POST UTME REDEEMERS UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
The following is a diagram of a ledger account. Identify the type of ledger account shown.
A. Asset Account
B. Liability Account
C. Equity Account
D. Revenue Account
Question 2
A government agency has a budget of ₦500,000 for the year. The agency has already spent ₦300,000 on salaries and ₦100,000 on rent. Calculate the amount of money left in the budget.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 3
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
D. ₦60,000
Question 4
A company has a share capital of ₦1,000,000 divided into 10,000 shares of ₦100 each. The company issues 2,000 shares at a premium of ₦20 per share. Calculate the amount of premium received.
A. ₦40,000
B. ₦80,000
C. ₦120,000
D. ₦160,000
Question 5
A company's balance sheet as at 31st December 2023 is as follows.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 6
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
C. ₦24,000
D. ₦26,000
Question 7
A company has a share capital of ₦500,000 divided into 5,000 shares of ₦100 each. The company issues 1,000 shares at a premium of ₦10 per share. Calculate the amount of premium received.
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 8
A company's trial balance showed the following balances: Machinery ₦ 50,000, Accrued Expenses ₦ 20,000, and Drawings ₦ 10,000. The company's accountant prepared the following journal entry: Machinery ₦ 5,000, Accrued Expenses ₦ 5,000, and Drawings ₦ 5,000. What is the correct adjustment to the Accrued Expenses account?
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000
Question 9
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.
D. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a correcting entry.
Question 10
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
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 11
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
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 12
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?
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.
Question 13
A company issued 5,000 debentures of ₦ 100 each at a discount of ₦ 5 per debenture. The company's debenture account was credited with ₦ 450,000. What is the amount of the discount on the debentures?
A. ₦ 25,000
B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000
Question 14
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. If the profit for the year is ₦60,000, how much will A receive as his share of the profit?
A. ₦36,000
B. ₦40,000
C. ₦42,000
D. ₦44,000
Question 15
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
D. ₦12,000

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