POST UTME AL-HIKMAH UNIVERSITY 2022 Accounting | Objective

Are you preparing for POST UTME AL-HIKMAH UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2022 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank overdraft of ₦30,000. What is the correct balance in the cash book?
Correct A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦90,000

Correct Answer: A

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Question 2
A trial balance is prepared by a company with the following balances: Debitors ₦100,000, Creditors ₦80,000, and Capital ₦200,000. What is the total of the trial balance?
Correct A. ₦380,000
B. ₦280,000
C. ₦380,000
D. ₦280,000

Correct Answer: A

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Question 3
A partnership has two partners, A and B, with capital contributions of ₦200,000 and ₦150,000 respectively. The profit-sharing ratio is 3:2. What is the share of profit for partner A?
Correct A. ₦300,000
B. ₦200,000
C. ₦400,000
D. ₦250,000

Correct Answer: A

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Question 4
A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: Sales ₦500,000, Purchases ₦300,000, and Capital ₦200,000. What is the total of the ledger?
Correct A. ₦700,000
B. ₦500,000
C. ₦700,000
D. ₦500,000

Correct Answer: A

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Question 5
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference is due to a bank overdraft of ₦30,000. What is the correct balance in the cash book?
Correct A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦90,000

Correct Answer: A

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Question 6
A company issues 10,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Prepare the journal entries for the following transactions: (i) issue of debentures, (ii) interest on debentures for the first year, and (iii) redemption of debentures at the end of 5 years.
A. ₦100,000
Correct B. ₦110,000
C. ₦120,000
D. ₦130,000

Correct Answer: B

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Question 7
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦90,000
Correct B. ₦92,000
C. ₦95,000
D. ₦97,000

Correct Answer: B

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Question 8
A company maintains a cash book and a general ledger. The cash book shows a balance of ₦100,000 on 31st December. The bank statement shows a balance of ₦120,000 on the same date. The difference is due to an outstanding cheque of ₦20,000. Prepare the bank reconciliation statement.
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 9
A company has the following balances in its ledger: Cash ₦100,000, Debtors ₦200,000, Creditors ₦150,000, and Capital ₦500,000. Prepare the trial balance.
A. ₦1,250,000
Correct B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000

Correct Answer: B

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Question 10
A company has the following errors in its ledger: (i) a credit of ₦1,000 was posted to the debit side of the cash account, and (ii) a debit of ₦500 was posted to the credit side of the debtors account. Correct the errors and prepare the corrected trial balance.
A. ₦1,250,000
Correct B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000

Correct Answer: B

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Question 11
A company's trial balance shows an error of \pm 500 in the cash account. If the company's cash balance is \pm 10,000, what is the correct cash balance?
Correct A. \pm 9,500
B. \pm 10,500
C. \pm 11,000
D. \pm 12,000

Correct Answer: A

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Question 12
A manufacturing company uses a job costing system. The company has three departments: Cutting, Machining, and Assembly. The Cutting department incurs a direct labor cost of \pm 1,000 and a direct material cost of \pm 500. The Machining department incurs a direct labor cost of \pm 2,000 and a direct material cost of \pm 1,000. The Assembly department incurs a direct labor cost of \pm 3,000 and a direct material cost of \pm 2,000. What is the total cost of production?
A. \pm 7,000
B. \pm 8,000
Correct C. \pm 9,000
D. \pm 10,000

Correct Answer: C

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Question 13
A company's balance sheet shows total assets of \pm 100,000 and total liabilities of \pm 50,000. What is the company's net worth?
A. \pm 25,000
B. \pm 50,000
Correct C. \pm 75,000
D. \pm 100,000

Correct Answer: C

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Question 14
A company issues 1,000 shares of \pm 10 par value at a premium of \pm 5 per share. What is the total amount received from the sale of these shares?
A. \pm 10,000
B. \pm 15,000
C. \pm 20,000
Correct D. \pm 25,000

Correct Answer: D

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Question 15
A company has a single entry system. The company's journal entries show a total debit balance of \pm 10,000 and a total credit balance of \pm 12,000. What is the company's net income?
A. \pm 2,000
B. \pm 4,000
Correct C. \pm 6,000
D. \pm 8,000

Correct Answer: C

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Question 16
A company produces two products, X and Y, using two machines, A and B. Machine A is used for 6 hours a day to produce 120 units of X, while machine B is used for 4 hours a day to produce 80 units of Y. If the company operates for 20 days, calculate the total cost of production.
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 17
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. After 6 months, A withdraws ₦100,000, while B invests an additional ₦50,000. Calculate the new ratio of A's and B's capital.
A. 1:1
B. 2:1
Correct C. 3:2
D. 4:3

Correct Answer: C

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Question 18
A company's trial balance shows the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦200,000, and Net Income ₦50,000. Prepare the company's income statement.
Correct A. ₦650,000
B. ₦700,000
C. ₦750,000
D. ₦800,000

Correct Answer: A

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Question 19
A company uses the job-order costing system. The following data are available: Direct Materials ₦50,000, Direct Labor ₦30,000, and Manufacturing Overhead ₦20,000. Calculate the total cost of production.
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 20
A company's control account shows the following balances: Cash ₦100,000, Accounts Receivable ₦50,000, and Inventory ₦200,000. Prepare the company's balance sheet.
A. ₦350,000
Correct B. ₦400,000
C. ₦450,000
D. ₦500,000

Correct Answer: B

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Question 21
A public sector organization has the following transactions: Purchased office equipment for ₦150,000; paid ₦20,000 cash and the balance on credit. Recorded depreciation of ₦10,000 on the equipment. What is the total amount of assets on the balance sheet?
A. ₦160,000
B. ₦170,000
Correct C. ₦180,000
D. ₦190,000

Correct Answer: C

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Question 22
A company uses the self-balancing ledger system. The ledger has the following accounts: Cash, Accounts Payable, and Sales Revenue. What is the purpose of the Sales Revenue account?
A. To record cash received from customers
B. To record cash paid to suppliers
Correct C. To record sales revenue
D. To record purchases made by the company

Correct Answer: C

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Question 23
A bank reconciliation statement shows a difference of ₦5,000 between the bank statement balance and the cash book balance. What is the possible reason for this difference?
A. Bank charge
B. Interest earned
C. Deposits in transit
Correct D. Cheques issued but not yet presented

Correct Answer: D

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Question 24
A company uses the straight-line method of depreciation. The asset has a useful life of 5 years and a cost of ₦100,000. What is the annual depreciation charge?
A. ₦20,000
Correct B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: B

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Question 25
A company has the following transactions: Purchased a machine for ₦50,000; sold a machine for ₦30,000. What is the gain or loss on the sale of the machine?
A. Gain of ₦20,000
Correct B. Loss of ₦20,000
C. Gain of ₦10,000
D. Loss of ₦10,000

Correct Answer: B

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