POST UTME REDEEMERS UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 5,000 debentures of ₦ 100 each at a discount of ₦ 5 per debenture. The company's debenture account was credited with ₦ 450,000. What is the amount of the discount on the debentures?
A. ₦ 25,000
B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000
Question 2
A company's trial balance showed the following balances: Machinery ₦ 50,000, Accrued Expenses ₦ 20,000, and Drawings ₦ 10,000. The company's accountant prepared the following journal entry: Machinery ₦ 5,000, Accrued Expenses ₦ 5,000, and Drawings ₦ 5,000. What is the correct adjustment to the Machinery account?
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000
Question 3
A company uses the job costing method to value its work-in-progress. The following information is available for the year ended December 31, 2023:
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 4
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable after 5 years. Calculate the amount of discount on the debentures.
A. ₦250,000
B. ₦500,000
C. ₦750,000
D. ₦1,000,000
Question 5
A company's balance sheet showed the following balances: Share Capital ₦ 100,000, Retained Earnings ₦ 50,000, and Accumulated Depreciation ₦ 20,000. The company's accountant prepared the following journal entry: Share Capital ₦ 10,000, Retained Earnings ₦ 10,000, and Accumulated Depreciation ₦ 10,000. What is the correct adjustment to the Share Capital account?
A. ₦ 10,000
B. ₦ 20,000
C. ₦ 30,000
D. ₦ 40,000
Question 6
The following is a diagram of a manufacturing process. Identify the type of manufacturing process shown.
A. Batch Process
B. Continuous Process
C. Job Process
D. Project Process
Question 7
A company's trial balance shows the following balances: Accounts Payable ₦200,000, Accounts Receivable ₦150,000, Sales Revenue ₦500,000, Cost of Goods Sold ₦300,000. Prepare a balance sheet for the company.
A. ₦750,000
B. ₦800,000
C. ₦850,000
D. ₦900,000
Question 8
A company's trial balance shows a debit balance of ₦20,000 in the account 'Cash' and a credit balance of ₦15,000 in the account 'Bank'. What is the correct treatment of this discrepancy?
A. The discrepancy should be treated as an error and corrected by adjusting the accounts.
B. The discrepancy should be treated as a difference between the debit and credit balances and ignored.
C. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a journal entry.
D. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a correcting entry.
Question 9
A company's trial balance shows a debit balance of ₦10,000 in the account 'Rent Received' and a credit balance of ₦5,000 in the account 'Rent Paid'. What is the correct treatment of this discrepancy?
A. The discrepancy should be treated as an error and corrected by adjusting the accounts.
B. The discrepancy should be treated as a difference between the debit and credit balances and ignored.
C. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a journal entry.
D. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a correcting entry.
Question 10
A company produces two products, X and Y, using two machines, A and B. The production process for product X requires 2 hours on machine A and 3 hours on machine B, while product Y requires 3 hours on machine A and 2 hours on machine B. If machine A is available for 120 hours and machine B is available for 100 hours, how many units of product X can be produced?
A. 300 units
B. 400 units
C. 500 units
D. 600 units
Question 11
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. If the profit for the year is ₦60,000, how much will A receive as his share of the profit?
A. ₦36,000
B. ₦40,000
C. ₦42,000
D. ₦44,000
Question 12
A company's trial balance shows a debit balance of ₦40,000 in the account 'Salaries Payable' and a credit balance of ₦35,000 in the account 'Salaries Expense'. What is the correct treatment of this discrepancy?
A. The discrepancy should be treated as an error and corrected by adjusting the accounts.
B. The discrepancy should be treated as a difference between the debit and credit balances and ignored.
C. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a journal entry.
D. The discrepancy should be treated as a difference between the debit and credit balances and adjusted by making a correcting entry.
Question 13
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 50,000. The company's share capital account was credited with ₦ 200,000. What is the amount of the share premium account?
A. ₦ 150,000
B. ₦ 200,000
C. ₦ 250,000
D. ₦ 300,000
Question 14
A company's balance sheet as at December 31, 2022, showed the following balances: Cash ₦50,000, Accounts Payable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦30,000, and Dividends ₦5,000. Prepare the company's income statement for the year ended December 31, 2022.
A. ₦195,000
B. ₦200,000
C. ₦205,000
D. ₦210,000
Question 15
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. If the company receives a total of ₦15,000, what is the amount of the premium received?
A. ₦4,000
B. ₦5,000
C. ₦6,000
D. ₦7,000

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: