POST UTME UI 2017 Accounting | Objective

Are you preparing for POST UTME UI exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2017 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
In a partnership account, what is the correct method of valuing the goodwill of a partnership?
Correct A. Average Profit Method
B. Super Profit Method
C. Capitalization Method
D. Net Asset Method

Correct Answer: A

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Question 2
A company has the following transactions: Purchased raw materials on credit ₥0,000; Sold goods for ₦0,000 cash; and Purchased machinery for ₣0,000 cash. Prepare the journal entries for the above transactions.
A. Debit Raw Materials ₥0,000, Credit Purchases ₥0,000
B. Debit Sales ₦0,000, Credit Cash ₦0,000
C. Debit Machinery ₣0,000, Credit Cash ₣0,000
Correct D. Debit Raw Materials ₥0,000, Credit Purchases ₥0,000; Debit Sales ₦0,000, Credit Cash ₦0,000; Debit Machinery ₣0,000, Credit Cash ₣0,000

Correct Answer: D

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Question 3
A company's balance sheet as at 31st December, 2017 is as follows: Assets ₡00,000, Liabilities ₥0,000, and Equity ₣0,000. What is the company's liquidity ratio?
A. 1:1
Correct B. 2:1
C. 3:1
D. 4:1

Correct Answer: B

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Question 4
A company has the following transactions: Purchased raw materials on credit ₥0,000; Sold goods for ₦0,000 cash; and Purchased machinery for ₣0,000 cash. Prepare the ledger accounts for the above transactions.
A. Raw Materials ₥0,000, Purchases ₥0,000, Sales ₦0,000, Cash ₦0,000, Machinery ₣0,000, Cash ₣0,000
B. Raw Materials ₥0,000, Purchases ₥0,000, Sales ₦0,000, Cash ₦0,000, Machinery ₣0,000, Cash ₣0,000
C. Raw Materials ₥0,000, Purchases ₥0,000, Sales ₦0,000, Cash ₦0,000, Machinery ₣0,000, Cash ₣0,000
Correct D. Raw Materials ₥0,000, Purchases ₥0,000, Sales ₦0,000, Cash ₦0,000, Machinery ₣0,000, Cash ₣0,000

Correct Answer: D

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Question 5
A company's balance sheet as at 31st December, 2017 is as follows: Assets ₡00,000, Liabilities ₥0,000, and Equity ₣0,000. What is the company's gearing ratio?
A. 1:1
Correct B. 2:1
C. 3:1
D. 4:1

Correct Answer: B

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Question 6
A company uses the single entry system of accounting. The following transactions were recorded in the accounting period:
Correct A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: A

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Question 7
A partnership account shows a capital balance of ₦100,000. The partners' capital accounts are to be adjusted to reflect the following changes:
Correct A. ₦120,000
B. ₦110,000
C. ₦90,000
D. ₦80,000

Correct Answer: A

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Question 8
A company's cash book shows the following transactions:
A. ₦50,000
Correct B. ₦60,000
C. ₦70,000
D. ₦80,000

Correct Answer: B

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Question 9
A company's trial balance shows the following balances:
A. ₦100,000
B. ₦120,000
Correct C. ₦150,000
D. ₦180,000

Correct Answer: C

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Question 10
A company's bank reconciliation statement shows the following discrepancies:
A. ₦10,000
Correct B. ₦20,000
C. ₦30,000
D. ₦40,000

Correct Answer: B

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Question 11
A company's cash book shows a debit balance of ₦15,000. However, the bank statement shows a credit balance of ₦18,000. What is the correct balance of the company's cash?
A. ₦18,000
B. ₦15,000
Correct C. ₦3,000
D. ₦21,000

Correct Answer: C

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Question 12
A company issues 1,000 shares of ₦10 each at a premium of ₦5 per share. What is the total amount received from the issue of shares?
A. ₦10,000
Correct B. ₦15,000
C. ₦12,000
D. ₦20,000

Correct Answer: B

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Question 13
A company's assets are valued at ₦100,000. If the company depreciates its assets by 10% per annum, what is the value of the assets after 2 years?
A. ₦90,000
B. ₦80,000
Correct C. ₦70,000
D. ₦60,000

Correct Answer: C

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Question 14
A company issues 1,000 debentures of ₦100 each at a premium of ₦10 per debenture. What is the total amount received from the issue of debentures?
A. ₦100,000
B. ₦110,000
Correct C. ₦120,000
D. ₦130,000

Correct Answer: C

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Question 15
A company's bank statement shows a credit balance of ₦20,000. However, the cash book shows a debit balance of ₦15,000. What is the correct balance of the company's cash?
A. ₦20,000
B. ₦15,000
Correct C. ₦5,000
D. ₦25,000

Correct Answer: C

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Question 16
A company issued 5,000, 10% debentures of ₦100 each at a discount of 5%. The debentures are redeemable at the end of 5 years. Calculate the amount of interest to be paid annually.
Correct A. ₦25,000
B. ₦50,000
C. ₦75,000
D. ₦100,000

Correct Answer: A

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Question 17
A manufacturing company uses a job costing system. The following data are available for the month of January: Job No. 101: Materials: ₦10,000; Labour: ₦15,000; Overheads: ₦20,000; Total cost: ₦45,000. Job No. 102: Materials: ₦8,000; Labour: ₦12,000; Overheads: ₦18,000; Total cost: ₦38,000. Calculate the total cost of production for the month.
A. ₦83,000
Correct B. ₦85,000
C. ₦87,000
D. ₦89,000

Correct Answer: B

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Question 18
A company's trial balance as at 31st December, 2017 is as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | ₦0 | | Accounts Payable | ₦0 | ₦15,000 | | Sales Revenue | ₦0 | ₦50,000 | | Cost of Goods Sold | ₦30,000 | ₦0 | | Net Income | ₦0 | ₦0 | | Total | ₦40,000 | ₦65,000 | Identify the error in the trial balance.
Correct A. The debit and credit columns do not balance.
B. The cash account has a debit balance.
C. The accounts payable account has a credit balance.
D. The sales revenue account has a debit balance.

Correct Answer: A

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Question 19
A company issued 10,000, 5% shares of ₦10 each at a premium of ₦2. The shares are redeemable at the end of 3 years. Calculate the amount of dividend to be paid annually.
A. ₦50,000
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 20
A company's balance sheet as at 31st December, 2017 is as follows: | Asset | ₦ | Liability | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Accounts Payable | 15,000 | | Accounts Receivable | 20,000 | Notes Payable | 30,000 | | Inventory | 40,000 | Total Liabilities | 45,000 | | Total Assets | 70,000 | Equity | 25,000 | Identify the error in the balance sheet.
Correct A. The total assets and total liabilities do not balance.
B. The cash account has a debit balance.
C. The accounts payable account has a credit balance.
D. The accounts receivable account has a debit balance.

Correct Answer: A

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Question 21
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
Correct B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: B

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Question 22
A partnership has two partners, A and B. The capital accounts of A and B are ₦ 50,000 and ₦ 30,000 respectively. The profit for the year is ₦ 20,000. Calculate the share of profit of A.
A. ₦10,000
B. ₦12,000
Correct C. ₦15,000
D. ₦18,000

Correct Answer: C

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Question 23
A company has a cash book balance of ₦ 50,000. The bank reconciliation statement shows a difference of ₦ 5,000 between the cash book balance and the bank statement balance. Calculate the bank statement balance.
Correct A. ₦55,000
B. ₦50,000
C. ₦45,000
D. ₦40,000

Correct Answer: A

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Question 24
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
Correct B. ₦130,000
C. ₦140,000
D. ₦150,000

Correct Answer: B

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Question 25
A partnership has two partners, A and B. The capital accounts of A and B are ₦ 50,000 and ₦ 30,000 respectively. The profit for the year is ₦ 20,000. Calculate the share of profit of A.
A. ₦10,000
B. ₦12,000
Correct C. ₦15,000
D. ₦18,000

Correct Answer: C

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