POST UTME JOSEPH AYO BABALOLA UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account showed a profit of £ 50,000. The company's profit and loss account showed a profit of £ 60,000. Calculate the company's balance sheet.
A. £ 100,000
B. £ 120,000
C. £ 140,000
D. £ 160,000
Question 2
A company uses the cash basis of accounting. If the company has cash of ₦500,000 and accounts payable of ₦200,000, what is the net amount of current assets?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 3
A company uses the double-entry system of accounting. The company's accountant has recorded the following transactions: Debit: Accounts Payable 2,000, Equipment 3,000 Credit: Cash 1,000, Sales Revenue 4,000 What is the net effect on the company's cash balance?
A. 1,500 increase
B. 2,500 increase
C. 3,500 increase
D. 4,500 increase
Question 4
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000, its residual value is ₦20,000, and it is used for 5 years, what is the annual depreciation charge?
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 5
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Prepare the journal entry to record the issue of these shares.
A. Debit Cash 75,000, Credit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000
B. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000
C. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000
D. Debit Paid-in Capital in Excess of Par Value 25,000, Credit Common Stock 50,000, Credit Cash 75,000
Question 6
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦150,000, how much will A receive?
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 7
A company issued 5,000 shares of £ 10 each at a premium of £ 2 per share. Calculate the total amount received from the issue of shares.
A. £ 50,000
B. £ 60,000
C. £ 70,000
D. £ 80,000
Question 8
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 4 each. Prepare the journal entry to record the issue of these shares.
A. Debit Cash 40,000, Credit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000
B. Debit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000, Credit Cash 40,000
C. Debit Common Stock 10,000, Credit Paid-in Capital in Excess of Par Value 30,000, Credit Cash 40,000
D. Debit Paid-in Capital in Excess of Par Value 30,000, Credit Common Stock 10,000, Credit Cash 40,000
Question 9
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The shares were sold for 15 each. Prepare the journal entry to record the issue of these shares.
A. Debit Cash 75,000, Credit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000
B. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000
C. Debit Common Stock 50,000, Credit Paid-in Capital in Excess of Par Value 25,000, Credit Cash 75,000
D. Debit Paid-in Capital in Excess of Par Value 25,000, Credit Common Stock 50,000, Credit Cash 75,000
Question 10
A company uses the double-entry system of accounting. The company's accountant has recorded the following transactions: Debit: Accounts Payable 2,000, Equipment 3,000 Credit: Cash 1,000, Sales Revenue 4,000 What is the net effect on the company's cash balance?
A. 1,500 increase
B. 2,500 increase
C. 3,500 increase
D. 4,500 increase
Question 11
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, costing ₦120 each. During the year, 300 units were sold, and 200 units were purchased at ₦150 each. Calculate the cost of goods sold.
A. ₦42,000
B. ₦45,000
C. ₦48,000
D. ₦51,000
Question 12
A company uses the double-declining balance method to depreciate its assets. If the asset's cost is ₦120,000, its residual value is ₦20,000, and it is used for 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦26,000
C. ₦28,000
D. ₦30,000
Question 13
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. If the profit for the year is ₦60,000, what is the share of profit of partner A?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 14
A company uses the weighted average method of inventory valuation. It had the following inventory balances at the beginning and end of the year: Beginning Inventory ₦50,000, Purchases ₦150,000, and Ending Inventory ₦75,000. What is the cost of goods sold?
A. ₦125,000
B. ₦130,000
C. ₦135,000
D. ₦140,000
Question 15
A company has the following balance sheet: Assets 100,000, Liabilities 80,000, Equity 20,000. What is the correct journal entry to correct the error?
A. Debit 20,000, Credit 20,000
B. Debit 20,000, Credit 20,000
C. Debit 20,000, Credit 20,000
D. Debit 20,000, Credit 20,000

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