POST UTME SKYLINE UNIVERSITY 2020 Accounting | Objective

Are you preparing for POST UTME SKYLINE UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2020 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
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.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 2
A company's profit for the year ended 31st December 2019 was ₦1,200,000. The company's capital was ₦500,000 and the drawings of the proprietor were ₦50,000. Calculate the proprietor's capital at the end of the year.
A. ₦450,000
B. ₦550,000
Correct C. ₦650,000
D. ₦750,000

Correct Answer: C

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Question 3
A company issued 10,000, 5% shares of ₦10 each at a premium of 20%. The company's profit for the year ended 31st December 2019 was ₦1,500,000. Calculate the amount of dividend to be paid to the shareholders.
A. ₦75,000
B. ₦85,000
Correct C. ₦95,000
D. ₦105,000

Correct Answer: C

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Question 4
A company's profit for the year ended 31st December 2019 was ₦1,800,000. The company's capital was ₦600,000 and the drawings of the proprietor were ₦60,000. Calculate the proprietor's capital at the end of the year.
A. ₦640,000
B. ₦740,000
Correct C. ₦840,000
D. ₦940,000

Correct Answer: C

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Question 5
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.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 6
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.
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

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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.
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 8
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.
A. ₦150,000
B. ₦200,000
C. ₦250,000
Correct D. ₦300,000

Correct Answer: D

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Question 9
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.
A. ₦10,000
B. ₦15,000
Correct C. ₦20,000
D. ₦25,000

Correct Answer: C

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Question 10
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.
A. ₦250,000
Correct B. ₦500,000
C. ₦750,000
D. ₦1,000,000

Correct Answer: B

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Question 11
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?
A. ₦25,000
Correct B. ₦30,000
C. ₦35,000
D. ₦40,000

Correct Answer: B

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Question 12
A company's trial balance as of December 31, 2020, is as follows: Debit Accounts Payable ₦10,000 Salaries Expense ₦20,000 Rent Expense ₦15,000 Utilities Expense ₦5,000 Credit Cash ₦50,000 Accounts Receivable ₦30,000 Common Stock ₦100,000 Retained Earnings ₦80,000 What is the correct balance in the Retained Earnings account?
Correct A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

Correct Answer: A

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Question 13
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?
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 14
A company's income statement for the year ended December 31, 2020, is as follows: Sales ₦500,000 Cost of Goods Sold ₦250,000 Gross Profit ₦250,000 Operating Expenses ₦100,000 Net Income ₦150,000 What is the gross profit margin?
A. 50%
Correct B. 60%
C. 70%
D. 80%

Correct Answer: B

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Question 15
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?
A. ₦70,000
B. ₦80,000
C. ₦90,000
Correct D. ₦100,000

Correct Answer: D

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Question 16
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a debit of ₦20,000 for a dishonored cheque. What is the correct journal entry to reconcile the cash book and bank statement?
Correct A. ₦20,000 Debit Cash, ₦20,000 Credit Bank
B. ₦20,000 Debit Bank, ₦20,000 Credit Cash
C. ₦20,000 Debit Bank, ₦20,000 Credit Suspense Account
D. ₦20,000 Debit Suspense Account, ₦20,000 Credit Bank

Correct Answer: A

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Question 17
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.
Correct A. ₦50,000
B. ₦45,000
C. ₦40,000
D. ₦35,000

Correct Answer: A

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Question 18
A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 19
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?
Correct A. Trading Account, Profit and Loss Account, Balance Sheet
B. Balance Sheet, Profit and Loss Account, Trading Account
C. Profit and Loss Account, Trading Account, Balance Sheet
D. Trading Account, Balance Sheet, Profit and Loss Account

Correct Answer: A

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Question 20
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦120,000. The difference is due to a debit of ₦20,000 for a dishonored cheque. What is the correct journal entry to reconcile the cash book and bank statement?
Correct A. ₦20,000 Debit Cash, ₦20,000 Credit Bank
B. ₦20,000 Debit Bank, ₦20,000 Credit Cash
C. ₦20,000 Debit Bank, ₦20,000 Credit Suspense Account
D. ₦20,000 Debit Suspense Account, ₦20,000 Credit Bank

Correct Answer: A

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Question 21
A company uses the double entry system to record transactions. If the company's assets increase by ₦10,000 and its liabilities increase by ₦8,000, what is the effect on the company's equity?
Correct A. ₦2,000 increase
B. ₦2,000 decrease
C. ₦0 change
D. ₦2,000 increase and ₦2,000 decrease

Correct Answer: A

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Question 22
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership and partner B has a 40% interest. If the partnership has a profit of ₦120,000, what is the amount of profit that partner A will receive?
Correct A. ₦72,000
B. ₦48,000
C. ₦60,000
D. ₦80,000

Correct Answer: A

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Question 23
A company uses the straight-line method to depreciate its assets. If the asset has a useful life of 5 years and a cost of ₦50,000, what is the annual depreciation expense?
A. ₦10,000
Correct B. ₦12,500
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 24
A company produces two products, X and Y. Product X has a selling price of ₦100 and a variable cost of ₦60. Product Y has a selling price of ₦120 and a variable cost of ₦80. If the company sells 100 units of product X and 50 units of product Y, what is the total contribution margin?
A. ₦10,000
Correct B. ₦12,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 25
A company has a machine that costs ₦50,000 and has a useful life of 5 years. If the company uses the double-declining balance method to depreciate the machine, what is the depreciation expense for the first year?
A. ₦10,000
Correct B. ₦12,500
C. ₦15,000
D. ₦20,000

Correct Answer: B

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