Practice post utme unilag accounting 2019 Past Questions

Question 1

A company issued 10,000 shares of 1 par value at a premium of 3 per share. The shares were sold for 6 each. Calculate the total amount received from the sale of shares.

A. ₦30,000,000

B. ₦40,000,000

C. ₦50,000,000

Correct D. ₦60,000,000

Correct Answer: D

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Question 2

A company purchased a machine for ₦1,500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation using the straight-line method.

A. ₦250,000

B. ₦300,000

Correct C. ₦350,000

D. ₦400,000

Correct Answer: C

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Question 3

A company has the following ledger balances: Cash ₦50,000, Accounts Payable ₦30,000, Common Stock ₦100,000. Prepare a trial balance.

Correct A. Cash ₦50,000, Accounts Payable ₦30,000, Common Stock ₦100,000

B. Cash ₦50,000, Accounts Payable ₦30,000, Common Stock ₦120,000

C. Cash ₦50,000, Accounts Payable ₦30,000, Common Stock ₦90,000

D. Cash ₦50,000, Accounts Payable ₦30,000, Common Stock ₦110,000

Correct Answer: A

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Question 4

A company issued 5,000 shares of 1 par value at a premium of 2 per share. The shares were sold for 4 each. Calculate the total amount received from the sale of shares.

A. ₦20,000,000

B. ₦25,000,000

Correct C. ₦30,000,000

D. ₦35,000,000

Correct Answer: C

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Question 5

A company purchased a machine for ₦2,000,000. The machine has a useful life of 5 years and a residual value of ₦100,000. Calculate the annual depreciation using the straight-line method.

A. ₦300,000

B. ₦350,000

Correct C. ₦400,000

D. ₦450,000

Correct Answer: C

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Question 6

A company's cash book shows a credit balance of ₦12,500. However, the bank statement shows a debit balance of ₦10,000. What is the correct explanation for this discrepancy?

A. The company has a loan outstanding with the bank.

B. The company has deposited cash into the bank but has not yet been credited.

C. The company has written a cheque but has not yet been debited.

Correct D. The company has a credit balance in its cash book but a debit balance in its bank statement.

Correct Answer: D

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Question 7

A company purchases a machine for ₦50,000 and depreciates it by 10% per annum. What is the value of the machine after 3 years?

A. ₦30,500

B. ₦31,500

Correct C. ₦32,500

D. ₦33,500

Correct Answer: C

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Question 8

A company's trading account shows a profit of ₦20,000. However, the profit and loss account shows a loss of ₦15,000. What is the correct explanation for this discrepancy?

A. The company has a loan outstanding with the bank.

B. The company has deposited cash into the bank but has not yet been credited.

C. The company has written a cheque but has not yet been debited.

Correct D. The company has a credit balance in its trading account but a debit balance in its profit and loss account.

Correct Answer: D

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Question 9

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

B. ₦12,000

C. ₦15,000

Correct D. ₦18,000

Correct Answer: D

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Question 10

A company purchases a machine for ₦50,000 and depreciates it by 10% per annum. What is the value of the machine after 2 years?

A. ₦36,500

B. ₦37,500

Correct C. ₦38,500

D. ₦39,500

Correct Answer: C

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Question 11

A company issued 5,000 shares of 10 par value at a premium of 5 per share. If the company received a total of 250,000, what is the amount of the premium received?

A. ₦125,000

Correct B. ₦150,000

C. ₦175,000

D. ₦200,000

Correct Answer: B

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Question 12

A trader's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Sales | | 1,500 | | 3rd Jan | Cash | | 1,200 | | 4th Jan | Purchases | 800 | | | 5th Jan | Cash | | 900 | What is the balance in the cash book on 5th January?

Correct A. ₦1,700

B. ₦1,800

C. ₦1,900

D. ₦2,000

Correct Answer: A

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Question 13

A company's balance sheet as at 31st December 2018 is as follows: | Assets | ₦ | Liabilities | ₦ | | --- | --- | --- | --- | | Cash | 10,000 | Share Capital | 50,000 | | Debtors | 20,000 | Profit & Loss A/c | 30,000 | | Stock | 40,000 | | | | | 70,000 | | 80,000 | What is the amount of the company's total assets?

Correct A. ₦70,000

B. ₦80,000

C. ₦90,000

D. ₦100,000

Correct Answer: A

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Question 14

A partnership agreement between two partners, A and B, is as follows: | Partner | Capital | Profit Sharing Ratio | | --- | --- | --- | | A | 50,000 | 3:2 | | B | 30,000 | | | If the profit for the year is ₦60,000, what is A's share of the profit?

A. ₦30,000

Correct B. ₦36,000

C. ₦42,000

D. ₦48,000

Correct Answer: B

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Question 15

A company issued 10,000 shares of 5 par value at a premium of 2 per share. If the company received a total of 200,000, what is the amount of the premium received?

A. ₦100,000

Correct B. ₦120,000

C. ₦140,000

D. ₦160,000

Correct Answer: B

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Question 16

A company uses a job costing system to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department incurs costs of ₦120,000 and the Assembly department incurs costs of ₦180,000. The company produces 1,000 units of a product. The Cutting department incurs a direct labor cost of ₦50 per unit and the Assembly department incurs a direct labor cost of ₦30 per unit. The company uses a predetermined overhead rate of 150% of direct labor cost. Calculate the total cost of production for the 1,000 units.

A. ₦450,000

Correct B. ₦525,000

C. ₦600,000

D. ₦675,000

Correct Answer: B

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Question 17

A company uses the double entry system of accounting. The company's trial balance as at 31st December 2022 is as follows: Assets: ₦1,500,000; Liabilities: ₦800,000; Equity: ₦700,000 The company's accountant has prepared the following journal entry for the year: Debit: ₦200,000; Credit: ₦200,000 What is the effect of this journal entry on the company's financial position?

A. The company's assets will decrease by ₦200,000.

B. The company's liabilities will increase by ₦200,000.

C. The company's equity will decrease by ₦200,000.

Correct D. The company's assets will increase by ₦200,000.

Correct Answer: D

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Question 18

A company uses the straight-line method of depreciation. The company's asset has a cost of ₦500,000 and a residual value of ₦50,000. The asset is expected to have a useful life of 5 years. Calculate the annual depreciation charge.

A. ₦90,000

Correct B. ₦100,000

C. ₦110,000

D. ₦120,000

Correct Answer: B

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Question 19

A company uses the self-balancing ledger system. The company's ledger account for the year ended 31st December 2022 is as follows: Debit: ₦200,000; Credit: ₦200,000 What is the effect of this ledger account on the company's financial position?

A. The company's assets will decrease by ₦200,000.

B. The company's liabilities will increase by ₦200,000.

C. The company's equity will decrease by ₦200,000.

Correct D. The company's assets will increase by ₦200,000.

Correct Answer: D

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Question 20

A company uses the control account system. The company's control account for the year ended 31st December 2022 is as follows: Debit: ₦300,000; Credit: ₦300,000 What is the effect of this control account on the company's financial position?

A. The company's assets will decrease by ₦300,000.

B. The company's liabilities will increase by ₦300,000.

C. The company's equity will decrease by ₦300,000.

Correct D. The company's assets will increase by ₦300,000.

Correct Answer: D

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Question 21

A company uses the double entry system of accounting. The company's trial balance as at 31st December 2022 is as follows: Assets: ₦1,500,000; Liabilities: ₦800,000; Equity: ₦700,000 The company's accountant has prepared the following journal entry for the year: Debit: ₦200,000; Credit: ₦200,000 What is the effect of this journal entry on the company's financial position?

A. The company's assets will decrease by ₦200,000.

B. The company's liabilities will increase by ₦200,000.

C. The company's equity will decrease by ₦200,000.

Correct D. The company's assets will increase by ₦200,000.

Correct Answer: D

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Question 22

A company uses the straight-line method of depreciation. The company's asset has a cost of ₦500,000 and a residual value of ₦50,000. The asset is expected to have a useful life of 5 years. Calculate the annual depreciation charge.

A. ₦90,000

Correct B. ₦100,000

C. ₦110,000

D. ₦120,000

Correct Answer: B

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Question 23

A company uses the self-balancing ledger system. The company's ledger account for the year ended 31st December 2022 is as follows: Debit: ₦200,000; Credit: ₦200,000 What is the effect of this ledger account on the company's financial position?

A. The company's assets will decrease by ₦200,000.

B. The company's liabilities will increase by ₦200,000.

C. The company's equity will decrease by ₦200,000.

D. The company's assets will increase by ₦200,000.

Correct Answer: VIEW ANSWER

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Question 24

A company's trial balance shows a debit balance of ₦15,000 in the account 'Rent Received' and a credit balance of ₦20,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?

A. Debit Rent Paid ₦5,000, Credit Rent Received ₦5,000

Correct B. Debit Rent Received ₦5,000, Credit Rent Paid ₦5,000

C. Debit Rent Paid ₦20,000, Credit Rent Received ₦20,000

D. Debit Rent Received ₦15,000, Credit Rent Paid ₦15,000

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-sharing ratio is 3:2. What is the distribution of profit between A and B?

Correct A. ₦90,000 to A, ₦60,000 to B

B. ₦60,000 to A, ₦90,000 to B

C. ₦120,000 to A, ₦80,000 to B

D. ₦80,000 to A, ₦120,000 to B

Correct Answer: A

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