POST UTME LEAD CITY UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issues 1,000 shares of ₦10 each at a premium of ₦2 per share. What is the total amount of cash received from the issue of shares?
A. ₦12,000
B. ₦14,000
C. ₦16,000
D. ₦18,000
Question 2
A company produces two products, X and Y, using two machines, A and B. Machine A produces 60 units of X and 40 units of Y per hour, while machine B produces 40 units of X and 60 units of Y per hour. If the company operates for 8 hours a day, what is the total number of units of X and Y produced per day?
A. 960 units of X and 640 units of Y
B. 800 units of X and 800 units of Y
C. 960 units of X and 960 units of Y
D. 800 units of X and 640 units of Y
Question 3
A company uses the cash book to record all its cash transactions. The cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The bank charges a service fee of ₦5,000 and the company has an outstanding cheque of ₦20,000. What is the correct balance in the cash book?
A. ₦135,000
B. ₦145,000
C. ₦155,000
D. ₦165,000
Question 4
A company uses the straight-line method of depreciation. The cost of a machine is ₦150,000 and its useful life is 5 years. If the machine is sold after 3 years, what is the amount of depreciation that should be recorded in the 3rd year?
A. ₦30,000
B. ₦45,000
C. ₦60,000
D. ₦75,000
Question 5
A company's balance sheet shows an asset of ₦100,000 that is recorded at its cost of ₦80,000. What is the amount of accumulated depreciation that should be recorded?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 6
A company uses the control account system to prepare its financial statements. The company has a cash account balance of ₦200,000 and a bank overdraft of ₦50,000. What is the total amount of assets?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 7
A company has a self-balancing ledger with a balance of ₦1,000,000. If the company purchases goods worth ₦500,000 and sells goods worth ₦700,000, what is the new balance of the self-balancing ledger?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 8
A company's balance sheet as at 31st December 2022 is as follows: Equity: ₦1,500,000; Liabilities: ₦1,200,000. Calculate the company's net worth.
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 9
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. After one year, the profit is shared in the ratio 3:2. If the total profit is ₦200,000, how much does A receive?
A. ₦120,000
B. ₦150,000
C. ₦180,000
D. ₦200,000
Question 10
A company's trial balance shows an error of ₦15,000 in the debit side of the accounts payable account. The error was caused by a clerk who forgot to record a payment of ₦15,000 made to a supplier. What is the correct journal entry to rectify this error?
A. Debit Accounts Payable ₦15,000, Credit Cash ₦15,000
B. Debit Cash ₦15,000, Credit Accounts Payable ₦15,000
C. Debit Accounts Payable ₦15,000, Credit Bank ₦15,000
D. Debit Bank ₦15,000, Credit Accounts Payable ₦15,000
Question 11
A company's trading account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the gross profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 12
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the company's net profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 13
A partnership is dissolved when one partner withdraws from the partnership. What is the accounting treatment for the withdrawing partner's share of the partnership's assets and liabilities?
A. The withdrawing partner's share is distributed to the remaining partners.
B. The withdrawing partner's share is transferred to the partnership's capital account.
C. The withdrawing partner's share is written off as a loss.
D. The withdrawing partner's share is distributed to the withdrawing partner's estate.
Question 14
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the company's net profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 15
A company's profit and loss account for the year ended 31st December 2022 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦50,000; Returns Inwards: ₦20,000. Calculate the company's net profit for the year.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000

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