Practice post utme lasu accounting 2023 Past Questions

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.

A. ₦900,000

B. ₦950,000

C. ₦1,000,000

Correct D. ₦1,050,000

Correct Answer: D

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Question 2

A partnership is formed by three partners, A, B, and C, who contribute ₦200,000, ₦300,000, and ₦400,000 respectively. If the profit is divided in the ratio 2:3:4, what is the share of profit of partner A?

Correct A. ₦400,000

B. ₦500,000

C. ₦600,000

D. ₦700,000

Correct Answer: A

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Question 3

A company has a trial balance as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦100,000 | | | Accounts Payable | | ₦50,000 | | Sales Revenue | | ₦200,000 | | Cost of Goods Sold | ₦150,000 | | | Net Income | | | What is the amount of net income?

A. ₦50,000

B. ₦100,000

C. ₦150,000

Correct D. ₦200,000

Correct Answer: D

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Question 4

A company issues 10,000 9% shares of ₦10 each at a premium of ₦2. If the issue expenses amount to ₦50,000, what is the amount received from the share issue?

A. ₦200,000

B. ₦250,000

C. ₦300,000

Correct D. ₦350,000

Correct Answer: D

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Question 5

A company has the following ledger accounts: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦100,000 | | | Accounts Payable | | ₦50,000 | | Sales Revenue | | ₦200,000 | | Cost of Goods Sold | ₦150,000 | | | Net Income | | | What is the amount of net income?

A. ₦50,000

B. ₦100,000

C. ₦150,000

Correct D. ₦200,000

Correct Answer: D

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Question 6

In a self-balancing ledger, what is the purpose of the 'Trial Balance'?

Correct A. To verify the accuracy of the ledger accounts

B. To identify any errors or discrepancies in the ledger accounts

C. To prepare the financial statements

D. To reconcile the ledger accounts with the bank statement

Correct Answer: A

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Question 7

A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦120,000, how much will partner A receive?

Correct A. ₦90,000

B. ₦80,000

C. ₦70,000

D. ₦60,000

Correct Answer: A

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Question 8

A company uses the straight-line method of depreciation. If the asset has a useful life of 5 years and a residual value of ₦10,000, what is the annual depreciation charge for an asset costing ₦50,000?

Correct A. ₦8,000

B. ₦9,000

C. ₦10,000

D. ₦11,000

Correct Answer: A

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Question 9

A company's cash book shows a balance of ₦50,000. However, the bank statement shows a balance of ₦60,000. What is the reason for the difference?

A. The company has made a mistake in recording the cash transactions

B. The bank has made an error in preparing the statement

Correct C. The company has deposited cash into the bank but has not yet been credited

D. The company has withdrawn cash from the bank but has not yet been debited

Correct Answer: C

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Question 10

A company uses the percentage of completion method of accounting for construction contracts. If the contract price is ₦1,000,000 and the company has incurred costs of ₦600,000, what is the amount of revenue to be recognized for the period?

A. ₦400,000

Correct B. ₦500,000

C. ₦600,000

D. ₦700,000

Correct Answer: B

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Question 11

A company's trial balance shows a debit balance of ₦15,000 in the 'Office Supplies' account. However, the company's accountant has confirmed that the correct balance should be a credit of ₦5,000. What is the correct journal entry to correct this error?

A. ₦15,000 debit to 'Office Supplies' and ₦5,000 credit to 'Office Supplies'

B. ₦20,000 debit to 'Office Supplies' and ₦15,000 credit to 'Office Supplies'

Correct C. ₦5,000 debit to 'Office Supplies' and ₦15,000 credit to 'Office Supplies'

D. ₦10,000 debit to 'Office Supplies' and ₦5,000 credit to 'Office Supplies'

Correct Answer: C

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Question 12

A company uses a self-balancing ledger to record its transactions. The ledger shows the following balances: 'Cash' (₦50,000), 'Accounts Payable' (₦20,000), and 'Sales' (₦30,000). What is the total value of the company's assets?

Correct A. ₦100,000

B. ₦80,000

C. ₦70,000

D. ₦60,000

Correct Answer: A

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Question 13

A company's cash book shows the following transactions: 'Cash' (₦10,000), 'Bank' (₦5,000), and 'Sales' (₦20,000). What is the total value of the company's cash and bank balances?

A. ₦35,000

B. ₦40,000

C. ₦45,000

Correct D. ₦50,000

Correct Answer: D

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Question 14

A manufacturing company produces two products: 'Product A' and 'Product B'. The company's cost of goods sold for 'Product A' is ₦50,000 and for 'Product B' is ₦30,000. What is the total cost of goods sold for the company?

Correct A. ₦80,000

B. ₦70,000

C. ₦60,000

D. ₦50,000

Correct Answer: A

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Question 15

A company's departmental accounts show the following balances: 'Department A' (₦20,000), 'Department B' (₦15,000), and 'Department C' (₦10,000). What is the total value of the company's departmental accounts?

A. ₦45,000

B. ₦50,000

C. ₦55,000

Correct D. ₦60,000

Correct Answer: D

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Question 16

A company's trading account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The balance on the capital account of the owner was ₦3,000,000. The company's profit-sharing ratio is 2:3:5. Calculate the amount of profit to be distributed to each partner.

A. ₦600,000

B. ₦900,000

Correct C. ₦1,200,000

D. ₦1,500,000

Correct Answer: C

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Question 17

A manufacturing company uses a job costing system. The following data relate to Job No. 123: Direct Materials: ₦12,000; Direct Labour: ₦8,000; Factory Overheads: ₦6,000. Calculate the total cost of the job.

Correct A. ₦26,000

B. ₦26,500

C. ₦27,000

D. ₦27,500

Correct Answer: A

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Question 18

A company's balance sheet as at 31st December 2022, showed the following: Equity Share Capital: ₦5,000,000; Profit & Loss Account: ₦3,000,000; Reserves: ₦2,000,000. Calculate the total equity of the company.

Correct A. ₦10,000,000

B. ₦10,500,000

C. ₦11,000,000

D. ₦11,500,000

Correct Answer: A

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Question 19

A partnership has three partners: A, B, and C. The profit-sharing ratio is 2:3:5. If the total profit for the year ended 31st December 2022, is ₦1,500,000, calculate the amount of profit to be distributed to each partner.

A. ₦600,000

B. ₦900,000

Correct C. ₦1,200,000

D. ₦1,500,000

Correct Answer: C

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Question 20

A company's trading account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The balance on the capital account of the owner was ₦3,000,000. The company's profit-sharing ratio is 2:3:5. Calculate the amount of profit to be distributed to each partner.

A. ₦600,000

B. ₦900,000

Correct C. ₦1,200,000

D. ₦1,500,000

Correct Answer: C

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Question 21

A company uses the double-entry system of accounting. If the company's assets increase by ₦50,000 and its liabilities decrease by ₦20,000, what is the effect on the company's equity?

Correct A. ₦30,000 increase

B. ₦30,000 decrease

C. ₦70,000 increase

D. ₦70,000 decrease

Correct Answer: A

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Question 22

A company purchases a machine for ₦200,000 and depreciates it using the straight-line method over a period of 5 years. What is the annual depreciation charge?

A. ₦40,000

B. ₦50,000

Correct C. ₦60,000

D. ₦80,000

Correct Answer: C

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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?

A. ₦10,000

B. ₦15,000

C. ₦20,000

Correct D. ₦25,000

Correct Answer: D

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Question 24

A company's trading account shows a profit of ₦100,000. If the company's profit before taxation is ₦120,000 and its tax rate is 20%, what is the company's profit after taxation?

A. ₦80,000

Correct B. ₦90,000

C. ₦100,000

D. ₦110,000

Correct Answer: B

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Question 25

A company's balance sheet shows total assets of ₦500,000, total liabilities of ₦200,000, and equity of ₦300,000. What is the company's current ratio?

A. 2:1

Correct B. 3:1

C. 4:1

D. 5:1

Correct Answer: B

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POST UTME LASU 2023 Accounting | Objective

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