POST UTME SUMMIT UNIVERSITY 2022 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company uses the double-entry system of accounting. If the company purchases an asset for ₦500,000 and pays ₦200,000 in cash, what is the journal entry to record the purchase?
A. Debit Asset ₦500,000, Credit Cash ₦200,000
B. Debit Cash ₦500,000, Credit Asset ₦200,000
C. Debit Asset ₦200,000, Credit Cash ₦500,000
D. Debit Cash ₦200,000, Credit Asset ₦500,000
Question 2
A company issues 10,000 shares of ₦5 each at a premium of ₦2. Calculate the total amount received from the issue of shares.
A. ₦50,000
B. ₦100,000
C. ₦150,000
D. ₦200,000
Question 3
A company uses the straight-line method of depreciation. 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 ₦1,500,000?
A. ₦300,000
B. ₦250,000
C. ₦200,000
D. ₦150,000
Question 4
A company's cash book shows a debit balance of ₦20,000 in the account 'Bank' and a credit balance of ₦15,000 in the account 'Cash'. What is the correct bank reconciliation statement?
A. ₦5,000 debit to Bank and ₦5,000 credit to Cash
B. ₦20,000 debit to Bank and ₦15,000 credit to Cash
C. ₦15,000 debit to Bank and ₦20,000 credit to Cash
D. ₦5,000 debit to Bank and ₦15,000 credit to Cash
Question 5
A company has the following accounts: Accounts Payable: ₦120,000, Accounts Receivable: ₦150,000, Common Stock: ₦500,000, Dividends: ₦20,000, Equipment: ₦200,000, Expenses: ₦100,000, Income Tax Expense: ₦30,000, Interest Expense: ₦10,000, Net Income: ₦150,000, Retained Earnings: ₦250,000, Salaries Expense: ₦80,000, Sales Revenue: ₦1,200,000, Utilities Expense: ₦20,000. What is the total amount of equity?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 6
A company's trial balance shows a debit balance of ₦10,000 in the account 'Rent Received' and a credit balance of ₦5,000 in the account 'Rent Paid'. What is the correct journal entry to record the correction of this error?
A. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
B. ₦10,000 debit to Rent Received and ₦5,000 credit to Rent Paid
C. ₦5,000 debit to Rent Paid and ₦10,000 credit to Rent Received
D. ₦10,000 debit to Rent Paid and ₦5,000 credit to Rent Received
Question 7
A public sector organization has the following transactions for the month of January: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1-Jan | Cash | ₦10,000 | | | 2-Jan | Office Equipment | | ₦8,000 | | 3-Jan | Rent Received | | ₦12,000 | | 4-Jan | Salaries | ₦20,000 | | | 5-Jan | Office Supplies | ₦5,000 | | Prepare the journal entries for the above transactions.
A. Debit Cash ₦10,000, Credit Office Equipment ₦8,000, Credit Rent Received ₦12,000, Debit Salaries ₦20,000, Debit Office Supplies ₦5,000
B. Debit Cash ₦10,000, Credit Office Equipment ₦8,000, Debit Rent Received ₦12,000, Debit Salaries ₦20,000, Debit Office Supplies ₦5,000
C. Debit Office Equipment ₦8,000, Credit Rent Received ₦12,000, Debit Salaries ₦20,000, Debit Office Supplies ₦5,000
D. Debit Cash ₦10,000, Credit Office Equipment ₦8,000, Debit Rent Received ₦12,000, Credit Salaries ₦20,000, Credit Office Supplies ₦5,000
Question 8
A company's profit and loss account shows a net profit of ₦30,000. What is the correct journal entry to record the distribution of the net profit?
A. ₦30,000 debit to Profit and Loss Appropriation Account and ₦30,000 credit to Profit and Loss Account
B. ₦30,000 debit to Profit and Loss Account and ₦30,000 credit to Profit and Loss Appropriation Account
C. ₦30,000 debit to Profit and Loss Appropriation Account and ₦30,000 credit to Profit and Loss Account
D. ₦30,000 debit to Profit and Loss Account and ₦30,000 credit to Profit and Loss Appropriation Account
Question 9
The following trial balance of a company shows the following balances: Accounts Payable: ₦120,000, Accounts Receivable: ₦150,000, Common Stock: ₦500,000, Dividends: ₦20,000, Equipment: ₦200,000, Expenses: ₦100,000, Income Tax Expense: ₦30,000, Interest Expense: ₦10,000, Net Income: ₦150,000, Retained Earnings: ₦250,000, Salaries Expense: ₦80,000, Sales Revenue: ₦1,200,000, Utilities Expense: ₦20,000. What is the total amount of assets?
A. ₦1,000,000
B. ₦1,200,000
C. ₦1,500,000
D. ₦2,000,000
Question 10
A company's balance sheet shows a current liability of ₦50,000. The company's cash flow statement shows a decrease in current liabilities of ₦20,000. What is the correct amount of current liabilities?
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 11
A company has the following accounts: Accounts Payable: ₦120,000, Accounts Receivable: ₦150,000, Common Stock: ₦500,000, Dividends: ₦20,000, Equipment: ₦200,000, Expenses: ₦100,000, Income Tax Expense: ₦30,000, Interest Expense: ₦10,000, Net Income: ₦150,000, Retained Earnings: ₦250,000, Salaries Expense: ₦80,000, Sales Revenue: ₦1,200,000, Utilities Expense: ₦20,000. What is the total amount of expenses?
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 12
A company's balance sheet as at 31st December 2022, showed a capital of ₦4,500,000 and a profit and loss account balance of ₦2,500,000. The company's profit and loss account for the year ended 31st December 2022, showed a profit of ₦3,000,000. Calculate the amount of dividends paid to the shareholders.
A. ₦1,500,000
B. ₦2,000,000
C. ₦2,500,000
D. ₦3,000,000
Question 13
A company's trial balance shows that its total assets are ₦300,000 and its total liabilities are ₦100,000. What is the company's net worth?
A. ₦200,000
B. ₦300,000
C. ₦400,000
D. ₦500,000
Question 14
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 ₦480,000, how much will A receive as their share of the profit?
A. ₦360,000
B. ₦240,000
C. ₦300,000
D. ₦420,000
Question 15
A company's trial balance shows an error of ₦1,500 in the debit side of the account 'Rent Received'. The error is due to the omission of a receipt of ₦1,500 from a customer. Prepare the correcting journal entry.
A. Debit Rent Received ₦1,500, Credit Cash ₦1,500
B. Debit Rent Received ₦1,500, Credit Profit and Loss Account ₦1,500
C. Debit Profit and Loss Account ₦1,500, Credit Rent Received ₦1,500
D. Debit Rent Received ₦1,500, Credit Bank ₦1,500

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