POST UTME RHEMA UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's profit and loss account shows the following balances: | Revenue | Expense | Profit | | --- | --- | --- | | ₦1,200 | ₦800 | ₦400 | What is the net profit?
A. ₦400
B. ₦600
C. ₦800
D. ₦1,000
Question 2
A company uses the single entry system to record its financial transactions. The company's cash book shows a balance of ₦80,000. However, the company's bank statement shows a balance of ₦100,000. What is the reason for the difference?
A. The company has not recorded all its financial transactions.
B. The bank has charged a fee for the overdraft.
C. The company has not reconciled its cash book with the bank statement.
D. The company has not recorded a deposit made by a customer.
Question 3
A company's trial balance shows an error of ₦1,000 due to an incorrect posting of an account. The error is discovered during the preparation of the financial statements. The company's accountant has prepared the following journal entry to correct the error: Debit: ₦1,000, Credit: ₦1,000. What is the correct journal entry to correct the error?
A. Debit: ₦1,000, Credit: ₦1,000
B. Debit: ₦1,000, Credit: ₦1,000 (to correct the error)
C. Debit: ₦1,000, Credit: ₦1,000 (to correct the error in the trial balance)
D. Debit: ₦1,000, Credit: ₦1,000 (to correct the error in the financial statements)
Question 4
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. Calculate the total amount received from the issue of shares.
A. ₦ 20,000
B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000
Question 5
A company has the following transactions: Purchased office supplies for ₦10,000, paid salaries of ₦20,000, and purchased equipment for ₦30,000. What is the total amount of cash outflows?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 6
A company uses the double-declining balance method to depreciate its assets. The asset has a cost of ₦300,000 and a useful life of 5 years. What is the annual depreciation charge?
A. ₦60,000
B. ₦70,000
C. ₦80,000
D. ₦90,000
Question 7
A company's balance sheet as at 31st December, 2020, was as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦30,000 Stock: ₦40,000 Total Assets: ₦120,000 Liabilities: Creditors: ₦20,000 Capital: ₦100,000 Total Liabilities: ₦120,000 The company's accountant wants to prepare a new balance sheet as at 31st December, 2021. The company's cash balance as at 31st December, 2021, is ₦60,000. The debtors' balance as at 31st December, 2021, is ₦35,000. The stock balance as at 31st December, 2021, is ₦45,000. The creditors' balance as at 31st December, 2021, is ₦22,000. The capital balance as at 31st December, 2021, is ₦105,000. Prepare the new balance sheet.
A. ₦140,000
B. ₦130,000
C. ₦120,000
D. ₦110,000
Question 8
A company has the following transactions: Purchased office supplies for ₦10,000, paid salaries of ₦20,000, and purchased equipment for ₦30,000. What is the total amount of cash inflows?
A. ₦0
B. ₦10,000
C. ₦20,000
D. ₦30,000
Question 9
A company's balance sheet as at 31st December, 2020, was as follows: ₦ Assets: Cash: ₦50,000 Debtors: ₦30,000 Stock: ₦40,000 Total Assets: ₦120,000 Liabilities: Creditors: ₦20,000 Capital: ₦100,000 Total Liabilities: ₦120,000 The company's accountant wants to prepare a new balance sheet as at 31st December, 2021. The company's cash balance as at 31st December, 2021, is ₦60,000. The debtors' balance as at 31st December, 2021, is ₦35,000. The stock balance as at 31st December, 2021, is ₦45,000. The creditors' balance as at 31st December, 2021, is ₦22,000. The capital balance as at 31st December, 2021, is ₦105,000. Prepare the new balance sheet.
A. ₦140,000
B. ₦130,000
C. ₦120,000
D. ₦110,000
Question 10
A company has a capital of ₦1,500,000, divided into 150,000 ordinary shares of ₦10 each. If the company issues 20% of its shares at a premium of ₦5 per share, calculate the amount received from the issue of shares.
A. ₦300,000
B. ₦375,000
C. ₦450,000
D. ₦525,000
Question 11
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent and Rates' account. However, the company's accounting records show that it paid ₦20,000 for rent and rates during the year. Prepare the necessary journal entry to correct the error.
A. ₦15,000
B. ₦20,000
C. ₦5,000
D. ₦10,000
Question 12
A partnership has two partners, A and B. The capital accounts of A and B are ₦ 50,000 and ₦ 30,000 respectively. If the profit for the year is ₦ 20,000, and A's share of profit is 60%, calculate the amount of profit to be distributed to A.
A. ₦ 12,000
B. ₦ 15,000
C. ₦ 18,000
D. ₦ 20,000
Question 13
A partnership firm has two partners, A and B. The capital accounts of A and B are £ 50,000 and £ 30,000 respectively. If the firm makes a profit of £ 10,000, calculate the share of profit of A and B.
A. A: £ 5,000, B: £ 5,000
B. A: £ 6,667, B: £ 3,333
C. A: £ 7,500, B: £ 2,500
D. A: £ 8,333, B: £ 1,667
Question 14
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from debenture holders.
A. ₦450,000
B. ₦475,000
C. ₦500,000
D. ₦525,000
Question 15
A company uses the straight-line method to depreciate its assets. The asset has a cost of ₦200,000 and a useful life of 5 years. What is the annual depreciation charge?
A. ₦40,000
B. ₦50,000
C. ₦60,000
D. ₦80,000

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