POST UTME PAN-ATLANTIC UNIVERSITY 2025 Accounting | Objective

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Question 1
Determine the amount of depreciation on a machine that cost ₦150,000 and has a useful life of 5 years, with an estimated residual value of ₦30,000. The machine is depreciated using the straight-line method.
A. ₦20,000
Correct B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: B

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Question 2
A company has the following transactions: Purchased office supplies for ₦15,000, paid salaries of ₦30,000, and received cash of ₦20,000 from customers. Prepare the journal entries for these transactions.
Correct A. Debit Office Supplies ₦15,000, Credit Cash ₦15,000
B. Debit Salaries ₦30,000, Credit Cash ₦30,000
C. Debit Cash ₦20,000, Credit Accounts Receivable ₦20,000
D. Debit Office Supplies ₦15,000, Credit Salaries ₦15,000

Correct Answer: A

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Question 3
A company has the following balance sheet: ₦100,000 in Cash, ₦50,000 in Accounts Receivable, ₦20,000 in Office Supplies, and ₦30,000 in Equipment. What is the total assets?
A. ₦150,000
Correct B. ₦160,000
C. ₦170,000
D. ₦180,000

Correct Answer: B

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Question 4
A company issued 1,000 shares of ₦10 each at a premium of ₦2 per share. What is the total amount received from the issue of shares?
A. ₦10,000
B. ₦12,000
C. ₦14,000
Correct D. ₦16,000

Correct Answer: D

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Question 5
A company has the following transactions: Purchased raw materials for ₦20,000, used ₦15,000 of the raw materials in production, and sold goods for ₦30,000. Prepare the journal entries for these transactions.
A. Debit Raw Materials ₦20,000, Credit Cash ₦20,000
Correct B. Debit Raw Materials ₦15,000, Credit Work in Progress ₦15,000
C. Debit Cash ₦30,000, Credit Sales ₦30,000
D. Debit Work in Progress ₦15,000, Credit Raw Materials ₦15,000

Correct Answer: B

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Question 6
A company issues 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦900,000
B. ₦950,000
Correct C. ₦975,000
D. ₦1,000,000

Correct Answer: C

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Question 7
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit to be distributed to A and B.
A. ₦12,000
B. ₦15,000
Correct C. ₦18,000
D. ₦20,000

Correct Answer: C

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Question 8
A company uses the perpetual inventory system. The cost of goods sold for the year is ₦1,200,000. The beginning inventory is ₦300,000. The cost of goods available for sale is ₦1,800,000. Calculate the cost of ending inventory.
A. ₦500,000
Correct B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: B

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Question 9
A company uses the job order costing system. The total cost of direct materials for a job is ₦120,000. The total cost of direct labor for the job is ₦150,000. The total cost of overhead for the job is ₦100,000. Calculate the total cost of the job.
A. ₦370,000
B. ₦380,000
Correct C. ₦390,000
D. ₦400,000

Correct Answer: C

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Question 10
A company uses the process costing system. The total cost of direct materials for a process is ₦200,000. The total cost of direct labor for the process is ₦250,000. The total cost of overhead for the process is ₦150,000. Calculate the total cost of the process.
A. ₦600,000
B. ₦650,000
Correct C. ₦700,000
D. ₦750,000

Correct Answer: C

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Question 11
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records indicate that the rent expense for the year was ₦20,000. What is the likely cause of the discrepancy?
A. The rent expense was incorrectly recorded as a credit.
Correct B. The rent expense was incorrectly recorded as a debit.
C. The rent expense was not recorded at all.
D. The rent expense was recorded in the wrong account.

Correct Answer: B

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Question 12
A company's balance sheet shows a current asset of ₦50,000 in the 'Accounts Receivable' account. However, the company's accounting records indicate that the accounts receivable for the year were ₦75,000. What is the likely cause of the discrepancy?
Correct A. The accounts receivable were incorrectly recorded as a debit.
B. The accounts receivable were incorrectly recorded as a credit.
C. The accounts receivable were not recorded at all.
D. The accounts receivable were recorded in the wrong account.

Correct Answer: A

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Question 13
A company's trial balance shows a credit balance of ₦10,000 in the 'Salaries Expense' account. However, the company's accounting records indicate that the salaries expense for the year was ₦15,000. What is the likely cause of the discrepancy?
Correct A. The salaries expense was incorrectly recorded as a debit.
B. The salaries expense was incorrectly recorded as a credit.
C. The salaries expense was not recorded at all.
D. The salaries expense was recorded in the wrong account.

Correct Answer: A

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Question 14
A company's balance sheet shows a non-current liability of ₦20,000 in the 'Bonds Payable' account. However, the company's accounting records indicate that the bonds payable for the year were ₦30,000. What is the likely cause of the discrepancy?
A. The bonds payable were incorrectly recorded as a debit.
Correct B. The bonds payable were incorrectly recorded as a credit.
C. The bonds payable were not recorded at all.
D. The bonds payable were recorded in the wrong account.

Correct Answer: B

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Question 15
A company's trial balance shows a debit balance of ₦5,000 in the 'Rent Income' account. However, the company's accounting records indicate that the rent income for the year was ₦10,000. What is the likely cause of the discrepancy?
A. The rent income was incorrectly recorded as a credit.
Correct B. The rent income was incorrectly recorded as a debit.
C. The rent income was not recorded at all.
D. The rent income was recorded in the wrong account.

Correct Answer: B

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Question 16
A company's balance sheet shows a current asset of ₦30,000 in the 'Accounts Payable' account. However, the company's accounting records indicate that the accounts payable for the year were ₦20,000. What is the likely cause of the discrepancy?
Correct A. The accounts payable were incorrectly recorded as a debit.
B. The accounts payable were incorrectly recorded as a credit.
C. The accounts payable were not recorded at all.
D. The accounts payable were recorded in the wrong account.

Correct Answer: A

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Question 17
A company's trial balance shows a credit balance of ₦15,000 in the 'Salaries Payable' account. However, the company's accounting records indicate that the salaries payable for the year were ₦10,000. What is the likely cause of the discrepancy?
A. The salaries payable were incorrectly recorded as a debit.
Correct B. The salaries payable were incorrectly recorded as a credit.
C. The salaries payable were not recorded at all.
D. The salaries payable were recorded in the wrong account.

Correct Answer: B

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Question 18
A company's balance sheet shows a non-current liability of ₦25,000 in the 'Bonds Payable' account. However, the company's accounting records indicate that the bonds payable for the year were ₦35,000. What is the likely cause of the discrepancy?
A. The bonds payable were incorrectly recorded as a debit.
Correct B. The bonds payable were incorrectly recorded as a credit.
C. The bonds payable were not recorded at all.
D. The bonds payable were recorded in the wrong account.

Correct Answer: B

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Question 19
A company uses the double-entry system of accounting. The company's trial balance shows the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, Common Stock ₦ 100,000, Dividends ₦ 10,000, Retained Earnings ₦ 20,000. If the company's net income for the year is ₦ 40,000, what is the correct journal entry to record the net income?
A. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000
B. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000
C. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000
Correct D. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000

Correct Answer: D

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Question 20
A company's balance sheet shows the following: Current Assets ₦ 150,000, Current Liabilities ₦ 100,000, Long-term Debt ₦ 50,000, Common Stock ₦ 100,000. If the company's net income for the year is ₦ 40,000, what is the correct journal entry to record the net income?
A. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000
B. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000
C. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000
Correct D. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000

Correct Answer: D

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Question 21
A company uses the double-entry system of accounting. The company's trial balance shows the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, Common Stock ₦ 100,000, Dividends ₦ 10,000, Retained Earnings ₦ 20,000. If the company's net income for the year is ₦ 40,000, what is the correct journal entry to record the net income?
A. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000
B. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000
C. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000
Correct D. Debit Accounts Payable ₦ 50,000, Debit Accounts Receivable ₦ 30,000, Credit Common Stock ₦ 100,000, Credit Dividends ₦ 10,000, Credit Retained Earnings ₦ 20,000

Correct Answer: D

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Question 22
A company's balance sheet shows the following: Current Assets ₦ 150,000, Current Liabilities ₦ 100,000, Long-term Debt ₦ 50,000, Common Stock ₦ 100,000. If the company's net income for the year is ₦ 40,000, what is the correct journal entry to record the net income?
A. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000
B. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000
C. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000
Correct D. Debit Current Assets ₦ 150,000, Debit Current Liabilities ₦ 100,000, Credit Common Stock ₦ 100,000, Credit Long-term Debt ₦ 50,000

Correct Answer: D

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Question 23
A company uses the double-entry system of accounting. The following transactions occurred during the month of January:
A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
Correct B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Payable 1,000
D. Debit Accounts Payable 1,000 and Credit Cash 1,000

Correct Answer: B

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Question 24
A company has the following ledger balances at the end of the year:
A. Debit 10,000 and Credit 10,000
B. Debit 5,000 and Credit 5,000
Correct C. Debit 15,000 and Credit 15,000
D. Debit 20,000 and Credit 20,000

Correct Answer: C

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Question 25
A company uses the single-entry system of accounting. The following transactions occurred during the month of January:
Correct A. Debit Cash 1,000 and Credit Accounts Receivable 1,000
B. Debit Accounts Receivable 1,000 and Credit Cash 1,000
C. Debit Cash 1,000 and Credit Accounts Payable 1,000
D. Debit Accounts Payable 1,000 and Credit Cash 1,000

Correct Answer: A

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