POST UTME COVENANT UNIVERSITY 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance showed an error of ₦10,000 due to an incorrect posting of a debit entry. The error was discovered during the preparation of the balance sheet. Prepare the necessary journal entry to correct the error.
A. Debit Cash ₦10,000, Credit Profit and Loss Account ₦10,000
B. Debit Profit and Loss Account ₦10,000, Credit Cash ₦10,000
C. Debit Profit and Loss Account ₦10,000, Credit Bank ₦10,000
D. Debit Bank ₦10,000, Credit Profit and Loss Account ₦10,000
Question 2
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.
A. ₦1,050,000
B. ₦1,000,000
C. ₦950,000
D. ₦900,000
Question 3
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
C. ₦240,000
D. ₦260,000
Question 4
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
B. ₦650,000
C. ₦700,000
D. ₦750,000
Question 5
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦500,000 and its current liabilities are ₦250,000, what is the company's quick ratio?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 6
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
C. ₣0,750
D. ₣0,950
Question 7
The following trial balance was extracted from the ledger of a government ministry. Prepare the ledger accounts for the assets and liabilities.
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.
Question 8
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦9,500,000
B. ₦9,900,000
C. ₦10,000,000
D. ₦10,500,000
Question 9
A company's departmental accounts for the year ended December 31, 2022, show the following: 'Sales 100,000, Cost of Goods Sold 60,000, Gross Profit 40,000, Operating Expenses 10,000, Net Profit 30,000'. What is the company's gross profit percentage?
A. 40%
B. 50%
C. 60%
D. 70%
Question 10
The following journal entry was posted to the ledger of a company. Prepare the ledger accounts for the assets and liabilities.
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.
Question 11
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
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 12
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?
A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000
Question 13
A company's profit and loss account for the year ended December 31, 2022, shows the following: 'Sales 100,000, Cost of Goods Sold 60,000, Gross Profit 40,000, Operating Expenses 10,000, Net Profit 30,000'. What is the company's gross profit percentage?
A. 40%
B. 50%
C. 60%
D. 70%
Question 14
A company's cash book shows the following transactions: 'Dr. Cash A/c 5,000, Cr. Bank A/c 5,000' and 'Dr. Bank A/c 3,000, Cr. Cash A/c 3,000'. What is the net effect of these transactions on the company's cash and bank balances?
A. The company's cash balance increases by 2,000 and its bank balance decreases by 2,000.
B. The company's cash balance decreases by 2,000 and its bank balance increases by 2,000.
C. The company's cash balance remains the same and its bank balance remains the same.
D. The company's cash balance increases by 2,000 and its bank balance increases by 2,000.
Question 15
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
B. ₦ 100,000
C. ₦ 110,000
D. ₦ 120,000

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