POST UTME MADONNA UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME MADONNA UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Determine the correct accounting treatment for the following transaction: On January 1, 2018, XYZ Ltd. issued 10,000, 10% debentures of ₦100 each at a discount of 5%.
Correct A. ₦1,000,000 (face value) + ₦50,000 (discount)
B. ₦1,000,000 (face value) - ₦50,000 (discount)
C. ₦1,050,000 (face value + discount)
D. ₦950,000 (face value - discount)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company's trial balance shows an error of ₦5,000. The error is due to a mistake in the journal entry for the purchase of office equipment. The correct entry should have been debited to 'Office Equipment' and credited to 'Cash'.
Correct A. ₦5,000 (Office Equipment) - ₦5,000 (Cash)
B. ₦5,000 (Cash) - ₦5,000 (Office Equipment)
C. ₦10,000 (Office Equipment) - ₦10,000 (Cash)
D. ₦10,000 (Cash) - ₦10,000 (Office Equipment)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company's balance sheet shows an increase in non-current liabilities of ₦200,000. The increase is due to the issue of 20,000, 10% debentures of ₦10 each.
Correct A. ₦200,000
B. ₦400,000
C. ₦600,000
D. ₦800,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's income statement shows a net loss of ₦150,000. The loss is due to a decrease in revenue of ₦250,000 and an increase in expenses of ₦100,000.
Correct A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company's balance sheet shows an increase in current assets of ₦300,000. The increase is due to an increase in accounts receivable of ₦200,000 and an increase in inventory of ₦100,000.
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company's trial balance shows a debit balance of ₦15,000 in the 'Office Equipment' account. However, the company's accountant has informed you that the correct balance should be a credit of ₦5,000. What is the correct journal entry to rectify this error?
A. Debit Office Equipment ₦20,000, Credit Office Equipment ₦20,000
B. Debit Office Equipment ₦20,000, Credit Office Equipment ₦15,000
Correct C. Debit Office Equipment ₦15,000, Credit Office Equipment ₦20,000
D. Debit Office Equipment ₦20,000, Credit Office Equipment ₦5,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A company's bank statement shows a balance of ₦50,000, but the company's cash book shows a balance of ₦60,000. The bank statement also shows a deposit of ₦10,000 that is not recorded in the cash book. What is the correct bank reconciliation statement?
Correct A. ₦50,000 (Bank Statement) + ₦10,000 (Deposit) = ₦60,000 (Cash Book)
B. ₦50,000 (Bank Statement) - ₦10,000 (Deposit) = ₦40,000 (Cash Book)
C. ₦60,000 (Cash Book) - ₦10,000 (Deposit) = ₦50,000 (Bank Statement)
D. ₦60,000 (Cash Book) + ₦10,000 (Deposit) = ₦70,000 (Bank Statement)

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A company produces two products, X and Y. The company's manufacturing account shows the following costs: Direct Materials ₦100,000, Direct Labor ₦150,000, and Factory Overhead ₦200,000. What is the total cost of production for product X?
A. ₦450,000
Correct B. ₦550,000
C. ₦650,000
D. ₦750,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a profit of ₦250,000. What is the company's net profit?
A. ₦200,000
B. ₦250,000
Correct C. ₦300,000
D. ₦350,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's balance sheet shows a depreciation expense of ₦50,000. The company's asset valuation shows a decrease in value of ₦20,000. What is the company's net depreciation?
A. ₦30,000
B. ₦40,000
C. ₦50,000
Correct D. ₦60,000

Correct Answer: D

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company's trading account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The balance on the capital account of the owner, who is the only shareholder, was ₦500,000. The balance on the drawing account was ₦200,000. The company's profit-sharing ratio is 3:2. Calculate the amount of profit to be distributed to the shareholder.
Correct A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A company's balance sheet as at 31st December 2022, showed the following: Equity Share Capital ₦1,000,000, Profit and Loss Account ₦500,000, and Reserves ₦200,000. The company's profit for the year ended 31st December 2022, was ₦1,500,000. Calculate the amount of dividend to be paid to the shareholders.
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's profit and loss account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022, showed the following: Equity Share Capital ₦1,000,000, Profit and Loss Account ₦500,000, and Reserves ₦200,000. Calculate the amount of dividend to be paid to the shareholders.
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's balance sheet as at 31st December 2022, showed the following: Equity Share Capital ₦1,000,000, Profit and Loss Account ₦500,000, and Reserves ₦200,000. The company's profit for the year ended 31st December 2022, was ₦1,500,000. Calculate the amount of dividend to be paid to the shareholders.
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's profit and loss account for the year ended 31st December 2022, showed a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022, showed the following: Equity Share Capital ₦1,000,000, Profit and Loss Account ₦500,000, and Reserves ₦200,000. Calculate the amount of dividend to be paid to the shareholders.
A. ₦1,000,000
B. ₦1,200,000
Correct C. ₦1,500,000
D. ₦2,000,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A company uses the single entry system of accounting. The following transactions were recorded during the year: Depreciation on machinery: ₦10,000 Salaries and wages: ₦50,000 Rent: ₦20,000 Purchases: ₦80,000 Sales: ₦120,000 What is the total amount of expenses recorded by the company?
A. ₦180,000
Correct B. ₦200,000
C. ₦220,000
D. ₦240,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company has the following trial balance: Debtors: ₦100,000 Creditors: ₦50,000 Capital: ₦200,000 Profit: ₦30,000 What is the total amount of assets recorded by the company?
A. ₦230,000
Correct B. ₦240,000
C. ₦250,000
D. ₦260,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company has the following transactions: Purchased a machine for ₦100,000 Sold a machine for ₦120,000 What is the gain or loss on the sale of the machine?
Correct A. ₦20,000
B. ₦10,000
C. ₦5,000
D. ₦0

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company has the following partnership accounts: X: ₦100,000 Y: ₦80,000 Z: ₦60,000 What is the total amount of capital invested by the partners?
A. ₦240,000
B. ₦260,000
Correct C. ₦280,000
D. ₦300,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company has the following depreciation schedule: Year 1: ₦10,000 Year 2: ₦20,000 Year 3: ₦30,000 What is the total amount of depreciation recorded by the company?
A. ₦60,000
B. ₦80,000
Correct C. ₦100,000
D. ₦120,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the opening inventory is ₦500,000. If the company purchases additional inventory during the period at a cost of ₦800,000, what is the total cost of goods available for sale?
A. ₦2,000,000
B. ₦1,500,000
Correct C. ₦2,300,000
D. ₦2,500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A company has the following transactions related to its manufacturing accounts: | Date | Description | Quantity | Unit Cost | Total Cost | | --- | --- | --- | --- | --- | | 1 | Purchase of raw materials | 100 | ₦10 | ₦1,000 | | 2 | Purchase of raw materials | 50 | ₦15 | ₦750 | | 3 | Purchase of raw materials | 200 | ₦12 | ₦2,400 | | 4 | Sale of finished goods | 150 | ₦20 | ₦3,000 | What is the total cost of goods sold?
A. ₦4,150
Correct B. ₦4,500
C. ₦5,000
D. ₦5,500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company issues 10,000 shares of ₦1 each at a premium of ₦5 per share. The company also issues 5,000 debentures of ₦100 each at a discount of ₦5 per debenture. What is the total amount received from the issue of shares and debentures?
A. ₦105,000
B. ₦110,000
Correct C. ₦115,000
D. ₦120,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company has the following bank reconciliation statement: | Date | Bank Balance | Cash Balance | Difference | | --- | --- | --- | --- | | 1 | ₦50,000 | ₦40,000 | ₦10,000 | | 2 | ₦60,000 | ₦50,000 | ₦10,000 | | 3 | ₦70,000 | ₦60,000 | ₦10,000 | What is the total difference between the bank balance and cash balance?
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has the following depreciation schedule: | Asset | Cost | Depreciation | Accumulated Depreciation | | --- | --- | --- | --- | | 1 | ₦100,000 | ₦20,000 | ₦10,000 | | 2 | ₦150,000 | ₦30,000 | ₦20,000 | | 3 | ₦200,000 | ₦40,000 | ₦30,000 | What is the total accumulated depreciation?
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support