POST UTME VERITAS UNIVERSITY 2018 Accounting | Objective

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Question 1
A self-balancing ledger is used to record transactions in a:
A. Single entry system
B. Double entry system
C. Cash book
D. Bank reconciliation statement
Question 2
A company's cash book shows a balance of ₦ 10,000. The bank statement shows a balance of ₦ 15,000. The company's cash book also shows a debit balance of ₦ 3,000 in the bank column. What is the correct balance in the cash book?
A. ₦ 12,000
B. ₦ 15,000
C. ₦ 18,000
D. ₦ 20,000
Question 3
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. The company pays interest annually. Calculate the amount of interest paid at the end of the first year.
A. ₦50,000
B. ₦50,500
C. ₦51,000
D. ₦51,500
Question 4
A company has the following ledger balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | | | Accounts Payable | | ₦5,000 | | Sales Revenue | ₦20,000 | | | Cost of Goods Sold | | ₦15,000 | What is the net profit for the period?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 5
In a partnership account, what is the correct order of preparation of the following accounts?
A. Trading account, Profit and Loss account, Balance Sheet
B. Balance Sheet, Trading account, Profit and Loss account
C. Profit and Loss account, Trading account, Balance Sheet
D. Trading account, Balance Sheet, Profit and Loss account
Question 6
A company's ledger shows the following transactions:
A. ₦1,500
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 7
A company's cash book shows a balance of ₦ 12,000. The bank statement shows a balance of ₦ 18,000. The company's cash book also shows a credit balance of ₦ 4,000 in the bank column. What is the correct balance in the cash book?
A. ₦ 16,000
B. ₦ 20,000
C. ₦ 24,000
D. ₦ 28,000
Question 8
A company issued 5,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 2,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 60,000
B. ₦ 70,000
C. ₦ 80,000
D. ₦ 90,000
Question 9
A company issued 10,000, 5% debentures of ₦100 each at a premium of 5%. The debentures are redeemable at the end of 10 years. The company pays interest annually. Calculate the amount of interest paid at the end of the first year.
A. ₦25,000
B. ₦25,500
C. ₦26,000
D. ₦26,500
Question 10
A company uses the single-entry system of accounting. The following transactions occurred during the year: January 1: Cash 10,000 January 15: Accounts Receivable 5,000 February 1: Equipment 8,000 March 15: Salaries Expense 2,000 April 1: Inventory 6,000 May 15: Utilities Expense 1,500 June 1: Notes Payable 12,000 July 15: Rent Expense 3,000 August 1: Accounts Payable 9,000 September 15: Depreciation Expense 2,500 October 1: Common Stock 18,000 November 15: Retained Earnings 4,000 December 31: Cost of Goods Sold 15,000 What is the company's net income for the year?
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000
Question 11
A company's trial balance as at December 31, 2022, is as follows: Debit ₦ 50,000 Cash ₦ 20,000 Accounts Payable ₦ 30,000 Equipment ₦ 10,000 Salaries Payable ₦ 40,000 Notes Payable ₦ 20,000 Accounts Receivable ₦ 15,000 Prepaid Rent ₦ 25,000 Inventory ₦ 35,000 Common Stock ₦ 45,000 Retained Earnings Credit ₦ 60,000 Sales Revenue ₦ 25,000 Rent Expense ₦ 30,000 Salaries Expense ₦ 20,000 Utilities Expense ₦ 15,000 Depreciation Expense ₦ 40,000 Cost of Goods Sold What is the company's net income for the year?
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000
Question 12
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦50 each. During the year, 500 units were sold, and 200 units were returned by customers. The company purchased 800 units at ₦60 each and 300 units at ₦70 each. Calculate the cost of goods sold for the year.
A. ₦28,000
B. ₦30,000
C. ₦32,000
D. ₦35,000
Question 13
A government agency is responsible for the collection of taxes. The agency's financial year ends on 31st December 2022. The agency's balance sheet as at 31st December 2022 shows a current liability of ₦1,000,000 and a non-current liability of ₦2,000,000. What is the agency's total liability as at 31st December 2022?
A. ₦3,000,000
B. ₦2,500,000
C. ₦3,500,000
D. ₦2,000,000
Question 14
A company's balance sheet as at 31st December, 2022, showed the following: Share Capital ₦500,000; Profit and Loss Account ₦300,000; Accumulated Depreciation ₦100,000. Prepare the necessary ledger accounts to rectify the errors in the balance sheet.
A. Debit Share Capital ₦100,000; Credit Accumulated Depreciation ₦100,000
B. Debit Profit and Loss Account ₦100,000; Credit Accumulated Depreciation ₦100,000
C. Debit Share Capital ₦100,000; Credit Profit and Loss Account ₦100,000
D. Debit Accumulated Depreciation ₦100,000; Credit Profit and Loss Account ₦100,000
Question 15
A company's trial balance as at 31st December, 2022, showed the following balances: Rent Received ₦150,000; Rent Paid ₦100,000; Depreciation ₦80,000; Interest Received ₦60,000. Prepare the necessary journal entries to rectify the errors in the trial balance.
A. Debit Rent Received ₦50,000; Credit Rent Paid ₦50,000
B. Debit Rent Received ₦30,000; Credit Rent Paid ₦30,000
C. Debit Rent Received ₦50,000; Credit Rent Paid ₦50,000
D. Debit Rent Received ₦70,000; Credit Rent Paid ₦70,000

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