POST UTME SUMMIT UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
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.
A. ₦10,250
B. ₦11,000
C. ₦12,000
D. ₦13,000
Question 2
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
B. ₦ 14,000
C. ₦ 12,000
D. ₦ 11,000
Question 3
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
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
Question 4
A company purchases a machine for ₦500,000. The machine has an estimated useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation for the first year using the straight-line method.
A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000
Question 5
A company's trial balance showed an error of ₦ 1,000 in the debit side of the purchases account. The correct amount of purchases was ₦ 50,000. Prepare the necessary journal entry to correct the error.
A. Debit Purchases ₦ 1,000, Credit Purchases ₦ 1,000
B. Debit Purchases ₦ 1,000, Credit Purchases ₦ 1,000, Credit Capital ₦ 1,000
C. Debit Purchases ₦ 1,000, Credit Purchases ₦ 1,000, Debit Capital ₦ 1,000
D. Debit Purchases ₦ 1,000, Credit Purchases ₦ 1,000, Debit Capital ₦ 1,000, Credit Purchases ₦ 1,000
Question 6
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
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 7
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
B. ₦300,000
C. ₦350,000
D. ₦400,000
Question 8
A company's depreciation policy is to depreciate its assets by 10% per annum using the straight-line method. If the asset cost ₦ 10,000 and its useful life is 5 years, calculate the annual depreciation charge.
A. ₦ 2,000
B. ₦ 1,667
C. ₦ 1,500
D. ₦ 1,000
Question 9
A company has the following balances in its trial balance as at 31st December 2023: Accounts Payable ₦150,000, Accounts Receivable ₦120,000, Common Stock ₦500,000, Dividends ₦20,000, Equipment ₦300,000, Interest Expense ₦15,000, Interest Income ₦25,000, Net Income ₦150,000, Retained Earnings ₦250,000, Salaries Expense ₦80,000, Sales Revenue ₦600,000, Taxes Payable ₦30,000, and Utilities Expense ₦20,000. Prepare a statement of stockholders' equity as at 31st December 2023.
A. ₦1,200,000
B. ₦1,300,000
C. ₦1,400,000
D. ₦1,500,000
Question 10
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?
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
Question 11
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
C. ₦5,000
D. ₦6,000
Question 12
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?
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
Question 13
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.
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}}
Question 14
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 10,000. Calculate the amount received from the issue of shares.
A. ₦ 120,000
B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000
Question 15
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
C. ₦50,000
D. ₦75,000

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