POST UTME SKYLINE UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company has two partners, A and B, who share profits in the ratio 3:2. The capital of the company is divided in the ratio 5:3. If the total profit for the year is ₦120,000 and the total capital is ₦300,000, calculate the amount of profit that partner A will receive.
A. ₦36,000
B. ₦40,000
C. ₦42,000
D. ₦44,000
Question 2
A company purchased a machine for ₦500,000. Depreciation is calculated using the straight-line method. If the machine is expected to last for 5 years, what is the annual depreciation?
A. ₦100,000
B. ₦50,000
C. ₦90,000
D. ₦80,000
Question 3
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. Prepare the journal entries for the following transactions: (i) issue of debentures, (ii) interest on debentures for the first year, and (iii) redemption of debentures.
A. Debit Cash ₦450,000; Credit Debentures ₦450,000
B. Debit Debentures ₦450,000; Credit Cash ₦450,000
C. Debit Cash ₦500,000; Credit Debentures ₦500,000
D. Debit Debentures ₦500,000; Credit Cash ₦500,000
Question 4
A company has a trial balance as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦0 | | Accounts Payable | ₦0 | ₦15,000 | | Sales | ₦20,000 | ₦0 | | Cost of Goods Sold | ₦0 | ₦18,000 | | Net Income | ₦0 | ₦2,000 | Identify the error in the trial balance.
A. The debit balance of the Cash account is incorrect.
B. The credit balance of the Accounts Payable account is incorrect.
C. The debit balance of the Sales account is incorrect.
D. The credit balance of the Cost of Goods Sold account is incorrect.
Question 5
A company issued 5,000 debentures of ₦100 each at a premium of ₦10. Calculate the total amount received from the issue of debentures.
A. ₦525,000
B. ₦500,000
C. ₦550,000
D. ₦520,000
Question 6
A company has the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Bank | | 8,000 | | 3rd Jan | Cash | | 2,000 | | 4th Jan | Bank | | 1,000 | What is the balance in the cash account?
A. ₦10,000
B. ₦8,000
C. ₦2,000
D. ₦1,000
Question 7
A company uses the double-declining balance method of depreciation. If the cost of the asset is ₦150,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 8
A company's profit and loss account for the year ended 31st December 2020 is as follows:
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 9
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
D. ₦25,000
Question 10
In a partnership account, the capital of one partner is increased by ₦50,000. If the original capital of the partner was ₦200,000, what is the new capital?
A. ₦250,000
B. ₦200,000
C. ₦250,500
D. ₦200,500
Question 11
A company issued 10,000 shares of ₦10 each at a premium of ₦5. Calculate the total amount received from the issue of shares.
A. ₦105,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 12
The following transactions were recorded by a company during the year:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 13
A company has a self-balancing ledger with the following balances: Debit balance of ₦80,000 and Credit balance of ₦60,000. What is the net balance of the ledger?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 14
A company has a cash book balance of ₦50,000 and a bank balance of ₦30,000. If the bank statement balance is ₦60,000, what is the amount of the bank reconciliation difference?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 15
A company's cash book shows a debit balance of ₦25,000. The company's ledger shows a credit balance of ₦30,000 in the bank account. What is the correct journal entry to rectify the discrepancy?
A. ₦5,000 debit to bank account
B. ₦5,000 credit to bank account
C. ₦5,000 debit to cash account
D. ₦5,000 credit to cash account

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