Practice Post UTME UNILAG accounting 2022 Past Questions

Question 1

A company's cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the correct explanation for this discrepancy?

A. The company has an overdraft facility with the bank.

Correct B. The company has deposited cash into the bank but the bank has not yet credited the company's account.

C. The company has written a cheque but the bank has not yet debited the company's account.

D. The company has received a bank transfer but the bank has not yet credited the company's account.

Correct Answer: B

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Question 2

A company's trial balance shows a debit balance of ₦50,000 in the account 'Office Equipment'. However, the company's assets include a piece of equipment worth ₦60,000. What is the correct explanation for this discrepancy?

A. The company has not yet depreciated the equipment.

B. The company has not yet recorded the purchase of the equipment.

C. The company has not yet recorded the sale of the equipment.

Correct D. The company has not yet recorded the depreciation of the equipment.

Correct Answer: D

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Question 3

A company's balance sheet shows a current ratio of 2:1. However, the company's current assets are ₦200,000 and its current liabilities are ₦100,000. What is the correct explanation for this discrepancy?

A. The company has not yet recorded the sale of its current assets.

B. The company has not yet recorded the purchase of its current assets.

Correct C. The company has not yet recorded the payment of its current liabilities.

D. The company has not yet recorded the receipt of its current liabilities.

Correct Answer: C

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Question 4

A company's profit and loss account shows a net profit of ₦100,000. However, the company's balance sheet shows a decrease in retained earnings of ₦50,000. What is the correct explanation for this discrepancy?

A. The company has not yet recorded the sale of its assets.

B. The company has not yet recorded the purchase of its assets.

C. The company has not yet recorded the payment of its liabilities.

Correct D. The company has not yet recorded the receipt of its liabilities.

Correct Answer: D

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Question 5

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?

A. ₦10,000

Correct B. ₦15,000

C. ₦20,000

D. ₦25,000

Correct Answer: B

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Question 6

A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 2,000. Prepare the journal entry to record the issue of shares.

Correct A. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Credit Issue Expenses £ 2,000

B. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500

C. Debit Share Capital £ 5,000, Credit Issue Expenses £ 2,000

D. Debit Share Premium £ 2,500, Credit Issue Expenses £ 2,000

Correct Answer: A

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Question 7

A company's balance sheet as at 31st December 20X1 is as follows: Assets: Cash £ 10,000 Debtors £ 20,000 Stock £ 30,000 Total Assets £ 60,000 Liabilities: Creditors £ 15,000 Capital £ 45,000 Total Liabilities £ 60,000 What is the company's capital turnover ratio?

A. 2.00

B. 1.50

Correct C. 1.33

D. 2.50

Correct Answer: C

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Question 8

A company's trial balance as at 31st December 20X1 is as follows: Debit £ Cash £ 10,000 Debtors £ 20,000 Stock £ 30,000 Total Debit £ 60,000 Credit £ Creditors £ 15,000 Capital £ 45,000 Total Credit £ 60,000 What is the company's capital turnover ratio?

A. 2.00

B. 1.50

Correct C. 1.33

D. 2.50

Correct Answer: C

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Question 9

A company issued 5,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 2,000. Prepare the journal entry to record the issue of shares.

Correct A. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500, Credit Issue Expenses £ 2,000

B. Debit Share Capital £ 5,000, Credit Share Premium £ 2,500

C. Debit Share Capital £ 5,000, Credit Issue Expenses £ 2,000

D. Debit Share Premium £ 2,500, Credit Issue Expenses £ 2,000

Correct Answer: A

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Question 10

A company's balance sheet as at 31st December 20X1 is as follows: Assets: Cash £ 10,000 Debtors £ 20,000 Stock £ 30,000 Total Assets £ 60,000 Liabilities: Creditors £ 15,000 Capital £ 45,000 Total Liabilities £ 60,000 What is the company's capital turnover ratio?

A. 2.00

B. 1.50

Correct C. 1.33

D. 2.50

Correct Answer: C

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Question 11

A company uses the percentage of sales method to value its inventory. If the company's sales for the year were ₦1,500,000 and the beginning inventory was ₦300,000, and the ending inventory was ₦450,000, what is the cost of goods sold?

A. ₦1,200,000

Correct B. ₦1,350,000

C. ₦1,500,000

D. ₦1,650,000

Correct Answer: B

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Question 12

A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a net income of ₦200,000, how much of the net income will partner A receive?

Correct A. ₦120,000

B. ₦140,000

C. ₦160,000

D. ₦180,000

Correct Answer: A

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Question 13

A company uses the straight-line method to depreciate its assets. If the asset cost ₦500,000 and has a useful life of 5 years, what is the annual depreciation?

A. ₦100,000

B. ₦80,000

Correct C. ₦60,000

D. ₦40,000

Correct Answer: C

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Question 14

A company has the following trial balance: Debitors ₦300,000, Creditors ₦200,000, Capital ₦500,000. What is the total amount of assets?

A. ₦700,000

B. ₦800,000

Correct C. ₦900,000

D. ₦1,000,000

Correct Answer: C

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Question 15

A company uses the percentage of sales method to value its inventory. If the company's sales for the year were ₦1,500,000 and the beginning inventory was ₦300,000, and the ending inventory was ₦450,000, what is the cost of goods sold?

A. ₦1,200,000

Correct B. ₦1,350,000

C. ₦1,500,000

D. ₦1,650,000

Correct Answer: B

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Question 16

A partnership is formed between two individuals, A and B, with a capital of ₦100,000 each. During the year, A withdraws ₦20,000 for personal use, while B invests an additional ₦30,000. The profit-sharing ratio is 3:2. Calculate the profit-sharing ratio after the adjustments.

A. 2:1

B. 3:1

Correct C. 2:3

D. 1:2

Correct Answer: C

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Question 17

A company prepares its financial statements using the accrual basis of accounting. The company's revenue is ₦500,000, and its expenses are ₦400,000. However, the company also has an accounts receivable balance of ₦100,000 and an accounts payable balance of ₦50,000. Calculate the company's net income.

Correct A. ₦50,000

B. ₦100,000

C. ₦150,000

D. ₦200,000

Correct Answer: A

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Question 18

A company uses the perpetual inventory system. The company's beginning inventory is ₦50,000, and its purchases during the period are ₦200,000. The company also has a sales return of ₦10,000. Calculate the company's cost of goods sold.

A. ₦230,000

Correct B. ₦240,000

C. ₦250,000

D. ₦260,000

Correct Answer: B

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Question 19

A company uses the single-entry system of accounting. The company's beginning balance is ₦100,000, and its transactions during the period include a cash receipt of ₦50,000 and a cash payment of ₦20,000. Calculate the company's ending balance.

A. ₦130,000

B. ₦140,000

Correct C. ₦150,000

D. ₦160,000

Correct Answer: C

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Question 20

A company uses the self-balancing ledger system. The company's beginning balance is ₦100,000, and its transactions during the period include a cash receipt of ₦50,000 and a cash payment of ₦20,000. Calculate the company's ending balance.

A. ₦130,000

B. ₦140,000

Correct C. ₦150,000

D. ₦160,000

Correct Answer: C

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Question 21

A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022, shows the following balances: Cash: ₦120,000, Accounts Payable: ₦150,000, Sales Revenue: ₦500,000, Cost of Goods Sold: ₦300,000, Net Income: ₦100,000. Determine the company's net worth as at 31st December 2022.

A. ₦120,000

Correct B. ₦170,000

C. ₦270,000

D. ₦370,000

Correct Answer: B

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Question 22

A company uses the double-entry system of accounting. The company's ledger accounts show the following balances: Cash: ₦120,000, Accounts Payable: ₦150,000, Sales Revenue: ₦500,000, Cost of Goods Sold: ₦300,000, Net Income: ₦100,000. Determine the company's net worth as at 31st December 2022.

A. ₦120,000

Correct B. ₦170,000

C. ₦270,000

D. ₦370,000

Correct Answer: B

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Question 23

A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022, shows the following balances: Cash: ₦120,000, Accounts Payable: ₦150,000, Sales Revenue: ₦500,000, Cost of Goods Sold: ₦300,000, Net Income: ₦100,000. Determine the company's net worth as at 31st December 2022.

A. ₦120,000

Correct B. ₦170,000

C. ₦270,000

D. ₦370,000

Correct Answer: B

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Question 24

A company uses the double-entry system of accounting. The company's ledger accounts show the following balances: Cash: ₦120,000, Accounts Payable: ₦150,000, Sales Revenue: ₦500,000, Cost of Goods Sold: ₦300,000, Net Income: ₦100,000. Determine the company's net worth as at 31st December 2022.

A. ₦120,000

Correct B. ₦170,000

C. ₦270,000

D. ₦370,000

Correct Answer: B

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Question 25

A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022, shows the following balances: Cash: ₦120,000, Accounts Payable: ₦150,000, Sales Revenue: ₦500,000, Cost of Goods Sold: ₦300,000, Net Income: ₦100,000. Determine the company's net worth as at 31st December 2022.

A. ₦120,000

Correct B. ₦170,000

C. ₦270,000

D. ₦370,000

Correct Answer: B

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