Practice post utme igbinedion university accounting 2025 Past Questions

Question 1

A company issued 5,000 shares of ₦1 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.

A. ₣0,250

Correct B. ₣0,500

C. ₣0,750

D. ₣0,950

Correct Answer: B

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Question 2

A business entity recorded the following transactions in its cash book: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 800 | What is the balance of the cash account?

Correct A. ₨00

B. ₩00

C. ₡000

D. ₡200

Correct Answer: A

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Question 3

A company issued 10,000 ₡0 shares at a premium of ₠.50 per share. The company also issued 5,000 ₢0 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.

A. ₡50,000

Correct B. ₡60,000

C. ₡70,000

D. ₡80,000

Correct Answer: B

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Question 4

A business entity recorded the following transactions in its bank reconciliation statement: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Bank | 1,000 | | | 2nd Jan | Cash | | 500 | | 3rd Jan | Bank | | 800 | What is the balance of the bank account?

Correct A. ₨00

B. ₩00

C. ₡000

D. ₡200

Correct Answer: A

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Question 5

A company issued 5,000 shares of ₡0 each at a premium of ₠.50 per share. The company also issued 10,000 ₢0 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.

A. ₡00,000

B. ₡10,000

Correct C. ₡20,000

D. ₡30,000

Correct Answer: C

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Question 6

A company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The cost of raw materials is ₦120,000, work-in-progress is ₦80,000, and finished goods is ₦150,000. The total value of the inventory is ₦350,000. If the company uses a cost flow assumption of FIFO, what is the value of the finished goods inventory?

A. ₦120,000

Correct B. ₦150,000

C. ₦180,000

D. ₦200,000

Correct Answer: B

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Question 7

A company has two departments: manufacturing and sales. The manufacturing department has a direct labor cost of ₦100,000 and a direct material cost of ₦150,000. The sales department has a direct labor cost of ₦80,000 and a direct material cost of ₦120,000. What is the total direct cost of the company?

A. ₦250,000

B. ₦300,000

Correct C. ₦350,000

D. ₦400,000

Correct Answer: C

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Question 8

A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦200,000 and a useful life of 5 years. What is the annual depreciation expense?

A. ₦40,000

B. ₦50,000

Correct C. ₦60,000

D. ₦70,000

Correct Answer: C

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Question 9

A company has a control account for its accounts payable. The control account has a balance of ₦150,000 and the subsidiary ledger has a balance of ₦120,000. What is the difference between the two balances?

Correct A. ₦30,000

B. ₦40,000

C. ₦50,000

D. ₦60,000

Correct Answer: A

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Question 10

A company has a self-balancing ledger for its accounts receivable. The ledger has a balance of ₦200,000 and the control account has a balance of ₦180,000. What is the difference between the two balances?

Correct A. ₦20,000

B. ₦30,000

C. ₦40,000

D. ₦50,000

Correct Answer: A

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Question 11

A company uses the double-entry system to record its transactions. The company has a debit balance of ₦150,000 in its accounts payable account and a credit balance of ₦120,000 in its accounts receivable account. What is the net effect on the company's equity?

Correct A. ₦30,000

B. ₦40,000

C. ₦50,000

D. ₦60,000

Correct Answer: A

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Question 12

A company prepares its trading account for the year. The company has a sales revenue of ₦500,000, a cost of goods sold of ₦350,000, and a gross profit of ₦150,000. What is the gross profit percentage?

A. 30%

B. 40%

Correct C. 50%

D. 60%

Correct Answer: C

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Question 13

A company prepares its balance sheet for the year. The company has a total assets of ₦500,000, a total liabilities of ₦200,000, and a total equity of ₦300,000. What is the debt-to-equity ratio?

A. 0.67

Correct B. 0.75

C. 0.83

D. 0.90

Correct Answer: B

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Question 14

A company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The cost of raw materials is ₦120,000, work-in-progress is ₦80,000, and finished goods is ₦150,000. The total value of the inventory is ₦350,000. If the company uses a cost flow assumption of FIFO, what is the value of the raw materials inventory?

A. ₦120,000

B. ₦150,000

C. ₦180,000

D. ₦200,000

Correct Answer: VIEW ANSWER

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Question 15

The following trial balance was extracted from the books of a public sector organization. Prepare the balance sheet and income statement.

A. Balance Sheet: Assets = ₦100,000, Liabilities = ₦50,000, Equity = ₦50,000; Income Statement: Revenue = ₦50,000, Expenses = ₦20,000, Net Income = ₦30,000

B. Balance Sheet: Assets = ₦50,000, Liabilities = ₦100,000, Equity = ₦-50,000; Income Statement: Revenue = ₦20,000, Expenses = ₦50,000, Net Income = ₦-30,000

Correct C. Balance Sheet: Assets = ₦100,000, Liabilities = ₦50,000, Equity = ₦50,000; Income Statement: Revenue = ₦50,000, Expenses = ₦20,000, Net Income = ₦30,000

D. Balance Sheet: Assets = ₦50,000, Liabilities = ₦100,000, Equity = ₦-50,000; Income Statement: Revenue = ₦20,000, Expenses = ₦50,000, Net Income = ₦-30,000

Correct Answer: C

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Question 16

A company has the following ledger accounts: Cash = ₦100,000, Accounts Payable = ₦50,000, Common Stock = ₦50,000. Prepare the balance sheet.

A. Assets = ₦100,000, Liabilities = ₦50,000, Equity = ₦50,000

B. Assets = ₦50,000, Liabilities = ₦100,000, Equity = ₦-50,000

Correct C. Assets = ₦100,000, Liabilities = ₦50,000, Equity = ₦50,000

D. Assets = ₦50,000, Liabilities = ₦100,000, Equity = ₦-50,000

Correct Answer: C

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Question 17

A partnership has the following capital accounts: John = ₦50,000, Mary = ₦50,000, Bob = ₦50,000. If the partnership distributes profits in the ratio 2:2:1, what is the amount each partner will receive?

A. John = ₦30,000, Mary = ₦30,000, Bob = ₦20,000

B. John = ₦20,000, Mary = ₦20,000, Bob = ₦30,000

Correct C. John = ₦30,000, Mary = ₦30,000, Bob = ₦20,000

D. John = ₦20,000, Mary = ₦20,000, Bob = ₦30,000

Correct Answer: C

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Question 18

A company has the following trial balance: Cash = ₦100,000, Accounts Payable = ₦50,000, Common Stock = ₦50,000. Prepare the balance sheet.

A. Assets = ₦100,000, Liabilities = ₦50,000, Equity = ₦50,000

B. Assets = ₦50,000, Liabilities = ₦100,000, Equity = ₦-50,000

Correct C. Assets = ₦100,000, Liabilities = ₦50,000, Equity = ₦50,000

D. Assets = ₦50,000, Liabilities = ₦100,000, Equity = ₦-50,000

Correct Answer: C

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Question 19

A partnership has the following capital accounts: John = ₦50,000, Mary = ₦50,000, Bob = ₦50,000. If the partnership distributes profits in the ratio 2:2:1, what is the amount each partner will receive?

A. John = ₦30,000, Mary = ₦30,000, Bob = ₦20,000

B. John = ₦20,000, Mary = ₦20,000, Bob = ₦30,000

Correct C. John = ₦30,000, Mary = ₦30,000, Bob = ₦20,000

D. John = ₦20,000, Mary = ₦20,000, Bob = ₦30,000

Correct Answer: C

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Question 20

A company has the following trial balance: Cash = ₦100,000, Accounts Payable = ₦50,000, Common Stock = ₦50,000. Prepare the balance sheet.

A. Assets = ₦100,000, Liabilities = ₦50,000, Equity = ₦50,000

B. Assets = ₦50,000, Liabilities = ₦100,000, Equity = ₦-50,000

Correct C. Assets = ₦100,000, Liabilities = ₦50,000, Equity = ₦50,000

D. Assets = ₦50,000, Liabilities = ₦100,000, Equity = ₦-50,000

Correct Answer: C

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Question 21

A company uses the single-entry system of accounting. The company's assets, liabilities, and equity at the beginning of the year were ₦1,500,000, ₦800,000, and ₦700,000, respectively. During the year, the company purchased equipment for ₦250,000 and sold goods for ₦300,000. The company's net income for the year was ₦150,000. Prepare the company's statement of financial position at the end of the year.

A. ₦1,750,000

Correct B. ₦1,800,000

C. ₦1,850,000

D. ₦1,900,000

Correct Answer: B

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Question 22

A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and 1 hour of indirect labor, while product B requires 3 hours of direct labor and 2 hours of indirect labor. The company worked 1,000 hours of direct labor and 500 hours of indirect labor during the month. Calculate the number of units of product A and product B produced during the month.

Correct A. 500 units of A and 200 units of B

B. 400 units of A and 300 units of B

C. 300 units of A and 400 units of B

D. 200 units of A and 500 units of B

Correct Answer: A

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Question 23

A company uses the control account method to record its sales and purchases. The company's sales account has a debit balance of ₦1,000,000 and a credit balance of ₦800,000. The company's purchases account has a debit balance of ₦900,000 and a credit balance of ₦700,000. Calculate the company's net sales and net purchases for the year.

Correct A. ₦200,000 net sales and ₦200,000 net purchases

B. ₦300,000 net sales and ₦300,000 net purchases

C. ₦400,000 net sales and ₦400,000 net purchases

D. ₦500,000 net sales and ₦500,000 net purchases

Correct Answer: A

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Question 24

A company's assets, liabilities, and equity at the beginning of the year were ₦1,500,000, ₦800,000, and ₦700,000, respectively. During the year, the company purchased equipment for ₦250,000 and sold goods for ₦300,000. The company's net income for the year was ₦150,000. Prepare the company's statement of financial position at the end of the year.

A. ₦1,750,000

Correct B. ₦1,800,000

C. ₦1,850,000

D. ₦1,900,000

Correct Answer: B

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Question 25

A company uses the single-entry system of accounting. The company's assets, liabilities, and equity at the beginning of the year were ₦1,500,000, ₦800,000, and ₦700,000, respectively. During the year, the company purchased equipment for ₦250,000 and sold goods for ₦300,000. The company's net income for the year was ₦150,000. Prepare the company's statement of financial position at the end of the year.

A. ₦1,750,000

Correct B. ₦1,800,000

C. ₦1,850,000

D. ₦1,900,000

Correct Answer: B

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