POST UTME SUMMIT UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME SUMMIT UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
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
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 2
A company's trial balance as at 31st December, 2020 is as follows:
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 3
A company's balance sheet as at 31st December, 2020 is as follows:
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

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Question 4
A company's profit and loss account for the year ended 31st December, 2020 is as follows:
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 5
A company's cash flow statement for the year ended 31st December, 2020 is as follows:
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

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Question 6
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.
Correct A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 7
A company purchases a machine for ₦1,000,000. The machine has a useful life of 5 years and a residual value of ₦100,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000

Correct Answer: A

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Question 8
A manufacturing company produces two products, X and Y. The production costs for X are ₦100,000 and for Y are ₦120,000. If the company produces 100 units of X and 80 units of Y, calculate the total production cost.
A. ₦20,000,000
Correct B. ₦22,000,000
C. ₦24,000,000
D. ₦26,000,000

Correct Answer: B

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Question 9
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
Correct D. ₦25,000

Correct Answer: D

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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
Correct D. ₦125,000

Correct Answer: D

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Question 11
A partnership is formed between two individuals, A and B, with a capital of ₦200,000 each. During the year, A withdrew ₦50,000 for personal use, while B invested an additional ₦30,000. The profit for the year was ₦120,000. Prepare the partnership's statement of profit or loss and the partners' capital accounts.
Correct A. ₦150,000; A: ₦150,000; B: ₦150,000
B. ₦100,000; A: ₦100,000; B: ₦100,000
C. ₦120,000; A: ₦120,000; B: ₦120,000
D. ₦180,000; A: ₦180,000; B: ₦180,000

Correct Answer: A

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Question 12
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, Common Stock ₦100,000, Dividends ₦10,000, Equipment ₦20,000, Interest Expense ₦5,000, Interest Income ₦2,000, Net Income ₦15,000, Retained Earnings ₦25,000, Salaries Expense ₦8,000, Sales Revenue ₦80,000, Taxes Expense ₦3,000, Utilities Expense ₦4,000. Prepare the company's balance sheet.
A. ₦150,000; ₦50,000; ₦30,000; ₦100,000; ₦10,000; ₦20,000; ₦5,000; ₦2,000; ₦15,000; ₦25,000; ₦8,000; ₦80,000; ₦3,000; ₦4,000
Correct B. ₦200,000; ₦50,000; ₦30,000; ₦100,000; ₦10,000; ₦20,000; ₦5,000; ₦2,000; ₦15,000; ₦25,000; ₦8,000; ₦80,000; ₦3,000; ₦4,000
C. ₦250,000; ₦50,000; ₦30,000; ₦100,000; ₦10,000; ₦20,000; ₦5,000; ₦2,000; ₦15,000; ₦25,000; ₦8,000; ₦80,000; ₦3,000; ₦4,000
D. ₦300,000; ₦50,000; ₦30,000; ₦100,000; ₦10,000; ₦20,000; ₦5,000; ₦2,000; ₦15,000; ₦25,000; ₦8,000; ₦80,000; ₦3,000; ₦4,000

Correct Answer: B

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Question 13
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.
Correct 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

Correct Answer: A

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Question 14
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.
Correct 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

Correct Answer: A

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Question 15
A company uses the cash book to record its cash transactions. 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 cash book.
A. ₦5,000; ₦20,000; ₦80,000; ₦60,000; ₦40,000
B. ₦5,000; ₦20,000; ₦80,000; ₦60,000; ₦40,000
C. ₦5,000; ₦20,000; ₦80,000; ₦60,000; ₦40,000
D. ₦5,000; ₦20,000; ₦80,000; ₦60,000; ₦40,000

Correct Answer: VIEW ANSWER

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Question 16
In a partnership account, the capital of two partners, A and B, is shared in the ratio 3:2. If the total capital is ₦120,000, what is the amount of capital contributed by partner B?
A. ₦48,000
Correct B. ₦60,000
C. ₦72,000
D. ₦80,000

Correct Answer: B

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Question 17
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?
Correct A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

Correct Answer: A

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Question 18
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦12,000 from the issue of shares, what is the amount of share capital?
A. ₦10,000
Correct B. ₦12,000
C. ₦14,000
D. ₦16,000

Correct Answer: B

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Question 19
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
Correct B. ₦5,500
C. ₦6,000
D. ₦6,500

Correct Answer: B

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Question 20
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
Correct B. ₦4,500
C. ₦5,000
D. ₦5,500

Correct Answer: B

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Question 21
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
Correct B. ₦5,500
C. ₦6,000
D. ₦6,500

Correct Answer: B

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Question 22
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
Correct B. ₦4,500
C. ₦5,000
D. ₦5,500

Correct Answer: B

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Question 23
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
Correct B. ₦5,500
C. ₦6,000
D. ₦6,500

Correct Answer: B

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Question 24
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
Correct B. ₦4,500
C. ₦5,000
D. ₦5,500

Correct Answer: B

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Question 25
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦150,000. The company's ledger shows a credit balance of ₦200,000. What is the correct journal entry to record the difference between the cash book and ledger balances?
Correct A. ₦50,000 debit to Cash and ₦50,000 credit to Profit or Loss Account
B. ₦50,000 credit to Cash and ₦50,000 debit to Profit or Loss Account
C. ₦50,000 debit to Cash and ₦50,000 credit to Drawings Account
D. ₦50,000 credit to Cash and ₦50,000 debit to Drawings Account

Correct Answer: A

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