POST UTME BABCOCK UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company purchases a machine for ₦800,000 and depreciates it by 15% per annum. Calculate the book value of the machine after 2 years.
A. ₦560,000
B. ₦600,000
C. ₦640,000
D. ₦680,000
Question 2
A company issues 5,000, 12% preference shares of ₦10 each at a premium of ₦2. Calculate the total amount received from preference shareholders.
A. ₦50,000
B. ₦52,000
C. ₦55,000
D. ₦57,000
Question 3
A company has a departmental account for the sales department. The sales department has a budget of ₦100,000 and actual expenses of ₦120,000. Calculate the variance.
A. ₦20,000
B. ₦20,000
C. ₦20,000
D. ₦20,000
Question 4
A company's balance sheet as at 31st December 2020 showed a total equity of ₦1,500,000. The company's profit and loss account for the year ended 31st December 2020 showed a profit of ₦200,000. Calculate the company's retained earnings.
A. ₦1,700,000
B. ₦1,600,000
C. ₦1,500,000
D. ₦1,400,000
Question 5
A company's balance sheet shows the following information: Cash ₦50,000, Accounts Payable ₦30,000, and Common Stock ₦100,000. If the company's total liabilities are ₦80,000, calculate the amount of total equity.
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 6
A company issues 10% debentures of ₦100 each at a premium of 10%. If the company receives a sum of ₦1,000,000 from the debenture holders, calculate the amount of premium received.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 7
A company issued 10,000 9% debentures of ₦100 each. Calculate the amount of interest payable annually.
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 8
A company has issued 1,000 shares of ₦10 each. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 9
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦120,000, calculate the amount of profit that partner A will receive.
A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 10
A company has the following transactions: Purchase of goods ₦1,000,000, Sale of goods ₦1,500,000, Purchase of equipment ₦200,000. Prepare the cash book for the company.
A. ₦1,000,000 (outflow)
B. ₦500,000 (inflow)
C. ₦1,500,000 (outflow)
D. ₦2,000,000 (inflow)
Question 11
A company's balance sheet as at 31st December 2020 showed a total assets of ₦2,500,000. The company's liabilities as at 31st December 2020 showed a total of ₦1,500,000. Calculate the company's net worth.
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 12
A public sector organization has the following transactions for the month of January: Salaries ₦150,000; Rent ₦30,000; Utilities ₦20,000; Travel ₦10,000; Miscellaneous ₦5,000. Prepare a statement of cash flows for the month of January.
A. ₦215,000
B. ₦225,000
C. ₦235,000
D. ₦245,000
Question 13
A company's trial balance shows a debit balance of ₦50,000 in the 'Rent Received' account. What is the correct journal entry to record this transaction?
A. Debit Rent Received ₦50,000, Credit Cash ₦50,000
B. Debit Rent Received ₦50,000, Credit Bank ₦50,000
C. Debit Cash ₦50,000, Credit Rent Received ₦50,000
D. Debit Bank ₦50,000, Credit Rent Received ₦50,000
Question 14
A partnership has two partners: John and Mary. John has a capital of ₦500,000 and Mary has a capital of ₦300,000. What is the ratio of John's capital to Mary's capital?
A. 1:1
B. 1:2
C. 2:1
D. 3:1
Question 15
A company's trial balance shows a debit balance of ₦1,500 in the account 'Rent Received' while the corresponding credit balance in the account 'Rent Paid' is ₦1,200. What is the correct journal entry to rectify this error?
A. Debit Rent Paid ₦300, Credit Rent Received ₦300
B. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Profit and Loss ₦300
C. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Credit Profit and Loss ₦300
D. Debit Rent Paid ₦300, Credit Rent Received ₦300 and Debit Rent Received ₦300

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