POST UTME BELLS UNIVERSITY 2025 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 2025 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 2,000 ₡0 debentures at 5% interest. Prepare the journal entry to record the issue of shares and debentures.
A. Debit Share Capital ₣0,000, Credit Cash ₣0,000
Correct B. Debit Share Capital ₥0,000, Credit Cash ₥0,000
C. Debit Share Capital ₣0,000, Credit Cash ₣0,000 and Debit Debentures ₢0,000, Credit Cash ₢0,000
D. Debit Share Capital ₥0,000, Credit Cash ₥0,000 and Debit Debentures ₡0,000, Credit Cash ₡0,000

Correct Answer: B

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Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₡0,000 and ₡5,000 respectively. The profit-sharing ratio is 3:2. Prepare the statement of profit or loss and other comprehensive income for the year ended 31st December 2024.
Correct A. Profit ₢0,000, Loss ₡0,000
B. Profit ₣0,000, Loss ₢0,000
C. Profit ₤0,000, Loss ₣0,000
D. Profit ₥0,000, Loss ₤0,000

Correct Answer: A

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Question 3
A company has the following trial balance as at 31st December 2024.
A. Debit Cash ₡0,000, Credit Bank ₡0,000
B. Debit Bank ₡0,000, Credit Cash ₡0,000
C. Debit Cash ₡0,000, Credit Bank ₡0,000 and Debit Profit ₡0,000, Credit Bank ₡0,000
Correct D. Debit Bank ₡0,000, Credit Cash ₡0,000 and Debit Profit ₡0,000, Credit Bank ₡0,000

Correct Answer: D

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Question 4
A company has the following balance sheet as at 31st December 2024.
A. Debit Asset ₡0,000, Credit Liability ₡0,000
B. Debit Liability ₡0,000, Credit Asset ₡0,000
C. Debit Asset ₡0,000, Credit Liability ₡0,000 and Debit Equity ₡0,000, Credit Liability ₡0,000
Correct D. Debit Liability ₡0,000, Credit Asset ₡0,000 and Debit Equity ₡0,000, Credit Liability ₡0,000

Correct Answer: D

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Question 5
A company has the following income statement for the year ended 31st December 2024.
A. Revenue ₢0,000, Expense ₡0,000
B. Revenue ₣0,000, Expense ₢0,000
C. Revenue ₤0,000, Expense ₣0,000
Correct D. Revenue ₥0,000, Expense ₤0,000

Correct Answer: D

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Question 6
A company purchases a machine for ₦1,500,000. The machine has a useful life of 5 years and a residual value of ₦150,000. Calculate the annual depreciation using the straight-line method.
A. ₦270,000
Correct B. ₦300,000
C. ₦250,000
D. ₦200,000

Correct Answer: B

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Question 7
A trader purchases goods on credit for ₦500,000. He sells the goods for ₦700,000 and incurs a bank charge of ₦20,000. Calculate the profit made by the trader.
Correct A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: A

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Question 8
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.
A. ₦105,000
B. ₦110,000
C. ₦115,000
Correct D. ₦120,000

Correct Answer: D

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Question 9
A company purchases a machine for ₦1,000,000. The machine has a useful life of 5 years and a residual value of ₦100,000. Calculate the annual depreciation using the reducing balance method.
A. ₦160,000
Correct B. ₦180,000
C. ₦200,000
D. ₦220,000

Correct Answer: B

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Question 10
A company issues 5,000 debentures of ₦100 each at a premium of ₦10 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦525,000
B. ₦550,000
C. ₦575,000
Correct D. ₦600,000

Correct Answer: D

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Question 11
A company has two departments, A and B, with the following production costs for the year: Department A: ₦1,200,000 Department B: ₦800,000 Total production costs: ₦2,000,000 What is the total production cost per unit for Department A?
Correct A. ₦600
B. ₦800
C. ₦1,000
D. ₦1,200

Correct Answer: A

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Question 12
A company issues 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of interest that will be paid annually on the debentures.
A. ₦25,000
Correct B. ₦50,000
C. ₦75,000
D. ₦100,000

Correct Answer: B

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Question 13
A company has the following balance sheet: Assets: ₦1,500,000 Liabilities: ₦800,000 Equity: ₦700,000 What is the company's return on equity (ROE)?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 14
A company has the following income statement: Sales: ₦2,500,000 Cost of Goods Sold: ₦1,800,000 Gross Profit: ₦700,000 Operating Expenses: ₦300,000 Net Income: ₦400,000 What is the company's gross profit margin?
Correct A. 28%
B. 30%
C. 32%
D. 35%

Correct Answer: A

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Question 15
A company has the following balance sheet: Assets: ₦1,000,000 Liabilities: ₦600,000 Equity: ₦400,000 What is the company's debt-to-equity ratio?
A. 1.5
Correct B. 2
C. 2.5
D. 3

Correct Answer: B

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Question 16
A company's trial balance shows a debit balance of ₦50,000 in the 'Rent Received' account. What is the correct journal entry to record this transaction?
A. Debit Rent Received ₦50,000, Credit Cash ₦50,000
Correct B. Debit Cash ₦50,000, Credit Rent Received ₦50,000
C. Debit Rent Received ₦50,000, Credit Rent Paid ₦50,000
D. Debit Rent Paid ₦50,000, Credit Rent Received ₦50,000

Correct Answer: B

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Question 17
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. What is the ratio of the distribution of the profit?
Correct A. 3:2
B. 2:3
C. 1:1
D. 4:3

Correct Answer: A

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Question 18
A company uses the straight-line method of depreciation. The cost of the asset is ₦120,000 and its useful life is 5 years. What is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦16,000

Correct Answer: A

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Question 19
A company's balance sheet shows a current ratio of 2:1. What is the meaning of this ratio?
Correct A. The company has sufficient liquid assets to meet its short-term obligations
B. The company has insufficient liquid assets to meet its short-term obligations
C. The company has no liquid assets to meet its short-term obligations
D. The company has excess liquid assets to meet its short-term obligations

Correct Answer: A

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Question 20
A company's trial balance shows a debit balance of ₦30,000 in the 'Salaries and Wages' account. What is the correct journal entry to record this transaction?
A. Debit Salaries and Wages ₦30,000, Credit Cash ₦30,000
Correct B. Debit Cash ₦30,000, Credit Salaries and Wages ₦30,000
C. Debit Salaries and Wages ₦30,000, Credit Rent Paid ₦30,000
D. Debit Rent Paid ₦30,000, Credit Salaries and Wages ₦30,000

Correct Answer: B

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Question 21
A partnership has two partners, A and B. The capital accounts of A and B are ₦150,000 and ₦100,000 respectively. The profit-sharing ratio is 2:1. What is the ratio of the distribution of the profit?
Correct A. 2:1
B. 1:2
C. 3:2
D. 4:3

Correct Answer: A

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Question 22
A company uses the straight-line method of depreciation. The cost of the asset is ₦180,000 and its useful life is 6 years. What is the annual depreciation charge?
Correct A. ₦30,000
B. ₦25,000
C. ₦22,500
D. ₦20,000

Correct Answer: A

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Question 23
A company's balance sheet shows a current ratio of 3:2. What is the meaning of this ratio?
Correct A. The company has sufficient liquid assets to meet its short-term obligations
B. The company has insufficient liquid assets to meet its short-term obligations
C. The company has no liquid assets to meet its short-term obligations
D. The company has excess liquid assets to meet its short-term obligations

Correct Answer: A

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Question 24
A company's trial balance shows a debit balance of ₦40,000 in the 'Rent Received' account. What is the correct journal entry to record this transaction?
A. Debit Rent Received ₦40,000, Credit Cash ₦40,000
B. Debit Cash ₦40,000, Credit Rent Received ₦40,000
C. Debit Rent Received ₦40,000, Credit Rent Paid ₦40,000
D. Debit Rent Paid ₦40,000, Credit Rent Received ₦40,000

Correct Answer: VIEW ANSWER

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Question 25
A company issues 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company's share capital is ₦ 100,000. What is the amount received from the issue of shares?
A. ₦ 100,000
Correct B. ₦ 120,000
C. ₦ 140,000
D. ₦ 160,000

Correct Answer: B

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