POST UTME FUTA 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A partnership is formed between two individuals, A and B, who contribute ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit-sharing ratio in decimal form.
A. 0.6
B. 0.7
C. 0.8
D. 0.9
Question 2
A company has the following accounts in its ledger: Cash 10,000, Accounts Receivable 15,000, Inventory 20,000, Prepaid Rent 5,000, and Equipment 30,000. Prepare a balance sheet.
A. Cash 10,000, Accounts Receivable 15,000, Inventory 20,000, Prepaid Rent 5,000, and Equipment 30,000
B. Cash 10,000, Accounts Receivable 15,000, Inventory 20,000, Prepaid Rent 5,000, and Equipment 25,000
C. Cash 10,000, Accounts Receivable 15,000, Inventory 20,000, Prepaid Rent 5,000, and Equipment 35,000
D. Cash 10,000, Accounts Receivable 15,000, Inventory 20,000, Prepaid Rent 5,000, and Equipment 40,000
Question 3
A company has the following accounts in its ledger: Cash 10,000, Accounts Receivable 15,000, Inventory 20,000, Prepaid Rent 5,000, and Equipment 30,000. Prepare a trial balance.
A. Cash 10,000, Accounts Receivable 15,000, Inventory 20,000, Prepaid Rent 5,000, and Equipment 30,000
B. Cash 10,000, Accounts Receivable 15,000, Inventory 20,000, Prepaid Rent 5,000, and Equipment 25,000
C. Cash 10,000, Accounts Receivable 15,000, Inventory 20,000, Prepaid Rent 5,000, and Equipment 35,000
D. Cash 10,000, Accounts Receivable 15,000, Inventory 20,000, Prepaid Rent 5,000, and Equipment 40,000
Question 4
A company has the following transactions: Purchased goods for £ 10,000, Sold goods for £ 15,000, Purchased equipment for £ 5,000. Prepare the journal entries for the above transactions.
A. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Equipment £ 5,000, Credit Cash £ 5,000
B. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Equipment £ 5,000, Credit Purchases £ 5,000
C. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Equipment £ 5,000, Credit Sales £ 5,000
D. Debit Purchases £ 10,000, Credit Cash £ 10,000, Debit Sales £ 15,000, Credit Cash £ 15,000, Debit Equipment £ 5,000, Credit Purchases £ 5,000
Question 5
A company's trial balance shows an error of ₦0.50 in the debit side of the account 'Rent Received'. The error is due to the omission of a receipt of ₦0.50 from the cash book. Prepare the necessary journal entry to rectify the error.
A. Debit Rent Received ₦0.50, Credit Cash ₦0.50
B. Debit Rent Received ₦0.50, Credit Bank ₦0.50
C. Debit Rent Received ₦0.50, Credit Cash ₦0.50 and Bank ₦0.50
D. Debit Rent Received ₦0.50, Credit Bank ₦0.50 and Cash ₦0.50
Question 6
A company uses the double entry system to record its transactions. The following transactions were recorded during the year: Debit: ₦20,000 to 'Office Equipment' Credit: ₦10,000 to 'Rent' and ₦5,000 to 'Salaries' What is the total amount of the company's expenses for the year?
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 7
A company's trial balance shows an error of ₦0.50 in the debit side of the account 'Salaries Paid'. The error is due to the omission of a payment of ₦0.50 from the cash book. Prepare the necessary journal entry to rectify the error.
A. Debit Salaries Paid ₦0.50, Credit Cash ₦0.50
B. Debit Salaries Paid ₦0.50, Credit Bank ₦0.50
C. Debit Salaries Paid ₦0.50, Credit Cash ₦0.50 and Bank ₦0.50
D. Debit Salaries Paid ₦0.50, Credit Bank ₦0.50 and Cash ₦0.50
Question 8
A company's cash book shows a balance of ₦100,000. However, the bank statement shows a balance of ₦120,000. The difference of ₦20,000 is due to a dishonored cheque of ₦10,000 and an outstanding deposit of ₦10,000. What is the correct balance in the cash book?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 9
A company's balance sheet shows an increase in the value of its inventory by ₦1,500,000. The increase is due to the purchase of new goods. Prepare the necessary journal entry to record the increase in value.
A. Debit Inventory ₦1,500,000, Credit Bank ₦1,500,000
B. Debit Inventory ₦1,500,000, Credit Accumulated Depreciation ₦1,500,000
C. Debit Inventory ₦1,500,000, Credit Bank ₦1,500,000 and Accumulated Depreciation ₦1,500,000
D. Debit Bank ₦1,500,000, Credit Inventory ₦1,500,000
Question 10
The following trial balance of a company is given. Prepare the company's balance sheet and statement of profit or loss.
A. Balance Sheet
B. Statement of Profit or Loss
C. Cash Flow Statement
D. Statement of Changes in Equity
Question 11
A company's trial balance shows an error of ₦0.50 in the debit side of the account 'Rent Paid'. The error is due to the omission of a payment of ₦0.50 from the cash book. Prepare the necessary journal entry to rectify the error.
A. Debit Rent Paid ₦0.50, Credit Cash ₦0.50
B. Debit Rent Paid ₦0.50, Credit Bank ₦0.50
C. Debit Rent Paid ₦0.50, Credit Cash ₦0.50 and Bank ₦0.50
D. Debit Rent Paid ₦0.50, Credit Bank ₦0.50 and Cash ₦0.50
Question 12
A company's trading account shows a profit of ₦200,000. However, the profit and loss account shows a loss of ₦50,000. What is the correct net profit?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 13
In a partnership account, the capital of a partner who leaves the business is transferred to the remaining partners in the ratio of their current profits. If the capital of the departing partner is ₦120,000 and the current profits of the remaining partners are ₦80,000 and ₦60,000 respectively, what is the amount of capital that will be transferred to each partner?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦80,000
Question 14
A company purchases a machine for ₦120,000. The machine has a useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
A. ₦20,000
B. ₦22,000
C. ₦24,000
D. ₦26,000
Question 15
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 10,000
B. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000, Credit Issue Expenses £ 5,000
C. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 5,000
D. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000, Credit Issue Expenses £ 10,000

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