POST UTME CHRISTOPHER UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME CHRISTOPHER UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account for the year ended 31st December 2020 shows a profit of ₦1,500,000. The balance sheet at the beginning of the year showed a capital of ₦2,000,000 and a profit and loss account balance of ₦500,000. The company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. The balance sheet at the end of the year showed a capital of ₦3,500,000 and a profit and loss account balance of ₦1,000,000. Calculate the amount of dividends paid to the shareholders.
A. ₦750,000
B. ₦1,000,000
Correct C. ₦1,250,000
D. ₦1,500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's balance sheet at the beginning of the year showed a capital of ₦1,500,000 and a profit and loss account balance of ₦200,000. During the year, the company issued 5,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 2,000 debentures of ₦100 each. The balance sheet at the end of the year showed a capital of ₦3,000,000 and a profit and loss account balance of ₦800,000. Calculate the amount of dividends paid to the shareholders.
A. ₦600,000
B. ₦800,000
Correct C. ₦1,000,000
D. ₦1,200,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company's trading account for the year ended 31st December 2020 shows a profit of ₦2,000,000. The balance sheet at the beginning of the year showed a capital of ₦1,000,000 and a profit and loss account balance of ₦500,000. The company issued 20,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 10,000 debentures of ₦100 each. The balance sheet at the end of the year showed a capital of ₦4,000,000 and a profit and loss account balance of ₦1,500,000. Calculate the amount of dividends paid to the shareholders.
A. ₦1,000,000
B. ₦1,250,000
Correct C. ₦1,500,000
D. ₦1,750,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's balance sheet at the beginning of the year showed a capital of ₦2,500,000 and a profit and loss account balance of ₦300,000. During the year, the company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 5,000 debentures of ₦100 each. The balance sheet at the end of the year showed a capital of ₦5,500,000 and a profit and loss account balance of ₦1,200,000. Calculate the amount of dividends paid to the shareholders.
A. ₦1,200,000
B. ₦1,500,000
Correct C. ₦1,800,000
D. ₦2,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's trading account for the year ended 31st December 2020 shows a profit of ₦3,000,000. The balance sheet at the beginning of the year showed a capital of ₦3,000,000 and a profit and loss account balance of ₦1,000,000. The company issued 30,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 15,000 debentures of ₦100 each. The balance sheet at the end of the year showed a capital of ₦7,000,000 and a profit and loss account balance of ₦2,500,000. Calculate the amount of dividends paid to the shareholders.
A. ₦2,000,000
B. ₦2,500,000
Correct C. ₦3,000,000
D. ₦3,500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦150,000. The difference of ₦30,000 is due to an outstanding cheque of ₦20,000 and a deposit of ₦10,000. What is the correct balance in the cash book?
A. ₦130,000
B. ₦140,000
Correct C. ₦150,000
D. ₦160,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A manufacturing company has the following ledger balances: Raw Materials ₹ 50,000, Work-in-Progress ₹ 100,000, Finished Goods ₹ 150,000. What is the total value of the company's inventory?
A. ₹300,000
B. ₹350,000
Correct C. ₹400,000
D. ₹450,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company's trading account shows a profit of ₦200,000. The company's balance sheet shows a decrease in inventory of ₦50,000 and an increase in accounts payable of ₦30,000. What is the company's net income?
A. ₦180,000
B. ₦190,000
Correct C. ₦200,000
D. ₦210,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's balance sheet shows a decrease in cash of ₦20,000 and an increase in accounts receivable of ₦30,000. What is the company's net change in cash?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's single-entry system shows a credit balance of ₦50,000. However, the company's bank statement shows a debit balance of ₦30,000. What is the correct balance in the single-entry system?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company's trial balance shows a debit balance of ₦1,500 in the 'Office Supplies' account. However, the company's accountant has informed you that the 'Office Supplies' account is a control account. What is the most likely reason for the debit balance in the 'Office Supplies' account?
A. The company has purchased office supplies on credit.
B. The company has sold office supplies on credit.
Correct C. The company has not recorded the purchase of office supplies.
D. The company has not recorded the sale of office supplies.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company's balance sheet shows a decrease in the 'Accounts Payable' account from ₦50,000 to ₦30,000. What is the most likely reason for this decrease?
Correct A. The company has paid off some of its debts.
B. The company has received a refund from its suppliers.
C. The company has not recorded the payment of its debts.
D. The company has not recorded the receipt of a refund from its suppliers.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's profit and loss account shows a net profit of ₦100,000. However, the company's balance sheet shows a decrease in the 'Cash' account from ₦50,000 to ₦30,000. What is the most likely reason for this decrease?
Correct A. The company has paid off some of its debts.
B. The company has received a refund from its suppliers.
C. The company has not recorded the payment of its debts.
D. The company has not recorded the receipt of a refund from its suppliers.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's balance sheet shows a decrease in the 'Inventory' account from ₦100,000 to ₦80,000. What is the most likely reason for this decrease?
Correct A. The company has sold some of its inventory.
B. The company has received a refund from its suppliers.
C. The company has not recorded the sale of its inventory.
D. The company has not recorded the receipt of a refund from its suppliers.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's profit and loss account shows a net loss of ₦50,000. However, the company's balance sheet shows an increase in the 'Accounts Payable' account from ₦30,000 to ₦50,000. What is the most likely reason for this increase?
Correct A. The company has purchased more goods on credit.
B. The company has sold some of its inventory.
C. The company has not recorded the purchase of more goods on credit.
D. The company has not recorded the sale of its inventory.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's trial balance shows an error of ₦5,000 due to an incorrect posting of a transaction. The error is discovered during the preparation of the balance sheet. What is the correct treatment of this error?
Correct A. ₦5,000 is debited to the error account.
B. ₦5,000 is credited to the error account.
C. ₦5,000 is ignored as it is a minor error.
D. ₦5,000 is posted to the profit and loss account.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's balance sheet shows a decrease in inventory of ₦20,000. However, the company's profit and loss account shows an increase in cost of goods sold of ₦30,000. What is the correct treatment of this discrepancy?
Correct A. ₦10,000 is debited to the error account.
B. ₦10,000 is credited to the error account.
C. ₦10,000 is ignored as it is a minor error.
D. ₦10,000 is posted to the profit and loss account.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company's trial balance shows an error of ₦10,000 due to an incorrect posting of a transaction. The error is discovered during the preparation of the balance sheet. What is the correct treatment of this error?
Correct A. ₦10,000 is debited to the error account.
B. ₦10,000 is credited to the error account.
C. ₦10,000 is ignored as it is a minor error.
D. ₦10,000 is posted to the profit and loss account.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company's balance sheet shows a decrease in inventory of ₦15,000. However, the company's profit and loss account shows an increase in cost of goods sold of ₦25,000. What is the correct treatment of this discrepancy?
Correct A. ₦10,000 is debited to the error account.
B. ₦10,000 is credited to the error account.
C. ₦10,000 is ignored as it is a minor error.
D. ₦10,000 is posted to the profit and loss account.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's trial balance shows an error of ₦8,000 due to an incorrect posting of a transaction. The error is discovered during the preparation of the balance sheet. What is the correct treatment of this error?
Correct A. ₦8,000 is debited to the error account.
B. ₦8,000 is credited to the error account.
C. ₦8,000 is ignored as it is a minor error.
D. ₦8,000 is posted to the profit and loss account.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
The following is an extract from the financial statements of a public sector entity: Cash and cash equivalents: ₦1,500,000 Accounts receivable: ₦2,000,000 Prepaid expenses: ₦300,000 Total current assets: ₦3,800,000 What is the amount of the entity's current liabilities?
A. ₦3,800,000
Correct B. ₦4,100,000
C. ₦4,300,000
D. ₦4,500,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦1,200,000, what is the amount of profit that partner A will receive?
Correct A. ₦900,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A manufacturing company produces two products, X and Y. The selling price of X is ₦100 per unit, and the selling price of Y is ₦120 per unit. The company produces 500 units of X and 300 units of Y. If the total cost of production is ₦150,000, what is the gross profit of the company?
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation charge using the straight-line method?
A. ₦90,000
B. ₦95,000
Correct C. ₦100,000
D. ₦105,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has the following bank statement and cash book balances: Bank Statement: ₦1,500,000 ₦1,800,000 ₦2,000,000 Cash Book: ₦1,200,000 ₦1,500,000 ₦1,800,000 What is the correct bank reconciliation?
A. ₦1,500,000
Correct B. ₦1,800,000
C. ₦2,000,000
D. ₦2,200,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support