POST UTME ABU 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company prepares its final accounts for the year ended 31st December 2022. The trading account shows a profit of ₦500,000. The profit and loss account shows a profit of ₦750,000. Calculate the amount of dividend that will be paid to the shareholders.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 2
A company uses a control account to record its transactions. The control account shows a debit balance of ₦30,000 in the account 'Office Supplies' and a credit balance of ₦25,000 in the account 'Office Equipment'. What is the correct journal entry to correct this error?
A. ₦30,000 debit to Office Supplies and ₦25,000 credit to Office Equipment
B. ₦25,000 debit to Office Equipment and ₦30,000 credit to Office Supplies
C. ₦55,000 debit to Office Supplies and ₦25,000 credit to Office Equipment
D. ₦25,000 debit to Office Equipment and ₦55,000 credit to Office Supplies
Question 3
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct treatment of this error?
A. Debit the 'Rent Received' account and credit the 'Rent Paid' account.
B. Credit the 'Rent Received' account and debit the 'Rent Paid' account.
C. Debit the 'Rent Received' account and credit the 'Cash' account.
D. Credit the 'Rent Received' account and debit the 'Accrued Expenses' account.
Question 4
A partnership is formed between two individuals, John and Mary. John contributes ₦500,000 in cash and a building worth ₦300,000, while Mary contributes ₦200,000 in cash and a machine worth ₦150,000. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. Calculate the amount of profit to be shared by Mary.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 5
A trader purchases goods worth ₦120,000 and sells them at a profit of 25%. Calculate the selling price and the profit made.
A. ₦150,000, ₦30,000
B. ₦144,000, ₦24,000
C. ₦160,000, ₦40,000
D. ₦168,000, ₦48,000
Question 6
A company has the following transactions: Purchased office equipment for ₦50,000, paid ₦20,000 cash, and the balance on account. Sold goods for ₦80,000, received ₦60,000 cash, and the balance on account. Prepare the journal entries for office equipment and sales.
A. ₦30,000
B. ₦30,000
C. ₦30,000
D. ₦30,000
Question 7
A company uses the single entry system of accounting. The following transactions were recorded during the year:
A. ₦100,000
B. ₦120,000
C. ₦150,000
D. ₦180,000
Question 8
A company's bank statement shows a balance of ₦50,000, while the company's cash book shows a balance of ₦60,000. What is the reason for the difference?
A. Bank error
B. Cash book error
C. Deposits not recorded
D. Withdrawals not recorded
Question 9
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount of share capital and the amount of share premium.
A. ₦350,000
B. ₦350,000
C. ₦350,000
D. ₦350,000
Question 10
A company's trial balance as at 31st December 2022 shows the following balances: Accounts Payable ₦150,000, Accounts Receivable ₦80,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦200,000, Interest Expense ₦30,000, Interest Income ₦15,000, Net Income ₦150,000, Retained Earnings ₦250,000, Salaries Expense ₦120,000, Sales Revenue ₦600,000, Taxes Payable ₦25,000, and Utilities Expense ₦40,000. Prepare the company's income statement for the year ended 31st December 2022.
A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000
Question 11
A partnership is formed between two individuals, John and Mary. John contributes ₦500,000 in cash and a building worth ₦300,000, while Mary contributes ₦200,000 in cash and a machine worth ₦150,000. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. Calculate the amount of profit to be shared by John.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 12
A company issued 1,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 500 debentures of ₦100 each at a discount of ₦5 per debenture. What is the total amount received from the issue of shares and debentures?
A. ₦15,500
B. ₦16,500
C. ₦17,500
D. ₦18,500
Question 13
A company uses the perpetual inventory system. The cost of goods sold is ₦150,000 and the net realizable value of closing inventory is ₦30,000. Calculate the cost of goods sold using the periodic inventory system.
A. ₦180,000
B. ₦160,000
C. ₦140,000
D. ₦120,000
Question 14
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct treatment of this error?
A. Debit the 'Rent Received' account and credit the 'Rent Paid' account.
B. Credit the 'Rent Received' account and debit the 'Rent Paid' account.
C. Debit the 'Rent Received' account and credit the 'Cash' account.
D. Credit the 'Rent Received' account and debit the 'Accrued Expenses' account.
Question 15
A manufacturing company uses the process costing method. The company has two departments: Cutting and Assembly. The Cutting department has a production cost of ₦100,000 and the Assembly department has a production cost of ₦150,000. What is the total production cost of the company?
A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000

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