POST UTME RHEMA UNIVERSITY 2019 Accounting | Objective

Are you preparing for POST UTME RHEMA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. What is the correct journal entry to record this transaction?
Correct A. ₦15,000 debit to Rent Received
B. ₦15,000 credit to Rent Received
C. ₦15,000 debit to Rent Paid
D. ₦15,000 credit to Rent Paid

Correct Answer: A

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Question 2
A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department has a production cost of ₦10,000 and the Assembly department has a production cost of ₦8,000. What is the total production cost of the product?
A. ₦18,000
Correct B. ₦18,500
C. ₦19,000
D. ₦20,000

Correct Answer: B

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Question 3
A company has two partners: John and Jane. John has a 60% interest in the company and Jane has a 40% interest. If the company makes a profit of ₦100,000, how much will John receive?
A. ₦60,000
Correct B. ₦80,000
C. ₦60,000
D. ₦80,000

Correct Answer: B

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Question 4
A company's bank statement shows a balance of ₦50,000. However, the company's cash book shows a balance of ₦60,000. What is the reason for the discrepancy?
A. Bank charges
B. Interest earned
C. Cheque returned
Correct D. Deposit in transit

Correct Answer: D

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Question 5
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Rent Received | ₦10,000 | | | 2 Jan | Rent Paid | | ₦8,000 | | 3 Jan | Purchase of Equipment | ₦20,000 | | What is the correct journal entry to record the purchase of equipment?
Correct A. ₦20,000 debit to Equipment
B. ₦20,000 credit to Equipment
C. ₦20,000 debit to Rent Received
D. ₦20,000 credit to Rent Paid

Correct Answer: A

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Question 6
A partnership is dissolved when a partner dies. What is the accounting treatment for the deceased partner's share of the profits?
A. The deceased partner's share of the profits is written off against the partner's capital account.
Correct B. The deceased partner's share of the profits is distributed to the remaining partners.
C. The deceased partner's share of the profits is transferred to the partner's estate.
D. The deceased partner's share of the profits is ignored.

Correct Answer: B

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Question 7
A company has the following transactions: Purchased office equipment for ₦10,000, sold goods for ₦20,000, and paid rent of ₦5,000. What is the total amount of expenses?
Correct A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 8
A company has the following balance sheet: Assets ₦100,000, Liabilities ₦50,000, and Equity ₦50,000. What is the ratio of debt to equity?
A. 1:1
Correct B. 2:1
C. 3:1
D. 4:1

Correct Answer: B

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Question 9
A company uses the straight-line method of depreciation. If the asset's cost is ₦50,000 and its useful life is 5 years, what is the annual depreciation?
A. ₦10,000
Correct B. ₦12,500
C. ₦15,000
D. ₦17,500

Correct Answer: B

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Question 10
A company has the following transactions: Purchased office equipment for ₦10,000, sold goods for ₦20,000, and paid rent of ₦5,000. What is the total amount of revenue?
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 11
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 12
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦15,000 | | 3rd Jan | Cash | | ₦5,000 | | 4th Jan | Bank | ₦20,000 | | | 5th Jan | Cash | | ₦8,000 | What is the balance in the cash book?
A. ₦3,000
B. ₦5,000
C. ₦7,000
Correct D. ₦9,000

Correct Answer: D

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Question 13
A company purchased a machine for ₦120,000. It is expected to have a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation 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 14
A company issued 10,000 shares of ₦10 each at a premium of 50%. The company's profit for the year is ₦500,000. Calculate the amount of dividend to be paid to the shareholders.
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

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Question 15
A company's balance sheet shows the following: | Assets | ₦1,000,000 | | Liabilities | ₦500,000 | | Share Capital | ₦300,000 | | Retained Earnings | ₦200,000 | What is the company's net worth?
A. ₦1,000,000
Correct B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: B

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦25,000
B. ₦50,000
Correct C. ₦75,000
D. ₦100,000

Correct Answer: C

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Question 17
A company's balance sheet as at 31st December 2022 is as follows: Equity Share Capital ₦500,000, Profit and Loss Account ₦200,000. If the company issues 10% debentures of ₦100 each at a premium of 10%, calculate the amount of premium on the debentures.
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 18
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales ₦500,000, Cost of Goods Sold ₦300,000, Operating Expenses ₦100,000. Calculate the company's net profit for the year.
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 19
A company's balance sheet as at 31st December 2022 is as follows: Equity Share Capital ₦500,000, Profit and Loss Account ₦200,000. If the company issues 10% debentures of ₦100 each at a discount of 5%, calculate the amount of discount on the debentures.
A. ₦25,000
B. ₦50,000
Correct C. ₦75,000
D. ₦100,000

Correct Answer: C

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Question 20
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales ₦500,000, Cost of Goods Sold ₦300,000, Operating Expenses ₦100,000. Calculate the company's gross profit for the year.
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 21
A public sector organization has a cash book account with a debit balance of ₦1,500,000. The cash book shows a credit balance of ₦800,000 in the bank account. The bank statement shows a debit balance of ₦1,200,000. What is the correct journal entry to reconcile the cash book and bank statement?
A. ₦1,500,000 debit to Cash and ₦1,200,000 credit to Bank
B. ₦1,200,000 debit to Bank and ₦800,000 credit to Cash
Correct C. ₦1,500,000 debit to Bank and ₦800,000 credit to Cash
D. ₦1,200,000 debit to Cash and ₦800,000 credit to Bank

Correct Answer: C

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Question 22
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 5,000 debentures of ₦100 each. What is the total amount received from the issue of shares and debentures?
A. ₦1,050,000
Correct B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000

Correct Answer: B

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Question 23
A company's trial balance shows a credit balance of ₦50,000 in the account 'Rent Received'. However, the company's cash book shows a debit balance of ₦20,000 in the account 'Rent Received'. What is the correct journal entry to eliminate the discrepancy?
Correct A. ₦30,000 debit to Rent Received and ₦30,000 credit to Cash
B. ₦20,000 debit to Rent Received and ₦20,000 credit to Cash
C. ₦50,000 debit to Rent Received and ₦50,000 credit to Cash
D. ₦30,000 debit to Cash and ₦30,000 credit to Rent Received

Correct Answer: A

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Question 24
A company's bank statement shows a debit balance of ₦1,500,000. The company's cash book shows a credit balance of ₦800,000 in the bank account. What is the correct journal entry to reconcile the cash book and bank statement?
Correct A. ₦1,500,000 debit to Bank and ₦800,000 credit to Cash
B. ₦1,200,000 debit to Bank and ₦800,000 credit to Cash
C. ₦1,500,000 debit to Cash and ₦800,000 credit to Bank
D. ₦1,200,000 debit to Cash and ₦800,000 credit to Bank

Correct Answer: A

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Question 25
A company issues 5,000 shares of ₦10 each at a premium of ₦5 per share. The company also issues 2,000 debentures of ₦100 each. What is the total amount received from the issue of shares and debentures?
A. ₦105,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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