POST UTME OSUSTECH 2017 Accounting | Objective

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Question 1
A company's trial balance shows a debit balance of ₦10,000 in the account 'Rent Received'. However, the company's cash book shows a credit entry of ₦5,000 for rent received from a customer. What is the correct journal entry to correct the error?
A. Debit Rent Received ₦5,000, Credit Cash ₦5,000
B. Debit Rent Received ₦10,000, Credit Cash ₦10,000
C. Debit Rent Received ₦5,000, Credit Cash ₦5,000
D. Debit Rent Received ₦15,000, Credit Cash ₦15,000
Question 2
A company's trial balance shows a debit balance of ₦20,000 in the account 'Prepaid Rent'. What is the correct treatment of this account in the preparation of the financial statements?
A. Debit the Prepaid Rent account and credit the Rent Expense account.
B. Credit the Prepaid Rent account and debit the Rent Expense account.
C. Debit the Rent Expense account and credit the Prepaid Rent account.
D. Credit the Prepaid Rent account and debit the Prepaid Rent account.
Question 3
A company has the following ledger accounts: Debit Accounts Payable 10,000 Salaries Expense 20,000 Rent Expense 15,000 Credit Cash 50,000 Accounts Receivable 30,000 Common Stock 100,000 What is the total amount of liabilities?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 4
A company issued 10,000 ordinary shares of ₦10 each at a premium of ₦3. Calculate the total amount received from the issue of shares.
A. ₦100,000
B. ₦120,000
C. ₦130,000
D. ₦140,000
Question 5
A company's manufacturing costs for the month are as follows: Direct Materials ₦120,000, Direct Labor ₦80,000, and Manufacturing Overhead ₦60,000. If the company produces 1,000 units of product A and 500 units of product B, what is the total variable cost of product A?
A. ₦80,000
B. ₦100,000
C. ₦120,000
D. ₦140,000
Question 6
A company has the following transactions for the year ended December 31, 2022: Purchased office equipment for ₦50,000; Sold office equipment for ₦30,000. Calculate the gain or loss on the sale of office equipment.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 7
A company's trial balance shows a debit balance of ₦10,000 in the account 'Rent Paid'. However, the company's cash book shows a credit entry of ₦5,000 for rent paid to a supplier. What is the correct journal entry to correct the error?
A. Debit Rent Paid ₦5,000, Credit Cash ₦5,000
B. Debit Rent Paid ₦10,000, Credit Cash ₦10,000
C. Debit Rent Paid ₦5,000, Credit Cash ₦5,000
D. Debit Rent Paid ₦15,000, Credit Cash ₦15,000
Question 8
A company's trial balance shows the following balances: Accounts Payable ₦20,000, Accounts Receivable ₦15,000, Sales Revenue ₦100,000, Cost of Goods Sold ₦60,000. Prepare the company's income statement.
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦70,000
Question 9
A company's bank reconciliation statement shows a difference of ₦5,000 between the company's cash book balance and the bank statement balance. The company's cash book balance is ₦20,000, and the bank statement balance is ₦25,000. What is the reason for the difference?
A. Bank charge
B. Interest earned
C. Cheque deposited but not credited
D. Cheque issued but not presented
Question 10
A company purchases a machine for ₦1,000,000. The machine is expected to have a useful life of 5 years and a residual value of ₦100,000. Calculate the annual depreciation using the reducing balance method.
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 11
A company purchases a machine for ₦1,500,000. The machine is expected to have a useful life of 5 years and a residual value of ₦150,000. Calculate the annual depreciation using the straight-line method.
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 12
A company has the following transactions for the year ended December 31, 2022: Purchased office equipment for ₦50,000; Sold office equipment for ₦30,000. Calculate the gain or loss on the sale of office equipment.
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 13
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Received' account. Prepare the necessary journal entry to close this account.
A. Debit Rent Received ₦15,000, Credit Rent Earned ₦15,000
B. Debit Rent Earned ₦15,000, Credit Rent Received ₦15,000
C. Debit Rent Received ₦15,000, Credit Profit ₦15,000
D. Debit Profit ₦15,000, Credit Rent Received ₦15,000
Question 14
A company's trial balance shows a debit balance of ₦25,000 in the account 'Accrued Expenses'. What is the correct treatment of this account in the preparation of the financial statements?
A. Debit the Accrued Expenses account and credit the Accrued Expenses Expense account.
B. Credit the Accrued Expenses account and debit the Accrued Expenses Expense account.
C. Debit the Accrued Expenses Expense account and credit the Accrued Expenses account.
D. Credit the Accrued Expenses account and debit the Accrued Expenses account.
Question 15
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders and the amount of discount on the debentures.
A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000

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