POST UTME SUMMIT UNIVERSITY 2024 Accounting | Objective

Are you preparing for POST UTME SUMMIT 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
A company issued 5,000 shares of ₦10 each at a premium of ₦5 per share. The company also issued 10,000 ₦100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦250,000
Correct B. ₦300,000
C. ₦350,000
D. ₦400,000

Correct Answer: B

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Question 2
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦30,000, and Dividends ₦10,000. Prepare a balance sheet for the company.
Correct A. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}
B. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}
C. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}
D. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}

Correct Answer: A

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Question 3
A company's financial statements for the year ended December 31, 2023, showed the following: Revenue ₦500,000, Cost of Goods Sold ₦300,000, Gross Profit ₦200,000, Operating Expenses ₦100,000, Net Income ₦100,000. Prepare a statement of cash flows for the company.
Correct A. {\begin{tabular}{|l|r|} Cash Flows from Operating Activities & ₦200,000 \\ Cash Flows from Investing Activities & ₦0 \\ Cash Flows from Financing Activities & ₦0 \\ Net Change in Cash & ₦200,000 \\ Cash at Beginning of Year & ₦0 \\ Cash at End of Year & ₦200,000 \\ \end{tabular}}
B. {\begin{tabular}{|l|r|} Cash Flows from Operating Activities & ₦200,000 \\ Cash Flows from Investing Activities & ₦0 \\ Cash Flows from Financing Activities & ₦0 \\ Net Change in Cash & ₦200,000 \\ Cash at Beginning of Year & ₦0 \\ Cash at End of Year & ₦200,000 \\ \end{tabular}}
C. {\begin{tabular}{|l|r|} Cash Flows from Operating Activities & ₦200,000 \\ Cash Flows from Investing Activities & ₦0 \\ Cash Flows from Financing Activities & ₦0 \\ Net Change in Cash & ₦200,000 \\ Cash at Beginning of Year & ₦0 \\ Cash at End of Year & ₦200,000 \\ \end{tabular}}
D. {\begin{tabular}{|l|r|} Cash Flows from Operating Activities & ₦200,000 \\ Cash Flows from Investing Activities & ₦0 \\ Cash Flows from Financing Activities & ₦0 \\ Net Change in Cash & ₦200,000 \\ Cash at Beginning of Year & ₦0 \\ Cash at End of Year & ₦200,000 \\ \end{tabular}}

Correct Answer: A

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Question 4
A company's trial balance showed the following balances: Accounts Payable ₦50,000, Accounts Receivable ₦20,000, Common Stock ₦100,000, Retained Earnings ₦30,000, and Dividends ₦10,000. Prepare a balance sheet for the company.
A. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}
B. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}
C. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}
D. {\begin{tabular}{|l|r|} Accounts Payable & ₦50,000 \\ Accounts Receivable & ₦20,000 \\ Common Stock & ₦100,000 \\ Retained Earnings & ₦30,000 \\ Dividends & ₦10,000 \\ Total & ₦210,000 \\ \end{tabular}}

Correct Answer: VIEW ANSWER

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Question 5
A company issued 10,000 shares of ₦1 each at a premium of ₦0.50 per share. If the issue expenses were ₦ 5,000, calculate the amount received from the issue of shares.
Correct A. ₦10,500
B. ₦11,000
C. ₦12,000
D. ₦13,000

Correct Answer: A

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Question 6
A company's cash book showed a balance of ₦ 8,000. The bank statement showed a balance of ₦ 10,000. The company's cash book had a debit balance of ₦ 2,000 for bank charges. The bank statement had a credit balance of ₦ 1,000 for interest received. What is the correct balance of the company's cash book?
A. ₦ 10,000
Correct B. ₦ 9,000
C. ₦ 8,000
D. ₦ 7,000

Correct Answer: B

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Question 7
A company's ledger showed a debit balance of ₦ 5,000 for purchases. The company's cash book showed a credit balance of ₦ 3,000 for purchases. What is the correct balance of the company's ledger for purchases?
Correct A. ₦ 2,000
B. ₦ 3,000
C. ₦ 5,000
D. ₦ 7,000

Correct Answer: A

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Question 8
A company issued 5,000 shares of ₦1 each at a premium of ₦0.50 per share. If the issue expenses were ₦ 2,500, calculate the amount received from the issue of shares.
Correct A. ₦10,250
B. ₦11,000
C. ₦12,000
D. ₦13,000

Correct Answer: A

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Question 9
A company's cash book showed a balance of ₦ 12,000. The bank statement showed a balance of ₦ 15,000. The company's cash book had a debit balance of ₦ 3,000 for bank charges. The bank statement had a credit balance of ₦ 2,000 for interest received. What is the correct balance of the company's cash book?
A. ₦ 15,000
Correct B. ₦ 14,000
C. ₦ 12,000
D. ₦ 11,000

Correct Answer: B

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Question 10
A company's ledger showed a debit balance of ₦ 8,000 for purchases. The company's cash book showed a credit balance of ₦ 5,000 for purchases. What is the correct balance of the company's ledger for purchases?
Correct A. ₦ 3,000
B. ₦ 5,000
C. ₦ 8,000
D. ₦ 10,000

Correct Answer: A

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Question 11
A company has a trial balance that includes the following accounts: Cash, 10,000; Accounts Payable, 5,000; Common Stock, 20,000; Retained Earnings, 15,000. What is the total amount of assets on the balance sheet?
A. ₦30,000
Correct B. ₦40,000
C. ₦50,000
D. ₦60,000

Correct Answer: B

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Question 12
A partnership has two partners, A and B. Partner A has a capital balance of 10,000 and a drawing of 2,000. Partner B has a capital balance of 8,000 and a drawing of 1,000. What is the total amount of drawings by the partners?
A. ₦3,000
B. ₦4,000
Correct C. ₦5,000
D. ₦6,000

Correct Answer: C

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Question 13
A company has the following cash book transactions: Debit 1,000 to Cash and Credit 1,000 to Accounts Payable. Debit 500 to Cash and Credit 500 to Sales. What is the net increase in cash?
Correct A. ₦0
B. ₦500
C. ₦1,000
D. ₦1,500

Correct Answer: A

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Question 14
A company has the following balance sheet: Assets 100,000, Liabilities 50,000, Equity 50,000. What is the net income for the year?
A. ₦0
B. ₦25,000
Correct C. ₦50,000
D. ₦75,000

Correct Answer: C

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Question 15
A company issues 1,000 shares of common stock at 10 per share. What is the total amount of cash received?
A. ₦10,000
B. ₦20,000
Correct C. ₦30,000
D. ₦40,000

Correct Answer: C

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Question 16
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records indicate that the rent expense for the year was ₦20,000. What is the correct journal entry to correct the error?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
Correct B. Debit Rent Expense ₦5,000, Credit Rent Payable ₦5,000
C. Debit Rent Expense ₦15,000, Credit Cash ₦15,000
D. Debit Rent Expense ₦20,000, Credit Cash ₦20,000

Correct Answer: B

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Question 17
A company's balance sheet shows a current liability of ₦100,000 due within one year. However, the company's accounting records indicate that the liability is due in two years. What is the correct accounting treatment for this error?
Correct A. Debit Current Liability ₦100,000, Credit Long-term Liability ₦100,000
B. Debit Current Liability ₦100,000, Credit Cash ₦100,000
C. Debit Current Liability ₦100,000, Credit Current Asset ₦100,000
D. Debit Current Liability ₦100,000, Credit Long-term Asset ₦100,000

Correct Answer: A

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Question 18
A company's cash book shows a debit balance of ₦50,000 in the 'Cash' account. However, the company's accounting records indicate that the cash balance is ₦75,000. What is the correct journal entry to correct the error?
Correct A. Debit Cash ₦25,000, Credit Cash at Bank ₦25,000
B. Debit Cash ₦25,000, Credit Cash in Hand ₦25,000
C. Debit Cash ₦50,000, Credit Cash at Bank ₦50,000
D. Debit Cash ₦75,000, Credit Cash at Bank ₦75,000

Correct Answer: A

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Question 19
A company's bank reconciliation statement shows a difference of ₦10,000 between the company's cash book balance and the bank statement balance. The company's accounting records indicate that the difference is due to an error in the cash book. What is the correct journal entry to correct the error?
A. Debit Cash ₦10,000, Credit Bank Charges ₦10,000
B. Debit Cash ₦10,000, Credit Cash in Hand ₦10,000
Correct C. Debit Cash ₦10,000, Credit Cash at Bank ₦10,000
D. Debit Bank Charges ₦10,000, Credit Cash ₦10,000

Correct Answer: C

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Question 20
A company's trial balance shows a debit balance of ₦20,000 in the 'Salaries Expense' account. However, the company's accounting records indicate that the salaries expense for the year was ₦25,000. What is the correct journal entry to correct the error?
A. Debit Salaries Expense ₦5,000, Credit Cash ₦5,000
Correct B. Debit Salaries Expense ₦5,000, Credit Salaries Payable ₦5,000
C. Debit Salaries Expense ₦20,000, Credit Cash ₦20,000
D. Debit Salaries Expense ₦25,000, Credit Cash ₦25,000

Correct Answer: B

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Question 21
A company's balance sheet shows a current asset of ₦100,000 due within one year. However, the company's accounting records indicate that the asset is due in two years. What is the correct accounting treatment for this error?
Correct A. Debit Current Asset ₦100,000, Credit Long-term Asset ₦100,000
B. Debit Current Asset ₦100,000, Credit Cash ₦100,000
C. Debit Current Asset ₦100,000, Credit Current Liability ₦100,000
D. Debit Long-term Asset ₦100,000, Credit Current Liability ₦100,000

Correct Answer: A

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Question 22
A company's cash book shows a debit balance of ₦75,000 in the 'Cash' account. However, the company's accounting records indicate that the cash balance is ₦50,000. What is the correct journal entry to correct the error?
A. Debit Cash ₦25,000, Credit Cash at Bank ₦25,000
Correct B. Debit Cash ₦25,000, Credit Cash in Hand ₦25,000
C. Debit Cash ₦75,000, Credit Cash at Bank ₦75,000
D. Debit Cash ₦50,000, Credit Cash at Bank ₦50,000

Correct Answer: B

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Question 23
A company has two departments: Manufacturing and Sales. The Manufacturing department has a budget of ₦1,500,000 and the Sales department has a budget of ₦2,000,000. If the company's total budget is ₦3,500,000, what is the percentage of the Manufacturing department's budget to the total budget?
A. 30%
B. 40%
Correct C. 50%
D. 60%

Correct Answer: C

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Question 24
A company has the following transactions: Purchased goods for ₦1,000,000, sold goods for ₦1,500,000, and purchased office supplies for ₦200,000. What is the total amount of the company's expenses?
A. ₦1,200,000
B. ₦1,400,000
Correct C. ₦1,600,000
D. ₦1,800,000

Correct Answer: C

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Question 25
A company has the following balance sheet: Assets ₦5,000,000, Liabilities ₦2,000,000, and Equity ₦3,000,000. What is the company's debt-to-equity ratio?
A. 1:1
Correct B. 1:2
C. 2:1
D. 3:1

Correct Answer: B

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