POST UTME UNIBEN 2018 Accounting | Objective

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Question 1
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦ 10,000
B. ₦ 50,000
Correct C. ₦ 55,000
D. ₦ 60,000

Correct Answer: C

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Question 2
A firm has a trial balance as follows: | Account | Debit | Credit | | --- | --- | --- | | Cash | 10,000 | 0 | | Accounts Payable | 0 | 5,000 | | Sales Revenue | 0 | 20,000 | | Cost of Goods Sold | 15,000 | 0 | | Net Income | 0 | 0 | | Total | 25,000 | 25,000 | What is the correct journal entry to correct the error in the trial balance?
A. Debit Cash ₦ 5,000, Credit Accounts Payable ₦ 5,000
Correct B. Debit Sales Revenue ₦ 5,000, Credit Cost of Goods Sold ₦ 5,000
C. Debit Net Income ₦ 5,000, Credit Retained Earnings ₦ 5,000
D. Debit Cash ₦ 10,000, Credit Accounts Payable ₦ 10,000

Correct Answer: B

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Question 3
A company issued 5,000 ₦ 1 shares at a premium of ₦ 0.50 per share. The issue expenses were ₦ 2,000. Calculate the total amount received from the issue of shares.
A. ₦ 25,000
Correct B. ₦ 27,000
C. ₦ 29,000
D. ₦ 31,000

Correct Answer: B

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Question 4
A partnership has the following capital accounts: | Partner | Capital | Drawing | | --- | --- | --- | | A | 10,000 | 0 | | B | 5,000 | 2,000 | | C | 0 | 0 | What is the total capital of the partnership?
A. ₦ 15,000
B. ₦ 17,000
Correct C. ₦ 20,000
D. ₦ 22,000

Correct Answer: C

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Question 5
A company has the following balance sheet: | Asset | ₦ | Liability | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Accounts Payable | 5,000 | | Accounts Receivable | 20,000 | Notes Payable | 10,000 | | Inventory | 30,000 | Common Stock | 20,000 | | Total | 60,000 | Total | 55,000 | What is the amount of the company's net income?
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
Correct D. ₦ 20,000

Correct Answer: D

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Question 6
A company's trading account for the year ended 31st December 2018 is as follows: Debit: Sundry Expenses: ₦120,000 Wages: ₦150,000 Rent: ₦80,000 Credit: Sales: ₦1,200,000 Purchases: ₦900,000 Determine the company's net profit for the year.
A. ₦120,000
B. ₦150,000
C. ₦80,000
Correct D. ₦200,000

Correct Answer: D

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Question 7
The following is a cash book for XYZ Ltd. for the year ended 31st December 2018: Date | Debit | Credit 1st Jan | ₦50,000 | Bank 15th Jan | Bank | ₦30,000 31st Jan | ₦20,000 | Cash 15th Feb | Cash | ₦40,000 31st Mar | ₦30,000 | Bank Determine the bank balance on 31st March 2018.
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 8
A, B and C are partners in a firm sharing profits and losses in the ratio 3:2:1. Their respective capitals are ₦120,000, ₦80,000 and ₦60,000. The firm's profit for the year ended 31st December 2018 is ₦150,000. Calculate the amount of profit to be distributed to each partner.
A. ₦30,000
B. ₦40,000
Correct C. ₦50,000
D. ₦60,000

Correct Answer: C

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Question 9
A company uses the percentage of completion method to value its construction contracts. At the end of the current year, it has completed 75% of a contract that was valued at ₦1,500,000. What is the value of the contract at the end of the current year?
Correct A. ₦1,125,000
B. ₦1,500,000
C. ₦1,875,000
D. ₦2,250,000

Correct Answer: A

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Question 10
A company's trial balance shows the following balances: Accounts Payable ₦120,000, Accounts Receivable ₦150,000, Common Stock ₦500,000, Dividends ₦20,000, Retained Earnings ₦300,000. What is the company's total equity?
A. ₦820,000
Correct B. ₦900,000
C. ₦1,020,000
D. ₦1,200,000

Correct Answer: B

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Question 11
A company uses the straight-line method to depreciate its assets. If the asset's cost is ₦150,000 and its useful life is 5 years, what is the annual depreciation?
Correct A. ₦30,000
B. ₦25,000
C. ₦20,000
D. ₦15,000

Correct Answer: A

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Question 12
A company's balance sheet shows the following: Cash ₦100,000, Accounts Payable ₦120,000, Common Stock ₦500,000, Retained Earnings ₦300,000. What is the company's total liabilities?
A. ₦640,000
Correct B. ₦720,000
C. ₦800,000
D. ₦920,000

Correct Answer: B

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Question 13
A company's income statement shows the following: Sales ₦1,500,000, Cost of Goods Sold ₦900,000, Operating Expenses ₦200,000. What is the company's net income?
A. ₦400,000
B. ₦500,000
Correct C. ₦600,000
D. ₦700,000

Correct Answer: C

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Question 14
A company's balance sheet shows the following: Cash ₦100,000, Accounts Payable ₦120,000, Common Stock ₦500,000, Retained Earnings ₦300,000. What is the company's total assets?
A. ₦920,000
B. ₦1,020,000
Correct C. ₦1,120,000
D. ₦1,220,000

Correct Answer: C

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Question 15
A company's income statement shows the following: Sales ₦1,500,000, Cost of Goods Sold ₦900,000, Operating Expenses ₦200,000. What is the company's gross profit?
A. ₦400,000
B. ₦500,000
Correct C. ₦600,000
D. ₦700,000

Correct Answer: C

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Question 16
A company's balance sheet shows the following: Cash ₦100,000, Accounts Payable ₦120,000, Common Stock ₦500,000, Retained Earnings ₦300,000. What is the company's total equity?
A. ₦920,000
Correct B. ₦1,020,000
C. ₦1,120,000
D. ₦1,220,000

Correct Answer: B

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Question 17
A company's income statement shows the following: Sales ₦1,500,000, Cost of Goods Sold ₦900,000, Operating Expenses ₦200,000. What is the company's net income?
A. ₦400,000
B. ₦500,000
Correct C. ₦600,000
D. ₦700,000

Correct Answer: C

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Question 18
A company issued 5,000, 10% debentures of ₦100 each. Calculate the amount of interest payable annually.
Correct A. ₦50,000
B. ₦25,000
C. ₦12,500
D. ₦62,500

Correct Answer: A

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Question 19
A partnership has two partners, A and B. The capital accounts of A and B are ₦50,000 and ₦30,000 respectively. The profit-sharing ratio is 3:2. Calculate the amount of profit to be distributed to A.
Correct A. ₦18,000
B. ₦20,000
C. ₦22,000
D. ₦24,000

Correct Answer: A

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Question 20
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦100,000, Cost of Goods Sold ₦60,000. Prepare the company's income statement.
A. Sales Revenue ₦100,000, Cost of Goods Sold ₦60,000, Gross Profit ₦40,000
B. Sales Revenue ₦100,000, Cost of Goods Sold ₦60,000, Gross Profit ₦40,000, Operating Expenses ₦20,000
Correct C. Sales Revenue ₦100,000, Cost of Goods Sold ₦60,000, Gross Profit ₦40,000, Operating Expenses ₦20,000, Net Income ₦20,000
D. Sales Revenue ₦100,000, Cost of Goods Sold ₦60,000, Gross Profit ₦40,000, Operating Expenses ₦20,000, Net Income ₦20,000, Dividends ₦10,000

Correct Answer: C

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Question 21
A company uses the perpetual inventory system. On January 1, the inventory balance was ₦50,000. During the year, purchases were ₦100,000 and sales were ₦150,000. Calculate the cost of goods sold.
A. ₦80,000
B. ₦90,000
Correct C. ₦100,000
D. ₦110,000

Correct Answer: C

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Question 22
A company's balance sheet shows the following balances: Cash ₦20,000, Accounts Payable ₦50,000, Common Stock ₦100,000. Prepare the company's statement of stockholders' equity.
Correct A. Common Stock ₦100,000, Retained Earnings ₦0, Dividends ₦0
B. Common Stock ₦100,000, Retained Earnings ₦0, Dividends ₦0, Treasury Stock ₦0
C. Common Stock ₦100,000, Retained Earnings ₦0, Dividends ₦0, Treasury Stock ₦0, Additional Paid-in Capital ₦0
D. Common Stock ₦100,000, Retained Earnings ₦0, Dividends ₦0, Treasury Stock ₦0, Additional Paid-in Capital ₦0, Foreign Currency Translation Adjustment ₦0

Correct Answer: A

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Question 23
In a partnership account, the capital of one partner is increased by ₦50,000 and the capital of another partner is decreased by ₦20,000. If the initial capital of the first partner was ₦150,000 and the initial capital of the second partner was ₦80,000, what is the new capital of the first partner?
A. ₦170,000
Correct B. ₦160,000
C. ₦180,000
D. ₦190,000

Correct Answer: B

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Question 24
A company has two departments: A and B. Department A has a production cost of ₦120,000 and a selling price of ₦180,000. Department B has a production cost of ₦80,000 and a selling price of ₦120,000. If the company sold 500 units of product A and 300 units of product B, what is the total profit?
A. ₦150,000
B. ₦180,000
Correct C. ₦200,000
D. ₦220,000

Correct Answer: C

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Question 25
A company has a capital of ₦1,000,000 and a profit of ₦200,000. If the company issues 10,000 shares of ₦1 each, what is the new capital?
Correct A. ₦1,200,000
B. ₦1,100,000
C. ₦1,200,000
D. ₦1,300,000

Correct Answer: A

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