POST UTME AL-HIKMAH UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000, Purchases: ₦1,200,000, Returns Outwards: ₦20,000, Returns Inwards: ₦15,000. Calculate the gross profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 2
A company purchased a machine for 10,000 and depreciated it by 10% per year. If the machine was sold after 3 years, what is the total amount of depreciation?
A. ₦3,000
B. ₦4,000
C. ₦5,000
D. ₦6,000
Question 3
A company's profit and loss account shows a net profit of ₦50,000. However, the balance sheet shows a decrease in its equity of ₦20,000. What is the likely cause of this discrepancy?
A. Error in recording a transaction
B. Error in posting a transaction to the ledger
C. Error in preparing the profit and loss account
D. Error in calculating the totals of the balance sheet
Question 4
A company uses the double-entry system of accounting. The company's assets at the beginning of the year were ₦500,000. During the year, the company purchased equipment for ₦200,000 and sold goods for ₦300,000. What is the company's net worth at the end of the year?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 5
A company's trial balance showed the following balances: Accounts Payable 5,000, Accounts Receivable 10,000, Common Stock 30,000, and Retained Earnings 15,000. What is the total amount of the company's liabilities?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 6
A company has a cash book account with a balance of ₦150,000. The company receives a cash deposit of ₦50,000 and pays a bill of ₦20,000. What is the new balance of the cash book account?
A. ₦180,000
B. ₦170,000
C. ₦160,000
D. ₦150,000
Question 7
A company uses the double-entry system of accounting. The company's assets at the beginning of the year were ₦500,000. During the year, the company purchased equipment for ₦200,000 and sold goods for ₦300,000. What is the company's net worth at the end of the year?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 8
A company issued 10,000, 10% debentures of ₦100 each on 1st January 2022. The debentures are redeemable at par after 5 years. Calculate the annual charge for the year ended 31st December 2022.
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 9
A company's Balance Sheet as at 31st December 2020 showed the following balances: Capital £ 50,000, Profit £ 20,000, Drawings £ 10,000. Prepare the company's Profit and Loss Account for the year ended 31st December 2020.
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 10
A company's trading account for the year ended 31st December 2020 showed the following balances: Sales £ 100,000, Purchases £ 80,000, Returns Outwards £ 5,000. Prepare the company's Trading Account for the year ended 31st December 2020.
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 11
A company issued 5,000 shares of 1 par value at a premium of 2 per share. If the company received a total of 15,000, what is the total amount of the premium received?
A. ₦10,000
B. ₦12,000
C. ₦15,000
D. ₦18,000
Question 12
A company issued 10,000 shares of 1 par value at a premium of 3 per share. If the company received a total of 35,000, what is the total amount of the premium received?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 13
A company's cash book shows a balance of ₦10,000. However, the bank statement shows a balance of ₦12,000. What is the likely cause of this discrepancy?
A. Error in recording a deposit
B. Error in recording a withdrawal
C. Error in preparing the bank reconciliation statement
D. Error in calculating the totals of the bank statement
Question 14
A company uses the double-entry system of accounting. The company's assets at the beginning of the year were ₦500,000. During the year, the company purchased equipment for ₦200,000 and sold goods for ₦300,000. What is the company's net worth at the end of the year?
A. ₦600,000
B. ₦700,000
C. ₦800,000
D. ₦900,000
Question 15
A company uses a cash book to record its cash transactions. The cash book has the following accounts: Cash, Bank, and Discounts. The company's cash account balance is ₦100,000 and its bank account balance is ₦50,000. If the company receives a deposit of ₦20,000 and pays a bill of ₦15,000, what is the new balance in the Cash account?
A. ₦115,000
B. ₦105,000
C. ₦115,000
D. ₦105,000

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