POST UTME REDEEMERS UNIVERSITY 2024 Accounting | Objective

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Question 1
A company prepares its trial balance and discovers that the debit and credit totals are not equal. The difference is ₦5,000. The company's accountant suspects that the error may be due to a mistake in the journal entries. Which of the following steps should the accountant take first?
Correct A. Verify the journal entries for the past month to ensure that all transactions have been recorded correctly.
B. Reconcile the bank statement to ensure that all transactions have been recorded correctly.
C. Prepare a list of all the accounts that have been affected by the error and investigate each one separately.
D. Reconcile the cash book to ensure that all transactions have been recorded correctly.

Correct Answer: A

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Question 2
A company's trial balance shows a debit balance of ₦10,000 in the account 'Rent Received' and a credit balance of ₦5,000 in the account 'Rent Paid'. What is the correct treatment of this discrepancy?
A. The discrepancy should be treated as an error and corrected by adjusting the accounts.
B. The discrepancy should be treated as a difference between the debit and credit balances and ignored.
C. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a journal entry.
Correct D. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a correcting entry.

Correct Answer: D

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Question 3
A company's trial balance shows a debit balance of ₦20,000 in the account 'Cash' and a credit balance of ₦15,000 in the account 'Bank'. What is the correct treatment of this discrepancy?
A. The discrepancy should be treated as an error and corrected by adjusting the accounts.
B. The discrepancy should be treated as a difference between the debit and credit balances and ignored.
C. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a journal entry.
Correct D. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a correcting entry.

Correct Answer: D

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Question 4
A company's trial balance shows a debit balance of ₦30,000 in the account 'Accounts Payable' and a credit balance of ₦25,000 in the account 'Accounts Receivable'. What is the correct treatment of this discrepancy?
A. The discrepancy should be treated as an error and corrected by adjusting the accounts.
B. The discrepancy should be treated as a difference between the debit and credit balances and ignored.
C. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a journal entry.
Correct D. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a correcting entry.

Correct Answer: D

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Question 5
A company's trial balance shows a debit balance of ₦40,000 in the account 'Salaries Payable' and a credit balance of ₦35,000 in the account 'Salaries Expense'. What is the correct treatment of this discrepancy?
A. The discrepancy should be treated as an error and corrected by adjusting the accounts.
B. The discrepancy should be treated as a difference between the debit and credit balances and ignored.
C. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a journal entry.
Correct D. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a correcting entry.

Correct Answer: D

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Question 6
A company issued 10,000 9% debentures of ₦100 each on January 1, 2022. The debentures are redeemable at par after 5 years. The company pays interest half-yearly on June 30 and December 31. Calculate the amount of interest paid on December 31, 2022.
A. ₦45,000
B. ₦50,000
C. ₦55,000
Correct D. ₦60,000

Correct Answer: D

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Question 7
A company's trial balance as at December 31, 2022, showed the following balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦30,000, and Dividends ₦5,000. Prepare the company's balance sheet as at December 31, 2022.
A. ₦195,000
B. ₦200,000
Correct C. ₦205,000
D. ₦210,000

Correct Answer: C

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Question 8
A company purchased a machine for ₦120,000 on January 1, 2022. The machine has a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation for the year 2022 using the straight-line method.
A. ₦20,000
B. ₦22,000
Correct C. ₦24,000
D. ₦26,000

Correct Answer: C

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Question 9
A company issued 10,000 9% shares of ₦10 each on January 1, 2022. The shares are redeemable at par after 5 years. The company pays dividends half-yearly on June 30 and December 31. Calculate the amount of dividend paid on December 31, 2022.
A. ₦9,000
B. ₦10,000
C. ₦11,000
Correct D. ₦12,000

Correct Answer: D

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Question 10
A company's balance sheet as at December 31, 2022, showed the following balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦30,000, and Dividends ₦5,000. Prepare the company's income statement for the year ended December 31, 2022.
A. ₦195,000
B. ₦200,000
Correct C. ₦205,000
D. ₦210,000

Correct Answer: C

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Question 11
The following trial balance was extracted from the books of a government ministry. Prepare the final accounts for the year ended 31st December 2023.
A. Trading and Profit and Loss Account
Correct B. Balance Sheet
C. Statement of Changes in Equity
D. Cash Flow Statement

Correct Answer: B

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Question 12
A company's cash book shows the following transactions for the month of January 2024.
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 13
The following are the journal entries for a company for the year ended 31st December 2023.
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 14
A company's balance sheet as at 31st December 2023 is as follows.
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 15
The following are the financial statements for a company for the year ended 31st December 2023.
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 16
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. During the year, A contributes an additional ₦200,000, while B withdraws ₦50,000. The profit for the year is ₦150,000. Prepare the partnership's current account.
A. ₦250,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 17
A company uses the weighted average method to value its inventory. The following information is available for the year ended December 31, 2023:
A. ₦1,200,000
B. ₦1,500,000
Correct C. ₦1,800,000
D. ₦2,000,000

Correct Answer: C

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Question 18
A company's balance sheet as at December 31, 2023, is as follows:
A. ₦1,500,000
B. ₦2,000,000
Correct C. ₦2,500,000
D. ₦3,000,000

Correct Answer: C

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Question 19
A company's profit and loss account for the year ended December 31, 2023, is as follows:
A. ₦1,200,000
B. ₦1,500,000
Correct C. ₦1,800,000
D. ₦2,000,000

Correct Answer: C

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Question 20
A company uses the job costing method to value its work-in-progress. The following information is available for the year ended December 31, 2023:
A. ₦1,500,000
B. ₦2,000,000
Correct C. ₦2,500,000
D. ₦3,000,000

Correct Answer: C

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Question 21
The following ledger account shows the transactions of a manufacturing company for the year ended December 31, 2023. Prepare a manufacturing account for the year.
A. ₦125,000
Correct B. ₦150,000
C. ₦175,000
D. ₦200,000

Correct Answer: B

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Question 22
A company uses the single-entry system of accounting. The following transactions were recorded during the year ended December 31, 2023. Prepare a trial balance as at December 31, 2023.
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 23
The following is a diagram of a manufacturing process. Identify the type of manufacturing process shown.
Correct A. Batch Process
B. Continuous Process
C. Job Process
D. Project Process

Correct Answer: A

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Question 24
A company uses the double-entry system of accounting. The following transactions were recorded during the year ended December 31, 2023. Prepare a journal entry for the transaction.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 25
The following is a diagram of a ledger account. Identify the type of ledger account shown.
Correct A. Asset Account
B. Liability Account
C. Equity Account
D. Revenue Account

Correct Answer: A

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