Practice post utme lasu accounting 2018 Past Questions

Question 1

Determine the amount of depreciation on a machine that cost ₦120,000 and has a useful life of 5 years, using the straight-line method. The machine is depreciated by 20% per annum.

A. ₦24,000

Correct B. ₦30,000

C. ₦36,000

D. ₦48,000

Correct Answer: B

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Question 2

A partnership between three individuals has the following capital balances: John ₦150,000, Mary ₦120,000, and David ₦100,000. If the profit-sharing ratio is 3:2:1, calculate the amount of profit to be distributed to each partner.

Correct A. John: ₦45,000, Mary: ₦30,000, David: ₦15,000

B. John: ₦60,000, Mary: ₦40,000, David: ₦20,000

C. John: ₦75,000, Mary: ₦50,000, David: ₦25,000

D. John: ₦90,000, Mary: ₦60,000, David: ₦30,000

Correct Answer: A

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Question 3

A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.

A. ₦150,000

B. ₦200,000

Correct C. ₦250,000

D. ₦300,000

Correct Answer: C

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Question 4

A company has the following balance sheet: ₦100,000 in cash, ₦50,000 in accounts receivable, ₦20,000 in inventory, and ₦30,000 in equipment. Calculate the total assets.

A. ₦200,000

B. ₦220,000

Correct C. ₦240,000

D. ₦260,000

Correct Answer: C

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Question 5

A company issued 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

B. ₦550,000

Correct C. ₦600,000

D. ₦650,000

Correct Answer: C

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Question 6

A company uses the straight-line method of depreciation. If the cost of an asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?

Correct A. ₦24,000

B. ₦20,000

C. ₦18,000

D. ₦22,000

Correct Answer: A

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Question 7

A partnership has two partners, A and B. The capital contributions of A and B are ₦80,000 and ₦60,000 respectively. If the profit-sharing ratio is 3:2, what is the share of profit of partner A?

Correct A. ₦36,000

B. ₦24,000

C. ₦30,000

D. ₦20,000

Correct Answer: A

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Question 8

A company prepares its financial statements on a cash basis. What is the effect of the following transaction on the cash flow statement?

A. Increase in cash

Correct B. Decrease in cash

C. No effect on cash

D. Increase in accounts receivable

Correct Answer: B

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Question 9

SHARED STIMULUS

Assets: ₦150,000, Liabilities: ₦50,000, Equity: ₦100,000

A company has the following trial balance as at December 31, 2022.

A. ₦120,000

Correct B. ₦150,000

C. ₦180,000

D. ₦200,000

Correct Answer: B

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Question 10

A company uses the perpetual inventory system. If the cost of goods sold is ₦120,000 and the beginning inventory is ₦80,000, what is the cost of goods available for sale?

A. ₦200,000

Correct B. ₦220,000

C. ₦240,000

D. ₦260,000

Correct Answer: B

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Question 11

A company's trading account for the year ended 31st December 2022 showed a profit of ₦120,000. The balance on the profit and loss account was ₦80,000. The balance on the capital account was ₦150,000. The balance on the drawings account was ₦20,000. The balance on the profit sharing account was ₦30,000. What is the balance on the profit sharing account after the profit of ₦120,000 has been divided among the partners?

A. ₦30,000

Correct B. ₦60,000

C. ₦90,000

D. ₦120,000

Correct Answer: B

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Question 12

A company's balance sheet as at 31st December 2022 showed the following balances: Share Capital ₦150,000, Profit and Loss Account ₦80,000, Drawings ₦20,000. The company made a profit of ₦120,000 during the year. What is the new balance on the profit and loss account?

A. ₦200,000

B. ₦180,000

Correct C. ₦160,000

D. ₦140,000

Correct Answer: C

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Question 13

A company's profit and loss account for the year ended 31st December 2022 showed a profit of ₦120,000. The balance on the profit and loss account was ₦80,000. The balance on the capital account was ₦150,000. The balance on the drawings account was ₦20,000. The balance on the profit sharing account was ₦30,000. What is the new balance on the profit sharing account after the profit of ₦120,000 has been divided among the partners?

A. ₦60,000

B. ₦90,000

Correct C. ₦120,000

D. ₦150,000

Correct Answer: C

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Question 14

A company's balance sheet as at 31st December 2022 showed the following balances: Share Capital ₦150,000, Profit and Loss Account ₦80,000, Drawings ₦20,000. The company made a profit of ₦120,000 during the year. What is the new balance on the profit and loss account?

A. ₦200,000

B. ₦180,000

Correct C. ₦160,000

D. ₦140,000

Correct Answer: C

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Question 15

A company's profit and loss account for the year ended 31st December 2022 showed a profit of ₦120,000. The balance on the profit and loss account was ₦80,000. The balance on the capital account was ₦150,000. The balance on the drawings account was ₦20,000. The balance on the profit sharing account was ₦30,000. What is the new balance on the profit sharing account after the profit of ₦120,000 has been divided among the partners?

A. ₦60,000

B. ₦90,000

Correct C. ₦120,000

D. ₦150,000

Correct Answer: C

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Question 16

A company has two types of shares: ordinary and preference. The ordinary shares have a par value of ₦5 each, while the preference shares have a par value of ₦10 each. If the company issues 10,000 ordinary shares and 5,000 preference shares, what is the total par value of the shares issued?

A. ₦150,000

Correct B. ₦200,000

C. ₦250,000

D. ₦300,000

Correct Answer: B

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Question 17

A manufacturing company uses a job costing system. The company has two departments: Cutting and Assembly. The Cutting department incurs a direct labor cost of ₦10,000 and a direct material cost of ₦5,000. The Assembly department incurs a direct labor cost of ₦8,000 and a direct material cost of ₦3,000. What is the total cost of the job?

A. ₦31,000

B. ₦32,000

Correct C. ₦33,000

D. ₦34,000

Correct Answer: C

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Question 18

A company uses the straight-line method of depreciation. The company purchases a machine for ₦200,000 and expects it to last for 5 years. What is the annual depreciation expense?

A. ₦40,000

B. ₦50,000

Correct C. ₦60,000

D. ₦70,000

Correct Answer: C

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Question 19

A company issues 10,000 shares at a premium of ₦5 per share. The company also issues 5,000 shares at a discount of ₦2 per share. What is the total amount received from the issue of shares?

A. ₦150,000

Correct B. ₦160,000

C. ₦170,000

D. ₦180,000

Correct Answer: B

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Question 20

A company has a balance sheet as follows: Assets ₦500,000, Liabilities ₦300,000, and Equity ₦200,000. What is the company's current ratio?

A. 1.67

Correct B. 2.00

C. 2.33

D. 2.67

Correct Answer: B

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Question 21

A company uses the double-entry system of accounting. The following transactions were recorded in the journal: Debit: Cash 1,000, Accounts Payable 2,000 Credit: Purchases 3,000 What is the correct journal entry for the above transaction?

Correct A. Debit: Cash 1,000, Accounts Payable 2,000 Credit: Purchases 3,000

B. Debit: Purchases 3,000 Credit: Cash 1,000, Accounts Payable 2,000

C. Debit: Cash 1,000 Credit: Purchases 3,000, Accounts Payable 2,000

D. Debit: Accounts Payable 2,000 Credit: Purchases 3,000, Cash 1,000

Correct Answer: A

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Question 22

A company's trial balance shows the following balances: Debit: 10,000 Credit: 12,000 What is the correct treatment for the above discrepancy?

Correct A. Debit the difference to the income statement

B. Credit the difference to the income statement

C. Debit the difference to the balance sheet

D. Credit the difference to the balance sheet

Correct Answer: A

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Question 23

A government agency is required to prepare a budget that includes the following items: Personnel 10,000, Travel 5,000, Supplies 2,000 What is the total amount of the budget?

Correct A. 17,000

B. 20,000

C. 22,000

D. 25,000

Correct Answer: A

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Question 24

A company uses a self-balancing ledger to record the following transactions: Debit: Cash 1,000, Accounts Payable 2,000 Credit: Purchases 3,000 What is the correct ledger entry for the above transaction?

Correct A. Debit: Cash 1,000, Accounts Payable 2,000 Credit: Purchases 3,000

B. Debit: Purchases 3,000 Credit: Cash 1,000, Accounts Payable 2,000

C. Debit: Cash 1,000 Credit: Purchases 3,000, Accounts Payable 2,000

D. Debit: Accounts Payable 2,000 Credit: Purchases 3,000, Cash 1,000

Correct Answer: A

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Question 25

A company's bank reconciliation statement shows the following discrepancies: Bank balance 10,000, Cash balance 12,000 What is the correct treatment for the above discrepancy?

Correct A. Debit the difference to the income statement

B. Credit the difference to the income statement

C. Debit the difference to the balance sheet

D. Credit the difference to the balance sheet

Correct Answer: A

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