POST UTME SUMMIT UNIVERSITY 2020 Accounting | Objective

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Question 1
A government agency uses the double-entry system of accounting. The agency's ledger shows a debit balance of ₦300,000 in the Asset Account and a credit balance of ₦200,000 in the Liability Account. What is the correct journal entry to record the difference between the Asset and Liability balances?
A. ₦100,000 debit to Asset Account and ₦100,000 credit to Liability Account
B. ₦100,000 credit to Asset Account and ₦100,000 debit to Liability Account
C. ₦100,000 debit to Asset Account and ₦100,000 credit to Capital Account
D. ₦100,000 credit to Asset Account and ₦100,000 debit to Capital Account
Question 2
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, calculate the amount of profit that will be shared by A.
A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦200,000
Question 3
A company uses the perpetual inventory system. The company's beginning inventory is 100 units at ₦50 each. During the period, the company purchases 200 units at ₦60 each and sells 150 units at ₦80 each. What is the cost of goods sold?
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 4
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦300,000. What is the difference between the two balances?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 5
A company has a debt of ₦50,000 and issues 5-year debentures at 10% interest per annum. If the company pays interest annually, what is the amount of interest paid in the first year?
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 6
A company uses the single-entry system of accounting. The following transactions occurred during the year: Purchased office supplies for ₦5,000; Paid rent for the year ₦20,000; Sold merchandise for ₦80,000; Purchased merchandise for ₦60,000; Collected cash from customers ₦40,000. Prepare the company's ledger accounts.
A. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Cash: ₦40,000
B. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Accounts Receivable: ₦40,000
C. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Accounts Payable: ₦40,000
D. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Cash: ₦40,000
Question 7
A company has a capital of ₦100,000 and a profit of ₦20,000. If the company distributes 20% of the profit as dividend, what is the amount of dividend paid?
A. ₦4,000
B. ₦4,500
C. ₦5,000
D. ₦5,500
Question 8
A company has a debt of ₦50,000 and issues 5-year debentures at 10% interest per annum. If the company pays interest annually, what is the amount of interest paid in the first year?
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 9
A company's profit and loss account for the year ended 31st December, 2020 is as follows:
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 10
A company purchases a machine for ₦500,000 and sells it after 2 years for ₦300,000. Calculate the loss on sale of the machine.
A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000
Question 11
A company uses the double-entry system of accounting. The following transactions occurred during the year: Purchased office supplies for ₦5,000; Paid rent for the year ₦20,000; Sold merchandise for ₦80,000; Purchased merchandise for ₦60,000; Collected cash from customers ₦40,000. Prepare the company's ledger accounts.
A. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Cash: ₦40,000
B. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Accounts Receivable: ₦40,000
C. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Accounts Payable: ₦40,000
D. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Cash: ₦40,000
Question 12
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 13
A company produces two products, X and Y, using two machines, A and B. The production costs for X and Y are as follows: X: ₦10 per unit, Y: ₦15 per unit. The company uses machine A for 80% of the production and machine B for 20%. If the total production cost is ₦120,000, what is the total production cost of product X?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 14
A company's single entry system shows a total of ₦300,000 in assets. However, the company's accountant estimates that the total assets are ₦450,000. What is the difference between the two balances?
A. ₦75,000
B. ₦150,000
C. ₦225,000
D. ₦300,000
Question 15
A company produces two products, X and Y. Product X has a variable cost of ₦100 per unit and a fixed cost of ₦50,000. Product Y has a variable cost of ₦80 per unit and a fixed cost of ₦30,000. If the selling price of X is ₦150 per unit and the selling price of Y is ₦120 per unit, and the company produces 200 units of X and 300 units of Y, what is the total profit?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000

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