POST UTME IGBINEDION UNIVERSITY 2020 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 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount of discount and the amount of interest paid annually.
Correct A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: A

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Question 2
A firm's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 500 | | | 2nd Jan | Bank | | 800 | | 3rd Jan | Cash | | 200 | What is the balance of the cash book?
A. ₦300
Correct B. ₦400
C. ₦500
D. ₦600

Correct Answer: B

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Question 3
A company's share capital consists of 10,000 shares of ₦10 each. The company issues 2,000 shares at a premium of ₦5 per share. Calculate the amount of share premium.
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 4
A firm's assets are valued as follows: | Asset | Cost | Accumulated Depreciation | Net Book Value | | --- | --- | --- | --- | | Machinery | 50,000 | 10,000 | 40,000 | | Furniture | 20,000 | 5,000 | 15,000 | | Vehicles | 30,000 | 8,000 | 22,000 | Calculate the total net book value of the assets.
A. ₦77,000
B. ₦82,000
Correct C. ₦87,000
D. ₦92,000

Correct Answer: C

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Question 5
A company's profit and loss account for the year ended 31st December 2020 is as follows: | Particulars | ₦ | ₦ | | --- | --- | --- | | Sales | 500,000 | | | Cost of Goods Sold | 300,000 | | | Gross Profit | 200,000 | | | Operating Expenses | 100,000 | | | Net Profit | 100,000 | | What is the gross profit percentage?
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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Question 6
A company's trading account shows a profit of ₦1,500,000. The balance sheet shows a decrease in inventory of ₦800,000 and an increase in accounts payable of ₦300,000. What is the net effect on the company's cash position?
A. ₦1,500,000
Correct B. ₦1,200,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: B

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Question 7
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and Partner B has a 40% interest. If the partnership has a net income of ₦1,200,000, how much will Partner A receive as their share of the net income?
Correct A. ₦720,000
B. ₦600,000
C. ₦800,000
D. ₦900,000

Correct Answer: A

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Question 8
A company uses the straight-line method of depreciation for its assets. If the asset has a useful life of 5 years and a cost of ₦1,500,000, what is the annual depreciation expense?
Correct A. ₦300,000
B. ₦200,000
C. ₦250,000
D. ₦400,000

Correct Answer: A

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Question 9
A company's balance sheet shows a current ratio of 2:1. If the company has a total current assets of ₦1,500,000 and a total current liabilities of ₦750,000, what is the company's quick ratio?
Correct A. 1.5
B. 2.0
C. 1.0
D. 1.2

Correct Answer: A

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Question 10
A company's financial statements show a net income of ₦1,200,000. If the company's tax rate is 25%, what is the company's income tax expense?
Correct A. ₦300,000
B. ₦200,000
C. ₦250,000
D. ₦400,000

Correct Answer: A

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Question 11
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 20,000
Correct B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000

Correct Answer: B

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Question 12
A company's trading account for the year ended 31st December 20X9 showed a profit of ₦ 150,000. The company's profit and loss account also showed a depreciation of ₦ 20,000 on the company's assets. Prepare the company's statement of profit or loss and other comprehensive income.
A. Profit ₦ 130,000
B. Profit ₦ 140,000
Correct C. Profit ₦ 150,000
D. Profit ₦ 160,000

Correct Answer: C

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Question 13
A company issued 10,000 5% debentures of ₦ 100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦ 900,000
Correct B. ₦ 950,000
C. ₦ 1,000,000
D. ₦ 1,050,000

Correct Answer: B

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Question 14
A company's balance sheet as at 31st December 20X9 showed a total equity of ₦ 500,000. The company's profit and loss account for the year ended 31st December 20X9 showed a profit of ₦ 150,000. Prepare the company's statement of changes in equity.
A. ₦ 650,000
B. ₦ 700,000
Correct C. ₦ 750,000
D. ₦ 800,000

Correct Answer: C

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Question 15
A company's cash book showed a balance of ₦ 10,000. The company's bank statement showed a balance of ₦ 15,000. Prepare the company's bank reconciliation statement.
A. ₦ 5,000
B. ₦ 10,000
Correct C. ₦ 15,000
D. ₦ 20,000

Correct Answer: C

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Question 16
A company has two partners, A and B, who share profits in the ratio 3:2. The capital contributed by A is ₦120,000 and that by B is ₦80,000. Calculate the ratio of their capitals.
Correct A. 5:3
B. 3:2
C. 2:3
D. 4:3

Correct Answer: A

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Question 17
A public sector organization has the following transactions for the month of January: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1st | Cash received from customers | ₦100,000 | | | 5th | Cash paid to suppliers | | ₦50,000 | | 10th | Cash received from customers | ₦80,000 | | | 15th | Cash paid to employees | | ₦30,000 | | 20th | Cash received from customers | ₦120,000 | | | 25th | Cash paid to suppliers | | ₦40,000 | | 31st | Cash received from customers | ₦100,000 | | Prepare the cash book for the month of January.
Correct A. ₦390,000
B. ₦380,000
C. ₦400,000
D. ₦410,000

Correct Answer: A

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Question 18
A company has the following trial balance: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦100,000 | | | Accounts Payable | | ₦50,000 | | Sales Revenue | ₦200,000 | | | Cost of Goods Sold | | ₦150,000 | | Net Income | | ₦50,000 | Identify the error in the trial balance.
A. Sales Revenue is debited instead of credited
Correct B. Cost of Goods Sold is credited instead of debited
C. Net Income is credited instead of debited
D. Accounts Payable is debited instead of credited

Correct Answer: B

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Question 19
A company has the following bank reconciliation statement: | Date | Bank Balance | Cash Balance | Difference | | --- | --- | --- | --- | | 1st | ₦100,000 | ₦120,000 | ₦20,000 | | 5th | ₦80,000 | ₦100,000 | ₦20,000 | | 10th | ₦60,000 | ₦80,000 | ₦20,000 | What is the reason for the difference between the bank balance and the cash balance?
A. Bank interest
B. Bank charges
Correct C. Unrecorded bank deposits
D. Unrecorded bank withdrawals

Correct Answer: C

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Question 20
A company has the following journal entry: | Date | Account | Debit | Credit | | --- | --- | --- | --- | | 1st | Cash | ₦100,000 | | | 1st | Accounts Payable | | ₦50,000 | | 1st | Sales Revenue | ₦200,000 | | | 1st | Cost of Goods Sold | | ₦150,000 | What is the effect of this journal entry on the company's cash balance?
Correct A. Increases by ₦50,000
B. Decreases by ₦50,000
C. Remains the same
D. Increases by ₦100,000

Correct Answer: A

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Question 21
A company's cash book shows a debit balance of ₦12,000. The bank statement shows a credit balance of ₦15,000. The company's accounting records show that the bank has been overcharged by ₦3,000. What is the correct balance in the company's cash book?
Correct A. ₦9,000
B. ₦12,000
C. ₦15,000
D. ₦18,000

Correct Answer: A

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Question 22
A company uses the single entry system of accounting. The company's records show that the total assets at the end of the year are ₦100,000. The total liabilities are ₦50,000. What is the company's net worth?
A. ₦25,000
B. ₦50,000
Correct C. ₦75,000
D. ₦100,000

Correct Answer: C

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Question 23
A company's trading account shows a profit of ₦20,000. The company's profit and loss account shows a net profit of ₦30,000. What is the company's net worth?
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 24
A company's balance sheet shows total assets of ₦150,000 and total liabilities of ₦100,000. What is the company's net worth?
A. ₦25,000
B. ₦50,000
Correct C. ₦75,000
D. ₦100,000

Correct Answer: C

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Question 25
A company's cash book shows a debit balance of ₦10,000. The bank statement shows a credit balance of ₦12,000. What is the correct balance in the company's cash book?
Correct A. ₦2,000
B. ₦10,000
C. ₦12,000
D. ₦18,000

Correct Answer: A

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