POST UTME ACHIEVERS UNIVERSITY 2021 Accounting | Objective

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Question 1
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
D. ₦12,000 is due to a deposit in transit
Question 2
A company uses the single-entry system of accounting. The following transactions occurred during the year: 1. Purchased office supplies for ₦5,000 cash. 2. Sold goods for ₦20,000 cash. 3. Purchased a machine for ₦10,000 cash. 4. Paid rent for ₦8,000 cash. What is the total amount of cash transactions?
A. ₦33,000
B. ₦38,000
C. ₦43,000
D. ₦48,000
Question 3
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
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
Question 4
The following is the income statement of XYZ Limited for the year ended 31st December 2021.
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 5
A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department incurs costs of ₦120,000 for direct materials and ₦80,000 for direct labor. The Assembly department incurs costs of ₦150,000 for direct materials and ₦100,000 for direct labor. The company has a total of 10,000 units of product in work-in-progress (WIP) at the end of the period. The total cost of the WIP is ₦1,200,000. What is the total cost of the Cutting department?
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 6
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
B. ₦600,000
C. ₦650,000
D. ₦700,000
Question 7
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.
A. 2:3
B. 3:2
C. 4:3
D. 5:4
Question 8
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
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 9
The following is a trial balance for a partnership between A and B: Debit Cr. Credit Cash 100,000 100,000 Bank 50,000 50,000 Accounts Payable 20,000 20,000 Sales Revenue 150,000 150,000 Cost of Goods Sold 80,000 80,000 Drawings 10,000 10,000 What is the balance in the partnership's capital account?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 10
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?
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 11
The following is the balance sheet of XYZ Limited as at 31st December 2021.
A. ₦2,500,000
B. ₦2,600,000
C. ₦2,700,000
D. ₦2,800,000
Question 12
A company uses a self-balancing ledger to account for its sales and purchases. The ledger has the following accounts: | Account | Debit | Credit | | --- | --- | --- | | Sales | ₦100,000 | | | Purchases | | ₦80,000 | | Cost of Goods Sold | ₦20,000 | | | Gross Profit | | ₦120,000 | What is the total gross profit?
A. ₦100,000
B. ₦120,000
C. ₦140,000
D. ₦160,000
Question 13
The following is a balance sheet for a company: Assets: Cash ₦50,000 Accounts Receivable ₦20,000 Inventory ₦30,000 Total Assets ₦100,000 Liabilities: Accounts Payable ₦20,000 Salaries Payable ₦10,000 Total Liabilities ₦30,000 What is the amount of equity?
A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 14
The following is the trial balance of XYZ Limited as at 31st December 2021.
A. ₦1,500,000
B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000
Question 15
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?
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000

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