POST UTME PAN-ATLANTIC UNIVERSITY 2024 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 2024 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 'Rent Expense' account. However, the company's accountant has informed you that the actual rent expense for the year was ₦20,000. What journal entry would you make to correct this error?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
Correct B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦15,000, Credit Cash ₦15,000
D. Debit Rent Expense ₦20,000, Credit Cash ₦20,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 2
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. The issue expenses amount to ₦10,000. Prepare the journal entry to record the issue of shares.
Correct A. Debit Share Capital ₦10,000, Credit Share Premium ₦5,000, Credit Issue Expenses ₦5,000
B. Debit Share Capital ₦10,000, Credit Share Premium ₦5,000
C. Debit Share Capital ₦10,000, Credit Issue Expenses ₦10,000
D. Debit Share Capital ₦10,000, Credit Share Premium ₦5,000, Credit Cash ₦5,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 3
A company's manufacturing account shows the following information: Cost of Goods Sold ₦100,000, Opening Work-in-Progress ₦20,000, Closing Work-in-Progress ₦30,000, Direct Labour ₦15,000, Factory Overheads ₦25,000. Calculate the cost of goods manufactured.
A. ₦120,000
B. ₦130,000
Correct C. ₦140,000
D. ₦150,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 4
A company's control account for the 'Office Supplies' account shows a balance of ₦5,000. However, the company's accountant has informed you that the actual balance of office supplies on hand is ₦8,000. What journal entry would you make to correct this error?
Correct A. Debit Office Supplies ₦3,000, Credit Office Supplies Expense ₦3,000
B. Debit Office Supplies ₦3,000, Credit Cash ₦3,000
C. Debit Office Supplies ₦5,000, Credit Office Supplies Expense ₦5,000
D. Debit Office Supplies ₦8,000, Credit Office Supplies Expense ₦8,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 5
A company purchases a machine for ₦50,000 and pays ₦10,000 as cash and the balance on account. Prepare the journal entry to record the purchase of the machine.
Correct A. Debit Machine ₦50,000, Credit Cash ₦10,000, Credit Accounts Payable ₦40,000
B. Debit Machine ₦50,000, Credit Cash ₦40,000, Credit Accounts Payable ₦10,000
C. Debit Machine ₦50,000, Credit Cash ₦50,000
D. Debit Machine ₦50,000, Credit Accounts Payable ₦50,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 6
A company's trading account for the year ended 31st December 2023 is as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦20,000; Returns Inwards: ₦15,000. Calculate the gross profit for the year.
Correct A. ₦300,000
B. ₦250,000
C. ₦280,000
D. ₦320,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 7
A firm has the following ledger balances: Capital: ₦500,000; Profit: ₦150,000; Drawings: ₦20,000. Prepare the firm's Balance Sheet.
Correct A. ₦670,000
B. ₦680,000
C. ₦690,000
D. ₦700,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 8
A partnership is formed by three partners, A, B, and C, with initial capital of ₦1,000,000, ₦800,000, and ₦600,000 respectively. After one year, the profits are shared in the ratio 3:2:1. What is the share of profit of each partner?
Correct A. ₦450,000
B. ₦400,000
C. ₦350,000
D. ₦300,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 9
A company uses a self-balancing ledger system. The ledger accounts are as follows: Sales: ₦1,500,000; Purchases: ₦1,200,000; Returns Outwards: ₦20,000; Returns Inwards: ₦15,000. Prepare the Trading Account.
Correct A. ₦300,000
B. ₦250,000
C. ₦280,000
D. ₦320,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 10
A company's Balance Sheet as at 31st December 2023 is as follows: Assets: ₦2,500,000; Liabilities: ₦1,500,000; Capital: ₦1,000,000. What is the company's net worth?
Correct A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 11
A company issues 5,000, 10% debentures of ₦100 each at a discount of 5%. If the debentures are redeemable after 5 years, calculate the annual amortization of the discount.
A. ₦2,500
Correct B. ₦3,125
C. ₦4,167
D. ₦5,000

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 12
A manufacturing company uses a job costing system. The following data are extracted from the company's records for the month of January:
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 13
A company's balance sheet as at 31st December 2022 is as follows:
A. ₦500,000
B. ₦750,000
Correct C. ₦1,000,000
D. ₦1,250,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 14
A company's profit and loss account for the year ended 31st December 2022 is as follows:
A. ₦200,000
B. ₦300,000
Correct C. ₦400,000
D. ₦500,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 15
A company's statement of changes in equity for the year ended 31st December 2022 is as follows:
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 16
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. The partnership agreement states that the profits will be shared in the ratio 3:2. If the net profit for the year is ₦750,000, calculate the amount of profit that will be shared by A.
Correct A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 17
A company uses the perpetual inventory system. On January 1, 2024, it had 500 units of a product in stock, valued at ₦100 each. On February 15, 2024, 200 units were sold, and on March 10, 2024, 150 units were purchased at ₦120 each. Calculate the cost of goods sold for the period.
A. ₦24,500
Correct B. ₦26,500
C. ₦28,500
D. ₦30,500

Correct Answer: B

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 18
A company's trial balance as at December 31, 2023, is as follows: Debit Cash: ₦150,000 Accounts Payable: ₦50,000 Sales Revenue: ₦200,000 Cost of Goods Sold: ₦100,000 Credit Accounts Receivable: ₦30,000 Common Stock: ₦100,000 Salaries Expense: ₦20,000 Rent Expense: ₦10,000 Determine the correct classification of the above items.
A. Assets: ₦150,000, Liabilities: ₦50,000, Equity: ₦100,000
B. Assets: ₦200,000, Liabilities: ₦50,000, Equity: ₦100,000
Correct C. Assets: ₦150,000, Liabilities: ₦50,000, Equity: ₦100,000
D. Assets: ₦200,000, Liabilities: ₦50,000, Equity: ₦100,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 19
A company uses the single-entry system. The following transactions occurred during the year: January 1, 2024: Purchased office equipment for ₦50,000. February 15, 2024: Sold goods for ₦20,000. March 10, 2024: Purchased goods for ₦30,000. April 15, 2024: Sold goods for ₦25,000. Prepare the journal entries for the above transactions.
Correct A. January 1, 2024: Debit Office Equipment ₦50,000, Credit Cash ₦50,000. February 15, 2024: Debit Sales Revenue ₦20,000, Credit Cash ₦20,000. March 10, 2024: Debit Purchases ₦30,000, Credit Cash ₦30,000. April 15, 2024: Debit Sales Revenue ₦25,000, Credit Cash ₦25,000.
B. January 1, 2024: Debit Cash ₦50,000, Credit Office Equipment ₦50,000. February 15, 2024: Debit Cash ₦20,000, Credit Sales Revenue ₦20,000. March 10, 2024: Debit Purchases ₦30,000, Credit Cash ₦30,000. April 15, 2024: Debit Cash ₦25,000, Credit Sales Revenue ₦25,000.
C. January 1, 2024: Debit Office Equipment ₦50,000, Credit Cash ₦50,000. February 15, 2024: Debit Sales Revenue ₦20,000, Credit Cash ₦20,000. March 10, 2024: Debit Purchases ₦30,000, Credit Cash ₦30,000. April 15, 2024: Debit Sales Revenue ₦25,000, Credit Cash ₦25,000.
D. January 1, 2024: Debit Cash ₦50,000, Credit Office Equipment ₦50,000. February 15, 2024: Debit Sales Revenue ₦20,000, Credit Cash ₦20,000. March 10, 2024: Debit Purchases ₦30,000, Credit Cash ₦30,000. April 15, 2024: Debit Cash ₦25,000, Credit Sales Revenue ₦25,000.

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 20
A company's bank reconciliation statement as at December 31, 2023, is as follows: Bank Balance: ₦100,000 Deposits in Transit: ₦20,000 Outstanding Checks: ₦10,000 Determine the correct classification of the above items.
A. Bank Balance: ₦100,000, Deposits in Transit: ₦20,000, Outstanding Checks: ₦10,000
B. Bank Balance: ₦100,000, Deposits in Transit: ₦20,000, Outstanding Checks: ₦10,000
Correct C. Bank Balance: ₦100,000, Deposits in Transit: ₦20,000, Outstanding Checks: ₦10,000
D. Bank Balance: ₦100,000, Deposits in Transit: ₦20,000, Outstanding Checks: ₦10,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 21
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
Correct A. ₦950,000
B. ₦1,000,000
C. ₦1,050,000
D. ₦1,100,000

Correct Answer: A

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 22
A partnership has 3 partners, A, B, and C. The capital accounts of A, B, and C are ₦100,000, ₦150,000, and ₦200,000 respectively. The profit sharing ratio is 2:3:4. Calculate the profit to be shared by each partner.
A. ₦20,000
B. ₦30,000
Correct C. ₦40,000
D. ₦50,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 23
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum. Calculate the value of the machine after 3 years.
A. ₦400,000
B. ₦450,000
Correct C. ₦490,000
D. ₦540,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 24
A company issues 20,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from share holders.
A. ₦220,000
B. ₦240,000
Correct C. ₦260,000
D. ₦280,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics
Question 25
A company has a cash balance of ₦100,000 and a bank overdraft of ₦50,000. Calculate the company's net cash position.
A. ₦50,000
B. ₦100,000
Correct C. ₦150,000
D. ₦200,000

Correct Answer: C

Want to see the full step-by-step solution? Unlock AI Explanation & Analytics

Master the Exam!

You've seen a preview, but there are thousands more questions plus AI tutor to break down complex solutions.

Unlock Full Access Available for Android & Windows
Help others prepare! Share this practice hub:
Chat with Support