POST UTME BABCOCK UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as at 31 December 2022 is as follows: | Asset | ₦ | Liability | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Retained Earnings | 10,000 | | Prepaid Rent | 5,000 | | | | | | | | What is the total amount of the company's assets?
A. ₦95,000
B. ₦105,000
C. ₦115,000
D. ₦125,000
Question 2
A firm's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The firm's cash book also shows a debit balance of ₦10,000 in the 'bank' account. What is the correct balance in the firm's cash book?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 3
A company issued 10,000, 9% debentures of ₦100 each. Calculate the total amount received from debenture holders.
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 4
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
C. ₦100,000
D. ₦110,000
Question 5
A company issued a 10% debenture at par. Prepare the journal entry to record the issuance of this debenture.
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
Question 6
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Bank | | ₦15,000 | | 3 Jan | Cash | | ₦5,000 | | 4 Jan | Bank | ₦20,000 | | | 5 Jan | Cash | | ₦8,000 | What is the balance in the cash book?
A. ₦3,000
B. ₦5,000
C. ₦7,000
D. ₦9,000
Question 7
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
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
Question 8
A company purchased a piece of equipment for 10,000 cash. Prepare the journal entry to record the purchase of this equipment.
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
Question 9
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦475,000
B. ₦450,000
C. ₦475,000
D. ₦450,000
Question 10
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
C. ₦1,100,000
D. ₦1,150,000
Question 11
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The bank reconciliation statement reveals a difference of ₦20,000 due to an outstanding cheque. What is the correct balance of the company's cash book?
A. ₦140,000
B. ₦130,000
C. ₦120,000
D. ₦110,000
Question 12
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?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 13
A company issued a 10% debenture at par. Prepare the journal entry to record the issuance of this debenture.
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
Question 14
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.
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
Question 15
A company purchased a machine for ₦120,000 and sold it after 5 years for ₦180,000. Calculate the annual depreciation.
A. ₦12,000
B. ₦15,000
C. ₦12,000
D. ₦15,000

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