POST UTME GREENFIELD UNIVERSITY 2023 Accounting | Objective

Are you preparing for POST UTME GREENFIELD UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2023 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company has a cash book and a bank statement. The cash book shows a balance of ₦120,000, while the bank statement shows a balance of ₦150,000. The bank statement also shows a credit of ₦30,000 for a loan received from a customer. The cash book shows a debit of ₦20,000 for a loan paid to a supplier. What is the correct explanation for the difference between the cash book balance and the bank statement balance?
A. The difference is due to the loan received from the customer.
B. The difference is due to the loan paid to the supplier.
C. The difference is due to the cash book balance being overstated.
Correct D. The difference is due to the bank statement balance being understated.

Correct Answer: D

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Question 2
A company uses the single entry system of accounting. The company's sole proprietor, John, has a capital account of ₦100,000. During the year, John withdrew ₦20,000 from the business for personal use. What is the correct journal entry to record John's withdrawal?
A. Debit Capital Account ₦20,000, Credit Drawings ₦20,000
Correct B. Debit Drawings ₦20,000, Credit Capital Account ₦20,000
C. Debit Capital Account ₦20,000, Credit Cash ₦20,000
D. Debit Cash ₦20,000, Credit Capital Account ₦20,000

Correct Answer: B

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Question 3
A company has a control account for its accounts payable. The control account shows a balance of ₦50,000. The company's ledger accounts show the following balances: Accounts Payable ₦60,000, Purchases ₦80,000, and Discounts Allowed ₦10,000. What is the correct explanation for the difference between the control account balance and the ledger account balances?
Correct A. The difference is due to the control account balance being understated.
B. The difference is due to the ledger account balances being overstated.
C. The difference is due to the control account balance being overstated.
D. The difference is due to the ledger account balances being understated.

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. The company receives a total of ₦15,000 from the sale of shares. What is the correct journal entry to record the issue of shares?
Correct A. Debit Share Capital ₦15,000, Credit Cash ₦15,000
B. Debit Share Premium ₦5,000, Credit Share Capital ₦10,000
C. Debit Cash ₦15,000, Credit Share Capital ₦10,000
D. Debit Share Premium ₦5,000, Credit Cash ₦5,000

Correct Answer: A

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Question 5
A government agency has a budget of ₦100,000 for the year. The agency has the following expenses: Salaries ₦30,000, Rent ₦20,000, and Travel ₦10,000. What is the correct journal entry to record the agency's expenses?
A. Debit Salaries ₦30,000, Rent ₦20,000, Travel ₦10,000, Credit Budget ₦60,000
Correct B. Debit Budget ₦100,000, Credit Salaries ₦30,000, Rent ₦20,000, Travel ₦10,000
C. Debit Salaries ₦30,000, Rent ₦20,000, Travel ₦10,000, Credit Budget ₦40,000
D. Debit Budget ₦100,000, Credit Salaries ₦30,000, Rent ₦20,000, Travel ₦10,000

Correct Answer: B

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Question 6
A company's trial balance shows a debit balance of ₦12,000 in the 'Rent Expense' account. However, the company's accounting records indicate that the rent expense for the year was ₦15,000. What is the correct journal entry to record the adjustment?
A. Debit Rent Expense ₦3,000, Credit Cash ₦3,000
Correct B. Debit Rent Expense ₦3,000, Credit Rent Payable ₦3,000
C. Debit Rent Expense ₦3,000, Credit Rent Expense ₦3,000
D. Debit Rent Expense ₦3,000, Credit Cash ₦15,000

Correct Answer: B

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Question 7
A company purchases a machine for ₦120,000 and depreciates it using the straight-line method over a useful life of 5 years. If the machine is sold for ₦60,000 after 3 years, what is the gain or loss on sale?
Correct A. ₦24,000 loss
B. ₦24,000 gain
C. ₦12,000 loss
D. ₦12,000 gain

Correct Answer: A

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Question 8
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦15,000 in cash, what is the amount of the premium received?
Correct A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: A

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Question 9
A company's bank statement shows a balance of ₦25,000, but the company's cash book shows a balance of ₦30,000. What is the reason for the discrepancy?
A. Bank charges
B. Interest earned
C. Deposits in transit
Correct D. Cheques issued but not yet presented

Correct Answer: D

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Question 10
A company purchases a machine for ₦150,000 and depreciates it using the straight-line method over a useful life of 5 years. If the machine is sold for ₦90,000 after 3 years, what is the gain or loss on sale?
Correct A. ₦30,000 loss
B. ₦30,000 gain
C. ₦15,000 loss
D. ₦15,000 gain

Correct Answer: A

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Question 11
A company uses the job order costing method. The following data are available for the current year: direct materials used, ₦120,000; direct labor, ₦150,000; and overhead, ₦180,000. The company has a total of 10 jobs in production. If the total cost of all jobs is ₦1,500,000, what is the total cost per job?
A. ₦120,000
B. ₦150,000
C. ₦180,000
Correct D. ₦150,000

Correct Answer: D

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Question 12
A company has the following transactions for the year: sale of goods, ₦1,000,000; purchase of goods, ₦800,000; and purchase of equipment, ₦200,000. The company uses the accrual method of accounting. What is the net income for the year?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 13
A company has the following transactions for the year: sale of goods, ₦1,000,000; purchase of goods, ₦800,000; and purchase of equipment, ₦200,000. The company uses the cash method of accounting. What is the net income for the year?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 14
A company has the following transactions for the year: sale of goods, ₦1,000,000; purchase of goods, ₦800,000; and purchase of equipment, ₦200,000. The company uses the accrual method of accounting. What is the total assets for the year?
A. ₦1,200,000
B. ₦1,400,000
Correct C. ₦1,600,000
D. ₦1,800,000

Correct Answer: C

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Question 15
A company has the following transactions for the year: sale of goods, ₦1,000,000; purchase of goods, ₦800,000; and purchase of equipment, ₦200,000. The company uses the cash method of accounting. What is the total assets for the year?
A. ₦1,200,000
B. ₦1,400,000
Correct C. ₦1,600,000
D. ₦1,800,000

Correct Answer: C

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Question 16
A company issued 5,000 shares of 10 par value at a premium of 5 per share. If the company received a total of 250,000, what is the amount of the premium received?
Correct A. ₦125,000
B. ₦250,000
C. ₦375,000
D. ₦500,000

Correct Answer: A

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Question 17
A company has the following ledger balances: Cash 100,000, Accounts Payable 50,000, Common Stock 200,000. If the company's total assets are 300,000, what is the amount of its total liabilities?
A. ₦150,000
Correct B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: B

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Question 18
A company issued 10,000 shares of 5 par value at a premium of 2 per share. If the company received a total of 60,000, what is the amount of the premium received?
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 19
A company has the following ledger balances: Cash 80,000, Accounts Payable 30,000, Common Stock 180,000. If the company's total assets are 250,000, what is the amount of its total liabilities?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 20
A company issued 8,000 shares of 10 par value at a premium of 3 per share. If the company received a total of 240,000, what is the amount of the premium received?
A. ₦24,000
B. ₦48,000
Correct C. ₦72,000
D. ₦96,000

Correct Answer: C

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Question 21
A company's capital is divided equally between two partners, A and B. If the company makes a profit of ₦1,500,000, and the profit is divided in the ratio 3:2, how much will A receive?
Correct A. ₦1,800,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000

Correct Answer: A

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Question 22
A company's assets are valued at ₦10,000,000. If the company depreciates its assets by 10% per annum, what will be the value of the assets after 5 years?
Correct A. ₦6,100,000
B. ₦7,000,000
C. ₦8,000,000
D. ₦9,000,000

Correct Answer: A

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Question 23
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦1,500,000, what is the amount received from the issue of shares?
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦1,800,000

Correct Answer: C

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Question 24
A company's profit and loss account shows a profit of ₦500,000. If the company's capital is divided equally between two partners, A and B, and the profit is divided in the ratio 3:2, how much will A receive?
Correct A. ₦450,000
B. ₦300,000
C. ₦500,000
D. ₦600,000

Correct Answer: A

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Question 25
A company's assets are valued at ₦20,000,000. If the company depreciates its assets by 15% per annum, what will be the value of the assets after 3 years?
Correct A. ₦12,300,000
B. ₦13,500,000
C. ₦14,700,000
D. ₦15,900,000

Correct Answer: A

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