Practice post utme delsu accounting 2021 Past Questions

Question 1

A company uses the straight-line method of depreciation for its assets. If the asset's original cost is ₦120,000, its residual value is ₦20,000, and it is used for 5 years, what is the annual depreciation charge?

A. ₦20,000

Correct B. ₦24,000

C. ₦28,000

D. ₦32,000

Correct Answer: B

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Question 2

A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. What is the total amount of assets?

A. ₦750,000

B. ₦850,000

C. ₦950,000

Correct D. ₦1,050,000

Correct Answer: D

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Question 3

A company uses the weighted average method to value its inventory. The following data is available: Beginning Inventory ₦100,000, Purchases ₦200,000, and Cost of Goods Sold ₦150,000. What is the total value of inventory?

A. ₦250,000

B. ₦300,000

C. ₦350,000

Correct D. ₦400,000

Correct Answer: D

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Question 4

A company's income statement for the year ended December 31, 2020, shows the following: Revenue ₦1,000,000, Cost of Goods Sold ₦600,000, Gross Profit ₦400,000, Operating Expenses ₦150,000, and Net Income ₦250,000. What is the company's gross profit margin?

A. 40%

Correct B. 50%

C. 60%

D. 70%

Correct Answer: B

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Question 5

A company's balance sheet as of December 31, 2020, shows the following: Cash ₦150,000, Accounts Receivable ₦200,000, Inventory ₦300,000, Total Assets ₦750,000, Total Liabilities ₦300,000, and Total Equity ₦450,000. What is the company's debt-to-equity ratio?

A. 1:1

Correct B. 1:2

C. 2:1

D. 3:1

Correct Answer: B

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Question 6

A company uses the single entry system of accounting. The following transactions occurred during the year: Deposits: ₦50,000, ₦20,000, ₦15,000 Withdrawals: ₦30,000, ₦12,000 Sales: ₦80,000, ₦25,000 Cost of Goods Sold: ₦40,000, ₦18,000 Determine the net profit or loss for the year.

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 7

A partnership has two partners, A and B. The capital accounts of the partners are as follows: A: ₦100,000, ₦120,000, ₦150,000 B: ₦80,000, ₦100,000, ₦120,000 Determine the profit sharing ratio.

A. 2:1

Correct B. 3:2

C. 4:3

D. 5:4

Correct Answer: B

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Question 8

A company maintains a cash book and a general ledger. The cash book shows the following transactions: ₦10,000 received from a customer ₦5,000 paid to a supplier ₦8,000 received from a customer ₦3,000 paid to a supplier Determine the bank reconciliation statement.

A. ₦10,000

B. ₦15,000

Correct C. ₦20,000

D. ₦25,000

Correct Answer: C

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Question 9

A company uses the control account system of accounting. The following transactions occurred during the year: ₦50,000 received from a customer ₦30,000 paid to a supplier ₦20,000 received from a customer ₦15,000 paid to a supplier Determine the balance in the control account.

A. ₦10,000

B. ₦20,000

Correct C. ₦30,000

D. ₦40,000

Correct Answer: C

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Question 10

A company uses the self-balancing ledger system of accounting. The following transactions occurred during the year: ₦50,000 received from a customer ₦30,000 paid to a supplier ₦20,000 received from a customer ₦15,000 paid to a supplier Determine the balance in the self-balancing ledger.

A. ₦10,000

B. ₦20,000

C. ₦30,000

Correct D. ₦40,000

Correct Answer: D

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Question 11

A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.

Correct A. ₦250,000

B. ₦500,000

C. ₦750,000

D. ₦1,000,000

Correct Answer: A

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Question 12

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 | ₦200 | | | 4th Jan | Bank | | ₦300 | Prepare the bank reconciliation statement as at 31st Dec.

A. ₦1,500

Correct B. ₦2,000

C. ₦2,500

D. ₦3,000

Correct Answer: B

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Question 13

A company's trial balance as at 31st Dec is as follows: | Account | Debit | Credit | | --- | --- | --- | | Sales | ₦100,000 | | | Purchases | | ₦80,000 | | Wages | ₦20,000 | | | Rent | | ₦10,000 | | Capital | ₦50,000 | | | Drawings | | ₦30,000 | Identify the error in the trial balance.

A. Sales and Purchases

B. Wages and Rent

Correct C. Capital and Drawings

D. Sales and Wages

Correct Answer: C

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Question 14

A company maintains a control account for its debtors. The control account shows a balance of ₦50,000. The ledger account for debtors shows the following: | Account | Debit | Credit | | --- | --- | --- | | Debtors | ₦30,000 | | | Bad Debts | | ₦20,000 | Determine the amount of debtors that have not been collected.

A. ₦10,000

Correct B. ₦20,000

C. ₦30,000

D. ₦40,000

Correct Answer: B

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Question 15

A company's trading account for the year ended 31st Dec is as follows: | Particulars | ₦ | ₦ | | --- | --- | --- | | Sales | 200,000 | | | Purchases | | 150,000 | | Wages | 20,000 | | | Rent | | 10,000 | Determine the gross profit for the year.

A. ₦30,000

B. ₦40,000

Correct C. ₦50,000

D. ₦60,000

Correct Answer: C

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Question 16

A company issued 10,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. The company pays annual interest of 5% on the face value of the debentures. Calculate the amount of interest paid annually.

A. ₦100,000

Correct B. ₦110,000

C. ₦120,000

D. ₦130,000

Correct Answer: B

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Question 17

A company's trial balance as at 31st December, 2020, showed the following balances: Accounts Payable ₦120,000, Accounts Receivable ₦150,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦300,000, Interest Expense ₦15,000, Interest Income ₦10,000, Net Income ₦100,000, Retained Earnings ₦200,000, Salaries Expense ₦50,000, Sales Revenue ₦600,000, Taxes Payable ₦25,000, Utilities Expense ₦20,000. Prepare the company's balance sheet as at 31st December, 2020.

A. ₦1,050,000

Correct B. ₦1,100,000

C. ₦1,150,000

D. ₦1,200,000

Correct Answer: B

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Question 18

A company has the following transactions: 1) Purchased office supplies for ₦10,000 cash. 2) Sold office supplies for ₦5,000 cash. 3) Purchased office equipment for ₦50,000 cash. 4) Sold office equipment for ₦20,000 cash. 5) Purchased office furniture for ₦30,000 cash. 6) Sold office furniture for ₦15,000 cash. Prepare the company's cash book.

A. ₦50,000

Correct B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: B

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Question 19

A company issued 10,000, 10% shares of ₦10 each at a premium of 20%. The company pays annual dividend of 5% on the face value of the shares. Calculate the amount of dividend paid annually.

A. ₦50,000

Correct B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: B

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Question 20

A company's bank reconciliation statement as at 31st December, 2020, showed the following balances: Bank Balance ₦500,000, Cash in Bank ₦200,000, Outstanding Cheques ₦50,000, Deposits in Transit ₦30,000. Prepare the company's bank reconciliation statement.

A. ₦680,000

Correct B. ₦700,000

C. ₦720,000

D. ₦740,000

Correct Answer: B

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Question 21

A company's trial balance shows a discrepancy of ₦1,500 between the debit and credit sides. The company's accountant has identified the following errors: (i) an incorrect posting of a debit of ₦2,000 to the wrong account, (ii) an incorrect posting of a credit of ₦1,500 to the wrong account, and (iii) an incorrect posting of a debit of ₦500 to the wrong account. What is the correct amount of the discrepancy?

A. ₦1,000

Correct B. ₦1,500

C. ₦2,000

D. ₦2,500

Correct Answer: B

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Question 22

A company's cash book shows a balance of ₦15,000. The company's bank statement shows a balance of ₦18,000. The bank reconciliation statement shows a difference of ₦3,000 between the cash book balance and the bank statement balance. What is the reason for the difference?

A. The cash book balance is incorrect.

B. The bank statement balance is incorrect.

Correct C. There is a difference between the cash book balance and the bank statement balance.

D. The bank reconciliation statement is incorrect.

Correct Answer: C

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Question 23

A company has two partners, A and B. The company's capital account shows a balance of ₦20,000. Partner A's capital account shows a balance of ₦10,000, and Partner B's capital account shows a balance of ₦5,000. What is the ratio of Partner A's capital to Partner B's capital?

A. 1:1

Correct B. 2:1

C. 3:1

D. 4:1

Correct Answer: B

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Question 24

A company's cash book shows a balance of ₦10,000. The company's bank statement shows a balance of ₦12,000. The bank reconciliation statement shows a difference of ₦2,000 between the cash book balance and the bank statement balance. What is the reason for the difference?

A. The cash book balance is incorrect.

B. The bank statement balance is incorrect.

Correct C. There is a difference between the cash book balance and the bank statement balance.

D. The bank reconciliation statement is incorrect.

Correct Answer: C

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Question 25

A company has two partners, A and B. The company's capital account shows a balance of ₦25,000. Partner A's capital account shows a balance of ₦12,000, and Partner B's capital account shows a balance of ₦8,000. What is the ratio of Partner A's capital to Partner B's capital?

A. 1:1

Correct B. 2:1

C. 3:1

D. 4:1

Correct Answer: B

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