POST UTME SUMMIT UNIVERSITY 2020 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system of accounting. The company's ledger shows a debit balance of ₦600,000 in the Asset Account and a credit balance of ₦500,000 in the Liability Account. What is the correct journal entry to record the difference between the Asset and Liability balances?
A. ₦100,000 debit to Asset Account and ₦100,000 credit to Liability Account
B. ₦100,000 credit to Asset Account and ₦100,000 debit to Liability Account
C. ₦100,000 debit to Asset Account and ₦100,000 credit to Capital Account
D. ₦100,000 credit to Asset Account and ₦100,000 debit to Capital Account
Question 2
A company's cash flow statement for the year ended 31st December, 2020 is as follows:
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 3
A company uses the cash book to record its cash transactions. The following transactions occurred during the year: Purchased office supplies for ₦5,000; Paid rent for the year ₦20,000; Sold merchandise for ₦80,000; Purchased merchandise for ₦60,000; Collected cash from customers ₦40,000. Prepare the company's cash book.
A. ₦5,000; ₦20,000; ₦80,000; ₦60,000; ₦40,000
B. ₦5,000; ₦20,000; ₦80,000; ₦60,000; ₦40,000
C. ₦5,000; ₦20,000; ₦80,000; ₦60,000; ₦40,000
D. ₦5,000; ₦20,000; ₦80,000; ₦60,000; ₦40,000
Question 4
A company's profit and loss account for the year ended 31st December, 2020 is as follows:
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 5
A company uses the weighted average method to value its inventory. The cost of goods available for sale is ₦1,500,000, and the total cost of the opening inventory is ₦400,000. If the company purchases additional inventory for ₦800,000 and sells inventory for ₦600,000, what is the cost of goods sold?
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 6
A company purchases a machine for ₦1,000,000. The machine has a useful life of 5 years and a residual value of ₦100,000. Calculate the annual depreciation using the straight-line method.
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 7
A company has a debt of ₦50,000 and issues 5-year debentures at 10% interest per annum. If the company pays interest annually, what is the amount of interest paid in the first year?
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 8
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦10,000
B. ₦15,000
C. ₦20,000
D. ₦25,000
Question 9
In a partnership account, the capital of two partners, A and B, is shared in the ratio 3:2. If the total capital is ₦120,000, what is the amount of capital contributed by partner B?
A. ₦48,000
B. ₦60,000
C. ₦72,000
D. ₦80,000
Question 10
A company uses the double-entry system of accounting. The company's ledger shows a debit balance of ₦400,000 in the Asset Account and a credit balance of ₦300,000 in the Liability Account. What is the correct journal entry to record the difference between the Asset and Liability balances?
A. ₦100,000 debit to Asset Account and ₦100,000 credit to Liability Account
B. ₦100,000 credit to Asset Account and ₦100,000 debit to Liability Account
C. ₦100,000 debit to Asset Account and ₦100,000 credit to Capital Account
D. ₦100,000 credit to Asset Account and ₦100,000 debit to Capital Account
Question 11
A company uses the double-entry system of accounting. The following transactions occurred during the year: Purchased office supplies for ₦5,000; Paid rent for the year ₦20,000; Sold merchandise for ₦80,000; Purchased merchandise for ₦60,000; Collected cash from customers ₦40,000. Prepare the company's ledger accounts.
A. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Cash: ₦40,000
B. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Accounts Receivable: ₦40,000
C. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Accounts Payable: ₦40,000
D. Office Supplies: ₦5,000; Rent Expense: ₦20,000; Sales Revenue: ₦80,000; Merchandise Inventory: ₦60,000; Cash: ₦40,000
Question 12
A company has a debt of ₦50,000 and issues 5-year debentures at 10% interest per annum. If the company pays interest annually, what is the amount of interest paid in the first year?
A. ₦5,000
B. ₦5,500
C. ₦6,000
D. ₦6,500
Question 13
A company has a capital of ₦100,000 and a profit of ₦20,000. If the company distributes 20% of the profit as dividend, what is the amount of dividend paid?
A. ₦4,000
B. ₦4,500
C. ₦5,000
D. ₦5,500
Question 14
A government agency uses the double-entry system of accounting. The agency's ledger shows a debit balance of ₦700,000 in the Asset Account and a credit balance of ₦600,000 in the Liability Account. What is the correct journal entry to record the difference between the Asset and Liability balances?
A. ₦100,000 debit to Asset Account and ₦100,000 credit to Liability Account
B. ₦100,000 credit to Asset Account and ₦100,000 debit to Liability Account
C. ₦100,000 debit to Asset Account and ₦100,000 credit to Capital Account
D. ₦100,000 credit to Asset Account and ₦100,000 debit to Capital Account
Question 15
A company has a capital of ₦100,000 and a profit of ₦20,000. If the company distributes 20% of the profit as dividend, what is the amount of dividend paid?
A. ₦4,000
B. ₦4,500
C. ₦5,000
D. ₦5,500

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