POST UTME RHEMA UNIVERSITY 2022 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's cash book shows a balance of ₦150,000, but the bank statement shows a balance of ₦120,000. The difference is due to a discrepancy in the cash book. The company's accountant has identified the following transactions that may have caused the discrepancy:
Transaction 1: A customer paid ₦20,000 by cheque, but the cheque was not deposited into the bank.
Transaction 2: The company paid ₦15,000 to a supplier by cash, but the payment was not recorded in the cash book.
Transaction 3: The company received ₦30,000 from a customer by bank transfer, but the transfer was not recorded in the cash book.
Transaction 4: The company paid ₦25,000 to an employee by cheque, but the cheque was not deposited into the bank.
Which of the following transactions is most likely to have caused the discrepancy in the cash book?
Question 2
A company's bank reconciliation statement shows a difference of ₦20,000 between the cash book balance and the bank statement balance. The company's accountant has identified the following transactions that may have caused the difference:
Transaction 1: A customer paid ₦10,000 by cheque, but the cheque was not deposited into the bank.
Transaction 2: The company paid ₦15,000 to a supplier by cash, but the payment was not recorded in the cash book.
Transaction 3: The company received ₦25,000 from a customer by bank transfer, but the transfer was not recorded in the cash book.
Transaction 4: The company paid ₦20,000 to an employee by cheque, but the cheque was not deposited into the bank.
Which of the following transactions is most likely to have caused the difference in the bank reconciliation statement?
Question 3
A company issues 5,000, 12% debentures of ₦50 each at a premium of 10%. The debentures are redeemable at the end of 3 years. Calculate the amount of interest to be paid annually.
Question 4
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the ending inventory is ₦1,200,000. If the company uses a perpetual inventory system, what is the cost of goods sold?
Question 5
A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. The company uses the straight-line method of depreciation. What is the annual depreciation charge?
Question 6
A company's cash book shows a balance of ₦250,000 on December 31st, but the bank statement shows a balance of ₦300,000. The bank statement also shows a credit of ₦50,000 for a loan received from a customer. What is the correct journal entry to reconcile the cash book and bank statement?
Question 7
A company issued 10,000 shares of ₦.50 each at a premium of ₦0.50 per share. Calculate the total amount received from the issue of shares.
Question 8
A company's trading account for the year ended 31st December 2021 is as follows: Sales ₦1,000,000, Cost of Goods Sold ₥0,000,000, Gross Profit ₥1,000,000. Calculate the company's net profit for the year.
Question 9
A company uses the cash book to record its transactions. The cash book shows a debit balance of ₦50,000. However, the company's bank statement shows a credit balance of ₦60,000. What is the reason for the discrepancy?
Question 10
A manufacturing company uses a job order costing system. The company has two departments: Cutting and Assembly. The Cutting department has a beginning balance of ₦50,000 in Work in Process (WIP) and adds ₦200,000 in direct materials and ₦150,000 in direct labor during the period. The Assembly department has a beginning balance of ₦30,000 in WIP and adds ₦100,000 in direct materials and ₦80,000 in direct labor during the period. What is the total cost of goods manufactured?
Question 11
A manufacturing company uses a job costing system. The following data are extracted from the company's records for a particular job:
Direct Materials: ₥ 10,000
Direct Labour: ₥ 20,000
Overheads: ₥ 30,000
Total Cost: ₥ 60,000
Calculate the percentage of total cost that represents the direct labour cost.
Question 12
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
Question 13
A company uses the straight-line method to depreciate its assets. The company purchases a machine for ₦500,000 and estimates its useful life to be 5 years. What is the annual depreciation expense?
Question 14
A company's cash book shows a credit balance of ₦15,000 in the cash account. However, the bank statement shows a debit balance of ₦20,000. What is the correct explanation for this discrepancy?
Question 15
A company issues 10,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
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