Practice post utme noun accounting 2025 Past Questions

Question 1

A company's trading account for the year ended 31st December 2024 shows a profit of ₦1,500,000. The balance on the profit and loss account is ₦250,000. The balance on the capital account is ₦500,000. The company's issued share capital is ₦5,000,000 divided into 5,000,000 ordinary shares of ₦1 each. The company's retained earnings balance as at 1st January 2024 was ₦2,000,000. Calculate the company's retained earnings balance as at 31st December 2024.

Correct A. ₦2,750,000

B. ₦2,500,000

C. ₦2,250,000

D. ₦2,000,000

Correct Answer: A

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Question 2

A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?

Correct A. ₦24,000

B. ₦20,000

C. ₦18,000

D. ₦16,000

Correct Answer: A

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Question 3

A business uses the following transactions to prepare its ledger accounts. Identify the type of account that is not a real account.

A. Asset Account

B. Liability Account

C. Equity Account

Correct D. Revenue Account

Correct Answer: D

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Question 4

A company's trial balance shows the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦30,000, and Common Stock ₦100,000. What is the total amount of assets?

A. ₦80,000

Correct B. ₦120,000

C. ₦180,000

D. ₦200,000

Correct Answer: B

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Question 5

A company uses the following transactions to prepare its ledger accounts. Identify the type of account that is not a real account.

A. Asset Account

B. Liability Account

C. Equity Account

Correct D. Revenue Account

Correct Answer: D

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Question 6

In a partnership account, the capital of a partner who has been absent for the past three years is shown as a debit balance in the partner's capital account. What is the reason for this?

A. The partner's capital has been reduced due to the absence.

B. The partner's capital has been increased due to the absence.

Correct C. The partner's capital has been frozen due to the absence.

D. The partner's capital has been written off due to the absence.

Correct Answer: C

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Question 7

A company uses the double-entry system of accounting. The journal entry for the purchase of a machine for ₦50,000 cash is:

Correct A. Debit Machine ₦50,000, Credit Cash ₦50,000

B. Debit Machine ₦50,000, Credit Bank ₦50,000

C. Debit Bank ₦50,000, Credit Machine ₦50,000

D. Debit Machine ₦50,000, Credit Capital ₦50,000

Correct Answer: A

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Question 8

A company uses the double-entry system of accounting. The journal entry for the sale of goods for ₦100,000 on credit is:

A. Debit Sales ₦100,000, Credit Cash ₦100,000

Correct B. Debit Sales ₦100,000, Credit Bank ₦100,000

C. Debit Bank ₦100,000, Credit Sales ₦100,000

D. Debit Sales ₦100,000, Credit Capital ₦100,000

Correct Answer: B

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Question 9

A company uses the double-entry system of accounting. The journal entry for the purchase of a machine for ₦50,000 on credit is:

A. Debit Machine ₦50,000, Credit Cash ₦50,000

Correct B. Debit Machine ₦50,000, Credit Bank ₦50,000

C. Debit Bank ₦50,000, Credit Machine ₦50,000

D. Debit Machine ₦50,000, Credit Capital ₦50,000

Correct Answer: B

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Question 10

A company uses the double-entry system of accounting. The journal entry for the sale of goods for ₦100,000 on credit is:

A. Debit Sales ₦100,000, Credit Cash ₦100,000

Correct B. Debit Sales ₦100,000, Credit Bank ₦100,000

C. Debit Bank ₦100,000, Credit Sales ₦100,000

D. Debit Sales ₦100,000, Credit Capital ₦100,000

Correct Answer: B

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Question 11

In a partnership account, what is the correct method to calculate the capital of a partner who has been absent for a year?

A. Average Capital Method

B. Fixed Capital Method

Correct C. Weighted Average Capital Method

D. Capital Sum Method

Correct Answer: C

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Question 12

A public sector organization has a cash book with the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash received from customers | 1000 | 0 | | 1/15 | Cash paid to suppliers | 500 | 0 | | 2/1 | Cash received from customers | 800 | 0 | | 2/15 | Cash paid to employees | 300 | 0 | What is the balance of the cash book at the end of February?

A. ₦1200

B. ₦1300

Correct C. ₦1400

D. ₦1500

Correct Answer: C

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Question 13

A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦5000, what is the annual depreciation charge if the asset's cost is ₦25000?

A. ₦4000

Correct B. ₦5000

C. ₦6000

D. ₦7000

Correct Answer: B

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Question 14

A company's cash book shows the following transactions: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash received from customers | 1000 | 0 | | 1/15 | Cash paid to suppliers | 500 | 0 | | 2/1 | Cash received from customers | 800 | 0 | | 2/15 | Cash paid to employees | 300 | 0 | What is the balance of the cash book at the end of February?

A. ₦1200

B. ₦1300

Correct C. ₦1400

D. ₦1500

Correct Answer: C

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Question 15

A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦5000, what is the annual depreciation charge if the asset's cost is ₦25000?

A. ₦4000

Correct B. ₦5000

C. ₦6000

D. ₦7000

Correct Answer: B

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Question 16

A company uses the double-entry system to record its transactions. The company's trial balance shows a debit balance of ₦50,000 in the account 'Office Supplies' and a credit balance of ₦20,000 in the account 'Office Equipment'. What is the correct journal entry to record the transfer of ₦30,000 from 'Office Supplies' to 'Office Equipment'?

Correct A. Debit Office Supplies ₦30,000, Credit Office Equipment ₦30,000

B. Debit Office Equipment ₦30,000, Credit Office Supplies ₦30,000

C. Debit Office Supplies ₦30,000, Credit Office Equipment ₦20,000

D. Debit Office Equipment ₦30,000, Credit Office Supplies ₦20,000

Correct Answer: A

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Question 17

A company's trial balance shows a debit balance of ₦100,000 in the account 'Rent Expense' and a credit balance of ₦50,000 in the account 'Rent Received'. What is the correct journal entry to record the transfer of ₦50,000 from 'Rent Expense' to 'Rent Received'?

Correct A. Debit Rent Expense ₦50,000, Credit Rent Received ₦50,000

B. Debit Rent Received ₦50,000, Credit Rent Expense ₦50,000

C. Debit Rent Expense ₦50,000, Credit Rent Received ₦20,000

D. Debit Rent Received ₦50,000, Credit Rent Expense ₦20,000

Correct Answer: A

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Question 18

A company uses the single-entry system to record its transactions. The company's ledger shows a debit balance of ₦50,000 in the account 'Office Supplies' and a credit balance of ₦20,000 in the account 'Office Equipment'. What is the correct journal entry to record the transfer of ₦30,000 from 'Office Supplies' to 'Office Equipment'?

Correct A. Debit Office Supplies ₦30,000, Credit Office Equipment ₦30,000

B. Debit Office Equipment ₦30,000, Credit Office Supplies ₦30,000

C. Debit Office Supplies ₦30,000, Credit Office Equipment ₦20,000

D. Debit Office Equipment ₦30,000, Credit Office Supplies ₦20,000

Correct Answer: A

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Question 19

A company's financial statements show a trading profit of ₦200,000 and a net loss of ₦50,000. What is the correct journal entry to record the transfer of ₦250,000 from the trading profit to the net loss?

Correct A. Debit Trading Profit ₦250,000, Credit Net Loss ₦250,000

B. Debit Net Loss ₦250,000, Credit Trading Profit ₦250,000

C. Debit Trading Profit ₦250,000, Credit Net Loss ₦20,000

D. Debit Net Loss ₦250,000, Credit Trading Profit ₦20,000

Correct Answer: A

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Question 20

A company's financial statements show a balance sheet total of ₦500,000 and a net worth of ₦300,000. What is the correct journal entry to record the transfer of ₦200,000 from the balance sheet total to the net worth?

Correct A. Debit Balance Sheet Total ₦200,000, Credit Net Worth ₦200,000

B. Debit Net Worth ₦200,000, Credit Balance Sheet Total ₦200,000

C. Debit Balance Sheet Total ₦200,000, Credit Net Worth ₦20,000

D. Debit Net Worth ₦200,000, Credit Balance Sheet Total ₦20,000

Correct Answer: A

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Question 21

In a double-entry system, what is the purpose of the ledger accounts?

Correct A. To record all transactions

B. To prepare the trial balance

C. To prepare the balance sheet

D. To prepare the income statement

Correct Answer: A

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Question 22

What is the difference between a cash book and a ledger?

A. A cash book is a subsidiary ledger, while a ledger is a main ledger

Correct B. A cash book is a main ledger, while a ledger is a subsidiary ledger

C. A cash book is used for cash transactions, while a ledger is used for non-cash transactions

D. A cash book is used for non-cash transactions, while a ledger is used for cash transactions

Correct Answer: B

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Question 23

What is the purpose of a bank reconciliation statement?

Correct A. To reconcile the cash book with the bank statement

B. To reconcile the ledger with the cash book

C. To reconcile the bank statement with the cash book

D. To reconcile the ledger with the bank statement

Correct Answer: A

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Question 24

What is the purpose of a control account?

A. To control the cash transactions

B. To control the bank transactions

Correct C. To control the accounts payable and accounts receivable

D. To control the inventory

Correct Answer: C

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Question 25

What is the purpose of a self-balancing ledger?

Correct A. To balance the ledger accounts

B. To prepare the trial balance

C. To prepare the balance sheet

D. To prepare the income statement

Correct Answer: A

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POST UTME NOUN 2025 Accounting | Objective

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