POST UTME ELIZADE UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that profits and losses will be shared in the ratio 3:2. If the partnership makes a profit of ₦150,000, how much will A receive?
A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦200,000
Question 2
A company purchased a machine for ₦500,000. At the end of the first year, the machine's value depreciated by 20%. Calculate the machine's value at the end of the first year.
A. ₦400,000
B. ₦450,000
C. ₦400,000
D. ₦350,000
Question 3
A company's trial balance as at 31st December 2022 is as follows: Debit £ 10,000 £ 20,000 £ 30,000 £ 40,000 £ 50,000 £ 60,000 £ 70,000 £ 80,000 £ 90,000 £ 100,000 Credit £ 10,000 £ 20,000 £ 30,000 £ 40,000 £ 50,000 £ 60,000 £ 70,000 £ 80,000 £ 90,000 £ 100,000 What is the total of the debit balances?
A. £ 500,000
B. £ 600,000
C. £ 700,000
D. £ 800,000
Question 4
A company's trial balance shows the following balances: Debtors ₦50,000, Creditors ₦30,000, and Capital ₦100,000. What is the total amount of assets?
A. ₦180,000
B. ₦200,000
C. ₦220,000
D. ₦240,000
Question 5
A company's trial balance showed a credit balance of ₦50,000 in the account 'Sales Returns'. The company's accountant suspected that this was an error. What would be the correct treatment of this error?
A. Debit the Sales Returns account and credit the Sales account
B. Debit the Sales account and credit the Sales Returns account
C. Debit the Sales Returns account and credit the Sales account
D. Credit the Sales Returns account and debit the Sales account
Question 6
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit-sharing ratio is 3:2. What is the ratio of the distribution of profits?
A. 3:2
B. 2:3
C. 1:1
D. 4:3
Question 7
A company's income statement shows the following balances: Sales Revenue ₦30,000, Cost of Goods Sold ₦20,000. What is the effect of these balances on the accounting equation?
A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Increases equity and decreases liabilities
Question 8
A company's trial balance shows the following balances: Debit: ₦100,000, Credit: ₦120,000 What is the correct journal entry to correct the error?
A. Debit: ₦20,000, Credit: ₦20,000
B. Debit: ₦20,000, Credit: ₦10,000
C. Debit: ₦10,000, Credit: ₦20,000
D. Debit: ₦10,000, Credit: ₦10,000
Question 9
A company's bank reconciliation statement shows a difference of ₦5,000 between the cash book balance and the bank statement balance. What is the reason for the discrepancy?
A. The company has deposited cash into the bank but has not yet been credited.
B. The company has written a cheque but has not yet been debited.
C. The bank has charged a fee for services rendered.
D. The company has made an error in its cash book.
Question 10
A company's balance sheet shows an asset of ₦1,000,000. If the company's equity is ₦0,500,000, what is the amount of liabilities?
A. ₥0,500,000
B. ₥1,000,000
C. ₥0,500,000
D. ₥0,500,000
Question 11
A company issues 10,000 shares of ₡0 par value at a premium of ₥ per share. What is the total amount received from the issue of shares?
A. ₡00,000
B. ₡00,000
C. ₡00,000
D. ₡00,000
Question 12
A company's trial balance shows the following balances: Accounts Payable ₦20,000, Sales Revenue ₦30,000. What is the effect of these balances on the accounting equation?
A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Increases equity and decreases liabilities
Question 13
A company uses the double entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the accounting equation?
A. Increases assets and decreases liabilities
B. Decreases assets and increases liabilities
C. Increases liabilities and decreases equity
D. Decreases liabilities and increases equity
Question 14
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000. The beginning inventory is ₦300,000, and the cost of purchases is ₦1,200,000. The company uses a periodic inventory system. Calculate the cost of goods sold using the weighted average method.
A. ₦900,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,200,000
Question 15
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, how much of the amount will be credited to the share capital account?
A. ₦10,000,000
B. ₦12,000,000
C. ₦11,000,000
D. ₦9,000,000

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