Practice post utme lautech accounting 2022 Past Questions

Question 1

A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.

A. ₦4,750,000

B. ₦4,875,000

C. ₦4,950,000

Correct D. ₦5,000,000

Correct Answer: D

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Question 2

A company's capital structure consists of 60% equity and 40% debt. If the company's total capital is ₦1,000,000, calculate the amount of debt.

A. ₦400,000

Correct B. ₦500,000

C. ₦600,000

D. ₦800,000

Correct Answer: B

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Question 3

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare a balance sheet.

A. {\begin{tabular}{|l|l|} \hline \textbf{Assets} & \textbf{₦} \\hline \text{Cash} & 50,000 \\ \text{Accounts Payable} & 50,000 \\ \text{Total Assets} & 100,000 \\ \hline \end{tabular}}

B. {\begin{tabular}{|l|l|} \hline \textbf{Liabilities} & \textbf{₦} \\ \hline \text{Accounts Payable} & 50,000 \\ \text{Common Stock} & 100,000 \\ \text{Total Liabilities} & 150,000 \\ \hline \end{tabular}}

Correct C. {\begin{tabular}{|l|l|} \hline \textbf{Equity} & \textbf{₦} \\ \hline \text{Common Stock} & 100,000 \\ \text{Retained Earnings} & 50,000 \\ \text{Total Equity} & 150,000 \\ \hline \end{tabular}}

D. {\begin{tabular}{|l|l|} \hline \textbf{Assets} & \textbf{₦} \\ \hline \text{Cash} & 50,000 \\ \text{Accounts Payable} & 50,000 \\ \text{Total Assets} & 100,000 \\ \hline \end{tabular}}

Correct Answer: C

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Question 4

A company's balance sheet shows the following balances: Cash ₦50,000, Accounts Payable ₦50,000, Common Stock ₦100,000, and Retained Earnings ₦50,000. Prepare a statement of stockholders' equity.

Correct A. {\begin{tabular}{|l|l|} \hline \textbf{Common Stock} & \textbf{₦} \\ \hline \text{Common Stock} & 100,000 \\ \text{Retained Earnings} & 50,000 \\ \text{Total Stockholders' Equity} & 150,000 \\ \hline \end{tabular}}

B. {\begin{tabular}{|l|l|} \hline \textbf{Retained Earnings} & \textbf{₦} \\ \hline \text{Common Stock} & 100,000 \\ \text{Retained Earnings} & 50,000 \\ \text{Total Stockholders' Equity} & 150,000 \\ \hline \end{tabular}}

C. {\begin{tabular}{|l|l|} \hline \textbf{Common Stock} & \textbf{₦} \\ \hline \text{Common Stock} & 100,000 \\ \text{Cash} & 50,000 \\ \text{Total Stockholders' Equity} & 150,000 \\ \hline \end{tabular}}

D. {\begin{tabular}{|l|l|} \hline \textbf{Retained Earnings} & \textbf{₦} \\ \hline \text{Common Stock} & 100,000 \\ \text{Cash} & 50,000 \\ \text{Total Stockholders' Equity} & 150,000 \\ \hline \end{tabular}}

Correct Answer: A

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Question 5

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare a statement of cash flows.

A. {\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Operations} & \textbf{₦} \\ \hline \text{Net Income} & 50,000 \\ \text{Depreciation} & 50,000 \\ \text{Total Cash Flows from Operations} & 100,000 \\ \hline \end{tabular}}

B. {\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Investing} & \textbf{₦} \\ \hline \text{Purchase of Equipment} & 50,000 \\ \text{Sale of Equipment} & 50,000 \\ \text{Total Cash Flows from Investing} & 0 \\ \hline \end{tabular}}

C. {\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Financing} & \textbf{₦} \\ \hline \text{Issuance of Common Stock} & 100,000 \\ \text{Dividends Paid} & 50,000 \\ \text{Total Cash Flows from Financing} & 50,000 \\ \hline \end{tabular}}

D. {\begin{tabular}{|l|l|} \hline \textbf{Cash Flows from Operations} & \textbf{₦} \\ \hline \text{Net Income} & 50,000 \\ \text{Depreciation} & 50,000 \\ \text{Total Cash Flows from Operations} & 100,000 \\ \hline \end{tabular}}

Correct Answer: VIEW ANSWER

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Question 6

A company has two partners, A and B, who share profits in the ratio 3:2. The company's profit for the year is ₦120,000. If A's share of the profit is ₦36,000, what is the value of B's share?

A. ₦24,000

Correct B. ₦32,000

C. ₦40,000

D. ₦48,000

Correct Answer: B

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Question 7

A company uses the cash book to record its transactions. The cash book shows the following transactions:

A. ₦10,000

B. ₦20,000

Correct C. ₦30,000

D. ₦40,000

Correct Answer: C

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Question 8

A government agency uses the following accounting equation to record its transactions:

Correct A. Assets = Liabilities + Equity

B. Assets = Liabilities - Equity

C. Assets = Equity - Liabilities

D. Assets = Equity + Liabilities

Correct Answer: A

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Question 9

A company has a control account for its accounts payable. The control account shows a balance of ₦50,000. The ledger account for accounts payable shows a balance of ₦60,000. What is the correct balance for the control account?

A. ₦50,000

Correct B. ₦60,000

C. ₦70,000

D. ₦80,000

Correct Answer: B

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Question 10

A company uses the following self-balancing ledger to record its transactions:

A. ₦10,000

B. ₦20,000

Correct C. ₦30,000

D. ₦40,000

Correct Answer: C

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Question 11

A company's cash book shows a balance of ₦12,500. The bank statement shows a balance of ₦13,000. The cash book has a debit balance of ₦1,500. What is the correct amount of the bank reconciliation statement?

A. ₦1,500

Correct B. ₦2,000

C. ₦2,500

D. ₦3,000

Correct Answer: B

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Question 12

A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, while partner B has a 40% interest. If the partnership has a net profit of ₦120,000, how much will partner A receive as their share of the profit?

Correct A. ₦72,000

B. ₦80,000

C. ₦90,000

D. ₦100,000

Correct Answer: A

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Question 13

A company's trading account shows a profit of ₦150,000. The company's profit and loss account shows a net profit of ₦180,000. What is the correct amount of the company's balance sheet?

A. ₦330,000

B. ₦350,000

Correct C. ₦370,000

D. ₦390,000

Correct Answer: C

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Question 14

A company's cash book shows a balance of ₦20,000. The bank statement shows a balance of ₦22,000. The cash book has a credit balance of ₦2,000. What is the correct amount of the bank reconciliation statement?

A. ₦2,000

Correct B. ₦4,000

C. ₦6,000

D. ₦8,000

Correct Answer: B

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Question 15

A partnership has three partners, A, B, and C. Partner A has a 40% interest in the partnership, while partner B has a 30% interest and partner C has a 30% interest. If the partnership has a net profit of ₦180,000, how much will partner A receive as their share of the profit?

Correct A. ₦72,000

B. ₦80,000

C. ₦90,000

D. ₦100,000

Correct Answer: A

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Question 16

The partners in a firm share profits and losses in the ratio 3:2:1. If the total profit for the year is ₦120,000, calculate the amount of profit that will be shared by each partner.

A. ₦30,000

B. ₦40,000

Correct C. ₦60,000

D. ₦80,000

Correct Answer: C

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Question 17

A company has two departments, A and B. Department A has a production cost of ₦50,000 and a selling price of ₦75,000. Department B has a production cost of ₦30,000 and a selling price of ₦60,000. Calculate the contribution margin ratio for each department.

Correct A. Department A: 33.33%, Department B: 25%

B. Department A: 25%, Department B: 33.33%

C. Department A: 40%, Department B: 30%

D. Department A: 30%, Department B: 40%

Correct Answer: A

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Question 18

A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.

A. ₦50,000

B. ₦60,000

C. ₦70,000

Correct D. ₦80,000

Correct Answer: D

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Question 19

A company has a cash book balance of ₦50,000 and a bank statement balance of ₦60,000. The bank statement shows a credit balance of ₦10,000 for a customer who has since become insolvent. Calculate the corrected cash book balance.

Correct A. ₦40,000

B. ₦50,000

C. ₦60,000

D. ₦70,000

Correct Answer: A

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Question 20

A company issues 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.

A. ₦450,000

Correct B. ₦475,000

C. ₦500,000

D. ₦525,000

Correct Answer: B

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Question 21

Determine the amount of depreciation on a machine that cost ₦250,000 and has a useful life of 5 years, using the straight-line method. The machine is currently in its 3rd year of use.

Correct A. ₦12,500

B. ₦25,000

C. ₦37,500

D. ₦50,000

Correct Answer: A

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Question 22

A company's trial balance shows an error of ₦10,000 due to an omission of a transaction. Prepare the necessary journal entry to correct the error.

A. Debit Cash ₦10,000, Credit Profit and Loss Account ₦10,000

Correct B. Debit Profit and Loss Account ₦10,000, Credit Cash ₦10,000

C. Debit Profit and Loss Account ₦10,000, Credit Capital ₦10,000

D. Debit Capital ₦10,000, Credit Profit and Loss Account ₦10,000

Correct Answer: B

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Question 23

A company's cash book shows a balance of ₦50,000. The bank statement shows a balance of ₦60,000. The difference is due to an unrecorded deposit of ₦10,000. Prepare the necessary journal entry to reconcile the cash book and bank statement.

Correct A. Debit Cash ₦10,000, Credit Bank ₦10,000

B. Debit Bank ₦10,000, Credit Cash ₦10,000

C. Debit Cash ₦10,000, Credit Profit and Loss Account ₦10,000

D. Debit Profit and Loss Account ₦10,000, Credit Cash ₦10,000

Correct Answer: A

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Question 24

A company's manufacturing account shows a loss of ₦20,000. The company's trading account shows a profit of ₦30,000. Prepare the necessary journal entry to close the manufacturing account and transfer the loss to the profit and loss account.

Correct A. Debit Profit and Loss Account ₦20,000, Credit Manufacturing Account ₦20,000

B. Debit Manufacturing Account ₦20,000, Credit Profit and Loss Account ₦20,000

C. Debit Profit and Loss Account ₦20,000, Credit Capital ₦20,000

D. Debit Capital ₦20,000, Credit Profit and Loss Account ₦20,000

Correct Answer: A

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Question 25

A company's balance sheet shows an asset of ₦100,000. The company's profit and loss account shows a profit of ₦50,000. Calculate the company's return on investment (ROI) using the formula: ROI = (Profit / Total Assets) x 100.

A. 20%

Correct B. 25%

C. 30%

D. 35%

Correct Answer: B

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