POST UTME MADONNA UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's departmental accounts for the year ended 31st December 2021 showed a total of ₦20,000,000 in sales and a total of ₦15,000,000 in expenses. Calculate the company's net profit for the year ended 31st December 2021.
A. ₦5,000,000
B. ₦10,000,000
C. ₦15,000,000
D. ₦20,000,000
Question 2
A company's profit and loss account shows a profit of £ 20,000. The company's balance sheet shows a retained profit of £ 15,000. What is the accounting treatment for the remaining profit?
A. The remaining profit is distributed as dividends
B. The remaining profit is retained in the company
C. The remaining profit is transferred to the general reserve
D. The remaining profit is transferred to the revaluation reserve
Question 3
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 200 | | 4th Jan | Bank | | 300 | What is the total amount of cash transactions?
A. ₦1,200
B. ₦1,400
C. ₦1,600
D. ₦1,800
Question 4
A company's trial balance shows an error of £ 2,000 due to an incorrect posting of a £ 4,000 credit to the accounts payable account. The correct entry should have been a £ 2,000 credit. What is the correct journal entry to rectify this error?
A. Accounts Payable £ 2,000, Capital £ 2,000
B. Accounts Payable £ 4,000, Capital £ 2,000
C. Accounts Payable £ 2,000, Capital £ 4,000
D. Accounts Payable £ 4,000, Capital £ 4,000
Question 5
A company uses the straight-line method of depreciation. The cost of a machine is ₦500,000, and its residual value is ₦50,000. The machine is expected to be used for 5 years. Calculate the annual depreciation charge.
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 6
A company's trading account for the year ended 31st December 2021 showed a profit of ₦1,500,000. The company's profit and loss account for the year ended 31st December 2021 showed a net profit of ₦2,500,000. Calculate the company's net profit for the year ended 31st December 2021.
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 7
A government agency has the following transactions for the year ended December 31, 2020: 1. Received ₦500,000 from the government as a grant. 2. Paid ₦200,000 to an employee as salary. 3. Paid ₦150,000 to a supplier for goods purchased. 4. Received ₦100,000 from a customer as payment for services rendered. Prepare the government agency's cash flow statement for the year ended December 31, 2020.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 8
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 200 | | 4th Jan | Bank | | 300 | What is the balance of the bank account?
A. ₦1,800
B. ₦2,000
C. ₦2,200
D. ₦2,300
Question 9
A company's balance sheet as at 31st December 2020 is as follows: | Assets | | Liabilities | | Equity | | --- | --- | --- | --- | --- | | | ₦ 100,000 | | ₦ 50,000 | | ₦ 20,000 | | | ₦ 150,000 | | ₦ 70,000 | | ₦ 30,000 | What is the total amount of liabilities?
A. ₦120,000
B. ₦130,000
C. ₦140,000
D. ₦150,000
Question 10
A company's balance sheet shows an asset of £ 15,000 with a carrying value of £ 12,000. The asset is expected to be sold for £ 18,000. What is the accounting treatment for this asset?
A. The asset is written down to £ 12,000
B. The asset is written up to £ 18,000
C. The asset is sold for £ 18,000 and the profit is recognized
D. The asset is written off as a loss
Question 11
A company's cash book shows a balance of ₦100,000. The bank statement shows a balance of ₦120,000. What is the difference between the two balances?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 12
A partnership was formed on January 1, 2020, with an initial capital of ₦500,000. The partners' capital contributions were as follows: A ₦200,000, B ₦150,000, and C ₦150,000. The partnership's profit for the year ended December 31, 2020, was ₦250,000. The profit was divided in the ratio 2:3:5. Calculate the amount of profit that each partner should receive.
A. ₦50,000
B. ₦75,000
C. ₦125,000
D. ₦200,000
Question 13
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 14
A company's departmental account shows the following transactions: Debit: £ 1,000, £ 500, £ 200 Credit: £ 800, £ 300 Calculate the balance in the departmental account.
A. £ 1,200
B. £ 1,300
C. £ 1,400
D. £ 1,500
Question 15
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦12,500
B. ₦15,000
C. ₦20,000
D. ₦25,000

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