POST UTME PAN-ATLANTIC UNIVERSITY 2022 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 2022 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
Correct B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦10,000 debit to Rent Received and ₦10,000 credit to Rent Paid
D. ₦10,000 debit to Rent Paid and ₦10,000 credit to Rent Received

Correct Answer: B

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Question 2
A bank statement shows a balance of ₦25,000, but the cash book balance is ₦20,000. The bank statement also shows a debit of ₦1,000 for 'Bank Charges' and a credit of ₦500 for 'Interest Received'. What is the correct bank reconciliation?
A. ₦4,500
B. ₦5,000
Correct C. ₦5,500
D. ₦6,000

Correct Answer: C

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Question 3
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's trial balance shows a debit balance of ₦10,000 in the account 'Drawings'. What is the correct journal entry to rectify this error?
A. ₦3,000 debit to Drawings and ₦3,000 credit to A's Capital
Correct B. ₦3,000 debit to A's Capital and ₦3,000 credit to Drawings
C. ₦6,000 debit to Drawings and ₦6,000 credit to A's Capital
D. ₦6,000 debit to A's Capital and ₦6,000 credit to Drawings

Correct Answer: B

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Question 4
A company produces two products, X and Y, using a joint production process. The company's cost of goods sold for product X is ₦10,000 and for product Y is ₦15,000. What is the total cost of goods sold for the company?
A. ₦25,000
B. ₦30,000
Correct C. ₦35,000
D. ₦40,000

Correct Answer: C

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Question 5
A company's trading account shows a profit of ₦50,000. The company's profit and loss account shows a net profit of ₦60,000. What is the company's net profit?
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 6
A company issues 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦150,000
Correct D. ₦200,000

Correct Answer: D

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Question 7
A company has two departments: A and B. Department A has a balance of ₦100,000 in its control account, and department B has a balance of ₦50,000 in its control account. If the total balance in the company's control account is ₦150,000, what is the balance in the company's general ledger?
Correct A. ₦0
B. ₦50,000
C. ₦100,000
D. ₦150,000

Correct Answer: A

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Question 8
A company purchases a machine for ₦200,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
A. ₦120,000
B. ₦140,000
C. ₦160,000
Correct D. ₦180,000

Correct Answer: D

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Question 9
A company issues 5,000 debentures of ₦100 each at a premium of ₦5. Calculate the total amount received from the issue of debentures.
A. ₦500,000
B. ₦525,000
C. ₦550,000
Correct D. ₦575,000

Correct Answer: D

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Question 10
A company has a balance of ₦50,000 in its general ledger. If the company issues 10,000 shares of ₦5 each at a premium of ₦2, what is the new balance in the company's general ledger?
A. ₦100,000
B. ₦150,000
C. ₦200,000
Correct D. ₦250,000

Correct Answer: D

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Question 11
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 20,000
Correct B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000

Correct Answer: B

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Question 12
A company's trial balance showed the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, Common Stock ₦ 100,000, and Retained Earnings ₦ 20,000. Prepare a balance sheet for the company.
Correct A. Assets: ₦ 200,000, Liabilities: ₦ 50,000, Equity: ₦ 150,000
B. Assets: ₦ 150,000, Liabilities: ₦ 30,000, Equity: ₦ 120,000
C. Assets: ₦ 120,000, Liabilities: ₦ 50,000, Equity: ₦ 70,000
D. Assets: ₦ 200,000, Liabilities: ₦ 30,000, Equity: ₦ 170,000

Correct Answer: A

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Question 13
A company purchased a machine for ₦ 50,000 and depreciated it by 10% per annum. Calculate the book value of the machine after 3 years.
A. ₦ 25,000
B. ₦ 30,000
Correct C. ₦ 35,000
D. ₦ 40,000

Correct Answer: C

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Question 14
A company issued 5,000 debentures of ₦ 100 each at a premium of ₦ 5 per debenture. Calculate the total amount received from the issue of debentures.
A. ₦ 500,000
Correct B. ₦ 525,000
C. ₦ 550,000
D. ₦ 575,000

Correct Answer: B

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Question 15
A company's trial balance showed the following balances: Accounts Payable ₦ 40,000, Accounts Receivable ₦ 20,000, Common Stock ₦ 80,000, and Retained Earnings ₦ 30,000. Prepare a balance sheet for the company.
Correct A. Assets: ₦ 140,000, Liabilities: ₦ 40,000, Equity: ₦ 100,000
B. Assets: ₦ 100,000, Liabilities: ₦ 20,000, Equity: ₦ 80,000
C. Assets: ₦ 120,000, Liabilities: ₦ 40,000, Equity: ₦ 80,000
D. Assets: ₦ 140,000, Liabilities: ₦ 20,000, Equity: ₦ 120,000

Correct Answer: A

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Question 16
A company purchased a machine for ₦ 60,000 and depreciated it by 15% per annum. Calculate the book value of the machine after 2 years.
A. ₦ 36,000
B. ₦ 40,000
Correct C. ₦ 45,000
D. ₦ 50,000

Correct Answer: C

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Question 17
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 3 per share. Calculate the total amount received from the issue of shares.
A. ₦ 30,000
B. ₦ 40,000
Correct C. ₦ 50,000
D. ₦ 60,000

Correct Answer: C

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Question 18
A company's trial balance shows a debit balance of ₦15,000 in the 'Office Supplies' account. However, the company's accountant has forgotten to record a purchase of office supplies worth ₦8,000. What is the correct amount to be recorded in the 'Office Supplies' account?
Correct A. ₦23,000
B. ₦27,000
C. ₦15,000
D. ₦8,000

Correct Answer: A

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Question 19
A company's balance sheet shows a decrease in its current assets by ₦50,000 and an increase in its current liabilities by ₦30,000. What is the net effect on the company's working capital?
Correct A. ₦20,000 decrease
B. ₦20,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase

Correct Answer: A

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Question 20
A company's profit and loss account shows a gross profit of ₦150,000 and a net profit of ₦80,000. What is the company's operating profit?
Correct A. ₦70,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 21
A company's balance sheet shows a decrease in its non-current assets by ₦100,000 and an increase in its non-current liabilities by ₦50,000. What is the net effect on the company's long-term solvency?
Correct A. ₦50,000 decrease
B. ₦50,000 increase
C. ₦100,000 decrease
D. ₦100,000 increase

Correct Answer: A

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Question 22
A company's trial balance shows a credit balance of ₦20,000 in the 'Dividends' account. However, the company's accountant has forgotten to record a payment of dividends worth ₦10,000. What is the correct amount to be recorded in the 'Dividends' account?
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 23
A company issues 1,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the total amount received from debenture holders.
A. ₦100,000
Correct B. ₦110,000
C. ₦120,000
D. ₦130,000

Correct Answer: B

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Question 24
Under the double entry system, what is the effect of a decrease in the value of a company's assets on its equity?
A. Increase in equity
Correct B. Decrease in equity
C. No effect on equity
D. Increase in liabilities

Correct Answer: B

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Question 25
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 ₦150,000, what is the share of profit of partner A?
Correct A. ₦90,000
B. ₦120,000
C. ₦135,000
D. ₦150,000

Correct Answer: A

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