Practice Post UTME UI accounting 2024 Past Questions

Question 1

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this discrepancy?

A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

Correct B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid

D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

Correct Answer: B

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Question 2

A company's balance sheet shows a decrease in its current assets by ₦50,000 and an increase in its current liabilities by ₦30,000. What is the effect on the company's working capital?

Correct A. ₦20,000 decrease

B. ₦20,000 increase

C. ₦10,000 decrease

D. ₦10,000 increase

Correct Answer: A

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Question 3

A company uses the perpetual inventory system. On January 1, 2024, it had 100 units of a product on hand at a cost of ₦10 each. During the year, 50 units were sold, and 20 units were purchased at a cost of ₦12 each. What is the total cost of goods sold for the year?

A. ₦500

Correct B. ₦600

C. ₦700

D. ₦800

Correct Answer: B

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Question 4

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this discrepancy?

A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

Correct B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid

D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

Correct Answer: B

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Question 5

A company's balance sheet shows a decrease in its current assets by ₦50,000 and an increase in its current liabilities by ₦30,000. What is the effect on the company's working capital?

Correct A. ₦20,000 decrease

B. ₦20,000 increase

C. ₦10,000 decrease

D. ₦10,000 increase

Correct Answer: A

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Question 6

A company issued 10,000 shares of 1 par value at a premium of 3 per share. Calculate the total amount received from the issue of shares.

A. ₦30,000,000

Correct B. ₦40,000,000

C. ₦50,000,000

D. ₦60,000,000

Correct Answer: B

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Question 7

A manufacturing company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials have a cost of ₦1,000,000, the work-in-progress has a cost of ₦2,000,000, and the finished goods have a cost of ₦3,000,000. If the total value of the inventory is ₦6,000,000, calculate the value of the finished goods.

A. ₦1,500,000

B. ₦2,000,000

Correct C. ₦3,000,000

D. ₦4,500,000

Correct Answer: C

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Question 8

A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦100,000 and a useful life of 5 years. Calculate the annual depreciation.

Correct A. ₦20,000

B. ₦15,000

C. ₦10,000

D. ₦5,000

Correct Answer: A

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Question 9

A company issued 5,000 debentures of ₦1,000 each at a premium of 10%. Calculate the total amount received from the issue of debentures.

A. ₦5,500,000

Correct B. ₦6,000,000

C. ₦6,500,000

D. ₦7,000,000

Correct Answer: B

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Question 10

A company uses the double-declining balance method to depreciate its assets. The asset has a cost of ₦200,000 and a useful life of 5 years. Calculate the annual depreciation.

Correct A. ₦40,000

B. ₦30,000

C. ₦20,000

D. ₦10,000

Correct Answer: A

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Question 11

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. £ 12,000

C. £ 15,000

D. £ 18,000

Correct Answer: B

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Question 12

A government agency is considering the purchase of a new asset with a cost of £ 50,000. The asset is expected to have a useful life of 5 years and a residual value of £ 5,000. Calculate the annual depreciation using the straight-line method.

Correct A. £ 9,000

B. £ 10,000

C. £ 11,000

D. £ 12,000

Correct Answer: A

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Question 13

A company has the following transactions in its incomplete records: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 15 Jan | Sales | | 15,000 | | 20 Jan | Purchases | 8,000 | | | 25 Jan | Cash | | 12,000 | Calculate the net profit or loss for the period.

A. £ 7,000

Correct B. £ 8,000

C. £ 9,000

D. £ 10,000

Correct Answer: B

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Question 14

A company issued 5,000 debentures of £ 100 each at a premium of £ 20 per debenture. Calculate the total amount received from the issue of debentures.

A. £ 500,000

Correct B. £ 550,000

C. £ 600,000

D. £ 650,000

Correct Answer: B

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Question 15

A government agency is considering the purchase of a new asset with a cost of £ 75,000. The asset is expected to have a useful life of 10 years and a residual value of £ 10,000. Calculate the annual depreciation using the straight-line method.

A. £ 7,000

Correct B. £ 7,500

C. £ 8,000

D. £ 8,500

Correct Answer: B

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Question 16

A company uses the weighted average method to value its inventory. The following data are available for the year ended December 31, 2023: Cost of goods available for sale: ₦1,500,000; Net realizable value of goods on hand: ₦1,200,000; Net realizable value of goods sold: ₦1,000,000. Calculate the cost of goods sold using the weighted average method.

A. ₦1,200,000

Correct B. ₦1,000,000

C. ₦1,500,000

D. ₦1,800,000

Correct Answer: B

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Question 17

A company has the following transactions during the year ended December 31, 2023: Purchased office equipment for ₦500,000; Sold office equipment for ₦300,000; Depreciated office equipment by 20%. Calculate the net book value of the office equipment at December 31, 2023.

Correct A. ₦400,000

B. ₦300,000

C. ₦500,000

D. ₦200,000

Correct Answer: A

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Question 18

A company has the following transactions during the year ended December 31, 2023: Purchased office equipment for ₦500,000; Sold office equipment for ₦300,000; Depreciated office equipment by 20%. Calculate the profit or loss on the sale of the office equipment.

Correct A. ₦100,000

B. ₦200,000

C. ₦300,000

D. ₦400,000

Correct Answer: A

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Question 19

A company has the following transactions during the year ended December 31, 2023: Purchased office equipment for ₦500,000; Sold office equipment for ₦300,000; Depreciated office equipment by 20%. Calculate the gain or loss on the sale of the office equipment.

Correct A. ₦100,000

B. ₦200,000

C. ₦300,000

D. ₦400,000

Correct Answer: A

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Question 20

A company has the following transactions during the year ended December 31, 2023: Purchased office equipment for ₦500,000; Sold office equipment for ₦300,000; Depreciated office equipment by 20%. Calculate the net book value of the office equipment at December 31, 2023.

Correct A. ₦400,000

B. ₦300,000

C. ₦500,000

D. ₦200,000

Correct Answer: A

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Question 21

A company has the following transactions during the year ended December 31, 2023: Purchased office equipment for ₦500,000; Sold office equipment for ₦300,000; Depreciated office equipment by 20%. Calculate the profit or loss on the sale of the office equipment.

Correct A. ₦100,000

B. ₦200,000

C. ₦300,000

D. ₦400,000

Correct Answer: A

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Question 22

A company has the following transactions during the year ended December 31, 2023: Purchased office equipment for ₦500,000; Sold office equipment for ₦300,000; Depreciated office equipment by 20%. Calculate the gain or loss on the sale of the office equipment.

Correct A. ₦100,000

B. ₦200,000

C. ₦300,000

D. ₦400,000

Correct Answer: A

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Question 23

A company has the following transactions during the year ended December 31, 2023: Purchased office equipment for ₦500,000; Sold office equipment for ₦300,000; Depreciated office equipment by 20%. Calculate the net book value of the office equipment at December 31, 2023.

Correct A. ₦400,000

B. ₦300,000

C. ₦500,000

D. ₦200,000

Correct Answer: A

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Question 24

Determine the amount of cash received from the sale of shares in a company, given that the company issued 5,000 shares at ₦10 each and the market value of each share is ₦15. If the company sold 2,000 shares, calculate the total cash received.

A. ₦30,000

Correct B. ₦60,000

C. ₦120,000

D. ₦150,000

Correct Answer: B

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Question 25

A company has a capital of ₦100,000, divided into 10,000 shares of ₦10 each. If the company issues 2,000 debentures of ₦50 each, calculate the new capital of the company.

A. ₦150,000

Correct B. ₦200,000

C. ₦250,000

D. ₦300,000

Correct Answer: B

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