POST UTME SUMMIT UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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.
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
Question 2
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
C. ₦150,000
D. ₦165,000
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.
A. Profit: £ 1,500; Loss: £ 0
B. Profit: £ 0; Loss: £ 1,500
C. Profit: £ 1,500; Loss: £ 1,500
D. Profit: £ 0; Loss: £ 0
Question 4
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
B. ₦450,000
C. ₦475,000
D. ₦500,000
Question 5
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
C. ₦70,000
D. ₦80,000
Question 6
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.
D. The company has recorded a dividend received from another company.
Question 7
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 1 Jan | Bank | | ₦20,000 | | 2 Jan | Cash | | ₦5,000 | | 2 Jan | Bank | ₦5,000 | | | 3 Jan | Cash | ₦8,000 | | | 3 Jan | Bank | | ₦8,000 | What is the balance of the cash book?
A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000
Question 8
A company's balance sheet as at 31 December 2020 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Retained Earnings | 20,000 | | Total | 80,000 | Total | 100,000 | If the company issues 10,000 ordinary shares of ₦5 each at a premium of ₦2, what will be the new balance sheet?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 9
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
C. Debit Office Equipment ₦50,000, Credit Cash ₦50,000
D. Debit Purchases ₦100,000, Credit Cash ₦100,000
Question 10
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?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 11
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
C. ₦250,000
D. ₦300,000
Question 12
A company issued 10,000 ordinary shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 13
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.
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
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?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 1 Jan | Bank | | ₦20,000 | | 2 Jan | Cash | | ₦5,000 | | 2 Jan | Bank | ₦5,000 | | | 3 Jan | Cash | ₦8,000 | | | 3 Jan | Bank | | ₦8,000 | What is the balance of the bank account?
A. ₦15,000
B. ₦17,000
C. ₦19,000
D. ₦21,000

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