POST UTME LAUTECH 2025 Accounting | Objective

Are you preparing for POST UTME LAUTECH exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the carrying value of the debentures.
Correct A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000

Correct Answer: A

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Question 2
A partnership is formed between two partners, A and B, with a capital of ₦200,000 and ₦300,000 respectively. The profit-sharing ratio is 3:2. If the profit for the year is ₦120,000, calculate the amount of profit to be shared by each partner.
A. ₦90,000
Correct B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: B

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Question 3
A company purchases a machine for ₦500,000 and immediately sells it for ₦600,000. The company also incurs a selling commission of ₦20,000. Calculate the profit made on the sale of the machine.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 4
A company issues 5,000, 12% preference shares of ₦50 each at a premium of ₦10 per share. Calculate the amount received from shareholders and the carrying value of the preference shares.
A. ₦250,000
B. ₦275,000
Correct C. ₦300,000
D. ₦325,000

Correct Answer: C

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Question 5
A company purchases a machine for ₦800,000 and immediately sells it for ₦700,000. The company also incurs a selling commission of ₦30,000. Calculate the loss made on the sale of the machine.
A. ₦50,000
B. ₦60,000
Correct C. ₦70,000
D. ₦80,000

Correct Answer: C

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Question 6
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records show that it has paid ₦20,000 in rent and rates for the year. What is the correct journal entry to record the error?
A. Debit Rent and Rates ₦5,000, Credit Cash ₦5,000
B. Debit Rent and Rates ₦15,000, Credit Cash ₦15,000
C. Debit Rent and Rates ₦20,000, Credit Cash ₦20,000
Correct D. Debit Rent and Rates ₦5,000, Credit Profit and Loss ₦5,000

Correct Answer: D

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Question 7
A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department has a production cost of ₦100,000 and the Assembly department has a production cost of ₦150,000. What is the total production cost of the company?
Correct A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 8
A partnership has two partners: A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. The partnership's profit for the year is ₦120,000. What is partner A's share of the profit?
Correct A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000

Correct Answer: A

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Question 9
A company has the following ledger balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000. What is the company's total equity?
Correct A. ₦170,000
B. ₦150,000
C. ₦120,000
D. ₦100,000

Correct Answer: A

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Question 10
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records show that it has paid ₦20,000 in rent and rates for the year. What is the correct journal entry to record the error?
A. Debit Rent and Rates ₦5,000, Credit Cash ₦5,000
B. Debit Rent and Rates ₦15,000, Credit Cash ₦15,000
C. Debit Rent and Rates ₦20,000, Credit Cash ₦20,000
Correct D. Debit Rent and Rates ₦5,000, Credit Profit and Loss ₦5,000

Correct Answer: D

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Question 11
A company's cash book shows a debit balance of ₦15,000. However, the company's bank statement shows a credit balance of ₦20,000. What is the correct explanation for this discrepancy?
Correct A. The company has an outstanding cheque that has not been presented for payment.
B. The company has made a mistake in recording a debit transaction as a credit.
C. The company has an unrecorded credit transaction.
D. The company's bank has made an error in recording the company's transactions.

Correct Answer: A

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Question 12
A partnership has two partners, A and B. The partnership agreement states that profits will be shared in the ratio 3:2. If the total profit for the year is ₦120,000, how much will partner A receive?
A. ₦60,000
Correct B. ₦72,000
C. ₦80,000
D. ₦90,000

Correct Answer: B

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Question 13
A company's cash book shows the following transactions: Date | Debit | Credit -----|-------|------- 1/1 | ₦10,000 | ₦5,000 8/1 | ₦8,000 | ₦4,000 15/1 | ₦12,000 | ₦6,000 What is the total amount of cash debited in the cash book?
A. ₦30,000
B. ₦32,000
Correct C. ₦34,000
D. ₦36,000

Correct Answer: C

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Question 14
A government agency has the following transactions: Date | Debit | Credit -----|-------|------- 1/1 | ₦50,000 | ₦20,000 8/1 | ₦30,000 | ₦15,000 15/1 | ₦40,000 | ₦18,000 What is the total amount of cash credited in the cash book?
A. ₦53,000
B. ₦55,000
Correct C. ₦57,000
D. ₦59,000

Correct Answer: C

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Question 15
A manufacturing company has the following transactions: Date | Debit | Credit -----|-------|------- 1/1 | ₦100,000 | ₦50,000 8/1 | ₦80,000 | ₦40,000 15/1 | ₦120,000 | ₦60,000 What is the total amount of materials purchased?
A. ₦200,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 16
A company uses the percentage of completion method to value its construction contracts. At the end of the current year, the company has completed 75% of a contract that was awarded at the beginning of the year. The contract price is ₦1,500,000, and the company has incurred costs of ₦1,125,000. Calculate the profit recognized for the year.
A. ₦562,500
B. ₦625,000
Correct C. ₦687,500
D. ₦750,000

Correct Answer: C

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Question 17
SHARED STIMULUS
The organization's revenue includes ₦900,000 from grants, ₦300,000 from sales of goods, and ₦300,000 from services rendered.
A public sector organization has the following transactions for the year ended December 31, 2024:
A. ₦1,200,000
Correct B. ₦1,500,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: B

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Question 18
A company uses the straight-line method to depreciate its assets. The asset's cost is ₦1,200,000, and its useful life is 10 years. Calculate the annual depreciation charge.
Correct A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000

Correct Answer: A

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Question 19
SHARED STIMULUS
The partnership's capital accounts are as follows: John ₦300,000, Jane ₦200,000, and Bob ₦100,000.
A partnership has the following capital accounts:
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 20
A company uses the percentage of completion method to value its construction contracts. At the end of the current year, the company has completed 80% of a contract that was awarded at the beginning of the year. The contract price is ₦2,000,000, and the company has incurred costs of ₦1,600,000. Calculate the profit recognized for the year.
A. ₦640,000
B. ₦720,000
Correct C. ₦800,000
D. ₦880,000

Correct Answer: C

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Question 21
A company's cash book shows a credit balance of ₦25,000 in the cash account. However, the bank statement shows a debit balance of ₦15,000. What is the reason for the discrepancy?
A. The company has not deposited the cash into the bank.
Correct B. The bank has not credited the company's account for the cash deposited.
C. The company has not recorded the cash deposited into the bank.
D. The bank has charged the company's account for bank charges.

Correct Answer: B

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Question 22
A manufacturing company uses the process costing method to value its products. The company has two departments: Cutting and Assembly. The Cutting department has a production cost of ₦100,000 and the Assembly department has a production cost of ₦150,000. What is the total production cost of the product?
Correct A. ₦250,000
B. ₦200,000
C. ₦150,000
D. ₦100,000

Correct Answer: A

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Question 23
A company's assets are valued at ₦1,000,000. The company depreciates its assets by 10% per annum. What is the value of the assets after 2 years?
A. ₦900,000
B. ₦800,000
Correct C. ₦720,000
D. ₦600,000

Correct Answer: C

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Question 24
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 25
A company has a trial balance that shows a debit balance of ₦50,000 in the accounts payable account. However, the ledger accounts show a credit balance of ₦20,000 in the accounts payable account. What is the reason for the discrepancy?
Correct A. The company has not recorded the accounts payable account.
B. The company has not recorded the accounts receivable account.
C. The company has not recorded the cash account.
D. The company has not recorded the bank account.

Correct Answer: A

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