POST UTME ELIZADE UNIVERSITY 2024 Accounting | Objective

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Question 1
A partnership is formed between two individuals, A and B, with initial capital contributions of ₦100,000 and ₦80,000 respectively. During the first year, the partnership earns a profit of ₦120,000. The profit is divided in the ratio 2:3. Calculate the amount of profit that will be distributed to each partner.
A. ₦40,000
Correct B. ₦60,000
C. ₦80,000
D. ₦100,000

Correct Answer: B

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Question 2
A company uses the perpetual inventory system. On January 1, the inventory balance is ₦50,000. On March 15, 2,000 units of goods are purchased at ₦20 per unit. On April 10, 1,500 units of goods are sold at ₦30 per unit. Calculate the cost of goods sold for the period.
A. ₦42,000
B. ₦45,000
Correct C. ₦48,000
D. ₦51,000

Correct Answer: C

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Question 3
A company's trial balance as of December 31, 2022, is as follows: Debit Cash: ₦100,000 Accounts Receivable: ₦150,000 Prepaid Rent: ₦20,000 Equipment: ₦500,000 Accumulated Depreciation: ₦50,000 Credit Accounts Payable: ₦80,000 Salaries Payable: ₦30,000 Unearned Revenue: ₦10,000 Common Stock: ₦200,000 Retained Earnings: ₦100,000 Total: ₦1,250,000 ₦1,250,000 Determine the correct classification of the following accounts: Cash, Accounts Receivable, Prepaid Rent, Equipment, Accumulated Depreciation, Accounts Payable, Salaries Payable, Unearned Revenue, Common Stock, Retained Earnings.
Correct A. Asset: ₦100,000; Liability: ₦80,000; Equity: ₦200,000
B. Asset: ₦150,000; Liability: ₦30,000; Equity: ₦100,000
C. Asset: ₦20,000; Liability: ₦80,000; Equity: ₦200,000
D. Asset: ₦500,000; Liability: ₦30,000; Equity: ₦100,000

Correct Answer: A

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Question 4
A company uses the job-order costing method. The following data are available for the current period: Direct Materials: ₦120,000 Direct Labor: ₦150,000 Manufacturing Overhead: ₦80,000 Total Cost: ₦350,000 Determine the cost of goods manufactured for the period.
Correct A. ₦350,000
B. ₦360,000
C. ₦370,000
D. ₦380,000

Correct Answer: A

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Question 5
A company's single-entry accounting system shows the following transactions for the current period: Debit Cash: ₦100,000 Accounts Receivable: ₦150,000 Prepaid Rent: ₦20,000 Equipment: ₦500,000 Accumulated Depreciation: ₦50,000 Credit Accounts Payable: ₦80,000 Salaries Payable: ₦30,000 Unearned Revenue: ₦10,000 Common Stock: ₦200,000 Retained Earnings: ₦100,000 Determine the correct classification of the following accounts: Cash, Accounts Receivable, Prepaid Rent, Equipment, Accumulated Depreciation, Accounts Payable, Salaries Payable, Unearned Revenue, Common Stock, Retained Earnings.
Correct A. Asset: ₦100,000; Liability: ₦80,000; Equity: ₦200,000
B. Asset: ₦150,000; Liability: ₦30,000; Equity: ₦100,000
C. Asset: ₦20,000; Liability: ₦80,000; Equity: ₦200,000
D. Asset: ₦500,000; Liability: ₦30,000; Equity: ₦100,000

Correct Answer: A

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Question 6
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its cost is ₦120,000, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000

Correct Answer: A

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Question 7
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 10,000 | | | 2nd Jan | Bank | | 8,000 | | 3rd Jan | Cash | | 2,000 | What is the balance in the cash account?
A. ₦8,000
Correct B. ₦10,000
C. ₦12,000
D. ₦2,000

Correct Answer: B

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Question 8
A company's trial balance shows the following accounts: | Account | Debit | Credit | | --- | --- | --- | | Sales | 100,000 | | | Purchases | | 80,000 | | Wages | 20,000 | | | Rent | | 10,000 | What is the total value of the company's assets?
A. ₦120,000
B. ₦130,000
Correct C. ₦140,000
D. ₦150,000

Correct Answer: C

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Question 9
A company's manufacturing account shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Raw Materials | 10,000 | | | 2nd Jan | Labour | | 8,000 | | 3rd Jan | Factory Overheads | | 2,000 | What is the total cost of production?
A. ₦20,000
B. ₦22,000
Correct C. ₦24,000
D. ₦26,000

Correct Answer: C

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Question 10
A company's departmental accounts show the following transactions: | Department | Sales | Cost of Goods Sold | | --- | --- | --- | | A | 100,000 | 80,000 | | B | | 90,000 | | C | 120,000 | | What is the total profit of the company?
A. ₦40,000
B. ₦50,000
Correct C. ₦60,000
D. ₦70,000

Correct Answer: C

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Question 11
A company issues 5,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦450,000
Correct B. ₦475,000
C. ₦500,000
D. ₦525,000

Correct Answer: B

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Question 12
A company's trading account for the year ended 31st December 2023 shows a profit of ₦1,500,000. The company's profit and loss account for the same period shows a profit of ₦2,000,000. The company's balance sheet as at 31st December 2023 shows a total equity of ₦3,500,000. Calculate the company's retained earnings.
A. ₦1,000,000
B. ₦1,500,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

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Question 13
A company's balance sheet as at 31st December 2023 shows a total equity of ₦3,500,000. The company's profit and loss account for the same period shows a profit of ₦2,000,000. The company's retained earnings as at 31st December 2022 were ₦1,000,000. Calculate the company's dividends paid.
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,250,000

Correct Answer: C

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Question 14
A company's balance sheet as at 31st December 2023 shows a total equity of ₦3,500,000. The company's profit and loss account for the same period shows a profit of ₦2,000,000. The company's retained earnings as at 31st December 2022 were ₦1,000,000. Calculate the company's retained earnings.
A. ₦1,000,000
B. ₦1,500,000
Correct C. ₦2,000,000
D. ₦2,500,000

Correct Answer: C

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Question 15
A company's balance sheet as at 31st December 2023 shows a total equity of ₦3,500,000. The company's profit and loss account for the same period shows a profit of ₦2,000,000. The company's retained earnings as at 31st December 2022 were ₦1,000,000. Calculate the company's total equity.
Correct A. ₦3,500,000
B. ₦4,000,000
C. ₦4,500,000
D. ₦5,000,000

Correct Answer: A

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Question 16
A company purchases a machine for ₦1,500,000 and depreciates it using the straight-line method over a period of 5 years. Calculate the annual depreciation charge.
A. ₦300,000
B. ₦250,000
Correct C. ₦200,000
D. ₦150,000

Correct Answer: C

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Question 17
A manufacturing company produces 10,000 units of a product in a month. The cost of production is ₦500 per unit. Calculate the total cost of production for the month.
Correct A. ₦5,000,000
B. ₦5,500,000
C. ₦6,000,000
D. ₦6,500,000

Correct Answer: A

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Question 18
A company has the following transactions: Purchase of goods for ₦200,000, Sales of goods for ₦300,000, and Purchase of equipment for ₦100,000. Prepare a single entry for the transactions.
A. ₦600,000
Correct B. ₦500,000
C. ₦400,000
D. ₦300,000

Correct Answer: B

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Question 19
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
Correct A. ₦150,000
B. ₦100,000
C. ₦50,000
D. ₦0

Correct Answer: A

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Question 20
A company purchases a machine for ₦500,000 and depreciates it using the reducing balance method. Calculate the depreciation for the first year if the rate of depreciation is 20%.
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 21
A company has the following transactions: Purchase of goods for ₦200,000, Sales of goods for ₦300,000, and Purchase of equipment for ₦100,000. Prepare a control account for the transactions.
A. ₦600,000
Correct B. ₦500,000
C. ₦400,000
D. ₦300,000

Correct Answer: B

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Question 22
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
Correct A. ₦150,000
B. ₦100,000
C. ₦50,000
D. ₦0

Correct Answer: A

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Question 23
A company purchases a machine for ₦500,000 and depreciates it using the reducing balance method. Calculate the depreciation for the first year if the rate of depreciation is 20%.
Correct A. ₦100,000
B. ₦80,000
C. ₦60,000
D. ₦40,000

Correct Answer: A

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Question 24
A company has the following transactions: Purchase of goods for ₦200,000, Sales of goods for ₦300,000, and Purchase of equipment for ₦100,000. Prepare a single entry for the transactions.
A. ₦600,000
Correct B. ₦500,000
C. ₦400,000
D. ₦300,000

Correct Answer: B

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Question 25
A company has two departments: Manufacturing and Sales. The Manufacturing department has a balance of ₦1,500,000 in its control account, while the Sales department has a balance of ₦800,000 in its control account. If the company's total assets are ₦5,000,000, what is the balance in the Manufacturing department's control account after the company's final accounts have been prepared?
A. ₦1,200,000
Correct B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: B

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