POST UTME NOUN 2020 Accounting | Objective

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Question 1
A company's cash book as at 31st December, 2019 is as follows: Cash ₦50,000 Bank ₦20,000 Total ₦70,000 What is the company's cash balance as at 31st December, 2019?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 2
A company has the following ledger balances: Accounts Payable 10,000, Common Stock 20,000, and Retained Earnings 30,000. What is the total amount of equity on the balance sheet?
A. 60,000
B. 70,000
C. 80,000
D. 90,000
Question 3
A company issues 1,000 shares of common stock at ₦10 per share. What is the total amount received from the sale of these shares?
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000
Question 4
A company's manufacturing account as at 31st December, 2019 is as follows: Direct Materials ₦30,000 Direct Labour ₦20,000 Total ₦50,000 What is the company's manufacturing cost as at 31st December, 2019?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 5
A partnership has two partners, A and B. The partnership's capital account balance is ₦100,000. Partner A's capital account balance is ₦50,000, and Partner B's capital account balance is ₦50,000. If Partner A withdraws ₦20,000 from the partnership, what is the new balance of Partner B's capital account?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 6
A company uses the single-entry system of accounting. The company's trial balance as at 31st December, 2020, shows the following balances: Cash 10,000, Accounts Payable 15,000, Common Stock 20,000, and Retained Earnings 30,000. What is the total amount of assets on the balance sheet?
A. 55,000
B. 65,000
C. 75,000
D. 85,000
Question 7
A company issued 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 8
A company's trial balance shows a credit balance of ₦10,000 in the 'Dividends' account. However, the company's accounting records show that it has declared a dividend of ₦15,000. What is the correct journal entry to record the dividend?
A. Debit Dividends ₦15,000, Credit Retained Earnings ₦15,000
B. Debit Dividends ₦10,000, Credit Retained Earnings ₦10,000
C. Debit Dividends ₦15,000, Credit Cash ₦15,000
D. Debit Dividends ₦10,000, Credit Cash ₦10,000
Question 9
A company's ledger shows the following balances: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. What is the company's total equity?
A. ₦120,000
B. ₦150,000
C. ₦170,000
D. ₦200,000
Question 10
A company's balance sheet shows a decrease in its non-current assets of ₦30,000 and an increase in its non-current liabilities of ₦20,000. What is the effect on the company's net worth?
A. Decrease in net worth of ₦10,000
B. Increase in net worth of ₦10,000
C. No change in net worth
D. Decrease in net worth of ₦10,000
Question 11
A company's cash book shows a credit balance of ₦25,000 in the cash account. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?
A. The company has an outstanding cheque that has not been presented for payment.
B. The company has deposited cash into the bank but the bank has not yet credited the account.
C. The company has withdrawn cash from the bank but the bank has not yet debited the account.
D. The company has an error in its cash book.
Question 12
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦20,000 in rent for the year. What is the correct journal entry to record the payment?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
B. Debit Rent Expense ₦20,000, Credit Cash ₦20,000
C. Debit Rent Expense ₦15,000, Credit Cash ₦15,000
D. Debit Rent Expense ₦5,000, Credit Cash ₦20,000
Question 13
A company's balance sheet as at 31st December 2020 is as follows: Assets ₦500,000, Liabilities ₦300,000, and Capital ₦200,000. Calculate the company's net worth.
A. ₦100,000
B. ₦200,000
C. ₦300,000
D. ₦400,000
Question 14
A company uses the cash basis of accounting. The following transactions were recorded during the year: 1. Purchased office equipment for ₦120,000. 2. Sold goods for ₦80,000. 3. Purchased raw materials for ₦150,000. 4. Paid salaries of ₦30,000. 5. Collected cash from customers for ₦100,000. What is the total amount of cash received by the company during the year?
A. ₦230,000
B. ₦240,000
C. ₦250,000
D. ₦260,000
Question 15
A company uses the double-entry system of accounting. It records the following transactions: Purchased office supplies for ₦10,000, and paid salaries of ₦15,000. What is the correct journal entry for these transactions?
A. Debit Office Supplies ₦10,000, Credit Salaries ₦15,000.
B. Debit Salaries ₦15,000, Credit Office Supplies ₦10,000.
C. Debit Office Supplies ₦10,000, Credit Cash ₦10,000.
D. Debit Salaries ₦15,000, Credit Cash ₦15,000.

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