POST UTME RHEMA UNIVERSITY 2021 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 2021 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 20,000
Correct B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000

Correct Answer: B

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Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₦ 50,000 and ₦ 30,000 respectively. If the profit for the year is ₦ 20,000, and A's share of profit is 60%, calculate the amount of profit to be distributed to A.
Correct A. ₦ 12,000
B. ₦ 15,000
C. ₦ 18,000
D. ₦ 20,000

Correct Answer: A

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Question 3
A company issued 5% debentures of ₦ 1,000 each at a premium of 10%. Calculate the total amount received from the issue of debentures.
A. ₦ 55,000
B. ₦ 60,000
Correct C. ₦ 65,000
D. ₦ 70,000

Correct Answer: C

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Question 4
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | Calculate the balance of cash at the end of the year.
Correct A. ₦ 1,200
B. ₦ 1,500
C. ₦ 1,800
D. ₦ 2,000

Correct Answer: A

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Question 5
A company's bank statement shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Bank | 1,000 | | | 2nd Jan | Cash | | 500 | | 3rd Jan | Bank | | 800 | Calculate the balance of bank at the end of the year.
Correct A. ₦ 1,200
B. ₦ 1,500
C. ₦ 1,800
D. ₦ 2,000

Correct Answer: A

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Question 6
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦450,000
B. ₦475,000
Correct C. ₦500,000
D. ₦525,000

Correct Answer: C

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Question 7
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,000 | | | 2nd Jan | Bank | | ₦800 | | 3rd Jan | Cash | ₦200 | | | 4th Jan | Bank | | ₦300 | What is the balance in the cash account?
A. ₦1,200
Correct B. ₦1,400
C. ₦1,600
D. ₦1,800

Correct Answer: B

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Question 8
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦1,000 | | | Bank | | ₦800 | | Accounts Payable | ₦200 | | | Sales Revenue | | ₦1,200 | What is the total amount of assets?
A. ₦2,100
B. ₦2,200
Correct C. ₦2,300
D. ₦2,400

Correct Answer: C

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Question 9
A company's balance sheet shows the following balances: | Asset | Liability | Equity | | --- | --- | --- | | ₦1,000 | ₦800 | ₦1,200 | What is the total amount of liabilities?
A. ₦1,600
Correct B. ₦1,800
C. ₦2,000
D. ₦2,100

Correct Answer: B

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Question 10
A company's profit and loss account shows the following balances: | Revenue | Expense | Profit | | --- | --- | --- | | ₦1,200 | ₦800 | ₦400 | What is the net profit?
Correct A. ₦400
B. ₦600
C. ₦800
D. ₦1,000

Correct Answer: A

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Question 11
A company has a capital of ₦1,500,000, divided into 150,000 ordinary shares of ₦10 each. If the company issues 20% of its shares at a premium of ₦5 per share, calculate the amount received from the issue of shares.
A. ₦300,000
Correct B. ₦375,000
C. ₦450,000
D. ₦525,000

Correct Answer: B

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Question 12
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦240,000, calculate the share of profit of partner A.
Correct A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦200,000

Correct Answer: A

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Question 13
A company's trading account for the year shows a profit of ₦500,000. The company's profit and loss account shows a net profit of ₦750,000. Calculate the company's capital reserve.
Correct A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: A

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Question 14
A company's balance sheet shows a total asset value of ₦1,200,000 and a total liability value of ₦800,000. Calculate the company's equity.
A. ₦400,000
B. ₦500,000
Correct C. ₦600,000
D. ₦700,000

Correct Answer: C

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Question 15
A company issues 10% debentures of ₦100 each at a premium of ₦10 per debenture. If the company issues 1,000 debentures, calculate the total amount received from the issue of debentures.
A. ₦1,100,000
Correct B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: B

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Question 16
A company uses the cash book to record all its financial transactions. The cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. What is the reason for the difference?
A. The company has not recorded all its financial transactions.
B. The bank has charged a fee for the overdraft.
Correct C. The company has not reconciled its cash book with the bank statement.
D. The company has not recorded a deposit made by a customer.

Correct Answer: C

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Question 17
A company prepares a trial balance but discovers that the total debit balance is ₦50,000 more than the total credit balance. What is the reason for this discrepancy?
Correct A. There is an error in the preparation of the trial balance.
B. There is an error in the posting of transactions to the ledger accounts.
C. There is an error in the calculation of the total debit and credit balances.
D. The company has not recorded all its financial transactions.

Correct Answer: A

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Question 18
A company uses the single entry system to record its financial transactions. The company's cash book shows a balance of ₦80,000. However, the company's bank statement shows a balance of ₦100,000. What is the reason for the difference?
A. The company has not recorded all its financial transactions.
B. The bank has charged a fee for the overdraft.
Correct C. The company has not reconciled its cash book with the bank statement.
D. The company has not recorded a deposit made by a customer.

Correct Answer: C

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Question 19
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦200,000 and a useful life of 5 years. What is the annual depreciation charge?
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦80,000

Correct Answer: B

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Question 20
A company uses the double-declining balance method to depreciate its assets. The asset has a cost of ₦300,000 and a useful life of 5 years. What is the annual depreciation charge?
A. ₦60,000
B. ₦70,000
Correct C. ₦80,000
D. ₦90,000

Correct Answer: C

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Question 21
A company has two departments, A and B. Department A has a balance of ₦100,000 in its control account, and department B has a balance of ₦50,000. The total balance of the company's control account is ₦200,000. What is the balance of department A's control account after adjusting entries are made?
Correct A. ₦150,000
B. ₦120,000
C. ₦100,000
D. ₦80,000

Correct Answer: A

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Question 22
A company has the following transactions: Purchased office supplies for ₦10,000, paid salaries of ₦20,000, and purchased equipment for ₦30,000. What is the total amount of cash outflows?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 23
A company has the following balance sheet: Assets ₦100,000, Liabilities ₦50,000, and Equity ₦50,000. What is the company's net worth?
A. ₦0
Correct B. ₦50,000
C. ₦100,000
D. ₦150,000

Correct Answer: B

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Question 24
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
Correct D. ₦25,000

Correct Answer: D

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Question 25
A company has the following transactions: Purchased office supplies for ₦10,000, paid salaries of ₦20,000, and purchased equipment for ₦30,000. What is the total amount of cash inflows?
A. ₦0
Correct B. ₦10,000
C. ₦20,000
D. ₦30,000

Correct Answer: B

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