Practice post utme greenfield university accounting 2020 Past Questions

Question 1

A company has a trial balance that shows a debit balance of ₦1,500 in the account 'Rent Received' and a credit balance of ₦1,200 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?

Correct A. ₦1,500 debit to Rent Paid and ₦1,200 credit to Rent Received

B. ₦1,500 credit to Rent Paid and ₦1,200 debit to Rent Received

C. ₦1,700 debit to Rent Paid and ₦1,200 credit to Rent Received

D. ₦1,200 debit to Rent Paid and ₦1,500 credit to Rent Received

Correct Answer: A

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Question 2

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦120,000, how much will each partner receive?

Correct A. ₦54,000 and ₦36,000

B. ₦42,000 and ₦30,000

C. ₦48,000 and ₦32,000

D. ₦60,000 and ₦40,000

Correct Answer: A

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Question 3

A company has a cash book that shows a balance of ₦50,000. The bank statement shows a balance of ₦40,000. What is the correct bank reconciliation statement?

Correct A. ₦10,000 debit to Bank and ₦10,000 credit to Cash

B. ₦10,000 credit to Bank and ₦10,000 debit to Cash

C. ₦20,000 debit to Bank and ₦20,000 credit to Cash

D. ₦20,000 credit to Bank and ₦20,000 debit to Cash

Correct Answer: A

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Question 4

A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?

Correct A. ₦15,000

B. ₦10,000

C. ₦20,000

D. ₦25,000

Correct Answer: A

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Question 5

A company has a debenture of ₦100,000 at 10% interest per annum. What is the annual interest on the debenture?

A. ₦10,000

Correct B. ₦12,000

C. ₦15,000

D. ₦20,000

Correct Answer: B

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Question 6

A company issued 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.

A. ₦50,000

B. ₦100,000

C. ₦200,000

Correct D. ₦500,000

Correct Answer: D

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Question 7

A public sector organization has the following transactions: Purchase of goods ₦50,000, Salaries ₦30,000, Rent ₦20,000. Calculate the total expenditure.

Correct A. ₦100,000

B. ₦80,000

C. ₦60,000

D. ₦40,000

Correct Answer: A

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Question 8

A company has the following ledger balances: Cash ₦50,000, Debtors ₦30,000, Creditors ₦20,000. Calculate the total assets.

A. ₦80,000

Correct B. ₦100,000

C. ₦120,000

D. ₦150,000

Correct Answer: B

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Question 9

A company issued 5,000 shares of ₦10 each at a premium of ₦3. Calculate the total amount received from the issue of shares.

A. ₦50,000

B. ₦100,000

Correct C. ₦150,000

D. ₦200,000

Correct Answer: C

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Question 10

A public sector organization has the following transactions: Purchase of goods ₦40,000, Salaries ₦25,000, Rent ₦15,000. Calculate the total expenditure.

A. ₦80,000

B. ₦60,000

Correct C. ₦40,000

D. ₦20,000

Correct Answer: C

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Question 11

In a partnership account, the capital of each partner is recorded in the capital account. If the capital of A is ₦150,000 and that of B is ₦200,000, and the total capital is ₦400,000, what is the ratio of A's capital to B's capital?

Correct A. 1:2

B. 2:1

C. 1:1

D. 3:2

Correct Answer: A

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Question 12

A company uses a cash book to record its transactions. The cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to a bank overdraft of ₦10,000. What is the correct balance in the cash book?

Correct A. ₦40,000

B. ₦50,000

C. ₦60,000

D. ₦70,000

Correct Answer: A

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Question 13

A company prepares its final accounts for the year. The trading account shows a profit of ₦200,000. The profit and loss account shows a profit of ₦250,000. The balance sheet shows a total assets of ₦1,000,000 and total liabilities of ₦500,000. What is the total equity of the company?

A. ₦500,000

B. ₦750,000

C. ₦1,000,000

Correct D. ₦1,250,000

Correct Answer: D

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Question 14

A manufacturing company produces two products, A and B. Product A has a selling price of ₦100 and a variable cost of ₦60. Product B has a selling price of ₦120 and a variable cost of ₦80. If the company sells 100 units of A and 50 units of B, what is the total contribution margin?

A. ₦10,000

B. ₦12,000

C. ₦15,000

Correct D. ₦18,000

Correct Answer: D

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Question 15

A company uses a self-balancing ledger to record its transactions. The ledger shows a debit balance of ₦50,000. The company's bank statement shows a credit balance of ₦60,000. What is the correct balance in the ledger?

Correct A. ₦40,000

B. ₦50,000

C. ₦60,000

D. ₦70,000

Correct Answer: A

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Question 16

A company uses the single-entry system of accounting. The following transactions were recorded in the cash book during the year: Deposits: ₦10,000 on January 1 ₦5,000 on March 15 ₦8,000 on June 10 ₦12,000 on September 1 Withdrawals: ₦6,000 on February 20 ₦9,000 on May 15 ₦11,000 on August 10 ₦14,000 on November 1 Calculate the balance in the cash account at December 31.

A. ₦25,000

Correct B. ₦30,000

C. ₦35,000

D. ₦40,000

Correct Answer: B

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Question 17

A company has the following ledger balances at the beginning of the year: Debtors: ₦20,000 Creditors: ₦15,000 The following transactions were recorded during the year: Sales: ₦50,000 Purchases: ₦30,000 Prepare the trading and profit and loss account for the year.

A. ₦25,000

Correct B. ₦30,000

C. ₦35,000

D. ₦40,000

Correct Answer: B

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Question 18

A company has the following ledger balances at the beginning of the year: Debtors: ₦20,000 Creditors: ₦15,000 The following transactions were recorded during the year: Sales: ₦50,000 Purchases: ₦30,000 Prepare the trading and profit and loss account for the year.

A. ₦25,000

Correct B. ₦30,000

C. ₦35,000

D. ₦40,000

Correct Answer: B

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Question 19

A company has the following ledger balances at the beginning of the year: Debtors: ₦20,000 Creditors: ₦15,000 The following transactions were recorded during the year: Sales: ₦50,000 Purchases: ₦30,000 Prepare the trading and profit and loss account for the year.

A. ₦25,000

Correct B. ₦30,000

C. ₦35,000

D. ₦40,000

Correct Answer: B

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Question 20

A company has the following ledger balances at the beginning of the year: Debtors: ₦20,000 Creditors: ₦15,000 The following transactions were recorded during the year: Sales: ₦50,000 Purchases: ₦30,000 Prepare the trading and profit and loss account for the year.

A. ₦25,000

Correct B. ₦30,000

C. ₦35,000

D. ₦40,000

Correct Answer: B

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Question 21

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. However, the company's accounting records show that it has not received any rent from its tenants. What is the most likely explanation for this discrepancy?

A. The company has incorrectly recorded the rent received as a debit.

B. The company has incorrectly recorded the rent received as a credit.

Correct C. The company has not received any rent from its tenants.

D. The company has incorrectly recorded the rent paid as a debit.

Correct Answer: C

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Question 22

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's trial balance shows a credit balance of ₦10,000 in the account 'Drawings'. What is the amount of drawings that partner A has made?

Correct A. ₦6,000

B. ₦8,000

C. ₦10,000

D. ₦12,000

Correct Answer: A

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Question 23

A company uses a cash book to record its cash transactions. The cash book shows a debit balance of ₦20,000 in the account 'Cash'. However, the company's bank statement shows a credit balance of ₦30,000. What is the most likely explanation for this discrepancy?

A. The company has incorrectly recorded the cash received as a debit.

Correct B. The company has incorrectly recorded the cash paid as a credit.

C. The company has not received any cash from its customers.

D. The company has incorrectly recorded the bank charges as a debit.

Correct Answer: B

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Question 24

A company uses the single entry system to record its transactions. The company's accounting records show that it has received ₦50,000 from its customers. However, the company's cash book shows a debit balance of ₦20,000 in the account 'Cash'. What is the most likely explanation for this discrepancy?

A. The company has incorrectly recorded the cash received as a debit.

B. The company has incorrectly recorded the cash paid as a credit.

Correct C. The company has not received any cash from its customers.

D. The company has incorrectly recorded the bank charges as a debit.

Correct Answer: C

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Question 25

A company uses the double entry system to record its transactions. The company's accounting records show that it has purchased goods worth ₦100,000. However, the company's ledger shows a debit balance of ₦50,000 in the account 'Purchases'. What is the most likely explanation for this discrepancy?

A. The company has incorrectly recorded the purchases as a debit.

Correct B. The company has incorrectly recorded the purchases as a credit.

C. The company has not purchased any goods.

D. The company has incorrectly recorded the bank charges as a debit.

Correct Answer: B

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