POST UTME IGBINEDION UNIVERSITY 2019 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 2019 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000, 10% debentures of ₦100 each. Calculate the total amount received from debenture holders.
Correct A. ₦500,000
B. ₦450,000
C. ₦500,000
D. ₦450,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's trial balance showed an error of ₦10,000 due to an incorrect posting of a transaction. The error was discovered during the preparation of the balance sheet. What is the correct accounting treatment for this error?
Correct A. Correct the error by adjusting the trial balance.
B. Correct the error by adjusting the balance sheet.
C. Correct the error by adjusting the income statement.
D. Correct the error by adjusting the cash book.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company's bank reconciliation statement showed a difference of ₦20,000 between the company's cash book balance and the bank statement balance. The company's accountant suspected that the difference was due to a bank error. What is the correct accounting treatment for this difference?
A. Debit the bank account by ₦20,000.
Correct B. Credit the bank account by ₦20,000.
C. Debit the cash account by ₦20,000.
D. Credit the cash account by ₦20,000.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's cash book showed a balance of ₦150,000. The company's bank statement showed a balance of ₦170,000. What is the correct accounting treatment for the difference?
A. Debit the bank account by ₦20,000.
Correct B. Credit the bank account by ₦20,000.
C. Debit the cash account by ₦20,000.
D. Credit the cash account by ₦20,000.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from shareholders.
Correct A. ₦150,000
B. ₦100,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦24,000
B. ₦30,000
C. ₦36,000
D. ₦40,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company's trial balance shows the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000. What is the net income of the company?
Correct A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company has the following bank reconciliation statement: Bank Balance ₦50,000, Cash Balance ₦20,000, Outstanding Checks ₦15,000, Deposits in Transit ₦10,000. What is the correct bank balance?
Correct A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company uses the double-declining balance method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
Correct A. ₦48,000
B. ₦50,000
C. ₦52,000
D. ₦55,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's financial statements show the following balances: Accounts Receivable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000. What is the net income of the company?
Correct A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
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
Correct B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦1,500,000, calculate the share of profit of partner A.
Correct A. ₦1,350,000
B. ₦1,200,000
C. ₦900,000
D. ₦600,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦300,000
Correct B. ₦350,000
C. ₦400,000
D. ₦450,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company issues 5,000, 12% debentures of ₦100 each at a premium of 10%. Calculate the amount received from debenture holders.
A. ₦550,000
B. ₦575,000
Correct C. ₦600,000
D. ₦625,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company has two partners, A and B, who share profits in the ratio 2:3. If the total profit for the year is ₦1,200,000, calculate the share of profit of partner B.
A. ₦600,000
Correct B. ₦900,000
C. ₦1,000,000
D. ₦1,200,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company's balance sheet as at 31st December 2022 is as follows: Share Capital: ₦1,000,000; Retained Earnings: ₦500,000; Debtors: ₦200,000; Creditors: ₦150,000. Calculate the company's net worth.
Correct A. ₦1,350,000
B. ₦1,400,000
C. ₦1,450,000
D. ₦1,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦12,000
B. ₦15,000
C. ₦18,000
Correct D. ₦20,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A partnership is formed between two partners, A and B, with a capital of ₦500,000 and ₦300,000 respectively. If the profit is shared in the ratio 3:2, calculate the share of profit of partner A.
A. ₦450,000
Correct B. ₦500,000
C. ₦550,000
D. ₦600,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If the asset cost ₦100,000 and has a useful life of 5 years, calculate the annual depreciation.
Correct A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
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 ₦30,000 for a loan received from a supplier. However, the cash book does not show this transaction. What is the correct explanation for the difference between the cash book balance and the bank statement balance?
A. The company has deposited ₦30,000 into the bank but has not recorded it in the cash book.
Correct B. The company has received a loan of ₦30,000 from a supplier, but the cash book has not been updated.
C. The company has written a cheque for ₦30,000, but the bank has not yet credited the account.
D. The company has made an error in recording a transaction in the cash book.

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership has a capital of ₦200,000, and A has invested ₦120,000. What is the amount of A's share of the profit?
Correct A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company has the following trial balance: Debitors ₦50,000, Creditors ₦30,000, Capital ₦100,000, Profit and Loss Account ₦20,000. What is the correct balance of the Profit and Loss Account?
A. ₦20,000
B. ₦30,000
C. ₦40,000
Correct D. ₦50,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company uses the double entry system of accounting. The following transactions are recorded: Debit Purchase of Assets ₦50,000, Credit Purchase of Assets ₦50,000. What is the effect of this transaction on the company's assets?
A. The company's assets increase by ₦50,000.
B. The company's assets decrease by ₦50,000.
Correct C. The company's assets remain unchanged.
D. The company's assets increase by ₦100,000.

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has the following manufacturing account: Cost of Goods Sold ₦100,000, Opening Inventory ₦20,000, Closing Inventory ₦30,000. What is the value of the company's production?
A. ₦80,000
B. ₦90,000
C. ₦100,000
Correct D. ₦110,000

Correct Answer: D

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