POST UTME NILE UNIVERSITY 2024 Accounting | Objective

Are you preparing for POST UTME NILE UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2024 Accounting (Objective) questions designed to simulate the real exam environment.

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 eliminate this discrepancy?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦20,000 debit to Rent Paid and ₦15,000 credit to Rent Received
C. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
Correct D. ₦15,000 debit to Rent Received and ₦20,000 credit to Rent Paid

Correct Answer: D

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Question 2
A manufacturing company uses the weighted average method to value its inventory. The company has the following data for the current year: Cost of Goods Available for Sale = ₦1,000,000, Beginning Inventory = ₦200,000, and Purchases = ₦600,000. What is the cost of goods sold for the year?
Correct A. ₦550,000
B. ₦600,000
C. ₦650,000
D. ₦700,000

Correct Answer: A

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Question 3
A company's balance sheet shows a current ratio of 2:1. If the company's total current assets are ₦500,000 and its total current liabilities are ₦250,000, what is the company's quick ratio?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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Question 4
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦100,000 and its useful life is 5 years, what is the annual depreciation expense?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 5
A company's bank reconciliation statement shows a difference of ₦15,000 between the company's cash book balance and the bank statement balance. The company's cash book balance is ₦100,000, and the bank statement balance is ₦115,000. What is the reason for the difference?
A. Bank error
B. Company error
Correct C. NSF cheque
D. Interest on bank deposit

Correct Answer: C

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Question 6
Determine the amount of depreciation on a machine that cost ₦120,000, has a useful life of 5 years, and a residual value of ₦20,000. The machine is depreciated using the straight-line method.
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 7
A partnership has two partners, A and B. Partner A invests ₦100,000 and partner B invests ₦150,000. The profit-sharing ratio is 2:3. Calculate the profit-sharing ratio in terms of the total investment.
A. 1:1
Correct B. 2:3
C. 3:2
D. 4:5

Correct Answer: B

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Question 8
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 9
A company has a debt of ₦500,000 and issues 5-year debentures at 10% interest. Calculate the annual interest on the debentures.
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

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Question 10
A company has a balance sheet as follows: Assets ₦500,000, Liabilities ₦200,000, and Share Capital ₦150,000. Calculate the amount of retained earnings.
A. ₦50,000
B. ₦75,000
C. ₦100,000
Correct D. ₦125,000

Correct Answer: D

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Question 11
A company issues 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. ₦0,500
B. ₦1,000
Correct C. ₦1,050
D. ₦1,500

Correct Answer: C

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Question 12
A company's balance sheet shows an increase in its current assets by ₦0,000 and a decrease in its current liabilities by ₥0,000. What is the net increase in working capital?
A. ₥0,000
Correct B. ₦0,000
C. ₧0,000
D. ₨0,000

Correct Answer: B

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Question 13
A company purchases a machine for ₦0,000 and depreciates it by 10% per annum. What is the value of the machine after 3 years?
A. ₥0,000
B. ₥1,000
Correct C. ₥2,000
D. ₥3,000

Correct Answer: C

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Question 14
A company issues 5,000 debentures of ₡00 each at a premium of ₥ per debenture. Calculate the total amount received from the issue of debentures.
A. ₥0,000
Correct B. ₥0,500
C. ₥1,000
D. ₥1,500

Correct Answer: B

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Question 15
A company's trial balance shows an error of ₡,000 in the balance of the accounts payable account. What is the effect of this error on the company's net income?
A. Increase by ₡,000
Correct B. Decrease by ₡,000
C. No effect
D. Increase by ₢,000

Correct Answer: B

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Question 16
A company purchased a machine for ₦1,500,000. Depreciation is calculated using the straight-line method. If the machine is expected to last for 5 years, calculate the annual depreciation charge.
Correct A. ₦300,000
B. ₦150,000
C. ₦75,000
D. ₦30,000

Correct Answer: A

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Question 17
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
Correct A. ₦150,000
B. ₦100,000
C. ₦50,000
D. ₦25,000

Correct Answer: A

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Question 18
A company's trial balance showed an error of ₦5,000 in the debit side of the purchases account. The correct amount of purchases was ₦200,000. Calculate the correct amount of purchases.
Correct A. ₦205,000
B. ₦200,000
C. ₦195,000
D. ₦190,000

Correct Answer: A

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Question 19
A company's bank statement showed a balance of ₦50,000. The company's cash book showed a balance of ₦60,000. The bank statement included a debit of ₦10,000 for a bank charge. Calculate the correct balance of the company's cash book.
Correct A. ₦70,000
B. ₦60,000
C. ₦50,000
D. ₦40,000

Correct Answer: A

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Question 20
A company issued 5,000 debentures of ₦100 each at a premium of ₦20 per debenture. Calculate the total amount received from the issue of debentures.
Correct A. ₦500,000
B. ₦450,000
C. ₦400,000
D. ₦350,000

Correct Answer: A

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Question 21
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Received' account. However, the company's accounting records show that it has not received any rent from tenants. What is the correct treatment for this discrepancy?
A. Debit the 'Rent Received' account by ₦15,000
B. Credit the 'Rent Received' account by ₦15,000
Correct C. Debit the 'Rent Received' account by ₦15,000 and credit the 'Rent Paid' account by ₦15,000
D. Do nothing, as it is a normal transaction

Correct Answer: C

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Question 22
A company's cash book shows a debit balance of ₦20,000 in the 'Bank' account. However, the company's bank statement shows a credit balance of ₦15,000. What is the correct treatment for this discrepancy?
A. Debit the 'Bank' account by ₦20,000 and credit the 'Bank Charges' account by ₦5,000
Correct B. Credit the 'Bank' account by ₦15,000 and debit the 'Bank Charges' account by ₦5,000
C. Debit the 'Bank' account by ₦20,000 and credit the 'Bank Charges' account by ₦5,000
D. Do nothing, as it is a normal transaction

Correct Answer: B

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Question 23
A company's balance sheet shows a debit balance of ₦30,000 in the 'Accrued Expenses' account. However, the company's accounting records show that it has not incurred any expenses. What is the correct treatment for this discrepancy?
A. Debit the 'Accrued Expenses' account by ₦30,000
B. Credit the 'Accrued Expenses' account by ₦30,000
Correct C. Debit the 'Accrued Expenses' account by ₦30,000 and credit the 'Accrued Income' account by ₦30,000
D. Do nothing, as it is a normal transaction

Correct Answer: C

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Question 24
A company's trial balance shows a credit balance of ₦40,000 in the 'Dividends' account. However, the company's accounting records show that it has not paid any dividends. What is the correct treatment for this discrepancy?
A. Credit the 'Dividends' account by ₦40,000
B. Debit the 'Dividends' account by ₦40,000
Correct C. Credit the 'Dividends' account by ₦40,000 and debit the 'Retained Earnings' account by ₦40,000
D. Do nothing, as it is a normal transaction

Correct Answer: C

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Question 25
A company's cash book shows a debit balance of ₦50,000 in the 'Bank' account. However, the company's bank statement shows a credit balance of ₦60,000. What is the correct treatment for this discrepancy?
A. Debit the 'Bank' account by ₦50,000 and credit the 'Bank Charges' account by ₦10,000
Correct B. Credit the 'Bank' account by ₦60,000 and debit the 'Bank Charges' account by ₦10,000
C. Debit the 'Bank' account by ₦50,000 and credit the 'Bank Charges' account by ₦10,000
D. Do nothing, as it is a normal transaction

Correct Answer: B

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