POST UTME UI 2020 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 2020 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?
A. Average Profit Method
Correct B. Super Profit Method
C. Capitalization Method
D. Net Asset Method

Correct Answer: B

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Question 2
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
Correct D. Decreases Assets and Increases Equity

Correct Answer: D

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Question 3
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
Correct C. ₦800,000
D. ₦900,000

Correct Answer: C

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Question 4
A company uses the straight-line method of depreciation. If the asset has a useful life of 5 years and a cost of ₦500,000, what is the annual depreciation charge?
A. ₦100,000
Correct B. ₦125,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 5
A company has the following ledger accounts: Purchases = ₦200,000, Sales = ₦300,000, and Returns Outwards = ₦20,000. What is the net profit?
A. ₦80,000
B. ₦100,000
Correct C. ₦120,000
D. ₦150,000

Correct Answer: C

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Question 6
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
Correct B. ₦150,000
C. ₦175,000
D. ₦200,000

Correct Answer: B

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Question 7
A manufacturing company uses the process costing method. The following data are available for the month of January 2023:
A. ₦250,000
B. ₦275,000
Correct C. ₦300,000
D. ₦325,000

Correct Answer: C

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Question 8
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
Correct C. ₦140,000
D. ₦160,000

Correct Answer: C

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Question 9
A company uses the self-balancing ledger system. The following transactions are recorded in the ledger:
A. ₦150,000
B. ₦175,000
Correct C. ₦200,000
D. ₦225,000

Correct Answer: C

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Question 10
A company uses the incomplete records system. The following data are available for the year 2022:
A. ₦250,000
B. ₦275,000
Correct C. ₦300,000
D. ₦325,000

Correct Answer: C

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Question 11
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
Correct B. ₦75,000
C. ₦100,000
D. ₦125,000

Correct Answer: B

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Question 12
A trader purchases goods worth ₦15,000 and sells them at a profit of 25%. Calculate the selling price.
A. ₦18,750
B. ₦19,000
Correct C. ₦19,250
D. ₦19,500

Correct Answer: C

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Question 13
A company's balance sheet shows a current liability of ₦50,000 and a non-current liability of ₦200,000. Calculate the total liability.
A. ₦250,000
B. ₦300,000
C. ₦350,000
Correct D. ₦400,000

Correct Answer: D

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Question 14
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the profit for the year is ₦120,000, calculate the share of profit of partner A.
Correct A. ₦90,000
B. ₦100,000
C. ₦110,000
D. ₦120,000

Correct Answer: A

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Question 15
A company issues 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total discount.
A. ₦2,500
B. ₦5,000
Correct C. ₦7,500
D. ₦10,000

Correct Answer: C

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Question 16
A company uses the double-declaration method to value its assets. The company's assets are valued at ₦1,500,000, and the depreciation is calculated using the straight-line method. If the company's assets are expected to last for 5 years, what is the annual depreciation?
Correct A. ₦300,000
B. ₦150,000
C. ₦75,000
D. ₦30,000

Correct Answer: A

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Question 17
A company has the following transactions: Purchased goods for ₦100,000; sold goods for ₦120,000; purchased office supplies for ₦5,000. What is the total cost of goods sold?
A. ₦105,000
B. ₦110,000
Correct C. ₦115,000
D. ₦120,000

Correct Answer: C

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Question 18
A partnership has two partners, A and B. Partner A has a 60% interest in the partnership, and partner B has a 40% interest. If the partnership's profit is ₦120,000, what is partner A's share of the profit?
Correct A. ₦72,000
B. ₦60,000
C. ₦48,000
D. ₦36,000

Correct Answer: A

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Question 19
A company has the following bank reconciliation statement: Opening balance ₦50,000; deposits ₦20,000; cheques deposited ₦15,000; cheques returned ₦5,000; bank charges ₦2,000. What is the company's new bank balance?
Correct A. ₦62,000
B. ₦60,000
C. ₦58,000
D. ₦56,000

Correct Answer: A

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Question 20
A company purchases a machine for ₦200,000. The machine is expected to last for 5 years, and the company uses the straight-line method to depreciate the machine. What is the annual depreciation?
Correct A. ₦40,000
B. ₦30,000
C. ₦20,000
D. ₦10,000

Correct Answer: A

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Question 21
A company has the following transactions: Purchased goods for ₦150,000; sold goods for ₦180,000; purchased office supplies for ₦10,000. What is the total cost of goods sold?
A. ₦160,000
B. ₦165,000
Correct C. ₦170,000
D. ₦175,000

Correct Answer: C

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Question 22
A partnership has two partners, A and B. Partner A has a 70% interest in the partnership, and partner B has a 30% interest. If the partnership's profit is ₦150,000, what is partner A's share of the profit?
Correct A. ₦105,000
B. ₦90,000
C. ₦75,000
D. ₦60,000

Correct Answer: A

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Question 23
A company has the following bank reconciliation statement: Opening balance ₦30,000; deposits ₦15,000; cheques deposited ₦10,000; cheques returned ₦3,000; bank charges ₦1,000. What is the company's new bank balance?
A. ₦38,000
B. ₦36,000
C. ₦34,000
D. ₦32,000

Correct Answer: VIEW ANSWER

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Question 24
A company issued 10,000, 5% debentures of ₦100 each at a discount of 5%. Calculate the amount received from the debenture holders.
A. ₦950,000
Correct B. ₦975,000
C. ₦1,000,000
D. ₦1,025,000

Correct Answer: B

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Question 25
A partnership is formed between two partners, A and B. A contributes ₦200,000 and B contributes ₦300,000. The profit is to be shared in the ratio 2:3. If the total profit is ₦150,000, how much will A receive?
Correct A. ₦60,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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