Practice Post UTME SKYLINE UNIVERSITY accounting 2023 Past Questions

Question 1

A company's trial balance shows a debit balance of ₦50,000 in the accounts receivable account. However, the company's accountant has informed you that the correct balance should be a credit balance of ₦20,000. What is the correct journal entry to correct this error?

A. ₦50,000 debit to accounts receivable, ₦20,000 credit to accounts receivable

Correct B. ₦20,000 debit to accounts receivable, ₦50,000 credit to accounts receivable

C. ₦50,000 credit to accounts receivable, ₦20,000 debit to accounts receivable

D. ₦20,000 credit to accounts receivable, ₦50,000 debit to accounts receivable

Correct Answer: B

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Question 2

A company uses the single-entry system of accounting. The company's journal entries for the year are as follows: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 10,000 | | | 1/15 | Accounts Payable | | 5,000 | | 2/1 | Sales | | 15,000 | | 3/1 | Rent Expense | | 2,000 | What is the company's net income for the year?

Correct A. ₦17,000

B. ₦12,000

C. ₦22,000

D. ₦27,000

Correct Answer: A

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Question 3

A company uses the double-entry system of accounting. The company's journal entries for the year are as follows: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 10,000 | | | 1/15 | Accounts Payable | | 5,000 | | 2/1 | Sales | | 15,000 | | 3/1 | Rent Expense | | 2,000 | What is the company's net income for the year?

Correct A. ₦17,000

B. ₦12,000

C. ₦22,000

D. ₦27,000

Correct Answer: A

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Question 4

A company's assets are valued at ₦100,000. The company's accountant has informed you that the correct value should be ₦120,000. What is the correct journal entry to correct this error?

Correct A. ₦20,000 debit to assets, ₦20,000 credit to equity

B. ₦20,000 credit to assets, ₦20,000 debit to equity

C. ₦20,000 debit to assets, ₦20,000 credit to revenue

D. ₦20,000 credit to assets, ₦20,000 debit to revenue

Correct Answer: A

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Question 5

A company's assets are valued at ₦100,000. The company's accountant has informed you that the correct value should be ₦120,000. What is the correct journal entry to correct this error?

Correct A. ₦20,000 debit to assets, ₦20,000 credit to equity

B. ₦20,000 credit to assets, ₦20,000 debit to equity

C. ₦20,000 debit to assets, ₦20,000 credit to revenue

D. ₦20,000 credit to assets, ₦20,000 debit to revenue

Correct Answer: A

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Question 6

A company has two departments: Manufacturing and Sales. The Manufacturing department has a budget of ₦1,500,000, and the Sales department has a budget of ₦2,000,000. If the company's total budget is ₦3,500,000, what is the ratio of the Manufacturing department's budget to the Sales department's budget?

Correct A. 1:2

B. 2:3

C. 3:4

D. 4:5

Correct Answer: A

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Question 7

A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦1,500,000, what is the amount received from the issue of shares?

A. ₦1,000,000

B. ₦1,200,000

Correct C. ₦1,500,000

D. ₦1,800,000

Correct Answer: C

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Question 8

A company has a balance sheet as follows: Assets ₦3,000,000, Liabilities ₦1,500,000, and Equity ₦1,500,000. What is the company's current ratio?

A. 1:1

Correct B. 2:1

C. 3:1

D. 4:1

Correct Answer: B

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Question 9

A company has a profit and loss account as follows: Sales ₦5,000,000, Cost of Goods Sold ₦3,000,000, and Gross Profit ₦2,000,000. What is the company's net profit?

A. ₦1,000,000

B. ₦1,500,000

Correct C. ₦2,000,000

D. ₦2,500,000

Correct Answer: C

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Question 10

A company has a self-balancing ledger as follows: Debit ₦2,000,000, Credit ₦2,000,000. What is the company's net worth?

A. ₦0

B. ₦1,000,000

Correct C. ₦2,000,000

D. ₦3,000,000

Correct Answer: C

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Question 11

A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the profit for the year is ₦250,000, how much will A receive?

Correct A. ₦225,000

B. ₦175,000

C. ₦225,000

D. ₦175,000

Correct Answer: A

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Question 12

A company maintains a cash book and a general ledger. The cash book shows a balance of ₦150,000, while the general ledger shows a balance of ₦200,000. What is the reason for the difference?

A. The cash book is not up-to-date

B. The general ledger is not up-to-date

Correct C. The cash book and general ledger are not reconciled

D. The cash book and general ledger are reconciled

Correct Answer: C

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Question 13

A company prepares a trial balance, which shows the following balances: Account A: ₦100,000, Account B: ₦200,000, Account C: ₦300,000. What is the total of the trial balance?

Correct A. ₦600,000

B. ₦700,000

C. ₦800,000

D. ₦900,000

Correct Answer: A

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Question 14

A company uses a double-entry system, where every transaction is recorded in two or more accounts. What is the purpose of this system?

Correct A. To ensure accuracy and completeness of financial records

B. To simplify financial reporting

C. To reduce the number of accounts

D. To increase the number of accounts

Correct Answer: A

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Question 15

A company uses a self-balancing ledger, where every debit is matched by a corresponding credit. What is the purpose of this ledger?

Correct A. To ensure accuracy and completeness of financial records

B. To simplify financial reporting

C. To reduce the number of accounts

D. To increase the number of accounts

Correct Answer: A

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Question 16

A company issued 5,000, 10% debentures of ₦100 each on January 1, 2022. The debentures are redeemable at par on January 1, 2027. Interest is payable half-yearly on June 30 and December 31. Calculate the amount of interest payable on December 31, 2023.

A. ₦25,000

B. ₦50,000

Correct C. ₦75,000

D. ₦100,000

Correct Answer: C

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Question 17

A partnership is formed by three partners, A, B, and C, with capital contributions of ₦200,000, ₦300,000, and ₦400,000 respectively. The profit-sharing ratio is 2:3:4. Calculate the total profit for the year ended December 31, 2022, if the total profit is ₦1,200,000.

A. ₦600,000

B. ₦800,000

C. ₦1,000,000

Correct D. ₦1,200,000

Correct Answer: D

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Question 18

A company's cash book shows the following transactions: ₦10,000 cash received from customers; ₦5,000 cash paid to suppliers; ₦8,000 bank deposit; ₦3,000 bank withdrawal. Prepare the cash book and bank reconciliation statement as at December 31, 2022.

A. ₦12,000

B. ₦15,000

Correct C. ₦18,000

D. ₦20,000

Correct Answer: C

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Question 19

A company's trial balance as at December 31, 2022, shows the following: ₦100,000 debit balance in the trading account; ₦50,000 credit balance in the profit and loss account; ₦20,000 debit balance in the drawings account. Prepare the company's balance sheet as at December 31, 2022.

A. ₦150,000

B. ₦200,000

C. ₦250,000

Correct D. ₦300,000

Correct Answer: D

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Question 20

A company's single entry system shows the following transactions: ₦10,000 cash received from customers; ₦5,000 cash paid to suppliers; ₦8,000 bank deposit; ₦3,000 bank withdrawal. Prepare the company's ledger accounts as at December 31, 2022.

A. ₦12,000

B. ₦15,000

Correct C. ₦18,000

D. ₦20,000

Correct Answer: C

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Question 21

A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 2,000. Prepare the journal entry to record the issue of shares.

Correct A. Debit Share Capital £ 5,500, Credit Cash £ 5,000, Credit Share Premium £ 2,500, Debit Issue Expenses £ 2,000

B. Debit Share Capital £ 5,000, Credit Cash £ 5,000, Credit Share Premium £ 2,500, Debit Issue Expenses £ 2,000

C. Debit Share Capital £ 5,500, Credit Cash £ 5,000, Debit Share Premium £ 2,500, Credit Issue Expenses £ 2,000

D. Debit Share Capital £ 5,000, Credit Cash £ 5,000, Debit Share Premium £ 2,000, Credit Issue Expenses £ 2,000

Correct Answer: A

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Question 22

A company purchased a machine for £ 10,000. The machine is expected to have a useful life of 5 years and a residual value of £ 1,000. Calculate the annual depreciation using the straight-line method.

Correct A. £ 1,800

B. £ 1,900

C. £ 2,000

D. £ 2,100

Correct Answer: A

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Question 23

A company has the following transactions: Purchased goods for £ 5,000 on credit, Sold goods for £ 6,000 on credit, and Paid cash £ 2,000 to a creditor. Prepare the ledger accounts for the company.

Correct A. Debit Purchases £ 5,000, Credit Cash £ 5,000, Debit Sales £ 6,000, Credit Cash £ 6,000, Debit Cash £ 2,000, Credit Creditor £ 2,000

B. Debit Purchases £ 5,000, Credit Cash £ 5,000, Debit Sales £ 6,000, Credit Cash £ 6,000, Debit Creditor £ 2,000, Credit Cash £ 2,000

C. Debit Purchases £ 5,000, Credit Cash £ 5,000, Debit Sales £ 6,000, Credit Cash £ 6,000, Debit Creditor £ 2,000, Credit Purchases £ 2,000

D. Debit Purchases £ 5,000, Credit Cash £ 5,000, Debit Sales £ 6,000, Credit Cash £ 6,000, Debit Purchases £ 2,000, Credit Creditor £ 2,000

Correct Answer: A

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Question 24

A company has the following transactions: Purchased goods for £ 5,000 on credit, Sold goods for £ 6,000 on credit, and Paid cash £ 2,000 to a creditor. Prepare the cash book for the company.

Correct A. Cash Book: Purchases £ 5,000, Sales £ 6,000, Cash £ 2,000

B. Cash Book: Purchases £ 5,000, Sales £ 6,000, Creditor £ 2,000

C. Cash Book: Purchases £ 5,000, Sales £ 6,000, Cash £ 4,000

D. Cash Book: Purchases £ 5,000, Sales £ 6,000, Creditor £ 4,000

Correct Answer: A

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Question 25

A company has the following transactions: Purchased goods for £ 5,000 on credit, Sold goods for £ 6,000 on credit, and Paid cash £ 2,000 to a creditor. Prepare the bank reconciliation statement for the company.

Correct A. Bank Reconciliation Statement: Cash £ 2,000, Creditor £ 4,000

B. Bank Reconciliation Statement: Cash £ 4,000, Creditor £ 2,000

C. Bank Reconciliation Statement: Cash £ 2,000, Bank £ 4,000

D. Bank Reconciliation Statement: Cash £ 4,000, Bank £ 2,000

Correct Answer: A

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