Practice post utme futo accounting 2023 Past Questions

Question 1

A company uses the single entry system of accounting. The following transactions occurred during the year: Depreciation on machinery: ₦12,000 Purchase of office equipment: ₦8,000 Salaries paid: ₦120,000 Rent paid: ₦60,000 What is the total amount of expenses recorded in the single entry system?

Correct A. ₦180,000

B. ₦200,000

C. ₦220,000

D. ₦240,000

Correct Answer: A

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Question 2

A company has the following assets: Land: ₦1,500,000 Building: ₦3,000,000 Machinery: ₦2,000,000 What is the total value of the company's assets?

Correct A. ₦6,500,000

B. ₦6,500,000

C. ₦6,500,000

D. ₦6,500,000

Correct Answer: A

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Question 3

A company has the following liabilities: Borrowings: ₦1,000,000 Loans: ₦500,000 What is the total amount of the company's liabilities?

Correct A. ₦1,500,000

B. ₦1,500,000

C. ₦1,500,000

D. ₦1,500,000

Correct Answer: A

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Question 4

A company has the following equity: Share capital: ₦2,000,000 Reserves: ₦1,000,000 What is the total amount of the company's equity?

Correct A. ₦3,000,000

B. ₦3,000,000

C. ₦3,000,000

D. ₦3,000,000

Correct Answer: A

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Question 5

A company has the following transactions: Purchase of land: ₦1,500,000 Purchase of building: ₦3,000,000 What is the total amount of the company's assets after these transactions?

A. ₦4,500,000

B. ₦5,000,000

C. ₦5,500,000

Correct D. ₦6,000,000

Correct Answer: D

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Question 6

A company uses the single entry system of accounting. The company's assets increased by ₦150,000 and its liabilities increased by ₦75,000. What is the net increase in the company's equity?

A. ₦75,000

B. ₦150,000

Correct C. ₦225,000

D. ₦300,000

Correct Answer: C

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Question 7

A company's manufacturing account for the year ended December 31, 2022, showed the following: Cost of goods manufactured: ₦1,500,000; Work-in-progress at the beginning of the year: ₦200,000; Work-in-progress at the end of the year: ₦300,000. What is the value of finished goods at the end of the year?

A. ₦1,200,000

B. ₦1,500,000

Correct C. ₦1,800,000

D. ₦2,000,000

Correct Answer: C

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Question 8

A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000 and its residual value is ₦50,000. The machine is expected to last for 5 years. What is the annual depreciation charge?

A. ₦80,000

B. ₦90,000

Correct C. ₦100,000

D. ₦110,000

Correct Answer: C

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Question 9

A company's balance sheet as at December 31, 2022, showed the following: ₦1,500,000 in cash, ₦800,000 in accounts receivable, ₦300,000 in inventory, and ₦200,000 in prepaid expenses. What is the total amount of current assets?

A. ₦2,800,000

B. ₦3,000,000

Correct C. ₦3,200,000

D. ₦3,500,000

Correct Answer: C

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Question 10

A company's income statement for the year ended December 31, 2022, showed the following: Sales: ₦2,000,000; Cost of goods sold: ₦1,200,000; Gross profit: ₦800,000; Operating expenses: ₦200,000; Net income: ₦600,000. What is the gross profit margin?

A. 40%

B. 50%

Correct C. 60%

D. 70%

Correct Answer: C

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Question 11

A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit of ₦20,000 for a dishonored cheque. The cash book shows a debit of ₦15,000 for a bank charge. What is the correct adjustment to be made to the cash book balance?

A. ₦5,000

B. ₦10,000

Correct C. ₦15,000

D. ₦20,000

Correct Answer: C

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Question 12

A partnership has two partners, A and B. The capital accounts of A and B are ₦80,000 and ₦60,000 respectively. The profit-sharing ratio is 3:2. What is the share of profit of A?

A. ₦36,000

B. ₦40,000

Correct C. ₦48,000

D. ₦52,000

Correct Answer: C

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Question 13

A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. The total amount received from the issue of shares is ₦250,000. What is the amount received from the issue of shares at a premium?

A. ₦150,000

B. ₦175,000

Correct C. ₦200,000

D. ₦225,000

Correct Answer: C

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Question 14

A company has a trading profit of ₦150,000 and a non-trading income of ₦20,000. The company's tax rate is 30%. What is the amount of corporation tax payable?

A. ₦30,000

B. ₦40,000

Correct C. ₦50,000

D. ₦60,000

Correct Answer: C

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Question 15

A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. The bank statement shows a credit of ₦20,000 for a dishonored cheque. The cash book shows a debit of ₦15,000 for a bank charge. What is the correct adjustment to be made to the bank statement balance?

A. ₦5,000

B. ₦10,000

C. ₦15,000

Correct D. ₦20,000

Correct Answer: D

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Question 16

A company issued 10,000 shares of ₠ 1 each at a premium of ₠ 2 per share. The issue expenses were ₠ 20,000. Prepare the journal entry for the issue of shares.

Correct A. Debit Share Capital ₠ 120,000, Credit Cash ₠ 100,000, Credit Issue Expenses ₠ 20,000

B. Debit Share Capital ₠ 100,000, Credit Cash ₠ 120,000, Credit Issue Expenses ₠ 20,000

C. Debit Share Capital ₠ 120,000, Credit Cash ₠ 100,000

D. Debit Share Capital ₠ 100,000, Credit Cash ₠ 120,000

Correct Answer: A

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Question 17

A company issued 5,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.

A. ₦250,000

Correct B. ₦275,000

C. ₦300,000

D. ₦325,000

Correct Answer: B

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Question 18

A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. If the profit-sharing ratio is 3:2, calculate the profit to be distributed to each partner.

Correct A. ₦25,000

B. ₦30,000

C. ₦35,000

D. ₦40,000

Correct Answer: A

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Question 19

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000. Prepare the company's Trading and Profit and Loss Account for the year.

Correct A. Trading Account: ₦50,000; Profit and Loss Account: ₦50,000

B. Trading Account: ₦50,000; Profit and Loss Account: ₦100,000

C. Trading Account: ₦100,000; Profit and Loss Account: ₦50,000

D. Trading Account: ₦100,000; Profit and Loss Account: ₦100,000

Correct Answer: A

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Question 20

A company issued 10,000 debentures of ₦100 each at a premium of ₦20 per debenture. Calculate the total amount received from the issue of debentures.

A. ₦2,000,000

Correct B. ₦2,100,000

C. ₦2,200,000

D. ₦2,300,000

Correct Answer: B

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Question 21

A company's Balance Sheet shows the following balances: Share Capital ₦500,000, Retained Earnings ₦200,000, Accounts Payable ₦50,000. Prepare the company's Balance Sheet.

A. ₦750,000

Correct B. ₦800,000

C. ₦850,000

D. ₦900,000

Correct Answer: B

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Question 22

A company uses the percentage of completion method to value its construction contracts. At the end of the current year, the company has completed 75% of a contract that was valued at ₦1,500,000. The total costs incurred so far are ₦1,200,000. Calculate the profit recognized for the year.

Correct A. ₦450,000

B. ₦600,000

C. ₦750,000

D. ₦900,000

Correct Answer: A

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Question 23

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's profit for the year is ₦1,800,000. Calculate the amount of profit that will be distributed to partner A.

Correct A. ₦1,200,000

B. ₦1,500,000

C. ₦1,800,000

D. ₦2,100,000

Correct Answer: A

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Question 24

A company purchases a machine for ₦1,200,000 and depreciates it using the straight-line method over a useful life of 5 years. Calculate the annual depreciation charge.

Correct A. ₦240,000

B. ₦240,000

C. ₦240,000

D. ₦240,000

Correct Answer: A

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Question 25

A company has the following trial balance: Debit: ₦1,500,000; Credit: ₦1,800,000. Prepare a corrected trial balance.

Correct A. Debit: ₦1,500,000; Credit: ₦1,500,000

B. Debit: ₦1,800,000; Credit: ₦1,800,000

C. Debit: ₦1,500,000; Credit: ₦1,800,000

D. Debit: ₦1,800,000; Credit: ₦1,500,000

Correct Answer: A

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