POST UTME REDEEMERS UNIVERSITY 2021 Accounting | Objective

Are you preparing for POST UTME REDEEMERS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦270,000. The bank reconciliation statement reveals a difference of ₦5,000 due to an outstanding cheque. What is the correct balance in the company's cash book?
Correct A. ₦245,000
B. ₦250,000
C. ₦255,000
D. ₦260,000

Correct Answer: A

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Question 2
A public sector organization has the following transactions for the year: Depreciation on assets: ₦50,000 Interest on investments: ₦20,000 Salaries and wages: ₦100,000 Rent and rates: ₦30,000 What is the total expense for the year?
A. ₦180,000
B. ₦190,000
Correct C. ₦200,000
D. ₦210,000

Correct Answer: C

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Question 3
A company's assets are valued as follows: Building: ₦500,000 Machinery: ₦300,000 Vehicles: ₦200,000 What is the total value of the company's assets?
A. ₦1,000,000
B. ₦1,100,000
Correct C. ₦1,200,000
D. ₦1,300,000

Correct Answer: C

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Question 4
A partnership has the following capital accounts: John: ₦100,000 Mary: ₦80,000 David: ₦60,000 What is the total capital of the partnership?
Correct A. ₦240,000
B. ₦240,000
C. ₦240,000
D. ₦240,000

Correct Answer: A

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Question 5
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦270,000. The bank reconciliation statement reveals a difference of ₦5,000 due to an outstanding cheque. What is the correct balance in the company's cash book?
Correct A. ₦245,000
B. ₦250,000
C. ₦255,000
D. ₦260,000

Correct Answer: A

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Question 6
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: Purchased office supplies for ₦10,000, sold goods for ₦50,000, and paid salaries of ₦20,000. Prepare the journal entries for these transactions.
Correct A. Debit Office Supplies ₦10,000, Credit Cash ₦10,000
B. Debit Office Supplies ₦10,000, Credit Sales ₦50,000
C. Debit Office Supplies ₦10,000, Credit Salaries ₦20,000
D. Debit Office Supplies ₦10,000, Credit Cash ₦50,000

Correct Answer: A

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Question 7
A company's assets are valued at ₦100,000. The company uses the straight-line method of depreciation. If the asset has a useful life of 5 years, what is the annual depreciation charge?
A. ₦20,000
B. ₦25,000
Correct C. ₦30,000
D. ₦35,000

Correct Answer: C

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Question 8
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦100,000, Cost of Goods Sold ₦60,000. Prepare the adjusting entries for these transactions.
Correct A. Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦50,000
B. Debit Sales Revenue ₦100,000, Credit Cost of Goods Sold ₦60,000
C. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦60,000
D. Debit Sales Revenue ₦100,000, Credit Accounts Payable ₦50,000

Correct Answer: A

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Question 9
A company's ledger shows the following balances: Cash ₦50,000, Accounts Receivable ₦100,000, Sales Revenue ₦200,000. Prepare the journal entries for these transactions.
A. Debit Cash ₦50,000, Credit Sales Revenue ₦50,000
B. Debit Accounts Receivable ₦100,000, Credit Sales Revenue ₦100,000
Correct C. Debit Cash ₦50,000, Credit Accounts Receivable ₦100,000
D. Debit Sales Revenue ₦200,000, Credit Cash ₦50,000

Correct Answer: C

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Question 10
A company's ledger shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦100,000, Cost of Goods Sold ₦60,000. Prepare the adjusting entries for these transactions.
Correct A. Debit Accounts Payable ₦50,000, Credit Sales Revenue ₦50,000
B. Debit Sales Revenue ₦100,000, Credit Cost of Goods Sold ₦60,000
C. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦60,000
D. Debit Sales Revenue ₦100,000, Credit Accounts Payable ₦50,000

Correct Answer: A

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Question 11
A company's accounting records show that the total assets increased by ₦120,000 and the total liabilities increased by ₦80,000. What is the increase in the company's equity?
A. ₦40,000
B. ₦60,000
Correct C. ₦80,000
D. ₦120,000

Correct Answer: C

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Question 12
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. If the profit for the year is ₦60,000, and the profit is divided in the ratio 3:2, how much will A receive as his share of the profit?
A. ₦36,000
B. ₦40,000
Correct C. ₦48,000
D. ₦60,000

Correct Answer: C

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Question 13
A company's trial balance shows the following balances: Accounts Payable ₦120,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦80,000, and Net Income ₦40,000. What is the amount of the company's total assets?
A. ₦240,000
B. ₦280,000
C. ₦320,000
Correct D. ₦360,000

Correct Answer: D

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Question 14
A government agency has the following transactions: a cash receipt of ₦100,000, a cash payment of ₦50,000, and a transfer of ₦20,000 to a restricted fund. What is the net increase in the agency's cash balance?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 15
A company's balance sheet shows the following: Total Assets ₦500,000, Total Liabilities ₦200,000, and Total Equity ₦300,000. What is the company's debt-to-equity ratio?
A. 1:1
B. 2:1
Correct C. 3:1
D. 4:1

Correct Answer: C

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Question 16
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦30,000
C. ₦36,000
D. ₦40,000

Correct Answer: A

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Question 17
A partnership has two partners, A and B. The capital contributions of A and B are ₦150,000 and ₦200,000 respectively. If the profit-sharing ratio is 2:3, what is the profit-sharing ratio in terms of percentage?
A. 40%
Correct B. 50%
C. 60%
D. 70%

Correct Answer: B

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Question 18
A company's cash book shows a balance of ₦500,000. However, the bank statement shows a balance of ₦550,000. What is the difference between the two balances?
Correct A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000

Correct Answer: A

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Question 19
A company uses the weighted average method to value its inventory. If the cost of the current year's inventory is ₦300,000 and the cost of the previous year's inventory is ₦200,000, what is the weighted average cost per unit?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 20
A company's manufacturing department produces 1,000 units of a product. The direct materials cost is ₦100,000 and the direct labor cost is ₦150,000. What is the total cost of production?
A. ₦200,000,000
Correct B. ₦250,000,000
C. ₦300,000,000
D. ₦350,000,000

Correct Answer: B

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Question 21
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 5,000. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 5,000
B. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000
Correct C. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Debit Issue Expenses £ 5,000
D. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000

Correct Answer: C

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Question 22
A company's trial balance showed a debit balance of £ 10,000 in the account 'Rent Received'. The correct balance should be a credit balance of £ 10,000. What is the correct journal entry to correct the error?
A. Debit Rent Received £ 10,000, Credit Rent Received £ 10,000
B. Debit Rent Received £ 10,000, Credit Profit and Loss £ 10,000
Correct C. Debit Profit and Loss £ 10,000, Credit Rent Received £ 10,000
D. Debit Rent Received £ 10,000, Credit Rent Paid £ 10,000

Correct Answer: C

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Question 23
A company's cash book showed a balance of £ 10,000. However, the bank statement showed a balance of £ 12,000. What is the correct journal entry to reconcile the difference?
Correct A. Debit Cash £ 2,000, Credit Bank £ 2,000
B. Debit Bank £ 2,000, Credit Cash £ 2,000
C. Debit Cash £ 2,000, Credit Profit and Loss £ 2,000
D. Debit Profit and Loss £ 2,000, Credit Cash £ 2,000

Correct Answer: A

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Question 24
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 5,000. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 5,000
B. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000
Correct C. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Debit Issue Expenses £ 5,000
D. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000

Correct Answer: C

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Question 25
A company's trial balance showed a debit balance of £ 10,000 in the account 'Rent Received'. The correct balance should be a credit balance of £ 10,000. What is the correct journal entry to correct the error?
A. Debit Rent Received £ 10,000, Credit Rent Received £ 10,000
B. Debit Rent Received £ 10,000, Credit Profit and Loss £ 10,000
Correct C. Debit Profit and Loss £ 10,000, Credit Rent Received £ 10,000
D. Debit Rent Received £ 10,000, Credit Rent Paid £ 10,000

Correct Answer: C

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