POST UTME ABU 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to an outstanding cheque of ₦5,000. Calculate the correct balance of the company's cash.
A. ₦55,000
B. ₦55,500
C. ₦56,000
D. ₦56,500
Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 2:1. What is the journal entry to record the distribution of profit?
A. Debit A's capital account by ₦20,000 and credit B's capital account by ₦10,000.
B. Debit A's capital account by ₦10,000 and credit B's capital account by ₦20,000.
C. Debit A's capital account by ₦30,000 and credit B's capital account by ₦15,000.
D. Debit A's capital account by ₦15,000 and credit B's capital account by ₦30,000.
Question 3
A company has a cash book account with the following transactions: debit 10,000, credit 8,000, debit 6,000, credit 4,000. Calculate the net balance in the cash book account.
A. ₦2,000
B. ₦2,000
C. ₦2,000
D. ₦2,000
Question 4
A company has the following trial balance: Debtors: ₦250,000, Creditors: ₦150,000, Capital: ₦500,000, Profit: ₦75,000, Drawings: ₦30,000. Prepare the Trading and Profit and Loss Account for the year.
A. Trading Account: Debtors: ₦250,000, Creditors: ₦150,000, Capital: ₦500,000, Profit: ₦75,000, Drawings: ₦30,000. Profit and Loss Account: Sales: ₦625,000, Cost of Goods Sold: ₦550,000, Gross Profit: ₦75,000, Operating Expenses: ₦50,000, Net Profit: ₦25,000.
B. Trading Account: Debtors: ₦250,000, Creditors: ₦150,000, Capital: ₦500,000, Profit: ₦75,000, Drawings: ₦30,000. Profit and Loss Account: Sales: ₦625,000, Cost of Goods Sold: ₦550,000, Gross Profit: ₦75,000, Operating Expenses: ₦50,000, Net Profit: ₦25,000.
C. Trading Account: Debtors: ₦250,000, Creditors: ₦150,000, Capital: ₦500,000, Profit: ₦75,000, Drawings: ₦30,000. Profit and Loss Account: Sales: ₦625,000, Cost of Goods Sold: ₦550,000, Gross Profit: ₦75,000, Operating Expenses: ₦50,000, Net Profit: ₦25,000.
D. Trading Account: Debtors: ₦250,000, Creditors: ₦150,000, Capital: ₦500,000, Profit: ₦75,000, Drawings: ₦30,000. Profit and Loss Account: Sales: ₦625,000, Cost of Goods Sold: ₦550,000, Gross Profit: ₦75,000, Operating Expenses: ₦50,000, Net Profit: ₦25,000.
Question 5
A company issued 10,000 shares of ₦10 each. Calculate the total amount received from share holders.
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 6
A company's cash book shows a balance of ₦120,000. The bank statement shows a balance of ₦130,000. The bank reconciliation statement shows a difference of ₦5,000 due to an outstanding cheque. What is the correct balance of the company's cash book after reconciliation?
A. ₦125,000
B. ₦130,000
C. ₦120,000
D. ₦115,000
Question 7
A company has a bank account with the following transactions: debit 10,000, credit 8,000, debit 6,000, credit 4,000. Calculate the net balance in the bank account.
A. ₦2,000
B. ₦2,000
C. ₦2,000
D. ₦2,000
Question 8
A company has a self-balancing ledger with the following transactions: debit 10,000, credit 8,000, debit 6,000, credit 4,000. Calculate the net balance in the self-balancing ledger.
A. ₦2,000
B. ₦2,000
C. ₦2,000
D. ₦2,000
Question 9
A company issued 5,000, 10% debentures of ₦100 each. Calculate the total amount received from debenture holders.
A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000
Question 10
A company uses the single entry system to record its transactions. The following transactions were recorded in the year: Debit: ₦10,000 for rent, ₦5,000 for electricity, ₦3,000 for water, ₦2,000 for office supplies, and ₦1,000 for postage. Credit: ₦15,000 for sales, ₦8,000 for purchases, ₦4,000 for wages, and ₦2,000 for dividends. Determine the net profit or loss for the year.
A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000
Question 11
A company has the following ledger balances: Debit: ₦10,000 for rent ₦5,000 for electricity ₦3,000 for water ₦2,000 for office supplies ₦1,000 for postage Credit: ₦15,000 for sales ₦8,000 for purchases ₦4,000 for wages ₦2,000 for dividends Determine the net profit or loss for the year.
A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000
Question 12
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 2:1. What is the journal entry to record the distribution of profit?
A. Debit A's capital account by ₦20,000 and credit B's capital account by ₦10,000.
B. Debit A's capital account by ₦10,000 and credit B's capital account by ₦20,000.
C. Debit A's capital account by ₦30,000 and credit B's capital account by ₦15,000.
D. Debit A's capital account by ₦15,000 and credit B's capital account by ₦30,000.
Question 13
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 5 each. Calculate the total amount received from the sale of these shares.
A. ₦30,000,000
B. ₦40,000,000
C. ₦50,000,000
D. ₦60,000,000
Question 14
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦130,000. What is the likely reason for the difference?
A. The company has an outstanding deposit with the bank.
B. The company has an outstanding cheque in its favour.
C. The company has an error in its cash book.
D. The company has an error in the bank statement.
Question 15
A company has the following ledger balances: Debit: ₦10,000 for rent ₦5,000 for electricity ₦3,000 for water ₦2,000 for office supplies ₦1,000 for postage Credit: ₦15,000 for sales ₦8,000 for purchases ₦4,000 for wages ₦2,000 for dividends Determine the net profit or loss for the year.
A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000

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