POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 10,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 2
A company has a trial balance as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦100,000 | | | Accounts Payable | | ₦50,000 | | Sales | | ₦200,000 | | Cost of Goods Sold | ₦150,000 | | | Net Income | | ₦50,000 | Identify the error in the trial balance.
A. Cash account has a debit balance
B. Accounts Payable account has a credit balance
C. Sales account has a credit balance
D. Cost of Goods Sold account has a debit balance
Question 3
A public sector organization has the following transactions in its cash book: Debit: ₦100,000, Credit: ₦120,000. What is the balance in the cash book?
A. ₦20,000
B. ₦10,000
C. ₦30,000
D. ₦40,000
Question 4
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. After 2 years, A withdraws ₦50,000 and B adds ₦20,000. Calculate the new capital of the partnership.
A. ₦400,000
B. ₦450,000
C. ₦500,000
D. ₦550,000
Question 5
A company's assets are valued at ₦1,500,000. The company's liabilities are ₦800,000. What is the company's equity?
A. ₦700,000
B. ₦1,000,000
C. ₦1,300,000
D. ₦1,700,000
Question 6
A company has the following transactions: Jan 1, 2022, Cash 500,000; Jan 10, 2022, Purchased goods for ₦200,000; Jan 15, 2022, Sold goods for ₦150,000. Prepare the cash book and bank reconciliation statement.
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 7
A company's trial balance as of December 31, 2022, is as follows: Debit Credit
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 8
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that profits and losses will be shared in the ratio 3:2. If the partnership earns a profit of ₦150,000, how much will A receive?
A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦200,000
Question 9
A company's balance sheet as of December 31, 2022, is as follows: Assets 100,000; Liabilities 50,000; Equity 50,000. What is the company's current ratio?
A. 2:1
B. 3:1
C. 4:1
D. 5:1
Question 10
A company uses the perpetual inventory system. On January 1, 2022, it had 500 units of a product in stock, valued at ₦25 each. During the year, 300 units were sold, and 200 units were purchased at ₦30 each. The company uses the weighted average method to value its inventory. What is the total value of inventory on December 31, 2022?
A. ₦9,500
B. ₦10,000
C. ₦10,500
D. ₦11,000
Question 11
A company has the following control account: Sales Ledger: ₦500,000, Purchase Ledger: ₦300,000. What is the total value of the company's assets?
A. ₦800,000
B. ₦700,000
C. ₦600,000
D. ₦900,000
Question 12
A bank reconciliation statement shows a difference of ₦5,000 between the cash book balance and the bank statement balance. What is the reason for this difference?
A. Bank error
B. Cash book error
C. Cheque not yet cleared
D. Deposit not yet credited
Question 13
A company's income statement for the year ended December 31, 2022, is as follows: Revenue 200,000; Cost of Goods Sold 100,000; Gross Profit 100,000; Operating Expenses 50,000; Net Income 50,000. What is the company's gross margin percentage?
A. 50%
B. 60%
C. 70%
D. 80%
Question 14
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 15
A company's financial records show that it has purchased a piece of equipment for ₦100,000. However, the company's trial balance shows a debit balance of ₦80,000 in the 'Equipment' account. What is the correct journal entry to record the discrepancy?
A. ₦20,000 debit to 'Equipment' and ₦20,000 credit to 'Cash'
B. ₦80,000 debit to 'Equipment' and ₦100,000 credit to 'Cash'
C. ₦100,000 debit to 'Equipment' and ₦80,000 credit to 'Cash'
D. ₦20,000 credit to 'Equipment' and ₦20,000 debit to 'Cash'

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