POST UTME IGBINEDION UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME IGBINEDION UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the single entry system of accounting. The following transactions occurred during the year: Depreciation on machinery: ₦15,000 Depreciation on building: ₦20,000 Salaries paid: ₦120,000 Rent paid: ₦30,000 Purchase of office equipment: ₦25,000 What is the total amount of expenses recorded in the single entry system?
A. ₦190,000
Correct B. ₦210,000
C. ₦230,000
D. ₦250,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company has the following balance sheet as at 31st December, 2016: Assets: ₦50,000 cash ₦30,000 debtors ₦20,000 creditors ₦10,000 machinery Liabilities: ₦20,000 capital ₦10,000 drawings What is the net worth of the company?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company has the following trading account for the year ended 31st December, 2016: Sales: ₦150,000 Returns outwards: ₦10,000 Returns inwards: ₦5,000 Cost of goods sold: ₦80,000 What is the gross profit for the year?
A. ₦60,000
B. ₦70,000
Correct C. ₦80,000
D. ₦90,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company has the following balance sheet as at 31st December, 2016: Assets: ₦50,000 cash ₦30,000 debtors ₦20,000 creditors ₦10,000 machinery Liabilities: ₦20,000 capital ₦10,000 drawings What is the net worth of the company?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company has the following trading account for the year ended 31st December, 2016: Sales: ₦150,000 Returns outwards: ₦10,000 Returns inwards: ₦5,000 Cost of goods sold: ₦80,000 What is the gross profit for the year?
A. ₦60,000
B. ₦70,000
Correct C. ₦80,000
D. ₦90,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company issues 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The company also issues 5,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 120,000
Correct B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A public sector organization has the following transactions for the month of January: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 10,000 | | | 2 | Bank | | 10,000 | | 3 | Office Equipment | 8,000 | | | 4 | Office Equipment | | 8,000 | | 5 | Salaries | 20,000 | | | 6 | Salaries | | 20,000 | | 7 | Rent | 15,000 | | | 8 | Rent | | 15,000 | | 9 | Miscellaneous | 5,000 | | | 10 | Miscellaneous | | 5,000 | What is the total amount of cash received and paid during the month?
A. ₦ 53,000
B. ₦ 58,000
Correct C. ₦ 63,000
D. ₦ 68,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company's balance sheet as at 31st December 2016 is as follows: | Assets | ₦ | Liabilities | ₦ | Capital | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | Share Capital | 50,000 | | Office Equipment | 30,000 | Creditors | 15,000 | Profit | 20,000 | | Investments | 40,000 | | | | | | | | | | | If the company issues 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share, and also issues 5,000 ₦ 100 debentures at 5% interest, what will be the new balance sheet?
A. ₦ 120,000
Correct B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's cash book shows the following transactions for the month of January: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 10,000 | | | 2 | Bank | | 10,000 | | 3 | Office Equipment | 8,000 | | | 4 | Office Equipment | | 8,000 | | 5 | Salaries | 20,000 | | | 6 | Salaries | | 20,000 | | 7 | Rent | 15,000 | | | 8 | Rent | | 15,000 | | 9 | Miscellaneous | 5,000 | | | 10 | Miscellaneous | | 5,000 | What is the total amount of cash received and paid during the month?
A. ₦ 53,000
B. ₦ 58,000
Correct C. ₦ 63,000
D. ₦ 68,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's balance sheet as at 31st December 2016 is as follows: | Assets | ₦ | Liabilities | ₦ | Capital | ₦ | | --- | --- | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | Share Capital | 50,000 | | Office Equipment | 30,000 | Creditors | 15,000 | Profit | 20,000 | | Investments | 40,000 | | | | | | | | | | | If the company issues 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share, and also issues 5,000 ₦ 100 debentures at 5% interest, what will be the new balance sheet?
A. ₦ 120,000
Correct B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 0.50 per share. The issue expenses were ₦ 5,000. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 5,000, Credit Issue Expenses ₦ 5,000
B. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 10,000
C. Debit Share Capital ₦ 10,000, Credit Issue Expenses ₦ 5,000
Correct D. Debit Share Capital ₦ 10,000, Credit Share Premium ₦ 5,000, Credit Issue Expenses ₦ 5,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company purchased a machine for ₦ 50,000. The machine is expected to have a useful life of 5 years and a residual value of ₦ 5,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦ 9,500
B. ₦ 10,000
C. ₦ 9,000
D. ₦ 8,500

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's cash book shows the following transactions: Date | Particulars | Debit | Credit 01/01 | Cash | 1,000 | Bank 02/01 | Bank | 500 | Cash 03/01 | Cash | 200 | Purchases 04/01 | Purchases | 300 | Cash Prepare the bank reconciliation statement.
Correct A. Bank Balance ₦ 1,500, Cash Balance ₦ 1,200
B. Bank Balance ₦ 1,200, Cash Balance ₦ 1,500
C. Bank Balance ₦ 1,000, Cash Balance ₦ 1,300
D. Bank Balance ₦ 1,300, Cash Balance ₦ 1,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's trial balance shows the following balances: Debit | Credit ₦ 10,000 | ₦ 12,000 ₦ 8,000 | ₦ 6,000 ₦ 4,000 | ₦ 2,000 Identify the error and explain the necessary correction.
Correct A. The error is a discrepancy between the debit and credit balances. The necessary correction is to adjust the trial balance to reflect the correct balances.
B. The error is a discrepancy between the debit and credit balances. The necessary correction is to adjust the trial balance to reflect the correct balances and to restate the financial statements.
C. The error is a discrepancy between the debit and credit balances. The necessary correction is to adjust the trial balance to reflect the correct balances and to restate the financial statements, and to investigate the cause of the error.
D. The error is a discrepancy between the debit and credit balances. The necessary correction is to adjust the trial balance to reflect the correct balances and to restate the financial statements, and to investigate the cause of the error, and to take disciplinary action against the person responsible for the error.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's cash book shows the following transactions: Date | Particulars | Debit | Credit 01/01 | Cash | 1,000 | Bank 02/01 | Bank | 500 | Cash 03/01 | Cash | 200 | Purchases 04/01 | Purchases | 300 | Cash Prepare the bank reconciliation statement.
Correct A. Bank Balance ₦ 1,500, Cash Balance ₦ 1,200
B. Bank Balance ₦ 1,200, Cash Balance ₦ 1,500
C. Bank Balance ₦ 1,000, Cash Balance ₦ 1,300
D. Bank Balance ₦ 1,300, Cash Balance ₦ 1,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦950,000
B. ₦1,000,000
Correct C. ₦1,050,000
D. ₦1,100,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A partnership of three persons has a capital of ₦500,000. Their profit-sharing ratio is 2:3:5. If the profit for the year is ₦150,000, calculate the share of each partner.
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company purchases a machine for ₦200,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦120,000
B. ₦140,000
Correct C. ₦160,000
D. ₦180,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company issues 5,000, 12% debentures of ₦50 each at a premium of 10%. Calculate the amount received from debenture holders.
A. ₦250,000
B. ₦275,000
Correct C. ₦300,000
D. ₦325,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company purchases a building for ₦1,000,000 and depreciates it by 5% per annum. Calculate the book value of the building after 2 years.
A. ₦950,000
B. ₦960,000
Correct C. ₦970,000
D. ₦980,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
In a partnership account, what is the correct order of preparation of the financial statements?
Correct A. Trading and Profit and Loss Account, then Balance Sheet
B. Balance Sheet, then Trading and Profit and Loss Account
C. Trading and Profit and Loss Account, then Income Statement
D. Balance Sheet, then Income Statement

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
What is the main difference between a manufacturing account and a departmental account?
Correct A. Manufacturing account is prepared for the entire factory, while departmental account is prepared for a specific department
B. Manufacturing account is prepared for a specific department, while departmental account is prepared for the entire factory
C. Manufacturing account is prepared for the entire factory, while departmental account is prepared for a specific product
D. Manufacturing account is prepared for a specific product, while departmental account is prepared for the entire factory

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
What is the purpose of a cash book?
Correct A. To record all cash transactions of the business
B. To record all credit transactions of the business
C. To record all sales and purchases of the business
D. To record all expenses and revenues of the business

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
What is the main principle of the double entry system?
Correct A. Every transaction affects at least two accounts
B. Every transaction affects only one account
C. Every transaction affects all accounts
D. Every transaction affects no accounts

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
What is the purpose of a ledger?
Correct A. To record all transactions of the business
B. To record all cash transactions of the business
C. To record all credit transactions of the business
D. To record all sales and purchases of the business

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support