POST UTME RSU 2017 Accounting | Objective

Are you preparing for POST UTME RSU 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.

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Question 1
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
Correct B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000

Correct Answer: B

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Question 2
A company's trial balance showed the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, Common Stock ₦ 100,000, Dividends ₦ 10,000, Equipment ₦ 20,000, Interest Expense ₦ 5,000, Interest Income ₦ 3,000, Net Income ₦ 25,000, Retained Earnings ₦ 40,000, Salaries Expense ₦ 15,000, Sales Revenue ₦ 150,000, Taxes Payable ₦ 8,000, Utilities Expense ₦ 2,000. Prepare a balance sheet for the company.
A. ₦ 150,000
B. ₦ 180,000
Correct C. ₦ 200,000
D. ₦ 220,000

Correct Answer: C

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Question 3
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
Correct B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000

Correct Answer: B

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Question 4
A company's trial balance showed the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 30,000, Common Stock ₦ 100,000, Dividends ₦ 10,000, Equipment ₦ 20,000, Interest Expense ₦ 5,000, Interest Income ₦ 3,000, Net Income ₦ 25,000, Retained Earnings ₦ 40,000, Salaries Expense ₦ 15,000, Sales Revenue ₦ 150,000, Taxes Payable ₦ 8,000, Utilities Expense ₦ 2,000. Prepare a balance sheet for the company.
A. ₦ 150,000
B. ₦ 180,000
Correct C. ₦ 200,000
D. ₦ 220,000

Correct Answer: C

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Question 5
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
Correct B. ₦ 30,000
C. ₦ 40,000
D. ₦ 50,000

Correct Answer: B

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Question 6
A company issued 5,000, 10% preference shares of ₦10 each at a premium of ₦2 per share. Calculate the total amount received from the issue of these shares.
A. ₦100,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 7
A company's trial balance showed an error of ₦10,000 in the debit side of the sales account. The correct balance of the sales account is ₦150,000. Prepare the necessary journal entry to correct this error.
Correct A. Debit Sales A/c ₦10,000, Credit Sales Returns A/c ₦10,000
B. Debit Sales A/c ₦10,000, Credit Sales Returns A/c ₦10,000, Credit Sales A/c ₦10,000
C. Debit Sales Returns A/c ₦10,000, Credit Sales A/c ₦10,000
D. Debit Sales A/c ₦10,000, Credit Sales Returns A/c ₦10,000, Debit Sales A/c ₦10,000

Correct Answer: A

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Question 8
A company's balance sheet showed an excess of ₦20,000 in the debit side of the machinery account. The correct balance of the machinery account is ₦50,000. Prepare the necessary journal entry to correct this error.
Correct A. Debit Machinery A/c ₦20,000, Credit Machinery A/c ₦20,000
B. Debit Machinery A/c ₦20,000, Credit Machinery A/c ₦20,000, Credit Machinery A/c ₦20,000
C. Debit Machinery A/c ₦20,000, Credit Machinery A/c ₦20,000, Debit Machinery A/c ₦20,000
D. Debit Machinery A/c ₦20,000, Credit Machinery A/c ₦20,000, Credit Machinery A/c ₦20,000, Debit Machinery A/c ₦20,000

Correct Answer: A

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Question 9
A company's trading account showed a profit of ₦50,000. The company's balance sheet showed a decrease in the value of machinery by ₦10,000. Prepare the company's profit and loss account.
A. Profit ₦40,000, Loss ₦10,000
Correct B. Profit ₦50,000, Loss ₦10,000
C. Profit ₦60,000, Loss ₦10,000
D. Profit ₦40,000, Loss ₦20,000

Correct Answer: B

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Question 10
A company's balance sheet showed an excess of ₦30,000 in the debit side of the stock account. The correct balance of the stock account is ₦60,000. Prepare the necessary journal entry to correct this error.
Correct A. Debit Stock A/c ₦30,000, Credit Stock A/c ₦30,000
B. Debit Stock A/c ₦30,000, Credit Stock A/c ₦30,000, Credit Stock A/c ₦30,000
C. Debit Stock A/c ₦30,000, Credit Stock A/c ₦30,000, Debit Stock A/c ₦30,000
D. Debit Stock A/c ₦30,000, Credit Stock A/c ₦30,000, Credit Stock A/c ₦30,000, Debit Stock A/c ₦30,000

Correct Answer: A

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Question 11
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 20,000. Calculate the amount of share capital.
A. ₦ 120,000
Correct B. ₦ 140,000
C. ₦ 160,000
D. ₦ 180,000

Correct Answer: B

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Question 12
A trader purchased goods for ₦ 50,000 and sold them for ₦ 75,000. Calculate the profit percentage.
A. 25%
Correct B. 30%
C. 35%
D. 40%

Correct Answer: B

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Question 13
A company issued 5,000 shares of ₦ 10 each at a premium of ₦ 5 per share. The issue expenses were ₦ 15,000. Calculate the amount of share capital.
A. ₦ 75,000
Correct B. ₦ 85,000
C. ₦ 95,000
D. ₦ 105,000

Correct Answer: B

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Question 14
A partnership has two partners, A and B. A invested ₦ 20,000 and B invested ₦ 30,000. The profit is to be shared in the ratio 2:3. Calculate the share of profit of A.
A. ₦ 20,000
Correct B. ₦ 25,000
C. ₦ 30,000
D. ₦ 35,000

Correct Answer: B

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Question 15
A company issued 10,000 shares of ₦ 5 each at a premium of ₦ 2 per share. The issue expenses were ₦ 20,000. Calculate the amount of share capital.
A. ₦ 120,000
Correct B. ₦ 140,000
C. ₦ 160,000
D. ₦ 180,000

Correct Answer: B

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Question 16
A company uses the cash book to record all its financial transactions. The cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. What is the reason for the difference?
A. The company has not recorded all its financial transactions.
B. The bank has made an error in its statement.
Correct C. The company has not reconciled its cash book with the bank statement.
D. The company has not updated its cash book.

Correct Answer: C

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Question 17
A government agency uses the double-entry system to record its financial transactions. The journal entry for the purchase of a vehicle is as follows: Debit: Vehicle ₦500,000, Credit: Cash ₦500,000. What is the effect of this transaction on the agency's financial position?
A. The agency's assets increase by ₦500,000.
B. The agency's liabilities increase by ₦500,000.
Correct C. The agency's equity increases by ₦500,000.
D. The agency's financial position remains unchanged.

Correct Answer: C

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Question 18
A manufacturing company uses the departmental accounting system to record its financial transactions. The company has two departments: Production and Administration. The journal entry for the purchase of raw materials is as follows: Debit: Raw Materials ₦200,000, Credit: Production Department ₦200,000. What is the effect of this transaction on the company's financial position?
A. The company's assets increase by ₦200,000.
B. The company's liabilities increase by ₦200,000.
Correct C. The company's equity increases by ₦200,000.
D. The company's financial position remains unchanged.

Correct Answer: C

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Question 19
A public sector organization uses the control account system to record its financial transactions. The organization has a control account for its cash. The journal entry for the receipt of cash is as follows: Debit: Cash ₦100,000, Credit: Cash Control Account ₦100,000. What is the effect of this transaction on the organization's financial position?
A. The organization's assets increase by ₦100,000.
B. The organization's liabilities increase by ₦100,000.
Correct C. The organization's equity increases by ₦100,000.
D. The organization's financial position remains unchanged.

Correct Answer: C

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Question 20
A company uses the self-balancing ledger system to record its financial transactions. The company has a self-balancing ledger for its accounts payable. The journal entry for the payment of accounts payable is as follows: Debit: Accounts Payable ₦50,000, Credit: Cash ₦50,000. What is the effect of this transaction on the company's financial position?
A. The company's assets increase by ₦50,000.
Correct B. The company's liabilities decrease by ₦50,000.
C. The company's equity increases by ₦50,000.
D. The company's financial position remains unchanged.

Correct Answer: B

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Question 21
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
Correct A. ₦475,000
B. ₦475,500
C. ₦476,000
D. ₦476,500

Correct Answer: A

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Question 22
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦150,000 respectively. If the profit for the year is ₦50,000, and A's share of profit is 60%, calculate B's share of profit.
A. ₦20,000
Correct B. ₦25,000
C. ₦30,000
D. ₦35,000

Correct Answer: B

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Question 23
A company issued 10,000, 5% shares of ₦10 each at a premium of ₦2. If the issue expenses were ₦20,000, calculate the amount received from the share issue.
A. ₦120,000
B. ₦125,000
Correct C. ₦130,000
D. ₦135,000

Correct Answer: C

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Question 24
A company's trial balance showed a discrepancy of ₦10,000 between the debit and credit balances. The company's accountant suspected that the error was due to an incorrect posting of a transaction. The accountant decided to prepare a suspense account to rectify the error. Calculate the amount to be posted to the suspense account.
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 25
A company's balance sheet showed a capital of ₦500,000 and a profit of ₦200,000. If the company's accountant decided to distribute the profit in the ratio 3:2, calculate the amount to be distributed to the owner.
A. ₦300,000
Correct B. ₦320,000
C. ₦340,000
D. ₦360,000

Correct Answer: B

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