Practice post utme ui accounting 2020 Past Questions

Question 1

A company's trial balance shows the following balances: Accounts Payable ₦ 50,000, Accounts Receivable ₦ 20,000, Common Stock ₦ 100,000, Dividends ₦ 10,000, Equipment ₦ 80,000, Interest Expense ₦ 5,000, Net Income ₦ 30,000, Rent Expense ₦ 15,000, Salaries Expense ₦ 20,000, Sales Revenue ₦ 150,000, Utilities Expense ₦ 10,000. Prepare a balance sheet for the company.

A. ₦ 150,000

B. ₦ 170,000

C. ₦ 190,000

D. ₦ 210,000

Question 2

A company's trial balance shows a discrepancy of ₦10,000. What is the likely cause of this discrepancy?

A. Error in journalizing a transaction

B. Error in posting a transaction

C. Error in preparing the trial balance

D. Error in accounting for depreciation

Question 3

A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2.50 per share. Calculate the total amount received from the issue of shares.

A. ₦ 25,000

B. ₦ 30,000

C. ₦ 35,000

D. ₦ 40,000

Question 4

In a partnership account, what is the correct method of valuing the goodwill of a partnership?

A. Average Profit Method

B. Super Profit Method

C. Capitalization Method

D. Net Asset Method

Question 5

A partnership has two partners, A and B. The capital accounts of A and B are ₦200,000 and ₦300,000 respectively. If the profit is divided in the ratio 2:3, what is the share of profit of partner A?

A. ₦100,000

B. ₦150,000

C. ₦200,000

D. ₦250,000

Question 6

A company has a capital of ₦1,000,000 divided into 10,000 shares of ₦100 each. If the company issues 5,000 shares at a premium of ₦20 per share, calculate the amount of premium received.

A. ₦50,000

B. ₦75,000

C. ₦100,000

D. ₦125,000

Question 7

A company uses the double entry system of accounting. What is the effect of the following transaction on the accounting equation?

A. Increases Assets and Equity

B. Decreases Assets and Equity

C. Increases Assets and Decreases Equity

D. Decreases Assets and Increases Equity

Question 8

A company's cash book shows a debit balance of ₦50,000. However, the bank statement shows a credit balance of ₦30,000. What is the correct balance of the company's cash account?

A. ₦20,000

B. ₦30,000

C. ₦50,000

D. ₦80,000

Question 9

A partnership is formed between two individuals, A and B. The capital contributions of the partners are as follows:

A. ₦100,000

B. ₦120,000

C. ₦140,000

D. ₦160,000

Question 10

A company uses the single-entry system of accounting. The company's trial balance as at December 31, 2022, shows the following balances:

A. ₦125,000

B. ₦150,000

C. ₦175,000

D. ₦200,000

Question 11

A company uses the incomplete records system. The following data are available for the year 2022:

A. ₦250,000

B. ₦275,000

C. ₦300,000

D. ₦325,000

Question 12

A company uses the straight-line method of depreciation. If the cost of the asset is ₦500,000 and the useful life is 5 years, what is the annual depreciation charge?

A. ₦50,000

B. ₦75,000

C. ₦100,000

D. ₦125,000

Question 13

A manufacturing company has the following costs: Direct Materials = ₦100,000, Direct Labour = ₦200,000, and Factory Overheads = ₦300,000. What is the total cost of production?

A. ₦600,000

B. ₦700,000

C. ₦800,000

D. ₦900,000

Question 14