POST UTME AFE BABALOLA UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company purchased a machine for £ 30,000. The machine has a useful life of 6 years and a residual value of £ 6,000. Calculate the annual depreciation using the straight-line method.
A. ₦3,000
B. ₦3,600
C. ₦4,200
D. ₦4,800
Question 2
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. During the year, the partnership made a profit of ₦200,000. Determine the amount of profit that will be shared by each partner.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 3
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The shares were issued for ₦ 120,000. Calculate the amount of premium received.
A. ₦ 20,000
B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000
Question 4
A company's bank statement shows the following transactions: Bank balance ₦50,000, Cash deposited ₦20,000, Cash withdrawn ₦10,000. What is the correct bank reconciliation statement?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 5
A partnership has two partners, A and B. The capital accounts of A and B are £ 15,000 and £ 20,000 respectively. The profit-sharing ratio is 3:4. Calculate the profit-sharing ratio in terms of the capital accounts.
A. 3:4
B. 1:2
C. 2:3
D. 4:3
Question 6
A company uses the single entry system. The following transactions occurred during the year: Depreciation on building: ₦120,000 Depreciation on machinery: ₦80,000 Salaries: ₦240,000 Rent: ₦150,000 Interest on loan: ₦60,000 What is the total amount of expenses for the year?
A. ₦650,000
B. ₦700,000
C. ₦750,000
D. ₦800,000
Question 7
A company's manufacturing account shows the following transactions: Direct materials used ₦100,000, Direct labor costs ₦50,000, Factory overheads ₦30,000. What is the correct manufacturing account entry for the transactions?
A. Debit Work-in-Progress ₦180,000
B. Debit Direct Materials Used ₦100,000, Debit Direct Labor Costs ₦50,000
C. Debit Factory Overheads ₦30,000
D. Debit Work-in-Progress ₦180,000, Debit Factory Overheads ₦30,000
Question 8
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the amount of its non-current liabilities?
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 9
A company issued 5,000 debentures of £ 100 each at a premium of £ 10 per debenture. The company received £ 500,000 as debenture issue proceeds. Calculate the amount of debenture premium.
A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000
Question 10
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 rectify this discrepancy?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
Question 11
A company has the following transactions in its bank reconciliation statement: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Bank balance | 100,000 | | | 2 Jan | Cheques deposited | | 50,000 | | 3 Jan | Cheques issued | 30,000 | | | 4 Jan | Bank charges | | 5,000 | | 5 Jan | Interest earned | | 10,000 | What is the bank balance?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 12
A public sector organization has the following transactions: Received ₦1,500,000 from the government Paid ₦800,000 to suppliers Paid ₦200,000 to employees What is the net increase in assets?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 13
A company has the following transactions in its incomplete records: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash received from customers | 100,000 | | | 2 Jan | Cash paid to suppliers | | 50,000 | | 3 Jan | Cash received from bank | | 20,000 | | 4 Jan | Cash paid to employees | 30,000 | | | 5 Jan | Cash received from customers | | 10,000 | What is the total cash inflows?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 14
A company's trial balance showed a debit balance of ₦ 10,000 in the account 'Rent Received'. The correct balance should be a credit balance of ₦ 10,000. What is the correct journal entry to correct this error?
A. Debit Rent Received ₦ 10,000
B. Credit Rent Received ₦ 10,000
C. Debit Rent Received ₦ 10,000, Credit Rent Paid ₦ 10,000
D. Credit Rent Received ₦ 10,000, Debit Rent Paid ₦ 10,000
Question 15
A company uses the straight-line method of depreciation. The asset has a cost of ₦1,000,000 and a residual value of ₦200,000. The asset is expected to have a useful life of 5 years. Determine the annual depreciation charge.
A. ₦150,000
B. ₦160,000
C. ₦170,000
D. ₦180,000

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