POST UTME UNILAG 2020 Accounting | Objective

Are you preparing for POST UTME UNILAG exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. After 6 months, A withdraws ₦100,000 from the partnership, while B invests an additional ₦50,000. If the profit for the year is ₦200,000, how much of the profit will A receive?
Correct A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

Correct Answer: A

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Question 2
A company uses the straight-line method to depreciate its assets. If the asset cost ₦200,000 and has a residual value of ₦20,000, what is the annual depreciation charge if the asset is used for 5 years?
A. ₦30,000
B. ₦35,000
Correct C. ₦40,000
D. ₦45,000

Correct Answer: C

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Question 3
A company maintains a self-balancing ledger with the following accounts: Cash, Bank, Accounts Payable, and Accounts Receivable. If the ledger balance for Cash is ₦150,000, Bank is ₦200,000, Accounts Payable is ₦100,000, and Accounts Receivable is ₦50,000, what is the total ledger balance?
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 4
A company uses the percentage of completion method to account for its construction contracts. If the contract value is ₦1,000,000, the costs incurred are ₦500,000, and the percentage of completion is 75%, what is the amount of revenue recognized?
A. ₦375,000
B. ₦400,000
Correct C. ₦425,000
D. ₦450,000

Correct Answer: C

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Question 5
A company prepares its financial statements using the accrual basis of accounting. If the company has a credit sale of ₦200,000 and a debit purchase of ₦100,000, what is the net effect on the company's cash balance?
A. ₦100,000
Correct B. ₦0
C. ₦-100,000
D. ₦-200,000

Correct Answer: B

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Question 6
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The bank charges a service fee of ₦1,500 and a minimum balance fee of ₦500. The company's cash book also shows a deposit of ₦20,000 and a withdrawal of ₦30,000. What is the correct balance in the company's cash book after reconciliation?
A. ₦140,000
Correct B. ₦130,000
C. ₦150,000
D. ₦160,000

Correct Answer: B

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Question 7
In a partnership between John, Mary, and David, the profit-sharing ratio is 3:2:1. If the total profit is ₦150,000, how much will John receive?
Correct A. ₦45,000
B. ₦60,000
C. ₦90,000
D. ₦120,000

Correct Answer: A

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Question 8
A company's trading account shows a profit of ₦80,000. The company's profit and loss account shows a net profit of ₦120,000. The company's balance sheet shows a total assets of ₦500,000 and total liabilities of ₦200,000. What is the company's net worth?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 9
A company's cash book shows a balance of ₦100,000. However, the bank statement shows a balance of ₦120,000. The company's cash book also shows a deposit of ₦20,000 and a withdrawal of ₦30,000. What is the correct balance in the company's cash book after reconciliation?
A. ₦110,000
Correct B. ₦120,000
C. ₦130,000
D. ₦140,000

Correct Answer: B

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Question 10
A company's profit and loss account shows a net loss of ₦50,000. The company's balance sheet shows a total assets of ₦400,000 and total liabilities of ₦300,000. What is the company's net worth?
A. ₦100,000
B. ₦200,000
Correct C. ₦300,000
D. ₦400,000

Correct Answer: C

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Question 11
A company purchases a machine for ₦500,000. The machine has an expected useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 12
A bank's cash book shows a balance of ₦1,500,000. The bank statement shows a balance of ₦1,800,000. The bank's reconciliation statement shows a difference of ₦50,000 due to outstanding checks. Calculate the bank's cash balance.
A. ₦1,750,000
B. ₦1,800,000
Correct C. ₦1,850,000
D. ₦1,900,000

Correct Answer: C

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Question 13
A company issues 10,000 shares of ₦1 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
A. ₦20,000
B. ₦22,000
Correct C. ₦24,000
D. ₦26,000

Correct Answer: C

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Question 14
A company purchases a machine for ₦500,000. The machine has an expected useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the reducing-balance method.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 15
A company issues 10,000 shares of ₦1 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
A. ₦20,000
B. ₦22,000
Correct C. ₦24,000
D. ₦26,000

Correct Answer: C

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Question 16
A company issued 10,000, 10% debentures of ₦100 each. Calculate the total amount received from debenture holders.
A. ₦1,000,000
B. ₦1,500,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

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Question 17
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to an outstanding cheque of ₦10,000. What is the correct balance in the cash book?
Correct A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: A

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Question 18
A company's assets are valued as follows: Buildings ₦1,000,000, Machinery ₦800,000, and Vehicles ₦200,000. Calculate the total value of the assets.
A. ₦2,000,000
B. ₦2,500,000
Correct C. ₦3,000,000
D. ₦3,500,000

Correct Answer: C

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Question 19
A company issued 5,000 shares of ₦10 each. Calculate the total amount received from share holders.
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 20
A company's depreciation policy is to depreciate its assets by 10% per annum. If the asset is valued at ₦1,000,000, what will be its value after 2 years?
A. ₦900,000
Correct B. ₦800,000
C. ₦700,000
D. ₦600,000

Correct Answer: B

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Question 21
A company uses the double-entry system to record its transactions. The following journal entry was made: Debit: Cash 1,000, Credit: Accounts Payable 1,000. What is the effect of this transaction on the accounting equation?
Correct A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Increases equity and decreases liabilities

Correct Answer: A

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Question 22
A company has the following ledger accounts: Cash 10,000, Accounts Payable 5,000, and Common Stock 15,000. What is the total amount of assets?
Correct A. 20,000
B. 25,000
C. 30,000
D. 35,000

Correct Answer: A

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Question 23
A company has the following cash book transactions: Debit: Cash 1,000, Credit: Accounts Payable 1,000. What is the effect of this transaction on the cash book?
Correct A. Increases cash and decreases accounts payable
B. Decreases cash and increases accounts payable
C. Increases accounts payable and decreases cash
D. Decreases accounts payable and increases cash

Correct Answer: A

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Question 24
A company has the following bank reconciliation statement: Cash 10,000, Bank Statement Balance 12,000. What is the reason for the difference between the two amounts?
Correct A. Bank error
B. Company error
C. Interest earned
D. Fees charged

Correct Answer: A

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Question 25
A company has the following manufacturing account: Cost of Goods Sold 10,000, Work-in-Progress 5,000. What is the total amount of cost of goods sold?
Correct A. 15,000
B. 20,000
C. 25,000
D. 30,000

Correct Answer: A

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