POST UTME AL-HIKMAH UNIVERSITY 2019 Accounting | Objective

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Question 1
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Calculate the total amount received from the sale of shares.
A. ₦75,000
B. ₦100,000
Correct C. ₦125,000
D. ₦150,000

Correct Answer: C

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Question 2
A company purchased a machine for ₦120,000. At the end of the first year, its value decreased by 20%. At the end of the second year, its value decreased by a further 15%. Calculate the total depreciation for the two years.
A. ₦24,000
B. ₦30,000
Correct C. ₦36,000
D. ₦42,000

Correct Answer: C

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Question 3
A company issued 10,000 shares of 5 par value at a premium of 2 per share. The shares were sold for 7 each. Calculate the total amount received from the sale of shares.
A. ₦70,000
B. ₦80,000
Correct C. ₦90,000
D. ₦100,000

Correct Answer: C

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Question 4
A company purchased a machine for ₦150,000. At the end of the first year, its value decreased by 15%. At the end of the second year, its value decreased by a further 10%. Calculate the total depreciation for the two years.
A. ₦22,500
B. ₦27,500
Correct C. ₦32,500
D. ₦37,500

Correct Answer: C

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Question 5
A company issued 5,000 shares of 10 par value at a premium of 3 per share. The shares were sold for 12 each. Calculate the total amount received from the sale of shares.
A. ₦60,000
B. ₦70,000
Correct C. ₦80,000
D. ₦90,000

Correct Answer: C

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Question 6
A partnership is formed between two individuals, A and B, with a capital of ₦100,000 each. After 6 months, A withdraws ₦20,000 and B adds ₦15,000. Calculate the new capital of the partnership.
A. ₦115,000
B. ₦120,000
Correct C. ₦125,000
D. ₦130,000

Correct Answer: C

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Question 7
A company issues 5,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
Correct B. ₦52,500
C. ₦55,000
D. ₦57,500

Correct Answer: B

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Question 8
A company purchases a machine for ₦200,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
Correct A. ₦144,000
B. ₦160,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 9
A company issues 10,000 debentures of ₦100 each at a premium of ₦10 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦1,000,000
Correct B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000

Correct Answer: B

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Question 10
A company purchases a machine for ₦300,000 and depreciates it by 15% per annum. Calculate the value of the machine after 2 years.
Correct A. ₦204,000
B. ₦220,000
C. ₦240,000
D. ₦260,000

Correct Answer: A

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Question 11
A company uses the straight-line method of depreciation. If the cost of an asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 12
A government agency is required to prepare a cash flow statement. Which of the following items would be included in the financing activities section?
A. Proceeds from the sale of non-current assets
B. Dividends paid to shareholders
Correct C. Borrowings from banks
D. Repayment of loans

Correct Answer: C

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Question 13
SHARED STIMULUS
[Transaction 1: Cash received from customers ₦50,000; Transaction 2: Cash paid to suppliers ₦30,000]
A business uses the single-entry system of accounting. The following transactions were recorded during the year:
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 14
A partnership agreement requires that profits be shared in the ratio 2:3:4. If the total profit for the year is ₦120,000, how much will each partner receive?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

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Question 15
SHARED STIMULUS
[Transaction 1: Cash received from customers ₦50,000; Transaction 2: Cash paid to suppliers ₦30,000]
A company's cash book shows the following transactions:
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 16
In a partnership account, the capital of a partner who leaves the business is transferred to the remaining partners in the ratio of their existing capitals. If the capital of the remaining partners is in the ratio 3:5 and the partner who leaves has a capital of ₦150,000, what is the total capital of the remaining partners?
A. ₦250,000
Correct B. ₦375,000
C. ₦450,000
D. ₦525,000

Correct Answer: B

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Question 17
A company issued 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount of discount on the debentures.
Correct A. ₦50,000
B. ₦75,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 18
A public sector organization has a cash book balance of ₦500,000 and a bank statement balance of ₦550,000. The bank reconciliation statement shows a difference of ₦20,000 due to outstanding cheques. Calculate the difference due to bank errors.
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 19
A company has a self-balancing ledger with a total debit balance of ₦200,000 and a total credit balance of ₦250,000. Calculate the difference between the two balances.
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 20
A company issued 5,000, 10% shares of ₦10 each at a premium of ₦2. Calculate the amount of premium on the shares.
Correct A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: A

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Question 21
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦12,000

Correct Answer: A

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Question 22
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. What is the net income of the company?
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 23
A company uses the weighted average method of inventory costing. The following data is available: Beginning Inventory ₦30,000, Purchases ₦60,000, Sales ₦40,000, and Ending Inventory ₦20,000. What is the cost of goods sold?
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 24
A company's balance sheet shows the following: Assets ₦500,000, Liabilities ₦200,000, and Equity ₦300,000. What is the current ratio?
A. 2.5
Correct B. 3.0
C. 3.5
D. 4.0

Correct Answer: B

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Question 25
A company's income statement shows the following: Sales ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦100,000, and Net Income ₦100,000. What is the gross margin percentage?
A. 40%
Correct B. 50%
C. 60%
D. 70%

Correct Answer: B

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