POST UTME SUMMIT UNIVERSITY 2021 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 2021 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. £ 10,000
Correct B. £ 15,000
C. £ 20,000
D. £ 25,000

Correct Answer: B

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Question 2
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | Prepare the cash book and bank reconciliation statement.
Correct A. Cash book balance: £ 1,800; Bank balance: £ 1,300
B. Cash book balance: £ 1,300; Bank balance: £ 1,800
C. Cash book balance: £ 1,800; Bank balance: £ 1,800
D. Cash book balance: £ 1,300; Bank balance: £ 1,300

Correct Answer: A

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Question 3
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | 1,000 | | | Bank | | 500 | | Sales | | 10,000 | | Purchases | 8,000 | | | Capital | | 2,000 | Prepare the company's financial statements.
Correct A. Profit: £ 1,500; Loss: £ 0
B. Profit: £ 0; Loss: £ 1,500
C. Profit: £ 1,500; Loss: £ 1,500
D. Profit: £ 0; Loss: £ 0

Correct Answer: A

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Question 4
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. £ 10,000
Correct B. £ 15,000
C. £ 20,000
D. £ 25,000

Correct Answer: B

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Question 5
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | Prepare the cash book and bank reconciliation statement.
Correct A. Cash book balance: £ 1,800; Bank balance: £ 1,300
B. Cash book balance: £ 1,300; Bank balance: £ 1,800
C. Cash book balance: £ 1,800; Bank balance: £ 1,800
D. Cash book balance: £ 1,300; Bank balance: £ 1,300

Correct Answer: A

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Question 6
The partners in a firm, A, B, and C, share profits and losses in the ratio 5:3:2. If the total profit for the year is ₦120,000, determine the amount of profit that will be distributed to partner C.
A. ₦18,000
B. ₦24,000
Correct C. ₦30,000
D. ₦36,000

Correct Answer: C

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Question 7
A company uses the straight-line method of depreciation. If the cost of the asset is ₦150,000 and its residual value is ₦30,000, determine the annual depreciation charge for the first year.
A. ₦60,000
B. ₦70,000
Correct C. ₦80,000
D. ₦90,000

Correct Answer: C

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Question 8
A company has the following transactions: Purchased goods for ₦100,000 on credit, sold goods for ₦120,000 on credit, and purchased office equipment for ₦50,000 in cash. Prepare the journal entries for these transactions.
A. Debit Purchases ₦100,000, Credit Accounts Payable ₦100,000
B. Debit Sales ₦120,000, Credit Accounts Receivable ₦120,000
Correct C. Debit Office Equipment ₦50,000, Credit Cash ₦50,000
D. Debit Purchases ₦100,000, Credit Cash ₦100,000

Correct Answer: C

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Question 9
A company has the following trial balance: Debit ₦100,000, Credit ₦120,000. Determine the correct balance.
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 10
A company uses the weighted average method of inventory valuation. If the cost of the inventory is ₦100,000, the retail price is ₦120,000, and the number of units sold is 500, determine the cost of goods sold.
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 11
A partnership is formed between two individuals, John and Mary, with a capital of ₦500,000 each. After one year, the profit is shared in the ratio 2:3. If John's share of the profit is ₦120,000, what is Mary's share of the profit?
A. ₦180,000
Correct B. ₦150,000
C. ₦200,000
D. ₦220,000

Correct Answer: B

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Question 12
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦250,000, what is the amount received from the issue of shares?
Correct A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000

Correct Answer: A

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Question 13
A company issues 5,000 debentures of ₦100 each at a discount of 5%. If the company receives a total of ₦450,000, what is the amount received from the issue of debentures?
A. ₦425,000
Correct B. ₦450,000
C. ₦475,000
D. ₦500,000

Correct Answer: B

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Question 14
A company has a trial balance as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales Revenue | ₦0 | ₦100,000 | | Cost of Goods Sold | ₦80,000 | ₦0 | | Net Income | ₦20,000 | ₦0 | What is the amount of net income?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 15
A company has a self-balancing ledger as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | ₦0 | | Accounts Payable | ₦0 | ₦30,000 | | Sales Revenue | ₦0 | ₦100,000 | | Cost of Goods Sold | ₦80,000 | ₦0 | | Net Income | ₦20,000 | ₦0 | What is the amount of net income?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 16
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦30,000 is due to a dishonored cheque of ₦15,000 and an outstanding deposit of ₦15,000. What is the correct balance in the cash book?
A. ₦120,000
B. ₦135,000
Correct C. ₦150,000
D. ₦165,000

Correct Answer: C

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Question 17
A trial balance is prepared for XYZ Ltd. The following accounts are included: Sales, Cost of Goods Sold, and Net Profit. What is the correct order of these accounts in the trial balance?
Correct A. Sales, Cost of Goods Sold, Net Profit
B. Cost of Goods Sold, Sales, Net Profit
C. Net Profit, Sales, Cost of Goods Sold
D. Cost of Goods Sold, Net Profit, Sales

Correct Answer: A

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Question 18
A partnership is formed between two individuals, John and Mary. They agree to share profits and losses in the ratio 3:2. If the total profit for the year is ₦150,000, how much will John receive?
Correct A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: A

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Question 19
A government agency is required to prepare a budget for the upcoming fiscal year. The budget must include the following accounts: Revenue, Expenditure, and Surplus. What is the correct order of these accounts in the budget?
Correct A. Revenue, Expenditure, Surplus
B. Expenditure, Revenue, Surplus
C. Surplus, Revenue, Expenditure
D. Expenditure, Surplus, Revenue

Correct Answer: A

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Question 20
A company prepares a trading account, which shows a profit of ₦50,000. The profit is then transferred to the profit and loss account, which shows a net profit of ₦100,000. What is the correct balance in the balance sheet?
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 21
A company's trial balance shows a debit balance of ₦15,000 in the 'Office Equipment' account. However, the company's accountant has informed you that the company has not purchased any new office equipment during the year. What is the most likely explanation for the debit balance?
A. The company has sold some of its office equipment during the year.
Correct B. The company has not recorded the depreciation of its office equipment during the year.
C. The company has not recorded the purchase of new office equipment during the year.
D. The company has not recorded the sale of some of its office equipment during the year.

Correct Answer: B

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Question 22
A company's bank reconciliation statement shows a difference of ₦2,000 between the company's cash book balance and the bank statement balance. The company's accountant has informed you that the company has not made any errors in recording its cash transactions. What is the most likely explanation for the difference?
A. The bank has made an error in recording the company's transactions.
B. The company has not recorded a deposit made by a customer.
Correct C. The company has not recorded a cheque that has been deposited by the bank.
D. The bank has charged a fee for a service provided to the company.

Correct Answer: C

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Question 23
A company's final accounts show a profit of ₦100,000. However, the company's accountant has informed you that the company has not recorded any revenue during the year. What is the most likely explanation for the profit?
Correct A. The company has recorded a gain on the sale of an asset.
B. The company has not recorded the depreciation of its assets during the year.
C. The company has not recorded the expenses incurred during the year.
D. The company has not recorded the revenue earned during the year.

Correct Answer: A

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Question 24
A company's trial balance shows a credit balance of ₦20,000 in the 'Dividends' account. However, the company's accountant has informed you that the company has not declared any dividends during the year. What is the most likely explanation for the credit balance?
A. The company has recorded a gain on the sale of an asset.
B. The company has not recorded the depreciation of its assets during the year.
C. The company has not recorded the expenses incurred during the year.
Correct D. The company has recorded a dividend received from another company.

Correct Answer: D

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Question 25
A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank statement balance. The company's accountant has informed you that the company has not made any errors in recording its cash transactions. What is the most likely explanation for the difference?
A. The bank has made an error in recording the company's transactions.
B. The company has not recorded a deposit made by a customer.
Correct C. The company has not recorded a cheque that has been deposited by the bank.
D. The bank has charged a fee for a service provided to the company.

Correct Answer: C

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