POST UTME MOUNTAIN TOP UNIVERSITY 2023 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
Question 2
A company's balance sheet shows the following balances: Cash ₦100,000, Accounts Payable ₦200,000, Common Stock ₦100,000, and Retained Earnings ₦50,000. Prepare the company's income statement.
A. ₦50,000 in Net Income
B. ₦100,000 in Net Income
C. ₦150,000 in Net Income
D. ₦200,000 in Net Income
Question 3
A company issues 10,000, 9% 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. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 4
A company's cash book shows a balance of ₦120,000. The company's bank statement shows a balance of ₦150,000. Calculate the difference between the two balances.
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 5
A partnership is formed between two individuals, A and B, with a capital of ₦1,000,000 each. The profit-sharing ratio is 3:2. The partnership earns a profit of ₦500,000. Prepare the profit-sharing statement.
A. ₦300,000 to A and ₦200,000 to B
B. ₦250,000 to A and ₦250,000 to B
C. ₦350,000 to A and ₦150,000 to B
D. ₦400,000 to A and ₦100,000 to B
Question 6
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000. The beginning inventory is ₦300,000. The purchases during the period are ₦900,000. The total cost of goods available for sale is ₦1,500,000. The company uses a perpetual inventory system. What is the cost of goods sold?
A. ₦900,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000
Question 7
A company uses the FIFO method to value its inventory. The cost of goods available for sale is ₦1,500,000. The beginning inventory is ₦300,000. The purchases during the period are ₦900,000. The total cost of goods available for sale is ₦1,500,000. The company uses a perpetual inventory system. What is the cost of goods sold?
A. ₦900,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000
Question 8
A company issued 5-year debentures of ₦10,000 each at 10% interest. If the debentures are redeemed at the end of the 5th year, what is the total amount paid to the debenture holders?
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 9
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000. The beginning inventory is ₦300,000. The purchases during the period are ₦900,000. The total cost of goods available for sale is ₦1,500,000. The company uses a perpetual inventory system. What is the cost of goods sold?
A. ₦900,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦1,800,000
Question 10
A company's ledger shows a debit balance of ₦20,000 in the account 'Salaries' and a credit balance of ₦15,000 in the account 'Wages'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Salaries and ₦5,000 credit to Wages
B. ₦5,000 debit to Wages and ₦5,000 credit to Salaries
C. ₦5,000 debit to Salaries and ₦5,000 credit to Rent Paid
D. ₦5,000 debit to Rent Paid and ₦5,000 credit to Salaries
Question 11
A company's balance sheet as at 31st December 2022 is as follows: Share capital: ₦700,000; Reserves: ₦500,000; Debtors: ₦300,000; Creditors: ₦250,000. Calculate the total assets of the company.
A. ₦1,800,000
B. ₦1,850,000
C. ₦1,900,000
D. ₦1,950,000
Question 12
A company's ledger shows a debit balance of ₦40,000 in the account 'Rent Paid' and a credit balance of ₦35,000 in the account 'Rent Received'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
B. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
C. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received
D. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
Question 13
A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If an asset cost ₦100,000 and has a residual value of ₦20,000, what is the annual depreciation charge?
A. ₦8,000
B. ₦10,000
C. ₦12,000
D. ₦14,000
Question 14
A company's income statement shows the following balances: Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000, and Net Income ₦150,000. Prepare the company's balance sheet.
A. ₦200,000 in Accounts Payable and ₦300,000 in Sales Revenue
B. ₦500,000 in Sales Revenue and ₦300,000 in Cost of Goods Sold
C. ₦200,000 in Accounts Payable and ₦500,000 in Sales Revenue
D. ₦100,000 in Common Stock and ₦300,000 in Cost of Goods Sold
Question 15
A bank statement shows a balance of ₦50,000, but the cash book balance is ₦60,000. The bank statement shows a debit of ₦10,000 for 'Bank Charges' and a credit of ₦20,000 for 'Interest Received'. What is the correct bank reconciliation statement?
A. ₦10,000 debit to Bank Charges and ₦20,000 credit to Interest Received
B. ₦10,000 credit to Bank Charges and ₦20,000 debit to Interest Received
C. ₦30,000 debit to Bank Charges and ₦30,000 credit to Interest Received
D. ₦30,000 credit to Bank Charges and ₦30,000 debit to Interest Received

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