POST UTME COVENANT UNIVERSITY 2025 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 2025 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A partnership is dissolved when a partner dies. What is the accounting treatment for the deceased partner's share of the partnership's assets and liabilities?
A. The deceased partner's share is distributed to the remaining partners.
B. The deceased partner's share is transferred to the partnership's capital account.
C. The deceased partner's share is written off as a loss.
Correct D. The deceased partner's share is distributed to the deceased partner's estate.

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A public sector organization has a budget of ₦10,000,000 for the year. The organization has the following expenses: salaries ₦4,000,000, rent ₦1,500,000, and utilities ₦750,000. What is the percentage of the budget spent on salaries?
Correct A. 40%
B. 50%
C. 60%
D. 70%

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 5 years and a residual value of ₦50,000, what is the annual depreciation expense?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company has the following transactions: purchase of equipment for ₦200,000, sale of goods for ₦150,000, and purchase of inventory for ₦75,000. What is the net effect on the company's cash balance?
Correct A. ₦25,000 decrease
B. ₦25,000 increase
C. ₦50,000 decrease
D. ₦50,000 increase

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company has the following ledger accounts: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. What is the total amount of assets and liabilities?
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
B. ₦500,000
Correct C. ₦750,000
D. ₦1,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 1,500 | | 3rd Jan | Cash | | 500 | | 4th Jan | Bank | | 1,000 | What is the balance in the cash book?
A. ₦1,500
Correct B. ₦2,000
C. ₦3,000
D. ₦4,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company's manufacturing account for the year ended 31st December 20XX shows the following: | Particulars | Cost | | --- | --- | | Opening stock | 10,000 | | Raw materials purchased | 50,000 | | Direct labour | 20,000 | | Factory overheads | 15,000 | | Closing stock | 12,000 | What is the total cost of production?
A. ₦67,000
B. ₦77,000
Correct C. ₦87,000
D. ₦97,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's balance sheet as at 31st December 20XX shows the following: | Assets | ₦ | | --- | --- | | Current assets | 50,000 | | Non-current assets | 100,000 | | Total assets | 150,000 | | Liabilities | ₦ | | --- | --- | | Current liabilities | 20,000 | | Non-current liabilities | 80,000 | | Total liabilities | 100,000 | What is the amount of shareholders' funds?
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 1,500 | | 3rd Jan | Cash | | 500 | | 4th Jan | Bank | | 1,000 | What is the balance in the bank account?
A. ₦1,500
Correct B. ₦2,000
C. ₦3,000
D. ₦4,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The shares were fully paid up. Calculate the total amount received from the issue of shares.
A. ₦100,000
B. ₦150,000
C. ₦200,000
Correct D. ₦250,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦1,000 | | | 2 Jan | Bank | | ₦500 | | 3 Jan | Cash | | ₦200 | | 4 Jan | Bank | ₦300 | | | 5 Jan | Cash | | ₦100 | What is the balance in the cash book?
A. ₦1,300
B. ₦1,400
Correct C. ₦1,500
D. ₦1,600

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's trading account for the year ended 31 December 20X7 is as follows: | Particulars | Debit | Credit | | --- | --- | --- | | Sales | ₦500,000 | | | Purchases | | ₦300,000 | | Returns Outwards | ₦20,000 | | | Returns Inwards | | ₦15,000 | | Carriage Inwards | | ₦10,000 | | Carriage Outwards | ₦5,000 | | What is the gross profit for the year?
A. ₦150,000
B. ₦160,000
Correct C. ₦170,000
D. ₦180,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's balance sheet as at 31 December 20X7 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Profit & Loss A/c | 10,000 | | Prepaid Rent | 5,000 | | | What is the total amount of liabilities?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | ₦1,000 | | | 2 Jan | Bank | | ₦500 | | 3 Jan | Cash | | ₦200 | | 4 Jan | Bank | ₦300 | | | 5 Jan | Cash | | ₦100 | What is the balance in the bank account?
A. ₦1,300
B. ₦1,400
Correct C. ₦1,500
D. ₦1,600

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's trading account for the year ended 31 December 20X7 is as follows: | Particulars | Debit | Credit | | --- | --- | --- | | Sales | ₦500,000 | | | Purchases | | ₦300,000 | | Returns Outwards | ₦20,000 | | | Returns Inwards | | ₦15,000 | | Carriage Inwards | | ₦10,000 | | Carriage Outwards | ₦5,000 | | What is the net profit for the year?
A. ₦120,000
B. ₦130,000
Correct C. ₦140,000
D. ₦150,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's balance sheet as at 31 December 20X7 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Share Capital | 50,000 | | Stock | 40,000 | Profit & Loss A/c | 10,000 | | Prepaid Rent | 5,000 | | | What is the total amount of assets?
A. ₦90,000
B. ₦100,000
C. ₦110,000
Correct D. ₦120,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The company also issued 5% debentures of ₦10,000 at 5% discount. Calculate the total amount received from the issue of shares and debentures.
A. ₦10,500
B. ₦11,000
Correct C. ₦11,500
D. ₦12,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | | 4th Jan | Bank | | 1,200 | Calculate the bank balance on 4th Jan.
A. ₦1000
B. ₦1050
C. ₦1100
Correct D. ₦1150

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's trial balance shows the following: | Account | Debit | Credit | | --- | --- | --- | | Cash | 1,000 | | | Bank | | 500 | | Sales | | 2,000 | | Purchases | 1,500 | | | Capital | | 1,000 | Calculate the net profit or loss.
A. ₦00
Correct B. ₦100
C. ₦200
D. ₦300

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | | 4th Jan | Bank | | 1,200 | Calculate the bank balance on 4th Jan.
A. ₦1000
B. ₦1050
C. ₦1100
Correct D. ₦1150

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company's trial balance shows the following: | Account | Debit | Credit | | --- | --- | --- | | Cash | 1,000 | | | Bank | | 500 | | Sales | | 2,000 | | Purchases | 1,500 | | | Capital | | 1,000 | Calculate the net profit or loss.
A. ₦00
Correct B. ₦100
C. ₦200
D. ₦300

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | | 4th Jan | Bank | | 1,200 | Calculate the bank balance on 4th Jan.
A. ₦1000
B. ₦1050
C. ₦1100
Correct D. ₦1150

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company's trial balance shows the following: | Account | Debit | Credit | | --- | --- | --- | | Cash | 1,000 | | | Bank | | 500 | | Sales | | 2,000 | | Purchases | 1,500 | | | Capital | | 1,000 | Calculate the net profit or loss.
A. ₦00
Correct B. ₦100
C. ₦200
D. ₦300

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has two partners, A and B, who share profits in the ratio 3:2. The capital contributed by A is ₦120,000 and that by B is ₦80,000. Calculate the ratio of their capitals.
A. 5:3
Correct B. 3:2
C. 2:3
D. 4:3

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support