POST UTME ABU 2019 Accounting | Objective

Are you preparing for POST UTME ABU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A partnership was formed between three individuals with a capital of ₦1,500,000. The profit-sharing ratio was 3:5:2. Calculate the amount of profit to be distributed to each partner at the end of the year.
A. ₦225,000
Correct B. ₦250,000
C. ₦275,000
D. ₦300,000

Correct Answer: B

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Question 2
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,200,000, and the cost of goods sold is ₦1,000,000. If the company uses a periodic inventory system, what is the value of the inventory at the end of the year?
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

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Question 3
A company has a machine that cost ₦500,000 and has a useful life of 5 years. The machine is depreciated using the straight-line method. What is the annual depreciation charge?
Correct A. ₦100,000
B. ₦50,000
C. ₦75,000
D. ₦25,000

Correct Answer: A

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Question 4
A company has a departmental accounting system. The manufacturing department has a cost of goods sold of ₦1,500,000 and a direct labor cost of ₦200,000. What is the departmental profit?
Correct A. ₦1,300,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000

Correct Answer: A

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Question 5
A company uses the self-balancing ledger system. The ledger has the following accounts: Cash, Accounts Receivable, Inventory, and Equipment. What is the balance of the Cash account?
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,250,000

Correct Answer: C

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Question 6
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.
Correct 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.

Correct Answer: A

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Question 7
A company has the following balance sheet: Assets: ₦1,000,000, Liabilities: ₦500,000, Capital: ₦500,000. Prepare the Balance Sheet for the year.
Correct A. Balance Sheet: Assets: ₦1,000,000, Liabilities: ₦500,000, Capital: ₦500,000.
B. Balance Sheet: Assets: ₦1,000,000, Liabilities: ₦500,000, Capital: ₦500,000.
C. Balance Sheet: Assets: ₦1,000,000, Liabilities: ₦500,000, Capital: ₦500,000.
D. Balance Sheet: Assets: ₦1,000,000, Liabilities: ₦500,000, Capital: ₦500,000.

Correct Answer: A

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Question 8
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
Correct D. ₦500,000

Correct Answer: D

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Question 9
A company's trial balance showed an error of ₦10,000 due to an incorrect posting. The error was discovered and corrected. Calculate the correct net profit.
A. ₦120,000
B. ₦130,000
Correct C. ₦140,000
D. ₦150,000

Correct Answer: C

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Question 10
A company's cash book showed a balance of ₦50,000. The bank statement showed a balance of ₦60,000. Calculate the difference.
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 11
A company's departmental accounts showed a profit of ₦20,000. The company's total profit was ₦100,000. Calculate the profit of the remaining departments.
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 12
A company issued 10,000 shares of ₦10 each. Calculate the total amount received from share holders.
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 13
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?
Correct A. ₦125,000
B. ₦130,000
C. ₦120,000
D. ₦115,000

Correct Answer: A

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Question 14
A company purchases a machine for ₦200,000. The machine has a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦36,000
B. ₦40,000
Correct C. ₦32,000
D. ₦38,000

Correct Answer: C

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Question 15
A company has a control account for its debtors. The control account shows a balance of ₦150,000. The ledger accounts for the debtors show a balance of ₦120,000. What is the correct balance of the control account?
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 16
A company prepares a trial balance. The trial balance shows a difference of ₦5,000 due to an error in the ledger accounts. What is the correct balance of the trial balance?
A. ₦250,000
Correct B. ₦255,000
C. ₦250,000
D. ₦260,000

Correct Answer: B

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Question 17
A company manufactures a product that costs ₦100 to produce. The selling price of the product is ₦150. What is the gross profit per unit?
Correct A. ₦50
B. ₦40
C. ₦30
D. ₦20

Correct Answer: A

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Question 18
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
Correct D. ₦60,000,000

Correct Answer: D

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Question 19
A manufacturing company uses a job costing system. The following data are available for a particular job: direct materials 10,000, direct labor 8,000, and overhead 6,000. Calculate the total cost of the job.
A. ₦24,000
B. ₦24,000
C. ₦24,000
Correct D. ₦24,000

Correct Answer: D

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Question 20
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
Correct D. ₦2,000

Correct Answer: D

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Question 21
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
Correct D. ₦2,000

Correct Answer: D

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Question 22
A company has a control account with the following transactions: debit 10,000, credit 8,000, debit 6,000, credit 4,000. Calculate the net balance in the control account.
A. ₦2,000
B. ₦2,000
C. ₦2,000
Correct D. ₦2,000

Correct Answer: D

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Question 23
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
Correct D. ₦2,000

Correct Answer: D

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Question 24
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
Correct D. ₦2,000

Correct Answer: D

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Question 25
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
Correct D. ₦2,000

Correct Answer: D

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