Practice post utme futo accounting 2025 Past Questions

Question 1

A public sector organization has a cash book that records all its financial transactions. The cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the most likely reason for the difference?

A. The cash book has been incorrectly balanced.

B. The bank statement has been incorrectly prepared.

C. There has been a theft of cash from the organization.

Correct D. The cash book has not been updated to reflect the latest transactions.

Correct Answer: D

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Question 2

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership has a trial balance as follows:

A. ₦23,000

Correct B. ₦25,000

C. ₦27,000

D. ₦29,000

Correct Answer: B

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Question 3

A company has the following transactions in its cash book:

A. ₦23,000

B. ₦25,000

Correct C. ₦27,000

D. ₦29,000

Correct Answer: C

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Question 4

A company has the following trial balance:

A. ₦23,000

Correct B. ₦25,000

C. ₦27,000

D. ₦29,000

Correct Answer: B

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Question 5

A company has the following bank reconciliation statement:

A. ₦23,000

B. ₦25,000

Correct C. ₦27,000

D. ₦29,000

Correct Answer: C

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Question 6

A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.

A. ₦0,500

B. ₦1,000

Correct C. ₦1,500

D. ₦2,000

Correct Answer: C

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Question 7

A partnership has two partners, A and B. The capital accounts of A and B are ₦0,000 and ₦0,500 respectively. The profit-sharing ratio is 3:2. Calculate the share of profit of A.

Correct A. ₦0,300

B. ₦0,400

C. ₦0,500

D. ₦0,600

Correct Answer: A

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Question 8

A company's trading account for the year ended 31st December 2024 is as follows: Debit: Sundry expenses ₦0,000 Depreciation ₦0,500 Credit: Sales ₦1,500 Returns outwards ₦0,200 Calculate the profit or loss for the year.

Correct A. ₦0,100

B. ₦0,200

C. ₦0,300

D. ₦0,400

Correct Answer: A

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Question 9

A company's balance sheet as at 31st December 2024 is as follows: Assets: Cash ₦0,000 Debtors ₦0,500 Stock ₦0,200 Creditors ₦0,300 Calculate the net worth of the company.

A. ₦0,700

B. ₦0,800

C. ₦0,900

Correct D. ₦1,000

Correct Answer: D

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Question 10

A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If the asset cost ₦0,000 and has a useful life of 5 years, calculate the annual depreciation.

A. ₦0,000

B. ₦0,100

Correct C. ₦0,200

D. ₦0,300

Correct Answer: C

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Question 11

A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?

A. ₦24,000

Correct B. ₦20,000

C. ₦22,000

D. ₦25,000

Correct Answer: B

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Question 12

A partnership has two partners, A and B. Partner A has a 60% interest in the profits, and Partner B has a 40% interest. If the net profit for the year is ₦240,000, how much will Partner A receive?

Correct A. ₦144,000

B. ₦120,000

C. ₦160,000

D. ₦180,000

Correct Answer: A

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Question 13

A company uses the weighted average method to value its inventory. The following information is available: Cost of goods available for sale ₦1,200,000; Net realizable value ₦1,000,000; Beginning inventory ₦300,000; Ending inventory ₦200,000. What is the cost of goods sold?

Correct A. ₦900,000

B. ₦800,000

C. ₦700,000

D. ₦600,000

Correct Answer: A

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Question 14

A company has the following transactions: Purchased office supplies on credit for ₦15,000; Paid cash for office supplies ₦10,000; Sold office supplies for ₦8,000 on credit. What is the net effect on the cash account?

Correct A. ₦3,000

B. ₦5,000

C. ₦7,000

D. ₦9,000

Correct Answer: A

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Question 15

A company has the following transactions: Purchased a machine for ₦100,000; Sold a machine for ₦120,000. What is the gain on the sale of the machine?

Correct A. ₦20,000

B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: A

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Question 16

A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, and Sales Revenue. The company's trial balance shows a debit balance of ₦10,000 in the Cash account and a credit balance of ₦20,000 in the Accounts Payable account. What is the correct journal entry to record the sale of goods worth ₦15,000 on credit to a customer?

A. Debit Cash ₦15,000, Credit Sales Revenue ₦15,000

B. Debit Accounts Payable ₦15,000, Credit Sales Revenue ₦15,000

C. Debit Cash ₦15,000, Credit Accounts Payable ₦15,000

Correct D. Debit Sales Revenue ₦15,000, Credit Accounts Payable ₦15,000

Correct Answer: D

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Question 17

A public sector organization has the following transactions: Purchase of office supplies worth ₦5,000, Payment of salaries worth ₦20,000, and Receipt of cash from customers worth ₦15,000. Prepare the journal entries for these transactions.

A. Debit Office Supplies ₦5,000, Credit Cash ₦5,000

B. Debit Salaries ₦20,000, Credit Cash ₦20,000

C. Debit Cash ₦15,000, Credit Sales ₦15,000

Correct D. Debit Office Supplies ₦5,000, Debit Salaries ₦20,000, Credit Cash ₦25,000

Correct Answer: D

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Question 18

A company uses a cash book to record its cash transactions. The cash book shows the following entries: Cash received from customers ₦10,000, Cash paid to suppliers ₦5,000, and Cash received from bank ₦20,000. What is the correct bank reconciliation statement?

A. Bank Statement Balance ₦35,000, Cash Book Balance ₦30,000

B. Bank Statement Balance ₦30,000, Cash Book Balance ₦35,000

Correct C. Bank Statement Balance ₦35,000, Cash Book Balance ₦30,000

D. Bank Statement Balance ₦30,000, Cash Book Balance ₦35,000

Correct Answer: C

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Question 19

A company's trial balance shows the following balances: Debit balance of ₦10,000 in the Cash account and a credit balance of ₦20,000 in the Accounts Payable account. What is the correct journal entry to record the sale of goods worth ₦15,000 on credit to a customer?

A. Debit Cash ₦15,000, Credit Sales Revenue ₦15,000

B. Debit Accounts Payable ₦15,000, Credit Sales Revenue ₦15,000

C. Debit Cash ₦15,000, Credit Accounts Payable ₦15,000

Correct D. Debit Sales Revenue ₦15,000, Credit Accounts Payable ₦15,000

Correct Answer: D

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Question 20

A company uses a self-balancing ledger to record its transactions. The ledger has the following accounts: Cash, Accounts Payable, and Sales Revenue. The company's trial balance shows a debit balance of ₦10,000 in the Cash account and a credit balance of ₦20,000 in the Accounts Payable account. What is the correct journal entry to record the purchase of office supplies worth ₦5,000?

Correct A. Debit Office Supplies ₦5,000, Credit Cash ₦5,000

B. Debit Cash ₦5,000, Credit Office Supplies ₦5,000

C. Debit Accounts Payable ₦5,000, Credit Office Supplies ₦5,000

D. Debit Office Supplies ₦5,000, Debit Cash ₦5,000

Correct Answer: A

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Question 21

A company's trial balance shows the following balances: Debit balance of ₦10,000 in the Cash account and a credit balance of ₦20,000 in the Accounts Payable account. What is the correct journal entry to record the payment of salaries worth ₦20,000?

Correct A. Debit Salaries ₦20,000, Credit Cash ₦20,000

B. Debit Cash ₦20,000, Credit Salaries ₦20,000

C. Debit Accounts Payable ₦20,000, Credit Salaries ₦20,000

D. Debit Salaries ₦20,000, Debit Cash ₦20,000

Correct Answer: A

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Question 22

A company uses a cash book to record its cash transactions. The cash book shows the following entries: Cash received from customers ₦10,000, Cash paid to suppliers ₦5,000, and Cash received from bank ₦20,000. What is the correct bank reconciliation statement?

A. Bank Statement Balance ₦35,000, Cash Book Balance ₦30,000

B. Bank Statement Balance ₦30,000, Cash Book Balance ₦35,000

C. Bank Statement Balance ₦35,000, Cash Book Balance ₦30,000

D. Bank Statement Balance ₦30,000, Cash Book Balance ₦35,000

Correct Answer: VIEW ANSWER

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Question 23

A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount of premium received.

Correct A. ₦3,500,000

B. ₦3,000,000

C. ₦2,500,000

D. ₦2,000,000

Correct Answer: A

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Question 24

A company's trading account shows a profit of 50,000. The company's profit and loss account shows a profit of 70,000. The company's balance sheet shows a net worth of 200,000. Calculate the company's retained earnings.

Correct A. ₦120,000

B. ₦150,000

C. ₦180,000

D. ₦200,000

Correct Answer: A

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Question 25

A government agency issued a 10-year bond with a face value of 100,000 and an annual interest rate of 8%. If the bond is sold at a discount of 5%, calculate the proceeds from the sale of the bond.

Correct A. ₦95,000

B. ₦96,000

C. ₦97,000

D. ₦98,000

Correct Answer: A

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