POST UTME SKYLINE UNIVERSITY 2024 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 2024 Accounting (Objective) questions designed to simulate the real exam environment.

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Question 1
Determine the number of shares that can be issued by XYZ Limited if the company has a capital of ₦1,500,000 and the face value of each share is ₦10.
A. 15,000
Correct B. 150,000
C. 1,500,000
D. 15,000,000

Correct Answer: B

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Question 2
A company's trial balance shows an error of ₦10,000. The error is due to an omission of a transaction. Prepare the necessary journal entry to rectify the error.
Correct A. Debit Cash ₦10,000, Credit Profit and Loss Account ₦10,000
B. Debit Profit and Loss Account ₦10,000, Credit Cash ₦10,000
C. Debit Profit and Loss Account ₦10,000, Credit Capital Account ₦10,000
D. Debit Capital Account ₦10,000, Credit Profit and Loss Account ₦10,000

Correct Answer: A

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Question 3
A company's balance sheet shows an asset of ₦50,000, which is to be depreciated over a period of 5 years. Calculate the annual depreciation.
Correct A. ₦10,000
B. ₦5,000
C. ₦20,000
D. ₦15,000

Correct Answer: A

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Question 4
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦120,000, calculate the share of profit of partner A.
Correct A. ₦90,000
B. ₦60,000
C. ₦80,000
D. ₦100,000

Correct Answer: A

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Question 5
A company issues 1,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
Correct A. ₦95,000
B. ₦100,000
C. ₦105,000
D. ₦110,000

Correct Answer: A

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Question 6
A company uses the single-entry system of accounting. The following transactions were recorded during the year: Debit: Raw Materials ¡ 10,000, Work-in-Progress ¡ 20,000, Finished Goods ¡ 30,000, and Sales ¡ 50,000. Credit: Purchases ¡ 40,000, Wages ¡ 15,000, and Cost of Goods Sold ¡ 60,000.
A. ₦10,000
B. ₦20,000
C. ₦30,000
Correct D. ₦40,000

Correct Answer: D

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Question 7
A public sector organization has the following transactions: Debit: Salaries ¡ 100,000, Travel Expenses ¡ 20,000, and Office Supplies ¡ 10,000. Credit: Cash ¡ 130,000.
A. ₦100,000
B. ₦120,000
Correct C. ₦130,000
D. ₦140,000

Correct Answer: C

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Question 8
A company prepares a trial balance. The following accounts are listed: Debit: Raw Materials ¡ 50,000, Work-in-Progress ¡ 30,000, Finished Goods ¡ 20,000, and Sales ¡ 40,000. Credit: Purchases ¡ 60,000, Wages ¡ 25,000, and Cost of Goods Sold ¡ 55,000.
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 9
A company uses the self-balancing ledger system. The following transactions were recorded during the year: Debit: Raw Materials ¡ 10,000, Work-in-Progress ¡ 20,000, Finished Goods ¡ 30,000, and Sales ¡ 50,000. Credit: Purchases ¡ 40,000, Wages ¡ 15,000, and Cost of Goods Sold ¡ 60,000.
A. ₦10,000
B. ₦20,000
C. ₦30,000
Correct D. ₦40,000

Correct Answer: D

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Question 10
A public sector organization has the following transactions: Debit: Salaries ¡ 100,000, Travel Expenses ¡ 20,000, and Office Supplies ¡ 10,000. Credit: Cash ¡ 130,000.
A. ₦100,000
B. ₦120,000
Correct C. ₦130,000
D. ₦140,000

Correct Answer: C

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Question 11
A company issued 10,000 9% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
Correct B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000

Correct Answer: B

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Question 12
A company's trial balance showed an error of ₦5,000 due to an incorrect posting of a sale. The error was discovered when the company's accountant prepared the financial statements. What is the correct journal entry to rectify the error?
Correct A. Debit Sales A/c ₦5,000, Credit Profit & Loss A/c ₦5,000
B. Debit Profit & Loss A/c ₦5,000, Credit Sales A/c ₦5,000
C. Debit Sales A/c ₦5,000, Credit Cash A/c ₦5,000
D. Debit Profit & Loss A/c ₦5,000, Credit Cash A/c ₦5,000

Correct Answer: A

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Question 13
A company's bank statement showed a balance of ₦120,000, but the company's cash book showed a balance of ₦150,000. The difference is due to an outstanding cheque of ₦15,000 and a deposit in transit of ₦5,000. What is the correct bank reconciliation statement?
Correct A. Bank Balance ₦120,000, Cash Book Balance ₦150,000, Outstanding Cheque ₦15,000, Deposit in Transit ₦5,000
B. Bank Balance ₦150,000, Cash Book Balance ₦120,000, Outstanding Cheque ₦15,000, Deposit in Transit ₦5,000
C. Bank Balance ₦120,000, Cash Book Balance ₦150,000, Outstanding Cheque ₦5,000, Deposit in Transit ₦15,000
D. Bank Balance ₦150,000, Cash Book Balance ₦120,000, Outstanding Cheque ₦5,000, Deposit in Transit ₦15,000

Correct Answer: A

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Question 14
A company's manufacturing account showed a cost of goods sold of ₦500,000, but the company's trading account showed a sales revenue of ₦750,000. What is the correct profit or loss for the period?
Correct A. Profit ₦250,000
B. Loss ₦250,000
C. Profit ₦500,000
D. Loss ₦500,000

Correct Answer: A

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Question 15
A company's departmental accounts showed a profit of ₦100,000 in the sales department and a loss of ₦50,000 in the production department. What is the overall profit or loss for the period?
Correct A. Profit ₦50,000
B. Loss ₦50,000
C. Profit ₦100,000
D. Loss ₦100,000

Correct Answer: A

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Question 16
A partnership is formed between two individuals, A and B, with a capital contribution of ₦500,000 and ₦300,000 respectively. The partnership agreement states that profits and losses will be shared in the ratio 3:2. If the partnership makes a profit of ₦150,000, how much will A receive?
Correct A. ₦180,000
B. ₦120,000
C. ₦150,000
D. ₦200,000

Correct Answer: A

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Question 17
A company uses the double-entry system of accounting. The following transactions are recorded in the journal: Debit Cash ₦10,000, Credit Accounts Payable ₦5,000, Debit Equipment ₦20,000, Credit Accounts Receivable ₦15,000. What is the net effect on the company's cash position?
A. ₦5,000 decrease
Correct B. ₦5,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase

Correct Answer: B

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Question 18
A company has the following ledger balances: Cash ₦50,000, Accounts Payable ₦20,000, Equipment ₦30,000, Accounts Receivable ₦40,000. What is the total value of the company's assets?
A. ₦120,000
B. ₦140,000
C. ₦160,000
Correct D. ₦180,000

Correct Answer: D

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Question 19
A company uses the single-entry system of accounting. The following transactions are recorded: Debit Cash ₦10,000, Credit Accounts Payable ₦5,000, Debit Equipment ₦20,000, Credit Accounts Receivable ₦15,000. What is the net effect on the company's cash position?
A. ₦5,000 decrease
Correct B. ₦5,000 increase
C. ₦10,000 decrease
D. ₦10,000 increase

Correct Answer: B

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Question 20
A company has the following cash book balances: Cash ₦50,000, Bank ₦30,000, Discounts ₦5,000. What is the total value of the company's cash and bank balances?
A. ₦85,000
B. ₦90,000
C. ₦95,000
Correct D. ₦100,000

Correct Answer: D

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Question 21
A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to correct this error?
A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦20,000 debit to Rent Paid and ₦20,000 credit to Rent Received
Correct C. ₦15,000 debit to Rent Received and ₦15,000 credit to Rent Paid
D. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received

Correct Answer: C

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Question 22
A company's cash book shows a balance of ₦50,000. However, the bank statement shows a balance of ₦60,000. What is the correct explanation for this discrepancy?
A. The company has an outstanding deposit of ₦10,000
B. The company has an outstanding cheque of ₦10,000
Correct C. The company has an overdraft of ₦10,000
D. The company has an outstanding credit of ₦10,000

Correct Answer: C

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Question 23
A company's balance sheet shows an asset of ₦100,000 and a liability of ₦80,000. What is the company's equity?
Correct A. ₦20,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 24
A company's profit and loss account shows a profit of ₦50,000. However, the balance sheet shows a loss of ₦20,000. What is the correct explanation for this discrepancy?
A. The company has an outstanding revenue of ₦30,000
Correct B. The company has an outstanding expense of ₦30,000
C. The company has an outstanding asset of ₦30,000
D. The company has an outstanding liability of ₦30,000

Correct Answer: B

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Question 25
A company's depreciation policy is to depreciate its assets by 10% per annum. If the asset's original value is ₦100,000, what is its value after 2 years?
Correct A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000

Correct Answer: A

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