POST UTME SKYLINE UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 5,000. Prepare the journal entry for the issue of shares.
A. Debit Share Capital £ 50,000, Credit Share Premium £ 50,000, Credit Issue Expenses £ 5,000
B. Debit Share Capital £ 50,000, Credit Share Premium £ 45,000, Credit Issue Expenses £ 5,000
C. Debit Share Capital £ 55,000, Credit Share Premium £ 50,000, Credit Issue Expenses £ 5,000
D. Debit Share Capital £ 55,000, Credit Share Premium £ 45,000, Credit Issue Expenses £ 5,000
Question 2
A company uses the double-entry system of accounting. If the company's trial balance shows a debit balance of ₦5,000 in the 'Rent and Utilities' account, what is the corresponding credit entry in the 'Cash' account?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 3
A company has the following transactions: Purchased goods for £ 10,000, Sold goods for £ 15,000, Paid cash £ 5,000. Prepare the journal entries for the transactions.
A. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Cash £ 5,000, Credit Purchases £ 5,000
B. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Cash £ 5,000, Credit Sales £ 5,000
C. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Cash £ 5,000, Credit Purchases £ 5,000
D. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Cash £ 5,000, Credit Sales £ 5,000
Question 4
A company's balance sheet shows the following accounts: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the total amount of liabilities and equity?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 5
A company's cash book shows a balance of £ 1,500. The bank statement shows a balance of £ 2,000. The company's cash book shows a debit balance of £ 800. What is the correct balance of the company's cash book?
A. £ 1,300
B. £ 1,500
C. £ 1,700
D. £ 2,000
Question 6
A firm's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | | 4th Jan | Bank | | 1,200 | What is the balance of the firm's cash book?
A. ₦1,200
B. ₦1,800
C. ₦2,000
D. ₦2,200
Question 7
A company's balance sheet shows a decrease in the 'Equipment' account from ₦100,000 to ₦80,000. What is the corresponding decrease in the 'Depreciation Expense' account?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 8
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a bank error. Calculate the amount of the bank error.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 9
A company has a manufacturing account with a cost of goods sold of ₦100,000. The company also has a selling price of ₦120,000. What is the gross profit of the company?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 10
A company has the following ledger balances: Cash £ 10,000, Debtors £ 20,000, Creditors £ 15,000. Prepare the trial balance.
A. Cash £ 10,000, Debtors £ 20,000, Creditors £ 15,000
B. Cash £ 25,000, Debtors £ 5,000, Creditors £ 10,000
C. Cash £ 5,000, Debtors £ 25,000, Creditors £ 10,000
D. Cash £ 10,000, Debtors £ 5,000, Creditors £ 25,000
Question 11
A company's balance sheet shows a decrease in the 'Accounts Payable' account from ₦50,000 to ₦30,000. What is the corresponding increase in the 'Cash' account?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 12
A company has the following ledger balances: Capital £ 20,000, Profit £ 10,000. Prepare the balance sheet.
A. Capital £ 20,000, Profit £ 10,000
B. Capital £ 30,000, Profit £ 0
C. Capital £ 0, Profit £ 30,000
D. Capital £ 20,000, Profit £ 30,000
Question 13
A company's cash book shows a balance of ₦180,000. However, the bank statement shows a balance of ₦160,000. The difference is due to a bank error. Calculate the amount of the bank error.
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 14
A company's trial balance shows a debit balance of ₦20,000 in the 'Rent and Utilities' account. What is the corresponding credit entry in the 'Accrued Expenses' account?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 15
A partnership firm's capital accounts are as follows: | Partner | Capital | Drawing | Balance | | --- | --- | --- | --- | | A | 10,000 | 2,000 | 8,000 | | B | 8,000 | 1,500 | 6,500 | | C | 12,000 | 3,000 | 9,000 | What is the total profit sharing ratio of the partners?
A. 3:2:4
B. 4:3:2
C. 2:3:4
D. 4:2:3

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