POST UTME PAN-ATLANTIC UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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
B. ₦3,125
C. ₦4,167
D. ₦5,000
Question 2
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?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 3
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
C. ₦40,000
D. ₦50,000
Question 4
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.
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
Question 5
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦500,000 and its residual value is ₦100,000, calculate the annual depreciation charge if the asset is used for 5 years.
A. ₦80,000
B. ₦60,000
C. ₦50,000
D. ₦40,000
Question 6
The following is a statement of financial position for a public sector entity: Assets: ₦1,500,000; Liabilities: ₦800,000; Equity: ₦700,000. What is the liquidity ratio of the entity?
A. 1.5
B. 0.9
C. 1.8
D. 2.2
Question 7
A partnership firm has two partners, A and B, who share profits and losses in the ratio 3:2. The firm's capital is ₦1,500,000, and the profit for the year is ₦600,000. If A's drawings are ₦150,000, calculate A's share of the profit.
A. ₦270,000
B. ₦240,000
C. ₦300,000
D. ₦360,000
Question 8
A company's statement of changes in equity for the year ended 31st December 2022 is as follows:
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 9
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.
A. ₦450,000
B. ₦525,000
C. ₦600,000
D. ₦675,000
Question 10
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.
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
Question 11
A company's profit and loss account for the year ended 31st December 2022 is as follows:
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 12
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.
A. ₦300,000
B. ₦250,000
C. ₦280,000
D. ₦320,000
Question 13
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
C. ₦260,000
D. ₦280,000
Question 14
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
C. ₦180,000
D. ₦200,000
Question 15
A company issued 10,000 shares of ₦10 par value at a premium of ₦5 per share. If the company received ₦120,000 from the sale of these shares, what is the total amount of paid-in capital?
A. ₦100,000
B. ₦105,000
C. ₦110,000
D. ₦115,000

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: