POST UTME IGBINEDION UNIVERSITY 2020 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's income statement showed the following balances: Cost of Goods Sold ₦100,000, Sales Revenue ₦200,000, and Net Income ₦50,000. Prepare the company's balance sheet.
Question 2
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.
Question 3
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.
Question 4
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?
Question 5
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.
Question 6
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the amount of discount on the debentures.
Question 7
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.
Question 8
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?
Question 9
A company's bank reconciliation statement showed the following balances: Bank balance ₦100,000, Cash balance ₦50,000, and Outstanding checks ₦20,000. Prepare the company's bank reconciliation statement.
Question 10
A company uses a job costing system to account for its manufacturing activities. The company has two departments: Cutting and Assembly. The Cutting Department has a balance of ₦120,000 in its Work-in-Progress (WIP) account at the beginning of the year. During the year, the department incurs expenses of ₦150,000 and earns revenue of ₦180,000. The Assembly Department has a balance of ₦80,000 in its WIP account at the beginning of the year. During the year, the department incurs expenses of ₦100,000 and earns revenue of ₦120,000. The company's total WIP balance at the end of the year is ₦200,000. What is the balance in the Assembly Department's WIP account at the end of the year?
Question 11
A trader purchased goods on credit for ₦120,000. He sold the goods for ₦180,000. Calculate the profit made by the trader.
Question 12
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?
Question 13
A company's cash book showed the following transactions: Cash received from customers ₦100,000, Cash paid to suppliers ₦50,000, and Cash received from bank ₦20,000. Prepare the company's cash book.
Question 14
A company issued 5,000, 10% shares of ₦10 each at a premium of ₦2. Calculate the amount received from shareholders and the amount of premium on the shares.
Question 15
A company uses the double-entry system to record its transactions. The company's journal entries for the year are as follows: Debit Cash ₦100,000, Credit Accounts Payable ₦50,000; Debit Accounts Receivable ₦150,000, Credit Sales Revenue ₦200,000; Debit Equipment ₦300,000, Credit Common Stock ₦400,000. What is the net effect of these journal entries on the company's equity?
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