POST UTME BELLS UNIVERSITY 2019 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 2019 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦110,000. The difference of ₦10,000 is due to a dishonored cheque. What is the correct journal entry to record this transaction?
A. Debit Cash A/c ₦10,000, Credit Bank A/c ₦10,000
Correct B. Debit Bank A/c ₦10,000, Credit Cash A/c ₦10,000
C. Debit Dishonored Cheque A/c ₦10,000, Credit Bank A/c ₦10,000
D. Debit Bank A/c ₦10,000, Credit Cash A/c ₦10,000, Debit Dishonored Cheque A/c ₦10,000

Correct Answer: B

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Question 2
A partnership between John and Mary has a capital account balance of ₦50,000. John's capital account balance is ₦30,000, and Mary's capital account balance is ₦20,000. What is the correct journal entry to record the distribution of the partnership's profit?
A. Debit John's Capital A/c ₦10,000, Credit Mary's Capital A/c ₦10,000
Correct B. Debit Profit and Loss A/c ₦10,000, Credit John's Capital A/c ₦5,000, Credit Mary's Capital A/c ₦5,000
C. Debit John's Capital A/c ₦5,000, Credit Mary's Capital A/c ₦5,000
D. Debit Profit and Loss A/c ₦10,000, Credit John's Capital A/c ₦10,000

Correct Answer: B

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Question 3
A company's bank reconciliation statement shows a difference of ₦20,000 between the cash book balance and the bank statement balance. The difference is due to a bank error. What is the correct journal entry to record this transaction?
A. Debit Bank A/c ₦20,000, Credit Cash A/c ₦20,000
Correct B. Debit Cash A/c ₦20,000, Credit Bank A/c ₦20,000
C. Debit Bank Error A/c ₦20,000, Credit Bank A/c ₦20,000
D. Debit Bank A/c ₦20,000, Credit Cash A/c ₦20,000, Debit Bank Error A/c ₦20,000

Correct Answer: B

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Question 4
A company's trading account shows a profit of ₦100,000. The company's profit and loss account shows a net profit of ₦120,000. What is the correct journal entry to record the transfer of the trading account profit to the profit and loss account?
Correct A. Debit Trading A/c ₦100,000, Credit Profit and Loss A/c ₦100,000
B. Debit Profit and Loss A/c ₦120,000, Credit Trading A/c ₦100,000
C. Debit Trading A/c ₦100,000, Credit Profit and Loss A/c ₦120,000
D. Debit Profit and Loss A/c ₦100,000, Credit Trading A/c ₦120,000

Correct Answer: A

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Question 5
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the company's net worth?
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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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 debenture holders.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 7
A manufacturing company has the following departmental expenses: Direct Labour: ₦120,000; Direct Materials: ₦150,000; Factory Overheads: ₦80,000. Calculate the total departmental expenses.
A. ₦350,000
B. ₦380,000
Correct C. ₦410,000
D. ₦440,000

Correct Answer: C

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Question 8
A company's trial balance as at 31st December, 2022, showed the following balances: Cash: ₦120,000; Accounts Payable: ₦80,000; Common Stock: ₦150,000. Prepare the company's balance sheet as at 31st December, 2022.
A. ₦350,000
B. ₦380,000
Correct C. ₦410,000
D. ₦440,000

Correct Answer: C

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Question 9
A company issued 10,000 shares of ₦10 each at a premium of ₦2 per share. Calculate the total amount received from share issue.
A. ₦220,000
B. ₦240,000
Correct C. ₦260,000
D. ₦280,000

Correct Answer: C

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Question 10
A company's trading account for the year ended 31st December, 2022, showed the following balances: Sales: ₦500,000; Cost of Goods Sold: ₦300,000. Calculate the gross profit for the year.
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 11
A company issued 10,000 shares of 1 par value at a premium of 3 per share. Calculate the total amount received from the issue of shares.
A. ₦30,000,000
Correct B. ₦40,000,000
C. ₦50,000,000
D. ₦60,000,000

Correct Answer: B

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Question 12
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000. Calculate the gross profit for the year.
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 13
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦1,000,000; Liabilities: ₦800,000. Calculate the company's net worth.
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

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Question 14
A company issued 5,000 debentures of ₦1,000 each at a premium of 10%. Calculate the total amount received from the issue of debentures.
A. ₦5,000,000
B. ₦5,500,000
Correct C. ₦6,000,000
D. ₦6,500,000

Correct Answer: C

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Question 15
A company's profit and loss account for the year ended 31st December 2022 is as follows: Gross Profit: ₦1,200,000; Operating Expenses: ₦800,000. Calculate the net profit for the year.
A. ₦400,000
B. ₦500,000
Correct C. ₦600,000
D. ₦700,000

Correct Answer: C

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Question 16
A company issues 10,000, 9% debentures of ₦100 each at a premium of 10%. Calculate the total premium received.
A. ₦100,000
Correct B. ₦110,000
C. ₦120,000
D. ₦130,000

Correct Answer: B

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Question 17
A partnership has two partners, A and B. A invests ₦50,000 and B invests ₦30,000. The profit is divided in the ratio 3:2. Calculate the share of profit of A.
A. ₦45,000
B. ₦50,000
Correct C. ₦55,000
D. ₦60,000

Correct Answer: C

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Question 18
A company's trading account shows a profit of ₦200,000. The profit and loss account shows a loss of ₦50,000. The balance sheet shows a decrease in stock of ₦30,000. Calculate the net profit.
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦220,000

Correct Answer: C

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Question 19
A company issues 5,000, 12% debentures of ₦50 each at a premium of 5%. Calculate the total premium received.
A. ₦12,500
B. ₦25,000
Correct C. ₦37,500
D. ₦50,000

Correct Answer: C

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Question 20
A partnership has three partners, A, B, and C. A invests ₦60,000, B invests ₦40,000, and C invests ₦20,000. The profit is divided in the ratio 4:3:2. Calculate the share of profit of C.
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 21
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' while the corresponding credit balance in the 'Rent Paid' account is ₦20,000. What is the correct journal entry to rectify this error?
A. ₦15,000 debit to Rent Paid and ₦20,000 credit to Rent Received
Correct B. ₦15,000 credit to Rent Paid and ₦20,000 debit to Rent Received
C. ₦15,000 debit to Rent Paid and ₦20,000 debit to Rent Received
D. ₦15,000 credit to Rent Paid and ₦20,000 credit to Rent Received

Correct Answer: B

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Question 22
A manufacturing company uses the process costing method to account for its production costs. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦1,500,000 and the Assembly department has a total cost of ₦2,500,000. What is the total cost of production for the company?
Correct A. ₦4,000,000
B. ₦4,500,000
C. ₦5,000,000
D. ₦6,000,000

Correct Answer: A

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Question 23
A company's bank statement shows a balance of ₦50,000 while the company's cash book shows a balance of ₦60,000. The bank statement also shows a debit of ₦10,000 for a cheque that was returned unpaid. What is the correct bank reconciliation statement?
Correct A. ₦50,000 (Bank) + ₦10,000 (returned cheque) = ₦60,000
B. ₦50,000 (Bank) - ₦10,000 (returned cheque) = ₦40,000
C. ₦60,000 (Cash Book) - ₦10,000 (returned cheque) = ₦50,000
D. ₦60,000 (Cash Book) + ₦10,000 (returned cheque) = ₦70,000

Correct Answer: A

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Question 24
A company has a control account for its accounts payable. The control account shows a balance of ₦100,000 while the ledger account for accounts payable shows a balance of ₦120,000. What is the correct journal entry to rectify this error?
A. ₦20,000 debit to Accounts Payable and ₦20,000 credit to Cash
Correct B. ₦20,000 credit to Accounts Payable and ₦20,000 debit to Cash
C. ₦20,000 debit to Accounts Payable and ₦20,000 debit to Cash
D. ₦20,000 credit to Accounts Payable and ₦20,000 credit to Cash

Correct Answer: B

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Question 25
A company has a manufacturing department that produces a product with a selling price of ₦100 per unit. The company has a variable cost of ₦50 per unit and a fixed cost of ₦20,000 per month. What is the break-even point for the company?
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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