POST UTME CRAWFORD UNIVERSITY 2019 Accounting | Objective

Are you preparing for POST UTME CRAWFORD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5% debentures of ₦ 10,000. Prepare the journal entries for the issue of shares and debentures.
Correct A. Debit Share Capital ₦ 20,000, Credit Cash ₦ 20,000
B. Debit Share Capital ₦ 10,000, Credit Cash ₦ 10,000
C. Debit Share Capital ₦ 20,000, Credit Cash ₦ 10,000
D. Debit Share Capital ₦ 10,000, Credit Cash ₦ 20,000

Correct Answer: A

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Question 2
A company's trading account for the year ended 31st December 2022 showed a profit of ₦ 50,000. The company's balance sheet as at 31st December 2021 showed a capital of ₦ 100,000 and a profit and loss account balance of ₦ 20,000. Prepare the company's balance sheet as at 31st December 2022.
Correct A. Capital ₦ 120,000, Profit and Loss Account ₦ 70,000
B. Capital ₦ 120,000, Profit and Loss Account ₦ 30,000
C. Capital ₦ 100,000, Profit and Loss Account ₦ 70,000
D. Capital ₦ 100,000, Profit and Loss Account ₦ 30,000

Correct Answer: A

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Question 3
A public sector organization has the following transactions for the year ended 31st December 2022:
Correct A. Debit Appropriation Account ₦ 50,000, Credit Revenue ₦ 50,000
B. Debit Appropriation Account ₦ 50,000, Credit Capital ₦ 50,000
C. Debit Capital ₦ 50,000, Credit Revenue ₦ 50,000
D. Debit Revenue ₦ 50,000, Credit Capital ₦ 50,000

Correct Answer: A

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Question 4
A company's balance sheet as at 31st December 2021 showed a capital of ₦ 100,000 and a profit and loss account balance of ₦ 20,000. The company's trading account for the year ended 31st December 2022 showed a profit of ₦ 50,000. Prepare the company's balance sheet as at 31st December 2022.
Correct A. Capital ₦ 120,000, Profit and Loss Account ₦ 70,000
B. Capital ₦ 120,000, Profit and Loss Account ₦ 30,000
C. Capital ₦ 100,000, Profit and Loss Account ₦ 70,000
D. Capital ₦ 100,000, Profit and Loss Account ₦ 30,000

Correct Answer: A

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Question 5
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issued 5% debentures of ₦ 10,000. Prepare the journal entries for the issue of shares and debentures.
Correct A. Debit Share Capital ₦ 20,000, Credit Cash ₦ 20,000
B. Debit Share Capital ₦ 10,000, Credit Cash ₦ 10,000
C. Debit Share Capital ₦ 20,000, Credit Cash ₦ 10,000
D. Debit Share Capital ₦ 10,000, Credit Cash ₦ 20,000

Correct Answer: A

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Question 6
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
B. ₦975,000
Correct C. ₦1,000,000
D. ₦1,025,000

Correct Answer: C

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Question 7
A manufacturing company uses a job costing system. The following data relate to Job No. 101: Direct Materials: ₦10,000, Direct Labour: ₦8,000, Factory Overheads: ₦12,000. Calculate the total cost of Job No. 101.
A. ₦30,000
Correct B. ₦30,800
C. ₦31,000
D. ₦31,200

Correct Answer: B

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Question 8
A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The company's cash book also shows a debit balance of ₦5,000 in the bank column. What is the correct balance in the cash book?
A. ₦55,000
B. ₦55,500
Correct C. ₦56,000
D. ₦56,500

Correct Answer: C

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Question 9
A company issued 5,000, 12% preference shares of ₦10 each at a premium of ₦2 per share. Calculate the amount received from the shareholders.
A. ₦50,000
B. ₦52,000
Correct C. ₦54,000
D. ₦56,000

Correct Answer: C

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Question 10
A company's cash book shows a balance of ₦80,000. The bank statement shows a balance of ₦70,000. The company's cash book also shows a credit balance of ₦10,000 in the bank column. What is the correct balance in the cash book?
A. ₦75,000
B. ₦75,500
Correct C. ₦76,000
D. ₦76,500

Correct Answer: C

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Question 11
A company produces two products, X and Y, using two machines, A and B. The production process involves the following steps: cutting, drilling, and assembly. The company uses a job costing system and allocates costs to each product based on the machine hours used. The following data is available for the month of January:
A. Product X should be allocated 60% of the total machine hours and Product Y should be allocated 40% of the total machine hours.
Correct B. Product X should be allocated 50% of the total machine hours and Product Y should be allocated 50% of the total machine hours.
C. Product X should be allocated 40% of the total machine hours and Product Y should be allocated 60% of the total machine hours.
D. Product X should be allocated 30% of the total machine hours and Product Y should be allocated 70% of the total machine hours.

Correct Answer: B

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Question 12
A partnership is formed between three individuals, A, B, and C, who contribute capital in the ratio 3:2:1. The partnership agreement specifies that the profits and losses will be shared in the same ratio as the capital contributions. If the partnership makes a profit of ₦120,000, how much will each partner receive?
A. ₦36,000
B. ₦48,000
Correct C. ₦60,000
D. ₦72,000

Correct Answer: C

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Question 13
A company purchases a machine for ₦500,000 and depreciates it using the straight-line method over a period of 5 years. The annual depreciation is ₦80,000. What is the carrying value of the machine after 3 years?
A. ₦340,000
Correct B. ₦360,000
C. ₦380,000
D. ₦400,000

Correct Answer: B

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Question 14
A company prepares its financial statements for the year ended December 31, 2022. The company's cash book shows a balance of ₦250,000 on January 1, 2022, and ₦300,000 on December 31, 2022. The bank statement shows a balance of ₦280,000 on January 1, 2022, and ₦320,000 on December 31, 2022. What is the difference between the cash book balance and the bank statement balance at the beginning of the year?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 15
A company's trading account for the year ended December 31, 2022, shows a profit of ₦500,000. The company's profit and loss account shows a net profit of ₦600,000. What is the company's net worth at the end of the year?
A. ₦1,100,000
Correct B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: B

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Question 16
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦150,000?
Correct A. ₦30,000
B. ₦25,000
C. ₦20,000
D. ₦15,000

Correct Answer: A

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Question 17
A company's trial balance shows the following accounts: Sales ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. What is the company's gross profit?
A. ₦200,000
Correct B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: B

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Question 18
A government agency's budget shows the following expenses: Salaries ₦1,500,000, Rent ₦500,000, and Utilities ₦200,000. What is the total expense?
A. ₦2,200,000
Correct B. ₦2,500,000
C. ₦2,200,000
D. ₦2,500,000

Correct Answer: B

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Question 19
A company's cash book shows the following transactions: Cash received from customers ₦1,000,000, Cash paid to suppliers ₦500,000, and Cash received from bank ₦200,000. What is the net increase in cash?
A. ₦700,000
B. ₦800,000
C. ₦900,000
Correct D. ₦1,000,000

Correct Answer: D

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Question 20
A company's bank reconciliation statement shows the following discrepancies: Bank balance ₦500,000, Cash balance ₦200,000, and Outstanding checks ₦100,000. What is the net discrepancy?
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 21
A company uses the cash book to record all its financial transactions. The cash book is a journal that contains all the cash transactions of the company. What is the main advantage of using a cash book?
Correct A. It helps to reduce the amount of cash transactions that need to be recorded.
B. It helps to increase the accuracy of financial statements.
C. It helps to reduce the amount of time spent on recording financial transactions.
D. It helps to increase the amount of cash available for business operations.

Correct Answer: A

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Question 22
A company has a bank account with a balance of ₦50,000. The company deposits ₦20,000 into the account and withdraws ₦15,000. What is the new balance of the account?
Correct A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000

Correct Answer: A

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Question 23
A company uses a self-balancing ledger to record its financial transactions. What is the main advantage of using a self-balancing ledger?
A. It helps to reduce the amount of time spent on recording financial transactions.
Correct B. It helps to increase the accuracy of financial statements.
C. It helps to reduce the amount of cash transactions that need to be recorded.
D. It helps to increase the amount of cash available for business operations.

Correct Answer: B

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Question 24
A company has a departmental account for its manufacturing department. The department has a balance of ₦100,000. The company transfers ₦20,000 from the departmental account to the general ledger. What is the new balance of the departmental account?
Correct A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 25
A company uses the double entry system to record its financial transactions. What is the main advantage of using the double entry system?
Correct A. It helps to increase the accuracy of financial statements.
B. It helps to reduce the amount of time spent on recording financial transactions.
C. It helps to reduce the amount of cash transactions that need to be recorded.
D. It helps to increase the amount of cash available for business operations.

Correct Answer: A

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