POST UTME OSUSTECH 2017 Accounting | Objective

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Question 1
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.
Correct 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

Correct Answer: A

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Question 2
A company's balance sheet as at 31st December 2022 is as follows: ₦1,000,000 in cash, ₦500,000 in accounts receivable, ₦200,000 in inventory, ₦300,000 in accounts payable, and ₦400,000 in long-term debt. Prepare the company's statement of cash flows for the year.
Correct A. ₦1,000,000 (Cash) + ₦500,000 (Accounts Receivable) + ₦200,000 (Inventory) - ₦300,000 (Accounts Payable) - ₦400,000 (Long-term Debt)
B. ₦1,000,000 (Cash) - ₦500,000 (Accounts Receivable) - ₦200,000 (Inventory) + ₦300,000 (Accounts Payable) + ₦400,000 (Long-term Debt)
C. ₦1,000,000 (Cash) + ₦500,000 (Accounts Receivable) - ₦200,000 (Inventory) - ₦300,000 (Accounts Payable) + ₦400,000 (Long-term Debt)
D. ₦1,000,000 (Cash) - ₦500,000 (Accounts Receivable) + ₦200,000 (Inventory) + ₦300,000 (Accounts Payable) - ₦400,000 (Long-term Debt)

Correct Answer: A

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Question 3
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Prepare the necessary journal entry.
A. Debit Share Capital ₦10,000, Credit Cash ₦10,000
Correct B. Debit Share Capital ₦10,000, Credit Premium on Shares ₦5,000
C. Debit Share Capital ₦15,000, Credit Cash ₦15,000
D. Debit Premium on Shares ₦5,000, Credit Share Capital ₦10,000

Correct Answer: B

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Question 4
A company's bank reconciliation statement shows a difference of ₦5,000 between the bank's statement and the company's cash book. The company's cash book balance is ₦20,000, while the bank's statement balance is ₦25,000. Prepare the necessary journal entry to reconcile the difference.
A. Debit Cash ₦5,000, Credit Bank Overdraft ₦5,000
Correct B. Debit Bank Overdraft ₦5,000, Credit Cash ₦5,000
C. Debit Cash ₦5,000, Credit Bank Interest ₦5,000
D. Debit Bank Interest ₦5,000, Credit Cash ₦5,000

Correct Answer: B

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Question 5
A company's trial balance shows a debit balance of ₦10,000 in the 'Rent Paid' account. Prepare the necessary journal entry to close this account.
Correct A. Debit Rent Paid ₦10,000, Credit Rent Expense ₦10,000
B. Debit Rent Expense ₦10,000, Credit Rent Paid ₦10,000
C. Debit Rent Paid ₦10,000, Credit Profit ₦10,000
D. Debit Profit ₦10,000, Credit Rent Paid ₦10,000

Correct Answer: A

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Question 6
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
Correct B. ₦120,000
C. ₦130,000
D. ₦140,000

Correct Answer: B

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Question 7
A manufacturing company uses the weighted average method to value its inventory. The company has the following data for the year ended December 31, 2022: Cost of goods available for sale ₦1,500,000; Cost of goods sold ₦1,200,000. Calculate the inventory value at December 31, 2022.
A. ₦300,000
B. ₦400,000
Correct C. ₦500,000
D. ₦600,000

Correct Answer: C

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Question 8
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
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 9
A company issued 5,000 debentures of ₦100 each at a premium of ₦10. Calculate the total amount received from the issue of debentures.
A. ₦500,000
Correct B. ₦550,000
C. ₦600,000
D. ₦650,000

Correct Answer: B

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Question 10
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
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 11
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
Correct C. Debit Rent Received ₦5,000, Credit Cash ₦5,000
D. Debit Rent Received ₦15,000, Credit Cash ₦15,000

Correct Answer: C

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Question 12
A manufacturing company produces two products, A and B. The company's production 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 cost of goods sold?
A. ₦180,000
B. ₦220,000
Correct C. ₦240,000
D. ₦260,000

Correct Answer: C

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Question 13
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
Correct C. Cheque deposited but not credited
D. Cheque issued but not presented

Correct Answer: C

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Question 14
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
Correct C. Debit Rent Paid ₦5,000, Credit Cash ₦5,000
D. Debit Rent Paid ₦15,000, Credit Cash ₦15,000

Correct Answer: C

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Question 15
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
Correct C. ₦120,000
D. ₦140,000

Correct Answer: C

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Question 16
A company's trial balance shows a debit balance of ₦15,000 in the account 'Allowance for Doubtful Debts'. What is the correct treatment of this account in the preparation of the financial statements?
A. Debit the Allowance for Doubtful Debts account and credit the Bad Debts Expense account.
Correct B. Credit the Allowance for Doubtful Debts account and debit the Bad Debts Expense account.
C. Debit the Bad Debts Expense account and credit the Allowance for Doubtful Debts account.
D. Credit the Allowance for Doubtful Debts account and debit the Allowance for Doubtful Debts account.

Correct Answer: B

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Question 17
A company's cash book shows a credit balance of ₦10,000 in the account 'Bank'. However, the company's bank statement shows a debit balance of ₦5,000. What is the correct treatment of this discrepancy?
A. Debit the Bank account and credit the Cash account.
Correct B. Credit the Bank account and debit the Cash account.
C. Debit the Cash account and credit the Bank account.
D. Credit the Cash account and debit the Bank account.

Correct Answer: B

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Question 18
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.
Correct C. Debit the Rent Expense account and credit the Prepaid Rent account.
D. Credit the Prepaid Rent account and debit the Prepaid Rent account.

Correct Answer: C

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Question 19
A company's cash book shows a credit balance of ₦15,000 in the account 'Bank'. However, the company's bank statement shows a debit balance of ₦10,000. What is the correct treatment of this discrepancy?
A. Debit the Bank account and credit the Cash account.
Correct B. Credit the Bank account and debit the Cash account.
C. Debit the Cash account and credit the Bank account.
D. Credit the Cash account and debit the Bank account.

Correct Answer: B

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Question 20
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.
Correct 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.

Correct Answer: C

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Question 21
A company issued 10,000, 10% debentures of ₦100 each at a discount of 5%. The company also issued 5,000, 10% preference shares of ₦10 each at a premium of ₦2. Calculate the total amount received from the issue of debentures and preference shares.
A. ₦1,500,000
Correct B. ₦1,600,000
C. ₦1,700,000
D. ₦1,800,000

Correct Answer: B

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Question 22
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. Prepare a balance sheet for the company.
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 23
A company's bank reconciliation statement showed a balance of ₦50,000, but the company's cash book showed a balance of ₦60,000. The bank statement showed a deposit of ₦10,000 and a withdrawal of ₦5,000. What is the correct balance of the company's cash book?
Correct A. ₦55,000
B. ₦60,000
C. ₦65,000
D. ₦70,000

Correct Answer: A

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Question 24
A company's manufacturing account showed the following balances: Direct Materials ₦100,000, Direct Labor ₦150,000, and Factory Overhead ₦200,000. Prepare a cost of goods sold statement for the company.
A. ₦450,000
Correct B. ₦500,000
C. ₦550,000
D. ₦600,000

Correct Answer: B

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Question 25
A company's departmental accounts showed the following balances: Sales Department ₦200,000, Production Department ₦300,000, and Administration Department ₦100,000. Prepare a departmental income statement for the company.
A. ₦600,000
B. ₦700,000
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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