POST UTME BELLS UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet at the beginning of the year shows a capital of ₦2,000,000 and drawings of ₦400,000. The balance sheet at the end of the year shows a capital of ₦2,800,000. If the company made a profit of ₦800,000, calculate the amount of profit transferred to the reserve account.
A. ₦400,000
B. ₦600,000
C. ₦800,000
D. ₦1,000,000
Question 2
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 1,000 | | | 1/2 | Bank | | 500 | | 1/3 | Cash | | 1,500 | Calculate the balance in the cash book.
A. ₦1,500
B. ₦2,500
C. ₦3,500
D. ₦4,500
Question 3
A company has incomplete records and uses the single entry method of accounting. The following transactions are recorded: Debit: 100,000, Credit: 120,000. What is the correct journal entry to rectify the discrepancy?
A. Debit: 20,000, Credit: 0
B. Debit: 0, Credit: 20,000
C. Debit: 20,000, Credit: 20,000
D. Debit: 0, Credit: 0
Question 4
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 1,000 | | | 1/2 | Bank | | 500 | | 1/3 | Cash | | 1,500 | Calculate the balance in the bank account.
A. ₦500
B. ₦1,000
C. ₦1,500
D. ₦2,000
Question 5
A partnership between two individuals, John and Mary, has the following capital accounts: John's capital = ₦50,000, Mary's capital = ₦30,000. The partnership's profit for the year is ₦80,000. Prepare the capital accounts of John and Mary after the profit is shared in the ratio 2:1.
A. John's capital = ₦60,000, Mary's capital = ₦20,000
B. John's capital = ₦40,000, Mary's capital = ₦40,000
C. John's capital = ₦80,000, Mary's capital = ₦0
D. John's capital = ₦0, Mary's capital = ₦80,000
Question 6
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦5,000, what is the annual depreciation charge if the asset's cost is ₦100,000?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦25,000
Question 7
A company has the following transactions: Purchase of equipment for ₦50,000, Sale of goods for ₦30,000, Purchase of goods for ₦20,000. Prepare the journal entries for these transactions.
A. Debit Equipment = ₦50,000, Credit Cash = ₦50,000; Debit Sales = ₦30,000, Credit Cash = ₦30,000; Debit Purchases = ₦20,000, Credit Cash = ₦20,000
B. Debit Equipment = ₦50,000, Credit Cash = ₦50,000; Debit Sales = ₦30,000, Credit Cash = ₦30,000; Debit Purchases = ₦20,000, Credit Cash = ₦20,000
C. Debit Equipment = ₦50,000, Credit Cash = ₦50,000; Debit Sales = ₦30,000, Credit Cash = ₦30,000; Debit Purchases = ₦20,000, Credit Cash = ₦20,000
D. Debit Equipment = ₦50,000, Credit Cash = ₦50,000; Debit Sales = ₦30,000, Credit Cash = ₦30,000; Debit Purchases = ₦20,000, Credit Cash = ₦20,000
Question 8
A company uses the cash book method of accounting. The following transactions are recorded in the cash book: Debit: 50,000, Credit: 30,000. What is the correct journal entry to rectify the discrepancy?
A. Debit: 20,000, Credit: 0
B. Debit: 0, Credit: 20,000
C. Debit: 20,000, Credit: 20,000
D. Debit: 0, Credit: 0
Question 9
A company's trial balance showed an error of ₦5,000 in the debit side of the purchases account. What is the correct amount of the purchases account?
A. ₦150,000
B. ₦155,000
C. ₦160,000
D. ₦165,000
Question 10
A company uses the weighted average method to value its inventory. The following information is available for the year ended 31st December 2022: Cost of goods available for sale ₦1,800,000, cost of goods sold ₦1,600,000, and the number of units sold 10,000. Calculate the cost of goods sold per unit.
A. ₦160
B. ₦160.00
C. ₦160.00
D. ₦160.00
Question 11
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. ₦475,500
C. ₦475,000
D. ₦475,500
Question 12
A company's balance sheet shows a current liability of ₦40,000 in the 'Accounts Payable' account. However, the company's trial balance shows a debit balance of ₦20,000 in the 'Accounts Payable' account. What is the correct treatment for this discrepancy?
A. Debit the 'Accounts Payable' account by ₦40,000 and credit the 'Cash' account by ₦40,000.
B. Debit the 'Accounts Payable' account by ₦20,000 and credit the 'Cash' account by ₦20,000.
C. Debit the 'Accounts Payable' account by ₦40,000 and credit the 'Accounts Receivable' account by ₦40,000.
D. Debit the 'Accounts Payable' account by ₦20,000 and credit the 'Accounts Receivable' account by ₦20,000.
Question 13
The following is a trial balance for a trading company. Prepare the trading and profit and loss account for the year ended 31st December 2022.
A. Trading Account: Debit Sales: ₦1,500,000 Cost of Goods Sold: ₦1,200,000 Credit Opening Stock: ₦200,000 Purchases: ₦1,000,000 Closing Stock: ₦250,000 Profit: ₦50,000 Profit and Loss Account: Debit Trading Profit: ₦50,000 Credit Opening Balance: ₦0 Closing Balance: ₦50,000
B. Trading Account: Debit Sales: ₦1,500,000 Cost of Goods Sold: ₦1,200,000 Credit Opening Stock: ₦200,000 Purchases: ₦1,000,000 Closing Stock: ₦250,000 Profit: ₦50,000 Profit and Loss Account: Debit Trading Profit: ₦50,000 Credit Opening Balance: ₦0 Closing Balance: ₦50,000
C. Trading Account: Debit Sales: ₦1,500,000 Cost of Goods Sold: ₦1,200,000 Credit Opening Stock: ₦200,000 Purchases: ₦1,000,000 Closing Stock: ₦250,000 Profit: ₦50,000 Profit and Loss Account: Debit Trading Profit: ₦50,000 Credit Opening Balance: ₦0 Closing Balance: ₦50,000
D. Trading Account: Debit Sales: ₦1,500,000 Cost of Goods Sold: ₦1,200,000 Credit Opening Stock: ₦200,000 Purchases: ₦1,000,000 Closing Stock: ₦250,000 Profit: ₦50,000 Profit and Loss Account: Debit Trading Profit: ₦50,000 Credit Opening Balance: ₦0 Closing Balance: ₦50,000
Question 14
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,200,000. The balance sheet at the beginning of the year showed a capital of ₦2,500,000 and drawings of ₦600,000. The balance sheet at the end of the year shows a capital of ₦3,800,000. Calculate the amount of profit transferred to the reserve account.
A. ₦800,000
B. ₦1,000,000
C. ₦1,200,000
D. ₦1,500,000
Question 15
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | 1,000 | | | 1/2 | Bank | | 500 | | 1/3 | Cash | | 1,500 | Calculate the balance in the cash book.
A. ₦1,500
B. ₦2,500
C. ₦3,500
D. ₦4,500

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