POST UTME SUMMIT UNIVERSITY 2017 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the straight-line method of depreciation. If the cost of the asset is ₦120,000 and its useful life is 5 years, what is the annual depreciation charge?
A. ₦24,000
B. ₦20,000
C. ₦18,000
D. ₦22,000
Question 2
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the profit to be shared by partner A.
A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000
Question 3
A company's manufacturing account for the year ended 31 December 20X7 is as follows:
A. ₦150,000
B. ₦200,000
C. ₦250,000
D. ₦300,000
Question 4
A company has the following ledger balances: Debtors: ₦50,000 Creditors: ₦20,000 Capital: ₦100,000 What is the total amount of liabilities in the company?
A. ₦70,000
B. ₦70,000
C. ₦70,000
D. ₦70,000
Question 5
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000
Question 6
A manufacturing company produces two products, X and Y. Product X requires 2 hours of direct labor and 3 hours of indirect labor, while product Y requires 3 hours of direct labor and 2 hours of indirect labor. If the company works 40 hours of direct labor and 60 hours of indirect labor per week, how many units of product X and product Y should be produced?
A. 10 units of X and 15 units of Y
B. 15 units of X and 10 units of Y
C. 20 units of X and 5 units of Y
D. 5 units of X and 20 units of Y
Question 7
A company's bank statement shows a balance of ₦80,000, but the company's cash book shows a balance of ₦90,000. What is the reason for the discrepancy?
A. Bank charges
B. Cheque returned unpaid
C. Deposit in transit
D. Withdrawal in transit
Question 8
A company has the following balance sheet: Assets ₦500,000, Liabilities ₦200,000, Capital ₦150,000. What is the net worth of the company?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 9
A company's trial balance shows a debit balance of ₦10,000 in the account 'Salaries Expense' and a credit balance of ₦15,000 in the account 'Salaries Payable'. What is the correct journal entry to record the correction of this error?
A. Debit Salaries Payable ₦5,000, Credit Salaries Expense ₦5,000
B. Debit Salaries Expense ₦10,000, Credit Salaries Payable ₦10,000
C. Debit Salaries Payable ₦15,000, Credit Salaries Expense ₦15,000
D. Debit Salaries Expense ₦5,000, Credit Salaries Payable ₦5,000
Question 10
A company's balance sheet shows a current asset of ₦50,000 in the account 'Accounts Receivable' and a current liability of ₦30,000 in the account 'Accounts Payable'. What is the net working capital?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 11
A company uses the straight-line method of depreciation. If the asset's useful life is 5 years and the residual value is ₦50,000, what is the annual depreciation charge if the asset's cost is ₦250,000?
A. ₦40,000
B. ₦45,000
C. ₦50,000
D. ₦55,000
Question 12
A company's trial balance shows the following balances: Debitors ₦50,000, Creditors ₦30,000, Capital ₦100,000, Profit and Loss Account ₦20,000. What is the total amount of assets?
A. ₦150,000
B. ₦120,000
C. ₦180,000
D. ₦200,000
Question 13
A company has the following ledger balances: Debtors: ₦50,000 Creditors: ₦20,000 Capital: ₦100,000 What is the total amount of equity in the company?
A. ₦130,000
B. ₦130,000
C. ₦130,000
D. ₦130,000
Question 14
A company has the following ledger accounts: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | | | Accounts Payable | | ₦5,000 | | Sales Revenue | | ₦20,000 | | Cost of Goods Sold | ₦15,000 | | | Net Income | | ₦5,000 | | Total | ₦25,000 | ₦30,000 | Create a self-balancing ledger for the company.
A. {\begin{array}{|c|c|c|} \text{Account} & \text{Debit} & \text{Credit} \\ \hline \text{Cash} & ₦10,000 & \\ \text{Accounts Payable} & & ₦5,000 \\ \text{Sales Revenue} & & ₦20,000 \\ \text{Cost of Goods Sold} & ₦15,000 & \\ \text{Net Income} & & ₦5,000 \\ \hline \text{Total} & ₦25,000 & ₦30,000 \\ \end{array}}
B. {\begin{array}{|c|c|c|} \text{Account} & \text{Debit} & \text{Credit} \\ \hline \text{Cash} & ₦10,000 & \\ \text{Accounts Payable} & & ₦5,000 \\ \text{Sales Revenue} & & ₦20,000 \\ \text{Cost of Goods Sold} & ₦15,000 & \\ \text{Net Income} & & ₦5,000 \\ \hline \text{Total} & ₦25,000 & ₦30,000 \\ \end{array}}
C. {\begin{array}{|c|c|c|} \text{Account} & \text{Debit} & \text{Credit} \\ \hline \text{Cash} & ₦10,000 & \\ \text{Accounts Payable} & & ₦5,000 \\ \text{Sales Revenue} & & ₦20,000 \\ \text{Cost of Goods Sold} & ₦15,000 & \\ \text{Net Income} & & ₦5,000 \\ \hline \text{Total} & ₦25,000 & ₦30,000 \\ \end{array}}
D. {\begin{array}{|c|c|c|} \text{Account} & \text{Debit} & \text{Credit} \\ \hline \text{Cash} & ₦10,000 & \\ \text{Accounts Payable} & & ₦5,000 \\ \text{Sales Revenue} & & ₦20,000 \\ \text{Cost of Goods Sold} & ₦15,000 & \\ \text{Net Income} & & ₦5,000 \\ \hline \text{Total} & ₦25,000 & ₦30,000 \\ \end{array}}
Question 15
A partnership is formed between two individuals, A and B, with a capital of ₦500,000 each. During the year, A withdraws ₦100,000 for personal use, while B invests an additional ₦50,000. The partnership earns a profit of ₦200,000. Prepare the partnership's statement of profit or loss and the statement of changes in equity for the year.
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000

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