POST UTME BELLS UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's balance sheet as of December 31, 2022, is as follows: Assets Cash ₦20,000 Inventory ₦30,000 Prepaid Rent ₦10,000 Total ₦60,000 Liabilities Accounts Payable ₦10,000 Notes Payable ₦20,000 Total ₦30,000 Equity Common Stock ₦100,000 Retained Earnings ₦30,000 Total ₦130,000 What is the total equity of the company?
A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000
Question 2
A company maintains the following cash book: Date | Particulars | Debit | Credit 31st Dec, 2022 | Cash | ₦ 50,000 | ₦ 20,000 31st Dec, 2022 | Bank | ₦ 20,000 | ₦ 50,000 31st Dec, 2022 | Debtors | ₦ 30,000 | ₦ 10,000 31st Dec, 2022 | Creditors | ₦ 10,000 | ₦ 30,000 Prepare the bank reconciliation statement.
A. Bank Balance ₦ 70,000, Cash Balance ₦ 20,000
B. Bank Balance ₦ 20,000, Cash Balance ₦ 70,000
C. Bank Balance ₦ 50,000, Cash Balance ₦ 20,000
D. Bank Balance ₦ 20,000, Cash Balance ₦ 50,000
Question 3
A company's trial balance as of December 31, 2022, is as follows: Debit Accounts Payable ₦10,000 Accrued Expenses ₦5,000 Cash ₦20,000 Equipment ₦50,000 Inventory ₦30,000 Prepaid Rent ₦10,000 Salaries Payable ₦8,000 Total ₦123,000 Credit Accounts Receivable ₦25,000 Accrued Revenue ₦12,000 Common Stock ₦100,000 Dividends ₦5,000 Equipment ₦50,000 Notes Payable ₦20,000 Retained Earnings ₦30,000 Total ₦142,000 What is the balance of the Retained Earnings account?
A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000
Question 4
A company's trial balance shows an error of ₦5,000 due to an incorrect posting of a credit entry. The correct entry should have been a debit of ₦5,000. What is the correct journal entry to rectify this error?
A. Credit Cash ₦5,000, Debit Profit and Loss ₦5,000
B. Credit Profit and Loss ₦5,000, Debit Cash ₦5,000
C. Credit Profit and Loss ₦5,000, Debit Capital ₦5,000
D. Credit Capital ₦5,000, Debit Profit and Loss ₦5,000
Question 5
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5% debentures of ₦ 10,000 at 5% discount. Prepare the journal entries to record the issue of shares and debentures.
A. Debit Share Capital ₦ 20,000, Credit Cash ₦ 20,000
B. Debit Share Capital ₦ 10,000, Credit Cash ₦ 10,000
C. Debit Share Capital ₦ 20,000, Credit Cash ₦ 10,000
D. Debit Share Capital ₦ 10,000, Credit Cash ₦ 20,000
Question 6
A company uses the double-entry system to record its transactions. The company's ledger shows the following balances: Assets ₦100,000, Liabilities ₦50,000, and Equity ₦50,000. What is the company's net worth?
A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000
Question 7
The following are the balances of the ledger accounts of a company as at 31st December, 2022: Cash ₦ 50,000, Bank ₦ 20,000, Debtors ₦ 30,000, Creditors ₦ 10,000, Capital ₦ 100,000, Profit ₦ 20,000. Prepare the trial balance.
A. Cash ₦ 50,000, Bank ₦ 20,000, Debtors ₦ 30,000, Creditors ₦ 10,000, Capital ₦ 100,000, Profit ₦ 20,000
B. Cash ₦ 20,000, Bank ₦ 50,000, Debtors ₦ 30,000, Creditors ₦ 10,000, Capital ₦ 100,000, Profit ₦ 20,000
C. Cash ₦ 50,000, Bank ₦ 20,000, Debtors ₦ 10,000, Creditors ₦ 30,000, Capital ₦ 100,000, Profit ₦ 20,000
D. Cash ₦ 20,000, Bank ₦ 50,000, Debtors ₦ 10,000, Creditors ₦ 30,000, Capital ₦ 100,000, Profit ₦ 20,000
Question 8
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 5 Jan | Bank | | 8,000 | | 10 Jan | Cash | | 12,000 | | 15 Jan | Bank | | 5,000 | What is the balance in the bank account?
A. ₦2,000
B. ₦8,000
C. ₦12,000
D. ₦20,000
Question 9
A company's bank statement shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 5 Jan | Bank | | 8,000 | | 10 Jan | Cash | | 12,000 | | 15 Jan | Bank | | 5,000 | What is the balance in the cash account?
A. ₦2,000
B. ₦8,000
C. ₦12,000
D. ₦20,000
Question 10
A company has the following transactions in its cash book: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash received from customers | 10,000 | 0 | | 2 Jan | Cash paid to suppliers | 0 | 5,000 | | 3 Jan | Cash received from customers | 8,000 | 0 | | 4 Jan | Cash paid to employees | 0 | 3,000 | What is the balance on the cash account at the end of the period?
A. ₦13,000
B. ₦15,000
C. ₦17,000
D. ₦19,000
Question 11
A, B and C are partners sharing profits and losses in the ratio 3:2:1. Their respective capital contributions are ₦ 60,000, ₦ 40,000 and ₦ 20,000. Calculate the amount of the profit to be distributed to each partner.
A. A ₦ 36,000, B ₦ 24,000, C ₦ 12,000
B. A ₦ 24,000, B ₦ 16,000, C ₦ 8,000
C. A ₦ 12,000, B ₦ 8,000, C ₦ 4,000
D. A ₦ 8,000, B ₦ 4,000, C ₦ 2,000
Question 12
A company's balance sheet as of December 31, 2022, is as follows: Cash ₦100,000, Accounts Receivable ₦200,000, Inventory ₦300,000, Property, Plant, and Equipment ₦500,000, and Total Liabilities ₦800,000. Prepare a statement of stockholders' equity.
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 13
A company issues 1,000, 10% debentures of ₦10 each. The debentures are redeemable at par after 5 years. What is the annual amortisation of the debentures?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 14
A company's bank statement shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 5 Jan | Bank | | 8,000 | | 10 Jan | Cash | | 12,000 | | 15 Jan | Bank | | 5,000 | What is the balance in the bank account?
A. ₦2,000
B. ₦8,000
C. ₦12,000
D. ₦20,000
Question 15
A company's accounting policy requires that depreciation be calculated using the straight-line method. The company purchased a machine for ₦120,000 and it is expected to last for 5 years. Calculate the annual depreciation.
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

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