POST UTME WELLSPRING UNIVERSITY 2024 Accounting | Objective

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Question 1
A company issued 5,000, 10% debentures of ₦100 each. The debentures are redeemable at a premium of 10% after 5 years. Calculate the amount of premium payable on redemption.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 2
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurs costs of ₦120,000 and ₦80,000 in direct materials and direct labor, respectively. The Assembly department incurs costs of ₦150,000 and ₦100,000 in direct materials and direct labor, respectively. The company produces 500 units of a product. The selling price per unit is ₦2,500. The company's overhead rate is 150% of direct labor costs. Calculate the total cost of production.
A. ₦1,475,000
B. ₦1,525,000
C. ₦1,575,000
D. ₦1,625,000
Question 3
A company issued 5,000, 10% debentures of ₦100 each. The debentures are redeemable at a premium of 10% after 5 years. Calculate the amount of premium payable on redemption.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 4
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦100,000 and its residual value is ₦20,000, what is the annual depreciation charge if the asset is expected to last for 5 years?
A. ₦15,000
B. ₦16,667
C. ₦20,000
D. ₦25,000
Question 5
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦150,000 respectively. If the profit-sharing ratio is 2:3, what is the share of profit of partner A?
A. ₦40,000
B. ₦60,000
C. ₦80,000
D. ₦100,000
Question 6
A company's trial balance showed the following balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, and Retained Earnings ₦30,000. Prepare a balance sheet for the company.
A. Assets: ₦50,000, Liabilities: ₦20,000, Equity: ₦130,000
B. Assets: ₦100,000, Liabilities: ₦20,000, Equity: ₦80,000
C. Assets: ₦50,000, Liabilities: ₦100,000, Equity: ₦30,000
D. Assets: ₦20,000, Liabilities: ₦50,000, Equity: ₦130,000
Question 7
A trader records the following transactions in his cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦1,000 | | | 2nd Jan | Bank | | ₦500 | | 3rd Jan | Cash | | ₦800 | What is the balance of the cash account?
A. ₦200
B. ₦500
C. ₦800
D. ₦1,000
Question 8
A company's trial balance showed the following balances: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Sales £ 100,000, Cost of Goods Sold £ 60,000. Prepare the company's income statement.
A. £ 40,000
B. £ 50,000
C. £ 60,000
D. £ 70,000
Question 9
A company's balance sheet as at 31st December 2022 is as follows: | Assets | | | | | | --- | --- | --- | --- | --- | | Cash | | | | | | Debtors | | | | | | Stock | | | | | | Total Assets | | | | | | Liabilities | | | | | | Creditors | | | | | | Capital | | | | | | Total Liabilities | | | | | What is the value of the company's capital?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 10
A partnership is formed between three individuals: John, Mary, and David. John contributes ₦500,000, Mary contributes ₦300,000, and David contributes ₦200,000. The partnership earns a profit of ₦150,000. The profit is divided in the ratio 2:3:4. Calculate the amount of profit each partner will receive.
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 11
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the company's quick ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 12
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦100,000 and its residual value is ₦20,000, what is the annual depreciation charge if the asset is expected to last for 5 years?
A. ₦15,000
B. ₦16,667
C. ₦20,000
D. ₦25,000
Question 13
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 5,000. Calculate the total amount received from the issue of shares.
A. £ 105,000
B. £ 110,000
C. £ 115,000
D. £ 120,000
Question 14
A company's balance sheet shows the following balances: | Asset | Liability | Equity | | --- | --- | --- | | Cash | ₦50,000 | | | Bank | | ₦30,000 | | Stock | ₦20,000 | | | Debtors | | ₦10,000 | What is the total of the equity?
A. ₦50,000
B. ₦30,000
C. ₦20,000
D. ₦10,000
Question 15
A company uses the single-entry system of accounting. The company's journal entries for the year are as follows: Debit Cash ₦50,000, Credit Accounts Payable ₦20,000, Debit Common Stock ₦100,000, and Credit Retained Earnings ₦30,000. Prepare a trial balance for the company.
A. Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦30,000
B. Cash ₦100,000, Accounts Payable ₦20,000, Common Stock ₦50,000, Retained Earnings ₦30,000
C. Cash ₦50,000, Accounts Payable ₦100,000, Common Stock ₦20,000, Retained Earnings ₦30,000
D. Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦100,000

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