POST UTME LASU 2020 Accounting | Objective

Are you preparing for POST UTME LASU exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's trading account for the year ended 31st December 2020 is as follows: Debit: Sundry expenses: ₦120,000 Wages: ₦180,000 Rent: ₦60,000 Credit: Sales: ₦1,200,000 Purchases: ₦900,000 Determine the company's net profit for the year.
A. ₦120,000
B. ₦180,000
C. ₦60,000
Correct D. ₦300,000

Correct Answer: D

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Question 2
A company's balance sheet as at 31st December 2020 is as follows: Assets: ₦1,500,000 Liabilities: ₦1,200,000 Equity: ₦300,000 Determine the company's current ratio.
A. 1.25
Correct B. 1.50
C. 2.00
D. 3.00

Correct Answer: B

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Question 3
A company's control account for the year ended 31st December 2020 is as follows: Debit: ₦1,200,000 Credit: ₦1,500,000 Determine the company's net loss for the year.
A. ₦300,000
B. ₦400,000
C. ₦500,000
Correct D. ₦600,000

Correct Answer: D

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Question 4
A company's public sector accounting for the year ended 31st December 2020 is as follows: Revenues: ₦1,200,000 Expenditures: ₦1,500,000 Determine the company's net deficit for the year.
A. ₦300,000
B. ₦400,000
C. ₦500,000
Correct D. ₦600,000

Correct Answer: D

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Question 5
A company's manufacturing account for the year ended 31st December 2020 is as follows: Prime Cost: ₦1,200,000 Overheads: ₦1,500,000 Determine the company's net loss for the year.
A. ₦300,000
B. ₦400,000
C. ₦500,000
Correct D. ₦600,000

Correct Answer: D

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Question 6
In a partnership account, the capital of the partners is divided in the ratio of 3:5:7. If the total capital is ₦1,500,000, what is the amount of capital of the partner with the highest share?
A. ₦420,000
B. ₦525,000
Correct C. ₦630,000
D. ₦735,000

Correct Answer: C

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Question 7
A company has a cash book balance of ₦50,000 and a bank statement balance of ₦60,000. The bank statement includes a credit of ₦10,000 for a dishonored cheque. What is the correct balance of the company's cash account?
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 8
A manufacturing company has a production cost of ₦1,000,000 and a selling price of ₦1,500,000. If the company sells 1,000 units, what is the gross profit?
A. ₦500,000
B. ₦750,000
C. ₦1,000,000
Correct D. ₦1,250,000

Correct Answer: D

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Question 9
A company has a trial balance that includes the following accounts: Sales (₦1,000,000), Cost of Goods Sold (₦800,000), and Profit (₦200,000). What is the correct balance of the Profit account?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 10
A company has a bank statement that includes the following transactions: a deposit of ₦10,000, a withdrawal of ₦5,000, and a credit of ₦8,000 for a dishonored cheque. What is the correct balance of the company's bank account?
A. ₦13,000
Correct B. ₦18,000
C. ₦23,000
D. ₦28,000

Correct Answer: B

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Question 11
A company issued 10,000 shares of 50 kobo each at a premium of 20%. Calculate the total amount received from the issue of shares.
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

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Question 12
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare the company's balance sheet.
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 13
A company purchased a machine for ₦500,000 and depreciated it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦300,000
B. ₦350,000
Correct C. ₦400,000
D. ₦450,000

Correct Answer: C

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Question 14
A company issued 5,000 debentures of ₦100 each at a premium of 10%. 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 15
A company's trial balance showed the following balances: Accounts Payable ₦30,000, Sales Revenue ₦300,000, Cost of Goods Sold ₦200,000, and Common Stock ₦150,000. Prepare the company's income statement.
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 16
A partnership between two individuals, John and Jane, was formed on January 1, 2020. Their capital contributions were as follows: John contributed ₦500,000 in cash and a building worth ₦300,000, while Jane contributed ₦200,000 in cash and a machine worth ₦250,000. The partnership agreement specified that profits and losses would be shared in the ratio 3:2. Calculate the total capital contributed by John and Jane.
A. ₦800,000
B. ₦900,000
Correct C. ₦1,000,000
D. ₦1,100,000

Correct Answer: C

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Question 17
A company's trial balance as of December 31, 2020, showed the following balances: Accounts Payable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Common Stock ₦200,000. Prepare the company's balance sheet as of December 31, 2020.
Correct A. ₦1,250,000
B. ₦1,350,000
C. ₦1,450,000
D. ₦1,550,000

Correct Answer: A

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Question 18
A company's bank reconciliation statement as of December 31, 2020, showed the following: Cash Balance ₦100,000, Bank Statement Balance ₦120,000, and Outstanding Checks ₦20,000. What was the company's actual cash balance as of December 31, 2020?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 19
A company's income statement for the year ended December 31, 2020, showed the following: Sales Revenue ₦1,000,000, Cost of Goods Sold ₦600,000, and Net Income ₦200,000. What was the company's gross profit for the year?
A. ₦400,000
Correct B. ₦500,000
C. ₦600,000
D. ₦700,000

Correct Answer: B

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Question 20
A company's balance sheet as of December 31, 2020, showed the following: Cash ₦100,000, Accounts Payable ₦150,000, and Common Stock ₦200,000. What was the company's total liabilities and equity as of December 31, 2020?
A. ₦450,000
B. ₦550,000
Correct C. ₦650,000
D. ₦750,000

Correct Answer: C

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Question 21
A company's trial balance shows an error of ₦0.50 in the debit side of the account. The error is due to the omission of a transaction. The correct amount of the transaction is ₦1,500. What is the correct balance of the account?
A. ₦0.50
B. ₦1,500
Correct C. ₦1,500.50
D. ₦1,501.50

Correct Answer: C

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Question 22
A company's balance sheet shows an asset of ₦1,000,000. The asset is depreciated by 10% per annum. What is the value of the asset after 2 years?
A. ₦0.90
B. ₦0.95
C. ₦1,000
Correct D. ₦1,000.10

Correct Answer: D

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Question 23
A company's profit and loss account shows a profit of ₦0.50. The company's balance sheet shows an increase in the equity of ₦0.50. What is the correct balance of the company's equity?
A. ₦0.50
B. ₦1,000
Correct C. ₦1,000.50
D. ₦1,001.50

Correct Answer: C

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Question 24
A company is owned by two partners, A and B. The company's profit and loss account shows a profit of ₦0.50. Partner A's capital is ₦1,000 and partner B's capital is ₦0,500. What is the correct distribution of the profit?
Correct A. Partner A: ₦0.25, Partner B: ₠0.25
B. Partner A: ₠0.25, Partner B: ₦0.25
C. Partner A: ₠0.50, Partner B: ₠0.50
D. Partner A: ₠0.25, Partner B: ₠0.25

Correct Answer: A

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Question 25
A company's trial balance shows an error of ₦0.50 in the debit side of the account. The error is due to the omission of a transaction. The correct amount of the transaction is ₦1,500. What is the correct balance of the account?
A. ₦0.50
B. ₦1,500
Correct C. ₦1,500.50
D. ₦1,501.50

Correct Answer: C

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