POST UTME REDEEMERS UNIVERSITY 2025 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 2025 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 5,000 shares of ₦10 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
Correct B. ₦52,500
C. ₦55,000
D. ₦57,500

Correct Answer: B

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Question 2
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 1,000 | | | 2 Jan | Bank | | 1,000 | | 3 Jan | Cash | 500 | | | 4 Jan | Bank | | 500 | What is the balance in the cash book?
Correct A. ₦00
B. ₧00
C. ₨00
D. ₩00

Correct Answer: A

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Question 3
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Sales | 10,000 | | | Purchases | | 8,000 | | Wages | 2,000 | | | Rent | | 1,000 | What is the total amount of assets?
A. ₡20,000
B. ₡30,000
Correct C. ₡40,000
D. ₡50,000

Correct Answer: C

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Question 4
A company's manufacturing account shows the following information: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Raw Materials | 10,000 | | | 2 Jan | Labour | | 5,000 | | 3 Jan | Factory Overheads | | 3,000 | What is the total cost of production?
A. ₡8,000
B. ₢0,000
Correct C. ₢2,000
D. ₢4,000

Correct Answer: C

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Question 5
A company's departmental accounts show the following information: | Department | Sales | Cost of Goods Sold | | --- | --- | --- | | A | 10,000 | 8,000 | | B | | 6,000 | What is the total profit of the company?
A. ₢,000
B. ₤,000
Correct C. ₦,000
D. ₨,000

Correct Answer: C

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Question 6
A company uses the double-entry system of accounting. The following transactions were recorded during the month of January: Purchased office supplies for ₦10,000 cash. Sold goods for ₦50,000 on credit. Purchased a machine for ₦80,000 on credit. What is the total amount of assets recorded in the ledger at the end of January?
A. ₦90,000
Correct B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: B

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Question 7
A company's balance sheet as at December 31, 2024, is as follows: Assets ₦200,000, Liabilities ₦100,000, Equity ₦100,000. If the company issues 10,000 shares of ₦10 each at a premium of ₦5 per share, what is the new equity?
A. ₦150,000
B. ₦160,000
C. ₦170,000
Correct D. ₦180,000

Correct Answer: D

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Question 8
A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If the asset cost ₦100,000 and has a useful life of 5 years, what is the annual depreciation?
A. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 9
A company's trial balance as at December 31, 2024, is as follows: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Retained Earnings ₦50,000. If the company issues 5,000 shares of ₦10 each at a premium of ₦5 per share, what is the new common stock?
A. ₦125,000
B. ₦130,000
C. ₦135,000
Correct D. ₦140,000

Correct Answer: D

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Question 10
A company's balance sheet as at December 31, 2024, is as follows: Assets ₦200,000, Liabilities ₦100,000, Equity ₦100,000. If the company issues 10,000 shares of ₦10 each at a premium of ₦5 per share, what is the new equity?
A. ₦150,000
B. ₦160,000
C. ₦170,000
Correct D. ₦180,000

Correct Answer: D

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Question 11
A company uses the single-entry system of accounting. The following transactions were recorded during the year:
A. ₦1,000,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,500,000

Correct Answer: B

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Question 12
A manufacturing company produces two products, A and B. The following data were collected for the month of January:
A. ₦120,000
B. ₦180,000
Correct C. ₦240,000
D. ₦300,000

Correct Answer: C

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Question 13
A company uses the straight-line method of depreciation. The following data were collected for the year:
A. ₦60,000
Correct B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: B

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Question 14
A company uses the percentage of completion method of accounting for construction contracts. The following data were collected for the year:
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 15
A company uses the FIFO method of inventory valuation. The following data were collected for the year:
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 16
A public sector organization has a capital project with a total cost of ₦500 million. The project is expected to last for 5 years. If the organization uses the straight-line method of depreciation, what is the annual depreciation charge?
Correct A. ₦100 million
B. ₦80 million
C. ₦60 million
D. ₦40 million

Correct Answer: A

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Question 17
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦1.2 million, what is the share of profit for partner A?
Correct A. ₦600,000
B. ₦400,000
C. ₦300,000
D. ₦200,000

Correct Answer: A

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Question 18
A manufacturing company uses a job costing system. The company has a direct material cost of ₦150,000 and a direct labor cost of ₦200,000 for a particular job. If the company uses the weighted average method of inventory valuation, what is the total cost of the job?
A. ₦350,000
B. ₦400,000
Correct C. ₦450,000
D. ₦500,000

Correct Answer: C

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Question 19
A company has a machine that cost ₦500,000 and has a useful life of 5 years. If the company uses the straight-line method of depreciation, what is the annual depreciation charge?
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 20
A company has a department that produces a product with a selling price of ₦200,000, a variable cost of ₦150,000, and a fixed cost of ₦50,000. If the company sells 2,000 units of the product, what is the total contribution margin?
A. ₦300,000
Correct B. ₦400,000
C. ₦500,000
D. ₦600,000

Correct Answer: B

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Question 21
A company issued 5,000 shares of 10 par value at a premium of 2 per share. If the issue was underwritten by a broker at a commission of 5% on the premium, what is the total amount received by the company?
A. ₦250,000
B. ₦300,000
C. ₦350,000
Correct D. ₦400,000

Correct Answer: D

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Question 22
A company's trial balance showed an error of 1,000 in the accounts payable account. The correct balance should have been 20,000. What is the effect of this error on the company's net income?
A. ₦10,000 increase
Correct B. ₦10,000 decrease
C. ₦20,000 increase
D. ₦20,000 decrease

Correct Answer: B

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Question 23
A company's manufacturing account showed the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Raw Materials | 10,000 | | | 2 | Labour | 5,000 | | | 3 | Overheads | 3,000 | | | 4 | Work-in-Progress | | 18,000 | What is the total cost of production?
A. ₦18,000
B. ₦21,000
Correct C. ₦24,000
D. ₦27,000

Correct Answer: C

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Question 24
A company's ledger showed the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | 5,000 | | | Accounts Payable | | 10,000 | | Share Capital | | 20,000 | What is the total amount of the company's assets?
A. ₦25,000
B. ₦30,000
C. ₦35,000
Correct D. ₦40,000

Correct Answer: D

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Question 25
A company issued 10,000 shares of 1 par value at a premium of 2 per share. If the issue was underwritten by a broker at a commission of 5% on the premium, what is the total amount received by the company?
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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