POST UTME IMS U 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account for the year ended December 31, 2022, is as follows: Debit: Sales £ 500,000 Cost of Goods Sold £ 300,000 Credit: Purchases £ 200,000 calculate the net profit for the year.
A. £ 150,000
B. £ 200,000
C. £ 250,000
D. £ 300,000
Question 2
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's net income is ₦150,000, how much will Partner A receive in salary?
A. ₦90,000
B. ₦60,000
C. ₦80,000
D. ₦120,000
Question 3
A company uses the double-entry system of accounting. The following transactions occurred during the year:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Payable 1,000 and Credit Cash 1,000
C. Debit Accounts Receivable 1,000 and Credit Cash 1,000
D. Debit Cash 1,000 and Credit Accounts Payable 1,000
Question 4
A company's trial balance as at 31st December, 2020 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦0 | | Bank | ₦0 | ₦20,000 | | Sales | ₦0 | ₦50,000 | | Purchases | ₦40,000 | ₦0 | | Capital | ₦0 | ₦30,000 | | Profit | ₦0 | ₦0 | | Drawings | ₦0 | ₦10,000 | | Rent | ₦0 | ₦5,000 | | Salaries | ₦0 | ₦10,000 | | Interest | ₦0 | ₦2,000 | | Dividend | ₦0 | ₦5,000 | | Discount | ₦0 | ₦1,000 | | Bad Debts | ₦0 | ₦2,000 | | Provision for Bad Debts | ₦0 | ₦1,000 | | Depreciation | ₦0 | ₦5,000 | | Provision for Depreciation | ₦0 | ₦2,000 | | Profit and Loss Account | ₦0 | ₦0 | | Balance Sheet | ₦0 | ₦0 | Determine the correct order of preparation of the final accounts.
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 Balance Sheet, then Profit and Loss Account
D. Balance Sheet, then Profit and Loss Account, then Trading and Profit and Loss Account
Question 5
A partnership has two partners, A and B. The capital of A is ₦60,000 and that of B is ₦40,000. The profit-sharing ratio is 5:3. Calculate the profit to be shared by A.
A. ₦22,500
B. ₦25,000
C. ₦27,500
D. ₦30,000
Question 6
A company has the following trial balance: Debitors ₦100,000, Creditors ₦50,000, Capital ₦200,000. What is the total amount of assets?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 7
A partnership has two partners, A and B. The capital of A is ₦50,000 and that of B is ₦30,000. The profit-sharing ratio is 3:2. Calculate the profit to be shared by A.
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 8
A partnership has two partners, A and B. The capital accounts of the partners are as follows: A:£ 100,000 B:£ 50,000 The profit for the year is £ 20,000. Calculate the distribution of the profit between the partners.
A. A: £ 12,000, B: £ 8,000
B. A: £ 10,000, B: £ 10,000
C. A: £ 8,000, B: £ 12,000
D. A: £ 15,000, B: £ 5,000
Question 9
A company has the following transactions: Purchased office supplies on account for ₦50,000, Sold merchandise on account for ₦150,000, Purchased merchandise for cash ₦200,000. What is the total amount of cash received?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 10
A company's trial balance shows the following balances: Accounts Payable ₦500,000, Accounts Receivable ₦200,000, Common Stock ₦1,000,000, Retained Earnings ₦750,000. What is the total equity?
A. ₦1,750,000
B. ₦2,250,000
C. ₦2,500,000
D. ₦3,000,000
Question 11
A company's cash book showed the following transactions: Cash received from customers ₦10,000, Cash paid to suppliers ₦8,000, and Cash received from bank ₦5,000. What is the company's net cash inflow?
A. ₦7,000
B. ₦8,000
C. ₦9,000
D. ₦10,000
Question 12
A partnership has three partners, A, B, and C. The capital of A is ₦40,000, that of B is ₦30,000, and that of C is ₦20,000. The profit-sharing ratio is 4:3:2. Calculate the profit to be shared by A.
A. ₦16,000
B. ₦18,000
C. ₦20,000
D. ₦22,000
Question 13
A company's trial balance showed an error of ₦20,000 due to an incorrect posting of a purchase. The error was discovered during the preparation of the balance sheet. Prepare the necessary journal entry to correct the error.
A. Debit Purchases and Credit Profit and Loss
B. Debit Profit and Loss and Credit Purchases
C. Debit Purchases and Credit Profit and Loss
D. Debit Profit and Loss and Credit Purchases
Question 14
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. The shares were issued at ₦1.50 each. Calculate the total amount received from the issue of shares.
A. ₦15,000
B. ₦18,000
C. ₦20,000
D. ₦22,000
Question 15
A company's balance sheet as at December 31, 2022, is as follows: Assets:£ 500,000 Liabilities:£ 200,000 Equity:£ 300,000 Calculate the current ratio.
A. 2:1
B. 3:1
C. 1:2
D. 4:1

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