POST UTME LEAD CITY UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system of accounting. The following transactions occurred during the month of January:
A. Debit Cash 1,000 and Credit Accounts Payable 1,000
B. Debit Accounts Payable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Sales 1,000
D. Debit Sales 1,000 and Credit Cash 1,000
Question 2
A manufacturing company has the following transactions: Purchased raw materials on credit ₦50,000; sold goods on credit ₦80,000; and purchased office equipment on cash ₦20,000. Prepare a journal entry for the above transactions.
A. Debit Raw Materials ₦50,000, Credit Office Equipment ₦20,000
B. Debit Office Equipment ₦20,000, Credit Raw Materials ₦50,000
C. Debit Raw Materials ₦50,000, Credit Sales ₦80,000
D. Debit Sales ₦80,000, Credit Raw Materials ₦50,000
Question 3
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦475,000
B. ₦480,000
C. ₦485,000
D. ₦490,000
Question 4
A company's bank statement shows the following balance:
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 5
A trial balance for XYZ Ltd. is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 | Identify the error in the trial balance.
A. Cash account has a debit balance of ₦5,000.
B. Accounts Payable account has a credit balance of ₦5,000.
C. Sales account has a debit balance of ₦5,000.
D. Net Income account has a credit balance of ₦5,000.
Question 6
A company's assets are valued at ₦1,500,000. The company's liabilities are ₦800,000. What is the company's equity?
A. ₦700,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000
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, what is the share of profit of partner A?
A. ₦90,000
B. ₦60,000
C. ₦72,000
D. ₦84,000
Question 8
A company issues 10,000, 10% 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
D. ₦1,050,000
Question 9
A company's assets are valued at ₦1,800,000. The company's liabilities are ₦1,000,000. What is the company's equity?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000
Question 10
A company has the following transactions during the year: Purchased raw materials worth ₦100,000 on credit. Sold goods worth ₦150,000 for cash. Purchased machinery worth ₦50,000 on credit. Sold goods worth ₦80,000 on credit. Paid cash of ₦20,000 to a creditor. Prepare the cash book and bank reconciliation statement.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 11
A company's bank statement shows the following balance:
A. ₦12,000
B. ₦15,000
C. ₦18,000
D. ₦20,000
Question 12
A company's assets are valued at ₦2,000,000. The company's liabilities are ₦1,200,000. What is the company's equity?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000
Question 13
A company issues 10,000, 5% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest payable on the debentures for the first year.
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 14
A company issued 10,000, 10% debentures of ₦100 each at a premium of 5%. Calculate the amount received from the debenture holders.
A. ₦1,050,000
B. ₦1,000,000
C. ₦950,000
D. ₦900,000
Question 15
A company has the following ledger balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 | Prepare a trial balance.
A. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 |
B. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦45,000 | ₦50,000 |
C. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦50,000 | ₦45,000 |
D. | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦5,000 | | Accounts Payable | ₦20,000 | ₦15,000 | | Sales | ₦30,000 | ₦25,000 | | Cost of Goods Sold | ₦40,000 | ₦35,000 | | Net Income | ₦45,000 | ₦50,000 |

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