POST UTME AAUA 2024 Accounting | Objective

Are you preparing for POST UTME AAUA exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The proceeds from the issue of shares were credited to a share capital account. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital 30,000, Credit Cash 30,000
B. Debit Share Capital 30,000, Credit Share Premium 30,000
C. Debit Share Premium 30,000, Credit Cash 30,000
Correct D. Debit Share Capital 30,000, Credit Share Premium 30,000

Correct Answer: D

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Question 2
A company's trial balance showed a discrepancy of 1,000. The accountant discovered that a 500 credit entry was omitted from the ledger. Prepare the journal entry to correct the error.
A. Debit Cash 500, Credit Sales 500
Correct B. Debit Sales 500, Credit Cash 500
C. Debit Sales 500, Credit Sales 500
D. Debit Cash 500, Debit Sales 500

Correct Answer: B

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Question 3
A company uses the double-entry system of accounting. Prepare the ledger accounts for the following transactions: (i) Purchase of office supplies for 1,000, (ii) Sale of goods for 5,000.
Correct A. Office Supplies 1,000, Sales 5,000
B. Office Supplies 1,000, Purchases 5,000
C. Purchases 1,000, Sales 5,000
D. Office Supplies 1,000, Sales 5,000, Purchases 5,000

Correct Answer: A

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Question 4
A company uses the single-entry system of accounting. Prepare the journal entry to record the following transaction: Sale of goods for 10,000.
Correct A. Debit Sales 10,000, Credit Cash 10,000
B. Debit Cash 10,000, Credit Sales 10,000
C. Debit Sales 10,000, Credit Purchases 10,000
D. Debit Purchases 10,000, Credit Sales 10,000

Correct Answer: A

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Question 5
A company's trading account showed a profit of 20,000. The accountant discovered that a 5,000 expense was omitted from the ledger. Prepare the journal entry to correct the error.
A. Debit Profit 5,000, Credit Expenses 5,000
Correct B. Debit Expenses 5,000, Credit Profit 5,000
C. Debit Profit 5,000, Credit Profit 5,000
D. Debit Expenses 5,000, Debit Profit 5,000

Correct Answer: B

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Question 6
A company issued 10,000 shares of 50% cumulative preference shares at ₦10 per share. The company also issued 50,000 ordinary shares at ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 7
A company has the following transactions: Purchased goods for ₦50,000 on credit; Sold goods for ₦75,000 on credit; Purchased equipment for ₦20,000 in cash. Prepare the cash book and bank reconciliation statement.
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

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Question 8
A company has the following balance sheet: ₦100,000 in cash; ₦50,000 in accounts receivable; ₦20,000 in inventory; ₦30,000 in equipment. Calculate the total assets.
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 9
A company has the following transactions: Purchased goods for ₦50,000 on credit; Sold goods for ₦75,000 on credit; Purchased equipment for ₦20,000 in cash. Prepare the journal entries.
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

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Question 10
A company has the following transactions: Purchased goods for ₦50,000 on credit; Sold goods for ₦75,000 on credit; Purchased equipment for ₦20,000 in cash. Prepare the ledger accounts.
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

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Question 11
A company uses the straight-line method to depreciate its assets. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 12
A trader purchases goods for ₦150,000 and sells them for ₦200,000. Calculate the gross profit.
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 13
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 14
A company has a capital of ₦500,000 and a profit of ₦200,000. Calculate the new capital.
Correct A. ₦700,000
B. ₦600,000
C. ₦500,000
D. ₦400,000

Correct Answer: A

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Question 15
A company has a capital of ₦300,000 and a loss of ₦100,000. Calculate the new capital.
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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Question 16
A company's accounting records show that its total assets increased by ₦1,500,000 and its total liabilities increased by ₦1,200,000. What is the increase in the company's equity?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 17
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurred costs of ₦120,000 and the Assembly department incurred costs of ₦180,000. What is the total cost of production?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 18
A company's assets are valued at ₦1,500,000. The company's liabilities are ₦800,000. What is the company's net worth?
A. ₦700,000
Correct B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: B

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Question 19
A company's trial balance shows the following accounts: Accounts Payable ₦200,000, Accounts Receivable ₦150,000, and Sales Revenue ₦500,000. What is the company's net income?
A. ₦150,000
B. ₦200,000
C. ₦250,000
Correct D. ₦300,000

Correct Answer: D

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Question 20
A company's control account shows the following transactions: Debit ₦100,000, Credit ₦150,000. What is the company's net change in the control account?
A. ₦50,000
Correct B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 21
A company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. The balance on the debit side of the cash book is ₦2,500,000 and the balance on the credit side is ₦3,000,000. The bank statement shows a balance of ₦2,800,000. The bank reconciliation statement shows a difference of ₦50,000 due to an outstanding cheque. Calculate the bank's interest on the overdraft for the year.
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 22
A company's balance sheet as at 31st December 2023 shows the following: Share capital ₦5,000,000, Retained earnings ₦3,000,000, and Accumulated depreciation ₦1,500,000. Calculate the company's net worth.
A. ₦8,500,000
Correct B. ₦9,000,000
C. ₦9,500,000
D. ₦10,000,000

Correct Answer: B

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Question 23
A company's cash book shows the following transactions: 1st January 2023, Cash ₹1,000,000; 15th January 2023, Cash ₹500,000; 31st December 2023, Cash ₹2,000,000. Calculate the company's cash balance as at 31st December 2023.
A. ₦1,500,000
Correct B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000

Correct Answer: B

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Question 24
A company's ledger shows the following transactions: 1st January 2023, Purchases ₹1,000,000; 15th January 2023, Purchases ₹500,000; 31st December 2023, Purchases ₹2,000,000. Calculate the company's purchases for the year.
A. ₦3,000,000
B. ₦3,500,000
Correct C. ₦4,000,000
D. ₦4,500,000

Correct Answer: C

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Question 25
A company's balance sheet as at 31st December 2023 shows the following: Share capital ₹5,000,000, Retained earnings ₹3,000,000, and Accumulated depreciation ₹1,500,000. Calculate the company's net worth.
A. ₦8,500,000
Correct B. ₦9,000,000
C. ₦9,500,000
D. ₦10,000,000

Correct Answer: B

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