Practice post utme bells university accounting 2022 Past Questions

Question 1

A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance sheet at the beginning of the year showed a capital of ₦3,000,000 and drawings of ₦800,000. The balance sheet at the end of the year shows a capital of ₦4,200,000. Calculate the amount of profit transferred to the reserve account.

Correct A. ₦1,200,000

B. ₦1,500,000

C. ₦1,800,000

D. ₦2,000,000

Correct Answer: A

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Question 2

A partnership agreement between two partners, John and David, states that the profit and loss of the business will be shared in the ratio 3:2. If the total profit for the year ended 31st December 2022 is ₦2,400,000, calculate the amount of profit that will be shared by John.

Correct A. ₦2,160,000

B. ₦2,400,000

C. ₦2,640,000

D. ₦3,000,000

Correct Answer: A

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Question 3

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

Correct B. ₦160.00

C. ₦160.00

D. ₦160.00

Correct Answer: B

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Question 4

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

Correct C. ₦800,000

D. ₦1,000,000

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 ₦1,200,000. 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

Correct C. ₦1,200,000

D. ₦1,500,000

Correct Answer: C

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Question 6

The following trial balance of a company is given. Prepare the ledger accounts for the assets, liabilities, and equity.

Correct A. Assets: Cash = ₦10,000, Bank = ₦20,000; Liabilities: Loan = ₦30,000; Equity: Share Capital = ₦40,000

B. Assets: Cash = ₦20,000, Bank = ₦10,000; Liabilities: Loan = ₦40,000; Equity: Share Capital = ₦30,000

C. Assets: Cash = ₦30,000, Bank = ₦40,000; Liabilities: Loan = ₦20,000; Equity: Share Capital = ₦10,000

D. Assets: Cash = ₦40,000, Bank = ₦30,000; Liabilities: Loan = ₦10,000; Equity: Share Capital = ₦20,000

Correct Answer: A

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Question 7

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?

Correct A. ₦18,000

B. ₦20,000

C. ₦22,000

D. ₦25,000

Correct Answer: A

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Question 8

The following is a diagram of a circuit. Identify the component labeled A.

Correct A. Resistor

B. Battery

C. Capacitor

D. Inductor

Correct Answer: A

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Question 9

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.

Correct A. ₦10,500

B. ₦10,000

C. ₦9,500

D. ₦9,000

Correct Answer: A

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Question 10

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.

Correct 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

Correct Answer: A

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Question 11

In a public sector accounting system, what is the primary purpose of the 'Budgetary Control' module?

A. To track and manage cash flows

B. To prepare and present financial statements

Correct C. To ensure compliance with budgetary allocations

D. To monitor and evaluate performance indicators

Correct Answer: C

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Question 12

A company has the following trial balance: Debit: 100,000, Credit: 120,000. What is the correct journal entry to rectify the discrepancy?

A. Debit: 20,000, Credit: 0

Correct B. Debit: 0, Credit: 20,000

C. Debit: 20,000, Credit: 20,000

D. Debit: 0, Credit: 0

Correct Answer: B

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Question 13

In a partnership account, what is the formula for calculating the capital of a partner who has been absent for a year?

Correct A. Capital = (Total Capital x Number of Years) / Number of Partners

B. Capital = (Total Capital x Number of Partners) / Number of Years

C. Capital = (Total Capital x Number of Years) / (Number of Partners + 1)

D. Capital = (Total Capital x Number of Partners) / (Number of Years + 1)

Correct Answer: A

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Question 14

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

Correct B. Debit: 0, Credit: 20,000

C. Debit: 20,000, Credit: 20,000

D. Debit: 0, Credit: 0

Correct Answer: B

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Question 15

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

Correct B. Debit: 0, Credit: 20,000

C. Debit: 20,000, Credit: 20,000

D. Debit: 0, Credit: 0

Correct Answer: B

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Question 16

A company issued 10,000 shares of 50 kobo each at a premium of 20%. Calculate the total amount received from the issue of shares.

A. ₦1,000,000

Correct B. ₦1,500,000

C. ₦2,000,000

D. ₦2,500,000

Correct Answer: B

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Question 17

A trader purchased goods worth ₦120,000 and sold them at a profit of 25%. Calculate the selling price.

A. ₦150,000

B. ₦152,000

Correct C. ₦155,000

D. ₦157,000

Correct Answer: C

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Question 18

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

Correct C. ₦160,000

D. ₦165,000

Correct Answer: C

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Question 19

A company issued 5,000 shares of ₦10 each at a premium of 50%. Calculate the amount received from the issue of shares.

A. ₦250,000

B. ₦300,000

Correct C. ₦350,000

D. ₦400,000

Correct Answer: C

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Question 20

A company's balance sheet showed an error of ₦10,000 in the credit side of the drawings account. What is the correct amount of the drawings account?

A. ₦50,000

B. ₦55,000

Correct C. ₦60,000

D. ₦65,000

Correct Answer: C

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Question 21

A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's financial statements show a credit balance of ₦20,000 in the 'Rent Expense' account. What is the correct treatment for this discrepancy?

Correct A. Debit the 'Rent Expense' account by ₦20,000 and credit the 'Rent Payable' account by ₦20,000.

B. Debit the 'Rent Expense' account by ₦15,000 and credit the 'Rent Payable' account by ₦15,000.

C. Debit the 'Rent Expense' account by ₦20,000 and credit the 'Cash' account by ₦20,000.

D. Debit the 'Rent Expense' account by ₦15,000 and credit the 'Cash' account by ₦15,000.

Correct Answer: A

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Question 22

A partnership agreement between two partners, A and B, states that the profits and losses will be shared in the ratio 3:2. If the total profit for the year is ₦120,000, how much will partner A receive?

Correct A. ₦90,000

B. ₦60,000

C. ₦80,000

D. ₦100,000

Correct Answer: A

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Question 23

A company's balance sheet shows a current asset of ₦50,000 in the 'Accounts Receivable' account. However, the company's trial balance shows a debit balance of ₦20,000 in the 'Accounts Receivable' account. What is the correct treatment for this discrepancy?

Correct A. Debit the 'Accounts Receivable' account by ₦50,000 and credit the 'Cash' account by ₦50,000.

B. Debit the 'Accounts Receivable' account by ₦20,000 and credit the 'Cash' account by ₦20,000.

C. Debit the 'Accounts Receivable' account by ₦50,000 and credit the 'Accounts Payable' account by ₦50,000.

D. Debit the 'Accounts Receivable' account by ₦20,000 and credit the 'Accounts Payable' account by ₦20,000.

Correct Answer: A

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Question 24

A company's trial balance shows a credit balance of ₦30,000 in the 'Salaries Expense' account. However, the company's financial statements show a debit balance of ₦20,000 in the 'Salaries Expense' account. What is the correct treatment for this discrepancy?

Correct A. Debit the 'Salaries Expense' account by ₦30,000 and credit the 'Salaries Payable' account by ₦30,000.

B. Debit the 'Salaries Expense' account by ₦20,000 and credit the 'Salaries Payable' account by ₦20,000.

C. Debit the 'Salaries Expense' account by ₦30,000 and credit the 'Cash' account by ₦30,000.

D. Debit the 'Salaries Expense' account by ₦20,000 and credit the 'Cash' account by ₦20,000.

Correct Answer: A

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Question 25

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?

Correct 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.

Correct Answer: A

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