POST UTME BOWEN UNIVERSITY 2021 Accounting | Objective

Are you preparing for POST UTME BOWEN UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2021 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A public sector organization has an incomplete record of its transactions. The following information is available: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash received from customers | | 10,000 | | 1st Jan | Cash paid to suppliers | 8,000 | | | 2nd Jan | Cash received from customers | | 5,000 | | 2nd Jan | Cash paid to employees | 3,000 | | What is the total amount of cash received from customers?
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 2
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Purchase of office equipment | 10,000 | | | 1st Jan | Purchase of office supplies | 2,000 | | | 2nd Jan | Sale of goods | | 15,000 | | 2nd Jan | Purchase of raw materials | | 8,000 | What is the net effect of these transactions on the company's cash balance?
A. ₦3,000
Correct B. ₦5,000
C. ₦7,000
D. ₦9,000

Correct Answer: B

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Question 3
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Purchase of office equipment | 10,000 | | | 1st Jan | Purchase of office supplies | 2,000 | | | 2nd Jan | Sale of goods | | 15,000 | | 2nd Jan | Purchase of raw materials | | 8,000 | What is the net effect of these transactions on the company's cash balance?
A. ₦3,000
Correct B. ₦5,000
C. ₦7,000
D. ₦9,000

Correct Answer: B

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Question 4
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Purchase of office equipment | 10,000 | | | 1st Jan | Purchase of office supplies | 2,000 | | | 2nd Jan | Sale of goods | | 15,000 | | 2nd Jan | Purchase of raw materials | | 8,000 | What is the net effect of these transactions on the company's cash balance?
A. ₦3,000
Correct B. ₦5,000
C. ₦7,000
D. ₦9,000

Correct Answer: B

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Question 5
A company has the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Purchase of office equipment | 10,000 | | | 1st Jan | Purchase of office supplies | 2,000 | | | 2nd Jan | Sale of goods | | 15,000 | | 2nd Jan | Purchase of raw materials | | 8,000 | What is the net effect of these transactions on the company's cash balance?
A. ₦3,000
Correct B. ₦5,000
C. ₦7,000
D. ₦9,000

Correct Answer: B

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Question 6
A company purchased a machine for ₦1,500,000. Depreciation is calculated using the straight-line method. If the machine is expected to last for 5 years, and the residual value is ₦200,000, what is the annual depreciation charge?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 7
A government agency is responsible for collecting taxes. The agency's cash book shows the following transactions:
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 8
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company received ₦120,000 from the issue of shares, what is the amount received from the issue of shares?
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 9
A manufacturing company produces 10,000 units of a product per day. The company's production costs are as follows:
A. ₦500,000
B. ₦600,000
Correct C. ₦700,000
D. ₦800,000

Correct Answer: C

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Question 10
A company issued 5% debentures of ₦100 each at a discount of ₦5 per debenture. If the company received ₦450,000 from the issue of debentures, what is the amount received from the issue of debentures?
A. ₦425,000
Correct B. ₦450,000
C. ₦475,000
D. ₦500,000

Correct Answer: B

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Question 11
A partnership consisting of three partners, A, B, and C, has a capital of ₦1,500,000. The capital is divided in the ratio 2:3:4. If the profit is shared in the same ratio, what is the share of partner B?
A. ₦300,000
Correct B. ₦450,000
C. ₦600,000
D. ₦900,000

Correct Answer: B

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Question 12
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge for an asset costing ₦250,000?
A. ₦40,000
B. ₦45,000
Correct C. ₦50,000
D. ₦55,000

Correct Answer: C

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Question 13
A company has the following transactions: Purchased goods for ₦100,000 on credit; sold goods for ₦120,000 on credit; and received cash of ₦50,000. What is the total amount of cash received?
A. ₦150,000
Correct B. ₦160,000
C. ₦170,000
D. ₦180,000

Correct Answer: B

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Question 14
A company has the following transactions: Purchased goods for ₦100,000 on credit; sold goods for ₦120,000 on credit; and received cash of ₦50,000. What is the total amount of cash received?
A. ₦150,000
Correct B. ₦160,000
C. ₦170,000
D. ₦180,000

Correct Answer: B

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Question 15
A company has the following transactions: Purchased goods for ₦100,000 on credit; sold goods for ₦120,000 on credit; and received cash of ₦50,000. What is the total amount of cash received?
A. ₦150,000
Correct B. ₦160,000
C. ₦170,000
D. ₦180,000

Correct Answer: B

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Question 16
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to record the correction of this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
Correct B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

Correct Answer: B

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Question 17
A company uses the straight-line method of depreciation. The cost of a machine is ₦150,000 and its useful life is 5 years. What is the annual depreciation charge?
Correct A. ₦30,000
B. ₦25,000
C. ₦20,000
D. ₦15,000

Correct Answer: A

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Question 18
A company's balance sheet shows a current asset of ₦50,000 in the account 'Accounts Receivable' and a current liability of ₦30,000 in the account 'Accounts Payable'. What is the net working capital?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 19
A company's trial balance shows a debit balance of ₦10,000 in the account 'Salaries Expense' and a credit balance of ₦15,000 in the account 'Salaries Payable'. What is the correct journal entry to record the correction of this error?
A. ₦5,000 debit to Salaries Expense and ₦5,000 credit to Salaries Payable
Correct B. ₦5,000 debit to Salaries Payable and ₦5,000 credit to Salaries Expense
C. ₦10,000 debit to Salaries Expense and ₦10,000 credit to Salaries Payable
D. ₦10,000 debit to Salaries Payable and ₦10,000 credit to Salaries Expense

Correct Answer: B

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Question 20
A company uses the double-declining balance method of depreciation. The cost of a machine is ₦200,000 and its useful life is 5 years. What is the annual depreciation charge?
Correct A. ₦40,000
B. ₦30,000
C. ₦25,000
D. ₦20,000

Correct Answer: A

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Question 21
A manufacturing company uses the weighted average method to calculate depreciation. The company has two machines, A and B, with useful lives of 5 and 10 years, respectively. The machines are valued at ₦100,000 and ₦200,000, respectively. If the company uses a depreciation rate of 10% per annum, what is the total depreciation for the first year?
Correct A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 22
A company's cash book shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash received from customers | ₦50,000 | | | 2 Jan | Cash paid to suppliers | | ₦30,000 | | 3 Jan | Cash received from bank | ₦20,000 | | | 4 Jan | Cash paid to employees | | ₦25,000 | What is the balance on the cash account?
A. ₦15,000
Correct B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: B

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Question 23
A company's trial balance shows the following accounts: | Account | Debit | Credit | | --- | --- | --- | | Sales | ₦100,000 | | | Cost of Goods Sold | | ₦80,000 | | Operating Expenses | | ₦20,000 | | Net Income | | | What is the net income of the company?
A. ₦0
B. ₦10,000
Correct C. ₦20,000
D. ₦30,000

Correct Answer: C

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Question 24
A company uses the straight-line method to calculate depreciation. The company has a machine with a useful life of 5 years and a cost of ₦50,000. If the company uses a depreciation rate of 10% per annum, what is the annual depreciation?
Correct A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500

Correct Answer: A

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Question 25
A company's bank reconciliation statement shows the following discrepancies: | Date | Discrepancy | Amount | | --- | --- | --- | | 1 Jan | Bank statement balance | ₦10,000 | | 2 Jan | Cash book balance | ₦15,000 | | 3 Jan | Outstanding checks | ₦5,000 | | 4 Jan | Deposits in transit | ₦20,000 | What is the corrected bank balance?
A. ₦40,000
B. ₦45,000
Correct C. ₦50,000
D. ₦55,000

Correct Answer: C

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