POST UTME DELSU 2017 Accounting | Objective

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Question 1 View Details
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The balance on the profit and loss account is ₦200,000. The balance on the capital account of the partners is ₦500,000. The total amount of drawings made by the partners during the year is ₦300,000. Calculate the total amount of profit to be distributed among the partners.
A. ₦1,200,000
Correct B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: B

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Question 2 View Details
A company's balance sheet as at 31st December 2022 shows an increase in the value of its assets of ₦500,000. The company's profit for the year ended 31st December 2022 is ₦1,500,000. The company's capital account shows a balance of ₦500,000. Calculate the company's retained earnings as at 31st December 2022.
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

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Question 3 View Details
A company's cash book shows a balance of ₦200,000. The company's bank statement shows a balance of ₦300,000. The company's cash book balance includes a bank overdraft of ₦50,000. Calculate the company's cash balance as at 31st December 2022.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 4 View Details
A company's trial balance shows a balance of ₦500,000. The company's balance sheet as at 31st December 2022 shows an increase in the value of its assets of ₦500,000. The company's profit for the year ended 31st December 2022 is ₦1,500,000. Calculate the company's retained earnings as at 31st December 2022.
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

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Question 5 View Details
A company's balance sheet as at 31st December 2022 shows an increase in the value of its assets of ₦500,000. The company's profit for the year ended 31st December 2022 is ₦1,500,000. The company's capital account shows a balance of ₦500,000. Calculate the company's retained earnings as at 31st December 2022.
A. ₦1,000,000
Correct B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: B

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Question 6 View Details
A company uses the perpetual inventory system. On January 1, 2022, it had 500 units of a product in stock, valued at ₦1,500 each. During the year, 300 units were sold for ₦2,000 each. On December 31, 2022, 200 units remained in stock. If the cost of goods sold is ₦1,800 per unit, calculate the total cost of goods sold for the year.
A. ₦540,000
B. ₦600,000
Correct C. ₦720,000
D. ₦900,000

Correct Answer: C

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Question 7 View Details
A company's cash book shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | Jan 1 | Cash | 10,000 | | | Jan 10 | Sales | | 15,000 | | Jan 15 | Purchases | 8,000 | | | Jan 20 | Cash | | 12,000 | What is the balance in the cash account?
A. ₦2,000
B. ₦4,000
C. ₦6,000
Correct D. ₦8,000

Correct Answer: D

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Question 8 View Details
A company's balance sheet as of December 31, 2022, is as follows: | Asset | Amount | | --- | --- | | Cash | 10,000 | | Accounts Receivable | 20,000 | | Inventory | 30,000 | | Total Assets | 60,000 | | Liability | Amount | | --- | --- | | Accounts Payable | 15,000 | | Long-term Debt | 25,000 | | Total Liabilities | 40,000 | | Equity | Amount | | --- | --- | | Common Stock | 20,000 | | Retained Earnings | 0 | | Total Equity | 20,000 | What is the company's net income for the year?
A. ₦20,000
B. ₦30,000
C. ₦40,000
Correct D. ₦50,000

Correct Answer: D

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Question 9 View Details
A company uses the allowance method for estimating bad debts. If the company's accounts receivable balance is ₦100,000 and the estimated bad debt expense is ₦5,000, what is the allowance for bad debts?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 10 View Details
A company's manufacturing overhead is allocated to products using the following formula: Manufacturing Overhead = (Direct Labor Hours x Factory Wage Rate) + (Machine Hours x Machine Rate) If the company has 1,000 direct labor hours, a factory wage rate of ₦50 per hour, 500 machine hours, and a machine rate of ₦75 per hour, what is the total manufacturing overhead?
A. ₦62,500
B. ₦75,000
Correct C. ₦87,500
D. ₦100,000

Correct Answer: C

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Question 11 View Details
The trial balance of XYZ Ltd. shows the following balances:
A. ₦1,500,000
B. ₦1,800,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

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Question 12 View Details
A company issued 10,000 shares of ₦5 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 13 View Details
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦120,000, calculate the share of profit of partner A.
A. ₦60,000
B. ₦70,000
Correct C. ₦80,000
D. ₦90,000

Correct Answer: C

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Question 14 View Details
A company has the following balances in its trial balance:
A. ₦1,200,000
B. ₦1,500,000
Correct C. ₦1,800,000
D. ₦2,000,000

Correct Answer: C

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Question 15 View Details
A company issued 5,000 shares of ₦10 each at a premium of ₦3 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦60,000
C. ₦70,000
Correct D. ₦80,000

Correct Answer: D

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Question 16 View Details
A company's trial balance shows a credit balance of ₦50,000 in the 'Rent Received' account. However, the company's accounting records show that it has not received any rent from tenants. What is the correct treatment of this account in the final accounts?
Correct A. Treat it as a receivable and show it as an asset in the balance sheet.
B. Treat it as a prepaid expense and show it as an asset in the balance sheet.
C. Treat it as a liability and show it as a current liability in the balance sheet.
D. Treat it as a revenue and show it as a current asset in the balance sheet.

Correct Answer: A

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Question 17 View Details
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The proceeds from the issue of shares amount to ₦15,000. What is the amount of share capital?
A. ₦10,000
Correct B. ₦12,000
C. ₦15,000
D. ₦18,000

Correct Answer: B

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Question 18 View Details
A company's cash book shows a balance of ₦20,000. However, the bank statement shows a balance of ₦25,000. What is the correct treatment of the difference?
A. Treat it as a discrepancy and show it as a current liability in the balance sheet.
B. Treat it as a discrepancy and show it as a current asset in the balance sheet.
Correct C. Treat it as a bank overdraft and show it as a current liability in the balance sheet.
D. Treat it as a cash in transit and show it as a current asset in the balance sheet.

Correct Answer: C

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Question 19 View Details
A company issues 1,000 debentures of ₦100 each at a premium of ₦10 per debenture. The proceeds from the issue of debentures amount to ₦120,000. What is the amount of debenture capital?
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 20 View Details
A company's trial balance shows a debit balance of ₦50,000 in the 'Rent Paid' account. However, the company's accounting records show that it has paid rent to tenants. What is the correct treatment of this account in the final accounts?
Correct A. Treat it as a payable and show it as a current liability in the balance sheet.
B. Treat it as a prepaid expense and show it as an asset in the balance sheet.
C. Treat it as a revenue and show it as a current asset in the balance sheet.
D. Treat it as a capital expenditure and show it as a non-current asset in the balance sheet.

Correct Answer: A

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Question 21 View Details
A company's trial balance shows an error of ₦0.50 in the debit side of the accounts payable account. The correct balance is ₦1,350. If the error is corrected, what is the new balance of the accounts payable account?
Correct A. ₦1,350.50
B. ₦1,350.00
C. ₦1,349.50
D. ₦1,349.00

Correct Answer: A

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Question 22 View Details
A company's bank reconciliation statement shows a difference of ₦0.50 between the company's cash book balance and the bank statement balance. The cash book balance is ₦1,350. If the difference is corrected, what is the new bank statement balance?
A. ₦1,350.50
Correct B. ₦1,350.00
C. ₦1,349.50
D. ₦1,349.00

Correct Answer: B

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Question 23 View Details
A company's control account for accounts receivable shows a balance of ₦1,350. The trial balance shows a balance of ₦1,350.50. What is the correct balance of the accounts receivable control account?
Correct A. ₦1,350.50
B. ₦1,350.00
C. ₦1,349.50
D. ₦1,349.00

Correct Answer: A

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Question 24 View Details
A company's manufacturing account shows a balance of ₦1,350. The direct materials account shows a balance of ₦1,350.50. What is the correct balance of the direct materials account?
Correct A. ₦1,350.50
B. ₦1,350.00
C. ₦1,349.50
D. ₦1,349.00

Correct Answer: A

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Question 25 View Details
A company's trading account shows a profit of ₦1,350. The profit and loss account shows a profit of ₦1,350.50. What is the correct balance of the profit and loss account?
Correct A. ₦1,350.50
B. ₦1,350.00
C. ₦1,349.50
D. ₦1,349.00

Correct Answer: A

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