POST UTME COAL CITY UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME COAL CITY UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records show that the actual rent paid for the year was ₦8,000. What is the correct journal entry to record the correction?
Correct A. ₦7,000 debit to 'Rent and Rates' and ₦7,000 credit to 'Profit and Loss Account'
B. ₦8,000 debit to 'Rent and Rates' and ₦8,000 credit to 'Profit and Loss Account'
C. ₦15,000 debit to 'Rent and Rates' and ₦15,000 credit to 'Profit and Loss Account'
D. ₦7,000 debit to 'Profit and Loss Account' and ₦7,000 credit to 'Rent and Rates'

Correct Answer: A

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Question 2
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
A. ₦5,000
Correct B. ₦5,500
C. ₦6,000
D. ₦6,500

Correct Answer: B

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Question 3
A company's balance sheet as at 31st December 2016 shows a capital of ₦100,000 and a profit of ₦20,000. If the company issues 10% bonus shares, calculate the new capital.
A. ₦120,000
Correct B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: B

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Question 4
A company's trial balance shows a debit balance of ₦50,000 in the 'Salaries and Wages' account. However, the company's accounting records show that the actual salaries paid for the year was ₦30,000. What is the correct journal entry to record the correction?
Correct A. ₦20,000 debit to 'Salaries and Wages' and ₦20,000 credit to 'Profit and Loss Account'
B. ₦30,000 debit to 'Salaries and Wages' and ₦30,000 credit to 'Profit and Loss Account'
C. ₦50,000 debit to 'Salaries and Wages' and ₦50,000 credit to 'Profit and Loss Account'
D. ₦20,000 debit to 'Profit and Loss Account' and ₦20,000 credit to 'Salaries and Wages'

Correct Answer: A

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Question 5
A company issues 1,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
A. ₦6,000
B. ₦6,500
Correct C. ₦7,000
D. ₦7,500

Correct Answer: C

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Question 6
A company issued 10,000 shares of ₹10 each at a premium of ₹5 per share. The total amount received from the issue of shares is ₹1,50,000. Calculate the amount received from the issue of shares at a premium.
A. ₹1,50,000
B. ₹75,000
C. ₹1,00,000
Correct D. ₹1,25,000

Correct Answer: D

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Question 7
A company has two departments, A and B. Department A has a total of 500 employees, out of which 80% are male and 20% are female. Department B has a total of 300 employees, out of which 60% are male and 40% are female. What is the total number of female employees in both departments?
A. 120
B. 150
Correct C. 180
D. 200

Correct Answer: C

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Question 8
A company has a cash balance of ₹50,000 and a bank overdraft of ₹20,000. What is the company's net cash position?
Correct A. ₹30,000
B. ₹40,000
C. ₹50,000
D. ₹60,000

Correct Answer: A

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Question 9
A company has a share capital of ₹1,00,000 and a reserve of ₹50,000. What is the company's total equity?
Correct A. ₹1,50,000
B. ₹1,00,000
C. ₹1,25,000
D. ₹1,50,000

Correct Answer: A

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Question 10
A company has a total of 10,000 shares of ₹10 each. The company issues 20% of its shares at a premium of ₹5 per share. What is the total amount received from the issue of shares at a premium?
A. ₹50,000
Correct B. ₹75,000
C. ₹1,00,000
D. ₹1,25,000

Correct Answer: B

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Question 11
A company has the following transactions in its incomplete records: Purchased goods for ₦120,000 on credit, sold goods for ₦150,000 for cash, and paid a dividend of ₦20,000. Prepare a statement of affairs as at the date of the last transaction.
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 12
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 ₦100,000 and ₦80,000 respectively. During the year, A withdrew ₦20,000 and B introduced ₦10,000. Prepare the partners' capital accounts for the year.
A. ₦120,000
B. ₦140,000
Correct C. ₦160,000
D. ₦180,000

Correct Answer: C

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Question 13
A company issued 10,000 shares of ₦1 each at a premium of 50% and 5,000 shares of ₦5 each at a discount of 10%. Calculate the total amount received from the issue of shares.
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 14
A company purchased a machine for ₦200,000 and depreciated it by 10% per annum. Calculate the value of the machine after 3 years.
A. ₦120,000
B. ₦140,000
Correct C. ₦160,000
D. ₦180,000

Correct Answer: C

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Question 15
A company issued 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦450,000
B. ₦475,000
Correct C. ₦500,000
D. ₦525,000

Correct Answer: C

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Question 16
A company produces two products, X and Y. The selling price of X is ₦200 per unit and that of Y is ₦150 per unit. The company sells 300 units of X and 400 units of Y. If the total profit made from the sale of these products is ₦120,000, calculate the cost price of one unit of product X.
A. ₦100
B. ₦120
Correct C. ₦150
D. ₦180

Correct Answer: C

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Question 17
A company's trading account for the year ended 31st December 2022 is as follows: Debit: Cost of goods sold: ₦1,500,000 Sales returns: ₦20,000 Credit: Sales: ₦2,000,000 Purchase returns: ₦30,000 What is the net profit for the year?
A. ₦500,000
Correct B. ₦520,000
C. ₦540,000
D. ₦560,000

Correct Answer: B

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Question 18
A company's balance sheet as at 31st December 2022 is as follows: Assets: Cash: ₦500,000 Debtors: ₦200,000 Stock: ₦300,000 Prepaid rent: ₦20,000 Liabilities: Creditors: ₦150,000 Loan: ₦100,000 What is the total value of the company's assets?
Correct A. ₦1,030,000
B. ₦1,050,000
C. ₦1,070,000
D. ₦1,090,000

Correct Answer: A

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Question 19
A company's control account for the year ended 31st December 2022 is as follows: Debit: Purchases: ₦1,000,000 Returns inwards: ₦20,000 Credit: Sales: ₦1,500,000 Returns outwards: ₦30,000 What is the net profit for the year?
A. ₦500,000
Correct B. ₦520,000
C. ₦540,000
D. ₦560,000

Correct Answer: B

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Question 20
A company's self-balancing ledger for the year ended 31st December 2022 is as follows: Debit: Purchases: ₦1,000,000 Returns inwards: ₦20,000 Credit: Sales: ₦1,500,000 Returns outwards: ₦30,000 What is the net profit for the year?
A. ₦500,000
Correct B. ₦520,000
C. ₦540,000
D. ₦560,000

Correct Answer: B

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Question 21
A company's public sector accounting for the year ended 31st December 2022 is as follows: Debit: Purchases: ₦1,000,000 Returns inwards: ₦20,000 Credit: Sales: ₦1,500,000 Returns outwards: ₦30,000 What is the net profit for the year?
A. ₦500,000
Correct B. ₦520,000
C. ₦540,000
D. ₦560,000

Correct Answer: B

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Question 22
A company's nature and principles of accounting for the year ended 31st December 2022 is as follows: Debit: Purchases: ₦1,000,000 Returns inwards: ₦20,000 Credit: Sales: ₦1,500,000 Returns outwards: ₦30,000 What is the net profit for the year?
A. ₦500,000
Correct B. ₦520,000
C. ₦540,000
D. ₦560,000

Correct Answer: B

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Question 23
A company's manufacturing and departmental accounts for the year ended 31st December 2022 is as follows: Debit: Purchases: ₦1,000,000 Returns inwards: ₦20,000 Credit: Sales: ₦1,500,000 Returns outwards: ₦30,000 What is the net profit for the year?
A. ₦500,000
Correct B. ₦520,000
C. ₦540,000
D. ₦560,000

Correct Answer: B

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Question 24
A company's manufacturing overheads for the year ended 31st December 2020 were as follows: Direct Labour: ₦1,500,000 Indirect Labour: ₦800,000 Rent: ₦600,000 Insurance: ₦400,000 Depreciation: ₦700,000 What is the total manufacturing overheads for the year?
A. ₦3,500,000
B. ₦3,600,000
C. ₦3,800,000
Correct D. ₦4,000,000

Correct Answer: D

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Question 25
A company's share capital consists of 10,000 ordinary shares of ₦10 each and 5,000 preference shares of ₦5 each. If the company issues 2,000 ordinary shares and 1,000 preference shares, what is the increase in share capital?
A. ₦30,000
B. ₦40,000
C. ₦50,000
Correct D. ₦60,000

Correct Answer: D

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