POST UTME LEAD CITY UNIVERSITY 2024 Accounting | Objective

Are you preparing for POST UTME LEAD CITY UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A partnership is dissolved when a partner dies. What is the accounting treatment for the deceased partner's share of the profits?
Correct A. ₦1250
B. ₦2500
C. ₦5000
D. ₦10000

Correct Answer: A

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Question 2
A company uses the straight-line method of depreciation. If the asset's cost is ₦10000 and its residual value is ₦2000, what is the annual depreciation charge?
A. ₦4000
Correct B. ₦5000
C. ₦6000
D. ₦7000

Correct Answer: B

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Question 3
A public sector organization uses the accrual basis of accounting. What is the accounting treatment for the following transaction: 'Received ₦10000 from the government for services rendered'?
Correct A. ₦10000
B. ₦5000
C. ₦2000
D. ₦0

Correct Answer: A

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Question 4
A company uses the self-balancing ledger system. What is the accounting treatment for the following transaction: 'Purchased goods for ₦5000 on credit from a supplier'?
Correct A. ₦5000
B. ₦10000
C. ₦20000
D. ₦50000

Correct Answer: A

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Question 5
A partnership is dissolved when a partner withdraws from the business. What is the accounting treatment for the withdrawing partner's share of the profits?
Correct A. ₦1250
B. ₦2500
C. ₦5000
D. ₦10000

Correct Answer: A

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Question 6
A company produces two products, X and Y. Product X has a variable cost of ₦100 per unit and a fixed cost of ₦50,000. Product Y has a variable cost of ₦80 per unit and a fixed cost of ₦30,000. If the selling price of product X is ₦150 per unit and the selling price of product Y is ₦120 per unit, and the company produces 200 units of product X and 300 units of product Y, what is the total profit?
A. ₦150,000
Correct B. ₦180,000
C. ₦200,000
D. ₦220,000

Correct Answer: B

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Question 7
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 10,000 | | | 2 | Bank | | 8,000 | | 3 | Cash | | 4,000 | | 4 | Bank | | 6,000 | | 5 | Cash | | 2,000 | What is the balance in the cash book?
Correct A. ₦6,000
B. ₦8,000
C. ₦10,000
D. ₦12,000

Correct Answer: A

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Question 8
A company's trial balance shows the following balances: | Account | Debit | Credit | | --- | --- | --- | | Sales | | 100,000 | | Purchases | 80,000 | | | Wages | | 20,000 | | Rent | 10,000 | | | Profit | | | What is the amount of profit?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 9
A company's balance sheet shows the following balances: | Asset | Liability | Equity | | --- | --- | --- | | Cash | | 10,000 | | Bank | | 20,000 | | Stock | | 30,000 | | Debtors | | 40,000 | | Creditors | 10,000 | | | Capital | | 50,000 | What is the amount of capital?
Correct A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: A

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Question 10
A company's ledger shows the following transactions: | Date | Account | Debit | Credit | | --- | --- | --- | --- | | 1 | Cash | 10,000 | | | 2 | Bank | | 8,000 | | 3 | Cash | | 4,000 | | 4 | Bank | | 6,000 | | 5 | Cash | | 2,000 | What is the balance in the cash account?
Correct A. ₦6,000
B. ₦8,000
C. ₦10,000
D. ₦12,000

Correct Answer: A

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Question 11
In a public sector accounting system, what is the primary purpose of the 'Chart of Accounts'?
Correct A. To record and classify all financial transactions
B. To prepare the annual budget
C. To monitor and control government expenditures
D. To prepare financial statements

Correct Answer: A

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Question 12
A company issues 1,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the debenture holders.
A. ₦95,000
Correct B. ₦95,500
C. ₦96,000
D. ₦96,500

Correct Answer: B

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Question 13
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, how much will A receive?
A. ₦90,000
Correct B. ₦90,750
C. ₦91,000
D. ₦91,500

Correct Answer: B

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Question 14
A company has a self-balancing ledger with the following accounts: Cash, Bank, Accounts Payable, and Common Stock. If the Cash account has a debit balance of ₦50,000 and the Bank account has a credit balance of ₦30,000, what is the net effect on the ledger?
Correct A. The ledger will be in balance
B. The ledger will have a debit balance of ₦20,000
C. The ledger will have a credit balance of ₦20,000
D. The ledger will have a debit balance of ₦20,000

Correct Answer: A

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Question 15
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the share issue.
A. ₦105,000
B. ₦110,000
Correct C. ₦115,000
D. ₦120,000

Correct Answer: C

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Question 16
A company has a cash book balance of ₦250,000 and a bank statement balance of ₦300,000. The bank statement shows a credit balance of ₦20,000 for an outstanding cheque. The cash book shows a debit balance of ₦10,000 for an uncleared cheque. What is the correct balance of the company's cash account?
A. ₦270,000
B. ₦280,000
C. ₦290,000
Correct D. ₦300,000

Correct Answer: D

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Question 17
A manufacturing company produces two products, X and Y. Product X requires 2 hours of direct labour and 1 hour of indirect labour, while product Y requires 1 hour of direct labour and 2 hours of indirect labour. If the company works 160 hours of direct labour and 240 hours of indirect labour, how many units of product X and product Y should the company produce?
A. 10 units of X and 20 units of Y
Correct B. 20 units of X and 10 units of Y
C. 15 units of X and 25 units of Y
D. 25 units of X and 15 units of Y

Correct Answer: B

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Question 18
A company has the following balances in its ledger accounts: Cash ₦100,000, Accounts Payable ₦50,000, Common Stock ₦200,000, and Retained Earnings ₦150,000. What is the company's total equity?
A. ₦450,000
B. ₦500,000
Correct C. ₦550,000
D. ₦600,000

Correct Answer: C

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Question 19
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a net income of ₦120,000, how much will partner A receive as their share of the net income?
Correct A. ₦72,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 20
A government agency has the following transactions: Revenue ₦500,000, Expenditure ₦400,000, and a transfer of ₦100,000 to a special fund. What is the agency's net surplus?
A. ₦100,000
Correct B. ₦200,000
C. ₦300,000
D. ₦400,000

Correct Answer: B

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Question 21
A public sector organization has a cash book balance of ₦1,500,000 and a bank statement balance of ₦1,800,000. The bank statement includes a credit of ₦200,000 for a loan received from the government. The cash book, however, shows a debit of ₦150,000 for a loan repaid to the government. What is the correct balance of the cash book after reconciliation?
A. ₦1,350,000
B. ₦1,450,000
Correct C. ₦1,550,000
D. ₦1,650,000

Correct Answer: C

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Question 22
A company uses the perpetual inventory system. The cost of goods sold for the month of January is ₦1,200,000. The beginning inventory is ₦800,000, and the ending inventory is ₦600,000. What is the cost of goods available for sale for the month of January?
A. ₦1,400,000
Correct B. ₦1,600,000
C. ₦1,800,000
D. ₦2,000,000

Correct Answer: B

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Question 23
A manufacturing company has the following data: direct materials used ₦1,000,000, direct labor cost ₦800,000, and overheads ₦600,000. What is the total cost of production?
A. ₦2,400,000
B. ₦2,600,000
Correct C. ₦2,800,000
D. ₦3,000,000

Correct Answer: C

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Question 24
A company has the following trial balance: Sales ₦1,500,000, Cost of Goods Sold ₦1,000,000, and Net Income ₦500,000. What is the correct balance of the retained earnings account?
Correct A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

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Question 25
A company uses the single-entry system. The following transactions were recorded: Cash received from customers ₦1,000,000, Cash paid to suppliers ₦800,000, and Cash paid to employees ₦600,000. What is the net cash inflow for the period?
A. ₦200,000
Correct B. ₦400,000
C. ₦600,000
D. ₦800,000

Correct Answer: B

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