POST UTME RHEMA UNIVERSITY 2017 Accounting | Objective

Are you preparing for POST UTME RHEMA 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
A company's cash book shows a debit balance of ₦1,500,000. However, the bank statement shows a credit balance of ₦1,800,000. What is the reason for the discrepancy?
A. The company has not recorded a bank overdraft.
B. The company has not recorded a bank loan.
Correct C. The company has not recorded a bank reconciliation statement.
D. The company has not recorded a cash sale.

Correct Answer: C

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Question 2
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦1,200,000, what is the share of profit of partner A?
Correct A. ₦900,000
B. ₦600,000
C. ₦300,000
D. ₦400,000

Correct Answer: A

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Question 3
A company uses the double entry system of accounting. On January 1, 2020, it purchased a machine for ₦500,000. On December 31, 2020, the machine was valued at ₦600,000. What is the journal entry to record the increase in value of the machine?
Correct A. Debit Machine ₦100,000, Credit Profit ₦100,000
B. Debit Profit ₦100,000, Credit Machine ₦100,000
C. Debit Machine ₦100,000, Credit Loss ₦100,000
D. Debit Loss ₦100,000, Credit Machine ₦100,000

Correct Answer: A

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Question 4
A government agency is required to prepare a statement of cash flows. The statement shows a net increase in cash of ₦500,000. What is the reason for the increase?
A. The agency received a loan from the government.
Correct B. The agency sold an asset for cash.
C. The agency paid a dividend to its shareholders.
D. The agency received a grant from a donor organization.

Correct Answer: B

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Question 5
A company has the following ledger balances: Cash ₦200,000, Bank ₦300,000, Accounts Payable ₦400,000. What is the total amount of assets?
Correct A. ₦900,000
B. ₦600,000
C. ₦800,000
D. ₦700,000

Correct Answer: A

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Question 6
A company's trial balance shows an error of ₦1,500 in the debit side of the account. The correct balance is ₦12,000. What is the correct balance of the account?
A. ₦13,500
Correct B. ₦12,000
C. ₦10,500
D. ₦9,000

Correct Answer: B

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Question 7
A manufacturing company uses a job costing system. The following data is available for the month of January: Direct Materials: ₦120,000; Direct Labour: ₦90,000; Factory Overheads: ₦60,000. What is the total cost of production?
Correct A. ₦270,000
B. ₦270,000
C. ₦270,000
D. ₦270,000

Correct Answer: A

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Question 8
A company's ledger accounts are as follows: Cash: ₦100,000; Accounts Payable: ₦50,000; Common Stock: ₦200,000. What is the total equity of the company?
Correct A. ₦250,000
B. ₦250,000
C. ₦250,000
D. ₦250,000

Correct Answer: A

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Question 9
A company's trial balance shows an error of ₦1,500 in the debit side of the account. The correct balance is ₦12,000. What is the correct balance of the account?
A. ₦13,500
Correct B. ₦12,000
C. ₦10,500
D. ₦9,000

Correct Answer: B

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Question 10
A manufacturing company uses a job costing system. The following data is available for the month of January: Direct Materials: ₦120,000; Direct Labour: ₦90,000; Factory Overheads: ₦60,000. What is the total cost of production?
Correct A. ₦270,000
B. ₦270,000
C. ₦270,000
D. ₦270,000

Correct Answer: A

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Question 11
A partnership between two individuals, John and Jane, has the following capital accounts: John's capital = ₦150,000, Jane's capital = ₦120,000. If the partnership's profit for the year is ₦80,000, and the profit is divided in the ratio 2:3, calculate the amount of profit to be distributed to John.
A. ₦40,000
Correct B. ₦60,000
C. ₦80,000
D. ₦100,000

Correct Answer: B

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Question 12
A company uses the cash book to record its transactions. The cash book shows the following entries: Debit: Cash = ₦10,000, Credit: Bank = ₦5,000. What is the net effect on the company's cash balance?
Correct A. ₦5,000 decrease
B. ₦5,000 increase
C. ₦10,000 increase
D. ₦10,000 decrease

Correct Answer: A

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Question 13
A manufacturing company has the following departmental accounts: Production Department: ₦200,000, Sales Department: ₦150,000. If the company's total expenses for the year are ₦300,000, what is the amount of expenses allocated to the Production Department?
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 14
A company's bank reconciliation statement shows the following discrepancies: Bank statement balance = ₦50,000, Cash book balance = ₦40,000. What is the amount of the discrepancy?
A. ₦5,000
B. ₦10,000
Correct C. ₦20,000
D. ₦30,000

Correct Answer: C

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Question 15
A public sector organization has the following accounts: General Ledger: ₦500,000, Cash Book: ₦300,000. If the organization's total assets are ₦1,000,000, what is the amount of the organization's liabilities?
A. ₦200,000
B. ₦300,000
C. ₦400,000
Correct D. ₦500,000

Correct Answer: D

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. Calculate the total premium received.
Correct A. ₦50,000
B. ₦50,000
C. ₦50,000
D. ₦50,000

Correct Answer: A

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Question 17
A manufacturing company uses a job costing system. The following data is available for the month of January: Job No. 101, direct materials ₦15,000, direct labor ₦20,000, overheads ₦10,000. Job No. 102, direct materials ₦20,000, direct labor ₦25,000, overheads ₦15,000. Calculate the total cost of production for the month.
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 18
A company's cash book shows the following transactions: Cash received from customers ₦50,000, cash paid to suppliers ₦30,000, cash paid to employees ₦20,000, cash received from bank ₦10,000. Prepare a cash flow statement for the month.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 19
A company issued 10,000 ordinary shares of ₦10 each at a premium of 20%. Calculate the total premium received.
Correct A. ₦200,000
B. ₦200,000
C. ₦200,000
D. ₦200,000

Correct Answer: A

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Question 20
A manufacturing company uses a process costing system. The following data is available for the month of January: Direct materials ₦50,000, direct labor ₦60,000, overheads ₦30,000. Calculate the total cost of production for the month.
A. ₦140,000
Correct B. ₦160,000
C. ₦180,000
D. ₦200,000

Correct Answer: B

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Question 21
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦120,000. Prepare a single-entry ledger account for the cash.
Correct A. Cash Ledger Account
B. Bank Ledger Account
C. Accounts Payable Ledger Account
D. Accounts Receivable Ledger Account

Correct Answer: A

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Question 22
A company uses the double-entry system of accounting. The company's trial balance shows a debit balance of ₦150,000 in the account 'Office Equipment'. Prepare a journal entry to record the depreciation of the office equipment.
Correct A. Debit Office Equipment ₦150,000, Credit Depreciation Expense ₦150,000
B. Debit Office Equipment ₦150,000, Credit Accumulated Depreciation ₦150,000
C. Debit Accumulated Depreciation ₦150,000, Credit Office Equipment ₦150,000
D. Debit Depreciation Expense ₦150,000, Credit Office Equipment ₦150,000

Correct Answer: A

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Question 23
A company uses the double-entry system of accounting. The company's cash book shows a credit balance of ₦80,000. Prepare a journal entry to record the bank reconciliation.
A. Debit Cash ₦80,000, Credit Bank ₦80,000
Correct B. Debit Bank ₦80,000, Credit Cash ₦80,000
C. Debit Cash ₦80,000, Credit Bank Service Charge ₦80,000
D. Debit Bank Service Charge ₦80,000, Credit Cash ₦80,000

Correct Answer: B

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Question 24
A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦120,000. Prepare a single-entry ledger account for the cash.
Correct A. Cash Ledger Account
B. Bank Ledger Account
C. Accounts Payable Ledger Account
D. Accounts Receivable Ledger Account

Correct Answer: A

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Question 25
A company uses the double-entry system of accounting. The company's trial balance shows a debit balance of ₦150,000 in the account 'Office Equipment'. Prepare a journal entry to record the depreciation of the office equipment.
Correct A. Debit Office Equipment ₦150,000, Credit Depreciation Expense ₦150,000
B. Debit Office Equipment ₦150,000, Credit Accumulated Depreciation ₦150,000
C. Debit Accumulated Depreciation ₦150,000, Credit Office Equipment ₦150,000
D. Debit Depreciation Expense ₦150,000, Credit Office Equipment ₦150,000

Correct Answer: A

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