Practice post utme achievers university accounting 2021 Past Questions

Question 1

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to record the correction of this error?

A. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

Correct B. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

C. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

D. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid

Correct Answer: B

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Question 2

A company's bank reconciliation statement shows a difference of ₦12,000 between the cash book balance and the bank statement balance. The cash book balance is ₦50,000 and the bank statement balance is ₦62,000. What is the correct explanation for this difference?

A. ₦12,000 is due to a bank error

B. ₦12,000 is due to a cash book error

C. ₦12,000 is due to a combination of bank and cash book errors

Correct D. ₦12,000 is due to a deposit in transit

Correct Answer: D

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Question 3

A company's cash book shows a credit balance of ₦20,000 in the account 'Bank'. However, the bank statement shows a debit balance of ₦15,000. What is the correct journal entry to record the correction of this error?

A. ₦35,000 debit to Bank and ₦35,000 credit to Cash

Correct B. ₦35,000 debit to Cash and ₦35,000 credit to Bank

C. ₦20,000 debit to Bank and ₦20,000 credit to Cash

D. ₦15,000 debit to Bank and ₦15,000 credit to Cash

Correct Answer: B

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Question 4

A company's trial balance shows a debit balance of ₦30,000 in the account 'Salaries' and a credit balance of ₦25,000 in the account 'Wages'. What is the correct journal entry to record the correction of this error?

A. ₦5,000 debit to Salaries and ₦5,000 credit to Wages

Correct B. ₦5,000 debit to Wages and ₦5,000 credit to Salaries

C. ₦5,000 debit to Salaries and ₦5,000 credit to Cash

D. ₦5,000 debit to Cash and ₦5,000 credit to Salaries

Correct Answer: B

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Question 5

A company's bank reconciliation statement shows a difference of ₦18,000 between the cash book balance and the bank statement balance. The cash book balance is ₦60,000 and the bank statement balance is ₦78,000. What is the correct explanation for this difference?

A. ₦18,000 is due to a bank error

B. ₦18,000 is due to a cash book error

C. ₦18,000 is due to a combination of bank and cash book errors

Correct D. ₦18,000 is due to a deposit in transit

Correct Answer: D

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Question 6

A company issued 5,000 9% debentures of ₦100 each. Calculate the amount of interest payable annually.

Correct A. ₦45,000

B. ₦45,500

C. ₦45,000

D. ₦45,500

Correct Answer: A

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Question 7

A company has two departments: Manufacturing and Sales. The Manufacturing department has a direct labor cost of ₦50,000 and an overhead cost of ₦30,000. The Sales department has a direct labor cost of ₦20,000 and an overhead cost of ₦15,000. Calculate the total cost of goods sold.

A. ₦115,000

B. ₦120,000

Correct C. ₦125,000

D. ₦130,000

Correct Answer: C

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Question 8

A company uses the perpetual inventory system. It purchases 100 units of goods at ₦50 each and sells 50 units at ₦75 each. Calculate the cost of goods sold.

A. ₦2,500

B. ₦2,750

Correct C. ₦3,000

D. ₦3,250

Correct Answer: C

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Question 9

A company has the following transactions: Purchased goods for ₦50,000, sold goods for ₦75,000, and purchased equipment for ₦20,000. Calculate the net change in cash.

Correct A. ₦5,000

B. ₦5,500

C. ₦6,000

D. ₦6,500

Correct Answer: A

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Question 10

A company has the following transactions: Purchased goods for ₦50,000, sold goods for ₦75,000, and purchased equipment for ₦20,000. Prepare a statement of cash flows.

A. ₦5,000

B. ₦5,500

Correct C. ₦6,000

D. ₦6,500

Correct Answer: C

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Question 11

A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit of ₦20,000 for an outstanding cheque. The cash book shows a debit of ₦30,000 for a bank charge. What is the correct amount of the bank reconciliation statement?

A. ₦130,000

B. ₦140,000

Correct C. ₦150,000

D. ₦160,000

Correct Answer: C

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Question 12

A company's accounting policy requires that all assets be valued at cost less depreciation. If a company purchases a machine for ₦500,000 and depreciates it by 10% per annum, what is the book value of the machine after 3 years?

A. ₦420,000

B. ₦450,000

Correct C. ₦480,000

D. ₦510,000

Correct Answer: C

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Question 13

A government agency has the following transactions: ₦100,000 cash received from the treasury ₦50,000 cash paid to suppliers ₦20,000 cash received from customers ₦30,000 cash paid to employees What is the net cash inflow for the period?

A. ₦40,000

Correct B. ₦50,000

C. ₦60,000

D. ₦70,000

Correct Answer: B

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Question 14

A company has the following transactions: Issued 10,000 shares at ₦5 per share Received ₦20,000 cash from customers Paid ₦30,000 cash to suppliers What is the total amount of cash received from customers?

Correct A. ₦20,000

B. ₦25,000

C. ₦30,000

D. ₦35,000

Correct Answer: A

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Question 15

A company has the following transactions: Issued 5,000 shares at ₦10 per share Received ₦50,000 cash from customers Paid ₦70,000 cash to suppliers What is the total amount of cash paid to suppliers?

Correct A. ₦70,000

B. ₦80,000

C. ₦90,000

D. ₦100,000

Correct Answer: A

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Question 16

A company uses the process costing method to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of 10,000 units with a cost of ₦50,000. During the period, the Cutting department incurred direct materials of ₦120,000 and direct labor of ₦80,000. The Assembly department has a beginning work-in-process inventory of 5,000 units with a cost of ₦30,000. During the period, the Assembly department incurred direct materials of ₦60,000 and direct labor of ₦40,000. The company uses a predetermined overhead rate of 150% of direct labor costs. The total production cost for the period is ₦500,000. What is the total cost of goods manufactured for the period?

A. ₦550,000

Correct B. ₦600,000

C. ₦650,000

D. ₦700,000

Correct Answer: B

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Question 17

A company prepares its trial balance on December 31, 2022. The trial balance shows the following accounts: Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. The company's accountant discovers that the Sales Revenue account was incorrectly recorded as ₦500,000 instead of ₦400,000. What is the correct amount of net income for the year?

Correct A. ₦100,000

B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: A

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Question 18

A company prepares its balance sheet on December 31, 2022. The balance sheet shows the following accounts: Cash ₦100,000, Accounts Payable ₦50,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. The company's accountant discovers that the Sales Revenue account was incorrectly recorded as ₦500,000 instead of ₦400,000. What is the correct amount of total liabilities for the year?

A. ₦150,000

Correct B. ₦160,000

C. ₦170,000

D. ₦180,000

Correct Answer: B

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Question 19

A company uses the perpetual inventory system. The company's inventory account is debited for the cost of goods sold and credited for the cost of goods purchased. The company's accountant discovers that the cost of goods sold account was incorrectly recorded as ₦300,000 instead of ₦250,000. What is the correct amount of net income for the year?

Correct A. ₦50,000

B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: A

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Question 20

A company uses the periodic inventory system. The company's inventory account is debited for the cost of goods sold and credited for the cost of goods purchased. The company's accountant discovers that the cost of goods sold account was incorrectly recorded as ₦300,000 instead of ₦250,000. What is the correct amount of net income for the year?

Correct A. ₦50,000

B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: A

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Question 21

A company uses the single-entry system. The company's accountant discovers that the sales revenue account was incorrectly recorded as ₦500,000 instead of ₦400,000. What is the correct amount of net income for the year?

Correct A. ₦100,000

B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: A

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Question 22

A company uses the control account system. The company's accountant discovers that the sales revenue account was incorrectly recorded as ₦500,000 instead of ₦400,000. What is the correct amount of net income for the year?

Correct A. ₦100,000

B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: A

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Question 23

A company uses the self-balancing ledger system. The company's accountant discovers that the sales revenue account was incorrectly recorded as ₦500,000 instead of ₦400,000. What is the correct amount of net income for the year?

A. ₦100,000

B. ₦120,000

C. ₦150,000

D. ₦180,000

Correct Answer: VIEW ANSWER

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Question 24

The following is the ledger account of XYZ Manufacturing Company for the year ended 31st December 2021.

Correct A. ₦125,000

B. ₦150,000

C. ₦175,000

D. ₦200,000

Correct Answer: A

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Question 25

A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. After 6 months, A withdraws ₦50,000 and B invests an additional ₦20,000. Calculate the ratio of A's and B's capitals at the end of the year.

Correct A. 2:3

B. 3:2

C. 4:3

D. 5:4

Correct Answer: A

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