POST UTME SKYLINE UNIVERSITY 2020 Accounting | Objective
Practice these randomly selected questions to test your readiness.
Question 1
A company's bank statement shows a balance of ₦50,000. However, the company's cash book shows a balance of ₦60,000. What is the correct explanation for this discrepancy?
Question 2
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' while the corresponding credit balance in the account 'Rent Paid' is ₦20,000. What is the correct journal entry to rectify this error?
Question 3
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. The capital contributions of A and B are ₦60,000 and ₦40,000 respectively. Calculate the profit-sharing ratio.
Question 4
A company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a net profit of ₦250,000. The company's balance sheet shows a net worth of ₦500,000. What is the correct order of preparation of the financial statements?
Question 5
A company issued 5,000, 9% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of discount on the debentures.
Question 6
A company's trading account shows the following balances: Sales ₦150,000, Cost of Goods Sold ₦80,000. Prepare the company's profit and loss account.
Question 7
A company's cash book shows the following transactions:
| Date | Particulars | Debit | Credit |
| --- | --- | --- | --- |
| 1 Jan | Cash | ₦10,000 | |
| 2 Jan | Bank | | ₦15,000 |
| 3 Jan | Cash | | ₦5,000 |
| 4 Jan | Bank | ₦20,000 | |
| 5 Jan | Cash | | ₦8,000 |
Prepare the cash book and bank reconciliation statement.
Question 8
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
Question 9
A company's balance sheet as at 31 December 2020 is as follows:
| Assets | ₦ | Liabilities | ₦ |
| --- | --- | --- | --- |
| Cash | 50,000 | Bank Loan | 100,000 |
| Debtors | 150,000 | Share Capital | 200,000 |
| Stock | 100,000 | Profit | 50,000 |
| Total | 300,000 | Total | 450,000 |
Prepare the company's trading and profit and loss account for the year ended 31 December 2020.
Question 10
A company's balance sheet as of December 31, 2020, is as follows:
Assets
Cash ₦50,000
Accounts Receivable ₦30,000
Inventory ₦20,000
Total Assets ₦100,000
Liabilities
Accounts Payable ₦10,000
Salaries Payable ₦20,000
Total Liabilities ₦30,000
What is the total equity?
Question 11
A company uses the job-order costing method. The following data are available for the year:
Direct Materials ₦50,000
Direct Labor ₦30,000
Manufacturing Overhead ₦20,000
What is the total cost of goods manufactured for the year?
Question 12
A company maintains a cash book and bank reconciliation statement. The cash book balance is ₦150,000 and the bank statement balance is ₦180,000. The bank charges a service fee of ₦1,500 and the company has an outstanding deposit of ₦10,000. Calculate the bank reconciliation difference.
Question 13
A company uses the perpetual inventory system. On January 1, 2020, it had 1,000 units of a product in inventory at a cost of ₦50 per unit. During the year, 500 units were sold at ₦100 per unit, and 200 units were purchased at ₦60 per unit. What is the cost of goods sold for the year?
Question 14
A company purchases a machine for ₦500,000 and depreciates it by 10% per annum using the straight-line method. Calculate the depreciation for the first year.
Question 15
A company purchases a machine for ₦120,000. The machine has an expected useful life of 5 years and a residual value of ₦20,000. Calculate the annual depreciation using the straight-line method.
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