POST UTME NILE UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's self-balancing ledger shows a balance of ₦150,000. However, the company's trial balance shows a balance of ₦180,000. What is the reason for the discrepancy?
A. The company has made an error in its self-balancing ledger
B. The company has made an error in its trial balance
C. The company has made an error in its cash book
D. The company has made an error in its bank reconciliation statement
Question 2
A company's cash book shows the following transactions: Cash 1,000, Accounts Payable 2,000, and Common Stock 3,000. What is the net effect of these transactions on the company's cash balance?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 3
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 record the correction?
A. ₦20,000 debit to Office Equipment, ₦20,000 credit to Office Equipment
B. ₦20,000 debit to Office Equipment, ₦20,000 credit to Office Supplies
C. ₦20,000 credit to Office Equipment, ₦20,000 debit to Office Supplies
D. ₦20,000 credit to Office Equipment, ₦20,000 credit to Office Supplies
Question 4
A company's trading account shows a profit of ₦200,000. However, the company's profit and loss account shows a loss of ₦50,000. What is the reason for the discrepancy?
A. The company has made an error in its trading account
B. The company has made an error in its profit and loss account
C. The company has made an error in its balance sheet
D. The company has made an error in its cash book
Question 5
A company has the following information for its sales and purchases for the month of January: Sales: ₦500,000, Purchases: ₦300,000, Returns Outwards: ₦20,000, Returns Inwards: ₦10,000. What is the total value of sales and purchases for the month?
A. ₦800,000
B. ₦820,000
C. ₦840,000
D. ₦860,000
Question 6
A company's single entry system shows a total debit balance of ₦200,000. However, the company's trial balance shows a total debit balance of ₦250,000. What is the reason for the discrepancy?
A. The company has made an error in its single entry system
B. The company has made an error in its trial balance
C. The company has made an error in its cash book
D. The company has made an error in its bank reconciliation statement
Question 7
A company has the following transactions: Issued 10,000 shares at ₦10 per share; Purchased a new machine for ₦120,000. Prepare the journal entries for these transactions.
A. Debit Cash ₦100,000, Credit Share Capital ₦100,000
B. Debit Cash ₦100,000, Credit Share Capital ₦100,000; Debit Machine ₦120,000, Credit Cash ₦120,000
C. Debit Share Capital ₦100,000, Credit Cash ₦100,000
D. Debit Machine ₦120,000, Credit Cash ₦120,000
Question 8
A company's bank statement shows a balance of ₦50,000, but the company's cash book shows a balance of ₦60,000. What is the reason for the discrepancy?
A. The bank has charged a service fee of ₦10,000
B. The company has deposited ₦10,000 into the bank but has not yet been credited
C. The company has withdrawn ₦10,000 from the bank but has not yet been debited
D. The bank has made an error in its records
Question 9
A company uses the double-entry system to record its transactions. The company's trial balance shows the following balances: Accounts Payable 10,000, Accounts Receivable 5,000, Common Stock 20,000, and Retained Earnings 15,000. What is the total amount of the company's assets?
A. ₦35,000
B. ₦40,000
C. ₦45,000
D. ₦50,000
Question 10
A company's balance sheet shows a total asset value of ₦500,000. However, the company's profit and loss account shows a profit of ₦100,000. What is the reason for the discrepancy?
A. The company has made an error in its balance sheet
B. The company has made an error in its profit and loss account
C. The company has made an error in its trading account
D. The company has made an error in its cash book
Question 11
Determine the amount of cash that should be debited to the 'Cash' account when a company purchases a new machine for ₦120,000, paying ₦80,000 in cash and the balance by a 3-year loan.
A. ₦40,000
B. ₦60,000
C. ₦80,000
D. ₦100,000
Question 12
A company's income statement for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000; Cost of Goods Sold: ₦900,000; Operating Expenses: ₦200,000. Calculate the net profit for the year.
A. ₦400,000
B. ₦400,500
C. ₦400,750
D. ₦401,000
Question 13
A company has the following bank statement: ₦1,500,000, ₦500,000, ₦200,000, and ₦300,000. Prepare the bank reconciliation statement.
A. Bank Reconciliation Statement Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Bank | | 1,500,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------
B. Bank Reconciliation Statement Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Bank | | 1,500,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------
C. Bank Reconciliation Statement Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Bank | | 1,500,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------
D. Bank Reconciliation Statement Date | Particulars | L.F. | Debit | Credit ----------------------------------------------- 01-01 | Bank | | 1,500,000 | 01-02 | Suppliers | | 500,000 | 01-03 | Employees | | 200,000 | 01-04 | Bank | | 300,000 | -----------------------------------------------
Question 14
A company's bank reconciliation statement shows the following discrepancies: Outstanding checks 1,000, Deposits in transit 2,000, and Bank errors 3,000. What is the net effect of these discrepancies on the company's cash balance?
A. ₦1,000
B. ₦2,000
C. ₦3,000
D. ₦4,000
Question 15
A company issues 10,000, 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦900,000
B. ₦950,000
C. ₦1,000,000
D. ₦1,050,000

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