POST UTME KSU 2017 Accounting | Objective

Are you preparing for POST UTME KSU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
Correct A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000

Correct Answer: A

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Question 2
A manufacturing company uses the weighted average method to value its inventory. If the company has three types of inventory with the following quantities and costs: | Type | Quantity | Cost per Unit | | --- | --- | --- | | A | 100 | ₦50 | | B | 200 | ₦75 | | C | 300 | ₦100 | Calculate the total value of the inventory.
A. ₦32,500
B. ₦35,000
Correct C. ₦37,500
D. ₦40,000

Correct Answer: C

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Question 3
A company's cash book shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash received from customers | ₦10,000 | | | 2 | Cash paid to suppliers | | ₦5,000 | | 3 | Cash received from bank | ₦20,000 | | | 4 | Cash paid to employees | | ₦15,000 | Calculate the cash balance.
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 4
A company issues 10,000, 9% preference shares of ₦10 each at a premium of ₦2. Calculate the amount received from the shareholders.
A. ₦100,000
Correct B. ₦110,000
C. ₦120,000
D. ₦130,000

Correct Answer: B

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Question 5
A company's bank statement shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 | Bank charged interest | ₦500 | | | 2 | Bank credited interest | | ₦500 | | 3 | Bank charged commission | ₦200 | | | 4 | Bank credited commission | | ₦200 | Calculate the bank balance.
Correct A. ₦0
B. ₦500
C. ₦1,000
D. ₦1,500

Correct Answer: A

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Question 6
A company issues 10,000 shares of ₦5 each at a premium of ₦3 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 7
A company's trading account for the year ended 31st December 2022 is as follows: Debit: Sundry expenses ₦20,000 Depreciation ₦15,000 Credit: Sales ₦150,000 Cost of goods sold ₦80,000 Calculate the net profit for the year.
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 8
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦100,000 Liabilities: ₦50,000 ₦30,000 ₦20,000 Calculate the company's net worth.
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 9
A company's ledger account for the year ended 31st December 2022 is as follows: Debit: ₦50,000 ₦20,000 Credit: ₦30,000 ₦15,000 Calculate the net balance in the account.
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 10
A company's depreciation account for the year ended 31st December 2022 is as follows: ₦20,000 ₦15,000 ₦10,000 Calculate the total depreciation for the year.
A. ₦45,000
B. ₦50,000
Correct C. ₦55,000
D. ₦60,000

Correct Answer: C

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Question 11
A company issues 10,000 shares of ₦ 1 each at a premium of ₦ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦ 10,000
B. ₦ 50,000
Correct C. ₦ 55,000
D. ₦ 60,000

Correct Answer: C

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Question 12
A partnership has two partners, A and B, who share profits in the ratio 3:2. If the total profit for the year is ₦ 120,000, calculate the share of profit of partner A.
Correct A. ₦ 90,000
B. ₦ 80,000
C. ₦ 70,000
D. ₦ 60,000

Correct Answer: A

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Question 13
A company purchases a machine for ₦ 50,000 and depreciates it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦ 30,000
B. ₦ 35,000
C. ₦ 40,000
Correct D. ₦ 45,000

Correct Answer: D

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Question 14
A company issues 5,000 debentures of ₦ 100 each at a premium of ₦ 10 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦ 500,000
Correct B. ₦ 550,000
C. ₦ 600,000
D. ₦ 650,000

Correct Answer: B

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Question 15
A company has a profit of ₦ 150,000 and a tax rate of 25%. Calculate the amount of tax payable.
Correct A. ₦ 37,500
B. ₦ 40,000
C. ₦ 42,500
D. ₦ 45,000

Correct Answer: A

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Question 16
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The shares were sold for ₦ 1.50 each. Calculate the amount received from the sale of shares.
A. ₦ 10,000
B. ₦ 20,000
Correct C. ₦ 30,000
D. ₦ 40,000

Correct Answer: C

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Question 17
A company's trial balance showed a debit balance of ₦ 10,000 in the account 'Sales Returns'. The correct balance should be a credit balance of ₦ 5,000. What is the correct journal entry to correct this error?
A. Debit Sales Returns ₦ 10,000, Credit Sales ₦ 5,000
B. Debit Sales ₦ 5,000, Credit Sales Returns ₦ 10,000
Correct C. Debit Sales Returns ₦ 5,000, Credit Sales ₦ 10,000
D. Debit Sales ₦ 10,000, Credit Sales Returns ₦ 5,000

Correct Answer: C

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Question 18
A company purchased a machine for ₦ 50,000. The machine has a useful life of 5 years and a residual value of ₦ 5,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦ 9,500
B. ₦ 10,000
C. ₦ 9,000
D. ₦ 8,500

Correct Answer: A

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Question 19
A company's manufacturing account showed the following details: Direct Materials ₦ 10,000, Direct Labour ₦ 15,000, Factory Overheads ₦ 20,000. Calculate the total cost of production.
A. ₦ 45,000
B. ₦ 50,000
Correct C. ₦ 55,000
D. ₦ 60,000

Correct Answer: C

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Question 20
A company issued 5,000 debentures of ₦ 100 each at a premium of ₦ 10 per debenture. The debentures were sold for ₦ 110 each. Calculate the amount received from the sale of debentures.
A. ₦ 550,000
B. ₦ 600,000
Correct C. ₦ 650,000
D. ₦ 700,000

Correct Answer: C

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Question 21
A company's cash book shows a debit balance of ₦15,000. However, the bank statement shows a credit balance of ₦20,000. What is the correct explanation for this discrepancy?
Correct A. The company has a bank overdraft.
B. The bank has made an error in its statement.
C. The company has a cash credit balance.
D. The company has a bank loan.

Correct Answer: A

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Question 22
A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department has a total cost of ₦100,000 and the Assembly department has a total cost of ₦150,000. What is the total cost of the product?
Correct A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 23
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
Correct A. ₦10,500
B. ₦10,000
C. ₦10,500
D. ₦10,000

Correct Answer: A

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Question 24
A company's balance sheet shows a current ratio of 2:1. What does this indicate about the company's liquidity?
Correct A. The company has a high level of liquidity.
B. The company has a low level of liquidity.
C. The company has a moderate level of liquidity.
D. The company has a high level of illiquidity.

Correct Answer: A

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Question 25
A company's cash book shows a debit balance of ₦15,000. However, the bank statement shows a credit balance of ₦20,000. What is the correct explanation for this discrepancy?
Correct A. The company has a bank overdraft.
B. The bank has made an error in its statement.
C. The company has a cash credit balance.
D. The company has a bank loan.

Correct Answer: A

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