
C. ₦2,500,000
D. ₦2,800,000
Question 7
A company uses the FIFO method of inventory valuation. If the company purchases 100 units of an item at ₦50 each and 50 units at ₦60 each, and sells 120 units at ₦70 each, calculate the cost of goods sold.
A. ₦9,000
B. ₦10,000
C. ₦11,000
D. ₦12,000
Question 8
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
D. ₦40,000
Question 9
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?
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
Question 10
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
D. ₨00
Question 11
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?
A. ₦16,000
B. ₦20,000
C. ₦24,000
D. ₦28,000
Question 12
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.
A. ₦300,000
B. ₦320,000
C. ₦340,000
D. ₦360,000
Question 13
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, and Common Stock ₦100,000. If the company's total assets are ₦250,000, calculate the amount of retained earnings.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 14
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?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000
Question 15
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.
A. ₦2,100,000
B. ₦2,300,000
C. ₦2,500,000
D. ₦2,800,000

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