POST UTME COVENANT UNIVERSITY 2018 Accounting | Objective

Are you preparing for POST UTME COVENANT UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2018 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
A. ₣0,250
B. ₣0,500
Correct C. ₣0,750
D. ₣0,950

Correct Answer: C

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Question 2
A manufacturing company uses a job costing system. The following data are extracted from the company's records for the month of January: Direct Materials: ₦0,000 Direct Labour: ₣0,000 Overheads: ₢0,000 Total Cost: ₥0,000 Calculate the cost of production per unit.
A. ₡5
B. ₢0
Correct C. ₢5
D. ₣0

Correct Answer: C

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Question 3
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders and the amount of discount on the debentures.
Correct A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000

Correct Answer: A

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Question 4
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. The profit-sharing ratio is 3:2. If the profit for the year is ₦120,000, calculate the amount of profit to be shared by each partner.
A. ₦90,000
Correct B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: B

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Question 5
A company's trading account for the year shows a profit of ₦150,000. The company also has a non-trading income of ₦20,000. Calculate the company's total profit for the year.
A. ₦170,000
B. ₦180,000
C. ₦190,000
Correct D. ₦200,000

Correct Answer: D

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Question 6
A company issues 10,000, 9% debentures of ₦100 each at a premium of 5%. Calculate the amount received from the debenture holders and the amount of premium on the debentures.
Correct A. ₦1,050,000
B. ₦1,000,000
C. ₦950,000
D. ₦900,000

Correct Answer: A

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Question 7
A company's balance sheet shows a total assets of ₦500,000 and a total liabilities of ₦300,000. Calculate the company's net worth.
Correct A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: A

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Question 8
The following trial balance was extracted from the ledger of a government ministry. Prepare the ledger accounts for the assets and liabilities.
Correct A. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 30,000.
B. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 20,000.
C. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 40,000.
D. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 50,000.

Correct Answer: A

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Question 9
A company uses the straight-line method of depreciation. If the asset cost ₦ 500,000 and has a residual value of ₦ 50,000, what is the annual depreciation charge if the asset is used for 5 years?
A. ₦ 90,000
Correct B. ₦ 100,000
C. ₦ 110,000
D. ₦ 120,000

Correct Answer: B

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Question 10
The following journal entry was posted to the ledger of a company. Prepare the ledger accounts for the assets and liabilities.
Correct A. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 30,000.
B. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 20,000.
C. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 40,000.
D. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 50,000.

Correct Answer: A

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Question 11
A company uses the straight-line method of depreciation. If the asset cost ₦ 500,000 and has a residual value of ₦ 50,000, what is the annual depreciation charge if the asset is used for 5 years?
A. ₦ 90,000
Correct B. ₦ 100,000
C. ₦ 110,000
D. ₦ 120,000

Correct Answer: B

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Question 12
The following trial balance was extracted from the ledger of a government ministry. Prepare the ledger accounts for the assets and liabilities.
Correct A. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 30,000.
B. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 20,000.
C. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 40,000.
D. Assets: Cash ₦ 100,000, Prepaid Rent ₦ 50,000, Office Equipment ₦ 200,000. Liabilities: Accrued Expenses ₦ 50,000.

Correct Answer: A

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Question 13
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
Correct A. ₦9,500,000
B. ₦9,900,000
C. ₦10,000,000
D. ₦10,500,000

Correct Answer: A

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Question 14
A partnership has three partners: A, B, and C. The capital accounts of A, B, and C are ₦50,000, ₦30,000, and ₦20,000 respectively. The profit-sharing ratio is 3:2:1. Calculate the share of profit of partner A.
Correct A. ₦15,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 15
A company has a capital of ₦1,000,000 and a reserve of ₦200,000. The company issues 10,000, 10% shares of ₦10 each at a premium of ₦2. Calculate the amount received from share holders.
A. ₦110,000
Correct B. ₦120,000
C. ₦130,000
D. ₦140,000

Correct Answer: B

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Question 16
A government agency has a budget of ₦500,000 for a project. The project requires an initial investment of ₦100,000 and a recurrent expenditure of ₦50,000 per annum for 5 years. Calculate the total expenditure for the project.
A. ₦600,000
Correct B. ₦650,000
C. ₦700,000
D. ₦750,000

Correct Answer: B

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Question 17
A company has a capital of ₦1,500,000 and a reserve of ₦300,000. The company issues 15,000, 10% shares of ₦10 each at a premium of ₦3. Calculate the amount received from share holders.
A. ₦225,000
Correct B. ₦235,000
C. ₦245,000
D. ₦255,000

Correct Answer: B

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Question 18
A company uses the straight-line method of depreciation for a machine purchased at ₦250,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation charge.
A. ₦40,000
Correct B. ₦45,000
C. ₦50,000
D. ₦55,000

Correct Answer: B

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Question 19
A firm maintains a cash book and a bank statement. The cash book shows a balance of ₦120,000, while the bank statement shows a balance of ₦150,000. The difference is due to a bank error. Calculate the correct balance.
A. ₦30,000
B. ₦35,000
C. ₦40,000
Correct D. ₦45,000

Correct Answer: D

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Question 20
A manufacturing company produces 10,000 units of a product in a month. The total cost of production is ₦1,500,000, which includes direct materials of ₦600,000 and direct labor of ₦400,000. Calculate the variable cost per unit.
A. ₦60
B. ₦65
C. ₦70
Correct D. ₦75

Correct Answer: D

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Question 21
A company has the following balance sheet: ₦1,000,000 in assets, ₦500,000 in liabilities, and ₦200,000 in equity. Calculate the return on equity.
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 22
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and earns a salary of ₦80,000. Partner B has a 40% interest and earns a salary of ₦60,000. Calculate the total profit.
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 23
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
Correct A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 24
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership's profit is ₦180,000, how much will partner A receive?
Correct A. ₦108,000
B. ₦90,000
C. ₦120,000
D. ₦150,000

Correct Answer: A

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Question 25
A company's trading account shows a profit of ₦250,000. However, the company also has a non-trading income of ₦50,000. What is the company's total profit?
Correct A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000

Correct Answer: A

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