POST UTME SUMMIT UNIVERSITY 2022 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 2022 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issues 10,000 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
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 2
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?
Correct A. ₦300,000
B. ₦200,000
C. ₦100,000
D. ₦50,000

Correct Answer: A

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Question 3
A company issues 5,000 debentures of ₦1,000 each at a premium of ₦50. Calculate the total amount received from the issue of debentures.
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 4
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
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 5
A company issues 10,000 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
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

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Question 6
A company's cash book shows a credit balance of ₦15,000 in the cash account. However, the bank statement shows a debit balance of ₦20,000. 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. ₦10,000
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 7
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
Correct C. ₦75,000
D. ₦100,000

Correct Answer: C

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Question 8
A company uses the straight-line method of depreciation. The cost of the asset is ₦100,000 and its useful life is 5 years. What is the annual depreciation charge?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 9
A company's balance sheet shows a current liability of ₦50,000. The company's cash flow statement shows a decrease in current liabilities of ₦20,000. What is the correct amount of current liabilities?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 10
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
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 11
A company's trial balance shows an error of ₦1,500 in the debit side of the account 'Rent Received'. The error is due to the omission of a receipt of ₦1,500 from a customer. Prepare the correcting journal entry.
Correct A. Debit Rent Received ₦1,500, Credit Cash ₦1,500
B. Debit Rent Received ₦1,500, Credit Profit and Loss Account ₦1,500
C. Debit Profit and Loss Account ₦1,500, Credit Rent Received ₦1,500
D. Debit Rent Received ₦1,500, Credit Bank ₦1,500

Correct Answer: A

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Question 12
A public sector organization has the following transactions for the month of January: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦10,000 | | | 2-Jan | Office Equipment | | ₦8,000 | | 3-Jan | Rent Received | | ₦12,000 | | 4-Jan | Salaries | ₦20,000 | | | 5-Jan | Office Supplies | ₦5,000 | | Prepare the journal entries for the above transactions.
Correct A. Debit Cash ₦10,000, Credit Office Equipment ₦8,000, Credit Rent Received ₦12,000, Debit Salaries ₦20,000, Debit Office Supplies ₦5,000
B. Debit Cash ₦10,000, Credit Office Equipment ₦8,000, Debit Rent Received ₦12,000, Debit Salaries ₦20,000, Debit Office Supplies ₦5,000
C. Debit Office Equipment ₦8,000, Credit Rent Received ₦12,000, Debit Salaries ₦20,000, Debit Office Supplies ₦5,000
D. Debit Cash ₦10,000, Credit Office Equipment ₦8,000, Debit Rent Received ₦12,000, Credit Salaries ₦20,000, Credit Office Supplies ₦5,000

Correct Answer: A

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Question 13
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.
Correct 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

Correct Answer: A

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Question 14
A company's trial balance as at 31st December 2022 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦50,000 | | | Office Equipment | | ₦60,000 | | Rent Received | | ₦80,000 | | Salaries | ₦30,000 | | | Office Supplies | ₦10,000 | | | | | | The company has the following errors in the trial balance: | Error | Amount | | --- | --- | | Omission of a receipt of ₦1,500 from a customer | ₦1,500 | | Overstatement of office supplies by ₦2,000 | ₦2,000 | Prepare the correcting journal entries for the above errors.
Correct A. Debit Cash ₦1,500, Credit Rent Received ₦1,500, Debit Office Supplies ₦2,000, Credit Profit and Loss Account ₦2,000
B. Debit Rent Received ₦1,500, Credit Cash ₦1,500, Debit Office Supplies ₦2,000, Credit Profit and Loss Account ₦2,000
C. Debit Office Supplies ₦2,000, Credit Profit and Loss Account ₦2,000
D. Debit Cash ₦1,500, Credit Rent Received ₦1,500, Debit Office Supplies ₦2,000, Credit Profit and Loss Account ₦2,000

Correct Answer: A

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Question 15
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
Correct 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

Correct Answer: B

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Question 16
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
Correct D. ₦5,000 debit to Bank and ₦15,000 credit to Cash

Correct Answer: D

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Question 17
A company's balance sheet shows a total assets of ₦100,000 and a total liabilities of ₦80,000. What is the correct equity?
Correct A. ₦20,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 18
A company's profit and loss account shows a net profit of ₦30,000. What is the correct journal entry to record the distribution of the net profit?
A. ₦30,000 debit to Profit and Loss Appropriation Account and ₦30,000 credit to Profit and Loss Account
B. ₦30,000 debit to Profit and Loss Account and ₦30,000 credit to Profit and Loss Appropriation Account
C. ₦30,000 debit to Profit and Loss Appropriation Account and ₦30,000 credit to Profit and Loss Account
Correct D. ₦30,000 debit to Profit and Loss Account and ₦30,000 credit to Profit and Loss Appropriation Account

Correct Answer: D

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Question 19
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
Correct 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

Correct Answer: B

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Question 20
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
Correct D. ₦5,000 debit to Bank and ₦15,000 credit to Cash

Correct Answer: D

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Question 21
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
Correct B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: B

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Question 22
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?
Correct A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: A

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Question 23
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
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

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Question 24
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 revenues?
Correct A. ₦1,200,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

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Question 25
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 expenses?
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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