POST UTME KSU 2023 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 2023 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's accounting policy requires the use of the accrual basis of accounting. Which of the following transactions would be recorded as an expense in the current period?
A. Rent paid in advance
B. Salaries earned but not paid
Correct C. Depreciation of a machine
D. Interest received on a loan

Correct Answer: C

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Question 2
A government agency is required to prepare a budget that is based on the cash basis of accounting. Which of the following transactions would be recorded as a revenue in the current period?
Correct A. Receipt of cash from a grant
B. Payment of cash for a service rendered
C. Accrual of interest on a loan
D. Accrual of rent due

Correct Answer: A

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Question 3
A company uses the double-entry system of accounting. If the company purchases a machine for ₦100,000, which of the following journal entries would be recorded?
A. Debit: Machine ₦100,000, Credit: Cash ₦100,000
Correct B. Debit: Machine ₦100,000, Credit: Bank ₦100,000
C. Debit: Bank ₦100,000, Credit: Machine ₦100,000
D. Debit: Cash ₦100,000, Credit: Machine ₦100,000

Correct Answer: B

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

Correct Answer: D

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Question 5
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | | | Bank | | ₦20,000 | | Accounts Payable | ₦5,000 | | | Accounts Receivable | | ₦10,000 | What is the total amount of the company's assets?
A. ₦25,000
B. ₦30,000
C. ₦35,000
Correct D. ₦40,000

Correct Answer: D

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Question 6
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 10,000. Prepare the journal entry for the issue of shares.
Correct A. Debit Share Capital ₦ 120,000, Credit Cash ₦ 100,000, Credit Share Premium ₦ 20,000
B. Debit Share Capital ₦ 120,000, Credit Cash ₦ 100,000, Credit Issue Expenses ₦ 20,000
C. Debit Share Capital ₦ 100,000, Credit Cash ₦ 120,000, Credit Issue Expenses ₦ 20,000
D. Debit Share Capital ₦ 100,000, Credit Cash ₦ 120,000, Credit Share Premium ₦ 20,000

Correct Answer: A

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Question 7
A partnership has two partners, A and B. The capital accounts of A and B are ₦ 50,000 and ₦ 30,000 respectively. The profit-sharing ratio is 3:2. Prepare the profit-sharing ratio account.
Correct A. Debit A's Capital ₦ 15,000, Credit B's Capital ₦ 10,000
B. Debit A's Capital ₦ 10,000, Credit B's Capital ₦ 15,000
C. Debit A's Capital ₦ 20,000, Credit B's Capital ₦ 12,000
D. Debit A's Capital ₦ 12,000, Credit B's Capital ₦ 20,000

Correct Answer: A

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Question 8
A company purchased a machine for ₦ 10,000. The machine has a useful life of 5 years and a residual value of ₦ 2,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦ 1,600
B. ₦ 1,800
C. ₦ 2,000
D. ₦ 2,400

Correct Answer: A

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Question 9
A company issued 5,000 debentures of ₦ 100 each at a premium of ₦ 5 per debenture. The issue expenses were ₦ 5,000. Prepare the journal entry for the issue of debentures.
Correct A. Debit Debenture Redemption Fund ₦ 525,000, Credit Cash ₦ 500,000, Credit Debenture Discount ₦ 25,000
B. Debit Debenture Redemption Fund ₦ 525,000, Credit Cash ₦ 500,000, Credit Issue Expenses ₦ 25,000
C. Debit Debenture Redemption Fund ₦ 500,000, Credit Cash ₦ 525,000, Credit Issue Expenses ₦ 25,000
D. Debit Debenture Redemption Fund ₦ 500,000, Credit Cash ₦ 525,000, Credit Debenture Discount ₦ 25,000

Correct Answer: A

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Question 10
A company purchased a machine for ₦ 15,000. The machine has a useful life of 5 years and a residual value of ₦ 3,000. Calculate the annual depreciation using the reducing balance method.
Correct A. ₦ 2,400
B. ₦ 2,700
C. ₦ 3,000
D. ₦ 3,600

Correct Answer: A

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Question 11
A company issued 10,000 shares of 1 par value at a premium of 3 per share. If the company received 35,000 from the sale of these shares, what is the total amount of paid-in capital?
A. ₦35,000
B. ₦40,000
C. ₦45,000
Correct D. ₦50,000

Correct Answer: D

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Question 12
A manufacturing company uses a job-order costing system. The company has two departments: Cutting and Assembly. The Cutting department has a balance of 10,000 in Work-in-Process Inventory and 5,000 in Finished Goods Inventory. The Assembly department has a balance of 8,000 in Work-in-Process Inventory and 3,000 in Finished Goods Inventory. What is the total amount of Work-in-Process Inventory?
A. ₦18,000
B. ₦20,000
Correct C. ₦22,000
D. ₦24,000

Correct Answer: C

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Question 13
A company has the following trial balance: Accounts Payable 10,000, Sales Revenue 20,000, Cost of Goods Sold 15,000, and Common Stock 5,000. What is the total amount of assets?
A. ₦30,000
B. ₦35,000
Correct C. ₦40,000
D. ₦45,000

Correct Answer: C

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Question 14
A partnership has two partners: John and Mary. John's capital account balance is 10,000 and Mary's capital account balance is 8,000. If the partnership has a total capital of 20,000, what is the ratio of John's capital to Mary's capital?
A. 1:1
Correct B. 2:1
C. 3:2
D. 4:3

Correct Answer: B

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Question 15
A company issued 5,000 shares of 1 par value at a premium of 2 per share. If the company received 12,000 from the sale of these shares, what is the total amount of paid-in capital?
A. ₦10,000
B. ₦12,000
C. ₦14,000
Correct D. ₦16,000

Correct Answer: D

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Question 16
A company's financial year ends on 31st December. The following transactions occurred during the year:
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 17
A manufacturing company uses the weighted average method to value its inventory. The following data is available for the year:
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 18
A company's balance sheet at the end of the year shows the following balances:
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 19
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. The following data is available:
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 20
A company's profit and loss account for the year shows the following balances:
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 21
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦450,000
B. ₦475,000
Correct C. ₦500,000
D. ₦525,000

Correct Answer: C

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Question 22
A trader's cash book showed a balance of ₦15,000. The bank statement showed a balance of ₦18,000. The difference of ₦3,000 was due to a dishonored cheque. Calculate the correct balance in the cash book.
Correct A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦21,000

Correct Answer: A

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Question 23
A company's trading account for the year ended 31st December 2022 showed a profit of ₦120,000. The company's profit and loss account showed a profit of ₦150,000. The difference of ₦30,000 was due to a gain on the sale of a fixed asset. Calculate the company's net profit for the year.
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦210,000

Correct Answer: C

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Question 24
A government ministry received a grant of ₦500,000 from the federal government. The ministry spent ₦300,000 on a project and ₦100,000 on salaries. Calculate the ministry's remaining balance.
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 25
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2. Calculate the amount received from shareholders.
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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