POST UTME LAUTECH 2018 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000, 5% preference shares of ₦10 each at a premium of ₦2. Calculate the amount received from shareholders.
A. ₦200,000
B. ₦220,000
C. ₦240,000
D. ₦260,000
Question 2
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
C. ₦500,000
D. ₦525,000
Question 3
A company issues 5,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the total premium received.
A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000
Question 4
In a partnership account, what is the correct method of calculating the capital of a partner who has been absent for the past two years?
A. Average Capital Method
B. Capital as per the Partnership Deed
C. Capital as per the last year's balance sheet
D. Capital as per the first year's balance sheet
Question 5
A company has the following balance sheet as at 31st December, 2017: assets ₦500,000, liabilities ₦200,000, and equity ₦300,000. What is the return on equity (ROE) for the year?
A. 20%
B. 25%
C. 30%
D. 35%
Question 6
A company's balance sheet shows a current liability of ₦200,000. Its profit and loss account shows a profit of ₦150,000. Calculate the company's net worth.
A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000
Question 7
A company's trial balance shows the following: | Account | Debit | Credit | | --- | --- | --- | | Rent Received | 15,000 | | | Rent Paid | | 20,000 | | | | | What is the correct treatment of these accounts in the preparation of the company's final accounts?
A. The debit balance in 'Rent Received' is ignored and the credit balance in 'Rent Paid' is ignored.
B. The debit balance in 'Rent Received' is transferred to the profit and loss account and the credit balance in 'Rent Paid' is transferred to the profit and loss account.
C. The debit balance in 'Rent Received' is transferred to the profit and loss account and the credit balance in 'Rent Paid' is ignored.
D. The debit balance in 'Rent Received' is ignored and the credit balance in 'Rent Paid' is transferred to the profit and loss account.
Question 8
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | ₦10,000 | | | 2nd Jan | Bank | | ₦15,000 | | 3rd Jan | Cash | ₦8,000 | | | 4th Jan | Bank | | ₦12,000 | What is the correct balance of the company's bank account at the end of the month?
A. ₦27,000
B. ₦31,000
C. ₦35,000
D. ₦39,000
Question 9
A company uses the single entry system to record its transactions. The following transactions were recorded in the year ended December 31, 2018: (i) Cash received from customers, ₦1,500,000; (ii) Cash paid to suppliers, ₦800,000; (iii) Cash paid to employees, ₦300,000; (iv) Cash received from the sale of assets, ₦200,000; (v) Cash paid for rent, ₦100,000; (vi) Cash received from the sale of goods, ₦1,200,000; (vii) Cash paid to the bank, ₦500,000; (viii) Cash received from the bank, ₦600,000. Prepare the assets account for the year ended December 31, 2018.
A. ₦1,500,000
B. ₦2,500,000
C. ₦3,000,000
D. ₦3,500,000
Question 10
A company's trial balance shows an error of ₦1,500 due to an omission of a transaction. The error is discovered after the preparation of the financial statements. What is the correct journal entry to rectify the error?
A. Debit Cash ₦1,500, Credit Profit and Loss Account ₦1,500
B. Debit Profit and Loss Account ₦1,500, Credit Cash ₦1,500
C. Debit Profit and Loss Account ₦1,500, Credit Capital ₦1,500
D. Debit Capital ₦1,500, Credit Profit and Loss Account ₦1,500
Question 11
A company's balance sheet at the end of the year shows the following: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Bank Loan | 20,000 | | Debtors | 30,000 | Creditors | 15,000 | | Stock | 40,000 | | | | | | | | What is the total amount of the company's equity at the end of the year?
A. ₦55,000
B. ₦60,000
C. ₦65,000
D. ₦70,000
Question 12
A company's trading account for the year ended 31st December 20X7 is as follows: Sales: ₦500,000 Returns outwards: ₦20,000 Returns inwards: ₦10,000 Cost of goods sold: ₦300,000 What is the gross profit for the year?
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 13
A company uses the single entry system to record its transactions. The following transactions were recorded in the year ended December 31, 2018: (i) Cash received from customers, ₦1,500,000; (ii) Cash paid to suppliers, ₦800,000; (iii) Cash paid to employees, ₦300,000; (iv) Cash received from the sale of assets, ₦200,000; (v) Cash paid for rent, ₦100,000; (vi) Cash received from the sale of goods, ₦1,200,000; (vii) Cash paid to the bank, ₦500,000; (viii) Cash received from the bank, ₦600,000. Prepare the rent account for the year ended December 31, 2018.
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 14
A company's manufacturing account shows a loss of ₦50,000. Its trading account shows a profit of ₦150,000. Calculate the company's net profit.
A. ₦100,000
B. ₦100,000
C. ₦100,000
D. ₦100,000
Question 15
A company purchased a machine for ₦1,000,000 and depreciated it by 10% per annum using the straight-line method. Calculate the machine's value after 3 years.
A. ₦900,000
B. ₦800,000
C. ₦700,000
D. ₦600,000

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