POST UTME COAL CITY UNIVERSITY 2023 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 2023 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to the following transactions: a deposit of ₦20,000, a withdrawal of ₦30,000, and an error in the cash book of ₦10,000. What is the correct balance in the cash book?
Correct A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000

Correct Answer: A

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Question 2
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.
A. ₦90,000
B. ₦95,000
Correct C. ₦100,000
D. ₦105,000

Correct Answer: C

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Question 3
A company's trial balance shows the following balances: Accounts Payable ₦100,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. Prepare a balance sheet for the company.
A. ₦700,000
B. ₦800,000
Correct C. ₦900,000
D. ₦1,000,000

Correct Answer: C

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Question 4
A company uses the single-entry system of accounting. The company's cash book shows the following transactions: a deposit of ₦20,000, a withdrawal of ₦30,000, and an error in the cash book of ₦10,000. What is the correct balance in the cash book?
Correct A. ₦130,000
B. ₦140,000
C. ₦150,000
D. ₦160,000

Correct Answer: A

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Question 5
A company's financial statements for the year ended December 31, 2022, are as follows: Trading Profit ₦200,000, Profit Before Tax ₦250,000, and Tax Expense ₦50,000. Prepare the company's income statement for the year.
A. ₦300,000
B. ₦350,000
Correct C. ₦400,000
D. ₦450,000

Correct Answer: C

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Question 6
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022 is as follows: Debit: Cash ¡ 500,000 Accounts Payable ¡ 200,000 Sales Revenue ¡ 1,000,000 Cost of Goods Sold ¡ 600,000 Credit: Accounts Receivable ¡ 300,000 Common Stock ¡ 800,000 Dividends ¡ 100,000 Equipment ¡ 400,000 What is the company's net income for the year?
A. ¡ 400,000
Correct B. ¡ 500,000
C. ¡ 600,000
D. ¡ 700,000

Correct Answer: B

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Question 7
A manufacturing company uses the process costing method to account for its production costs. The company's production costs for the month of January 2023 are as follows: Direct Materials ¡ 100,000 Direct Labor ¡ 150,000 Manufacturing Overhead ¡ 200,000 What is the total production cost for the month?
A. ¡ 450,000
B. ¡ 500,000
Correct C. ¡ 550,000
D. ¡ 600,000

Correct Answer: C

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Question 8
A company's trial balance as at 31st December 2022 is as follows: Debit: Cash ¡ 500,000 Accounts Payable ¡ 200,000 Sales Revenue ¡ 1,000,000 Cost of Goods Sold ¡ 600,000 Credit: Accounts Receivable ¡ 300,000 Common Stock ¡ 800,000 Dividends ¡ 100,000 Equipment ¡ 400,000 What is the company's total assets?
A. ¡ 1,200,000
B. ¡ 1,300,000
C. ¡ 1,400,000
Correct D. ¡ 1,500,000

Correct Answer: D

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Question 9
A company uses the single-entry system of accounting. The company's trial balance as at 31st December 2022 is as follows: Debit: Cash ¡ 500,000 Accounts Payable ¡ 200,000 Sales Revenue ¡ 1,000,000 Cost of Goods Sold ¡ 600,000 Credit: Accounts Receivable ¡ 300,000 Common Stock ¡ 800,000 Dividends ¡ 100,000 Equipment ¡ 400,000 What is the company's net income for the year?
A. ¡ 400,000
Correct B. ¡ 500,000
C. ¡ 600,000
D. ¡ 700,000

Correct Answer: B

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Question 10
A manufacturing company uses the process costing method to account for its production costs. The company's production costs for the month of January 2023 are as follows: Direct Materials ¡ 100,000 Direct Labor ¡ 150,000 Manufacturing Overhead ¡ 200,000 What is the total production cost for the month?
A. ¡ 450,000
B. ¡ 500,000
Correct C. ¡ 550,000
D. ¡ 600,000

Correct Answer: C

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Question 11
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦950,000
Correct B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000

Correct Answer: B

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Question 12
A public sector organization has a cash book balance of ₦500,000. The bank statement shows a balance of ₦550,000. The difference is due to a bank overdraft of ₦50,000. Calculate the cash book balance after reconciliation.
A. ₦500,000
B. ₦525,000
Correct C. ₦550,000
D. ₦575,000

Correct Answer: C

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Question 13
A company purchases a machine for ₦1,500,000 and depreciates it by 10% per annum using the straight-line method. Calculate the depreciation for the first year.
Correct A. ₦150,000
B. ₦135,000
C. ₦120,000
D. ₦105,000

Correct Answer: A

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Question 14
A company issues 5,000, 10% preference shares of ₦50 each at a premium of ₦5 per share. Calculate the amount received from shareholders.
A. ₦250,000
B. ₦275,000
Correct C. ₦300,000
D. ₦325,000

Correct Answer: C

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Question 15
A company has a cash book balance of ₦200,000. The bank statement shows a balance of ₦220,000. The difference is due to a bank overdraft of ₦20,000. Calculate the cash book balance after reconciliation.
A. ₦200,000
Correct B. ₦220,000
C. ₦240,000
D. ₦260,000

Correct Answer: B

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Question 16
A company purchases a machine for ₦2,000,000 and depreciates it by 15% per annum using the straight-line method. Calculate the depreciation for the first year.
Correct A. ₦300,000
B. ₦270,000
C. ₦240,000
D. ₦210,000

Correct Answer: A

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Question 17
A company issues 10,000, 8% ordinary shares of ₦20 each at a premium of ₦2 per share. Calculate the amount received from shareholders.
A. ₦220,000
B. ₦240,000
Correct C. ₦260,000
D. ₦280,000

Correct Answer: C

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Question 18
A company has a cash book balance of ₦300,000. The bank statement shows a balance of ₦320,000. The difference is due to a bank overdraft of ₦20,000. Calculate the cash book balance after reconciliation.
A. ₦300,000
Correct B. ₦320,000
C. ₦340,000
D. ₦360,000

Correct Answer: B

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Question 19
A company purchases a machine for ₦1,000,000 and depreciates it by 10% per annum using the straight-line method. Calculate the depreciation for the first year.
Correct A. ₦100,000
B. ₦90,000
C. ₦80,000
D. ₦70,000

Correct Answer: A

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Question 20
A company uses the double-entry system to record its transactions. The company's cash book shows a balance of ₦125,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦5,000 is due to a bank charge of ₦2,000 and a cheque deposited but not yet credited by the bank. What is the correct journal entry to record the bank charge?
Correct A. Bank Charges A/c Dr. ₦2,000
B. Bank Charges A/c Dr. ₦5,000
C. Cash A/c Dr. ₦2,000
D. Bank Charges A/c Dr. ₦1,000

Correct Answer: A

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Question 21
A company's ledger shows the following balances: Debtors A/c ₦50,000, Creditors A/c ₦30,000, Capital A/c ₦100,000, and Profit and Loss A/c ₦20,000. What is the total value of the company's assets?
A. ₦200,000
B. ₦150,000
C. ₦120,000
Correct D. ₦180,000

Correct Answer: D

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Question 22
A company uses the self-balancing ledger system. The ledger shows the following balances: Debtors A/c ₦50,000, Creditors A/c ₦30,000, Capital A/c ₦100,000, and Profit and Loss A/c ₦20,000. What is the total value of the company's assets?
A. ₦200,000
B. ₦150,000
C. ₦120,000
Correct D. ₦180,000

Correct Answer: D

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Question 23
A company's ledger shows the following balances: Debtors A/c ₦50,000, Creditors A/c ₦30,000, Capital A/c ₦100,000, and Profit and Loss A/c ₦20,000. What is the total value of the company's assets?
A. ₦200,000
B. ₦150,000
C. ₦120,000
Correct D. ₦180,000

Correct Answer: D

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Question 24
A company uses the double-entry system to record its transactions. The company's cash book shows a balance of ₦125,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦5,000 is due to a bank charge of ₦2,000 and a cheque deposited but not yet credited by the bank. What is the correct journal entry to record the bank charge?
Correct A. Bank Charges A/c Dr. ₦2,000
B. Bank Charges A/c Dr. ₦5,000
C. Cash A/c Dr. ₦2,000
D. Bank Charges A/c Dr. ₦1,000

Correct Answer: A

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Question 25
A company's ledger shows the following balances: Debtors A/c ₦50,000, Creditors A/c ₦30,000, Capital A/c ₦100,000, and Profit and Loss A/c ₦20,000. What is the total value of the company's assets?
A. ₦200,000
B. ₦150,000
C. ₦120,000
Correct D. ₦180,000

Correct Answer: D

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