Practice post utme bsu accounting 2024 Past Questions

Question 1

A company's accounting policy requires that depreciation be calculated using the straight-line method. If the company purchased a machine for ₦120,000 and it has a useful life of 5 years, what is the annual depreciation charge?

A. ₦24,000

B. ₦20,000

C. ₦30,000

Correct D. ₦18,000

Correct Answer: D

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Question 2

A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦10,000 | | | 2 Jan | Sales | | ₦15,000 | | 3 Jan | Purchases | ₦8,000 | | | 4 Jan | Cash | | ₦12,000 | What is the balance of the cash account?

Correct A. ₦2,000

B. ₦4,000

C. ₦6,000

D. ₦8,000

Correct Answer: A

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Question 3

A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. If the company received ₦15,000 for the issue, what is the amount of the premium received?

A. ₦5,000

Correct B. ₦6,000

C. ₦7,000

D. ₦8,000

Correct Answer: B

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Question 4

A company's balance sheet shows the following: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Debentures | 20,000 | | Stock | 30,000 | Share Capital | 40,000 | | Debtors | 15,000 | | | | | | | | What is the amount of the company's net worth?

A. ₦55,000

B. ₦60,000

Correct C. ₦65,000

D. ₦70,000

Correct Answer: C

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Question 5

A company's bank statement shows the following: | Date | Debit | Credit | Balance | | --- | --- | --- | --- | | 1 Jan | | ₦1,000 | ₦10,000 | | 2 Jan | ₦2,000 | | ₦8,000 | | 3 Jan | | ₦3,000 | ₦11,000 | | 4 Jan | ₦4,000 | | ₦7,000 | What is the bank reconciliation statement?

A. ₦4,000

B. ₦6,000

C. ₦8,000

Correct D. ₦10,000

Correct Answer: D

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Question 6

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The capital accounts of A and B at the beginning of the year were ₦120,000 and ₦80,000 respectively. During the year, A withdrew ₦20,000 and B introduced ₦10,000. The profit for the year was ₦50,000. Prepare the partners' capital accounts for the year.

Correct A. A's capital account: ₦130,000; B's capital account: ₦90,000

B. A's capital account: ₦140,000; B's capital account: ₦80,000

C. A's capital account: ₦120,000; B's capital account: ₦90,000

D. A's capital account: ₦140,000; B's capital account: ₦100,000

Correct Answer: A

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Question 7

A company issued 5,000 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the annual charge for interest and the amount of the discount.

A. ₦45,000; ₦50,000

B. ₦40,000; ₦45,000

C. ₦50,000; ₦55,000

Correct D. ₦45,000; ₦50,000

Correct Answer: D

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Question 8

A company purchased a machine for ₦150,000. The machine has a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.

Correct A. ₦26,000

B. ₦28,000

C. ₦30,000

D. ₦32,000

Correct Answer: A

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Question 9

A company's cash book shows the following transactions: ₦10,000 received from a customer; ₦5,000 paid to a supplier; ₦2,000 deposited into the bank. Prepare the cash book and bank reconciliation statement.

Correct A. ₦10,000; ₦5,000; ₦2,000

B. ₦12,000; ₦6,000; ₦3,000

C. ₦15,000; ₦7,000; ₦4,000

D. ₦18,000; ₦9,000; ₦5,000

Correct Answer: A

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Question 10

A company's control account shows the following transactions: ₦10,000 received from a customer; ₦5,000 paid to a supplier; ₦2,000 deposited into the bank. Prepare the control account and bank reconciliation statement.

Correct A. ₦10,000; ₦5,000; ₦2,000

B. ₦12,000; ₦6,000; ₦3,000

C. ₦15,000; ₦7,000; ₦4,000

D. ₦18,000; ₦9,000; ₦5,000

Correct Answer: A

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Question 11

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from its tenants. What is the correct treatment for this discrepancy?

A. Debit the 'Rent Received' account by ₦15,000 and credit the 'Rent Payable' account by ₦15,000.

Correct B. Credit the 'Rent Received' account by ₦15,000 and debit the 'Rent Payable' account by ₦15,000.

C. Debit the 'Rent Received' account by ₦15,000 and credit the 'Cash' account by ₦15,000.

D. Credit the 'Rent Received' account by ₦15,000 and debit the 'Bank' account by ₦15,000.

Correct Answer: B

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Question 12

A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department incurs a direct labor cost of ₦10,000 and a direct material cost of ₦20,000. The Assembly department incurs a direct labor cost of ₦15,000 and a direct material cost of ₦30,000. What is the total cost of production for the company?

A. ₦75,000

B. ₦85,000

Correct C. ₦95,000

D. ₦105,000

Correct Answer: C

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Question 13

A company uses the self-balancing ledger system to record its transactions. The ledger shows a debit balance of ₦10,000 in the account 'Sales'. However, the company's accounting records show that it has not made any sales. What is the correct treatment for this discrepancy?

A. Debit the 'Sales' account by ₦10,000 and credit the 'Sales Returns' account by ₦10,000.

Correct B. Credit the 'Sales' account by ₦10,000 and debit the 'Sales Returns' account by ₦10,000.

C. Debit the 'Sales' account by ₦10,000 and credit the 'Cash' account by ₦10,000.

D. Credit the 'Sales' account by ₦10,000 and debit the 'Bank' account by ₦10,000.

Correct Answer: B

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Question 14

A company uses the straight-line method to depreciate its assets. The company's assets have a useful life of 10 years and a residual value of ₦5,000. What is the annual depreciation charge for the company?

Correct A. ₦4,500

B. ₦5,000

C. ₦5,500

D. ₦6,000

Correct Answer: A

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Question 15

A company uses the perpetual inventory system to record its inventory transactions. The company's inventory has a cost of ₦20,000 and a selling price of ₦30,000. What is the gross profit margin for the company?

A. 20%

Correct B. 30%

C. 40%

D. 50%

Correct Answer: B

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Question 16

A company uses the double-entry system of accounting. The following transactions were recorded in the journal during the month of January:

Correct A. Debit Cash 1,000 and Credit Accounts Payable 1,000

B. Debit Accounts Payable 1,000 and Credit Cash 1,000

C. Debit Cash 1,000 and Credit Accounts Receivable 1,000

D. Debit Accounts Receivable 1,000 and Credit Cash 1,000

Correct Answer: A

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Question 17

A company's trial balance as of December 31, 2023, showed the following balances:

A. Debit 10,000 and Credit 10,000

B. Debit 5,000 and Credit 5,000

Correct C. Debit 15,000 and Credit 15,000

D. Debit 20,000 and Credit 20,000

Correct Answer: C

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Question 18

A company's bank reconciliation statement as of December 31, 2023, showed the following balances:

A. 10,000

B. 5,000

Correct C. 15,000

D. 20,000

Correct Answer: C

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Question 19

A company's cash book as of December 31, 2023, showed the following balances:

A. 10,000

B. 5,000

Correct C. 15,000

D. 20,000

Correct Answer: C

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Question 20

A company's ledger as of December 31, 2023, showed the following balances:

A. 10,000

B. 5,000

Correct C. 15,000

D. 20,000

Correct Answer: C

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Question 21

A company's trial balance shows a debit balance of ₦15,000 in the 'Rent' account. However, the company's accounting records indicate that the rent for the year was ₦20,000. What is the correct treatment for this discrepancy in the company's financial statements?

Correct A. Debit the 'Rent' account by ₦5,000 and credit the 'Accrued Expenses' account by ₦5,000.

B. Debit the 'Accrued Expenses' account by ₦5,000 and credit the 'Rent' account by ₦5,000.

C. Debit the 'Rent' account by ₦5,000 and credit the 'Cash' account by ₦5,000.

D. Debit the 'Accrued Expenses' account by ₦20,000 and credit the 'Rent' account by ₦20,000.

Correct Answer: A

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Question 22

A manufacturing company uses the process costing method to account for its production costs. The company's production costs for the year are as follows: direct materials ₦100,000, direct labor ₦150,000, and overhead ₦200,000. If the company produces 10,000 units of product during the year, what is the cost per unit?

A. ₦25 per unit

Correct B. ₦30 per unit

C. ₦35 per unit

D. ₦40 per unit

Correct Answer: B

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Question 23

A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the company's quick ratio?

Correct A. 1:1

B. 2:1

C. 3:1

D. 4:1

Correct Answer: A

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Question 24

A company's trial balance shows a credit balance of ₦20,000 in the 'Salaries' account. However, the company's accounting records indicate that the salaries for the year were ₦30,000. What is the correct treatment for this discrepancy in the company's financial statements?

Correct A. Credit the 'Salaries' account by ₦10,000 and debit the 'Accrued Expenses' account by ₦10,000.

B. Debit the 'Accrued Expenses' account by ₦10,000 and credit the 'Salaries' account by ₦10,000.

C. Credit the 'Salaries' account by ₦10,000 and debit the 'Cash' account by ₦10,000.

D. Debit the 'Accrued Expenses' account by ₦20,000 and credit the 'Salaries' account by ₦20,000.

Correct Answer: A

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Question 25

A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. What is the company's equity?

A. ₦200,000

Correct B. ₦250,000

C. ₦300,000

D. ₦350,000

Correct Answer: B

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