POST UTME SUMMIT UNIVERSITY 2017 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
Question 2
A company's single-entry accounting system shows the following transactions: Cash ₦10,000, Accounts Payable ₦20,000, Sales Revenue ₦30,000, and Cost of Goods Sold ₦15,000. What is the company's net income?
Question 3
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?
Question 4
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Question 5
A company has the following transactions during the year:
1. Purchased office equipment for ₦50,000.
2. Sold office equipment for ₦30,000.
3. Purchased a new vehicle for ₦200,000.
4. Sold a used vehicle for ₦150,000.
5. Paid rent for the year ₦100,000.
Prepare the company's statement of cash flows for the year.
Question 6
A company has a trial balance as follows:
| Account | Debit | Credit |
| --- | --- | --- |
| Cash | ₦10,000 | |
| Accounts Payable | | ₦5,000 |
| Sales Revenue | | ₦20,000 |
| Cost of Goods Sold | ₦15,000 | |
| Net Income | | ₦5,000 |
| Total | ₦25,000 | ₦30,000 |
Identify the error in the trial balance.
Question 7
A company has the following ledger balances:
Debtors: ₦50,000
Creditors: ₦20,000
Capital: ₦100,000
What is the total amount of equity in the company?
Question 8
In a manufacturing company, the following transactions occurred during the month of January:
Purchased raw materials worth ₦150,000 on credit.
Purchased machinery worth ₦500,000 for cash.
Sold goods worth ₦300,000 for cash.
Paid salaries worth ₦100,000 for the month.
What is the total amount of assets acquired by the company during the month?
Question 9
A company's balance sheet as at 31 December 20X7 is as follows:
Question 10
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 record the correction of this error?
Question 11
A company's trial balance shows the following balances: Debitors ₦50,000, Creditors ₦30,000, Capital ₦100,000, Profit and Loss Account ₦20,000. What is the total amount of assets?
Question 12
A company uses the weighted average method to value its inventory. The following information is available for the year:
Cost of goods available for sale: ₦1,500,000
Cost of goods sold: ₦1,200,000
Opening inventory: ₦300,000
Closing inventory: ₦400,000
Calculate the cost of goods sold using the weighted average method.
Question 13
A company's bank statement shows a balance of ₦80,000, but the company's cash book shows a balance of ₦90,000. What is the reason for the discrepancy?
Question 14
A company has the following trading account: Sales ₦500,000, Purchases ₦300,000, Returns Outwards ₦20,000, Returns Inwards ₦10,000. What is the gross profit of the company?
Question 15
A company issued 10,000 shares of ₦5 each at a premium of ₦2. The shares were sold for ₦7 each. Calculate the amount received from the sale of shares.
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