POST UTME REDEEMERS UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's profit and loss account for the year ended 31st December 2020 showed a profit of ₦1,500,000. The balance on the trading account was ₦500,000. The balance on the capital account was ₦2,000,000. The company's share capital was ₦3,000,000. What was the company's retained earnings at the end of the year?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 2
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The partnership's trial balance shows a debit balance of ₦10,000 in the account 'A's Capital' and a credit balance of ₦8,000 in the account 'B's Capital'. What is the correct journal entry to correct this discrepancy?
A. ₦2,000 debit to A's Capital and ₦2,000 credit to B's Capital
B. ₦2,000 debit to B's Capital and ₦2,000 credit to A's Capital
C. ₦4,000 debit to A's Capital and ₦4,000 credit to B's Capital
D. ₦6,000 debit to A's Capital and ₦6,000 credit to B's Capital
Question 3
A company uses the weighted average method of inventory valuation. If the cost of goods available for sale is ₦1,500,000, and the ending inventory is ₦1,200,000, what is the cost of goods sold?
A. ₦300,000
B. ₦400,000
C. ₦500,000
D. ₦600,000
Question 4
In a partnership account, the capital of two partners, A and B, is shared in the ratio 3:2. If the total capital is ₦120,000, calculate the amount of capital contributed by partner A.
A. ₦60,000
B. ₦72,000
C. ₦90,000
D. ₦108,000
Question 5
A company's balance sheet shows the following balances: Cash ₦150,000, Accounts Payable ₦100,000, Common Stock ₦200,000, and Retained Earnings ₦50,000. What is the company's total liabilities?
A. ₦250,000
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 6
A company's balance sheet shows a current asset of ₦50,000 in the account 'Accounts Receivable' and a current liability of ₦30,000 in the account 'Accounts Payable'. What is the correct accounting equation to represent this situation?
A. ₦50,000 = ₦30,000 + ₦20,000
B. ₦50,000 = ₦20,000 + ₦30,000
C. ₦30,000 = ₦50,000 - ₦20,000
D. ₦30,000 = ₦20,000 - ₦50,000
Question 7
A company issued 10,000 shares of ¡ 10 each at a premium of ¡ 2 per share. Calculate the total amount received from the issue of shares.
A. ¡ 120,000
B. ¡ 140,000
C. ¡ 160,000
D. ¡ 180,000
Question 8
A company's trial balance shows a debit balance of ₦20,000 in the account 'Salaries Expense' and a credit balance of ₦15,000 in the account 'Salaries Payable'. What is the correct journal entry to correct this discrepancy?
A. ₦5,000 debit to Salaries Expense and ₦5,000 credit to Salaries Payable
B. ₦5,000 debit to Salaries Payable and ₦5,000 credit to Salaries Expense
C. ₦10,000 debit to Salaries Expense and ₦10,000 credit to Salaries Payable
D. ₦10,000 debit to Salaries Payable and ₦10,000 credit to Salaries Expense
Question 9
A company's financial statements for the year ended December 31, 2020, are as follows: Total Revenue ₦500,000, Total Expenses ₦300,000, and Net Income ₦200,000. Prepare the company's statement of cash flows.
A. Operating Activities ₦200,000, Investing Activities ₦100,000, Financing Activities ₦0
B. Operating Activities ₦300,000, Investing Activities ₦0, Financing Activities ₦0
C. Operating Activities ₦400,000, Investing Activities ₦100,000, Financing Activities ₦0
D. Operating Activities ₦400,000, Investing Activities ₦0, Financing Activities ₦0
Question 10
A manufacturing company produces two products, A and B. Product A requires 2 hours of direct labor and Product B requires 3 hours of direct labor. If the company works 40 hours in a week, how many units of Product A can be produced?
A. 20 units
B. 25 units
C. 30 units
D. 35 units
Question 11
A public sector organization has a cash book balance of ₦1,500,000 and a bank statement balance of ₦1,800,000. The bank statement includes a credit of ₦200,000 for an unearned revenue. What is the correct journal entry to reconcile the cash book and bank statement?
A. ₦1,500,000 debit to cash, ₦1,800,000 credit to bank
B. ₦200,000 debit to cash, ₦200,000 credit to bank
C. ₦1,800,000 debit to bank, ₦1,500,000 credit to cash
D. ₦1,500,000 debit to bank, ₦1,800,000 credit to cash
Question 12
In a partnership account, what is the correct method for calculating the capital of a partner who has been absent for a year?
A. Capital at the beginning of the year
B. Capital at the end of the year
C. Average capital for the year
D. Capital at the beginning of the year plus any drawings made during the year
Question 13
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge for an asset costing ₦500,000?
A. ₦90,000
B. ₦95,000
C. ₦100,000
D. ₦105,000
Question 14
A company has the following transactions: Purchased office equipment for ₦120,000; sold office equipment for ₦80,000; purchased office equipment for ₦150,000. What is the net increase in office equipment?
A. ₦30,000
B. ₦50,000
C. ₦70,000
D. ₦90,000
Question 15
A partnership is formed between two individuals, A and B, with initial capital contributions of ₦50,000 and ₦30,000 respectively. After one year, the partnership earns a profit of ₦120,000. If A's share of the profit is ₦60,000, what is B's share of the profit?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000

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