POST UTME BABCOCK UNIVERSITY 2023 Accounting | Objective

Are you preparing for POST UTME BABCOCK UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2023 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A public sector organization has the following transactions for the year ended December 31, 2022: Purchased office equipment for ₦120,000; sold office equipment for ₦80,000; purchased office supplies for ₦30,000; and sold office supplies for ₦20,000. Prepare the statement of changes in equity for the year.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 2
The following trial balance was extracted from the books of a company as at December 31, 2022:
A. ₦120,000
Correct B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 3
A company purchased a machine for ₦500,000 on January 1, 2022. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation for the year ended December 31, 2022.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 4
A company's balance sheet as at December 31, 2022, is as follows: ₦500,000 in cash, ₦200,000 in accounts receivable, ₦150,000 in inventory, ₦100,000 in prepaid rent, and ₦50,000 in equipment. What is the total amount of assets?
A. ₦1,000,000
B. ₦1,050,000
Correct C. ₦1,100,000
D. ₦1,150,000

Correct Answer: C

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Question 5
A company's trial balance as at December 31, 2022, is as follows: ₦500,000 in cash, ₦200,000 in accounts receivable, ₦150,000 in inventory, ₦100,000 in prepaid rent, and ₦50,000 in equipment. What is the total amount of assets?
A. ₦1,000,000
B. ₦1,050,000
Correct C. ₦1,100,000
D. ₦1,150,000

Correct Answer: C

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Question 6
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
Correct A. ₦475,000
B. ₦450,000
C. ₦475,000
D. ₦450,000

Correct Answer: A

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Question 7
A partnership has two partners, A and B. A invested ₦50,000 and B invested ₦30,000. The profit is to be divided in the ratio 2:1. If the total profit is ₦18,000, how much will A receive?
Correct A. ₦12,000
B. ₦10,000
C. ₦12,000
D. ₦10,000

Correct Answer: A

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Question 8
A company purchased a machine for ₦120,000 and sold it after 5 years for ₦180,000. Calculate the annual depreciation.
A. ₦12,000
Correct B. ₦15,000
C. ₦12,000
D. ₦15,000

Correct Answer: B

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Question 9
A company issued 10,000, 5% shares of ₦10 each at a premium of ₦2. Calculate the amount received from the share holders.
A. ₦200,000
Correct B. ₦220,000
C. ₦200,000
D. ₦220,000

Correct Answer: B

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Question 10
A company purchased a machine for ₦150,000 and sold it after 3 years for ₦200,000. Calculate the annual depreciation.
A. ₦15,000
Correct B. ₦20,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 11
A company's trial balance shows a debit balance of ₦50,000 in the account 'Rent Received' and a credit balance of ₦60,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
Correct B. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
C. ₦60,000 debit to Rent Paid and ₦50,000 credit to Rent Received
D. ₦50,000 debit to Rent Received and ₦60,000 credit to Rent Paid

Correct Answer: B

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Question 12
A company's balance sheet shows a current asset of ₦200,000 and a current liability of ₦150,000. What is the net working capital?
Correct A. ₦50,000
B. ₦100,000
C. ₦200,000
D. ₦250,000

Correct Answer: A

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Question 13
A company's profit and loss account shows a trading profit of ₦300,000 and a non-trading income of ₦50,000. What is the total profit?
Correct A. ₦350,000
B. ₦300,000
C. ₦250,000
D. ₦400,000

Correct Answer: A

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Question 14
A company's balance sheet shows a fixed asset of ₦500,000 and a depreciation of ₦100,000. What is the carrying value of the fixed asset?
Correct A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000

Correct Answer: A

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Question 15
A company's trial balance shows a debit balance of ₦200,000 in the account 'Salaries and Wages' and a credit balance of ₦150,000 in the account 'Salaries and Wages Payable'. What is the correct journal entry to rectify this error?
A. ₦50,000 debit to Salaries and Wages Payable and ₦50,000 credit to Salaries and Wages
Correct B. ₦50,000 debit to Salaries and Wages and ₦50,000 credit to Salaries and Wages Payable
C. ₦200,000 debit to Salaries and Wages and ₦150,000 credit to Salaries and Wages Payable
D. ₦150,000 debit to Salaries and Wages Payable and ₦200,000 credit to Salaries and Wages

Correct Answer: B

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Question 16
A company's balance sheet shows a current asset of ₦300,000 and a current liability of ₦250,000. What is the net working capital?
Correct A. ₦50,000
B. ₦100,000
C. ₦200,000
D. ₦250,000

Correct Answer: A

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Question 17
A company's profit and loss account shows a trading profit of ₦400,000 and a non-trading income of ₦75,000. What is the total profit?
Correct A. ₦475,000
B. ₦400,000
C. ₦325,000
D. ₦500,000

Correct Answer: A

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Question 18
A company's balance sheet shows a fixed asset of ₦700,000 and a depreciation of ₦175,000. What is the carrying value of the fixed asset?
Correct A. ₦525,000
B. ₦700,000
C. ₦825,000
D. ₦925,000

Correct Answer: A

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Question 19
A company's trial balance shows a debit balance of ₦350,000 in the account 'Rent Received' and a credit balance of ₦400,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦50,000 debit to Rent Paid and ₦50,000 credit to Rent Received
B. ₦50,000 debit to Rent Received and ₦50,000 credit to Rent Paid
C. ₦400,000 debit to Rent Paid and ₦350,000 credit to Rent Received
D. ₦350,000 debit to Rent Received and ₦400,000 credit to Rent Paid

Correct Answer: VIEW ANSWER

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Question 20
The following is an extract from the financial statements of a public sector entity. Prepare a statement of changes in equity for the year ended 31st December 2022.
Correct A. Statement of changes in equity for the year ended 31st December 2022
B. Statement of financial position as at 31st December 2022
C. Statement of cash flows for the year ended 31st December 2022
D. Statement of comprehensive income for the year ended 31st December 2022

Correct Answer: A

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Question 21
A company issued 10,000 shares of 1 par value at 5 per share. Prepare the journal entry to record the issuance of these shares.
A. Debit Cash 50,000; Credit Common Stock 50,000
Correct B. Debit Common Stock 50,000; Credit Cash 50,000
C. Debit Cash 50,000; Credit Common Stock 10,000
D. Debit Common Stock 10,000; Credit Cash 50,000

Correct Answer: B

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Question 22
A company purchased a piece of equipment for 10,000 cash. Prepare the journal entry to record the purchase of this equipment.
Correct A. Debit Equipment 10,000; Credit Cash 10,000
B. Debit Cash 10,000; Credit Equipment 10,000
C. Debit Equipment 10,000; Credit Accounts Payable 10,000
D. Debit Accounts Payable 10,000; Credit Equipment 10,000

Correct Answer: A

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Question 23
A company issued a 10% debenture at par. Prepare the journal entry to record the issuance of this debenture.
Correct A. Debit Cash 100; Credit Debentures 100
B. Debit Debentures 100; Credit Cash 100
C. Debit Cash 100; Credit Interest Expense 10
D. Debit Interest Expense 10; Credit Debentures 100

Correct Answer: A

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Question 24
A company purchased a piece of equipment for 10,000 cash. Prepare the journal entry to record the purchase of this equipment.
Correct A. Debit Equipment 10,000; Credit Cash 10,000
B. Debit Cash 10,000; Credit Equipment 10,000
C. Debit Equipment 10,000; Credit Accounts Payable 10,000
D. Debit Accounts Payable 10,000; Credit Equipment 10,000

Correct Answer: A

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Question 25
A company issued a 10% debenture at par. Prepare the journal entry to record the issuance of this debenture.
Correct A. Debit Cash 100; Credit Debentures 100
B. Debit Debentures 100; Credit Cash 100
C. Debit Cash 100; Credit Interest Expense 10
D. Debit Interest Expense 10; Credit Debentures 100

Correct Answer: A

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