POST UTME BABCOCK UNIVERSITY 2019 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's balance sheet as at 31st December 2022 is as follows:
| Assets | ₦ | Liabilities | ₦ |
| --- | --- | --- | --- |
| Cash | 10,000 | Debentures | 20,000 |
| Stock | 30,000 | Bank Loan | 40,000 |
| Debtors | 20,000 | Share Capital | 50,000 |
| Creditors | 10,000 | | |
| | | | |
| | 70,000 | | 110,000 |
Calculate the company's net worth.
Question 2
A company's balance sheet showed an increase in share capital of ₦50,000 and a decrease in reserves of ₦20,000. Calculate the increase in net worth.
Question 3
A company's trial balance shows the following accounts: Accounts Payable ₦40,000, Accounts Receivable ₦20,000, and Common Stock ₦80,000. What is the total amount of liabilities if the company's total assets is ₦180,000?
Question 4
A company uses the double-declining balance method to depreciate its assets. If the asset's cost is ₦150,000, its residual value is ₦0, and its useful life is 5 years, what is the annual depreciation charge?
Question 5
A company uses a self-balancing ledger system. The following transactions occurred during the year: Purchased raw materials worth ₦50,000 on credit from a supplier. Sold goods worth ₦80,000 for cash. What is the net effect on the company's ledger balance?
Question 6
A company's profit and loss account for the year ended 31st December 2022 is as follows:
| Particulars | ₦ | | Particulars | ₦ |
| --- | --- | --- | --- | --- |
| Sales | 100,000 | | Cost of Goods Sold | 60,000 |
| Gross Profit | 40,000 | | Operating Expenses | 20,000 |
| Net Profit | 20,000 | | | |
| | | | |
| | | | |
Calculate the company's net profit margin.
Question 7
A company has the following bank statement: Opening balance: ₦50,000; Deposits: ₦80,000; Withdrawals: ₦30,000. What is the closing balance?
Question 8
A company's balance sheet as at 31st December 2022 is as follows:
| Assets | ₦ | Liabilities | ₦ |
| --- | --- | --- | --- |
| Cash | 10,000 | Debentures | 20,000 |
| Stock | 30,000 | Bank Loan | 40,000 |
| Debtors | 20,000 | Share Capital | 50,000 |
| Creditors | 10,000 | | |
| | | | |
| | 70,000 | | 110,000 |
Calculate the company's current ratio.
Question 9
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the net income for the year is ₦120,000, how much will partner A receive?
Question 10
A company has the following ledger accounts:
Purchases: ₦250,000; Sales: ₦300,000; Wages: ₦40,000; Rent: ₦20,000; Profit and Loss Account: ₦50,000.
Prepare the company's Trading Account.
Question 11
A company's profit and loss account shows a net profit of ₦1,000. The company's balance sheet shows an increase in the value of its assets from ₦1,000 to ₦1,500. What is the percentage increase in the value of its assets?
Question 12
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a net income of ₦200,000, how much will partner A receive as their share of the net income?
Question 13
A company's departmental accounts showed a cost of goods sold of ₦500,000 and a gross profit of ₦150,000. Calculate the gross profit percentage.
Question 14
In a manufacturing company, the following transactions occurred during the year: Purchased raw materials worth ₦100,000 on credit from a supplier. Sold goods worth ₦150,000 for cash. Paid salaries amounting to ₦80,000. What is the net effect on the company's cash balance?
Question 15
A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurred costs of ₦120,000 and the Assembly department incurred costs of ₦180,000. What is the total cost of production for the company?
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