Practice post utme christopher university accounting 2024 Past Questions

Question 1

A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦120,000, calculate the amount of profit that partner A will receive.

Correct A. ₦60,000

B. ₦48,000

C. ₦72,000

D. ₦90,000

Correct Answer: A

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Question 2

A manufacturing company uses a job costing system. The following data are available for Job No. 123: Direct Materials: ₦15,000; Direct Labour: ₦8,000; Factory Overheads: ₦12,000. Calculate the total cost of the job.

A. ₦35,000

B. ₦40,000

C. ₦45,000

Correct D. ₦50,000

Correct Answer: D

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Question 3

A company issues 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount of discount on the debentures.

Correct A. ₦2,500

B. ₦5,000

C. ₦7,500

D. ₦10,000

Correct Answer: A

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Question 4

A company has the following trial balance: Accounts Payable: ₦20,000; Accounts Receivable: ₦15,000; Common Stock: ₦50,000; Dividends: ₦5,000; Equipment: ₦30,000; Fees Earned: ₦60,000; Interest Expense: ₦2,000; Interest Income: ₦1,000; Net Income: ₦10,000; Salaries Expense: ₦20,000; Sales: ₦80,000; Utilities Expense: ₦5,000. Prepare a balance sheet for the company.

Correct A. {\"Assets\": {\"Cash\": 0, \"Accounts Receivable\": 15000, \"Equipment\": 30000, \"Accounts Payable\": 20000}, \"Liabilities\": {\"Common Stock\": 50000, \"Dividends\": 5000}, \"Equity\": {\"Net Income\": 10000, \"Salaries Expense\": 20000, \"Fees Earned\": 60000, \"Interest Expense\": 2000, \"Interest Income\": 1000, \"Utilities Expense\": 5000, \"Sales\": 80000}}

B. {\"Assets\": {\"Cash\": 0, \"Accounts Receivable\": 15000, \"Equipment\": 30000, \"Accounts Payable\": 20000}, \"Liabilities\": {\"Common Stock\": 50000, \"Dividends\": 5000}, \"Equity\": {\"Net Income\": 10000, \"Salaries Expense\": 20000, \"Fees Earned\": 60000, \"Interest Expense\": 2000, \"Interest Income\": 1000, \"Utilities Expense\": 5000, \"Sales\": 80000, \"Accounts Payable\": 20000}}

C. {\"Assets\": {\"Cash\": 0, \"Accounts Receivable\": 15000, \"Equipment\": 30000, \"Accounts Payable\": 20000}, \"Liabilities\": {\"Common Stock\": 50000, \"Dividends\": 5000}, \"Equity\": {\"Net Income\": 10000, \"Salaries Expense\": 20000, \"Fees Earned\": 60000, \"Interest Expense\": 2000, \"Interest Income\": 1000, \"Utilities Expense\": 5000, \"Sales\": 80000, \"Accounts Payable\": 20000, \"Equipment\": 30000}}

D. {\"Assets\": {\"Cash\": 0, \"Accounts Receivable\": 15000, \"Equipment\": 30000, \"Accounts Payable\": 20000}, \"Liabilities\": {\"Common Stock\": 50000, \"Dividends\": 5000}, \"Equity\": {\"Net Income\": 10000, \"Salaries Expense\": 20000, \"Fees Earned\": 60000, \"Interest Expense\": 2000, \"Interest Income\": 1000, \"Utilities Expense\": 5000, \"Sales\": 80000, \"Accounts Payable\": 20000, \"Equipment\": 30000, \"Accounts Receivable\": 15000}}

Correct Answer: A

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Question 5

A company has the following transactions: Purchased office supplies for ₦5,000; Purchased equipment for ₦20,000; Sold merchandise for ₦15,000; Collected cash from customers for ₦10,000; Paid salaries for ₦8,000. Prepare a journal entry for the transactions.

Correct A. Office Supplies Expense = ₦5,000; Equipment = ₦20,000; Sales Revenue = ₦15,000; Cash = ₦10,000; Salaries Expense = ₦8,000

B. Office Supplies Expense = ₦5,000; Equipment = ₦20,000; Sales Revenue = ₦15,000; Cash = ₦10,000; Salaries Expense = ₦8,000; Office Supplies = ₦5,000

C. Office Supplies Expense = ₦5,000; Equipment = ₦20,000; Sales Revenue = ₦15,000; Cash = ₦10,000; Salaries Expense = ₦8,000; Office Supplies = ₦5,000; Equipment = ₦20,000

D. Office Supplies Expense = ₦5,000; Equipment = ₦20,000; Sales Revenue = ₦15,000; Cash = ₦10,000; Salaries Expense = ₦8,000; Office Supplies = ₦5,000; Equipment = ₦20,000; Sales Revenue = ₦15,000

Correct Answer: A

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Question 6

A company's cash book shows a balance of ₦250,000. However, the bank statement shows a balance of ₦280,000. The difference of ₦30,000 is due to a dishonored cheque of ₦15,000 and a bank charge of ₦15,000. What is the correct balance in the cash book?

A. ₦250,000

B. ₦260,000

C. ₦270,000

Correct D. ₦280,000

Correct Answer: D

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Question 7

A company's trading account for the year ended 31st December 2023 shows a profit of ₦500,000. The company's profit and loss account for the same period shows a net profit of ₦750,000. What is the amount of the company's non-trading income?

A. ₦250,000

Correct B. ₦300,000

C. ₦350,000

D. ₦400,000

Correct Answer: B

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Question 8

A company's balance sheet as at 31st December 2023 shows a total assets of ₦1,500,000 and a total liabilities of ₦1,200,000. What is the company's net worth?

A. ₦300,000

B. ₦400,000

C. ₦500,000

Correct D. ₦600,000

Correct Answer: D

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Question 9

A company's manufacturing account for the year ended 31st December 2023 shows a cost of goods sold of ₦1,000,000. The company's selling price per unit is ₦200. What is the company's contribution margin?

A. ₦150,000

B. ₦200,000

Correct C. ₦250,000

D. ₦300,000

Correct Answer: C

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Question 10

A company's depreciation policy requires that all assets be depreciated at a rate of 10% per annum. If an asset is purchased for ₦100,000, what is its value after 5 years?

A. ₦50,000

B. ₦60,000

C. ₦70,000

Correct D. ₦80,000

Correct Answer: D

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Question 11

A company purchased a machine for ₦150,000. Depreciation is calculated using the straight-line method. If the machine is expected to last for 5 years, and the company uses a 20% residual value, what is the annual depreciation charge?

A. ₦20,000

Correct B. ₦25,000

C. ₦30,000

D. ₦35,000

Correct Answer: B

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Question 12

A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 5,000 debentures of ₦100 each. Calculate the total amount received from the issue of shares and debentures.

A. ₦105,000

B. ₦110,000

C. ₦115,000

Correct D. ₦120,000

Correct Answer: D

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Question 13

A company's trial balance showed the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare a corrected trial balance.

Correct A. ₦50,000; ₦200,000; ₦150,000; ₦100,000

B. ₦50,000; ₦250,000; ₦150,000; ₦100,000

C. ₦50,000; ₦200,000; ₦150,000; ₦150,000

D. ₦50,000; ₦200,000; ₦150,000; ₦200,000

Correct Answer: A

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Question 14

A company purchased a building for ₦500,000. The building is expected to last for 10 years and has a residual value of ₦50,000. Calculate the annual depreciation charge using the straight-line method.

A. ₦45,000

Correct B. ₦50,000

C. ₦55,000

D. ₦60,000

Correct Answer: B

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Question 15

A company issued 5,000 shares of ₦1 each at a premium of ₦0.25 per share. The company also issued 2,000 debentures of ₦100 each. Calculate the total amount received from the issue of shares and debentures.

A. ₦12,500

B. ₦15,000

C. ₦17,500

Correct D. ₦20,000

Correct Answer: D

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Question 16

Determine the value of x in the equation ( rac{x}{2} + 5 = 11 ).

Correct A. 6

B. 12

C. 18

D. 24

Correct Answer: A

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Question 17

A company issued 10,000 shares of 2 par value at a premium of 5 per share. Calculate the total amount received from the issue of shares.

A. ₦500,000

Correct B. ₦1,000,000

C. ₦1,500,000

D. ₦2,000,000

Correct Answer: B

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Question 18

A firm's trial balance showed an error of ₦1,000. The error was discovered in the journal entry dated 31st December. The journal entry was posted on 15th January. Calculate the correction to be made in the ledger accounts.

A. ₦1,000 debit

Correct B. ₦1,000 credit

C. ₦500 debit and ₦500 credit

D. ₦500 debit and ₦500 credit on 15th January

Correct Answer: B

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Question 19

A partnership of two partners, A and B, had a capital balance of ₦100,000 and ₦80,000 respectively. The partnership made a profit of ₦20,000. Calculate the new capital balance of each partner.

Correct A. ₦120,000 and ₦88,000

B. ₦110,000 and ₦90,000

C. ₦130,000 and ₦70,000

D. ₦140,000 and ₦60,000

Correct Answer: A

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Question 20

A company issued 5% debentures of ₦100,000 at a premium of 10%. Calculate the annual interest payable on the debentures.

A. ₦5,000

Correct B. ₦5,500

C. ₦6,000

D. ₦6,500

Correct Answer: B

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Question 21

A company uses the double entry system to record its transactions. If the company purchases office equipment for ₦120,000, what is the effect on the accounting equation?

A. Assets increase, Liabilities decrease

Correct B. Assets increase, Equity increases

C. Assets decrease, Liabilities increase

D. Assets decrease, Equity decreases

Correct Answer: B

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Question 22

A company's assets are ₦500,000, liabilities are ₦200,000, and equity is ₦300,000. What is the company's return on equity?

Correct A. 50%

B. 60%

C. 70%

D. 80%

Correct Answer: A

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Question 23

A company's depreciation policy is to depreciate its assets by 10% per annum. If the asset's original cost is ₦100,000, what is the asset's value after 2 years?

Correct A. ₦80,000

B. ₦90,000

C. ₦100,000

D. ₦110,000

Correct Answer: A

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Question 24

A government agency is responsible for collecting taxes from citizens. What is the primary function of this agency?

A. To provide public goods and services

B. To regulate economic activities

Correct C. To collect taxes and revenue

D. To provide social welfare programs

Correct Answer: C

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Question 25

A company's trading account shows a profit of ₦200,000. The company's cost of goods sold is ₦500,000, and its sales revenue is ₦700,000. What is the company's gross profit margin?

A. 25%

Correct B. 30%

C. 35%

D. 40%

Correct Answer: B

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