POST UTME SUMMIT UNIVERSITY 2023 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 2023 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: Debit: Raw Materials ₦ 50,000, Work-in-Progress ₦ 30,000, and Factory Overheads ₦ 20,000. Credit: Purchases ₦ 80,000, and Wages ₦ 40,000. What is the total amount of the debit entries?
Correct A. ₦ 100,000
B. ₦ 120,000
C. ₦ 140,000
D. ₦ 160,000

Correct Answer: A

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Question 2
A partnership is formed between two individuals, A and B, with a capital contribution of ₦ 100,000 and ₦ 80,000, respectively. The partnership agreement states that the profits and losses will be shared in the ratio of 3:2. If the partnership makes a profit of ₦ 120,000, how much will A receive?
Correct A. ₦ 90,000
B. ₦ 100,000
C. ₦ 110,000
D. ₦ 120,000

Correct Answer: A

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Question 3
A manufacturing company produces two products, X and Y. The production costs for X and Y are as follows: X: Raw Materials ₦ 10,000, Labour ₦ 15,000, and Factory Overheads ₦ 20,000. Y: Raw Materials ₦ 15,000, Labour ₦ 20,000, and Factory Overheads ₦ 25,000. If the company produces 100 units of X and 80 units of Y, what is the total production cost?
A. ₦ 5,500,000
B. ₦ 6,000,000
Correct C. ₦ 6,500,000
D. ₦ 7,000,000

Correct Answer: C

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Question 4
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦ 500,000, Returns: ₦ 20,000, and Cost of Goods Sold: ₦ 300,000. What is the gross profit?
A. ₦ 150,000
B. ₦ 180,000
Correct C. ₦ 200,000
D. ₦ 220,000

Correct Answer: C

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Question 5
A company's bank statement for the month of January 2023 shows the following: Opening Balance: ₦ 50,000, Deposits: ₦ 100,000, and Withdrawals: ₦ 80,000. What is the closing balance?
A. ₦ 70,000
B. ₦ 80,000
Correct C. ₦ 90,000
D. ₦ 100,000

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 total profit for the year is ₦750,000, calculate the amount of profit that will be shared by A.
Correct A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000

Correct Answer: A

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Question 7
A company issues 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received by the company.
A. ₦475,000
Correct B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: B

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Question 8
A government agency is responsible for collecting taxes on behalf of the government. The agency collects ₦1,000,000 in taxes and pays ₦200,000 as salaries to its employees. Calculate the amount of taxes collected by the agency.
A. ₦800,000
B. ₦900,000
Correct C. ₦1,000,000
D. ₦1,100,000

Correct Answer: C

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Question 9
A company has the following incomplete records: Opening Balance: ₦100,000; Purchases: ₦500,000; Sales: ₦700,000; Drawings: ₦50,000. Calculate the net profit for the year.
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 10
A company has the following financial statements: Trading Profit: ₦200,000; Profit Before Tax: ₦300,000; Tax: ₦50,000. Calculate the net profit for the year.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 11
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
Correct B. ₦45,000
C. ₦50,000
D. ₦55,000

Correct Answer: B

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Question 12
A company has the following transactions: Purchased goods on credit for ₦100,000; Sold goods on credit for ₦120,000; Purchased office supplies for ₦5,000 in cash. Prepare a journal entry to record the purchase of office supplies.
A. Office Supplies A/c Dr. ₦5,000
Correct B. Office Supplies A/c Dr. ₦5,000; Cash A/c Cr. ₦5,000
C. Office Supplies A/c Dr. ₦5,000; Purchases A/c Cr. ₦5,000
D. Office Supplies A/c Dr. ₦5,000; Sales A/c Cr. ₦5,000

Correct Answer: B

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Question 13
A company has the following trial balance: Accounts Payable ₦50,000; Accounts Receivable ₦30,000; Common Stock ₦100,000; Dividends ₦10,000; Equipment ₦80,000; Interest Expense ₦5,000; Interest Income ₦2,000; Net Income ₦20,000; Retained Earnings ₦50,000; Salaries Expense ₦15,000; Sales Revenue ₦120,000; Utilities Expense ₦3,000. Prepare a balance sheet.
Correct A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000

Correct Answer: A

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Question 14
A company has the following transactions: Purchased a new machine for ₦80,000; Sold a machine for ₦40,000; Purchased office supplies for ₦5,000 in cash. Prepare a journal entry to record the sale of the machine.
A. Machine A/c Dr. ₦40,000; Cash A/c Cr. ₦40,000
Correct B. Machine A/c Dr. ₦40,000; Sales A/c Cr. ₦40,000
C. Machine A/c Dr. ₦40,000; Purchases A/c Cr. ₦40,000
D. Machine A/c Dr. ₦40,000; Office Supplies A/c Cr. ₦40,000

Correct Answer: B

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Question 15
A company has the following transactions: Purchased a new machine for ₦80,000; Sold a machine for ₦40,000; Purchased office supplies for ₦5,000 in cash. Prepare a journal entry to record the purchase of office supplies.
A. Office Supplies A/c Dr. ₦5,000
Correct B. Office Supplies A/c Dr. ₦5,000; Cash A/c Cr. ₦5,000
C. Office Supplies A/c Dr. ₦5,000; Purchases A/c Cr. ₦5,000
D. Office Supplies A/c Dr. ₦5,000; Sales A/c Cr. ₦5,000

Correct Answer: B

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Question 16
A company has the following trial balance: Accounts Payable ₦50,000; Accounts Receivable ₦30,000; Common Stock ₦100,000; Dividends ₦10,000; Equipment ₦80,000; Interest Expense ₦5,000; Interest Income ₦2,000; Net Income ₦20,000; Retained Earnings ₦50,000; Salaries Expense ₦15,000; Sales Revenue ₦120,000; Utilities Expense ₦3,000. Prepare a balance sheet.
Correct A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000

Correct Answer: A

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Question 17
A company has the following transactions: Purchased a new machine for ₦80,000; Sold a machine for ₦40,000; Purchased office supplies for ₦5,000 in cash. Prepare a journal entry to record the sale of the machine.
A. Machine A/c Dr. ₦40,000; Cash A/c Cr. ₦40,000
Correct B. Machine A/c Dr. ₦40,000; Sales A/c Cr. ₦40,000
C. Machine A/c Dr. ₦40,000; Purchases A/c Cr. ₦40,000
D. Machine A/c Dr. ₦40,000; Office Supplies A/c Cr. ₦40,000

Correct Answer: B

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Question 18
A company uses the double-entry system of accounting. The following transactions occurred during the month of January:
A. Debit Cash 1,000 and credit Accounts Payable 1,000
Correct B. Debit Accounts Payable 1,000 and credit Cash 1,000
C. Debit Cash 1,000 and credit Accounts Receivable 1,000
D. Debit Accounts Receivable 1,000 and credit Cash 1,000

Correct Answer: B

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Question 19
A company's trial balance shows the following balances:
A. Debit Sales 10,000 and credit Cost of Goods Sold 10,000
Correct B. Debit Cost of Goods Sold 10,000 and credit Sales 10,000
C. Debit Sales 10,000 and credit Accounts Receivable 10,000
D. Debit Accounts Receivable 10,000 and credit Sales 10,000

Correct Answer: B

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Question 20
A company's bank reconciliation statement shows the following information:
Correct A. Debit Bank Fees 100 and credit Bank Statement Balance 100
B. Debit Bank Statement Balance 100 and credit Bank Fees 100
C. Debit Bank Statement Balance 100 and credit Cash 100
D. Debit Cash 100 and credit Bank Statement Balance 100

Correct Answer: A

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Question 21
A company's cash book shows the following transactions:
A. Debit Cash 1,000 and credit Accounts Payable 1,000
Correct B. Debit Accounts Payable 1,000 and credit Cash 1,000
C. Debit Cash 1,000 and credit Accounts Receivable 1,000
D. Debit Accounts Receivable 1,000 and credit Cash 1,000

Correct Answer: B

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Question 22
A company's ledger accounts show the following balances:
A. Debit Sales 10,000 and credit Cost of Goods Sold 10,000
Correct B. Debit Cost of Goods Sold 10,000 and credit Sales 10,000
C. Debit Sales 10,000 and credit Accounts Receivable 10,000
D. Debit Accounts Receivable 10,000 and credit Sales 10,000

Correct Answer: B

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Question 23
A company uses the double-entry system of accounting. The trial balance of the company as at December 31, 2022, shows the following balances:
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 24
A manufacturing company produces two products, X and Y. The selling price of X is ₦100 per unit, and the selling price of Y is ₦120 per unit. The company sells 500 units of X and 300 units of Y. The total cost of production for X is ₦150,000, and the total cost of production for Y is ₦180,000. Calculate the gross profit.
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 25
A company uses the single-entry system of accounting. The company's ledger shows the following transactions:
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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