POST UTME VERITAS UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A bank's cash book shows a balance of ₦1,200,000. The bank reconciliation statement shows a difference of ₦50,000 between the cash book balance and the bank statement balance. What is the correct balance according to the bank statement?
A. ₦1,250,000
B. ₦1,200,000
C. ₦1,150,000
D. ₦1,250,000
Question 2
A partnership has two partners, A and B. Partner A invests 10,000 and Partner B invests 5,000. The partnership earns a profit of 3,000. How much will each partner receive as their share of the profit?
A. Partner A will receive 2,000 and Partner B will receive 1,000.
B. Partner A will receive 1,500 and Partner B will receive 1,500.
C. Partner A will receive 2,500 and Partner B will receive 500.
D. Partner A will receive 1,000 and Partner B will receive 2,000.
Question 3
A company maintains a cash book and a general ledger. The cash book shows a balance of 5,000, but the general ledger shows a balance of 4,000. What is the reason for the difference?
A. The cash book has been incorrectly balanced.
B. The general ledger has been incorrectly balanced.
C. There is a discrepancy between the cash book and the general ledger.
D. The cash book has not been updated recently.
Question 4
A partnership has the following capital accounts: | Partner | Capital | Drawing | Balance | | --- | --- | --- | --- | | A | ₦100,000 | ₦20,000 | | | B | ₦150,000 | ₦30,000 | | | C | ₦200,000 | ₦40,000 | | What is the total capital of the partnership?
A. ₦450,000
B. ₦500,000
C. ₦550,000
D. ₦600,000
Question 5
A company has the following transactions in its manufacturing account: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 2022-01-01 | Raw materials purchased | 100,000 | 0 | | 2022-01-15 | Labour costs | 0 | 50,000 | | 2022-01-20 | Factory overheads | 20,000 | 0 | | 2022-01-25 | Work-in-progress | 0 | 30,000 | What is the total cost of production?
A. ₦180,000
B. ₦190,000
C. ₦200,000
D. ₦210,000
Question 6
A company's trading account for the year ended 31st December 2020 showed a profit of ₦1,500,000. The company also had a profit of ₦250,000 from its investments. Calculate the company's total profit for the year.
A. ₦1,750,000
B. ₦1,750,500
C. ₦1,750,750
D. ₦1,751,000
Question 7
A company uses the single-entry system to record its transactions. The following entry is made: Debit Sales 1,000, Credit Cost of Goods Sold 500. What is the effect of this transaction on the company's income statement?
A. The company's net income will increase by 500.
B. The company's net income will decrease by 500.
C. The company's cost of goods sold will increase by 500.
D. The company's sales will increase by 500.
Question 8
A company has the following transactions in its self-balancing ledger: ₦30,000 debit to purchases account and ₦25,000 credit to purchases account. What is the net effect on the purchases account?
A. ₦5,000 debit
B. ₦5,000 credit
C. ₦10,000 debit
D. ₦10,000 credit
Question 9
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the profit for the year is ₦200,000, how much will A receive?
A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦160,000
Question 10
A company uses the straight-line method of depreciation. If the asset's original cost is ₦200,000 and its residual value is ₦20,000, what is the annual depreciation?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 11
A company has the following transactions in its trading account: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 2022-01-01 | Sales | 100,000 | 0 | | 2022-01-15 | Purchases | 0 | 50,000 | | 2022-01-20 | Returns | 20,000 | 0 | | 2022-01-25 | Discounts | 0 | 30,000 | What is the gross profit?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 12
A company's trading account for the year ended 31st December 2020 showed a profit of ₦1,500,000. The company also had a profit of ₦250,000 from its investments. Calculate the company's total profit for the year.
A. ₦1,750,000
B. ₦1,750,500
C. ₦1,750,750
D. ₦1,751,000
Question 13
Determine the amount of depreciation expense for the year ended December 31, 2020, for a machine purchased on January 1, 2018, at ₦150,000, with a useful life of 5 years and a residual value of ₦20,000.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 14
A government agency has the following transactions in its accounting records: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Revenue | ₦100,000 | | | 15 Jan | Expenditure | | ₦50,000 | | 20 Jan | Transfer to another agency | ₦20,000 | | | 25 Jan | Receipt from another agency | | ₦30,000 | What is the net result of the transactions?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A company has the following transactions in its ledger accounts: ₦20,000 debit to purchases account and ₦15,000 credit to purchases account. What is the net effect on the purchases account?
A. ₦5,000 debit
B. ₦5,000 credit
C. ₦10,000 debit
D. ₦10,000 credit

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