POST UTME COAL CITY UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A partnership 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 share of profit of partner A.
A. ₦60,000
B. ₦80,000
C. ₦90,000
D. ₦100,000
Question 2
A company's cash book shows a balance of ₦120,000. However, the bank statement shows a balance of ₦100,000. The company's accountant has reconciled the difference by adding a credit note of ₦10,000 and a debit note of ₦5,000. What is the correct explanation for the difference?
A. The company has outstanding checks totaling ₦10,000.
B. The company has deposited ₦10,000 into the bank but has not yet been credited.
C. The company has issued a credit note of ₦10,000 to a customer.
D. The company has paid a bill of ₦10,000 but has not yet been debited.
Question 3
A company's assets are valued at ₦600 million, liabilities are ₦250 million, and equity is ₦350 million. What is the company's ratio of debt to equity?
A. 1:2
B. 1:3
C. 2:3
D. 3:4
Question 4
A company issued 5,000 debentures of ₦1,000 each at a discount of 5%. The total amount received from the issue of debentures is ₦4,500,000. Calculate the amount of discount.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 5
A company purchased a machine for ₦200,000. 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.
A. ₦36,000
B. ₦40,000
C. ₦38,000
D. ₦42,000
Question 6
A company, XYZ Ltd, has the following transactions during the year: Purchase of goods 100,000; Sale of goods 150,000; Wages 20,000; Rent 10,000. Prepare the bank reconciliation statement, showing the differences between the cash book and bank statements.
A. Differences: 10,000; Cash Book Balance: 60,000; Bank Statement Balance: 70,000
B. Differences: 20,000; Cash Book Balance: 50,000; Bank Statement Balance: 60,000
C. Differences: 10,000; Cash Book Balance: 60,000; Bank Statement Balance: 70,000
D. Differences: 20,000; Cash Book Balance: 50,000; Bank Statement Balance: 60,000
Question 7
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. The partnership has a profit of ₦1,200,000. How much profit will partner A receive?
A. ₦720,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
Question 8
A company issued 10,000 shares of ₦5 each at a premium of ₦2. The shares were subscribed for by the public in full. Calculate the amount received from the issue of shares.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 9
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount of share premium.
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 10
A company uses the double entry system. The following transactions were recorded during the year: Purchase of goods for ₦120,000, Sale of goods for ₦180,000, and Payment of ₦30,000 to a creditor. Prepare the ledger accounts for the company.
A. Purchase Ledger: Debit: ₦120,000, Credit: ₦0; Sales Ledger: Debit: ₦0, Credit: ₦180,000; Creditor Ledger: Debit: ₦0, Credit: ₦30,000
B. Purchase Ledger: Debit: ₦0, Credit: ₦120,000; Sales Ledger: Debit: ₦180,000, Credit: ₦0; Creditor Ledger: Debit: ₦30,000, Credit: ₦0
C. Purchase Ledger: Debit: ₦120,000, Credit: ₦0; Sales Ledger: Debit: ₦0, Credit: ₦180,000; Creditor Ledger: Debit: ₦0, Credit: ₦30,000
D. Purchase Ledger: Debit: ₦0, Credit: ₦120,000; Sales Ledger: Debit: ₦180,000, Credit: ₦0; Creditor Ledger: Debit: ₦30,000, Credit: ₦0
Question 11
A company's assets are valued at ₦500 million, liabilities are ₦200 million, and equity is ₦300 million. What is the company's ratio of debt to equity?
A. 1:2
B. 1:3
C. 2:3
D. 3:4
Question 12
A company is considering the purchase of a machine that costs ₦1,500,000. The machine is expected to last for 5 years and will reduce production costs by ₦200,000 per year. The company's cost of capital is 10% per annum. What is the net present value (NPV) of the machine?
A. ₦750,000
B. ₦1,000,000
C. ₦1,250,000
D. ₦1,500,000
Question 13
A partnership was formed on 1st January 2018 between two partners, A and B, who contributed ₦50,000 and ₦30,000 respectively. The partnership made a profit of ₦20,000 in the first year.
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 14
A company uses the single entry system. The following transactions were recorded during the year: Purchase of goods for ₦120,000, Sale of goods for ₦180,000, and Payment of ₦30,000 to a creditor. Prepare the ledger accounts for the company.
A. Purchase Ledger: Debit: ₦120,000, Credit: ₦0; Sales Ledger: Debit: ₦0, Credit: ₦180,000; Creditor Ledger: Debit: ₦0, Credit: ₦30,000
B. Purchase Ledger: Debit: ₦0, Credit: ₦120,000; Sales Ledger: Debit: ₦180,000, Credit: ₦0; Creditor Ledger: Debit: ₦30,000, Credit: ₦0
C. Purchase Ledger: Debit: ₦120,000, Credit: ₦0; Sales Ledger: Debit: ₦0, Credit: ₦180,000; Creditor Ledger: Debit: ₦0, Credit: ₦30,000
D. Purchase Ledger: Debit: ₦0, Credit: ₦120,000; Sales Ledger: Debit: ₦180,000, Credit: ₦0; Creditor Ledger: Debit: ₦30,000, Credit: ₦0
Question 15
A partnership is formed between two individuals, A and B, with a capital of ₦100,000 each. During the year, A withdraws ₦20,000 and B withdraws ₦15,000. Prepare the capital account for the partnership.
A. Capital Account: A: ₦100,000 - ₦20,000 = ₦80,000; B: ₦100,000 - ₦15,000 = ₦85,000
B. Capital Account: A: ₦100,000 - ₦15,000 = ₦85,000; B: ₦100,000 - ₦20,000 = ₦80,000
C. Capital Account: A: ₦100,000 - ₦20,000 = ₦80,000; B: ₦100,000 - ₦15,000 = ₦85,000
D. Capital Account: A: ₦100,000 - ₦15,000 = ₦85,000; B: ₦100,000 - ₦20,000 = ₦80,000

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