POST UTME SKYLINE UNIVERSITY 2024 Accounting | Objective

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Question 1
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. The proceeds from the issue of shares are used to purchase a machine for ₦500,000. The company also issues a debenture of ₦200,000 at 10% interest per annum. Prepare the journal entries for the issue of shares and the purchase of the machine.
A. Debit Share Capital ₦500,000, Credit Cash ₦500,000
B. Debit Share Capital ₦500,000, Credit Machine ₦500,000
C. Debit Cash ₦500,000, Credit Machine ₦500,000
D. Debit Share Capital ₦500,000, Credit Machine ₦500,000
Question 2
A company's balance sheet shows an asset of ₦100,000 and a liability of ₦80,000. What is the company's equity?
A. ₦20,000
B. ₦80,000
C. ₦100,000
D. ₦120,000
Question 3
A company's trial balance shows an error of ₦10,000. The error is due to an omission of a transaction. Prepare the necessary journal entry to rectify the error.
A. Debit Cash ₦10,000, Credit Profit and Loss Account ₦10,000
B. Debit Profit and Loss Account ₦10,000, Credit Cash ₦10,000
C. Debit Profit and Loss Account ₦10,000, Credit Capital Account ₦10,000
D. Debit Capital Account ₦10,000, Credit Profit and Loss Account ₦10,000
Question 4
A company has the following transactions: Purchased goods for ₦100,000 on credit. Sold goods for ₦120,000 on credit. Paid cash for rent of ₦10,000. Paid cash for wages of ₦20,000. Calculate the net profit.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 5
A company's trial balance showed an error of ₦5,000 due to an incorrect posting of a sale. The error was discovered when the company's accountant prepared the financial statements. What is the correct journal entry to rectify the error?
A. Debit Sales A/c ₦5,000, Credit Profit & Loss A/c ₦5,000
B. Debit Profit & Loss A/c ₦5,000, Credit Sales A/c ₦5,000
C. Debit Sales A/c ₦5,000, Credit Cash A/c ₦5,000
D. Debit Profit & Loss A/c ₦5,000, Credit Cash A/c ₦5,000
Question 6
A company issued 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000
Question 7
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦20,000 debit to Rent Paid and ₦20,000 credit to Rent Received
C. ₦15,000 debit to Rent Received and ₦15,000 credit to Rent Paid
D. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
Question 8
A company's bank statement showed a balance of ₦120,000, but the company's cash book showed a balance of ₦150,000. The difference is due to an outstanding cheque of ₦15,000 and a deposit in transit of ₦5,000. What is the correct bank reconciliation statement?
A. Bank Balance ₦120,000, Cash Book Balance ₦150,000, Outstanding Cheque ₦15,000, Deposit in Transit ₦5,000
B. Bank Balance ₦150,000, Cash Book Balance ₦120,000, Outstanding Cheque ₦15,000, Deposit in Transit ₦5,000
C. Bank Balance ₦120,000, Cash Book Balance ₦150,000, Outstanding Cheque ₦5,000, Deposit in Transit ₦15,000
D. Bank Balance ₦150,000, Cash Book Balance ₦120,000, Outstanding Cheque ₦5,000, Deposit in Transit ₦15,000
Question 9
A company's financial statements show the following balances: Cash ₦100,000, Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. Prepare the journal entries for the above transactions.
A. Debit Cash ₦100,000, Credit Accounts Payable ₦100,000
B. Debit Accounts Receivable ₦30,000, Credit Sales Revenue ₦30,000
C. Debit Cost of Goods Sold ₦150,000, Credit Sales Revenue ₦150,000
D. Debit Accounts Payable ₦50,000, Credit Cost of Goods Sold ₦50,000
Question 10
A government agency has a budget of ₦500,000 for the year. The agency has already spent ₦300,000. Prepare a budget variance analysis to determine the under/over expenditure.
A. Under expenditure of ₦100,000
B. Over expenditure of ₦100,000
C. Under expenditure of ₦200,000
D. Over expenditure of ₦200,000
Question 11
A company issues 1,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦95,000
B. ₦100,000
C. ₦105,000
D. ₦110,000
Question 12
A company's manufacturing account showed a cost of goods sold of ₦500,000, but the company's trading account showed a sales revenue of ₦750,000. What is the correct profit or loss for the period?
A. Profit ₦250,000
B. Loss ₦250,000
C. Profit ₦500,000
D. Loss ₦500,000
Question 13
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The shares were issued for £ 1.50 each. Calculate the amount received from the issue of shares.
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 14
A company's balance sheet shows an asset of ₦50,000, which is to be depreciated over a period of 5 years. Calculate the annual depreciation.
A. ₦10,000
B. ₦5,000
C. ₦20,000
D. ₦15,000
Question 15
A public sector organization has the following transactions: Debit: Salaries ¡ 100,000, Travel Expenses ¡ 20,000, and Office Supplies ¡ 10,000. Credit: Cash ¡ 130,000.
A. ₦100,000
B. ₦120,000
C. ₦130,000
D. ₦140,000

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