POST UTME DELSU 2017 Accounting | Objective

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Question 1
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?
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.
Question 2
A company's trial balance shows an error of £ 1,000 due to an incorrect posting of a credit entry. The correct amount of the credit entry is £ 8,000. Prepare a correction entry to rectify the error.
A. Credit Profit and Loss £ 1,000, Debit Cash £ 1,000
B. Credit Profit and Loss £ 8,000, Debit Cash £ 1,000
C. Credit Cash £ 8,000, Debit Profit and Loss £ 1,000
D. Debit Profit and Loss £ 1,000, Credit Cash £ 1,000
Question 3
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?
A. ₦1,350.50
B. ₦1,350.00
C. ₦1,349.50
D. ₦1,349.00
Question 4
A company issues 1,000 £ 1 shares at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. £ 1,000
B. £ 1,500
C. £ 2,000
D. £ 2,500
Question 5
The trial balance of XYZ Ltd. shows the following balances:
A. ₦1,500,000
B. ₦1,800,000
C. ₦2,000,000
D. ₦2,500,000
Question 6
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
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 7
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
C. ₦87,500
D. ₦100,000
Question 8
A company's assets are valued as follows: Buildings £ 100,000, Machinery £ 50,000, and Vehicles £ 20,000. Calculate the total value of the company's assets.
A. £ 170,000
B. £ 180,000
C. £ 190,000
D. £ 200,000
Question 9
A company's trial balance as at 31st December 2017 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | 50,000 | | | Bank | | 100,000 | | Accounts Payable | | 200,000 | | Sales | | 300,000 | | Cost of Goods Sold | | 400,000 | | Net Income | | 500,000 | | Retained Earnings | | 600,000 | | Common Stock | | 700,000 | | Dividends | | 800,000 | What is the total amount of assets on the balance sheet as at 31st December 2017?
A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000
Question 10
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.
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.
Question 11
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
C. ₦120,000
D. ₦130,000
Question 12
A company's trial balance shows an error of £ 1,000 due to an incorrect posting of a debit entry. The correct amount of the debit entry is £ 8,000. Prepare a correction entry to rectify the error.
A. Debit Cash £ 1,000, Credit Profit and Loss £ 1,000
B. Debit Profit and Loss £ 1,000, Credit Cash £ 1,000
C. Debit Profit and Loss £ 8,000, Credit Cash £ 1,000
D. Debit Cash £ 8,000, Credit Profit and Loss £ 1,000
Question 13
A company has a departmental account for the year ended December 31, 2022. The departmental account shows a profit of ₦150,000. If the company's total profit for the year is ₦500,000, calculate the percentage of profit attributable to the department.
A. 30%
B. 40%
C. 50%
D. 60%
Question 14
A company's profit and loss account shows a profit of £ 50,000. The company's balance sheet shows a capital of £ 100,000. Calculate the company's retained earnings.
A. £ 50,000
B. £ 60,000
C. £ 70,000
D. £ 80,000
Question 15
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?
A. ₦1,350.50
B. ₦1,350.00
C. ₦1,349.50
D. ₦1,349.00

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