POST UTME REDEEMERS UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME REDEEMERS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
Determine the amount of depreciation on a machine that cost ₦250,000 and has a useful life of 5 years, with a residual value of ₦50,000. The machine is depreciated using the straight-line method.
A. ₦40,000
Correct B. ₦50,000
C. ₦60,000
D. ₦70,000

Correct Answer: B

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Question 2
A company has two partners, A and B. Partner A has a 60% interest in the business and partner B has a 40% interest. If the company's profit for the year is ₦1,200,000, determine the amount of profit to be shared by partner A.
Correct A. ₦720,000
B. ₦800,000
C. ₦900,000
D. ₦1,000,000

Correct Answer: A

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Question 3
A company issues 5,000 shares of ₦10 each at a premium of ₦5 per share. Determine the total amount received from the issue of shares.
A. ₦50,000
B. ₦55,000
C. ₦60,000
Correct D. ₦65,000

Correct Answer: D

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Question 4
A company has a cash book balance of ₦120,000 and a bank statement balance of ₦150,000. Determine the amount of bank overdraft.
A. ₦30,000
B. ₦40,000
C. ₦50,000
Correct D. ₦60,000

Correct Answer: D

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Question 5
A manufacturing company produces 10,000 units of a product at a cost of ₦50 per unit. Determine the total cost of production.
Correct A. ₦500,000
B. ₦500,000
C. ₦500,000
D. ₦500,000

Correct Answer: A

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Question 6
A company issued 10,000 9% debentures of ₦100 each. Calculate the total amount received from debenture holders.
A. ₦1,000,000
Correct B. ₦1,090,000
C. ₦1,100,000
D. ₦1,190,000

Correct Answer: B

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Question 7
A company's trial balance showed an error of ₦5,000 in the debit side of the sales account. Prepare the necessary journal entry to rectify the error.
A. Debit Sales Account ₦5,000, Credit Bank Account ₦5,000
Correct B. Debit Bank Account ₦5,000, Credit Sales Account ₦5,000
C. Debit Sales Account ₦5,000, Credit Cash Account ₦5,000
D. Debit Cash Account ₦5,000, Credit Sales Account ₦5,000

Correct Answer: B

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Question 8
A company's manufacturing account for the year showed a loss of ₦20,000. The company's factory overheads were under-estimated by ₦10,000. Prepare the necessary journal entry to rectify the error.
A. Debit Factory Overheads Account ₦10,000, Credit Loss Account ₦10,000
B. Debit Loss Account ₦10,000, Credit Factory Overheads Account ₦10,000
Correct C. Debit Factory Overheads Account ₦10,000, Credit Profit and Loss Account ₦10,000
D. Debit Profit and Loss Account ₦10,000, Credit Factory Overheads Account ₦10,000

Correct Answer: C

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Question 9
A company's cash book showed a balance of ₦50,000. The bank statement showed a balance of ₦60,000. The difference is due to a bank overdraft of ₦10,000. Prepare the necessary bank reconciliation statement.
Correct A. ₦50,000 | ₦60,000 | ₦10,000
B. ₦60,000 | ₦50,000 | ₦10,000
C. ₦50,000 | ₦50,000 | ₦10,000
D. ₦60,000 | ₦60,000 | ₦10,000

Correct Answer: A

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Question 10
A company's cash book showed a balance of ₦50,000. The bank statement showed a balance of ₦60,000. The difference is due to a bank overdraft of ₦10,000. Prepare the necessary bank reconciliation statement.
Correct A. ₦50,000 | ₦60,000 | ₦10,000
B. ₦60,000 | ₦50,000 | ₦10,000
C. ₦50,000 | ₦50,000 | ₦10,000
D. ₦60,000 | ₦60,000 | ₦10,000

Correct Answer: A

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Question 11
Determine the amount of depreciation on a machine that cost ₦120,000 and has a useful life of 5 years, with a residual value of ₦20,000. The machine is depreciated using the straight-line method.
A. ₦20,000
Correct B. ₦24,000
C. ₦28,000
D. ₦32,000

Correct Answer: B

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Question 12
A company has a capital of ₦500,000, divided equally among three partners. The profit for the year is ₦150,000. If the partners' drawings are ₦20,000 each, determine the profit-sharing ratio of the partners.
Correct A. 2:1:1
B. 1:1:2
C. 3:2:1
D. 1:2:3

Correct Answer: A

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Question 13
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives ₦15,000 in cash, determine the amount of share capital and the amount of share premium.
Correct A. ₦10,000, ₦5,000
B. ₦15,000, ₦10,000
C. ₦20,000, ₦15,000
D. ₦25,000, ₦20,000

Correct Answer: A

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Question 14
A company has a balance sheet as follows: ₦50,000 in cash, ₦30,000 in accounts receivable, ₦20,000 in inventory, and ₦10,000 in equipment. Determine the total assets of the company.
Correct A. ₦110,000
B. ₦120,000
C. ₦130,000
D. ₦140,000

Correct Answer: A

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Question 15
A company issues 5% debentures of ₦1,000 each. If the company receives ₦1,050 in cash, determine the amount of debenture capital and the amount of interest.
Correct A. ₦5,000, ₦25
B. ₦5,000, ₦50
C. ₦10,000, ₦50
D. ₦10,000, ₦100

Correct Answer: A

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Question 16
Determine the amount of goodwill to be written off in the year ended 31st December 2018, given that the goodwill account was valued at ₦120,000 at the beginning of the year and ₦90,000 at the end of the year.
Correct A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

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Question 17
A company's trading account for the year ended 31st December 2018 shows a profit of ₦150,000. The company's profit and loss account for the same period shows a net profit of ₦180,000. What is the amount of the company's non-trading income?
Correct A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

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Question 18
A company's balance sheet as at 31st December 2018 shows a total of ₦500,000 in the current assets section. The company's profit and loss account for the same period shows a net profit of ₦200,000. What is the amount of the company's depreciation for the year?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 19
A company's balance sheet as at 31st December 2018 shows a total of ₦300,000 in the non-current assets section. The company's profit and loss account for the same period shows a net loss of ₦100,000. What is the amount of the company's provision for doubtful debts?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 20
A company's trading account for the year ended 31st December 2018 shows a profit of ₦250,000. The company's profit and loss account for the same period shows a net profit of ₦280,000. What is the amount of the company's non-trading income?
Correct A. ₦30,000
B. ₦20,000
C. ₦10,000
D. ₦5,000

Correct Answer: A

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Question 21
A company issued 10,000 shares of 1 par value at a premium of 3 per share. The total amount received from the issue of shares is 350,000. Calculate the amount of share capital and the amount of share premium.
Correct A. ₦350,000
B. ₦350,000
C. ₦350,000
D. ₦350,000

Correct Answer: A

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Question 22
A company purchased a machine for ₦1,500,000. The machine has a useful life of 5 years and a residual value of ₦150,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦270,000
B. ₦270,000
C. ₦270,000
D. ₦270,000

Correct Answer: A

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Question 23
A government agency received a grant of ₦500,000 to construct a road. The agency spent ₦300,000 on labor and ₦150,000 on materials. Calculate the amount of cash received from the grant.
A. ₦500,000
Correct B. ₦450,000
C. ₦450,000
D. ₦450,000

Correct Answer: B

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Question 24
A company issued 5,000 debentures of ₦1,000 each at a discount of 5%. Calculate the amount of debenture capital and the amount of discount.
Correct A. ₦5,000,000
B. ₦5,000,000
C. ₦5,000,000
D. ₦5,000,000

Correct Answer: A

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Question 25
A company purchased a machine for ₦2,000,000. The machine has a useful life of 5 years and a residual value of ₦200,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦320,000
B. ₦320,000
C. ₦320,000
D. ₦320,000

Correct Answer: A

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