POST UTME MADONNA UNIVERSITY 2018 Accounting | Objective

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Question 1
The following is a partial list of the accounts in the ledger of ABC Ltd. at December 31, 2018:
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 2
The following is a partial list of the accounts in the ledger of XYZ Ltd. at December 31, 2018:
A. ₦50,000
B. ₦60,000
C. ₦70,000
D. ₦80,000
Question 3
A company's assets are valued as follows: Machinery: ₦150,000 Land: ₦100,000 Building: ₦200,000 What is the total amount of liabilities of the company?
A. ₦450,000
B. ₦450,000
C. ₦450,000
D. ₦450,000
Question 4
A company's accounting records show the following transactions for the year ended December 31, 2018:
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 5
A company's profit and loss account for the year ended 31st December 2018 is as follows: Revenue: ₦1,500,000 Cost of Goods Sold: ₦1,200,000 Gross Profit: ₦300,000 Selling and Distribution Expenses: ₦120,000 Operating Profit: ₦180,000 Interest Received: ₦20,000 Interest Paid: ₦30,000 Profit Before Tax: ₦150,000 Tax: ₦30,000 Profit After Tax: ₦120,000 Calculate the company's net profit margin.
A. 8%
B. 10%
C. 12%
D. 15%
Question 6
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset cost ₦300,000?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 7
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 8
A company issued 5,000, 10% debentures of ₦100 each. The debentures are redeemable at the end of 5 years. Calculate the annual charge for interest on the debentures.
A. ₦50,000
B. ₦25,000
C. ₦12,500
D. ₦62,500
Question 9
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that the profits and losses will be shared in the ratio 3:2. If the partnership makes a profit of ₦150,000, how much will A receive?
A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦200,000
Question 10
A company's trial balance as at 31st December, 2018 is as follows: Debtors: ₦100,000 Creditors: ₦50,000 Capital: ₦200,000 Profit: ₦30,000 What is the total amount of liabilities of the company?
A. ₦280,000
B. ₦280,000
C. ₦280,000
D. ₦280,000
Question 11
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000
Question 12
The following is a partial list of the accounts in the ledger of DEF Ltd. at December 31, 2018:
A. ₦20,000
B. ₦25,000
C. ₦30,000
D. ₦35,000
Question 13
A company has a cash book that shows a balance of ₦500,000. However, the company's bank statement shows a balance of ₦600,000. What is the reason for the difference?
A. The company has a loan from the bank
B. The company has a deposit in the bank
C. The company has a cheque outstanding
D. The company has a credit note from the bank
Question 14
In a partnership account, what is the correct method of calculating the capital of a partner who has been absent for a year?
A. Capital is calculated as the average of the partner's capital for the previous year and the current year.
B. Capital is calculated as the partner's capital for the previous year minus any drawings made during the year.
C. Capital is calculated as the partner's capital for the previous year plus any profits made during the year.
D. Capital is calculated as the average of the partner's capital for the previous year and the current year, minus any drawings made during the year.
Question 15
A company uses the perpetual inventory system. If the company purchases 100 units of inventory at ₦50 each, and the previous inventory balance was 50 units at ₦40 each, what is the total value of the inventory?
A. ₦6,500
B. ₦7,000
C. ₦7,500
D. ₦8,000

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