POST UTME AFE BABALOLA UNIVERSITY 2024 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company issues 10,000 9% shares of ₦10 each at a premium of ₦2. The shares are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
Question 2
A company's cash book showed a balance of ₦50,000. The company's bank statement showed a balance of ₦75,000. The company's cash book also showed a credit balance of ₦20,000 in the bank overdraft account. The bank statement showed a debit balance of ₦10,000 in the bank overdraft account. Prepare a bank reconciliation statement for the company.
Question 3
A company uses the straight-line method to depreciate its assets. If the asset cost ₦120,000 and has a useful life of 5 years, what is the annual depreciation charge?
Question 4
A company's trading account for the year ended December 31, 2023, is as follows:
Question 5
A company's Public Sector Accounting records show the following:
| Account | Debit | Credit |
| --- | --- | --- |
| Cash | ₦10,000 | ₦0 |
| Accounts Payable | ₦0 | ₦8,000 |
| Sales Revenue | ₦0 | ₦20,000 |
| Cost of Goods Sold | ₦0 | ₦15,000 |
| Net Income | ₦0 | ₦5,000 |
What is the correct balance of the company's Cash account?
Question 6
A company's trial balance as of December 31, 2023, is as follows:
Question 7
A government agency receives a grant of ₦1,000,000 from the federal government. The grant is to be used for a specific project. Prepare the journal entry to record the receipt of the grant.
Question 8
A company's balance sheet as at December 31, 2023, is as follows:
Question 9
A government ministry received ₦1,000,000 from the federal government for the purchase of office equipment. The ministry also received ₦200,000 from the state government for the same purpose. The ministry spent ₦800,000 on the equipment and ₦150,000 on transportation. Prepare a cash book for the ministry for the period.
Question 10
A company uses the weighted average method to value its inventory. The company has two types of inventory: Type A and Type B. Type A has a cost of ₦100 per unit and a selling price of ₦120 per unit. Type B has a cost of ₦80 per unit and a selling price of ₦100 per unit. If the company has 100 units of Type A and 200 units of Type B, what is the total value of the inventory?
Question 11
A company's cash book shows the following transactions:
1. Cash sales: ₦1,000,000
2. Cash purchases: ₦500,000
3. Credit sales: ₦800,000
4. Credit purchases: ₦400,000
5. Dividends received: ₦200,000
Prepare the company's cash book.
Question 12
A partnership is formed between two partners, A and B, who contribute ₦200,000 and ₦300,000 respectively. The profit is to be shared in the ratio 2:3. If the profit for the year is ₦150,000, calculate the amount of profit to be shared by partner A.
Question 13
A manufacturing company uses a job order costing system. The company has two departments: Cutting and Assembly. The Cutting department incurs costs of ₦120,000 and ₦80,000 for direct materials and direct labor, respectively. The Assembly department incurs costs of ₦60,000 and ₦40,000 for direct materials and direct labor, respectively. The company's total direct labor cost for the period is ₦240,000. If the company's total direct materials cost for the period is ₦360,000, what is the total cost of goods manufactured for the period?
Question 14
A company purchases a machine for ₦1,000,000. The machine has an expected useful life of 5 years and a residual value of ₦100,000. Calculate the annual depreciation for the first year using the straight-line method.
Question 15
A company has the following transactions during the year:
Issued 10,000 9% debentures of ₦100 each at a discount of 5%
Purchased a machine for ₦50,000
Sold goods for ₦120,000
Purchased goods for ₦80,000
Paid rent for ₦10,000
Prepare the company's profit and loss account for the year.
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