POST UTME PAN-ATLANTIC UNIVERSITY 2021 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company uses the straight-line method to depreciate its assets. The asset cost ₦200,000 and has a useful life of 5 years. Calculate the annual depreciation.
Question 2
A company has the following balance sheet as at 31st December 2022:
| Asset | ₦ | Liability | ₦ | Equity | ₦ |
| --- | --- | --- | --- | --- | --- |
| Cash | 50,000 | Accounts Payable | 50,000 | Retained Earnings | 100,000 |
| Accounts Receivable | 20,000 | Notes Payable | 100,000 | Common Stock | 200,000 |
| Inventory | 30,000 | Total Liabilities | 150,000 | Total Equity | 400,000 |
| Total Assets | 100,000 | | | | |
Determine the amount of common stock.
Question 3
A company produces 500 units of a product in a month. The total cost of production is ₦250,000, which includes direct materials of ₦120,000 and direct labor of ₦80,000. The company uses the weighted average method to assign overheads. The overheads for the month are ₦30,000. Calculate the cost of goods sold.
Question 4
A company uses the perpetual inventory system. At the end of the year, the following information is available: Beginning inventory, 2,000 units at ₦10 each; purchases, 12,000 units at ₦12 each; sales, 8,000 units at ₦20 each. Calculate the cost of goods sold.
Question 5
A manufacturing company produces two products, A and B. Product A has a selling price of ₦200 and a variable cost of ₦150. Product B has a selling price of ₦300 and a variable cost of ₦250. If the company produces 100 units of Product A and 50 units of Product B, what is the total contribution margin?
Question 6
A company uses the straight-line method of depreciation. The cost of an asset is ₦150,000 and its useful life is 5 years. What is the annual depreciation charge?
Question 7
A company's control account for the year ended 31st December 2021 shows the following transactions: purchases of ₦1,000,000, sales of ₦2,000,000, and returns of ₦300,000. Calculate the company's cost of goods sold.
Question 8
A company uses the perpetual inventory system. On 1 January 2020, the company had 100 units of Product A in inventory at a cost of 10 per unit. During the year, the company purchased 500 units of Product A at 12 per unit and sold 200 units at 20 per unit. Prepare the journal entry to record the purchase and sale of Product A.
Question 9
A public sector organization has a cash book that records all its financial transactions. The cash book shows a balance of ₦1,500,000. However, the bank statement shows a balance of ₦1,800,000. What is the reason for the difference?
Question 10
A company has the following transactions: Purchased office equipment for ₦120,000; sold office equipment for ₦80,000; purchased office equipment for ₦100,000. Prepare the ledger accounts for the above transactions.
Question 11
A manufacturing company uses a job costing system. The following data are available for a particular job: Direct Materials: ₦120,000, Direct Labour: ₦80,000, Factory Overhead: ₦60,000. What is the total cost of the job?
Question 12
A company's self-balancing ledger for the year ended 31st December 2021 shows the following balances: ₦1,000,000 in cash, ₦2,000,000 in accounts receivable, ₦3,000,000 in inventory, ₦4,000,000 in property, plant, and equipment, and ₦5,000,000 in long-term debt. Calculate the company's net working capital.
Question 13
A company's trial balance as at December 31, 2022, is as follows: Accounts Payable ₦150,000; Accounts Receivable ₦200,000; Common Stock ₦500,000; Cost of Goods Sold ₦300,000; Dividends ₦20,000; Equipment ₦100,000; Interest Expense ₦15,000; Interest Income ₦10,000; Net Income ₦50,000; Rent Expense ₦30,000; Salaries Expense ₦40,000; Sales ₦600,000; Selling Expenses ₦20,000; Utilities Expense ₦10,000. Prepare a statement of retained earnings as at December 31, 2022.
Question 14
A company uses the single-entry system of accounting. The following information is available for the year ended 31 December 2020: Sales Revenue 200,000, Cost of Goods Sold 100,000, Operating Expenses 50,000, Net Income 50,000. Prepare a balance sheet as at 31 December 2020.
Question 15
A company's company account for the year ended 31st December 2021 shows the following transactions: issue of ₦1,000,000 in shares, purchase of ₦2,000,000 in debentures, and redemption of ₦3,000,000 in debentures. Calculate the company's total equity.
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