POST UTME BELLS UNIVERSITY 2018 Accounting | Objective

Are you preparing for POST UTME BELLS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance sheet as at 31st December 2022 shows a decrease in inventory of ₦200,000 and an increase in accounts payable of ₦300,000. Calculate the company's net profit for the year.
A. ₦1,700,000
Correct B. ₦1,600,000
C. ₦1,800,000
D. ₦1,900,000

Correct Answer: B

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Question 2
A company's balance sheet as at 31st December 2022 shows the following: Equity Share Capital ₦1,000,000, Retained Earnings ₦500,000, and Accumulated Depreciation ₦200,000. If the company's net assets are ₦1,400,000, what is the value of its goodwill?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 3
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance sheet as at 31st December 2022 shows a decrease in inventory of ₦200,000 and an increase in accounts payable of ₦300,000. If the company's net assets are ₦1,400,000, what is the value of its retained earnings?
A. ₦1,200,000
B. ₦1,300,000
Correct C. ₦1,400,000
D. ₦1,500,000

Correct Answer: C

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Question 4
A company's balance sheet as at 31st December 2022 shows the following: Equity Share Capital ₦1,000,000, Retained Earnings ₦500,000, and Accumulated Depreciation ₦200,000. If the company's net assets are ₦1,400,000, what is the value of its goodwill?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 5
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance sheet as at 31st December 2022 shows a decrease in inventory of ₦200,000 and an increase in accounts payable of ₦300,000. If the company's net assets are ₦1,400,000, what is the value of its retained earnings?
A. ₦1,200,000
B. ₦1,300,000
Correct C. ₦1,400,000
D. ₦1,500,000

Correct Answer: C

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Question 6
A company's trading account for the year ended 31st December 2018 shows a profit of ₦250,000. The balance sheet as at 31st December 2018 shows a decrease in inventory of ₦150,000. Calculate the profit for the year ended 31st December 2018.
A. ₦400,000
Correct B. ₦350,000
C. ₦300,000
D. ₦250,000

Correct Answer: B

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Question 7
A manufacturing company uses a job costing system. The following data is available for the year ended 31st December 2018: Job No. 101: Cost of materials used ₦120,000; Job No. 102: Cost of materials used ₦180,000. Calculate the total cost of materials used for the year ended 31st December 2018.
Correct A. ₦300,000
B. ₦300,000
C. ₦300,000
D. ₦300,000

Correct Answer: A

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Question 8
A company's balance sheet as at 31st December 2018 shows a current liability of ₦500,000. The company's profit and loss account for the year ended 31st December 2018 shows a profit of ₦250,000. Calculate the company's net current liability as at 31st December 2018.
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

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Question 9
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
Correct A. ₦150,000
B. ₦150,000
C. ₦150,000
D. ₦150,000

Correct Answer: A

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Question 10
A company's balance sheet as at 31st December 2018 shows a non-current asset of ₦1,000,000. The company's profit and loss account for the year ended 31st December 2018 shows a profit of ₦250,000. Calculate the company's net non-current asset as at 31st December 2018.
A. ₦1,250,000
Correct B. ₦1,000,000
C. ₦750,000
D. ₦500,000

Correct Answer: B

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Question 11
A company uses the perpetual inventory system. On January 1, 2018, it had 500 units of a product in stock, valued at ₦15 each. During the year, 300 units were sold, and 200 units were purchased at ₦18 each. The company uses the weighted average method to determine the cost of goods sold. Calculate the cost of goods sold for the year.
A. ₦3,600
Correct B. ₦4,200
C. ₦4,500
D. ₦5,000

Correct Answer: B

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Question 12
A manufacturing company has the following data for the year ended December 31, 2018: Cost of Goods Sold ₦1,500,000; Gross Profit ₦800,000; Operating Expenses ₦400,000; Net Profit ₦300,000. Prepare the Trading and Profit and Loss Account for the year.
Correct A. Trading Account: ₦1,500,000; Profit and Loss Account: ₦1,200,000
B. Trading Account: ₦1,200,000; Profit and Loss Account: ₦1,500,000
C. Trading Account: ₦1,500,000; Profit and Loss Account: ₦1,000,000
D. Trading Account: ₦1,200,000; Profit and Loss Account: ₦1,000,000

Correct Answer: A

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Question 13
A company uses the straight-line method to depreciate its assets. The asset was purchased on January 1, 2018, for ₦120,000 and has a useful life of 5 years. Calculate the annual depreciation for the year ended December 31, 2018.
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 14
A company has the following balances in its ledger: Cash ₦50,000; Accounts Receivable ₦20,000; Inventory ₦30,000; Prepaid Rent ₦10,000; Equipment ₦40,000. Prepare the Balance Sheet for the company as at December 31, 2018.
A. Cash ₦50,000; Accounts Receivable ₦20,000; Inventory ₦30,000; Prepaid Rent ₦10,000; Equipment ₦40,000
B. Cash ₦50,000; Accounts Receivable ₦20,000; Inventory ₦30,000; Prepaid Rent ₦10,000; Equipment ₦60,000
Correct C. Cash ₦50,000; Accounts Receivable ₦20,000; Inventory ₦30,000; Prepaid Rent ₦10,000; Equipment ₦40,000
D. Cash ₦50,000; Accounts Receivable ₦20,000; Inventory ₦30,000; Prepaid Rent ₦10,000; Equipment ₦80,000

Correct Answer: C

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Question 15
A company has the following data for the year ended December 31, 2018: Sales ₦1,000,000; Cost of Goods Sold ₦500,000; Operating Expenses ₦200,000; Net Profit ₦300,000. Prepare the Balance Sheet for the company as at December 31, 2018.
A. ₦1,000,000; ₦500,000; ₦200,000; ₦300,000
B. ₦1,000,000; ₦500,000; ₦200,000; ₦400,000
Correct C. ₦1,000,000; ₦500,000; ₦200,000; ₦300,000
D. ₦1,000,000; ₦500,000; ₦200,000; ₦400,000

Correct Answer: C

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Prepare the debenture account.
Correct A. ₦50,000
B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: A

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Question 17
A partnership was formed between A, B, and C with a capital of ₦200,000, ₦150,000, and ₦100,000 respectively. The profit-sharing ratio is 3:2:1. The profit for the year is ₦50,000. Prepare the profit-sharing account.
A. ₦30,000
B. ₦35,000
Correct C. ₦40,000
D. ₦45,000

Correct Answer: C

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Question 18
A company purchased a machine for ₦50,000 and sold it for ₦60,000. The profit on the sale of the machine is credited to the profit and loss account. Prepare the machine account.
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 19
A company issued 10,000, 5% shares of ₦10 each at a premium of ₦2. The shares are redeemable at the end of 3 years. Prepare the share capital account.
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 20
A company purchased a machine for ₦40,000 and sold it for ₦50,000. The profit on the sale of the machine is credited to the profit and loss account. Prepare the machine account.
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 21
A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. The difference is due to a bank overdraft of ₦30,000. What is the correct balance in the cash book?
A. ₦250,000
B. ₦260,000
C. ₦270,000
Correct D. ₦280,000

Correct Answer: D

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Question 22
A company has the following transactions in its cash book: Debit: ₦100,000; Credit: ₦150,000. What is the correct balance in the cash book?
A. ₦50,000
B. ₦0
Correct C. -₦50,000
D. ₦50,000

Correct Answer: C

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Question 23
A company has the following transactions in its cash book: Debit: ₦200,000; Credit: ₦250,000. What is the correct balance in the cash book?
A. ₦50,000
B. ₦0
Correct C. -₦50,000
D. ₦50,000

Correct Answer: C

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Question 24
A company's cash book shows a balance of ₦300,000. However, the bank statement shows a balance of ₦320,000. The difference is due to a bank overdraft of ₦20,000. What is the correct balance in the cash book?
A. ₦300,000
B. ₦310,000
Correct C. ₦320,000
D. ₦330,000

Correct Answer: C

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Question 25
A company has the following transactions in its cash book: Debit: ₦400,000; Credit: ₦450,000. What is the correct balance in the cash book?
A. ₦50,000
B. ₦0
Correct C. -₦50,000
D. ₦50,000

Correct Answer: C

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