POST UTME BABCOCK UNIVERSITY 2024 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 2024 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦200 each. During the year, 300 units were sold, and 200 units were purchased at ₦250 each. Calculate the cost of goods sold for the year.
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 2
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦200 each. During the year, 300 units were sold, and 200 units were purchased at ₦250 each. Calculate the cost of goods sold for the year.
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 3
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦200 each. During the year, 300 units were sold, and 200 units were purchased at ₦250 each. Calculate the cost of goods sold for the year.
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 4
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦200 each. During the year, 300 units were sold, and 200 units were purchased at ₦250 each. Calculate the cost of goods sold for the year.
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 5
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦200 each. During the year, 300 units were sold, and 200 units were purchased at ₦250 each. Calculate the cost of goods sold for the year.
A. ₦60,000
Correct B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 6
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Prepare the journal entry for the issue of debentures.
A. ₦500,000
Correct B. ₦450,000
C. ₦475,000
D. ₦525,000

Correct Answer: B

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Question 7
A company's trial balance as at 31st December, 2022, showed the following balances: Capital: ₦1,000,000; Profit for the year: ₦500,000; Drawings: ₦200,000. Prepare the company's balance sheet as at 31st December, 2022.
Correct A. ₦1,700,000
B. ₦1,600,000
C. ₦1,800,000
D. ₦1,900,000

Correct Answer: A

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Question 8
A company's cash book showed the following transactions: 1st January, 2022: Cash: ₦10,000; Bank: ₦5,000; 15th January, 2022: Cash: ₦20,000; Bank: ₦10,000. Prepare the company's bank reconciliation statement as at 31st December, 2022.
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 9
A company's manufacturing account for the year ended 31st December, 2022, showed the following: Cost of goods manufactured: ₦500,000; Opening work-in-progress: ₦100,000; Closing work-in-progress: ₦150,000. Calculate the cost of goods sold.
A. ₦450,000
B. ₦475,000
Correct C. ₦500,000
D. ₦525,000

Correct Answer: C

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Question 10
A company's departmental accounts for the year ended 31st December, 2022, showed the following: Sales: ₦1,000,000; Cost of goods sold: ₦800,000; Gross profit: ₦200,000. Calculate the operating profit.
A. ₦250,000
B. ₦275,000
Correct C. ₦300,000
D. ₦325,000

Correct Answer: C

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Question 11
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦1,500,000?
Correct A. ₦300,000
B. ₦150,000
C. ₦75,000
D. ₦60,000

Correct Answer: A

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Question 12
A company's trial balance shows the following account balances: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the total amount of assets?
Correct A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: A

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Question 13
A company uses the perpetual inventory system. If the company purchases 100 units of inventory at ₦50 each, and the previous balance was 50 units at ₦60 each, what is the total cost of inventory?
Correct A. ₦9,000
B. ₦10,000
C. ₦11,000
D. ₦12,000

Correct Answer: A

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Question 14
A company's bank reconciliation statement shows a difference of ₦1,500 between the company's records and the bank's records. What is the cause of the difference?
A. Bank error
Correct B. Company error
C. Both bank and company error
D. Neither bank nor company error

Correct Answer: B

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Question 15
A company uses the FIFO method to value its inventory. If the company purchases 100 units of inventory at ₦50 each, and the previous balance was 50 units at ₦60 each, what is the cost of goods sold?
Correct A. ₦5,000
B. ₦6,000
C. ₦7,000
D. ₦8,000

Correct Answer: A

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Question 16
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦50,000
B. ₦75,000
Correct C. ₦100,000
D. ₦125,000

Correct Answer: C

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Question 17
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. The profit-sharing ratio is 3:2. If the profit for the year is ₦120,000, calculate the amount of profit to be shared by partner A.
A. ₦60,000
Correct B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: B

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Question 18
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
Correct A. ₦315,000
B. ₦350,000
C. ₦400,000
D. ₦450,000

Correct Answer: A

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Question 19
A company issues 10,000, 9% debentures of ₦100 each at a premium of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of premium on the debentures.
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 20
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the value of the machine after 2 years.
A. ₦450,000
Correct B. ₦400,000
C. ₦350,000
D. ₦315,000

Correct Answer: B

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Question 21
A public sector organization has a budget of ₦10 million for the year. The organization has already spent ₦3 million on salaries and ₦2 million on rent. What is the remaining budget for the organization?
Correct A. ₦5 million
B. ₦4 million
C. ₦3 million
D. ₦2 million

Correct Answer: A

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Question 22
A partnership has two partners, A and B. The capital contributions of A and B are ₦50,000 and ₦30,000 respectively. What is the ratio of A's capital to B's capital?
A. 1:1
Correct B. 2:1
C. 1:2
D. 3:1

Correct Answer: B

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Question 23
A company uses the single-entry system of accounting. The company's assets increased by ₦20,000 and its liabilities increased by ₦15,000. What is the net increase in the company's equity?
Correct A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: A

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Question 24
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦100,000, Cost of Goods Sold ₦80,000. What is the net income of the company?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 25
A company uses the self-balancing ledger system. The company's assets increased by ₦30,000 and its liabilities increased by ₦20,000. What is the net increase in the company's equity?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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