POST UTME REDEEMERS UNIVERSITY 2019 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 2019 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
A company's assets are valued at ₦10,000,000. If the company uses the straight-line method of depreciation, and the asset's useful life is 5 years, what is the annual depreciation charge?
A. ₦2,000,000
B. ₦1,500,000
Correct C. ₦1,000,000
D. ₦500,000

Correct Answer: C

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Question 2
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
Correct A. ₦105,000,000
B. ₦100,000,000
C. ₦95,000,000
D. ₦90,000,000

Correct Answer: A

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Question 3
A company's trial balance shows the following balances: Machinery ₦50,000, Depreciation Expense ₦10,000. What is the net book value of the machinery?
Correct A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000

Correct Answer: A

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Question 4
A company has two departments: Manufacturing and Sales. The Manufacturing department has a cost of goods sold of ₦500,000 and a direct labor cost of ₦200,000. The Sales department has a cost of goods sold of ₦300,000 and a direct labor cost of ₦150,000. What is the total cost of goods sold for the company?
A. ₦800,000
B. ₦900,000
Correct C. ₦1,000,000
D. ₦1,100,000

Correct Answer: C

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Question 5
A partnership has two partners: John and Jane. John has a 60% interest in the partnership and Jane has a 40% interest. If the partnership has a net income of ₦100,000, what is John's share of the net income?
Correct A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000

Correct Answer: A

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Question 6
A company manufactures two products, X and Y. Product X requires 2 hours of direct labor and 3 hours of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 8 hours a day and produces 100 units of product X and 50 units of product Y, what is the total labor cost for the day?
A. ₦120,000
B. ₦150,000
Correct C. ₦180,000
D. ₦200,000

Correct Answer: C

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Question 7
A company's trial balance as at 31st December 2022 is as follows: Debit: ₦100,000, Credit: ₦120,000. What is the correct journal entry to rectify the discrepancy?
Correct A. ₦20,000 debit, ₦20,000 credit
B. ₦20,000 credit, ₦20,000 debit
C. ₦10,000 debit, ₦10,000 credit
D. ₦10,000 credit, ₦10,000 debit

Correct Answer: A

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Question 8
A company's cash book shows the following transactions: ₦10,000 cash received, ₦8,000 cash paid, ₦5,000 bank deposit, ₦3,000 bank withdrawal. What is the bank reconciliation statement?
A. ₦3,000 bank overdraft
Correct B. ₦3,000 bank credit
C. ₦5,000 bank overdraft
D. ₦5,000 bank credit

Correct Answer: B

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Question 9
A company's final accounts for the year ended 31st December 2022 are as follows: Trading profit: ₦150,000, Profit before tax: ₦180,000, Tax: ₦30,000. What is the net profit for the year?
A. ₦150,000
B. ₦180,000
Correct C. ₦210,000
D. ₦240,000

Correct Answer: C

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Question 10
A company's balance sheet as at 31st December 2022 is as follows: Assets: ₦200,000, Liabilities: ₦150,000, Equity: ₦50,000. What is the ratio of equity to liabilities?
A. 1:1
B. 1:2
Correct C. 2:1
D. 3:1

Correct Answer: C

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Question 11
A company issued 5,000 shares of 10 par value at a premium of 5 per share. Calculate the total amount received from the issue of shares.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 12
A company's trial balance showed an error of ₦10,000 in the accounts payable account. The correct balance should be ₦50,000. Prepare the necessary journal entry to rectify the error.
A. Debit Accounts Payable ₦60,000, Credit Cash ₦60,000
B. Debit Accounts Payable ₦40,000, Credit Cash ₦40,000
Correct C. Debit Accounts Payable ₦50,000, Credit Cash ₦50,000
D. Debit Accounts Payable ₦60,000, Credit Cash ₦40,000

Correct Answer: C

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Question 13
A company issued 10,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦950,000
Correct B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000

Correct Answer: B

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Question 14
A company's assets are valued at ₦1,000,000. The company's liabilities are ₦500,000. Calculate the company's net worth.
A. ₦500,000
Correct B. ₦750,000
C. ₦1,000,000
D. ₦1,500,000

Correct Answer: B

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Question 15
A company's depreciation policy is to depreciate its assets by 10% per annum. If the asset's original value is ₦100,000, calculate the asset's value after 2 years.
Correct A. ₦72,000
B. ₦80,000
C. ₦90,000
D. ₦100,000

Correct Answer: A

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Question 16
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received'. What is the correct journal entry to record the rent received?
A. ₦15,000 debit to Rent Received
Correct B. ₦15,000 credit to Rent Received
C. ₦15,000 debit to Rent Paid
D. ₦15,000 credit to Rent Paid

Correct Answer: B

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Question 17
A business has the following transactions: Purchased office supplies for ₦10,000, paid ₦5,000 cash, and purchased office equipment for ₦20,000. What is the total amount of cash paid?
Correct A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: A

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Question 18
A company's bank statement shows a balance of ₦50,000, but the company's cash book shows a balance of ₦60,000. What is the correct bank reconciliation?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 19
A business has the following transactions: Purchased office supplies for ₦10,000, paid ₦5,000 cash, and purchased office equipment for ₦20,000. What is the total amount of office supplies purchased?
Correct A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: A

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Question 20
A company's trial balance shows a credit balance of ₦15,000 in the account 'Rent Paid'. What is the correct journal entry to record the rent paid?
A. ₦15,000 credit to Rent Paid
Correct B. ₦15,000 debit to Rent Paid
C. ₦15,000 credit to Rent Received
D. ₦15,000 debit to Rent Received

Correct Answer: B

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Question 21
A partnership is formed by three individuals, A, B, and C, who contribute ₦100,000, ₦150,000, and ₦200,000 respectively. The partnership agreement states that the profits will be shared in the ratio 2:3:4. If the partnership earns a profit of ₦500,000, what is the share of each partner?
A. ₦200,000
Correct B. ₦300,000
C. ₦400,000
D. ₦500,000

Correct Answer: B

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Question 22
A company purchases a machine for ₦1,500,000 and depreciates it by 10% per annum. If the company uses the straight-line method of depreciation, what is the value of the machine after 3 years?
Correct A. ₦1,350,000
B. ₦1,400,000
C. ₦1,450,000
D. ₦1,500,000

Correct Answer: A

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Question 23
A manufacturing company produces 10,000 units of a product in a month. The company sells 8,000 units at ₦50 each and 2,000 units at ₦75 each. What is the total revenue for the month?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
Correct D. ₦1,200,000

Correct Answer: D

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Question 24
A company issues 10,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦150,000, what is the amount received from the issue of shares?
A. ₦100,000
B. ₦120,000
C. ₦130,000
Correct D. ₦150,000

Correct Answer: D

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Question 25
A company purchases a machine for ₦1,000,000 and depreciates it by 10% per annum using the reducing balance method. What is the value of the machine after 2 years?
A. ₦900,000
B. ₦920,000
Correct C. ₦940,000
D. ₦960,000

Correct Answer: C

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