POST UTME CHRISTOPHER UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 1,000 debentures of ₦100 each at a premium of ₦5 per debenture. If the issue expenses were ₦5,000, what is the total amount received from the issue of debentures?
A. ₦105,000
B. ₦110,000
C. ₦115,000
D. ₦120,000
Question 2
A company uses the allowance method to account for bad debts. At the end of the year, the company estimates that 5% of its accounts receivable are uncollectible. If the company has accounts receivable of ₦100,000, what is the allowance for bad debts?
A. ₦4,000
B. ₦5,000
C. ₦6,000
D. ₦7,000
Question 3
A company purchased a machine for ₦120,000 and immediately spent ₦15,000 on its installation. The machine has a useful life of 5 years and a residual value of ₦10,000. Calculate the annual depreciation.
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦25,000
Question 4
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 5 years and a residual value of ₦10,000, what is the annual depreciation expense?
A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 5
The following is a balance sheet of a partnership firm:
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 6
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦15,000 | | 3rd Jan | Cash | | ₦20,000 | What is the correct balance of the cash book?
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 7
A company has the following transactions related to its inventory: | Date | Description | Quantity | Unit Cost | | --- | --- | --- | --- | | Jan 1 | Beginning inventory | 100 | ₦10 | | Jan 15 | Purchase | 200 | ₦12 | | Feb 1 | Sale | 50 | ₦0 | | Feb 15 | Purchase | 150 | ₦14 | What is the total cost of goods available for sale at the end of February?
A. ₦3,400
B. ₦3,600
C. ₦3,800
D. ₦4,000
Question 8
In a partnership account, the capital of the partners is divided in the ratio of 3:5:7. If the total capital is ₦1,500,000, what is the amount of capital of the partner with a 7:1 ratio?
A. ₦420,000
B. ₦630,000
C. ₦840,000
D. ₦1,050,000
Question 9
A company has the following transactions related to its accounts payable: | Date | Description | Amount | | --- | --- | --- | | Jan 1 | Purchase of goods | ₦10,000 | | Jan 15 | Payment to supplier | ₦8,000 | | Feb 1 | Purchase of goods | ₦12,000 | | Feb 15 | Payment to supplier | ₦10,000 | What is the total amount of accounts payable at the end of February?
A. ₦14,000
B. ₦16,000
C. ₦18,000
D. ₦20,000
Question 10
A company uses the single entry system of accounting. The company's cash book shows a debit balance of ₦25,000. The company's trial balance shows a credit balance of ₦35,000 for the same account. What is the correct journal entry to rectify the discrepancy?
A. Debit Cash ₦25,000, Credit Profit and Loss Account ₦25,000
B. Debit Profit and Loss Account ₦25,000, Credit Cash ₦25,000
C. Debit Cash ₦35,000, Credit Profit and Loss Account ₦35,000
D. Debit Profit and Loss Account ₦35,000, Credit Cash ₦35,000
Question 11
A company uses a job costing system. The following data relate to Job No. 101: Direct Materials: ₦15,000, Direct Labour: ₦8,000, Overheads: ₦12,000. Calculate the total cost of the job.
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 12
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. Calculate the amount of share capital and the amount of share premium.
A. ₦150,000
B. ₦100,000
C. ₦120,000
D. ₦180,000
Question 13
A company issues 10% debentures of ₦100 each at a discount of 5%. If the company issues 1,000 debentures, calculate the amount received from the issue of debentures.
A. ₦95,000
B. ₦95,500
C. ₦96,000
D. ₦96,500
Question 14
A company purchased a building for ₦500,000. The building has a useful life of 10 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 15
A company uses the perpetual inventory system. On January 1, 2022, it had 500 units of a product on hand at a cost of ₦120 per unit. During the year, 300 units were sold, and 200 units were purchased at a cost of ₦150 per unit. The company uses the weighted average method to determine the cost of goods sold. What is the total cost of goods sold for the year?
A. ₦36,000
B. ₦40,000
C. ₦42,000
D. ₦45,000

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