POST UTME AFE BABALOLA UNIVERSITY 2022 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company purchases a machine for ₦500,000 and depreciates it using the straight-line method over 5 years. Calculate the annual depreciation charge.
Question 2
A company's cash book showed a balance of ₦ 10,000. The company's bank statement showed a balance of ₦ 12,000. The difference between the two balances is ₦ 2,000. Prepare the necessary journal entry to reconcile the two balances.
Question 3
A company's trial balance shows the following account balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the company's net income?
Question 4
A company's trial balance showed a debit balance of ₦ 50,000 in the account 'Bad Debts'. The company's accountant decided to write off ₦ 20,000 of this amount. Prepare the necessary journal entry.
Question 5
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 50,000. Calculate the amount received from the issue of shares.
Question 6
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
Question 7
A company's cash book shows the following transactions:
a) Cash received from customers ₦150,000
b) Cash paid to suppliers ₦80,000
c) Cash paid to employees ₦120,000
d) Cash received from bank ₦200,000
Determine the total cash balance of the company.
Question 8
A company's balance sheet showed the following: Share capital ₦500,000, Reserves ₦200,000, and Accumulated profits ₦300,000. Calculate the total amount of shareholders' funds.
Question 9
A manufacturing company produces 10,000 units of a product per month. The selling price of each unit is ₦200. The variable cost per unit is ₦80, and the fixed cost per month is ₦50,000. Calculate the contribution margin per unit.
Question 10
A company uses the single entry system of accounting. The following transactions were recorded during the year:
a) Purchase of office equipment for ₦120,000
b) Sale of goods for ₦250,000
c) Payment of salaries ₦150,000
d) Purchase of raw materials ₦180,000
Determine the total assets of the company at the end of the year.
Question 11
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. The company's equity is ₦200,000. Calculate the company's return on equity.
Question 12
A company purchased a machine for ₦120,000. It depreciates by 10% per annum. Calculate the value of the machine after 2 years.
Question 13
A company's manufacturing account showed the following: Cost of goods sold ₦1,000,000, Work-in-progress ₦200,000, and Closing stock ₦300,000. Calculate the value of finished goods.
Question 14
A company's bank statement shows a balance of ₦50,000, but its cash book shows a balance of ₦60,000. What is the reason for the difference?
Question 15
A company issued 5,000 ₦ 100 debentures at a premium of ₦ 10 per debenture. Calculate the total amount received from the issue of debentures.
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