Practice Post UTME UNIPORT accounting 2017 Past Questions

Question 1

A company uses the weighted average method to value its inventory. The company has three types of inventory: A, B, and C. The cost of inventory A is ₦120,000, and it has a weightage of 30%. The cost of inventory B is ₦80,000, and it has a weightage of 40%. The cost of inventory C is ₦60,000, and it has a weightage of 30%. What is the total cost of the inventory?

Correct A. ₦180,000

B. ₦200,000

C. ₦220,000

D. ₦240,000

Correct Answer: A

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Question 2

A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 01/01 | Cash | 10,000 | | | 02/01 | Equipment | | 15,000 | | 03/01 | Rent | | 5,000 | | 04/01 | Cash | | 10,000 | What is the net effect of these transactions on the company's cash account?

A. ₦20,000

B. ₦10,000

C. ₦5,000

Correct D. ₦0

Correct Answer: D

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Question 3

A company has the following balance sheet: | Asset | Liability | Equity | | --- | --- | --- | | 100,000 | 50,000 | 50,000 | If the company issues 10,000 shares at ₦10 per share, what will be the new equity?

A. ₦60,000

B. ₦70,000

C. ₦80,000

Correct D. ₦90,000

Correct Answer: D

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Question 4

A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 01/01 | Cash | 10,000 | | | 02/01 | Equipment | | 15,000 | | 03/01 | Rent | | 5,000 | | 04/01 | Cash | | 10,000 | What is the net effect of these transactions on the company's cash account?

A. ₦20,000

B. ₦10,000

C. ₦5,000

Correct D. ₦0

Correct Answer: D

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Question 5

A company has the following balance sheet: | Asset | Liability | Equity | | --- | --- | --- | | 100,000 | 50,000 | 50,000 | If the company issues 10,000 shares at ₦10 per share, what will be the new equity?

A. ₦60,000

B. ₦70,000

C. ₦80,000

Correct D. ₦90,000

Correct Answer: D

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Question 6

A company's trial balance shows an error of ¡£,000 in the debit side of the account 'Rent and Rates'. The error is due to the omission of a receipt of £,000. Prepare the necessary journal entry to rectify the error.

Correct A. Debit Rent and Rates £,000, Credit Cash £,000

B. Debit Rent and Rates £,000, Credit Bank £,000

C. Debit Rent and Rates £,000, Credit Profit and Loss £,000

D. Debit Rent and Rates £,000, Credit Capital £,000

Correct Answer: A

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Question 7

A company's bank statement shows a balance of £,500, but the company's cash book shows a balance of £,800. The bank statement also shows a debit of £,200 for 'Cheques returned unpaid'. Prepare the necessary bank reconciliation statement.

Correct A. £,500 (Bank Statement) + £,200 (Cheques returned unpaid) = £,700

B. £,800 (Cash Book) - £,200 (Cheques returned unpaid) = £,600

C. £,500 (Bank Statement) - £,200 (Cheques returned unpaid) = £,300

D. £,800 (Cash Book) + £,200 (Cheques returned unpaid) = £,1,000

Correct Answer: A

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Question 8

A company's trading account shows a profit of £,500. The company's profit and loss account shows a profit of £,800. Prepare the necessary journal entry to rectify the error.

A. Debit Profit and Loss £,300, Credit Trading Account £,300

Correct B. Debit Trading Account £,300, Credit Profit and Loss £,300

C. Debit Profit and Loss £,300, Credit Capital £,300

D. Debit Trading Account £,300, Credit Bank £,300

Correct Answer: B

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Question 9

A company's balance sheet shows a capital of £,000. The company's profit and loss account shows a profit of £,800. Prepare the necessary journal entry to rectify the error.

A. Debit Capital £,800, Credit Profit and Loss £,800

Correct B. Debit Profit and Loss £,800, Credit Capital £,800

C. Debit Capital £,800, Credit Bank £,800

D. Debit Profit and Loss £,800, Credit Trading Account £,800

Correct Answer: B

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Question 10

A company's trial balance shows an error of ¡£,000 in the debit side of the account 'Rent and Rates'. The error is due to the omission of a receipt of £,000. Prepare the necessary journal entry to rectify the error.

Correct A. Debit Rent and Rates £,000, Credit Cash £,000

B. Debit Rent and Rates £,000, Credit Bank £,000

C. Debit Rent and Rates £,000, Credit Profit and Loss £,000

D. Debit Rent and Rates £,000, Credit Capital £,000

Correct Answer: A

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Question 11

A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference of ₦30,000 is due to a dishonored cheque of ₦20,000 and an NSF cheque of ₦10,000. What is the correct journal entry to record the NSF cheque?

A. Debit NSF Cheque ₹10,000, Credit Cash ₹10,000

B. Debit NSF Cheque ₹10,000, Debit Dishonored Cheque ₹20,000, Credit Cash ₹30,000

Correct C. Debit NSF Cheque ₹10,000, Credit Dishonored Cheque ₹20,000, Credit Cash ₹30,000

D. Debit NSF Cheque ₹10,000, Credit NSF Cheque ₹10,000, Credit Cash ₹20,000

Correct Answer: C

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Question 12

A company's trading account shows a profit of ₦50,000. However, the profit and loss account shows a loss of ₦20,000. What is the correct journal entry to record the difference?

A. Debit Profit ₹50,000, Credit Loss ₹20,000

Correct B. Debit Loss ₹20,000, Credit Profit ₹50,000

C. Debit Profit ₹50,000, Credit Profit ₹30,000

D. Debit Loss ₹20,000, Credit Loss ₹30,000

Correct Answer: B

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Question 13

A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the company's equity?

Correct A. ₦200,000

B. ₦300,000

C. ₦400,000

D. ₦500,000

Correct Answer: A

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Question 14

A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference of ₦30,000 is due to a dishonored cheque of ₦20,000 and an NSF cheque of ₦10,000. What is the correct journal entry to record the dishonored cheque?

Correct A. Debit Dishonored Cheque ₹20,000, Credit Cash ₹20,000

B. Debit NSF Cheque ₹10,000, Debit Dishonored Cheque ₹20,000, Credit Cash ₹30,000

C. Debit NSF Cheque ₹10,000, Credit Dishonored Cheque ₹20,000, Credit Cash ₹30,000

D. Debit NSF Cheque ₹10,000, Credit NSF Cheque ₹10,000, Credit Cash ₹20,000

Correct Answer: A

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Question 15

A company's trading account shows a profit of ₦50,000. However, the profit and loss account shows a loss of ₦20,000. What is the correct journal entry to record the difference?

A. Debit Profit ₹50,000, Credit Loss ₹20,000

Correct B. Debit Loss ₹20,000, Credit Profit ₹50,000

C. Debit Profit ₹50,000, Credit Profit ₹30,000

D. Debit Loss ₹20,000, Credit Loss ₹30,000

Correct Answer: B

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Question 16

A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5% debentures of ₦100 each. Calculate the total amount received from the issue of shares and debentures.

A. ₦1,050,000

Correct B. ₦1,050,500

C. ₦1,050,000

D. ₦1,050,500

Correct Answer: B

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Question 17

A company uses the straight-line method of depreciation. If the asset has a useful life of 5 years and a residual value of ₦20,000, what is the annual depreciation charge if the asset cost ₦150,000?

Correct A. ₦25,000

B. ₦30,000

C. ₦25,000

D. ₦30,000

Correct Answer: A

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Question 18

A company has the following ledger accounts: Purchases, Sales, Returns Outwards, Returns Inwards, and Wages. Prepare a self-balancing ledger for the company using the given accounts.

Correct A. Purchases | Sales | Returns Outwards | Returns Inwards | Wages

B. Purchases | Sales | Returns Inwards | Returns Outwards | Wages

C. Purchases | Sales | Returns Outwards | Returns Inwards | Wages

D. Purchases | Sales | Returns Inwards | Returns Outwards | Wages

Correct Answer: A

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Question 19

A company uses the single-entry system of accounting. The company's journal entries for the year are as follows: Debit Purchases ₦100,000, Credit Returns Inwards ₦20,000. Prepare the company's ledger accounts.

A. Purchases | ₦100,000 | Returns Inwards | ₦20,000

B. Purchases | ₦80,000 | Returns Inwards | ₦20,000

Correct C. Purchases | ₦100,000 | Returns Inwards | ₦20,000

D. Purchases | ₦80,000 | Returns Inwards | ₦20,000

Correct Answer: C

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Question 20

A company has the following trial balance: Purchases ₦100,000, Sales ₦150,000, Returns Outwards ₦20,000, Returns Inwards ₦10,000, Wages ₦30,000. Prepare the company's ledger accounts.

Correct A. Purchases | ₦100,000 | Sales | ₦150,000 | Returns Outwards | ₦20,000 | Returns Inwards | ₦10,000 | Wages | ₦30,000

B. Purchases | ₦100,000 | Sales | ₦150,000 | Returns Outwards | ₦20,000 | Returns Inwards | ₦10,000 | Wages | ₦30,000

C. Purchases | ₦100,000 | Sales | ₦150,000 | Returns Outwards | ₦20,000 | Returns Inwards | ₦10,000 | Wages | ₦30,000

D. Purchases | ₦100,000 | Sales | ₦150,000 | Returns Outwards | ₦20,000 | Returns Inwards | ₦10,000 | Wages | ₦30,000

Correct Answer: A

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Question 21

A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount of share capital and the amount of share premium.

Correct A. ₦350,000

B. ₦300,000

C. ₦250,000

D. ₦200,000

Correct Answer: A

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Question 22

A company's assets are valued at ₦1,000,000. The company's liabilities are ₦500,000. Calculate the company's net worth.

A. ₦500,000

Correct B. ₦750,000

C. ₦1,000,000

D. ₦1,500,000

Correct Answer: B

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Question 23

A company's profit is ₦200,000. The company's tax rate is 25%. Calculate the company's tax liability.

A. ₦50,000

Correct B. ₦100,000

C. ₦150,000

D. ₦200,000

Correct Answer: B

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Question 24

A company's assets are valued at ₦1,500,000. The company's liabilities are ₦1,000,000. The company's equity is ₦500,000. Calculate the company's return on equity.

A. 25%

Correct B. 50%

C. 75%

D. 100%

Correct Answer: B

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Question 25

A company's profit is ₦300,000. The company's tax rate is 25%. Calculate the company's net profit.

A. ₦225,000

B. ₦250,000

C. ₦275,000

Correct D. ₦300,000

Correct Answer: D

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