POST UTME ELIZADE UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME ELIZADE UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022 shows an increase in the value of its investments of ₦2,000,000. The company's retained earnings as at 31st December 2021 were ₦1,000,000. What is the company's retained earnings as at 31st December 2022?
Correct A. ₦3,500,000
B. ₦3,000,000
C. ₦2,500,000
D. ₦2,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company issued 10,000 ordinary shares of ₦10 each at a premium of ₦5 per share. If the company received a total of ₦150,000, what is the amount received for the premium?
Correct A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company's balance sheet as at 31st December 2022 shows a current asset of ₦500,000 and a non-current asset of ₦1,500,000. The company's current liability is ₦200,000 and its non-current liability is ₦800,000. What is the company's net worth?
Correct A. ₦1,000,000
B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022 shows an increase in the value of its investments of ₦2,000,000. The company's retained earnings as at 31st December 2021 were ₦1,000,000. What is the company's retained earnings as at 31st December 2022?
Correct A. ₦3,500,000
B. ₦3,000,000
C. ₦2,500,000
D. ₦2,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company issued 10,000 ordinary shares of ₦10 each at a premium of ₦5 per share. If the company received a total of ₦150,000, what is the amount received for the premium?
Correct A. ₦50,000
B. ₦40,000
C. ₦30,000
D. ₦20,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company issues 10,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at par after 5 years. Calculate the amount of interest payable annually.
A. ₦10,000
Correct B. ₦12,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A partnership is formed by two partners, A and B, who contribute ₦50,000 and ₦30,000 respectively. The profit is divided in the ratio 3:2. If the total profit is ₦60,000, calculate the share of profit of partner A.
A. ₦30,000
Correct B. ₦36,000
C. ₦42,000
D. ₦48,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company purchases a machine for ₦120,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
Correct A. ₦90,000
B. ₦96,000
C. ₦108,000
D. ₦120,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company maintains the following cash book balances: Cash in hand ₦50,000, Bank balance ₦30,000, and Cash at Bank ₦20,000. Prepare a bank reconciliation statement.
A. ₦60,000
B. ₦70,000
Correct C. ₦80,000
D. ₦90,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company purchases goods for ₦100,000 and sells them for ₦120,000. Calculate the gross profit.
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
In a manufacturing company, the following transactions occurred during the year: Purchases of raw materials: ₦1,500,000; Sales: ₦2,500,000; Wages: ₦800,000; Rent: ₦200,000; Depreciation: ₦300,000. What is the net profit for the year?
Correct A. ₦1,200,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company issued 5,000 shares of ₦10 each at a premium of ₦2 per share. The company also issued 2,000 debentures of ₦100 each. What is the total amount received from the issue of shares and debentures?
A. ₦150,000
B. ₦160,000
C. ₦170,000
Correct D. ₦180,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A partnership was formed between two individuals, A and B, who invested ₦50,000 and ₦30,000 respectively. The profit-sharing ratio was 2:1. If the total profit for the year was ₦60,000, how much did A receive?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's trial balance showed the following balances: Debtors: ₦80,000; Creditors: ₦40,000; Capital: ₦100,000; Profit: ₦20,000. What is the total amount of assets?
A. ₦140,000
B. ₦160,000
C. ₦180,000
Correct D. ₦200,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's balance sheet showed the following balances: Fixed Assets: ₦150,000; Current Assets: ₦80,000; Capital: ₦100,000; Profit: ₦20,000. What is the total amount of liabilities?
A. ₦130,000
B. ₦140,000
Correct C. ₦150,000
D. ₦160,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A partnership is formed between two individuals, A and B, who contribute ₦200,000 and ₦300,000 respectively. The partnership agreement states that the profits will be shared in the ratio 3:2. If the total profit for the year is ₦420,000, calculate the amount of profit that will be shared by A.
Correct A. ₦180,000
B. ₦240,000
C. ₦300,000
D. ₦360,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦12,000,000, calculate the amount of premium received.
A. ₦5,000,000
Correct B. ₦6,000,000
C. ₦7,000,000
D. ₦8,000,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A public sector organization has a budget of ₦1,500,000 for a project. If the organization has already spent ₦800,000, calculate the percentage of the budget that has been utilized.
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company issues 1,000 debentures of ₦1,000 each at a premium of ₦50 per debenture. If the company receives a total of ₦1,500,000, calculate the amount of premium received.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A partnership is formed between three individuals, A, B, and C, who contribute ₦200,000, ₦300,000, and ₦400,000 respectively. The partnership agreement states that the profits will be shared in the ratio 2:3:4. If the total profit for the year is ₦600,000, calculate the amount of profit that will be shared by B.
A. ₦180,000
Correct B. ₦240,000
C. ₦300,000
D. ₦360,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct journal entry to correct this error?
A. ₦15,000 debit to Rent Paid and ₦15,000 credit to Rent Received
Correct B. ₦15,000 debit to Rent Received and ₦15,000 credit to Rent Paid
C. ₦15,000 debit to Rent Paid and ₦15,000 credit to Cash
D. ₦15,000 debit to Cash and ₦15,000 credit to Rent Paid

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company purchases a machine for ₦120,000 and depreciates it using the straight-line method over a useful life of 5 years. If the machine is expected to have a residual value of ₦20,000, what is the annual depreciation charge?
A. ₦20,000
B. ₦22,000
Correct C. ₦24,000
D. ₦26,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦15,000
C. ₦20,000
Correct D. ₦25,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company's balance sheet shows a current ratio of 2:1. If the company's current assets are ₦100,000 and its current liabilities are ₦50,000, what is the company's quick ratio?
A. 1:1
Correct B. 1.5:1
C. 2:1
D. 3:1

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that the rent was actually paid to the landlord. What is the correct journal entry to correct this error?
A. ₦15,000 debit to Rent Paid and ₦15,000 credit to Rent Received
Correct B. ₦15,000 debit to Rent Received and ₦15,000 credit to Rent Paid
C. ₦15,000 debit to Rent Paid and ₦15,000 credit to Cash
D. ₦15,000 debit to Cash and ₦15,000 credit to Rent Paid

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