POST UTME KSU 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account for the year ended 31st December 2020 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2020 shows a decrease in trade debtors of ₦250,000 and an increase in trade creditors of ₦300,000. Calculate the company's net cash inflow from trading activities.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 2
A company issues 10,000 ordinary shares of ₦1 each at a premium of ₦0.50 per share. The issue expenses amount to ₦5,000. Prepare the journal entry to record the issue of shares.
A. ₦50,000 credit to Share Capital and ₦5,000 debit to Share Premium
B. ₦50,000 credit to Share Premium and ₦5,000 debit to Share Capital
C. ₦50,000 credit to Share Capital and ₦5,000 debit to Issue Expenses
D. ₦50,000 credit to Share Premium and ₦5,000 debit to Issue Expenses
Question 3
A company uses the single-entry system of accounting. If the company purchases goods worth ₦100,000 and pays cash of ₦80,000, what is the journal entry for the transaction?
A. Debit Purchases ₦100,000, Credit Cash ₦80,000
B. Debit Purchases ₦80,000, Credit Cash ₦100,000
C. Debit Purchases ₦100,000, Credit Cash ₦100,000
D. Debit Purchases ₦80,000, Credit Cash ₦80,000
Question 4
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. ₦5,500,000
B. ₦5,000,000
C. ₦4,500,000
D. ₦4,000,000
Question 5
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this discrepancy?
A. Debit Rent Paid by ₦5,000 and Credit Rent Received by ₦5,000
B. Debit Rent Received by ₦5,000 and Credit Rent Paid by ₦5,000
C. Debit Rent Paid by ₦20,000 and Credit Rent Received by ₦20,000
D. Debit Rent Received by ₦20,000 and Credit Rent Paid by ₦20,000
Question 6
A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank statement balance. What is the correct treatment for this discrepancy?
A. Debit the Cash account and credit the Bank account
B. Credit the Cash account and debit the Bank account
C. Debit the Profit or Loss account and credit the Cash account
D. Credit the Profit or Loss account and debit the Cash account
Question 7
A partnership has two partners, A and B. The partnership's trial balance shows a debit balance of ₦10,000 in the account 'A's Capital'. What is the correct treatment for this discrepancy?
A. Debit the A's Capital account and credit the Profit or Loss account
B. Credit the A's Capital account and debit the Profit or Loss account
C. Debit the A's Capital account and credit the B's Capital account
D. Credit the A's Capital account and debit the B's Capital account
Question 8
A manufacturing company has the following transactions for the month of January: Purchased raw materials worth ₦50,000, sold goods worth ₦75,000, and incurred wages of ₦20,000. What is the total cost of goods sold?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 9
A company's balance sheet shows a current ratio of 2:1. If the total current assets are ₦120,000 and the total current liabilities are ₦60,000, what is the correct interpretation of the current ratio?
A. The company has sufficient liquidity to meet its short-term obligations
B. The company has insufficient liquidity to meet its short-term obligations
C. The company has a high level of liquidity and can take on more debt
D. The company has a low level of liquidity and should reduce its debt
Question 10
A company's balance sheet shows a current liability of ₦150,000. What is the correct classification of this liability?
A. Non-current liability
B. Current liability
C. Equity
D. Asset
Question 11
A company's cash book shows a balance of ₦120,000 on December 31, 2022, while the bank statement shows a balance of ₦100,000 on the same date. The bank reconciliation statement reveals that the company's cash book is overcast by ₦20,000 and the bank has charged a service fee of ₦5,000. What is the correct balance of the company's cash book after reconciliation?
A. ₦105,000
B. ₦110,000
C. ₦115,000
D. ₦120,000
Question 12
A company has the following transactions: Purchased goods for ₦100,000; Sold goods for ₦120,000. What is the profit?
A. ₦20,000
B. ₦20,000
C. ₦20,000
D. ₦20,000
Question 13
A company's balance sheet as at 31st December 2020 shows a current ratio of 2:1. If the company's current assets are ₦1,500,000 and its current liabilities are ₦750,000, calculate the company's current assets.
A. ₦1,500,000
B. ₦1,250,000
C. ₦1,000,000
D. ₦750,000
Question 14
A company's profit and loss account for the year ended 31st December 2020 shows a gross profit of ₦1,500,000 and an operating profit of ₦1,200,000. Calculate the company's net profit.
A. ₦1,200,000
B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000
Question 15
A company's trial balance shows a debit balance of ₦15,000 in the account 'Salaries and Wages' and a credit balance of ₦10,000 in the account 'Salaries and Wages Payable'. What is the correct journal entry to record the correction of this error?
A. ₦5,000 debit to Salaries and Wages Payable and ₦5,000 credit to Salaries and Wages
B. ₦5,000 debit to Salaries and Wages and ₦5,000 credit to Salaries and Wages Payable
C. ₦15,000 debit to Salaries and Wages Payable and ₦10,000 credit to Salaries and Wages
D. ₦15,000 debit to Salaries and Wages and ₦10,000 credit to Salaries and Wages Payable

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