POST UTME MADONNA UNIVERSITY 2025 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the FIFO method of inventory valuation. The beginning inventory is ₦100,000 and the cost of goods available for sale is ₦500,000. The ending inventory is ₦150,000. What is the cost of goods sold?
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦80,000 respectively. The profit and loss account shows a profit of ₦20,000. What is the new balance in A's capital account?
A. ₦120,000
B. ₦100,000
C. ₦80,000
D. ₦120,000
Question 3
A company uses the perpetual inventory system. The cost of goods sold for the year is ₦500,000. The beginning inventory is ₦100,000 and the ending inventory is ₦150,000. What is the value of net purchases for the year?
A. ₦450,000
B. ₦400,000
C. ₦500,000
D. ₦550,000
Question 4
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. What is the total amount of assets?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 5
A company purchased a machine for ₦1,500,000 and immediately sold it for ₦1,800,000. Calculate the profit made on the sale of the machine.
A. ₦300,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 6
A partnership has three partners: A, B, and C. The capital accounts of A, B, and C are ₦100,000, ₦80,000, and ₦60,000 respectively. If the profit is shared in the ratio 3:2:1, calculate the amount of profit to be distributed to each partner.
A. ₦24,000
B. ₦32,000
C. ₦40,000
D. ₦48,000
Question 7
A company uses the single entry system to record its transactions. The following transactions occurred during the year: Depreciation on machinery: ₦120,000 Depreciation on building: ₦150,000 Drawings: ₦80,000 Profit: ₦200,000 The company's capital at the beginning of the year was ₦500,000. Prepare the company's statement of affairs at the end of the year.
A. ₦1,250,000
B. ₦1,300,000
C. ₦1,350,000
D. ₦1,400,000
Question 8
A company has a capital of ₦500,000, consisting of 5,000 shares of ₦100 each. If the company issues 2,000 more shares of ₦100 each at a premium of ₦20 per share, what is the amount of the premium received?
A. ₦40,000
B. ₦80,000
C. ₦120,000
D. ₦160,000
Question 9
A company purchased a machine for ₦1,000,000 and immediately sold it for ₦1,200,000. Calculate the profit made on the sale of the machine.
A. ₦200,000
B. ₦150,000
C. ₦250,000
D. ₦300,000
Question 10
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦1,500,000?
A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000
Question 11
A company issued 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 12
A company has the following information: Depreciation Expense ₦10,000, Equipment ₦50,000, Accumulated Depreciation ₦20,000. Calculate the net book value of the equipment.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 13
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders and the amount of discount on the debentures.
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 14
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 15
A company has a capital of ₦1,500,000, consisting of 15,000 shares of ₦100 each. If the company issues 5,000 more shares of ₦100 each at a premium of ₦20 per share, what is the new capital of the company?
A. ₦2,500,000
B. ₦3,000,000
C. ₦3,500,000
D. ₦4,000,000

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: