POST UTME SKYLINE UNIVERSITY 2020 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's balance sheet as of December 31, 2020, is as follows:
Assets
Cash ₦50,000
Accounts Receivable ₦30,000
Inventory ₦20,000
Total Assets ₦100,000
Liabilities
Accounts Payable ₦10,000
Salaries Payable ₦20,000
Total Liabilities ₦30,000
What is the total equity?
Question 2
A company uses the double entry system to record transactions. If the company's assets increase by ₦10,000 and its liabilities increase by ₦8,000, what is the effect on the company's equity?
Question 3
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' while the corresponding credit balance in the account 'Rent Paid' is ₦20,000. What is the correct journal entry to rectify this error?
Question 4
A company's assets are valued as follows: Buildings ₦500,000, Machinery ₦300,000, Vehicles ₦100,000. The company uses the straight-line method of depreciation. Calculate the annual depreciation for each asset.
Question 5
A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
Question 6
A company's profit for the year ended 31st December 2019 was ₦1,800,000. The company's capital was ₦600,000 and the drawings of the proprietor were ₦60,000. Calculate the proprietor's capital at the end of the year.
Question 7
A company maintains a cash book and bank reconciliation statement. The cash book balance is ₦150,000 and the bank statement balance is ₦180,000. The bank charges a service fee of ₦1,500 and the company has an outstanding deposit of ₦10,000. Calculate the bank reconciliation difference.
Question 8
A company's cash book shows the following transactions:
| Date | Particulars | Debit | Credit |
| --- | --- | --- | --- |
| 1 Jan | Cash | ₦10,000 | |
| 2 Jan | Bank | | ₦15,000 |
| 3 Jan | Cash | | ₦5,000 |
| 4 Jan | Bank | ₦20,000 | |
| 5 Jan | Cash | | ₦8,000 |
Prepare the cash book and bank reconciliation statement.
Question 9
A company's income statement for the year ended December 31, 2020, is as follows:
Sales ₦500,000
Cost of Goods Sold ₦250,000
Gross Profit ₦250,000
Operating Expenses ₦100,000
Net Income ₦150,000
What is the gross profit margin?
Question 10
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The shares were subscribed for by the public for £ 1.50 per share. Calculate the amount received from the public and the amount to be credited to the share capital account.
Question 11
A company's cash book shows the following transactions:
| Date | Particulars | Debit | Credit |
| --- | --- | --- | --- |
| 1 Jan | Cash | ₦10,000 | |
| 2 Jan | Bank | | ₦15,000 |
| 3 Jan | Cash | | ₦5,000 |
| 4 Jan | Bank | ₦20,000 | |
| 5 Jan | Cash | | ₦8,000 |
Prepare the cash book and bank reconciliation statement.
Question 12
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 5 years and a cost of ₦50,000, what is the annual depreciation expense?
Question 13
A company uses the single-entry system of accounting. The company's assets, liabilities, and equity are ₦100,000, ₦50,000, and ₦30,000 respectively. Calculate the company's net worth.
Question 14
A company's trial balance as of December 31, 2020, is as follows:
Debit
Accounts Payable ₦10,000
Salaries Expense ₦20,000
Rent Expense ₦15,000
Utilities Expense ₦5,000
Credit
Cash ₦50,000
Accounts Receivable ₦30,000
Common Stock ₦100,000
Retained Earnings ₦80,000
What is the correct balance in the Retained Earnings account?
Question 15
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum using the straight-line method. Calculate the depreciation for the first year.
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