POST UTME PAN-ATLANTIC UNIVERSITY 2019 Accounting | Objective

Are you preparing for POST UTME PAN-ATLANTIC UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: Debit: Raw Materials ₦ 50,000, Work-in-Progress ₦ 30,000, Factory Overheads ₦ 20,000 Credit: Purchases ₦ 80,000, Wages ₦ 40,000, Rent ₦ 10,000 What is the total value of the assets acquired during the month?
Correct A. ₦ 100,000
B. ₦ 120,000
C. ₦ 140,000
D. ₦ 160,000

Correct Answer: A

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Question 2
A public sector organization has the following transactions: Debit: Salaries ₦ 100,000, Travel Expenses ₦ 50,000, Office Supplies ₦ 20,000 Credit: Revenue ₦ 200,000, Grants ₦ 80,000 What is the net increase in assets?
Correct A. ₦ 0
B. ₦ 10,000
C. ₦ 20,000
D. ₦ 30,000

Correct Answer: A

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Question 3
A manufacturing company has the following transactions: Debit: Raw Materials ₦ 50,000, Work-in-Progress ₦ 30,000, Factory Overheads ₦ 20,000 Credit: Purchases ₦ 80,000, Wages ₦ 40,000, Rent ₦ 10,000 What is the total value of the assets acquired during the month?
Correct A. ₦ 100,000
B. ₦ 120,000
C. ₦ 140,000
D. ₦ 160,000

Correct Answer: A

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Question 4
A company uses the double-entry system of accounting. The following transactions occurred during the month of January: Debit: Raw Materials ₦ 50,000, Work-in-Progress ₦ 30,000, Factory Overheads ₦ 20,000 Credit: Purchases ₦ 80,000, Wages ₦ 40,000, Rent ₦ 10,000 What is the total value of the assets acquired during the month?
Correct A. ₦ 100,000
B. ₦ 120,000
C. ₦ 140,000
D. ₦ 160,000

Correct Answer: A

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Question 5
A public sector organization has the following transactions: Debit: Salaries ₦ 100,000, Travel Expenses ₦ 50,000, Office Supplies ₦ 20,000 Credit: Revenue ₦ 200,000, Grants ₦ 80,000 What is the net increase in assets?
Correct A. ₦ 0
B. ₦ 10,000
C. ₦ 20,000
D. ₦ 30,000

Correct Answer: A

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Question 6
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and the residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦500,000?
Correct A. ₦100,000
B. ₦80,000
C. ₦120,000
D. ₦60,000

Correct Answer: A

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Question 7
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦1,200,000, what is the share of profit of partner A?
Correct A. ₦900,000
B. ₦600,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

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Question 8
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 2 Jan | Bank | | 10,000 | | 3 Jan | Cash | 5,000 | | | 4 Jan | Bank | | 5,000 | What is the balance of the cash book?
A. ₦5,000
B. ₦10,000
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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Question 9
A company's bank statement shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Bank | 10,000 | | | 2 Jan | Cash | | 10,000 | | 3 Jan | Bank | 5,000 | | | 4 Jan | Cash | | 5,000 | What is the balance of the bank statement?
A. ₦5,000
B. ₦10,000
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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Question 10
A company's cash book and bank statement are reconciled as follows: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Cash | 10,000 | | | 2 Jan | Bank | | 10,000 | | 3 Jan | Cash | 5,000 | | | 4 Jan | Bank | | 5,000 | What is the reason for the difference between the cash book and bank statement balances?
A. Bank charges
B. Interest earned
C. Deposits in transit
Correct D. Cheques issued but not yet presented

Correct Answer: D

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Question 11
In a double-entry system, what is the purpose of the Trial Balance?
Correct A. To verify the accuracy of the ledger accounts
B. To identify any errors in the ledger accounts
C. To reconcile the debit and credit balances
D. To prepare the final accounts

Correct Answer: A

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Question 12
What is the main difference between a manufacturing account and a trading account?
A. A manufacturing account includes the cost of goods sold, while a trading account includes the cost of goods purchased
B. A manufacturing account includes the cost of goods purchased, while a trading account includes the cost of goods sold
Correct C. A manufacturing account includes the cost of goods manufactured, while a trading account includes the cost of goods sold
D. A manufacturing account includes the cost of goods sold, while a trading account includes the cost of goods manufactured

Correct Answer: C

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Question 13
A company has the following ledger balances: Cash 10,000, Accounts Payable 5,000, and Common Stock 20,000. What is the total equity of the company?
A. 25,000
B. 30,000
C. 35,000
Correct D. 40,000

Correct Answer: D

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Question 14
A company has the following transactions: Purchased office supplies for 1,000, Sold goods for 10,000, and Purchased land for 50,000. What is the total amount of assets acquired?
A. 51,000
B. 61,000
C. 71,000
Correct D. 81,000

Correct Answer: D

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Question 15
A company has the following ledger balances: Accounts Receivable 10,000, Accounts Payable 5,000, and Common Stock 20,000. What is the total amount of liabilities and equity?
A. 35,000
B. 40,000
C. 45,000
Correct D. 50,000

Correct Answer: D

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Question 16
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. ₦1,000,000
Correct B. ₦1,050,000
C. ₦1,100,000
D. ₦1,150,000

Correct Answer: B

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Question 17
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 1,500 | What is the balance in the cash account?
A. ₦500
B. ₦1,000
Correct C. ₦1,500
D. ₦2,000

Correct Answer: C

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Question 18
A company's single entry system shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Sales | | 10,000 | | 2nd Jan | Purchases | 8,000 | | | 3rd Jan | Cash | | 2,000 | What is the net profit for the period?
A. ₦2,000
B. ₦4,000
Correct C. ₦6,000
D. ₦8,000

Correct Answer: C

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Question 19
A company's manufacturing account shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Raw Materials | 10,000 | | | 2nd Jan | Wages | | 5,000 | | 3rd Jan | Work-in-Progress | | 15,000 | What is the cost of goods manufactured?
A. ₦15,000
B. ₦20,000
Correct C. ₦25,000
D. ₦30,000

Correct Answer: C

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Question 20
A company's control account shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Sales | | 10,000 | | 2nd Jan | Purchases | 8,000 | | | 3rd Jan | Cash | | 2,000 | What is the balance in the sales account?
A. ₦10,000
Correct B. ₦12,000
C. ₦14,000
D. ₦16,000

Correct Answer: B

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Question 21
A company issued 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. ₦1,500
D. ₦2,000

Correct Answer: C

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Question 22
A partnership has two partners, A and B. The capital accounts of A and B are ₦0,000 and ₦0,500 respectively. The profit sharing ratio is 3:2. Calculate the profit to be shared by A.
Correct A. ₦0,300
B. ₦0,400
C. ₦0,500
D. ₦0,600

Correct Answer: A

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Question 23
A company purchased a machine for ₦0,000. The machine has a useful life of 5 years and a residual value of ₦0,000. Calculate the annual depreciation using the straight line method.
Correct A. ₡0,000
B. ₡2,000
C. ₡5,000
D. ₡8,000

Correct Answer: A

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Question 24
A government agency has a budget of ₡0,000,000 for a project. The project has two components, A and B, which cost ₠.8 million and ₠.9 million respectively. Calculate the percentage of the budget allocated to component B.
A. 8%
Correct B. 9%
C. 10%
D. 11%

Correct Answer: B

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Question 25
A manufacturing company has a production cost of ₠.5 million and a selling price of ₡.2 million. Calculate the gross profit percentage.
A. 20%
Correct B. 25%
C. 30%
D. 35%

Correct Answer: B

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