POST UTME SUMMIT UNIVERSITY 2022 Accounting | Objective

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Question 1
A company's trading account for the year ended 31st December 2022, showed a profit of ₦2,500,000. The balance sheet as at 31st December 2021, showed a capital of ₦3,500,000 and a profit and loss account balance of ₦1,200,000. The company's balance sheet as at 31st December 2022, showed a capital of ₦4,000,000 and a profit and loss account balance of ₦2,000,000. Calculate the amount of dividends paid to the shareholders.
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,500,000
Question 2
A company's cash book shows a credit balance of ₦20,000 in the cash account. However, the bank statement shows a debit balance of ₦15,000. The bank reconciliation statement shows a difference of ₦5,000 due to an outstanding cheque. What is the correct amount of cash in hand?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 3
A company uses the straight-line method of depreciation. 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 ₦1,500,000?
A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000
Question 4
A company has the following accounts: Accounts Payable: ₦120,000, Accounts Receivable: ₦150,000, Common Stock: ₦500,000, Dividends: ₦20,000, Equipment: ₦200,000, Expenses: ₦100,000, Income Tax Expense: ₦30,000, Interest Expense: ₦10,000, Net Income: ₦150,000, Retained Earnings: ₦250,000, Salaries Expense: ₦80,000, Sales Revenue: ₦1,200,000, Utilities Expense: ₦20,000. What is the total amount of liabilities?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 5
A company has the following accounts: Accounts Payable: ₦120,000, Accounts Receivable: ₦150,000, Common Stock: ₦500,000, Dividends: ₦20,000, Equipment: ₦200,000, Expenses: ₦100,000, Income Tax Expense: ₦30,000, Interest Expense: ₦10,000, Net Income: ₦150,000, Retained Earnings: ₦250,000, Salaries Expense: ₦80,000, Sales Revenue: ₦1,200,000, Utilities Expense: ₦20,000. What is the total amount of equity?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 6
A company's trial balance shows a debit balance of ₦10,000 in the account 'Rent Received' and a credit balance of ₦5,000 in the account 'Rent Paid'. What is the correct journal entry to record the correction of this error?
A. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
B. ₦10,000 debit to Rent Received and ₦5,000 credit to Rent Paid
C. ₦5,000 debit to Rent Paid and ₦10,000 credit to Rent Received
D. ₦10,000 debit to Rent Paid and ₦5,000 credit to Rent Received
Question 7
A manufacturing company uses a job costing system. The company has a departmental structure with three departments: Cutting, Machining, and Assembly. The Cutting department incurs a cost of ₦120,000 for a job. If the Machining department incurs a cost of ₦180,000 for the same job, what is the total cost of the job?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 8
A company's trading account shows a profit of ₦50,000. The profit and loss account shows a net profit of ₦75,000. The balance sheet shows a decrease in stock of ₦20,000. What is the correct amount of retained earnings?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 9
A company's cash book shows a debit balance of ₦20,000 in the account 'Bank' and a credit balance of ₦15,000 in the account 'Cash'. What is the correct bank reconciliation statement?
A. ₦5,000 debit to Bank and ₦5,000 credit to Cash
B. ₦20,000 debit to Bank and ₦15,000 credit to Cash
C. ₦15,000 debit to Bank and ₦20,000 credit to Cash
D. ₦5,000 debit to Bank and ₦15,000 credit to Cash
Question 10
A company's cash book shows a debit balance of ₦20,000 in the account 'Bank' and a credit balance of ₦15,000 in the account 'Cash'. What is the correct bank reconciliation statement?
A. ₦5,000 debit to Bank and ₦5,000 credit to Cash
B. ₦20,000 debit to Bank and ₦15,000 credit to Cash
C. ₦15,000 debit to Bank and ₦20,000 credit to Cash
D. ₦5,000 debit to Bank and ₦15,000 credit to Cash
Question 11
The following trial balance of a company shows the following balances: Accounts Payable: ₦120,000, Accounts Receivable: ₦150,000, Common Stock: ₦500,000, Dividends: ₦20,000, Equipment: ₦200,000, Expenses: ₦100,000, Income Tax Expense: ₦30,000, Interest Expense: ₦10,000, Net Income: ₦150,000, Retained Earnings: ₦250,000, Salaries Expense: ₦80,000, Sales Revenue: ₦1,200,000, Utilities Expense: ₦20,000. What is the total amount of assets?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 12
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦480,000, how much will A receive as their share of the profit?
A. ₦360,000
B. ₦240,000
C. ₦300,000
D. ₦420,000
Question 13
A company's balance sheet shows that its total assets are ₦500,000 and its total liabilities are ₦200,000. What is the company's net worth?
A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000
Question 14
A company's balance sheet as at 31st December 2022 is as follows: | Assets | ₦ | Liabilities | ₦ | Equity | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 50,000 | Bank Loan | 100,000 | Share Capital | 200,000 | | Office Equipment | 150,000 | Rent Received | 120,000 | Profit and Loss Account | 50,000 | | Office Supplies | 20,000 | | | | | | | | | | | The company has the following transactions for the year 2023: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦50,000 | | | 2-Jan | Office Equipment | | ₦60,000 | | 3-Jan | Rent Received | | ₦80,000 | | 4-Jan | Salaries | ₦30,000 | | | 5-Jan | Office Supplies | ₦10,000 | | Prepare the ledger accounts for the above transactions.
A. Debit Cash ₦50,000, Credit Office Equipment ₦60,000, Credit Rent Received ₦80,000, Debit Salaries ₦30,000, Debit Office Supplies ₦10,000
B. Debit Cash ₦50,000, Credit Office Equipment ₦60,000, Debit Rent Received ₦80,000, Debit Salaries ₦30,000, Debit Office Supplies ₦10,000
C. Debit Office Equipment ₦60,000, Credit Rent Received ₦80,000, Debit Salaries ₦30,000, Debit Office Supplies ₦10,000
D. Debit Cash ₦50,000, Credit Office Equipment ₦60,000, Credit Rent Received ₦80,000, Credit Salaries ₦30,000, Credit Office Supplies ₦10,000
Question 15
A company's trial balance shows that its total assets are ₦300,000 and its total liabilities are ₦100,000. What is the company's net worth?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

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