Practice post utme uniosun accounting 2021 Past Questions

Question 1

A company uses the single-entry system of accounting. The company's cash book shows a debit balance of ₦15,000. The company's bank statement shows a credit balance of ₦20,000. What is the correct journal entry to reconcile the two balances?

Correct A. ₦15,000 debit to Cash and ₦20,000 credit to Bank

B. ₦20,000 debit to Bank and ₦15,000 credit to Cash

C. ₦15,000 credit to Cash and ₦20,000 debit to Bank

D. ₦20,000 credit to Bank and ₦15,000 debit to Cash

Correct Answer: A

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Question 2

A company's trading account shows a profit of ₦50,000. The company's profit and loss account shows a net profit of ₦75,000. What is the correct journal entry to close the trading account?

Correct A. ₦50,000 debit to Trading Account and ₦75,000 credit to Profit and Loss Account

B. ₦75,000 debit to Profit and Loss Account and ₦50,000 credit to Trading Account

C. ₦50,000 credit to Trading Account and ₦75,000 debit to Profit and Loss Account

D. ₦75,000 credit to Profit and Loss Account and ₦50,000 debit to Trading Account

Correct Answer: A

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Question 3

A company's balance sheet shows a total asset value of ₦100,000. The company's balance sheet also shows a total liability value of ₦50,000. What is the correct journal entry to record the depreciation of the assets?

Correct A. ₦50,000 debit to Depreciation Expense and ₦50,000 credit to Accumulated Depreciation

B. ₦100,000 debit to Depreciation Expense and ₦100,000 credit to Accumulated Depreciation

C. ₦50,000 credit to Depreciation Expense and ₦50,000 debit to Accumulated Depreciation

D. ₦100,000 credit to Depreciation Expense and ₦100,000 debit to Accumulated Depreciation

Correct Answer: A

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Question 4

A company uses the double-entry system of accounting. The company's ledger shows a debit balance of ₦20,000 in the Cash account. The company's ledger also shows a credit balance of ₦30,000 in the Bank account. What is the correct journal entry to reconcile the two balances?

Correct A. ₦20,000 debit to Cash and ₦30,000 credit to Bank

B. ₦30,000 debit to Bank and ₦20,000 credit to Cash

C. ₦20,000 credit to Cash and ₦30,000 debit to Bank

D. ₦30,000 credit to Bank and ₦20,000 debit to Cash

Correct Answer: A

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Question 5

A company's balance sheet shows a total asset value of ₦150,000. The company's balance sheet also shows a total liability value of ₦75,000. What is the correct journal entry to record the depreciation of the assets?

Correct A. ₦75,000 debit to Depreciation Expense and ₦75,000 credit to Accumulated Depreciation

B. ₦150,000 debit to Depreciation Expense and ₦150,000 credit to Accumulated Depreciation

C. ₦75,000 credit to Depreciation Expense and ₦75,000 debit to Accumulated Depreciation

D. ₦150,000 credit to Depreciation Expense and ₦150,000 debit to Accumulated Depreciation

Correct Answer: A

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Question 6

In a partnership account, if the capital of one partner is increased by ₦50,000 and the capital of the other partner is decreased by ₦20,000, what is the net effect on the total capital of the partnership?

Correct A. ₦30,000 increase

B. ₦30,000 decrease

C. ₦10,000 increase

D. ₦10,000 decrease

Correct Answer: A

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Question 7

A company's trading account shows a profit of ₦200,000. Its non-trading income is ₦50,000. What is the total profit of the company?

Correct A. ₦250,000

B. ₦200,000

C. ₦150,000

D. ₦250,000

Correct Answer: A

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Question 8

A company's balance sheet shows a current liability of ₦150,000. Its non-current liability is ₦200,000. What is the total liability of the company?

Correct A. ₦350,000

B. ₦250,000

C. ₦150,000

D. ₦200,000

Correct Answer: A

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Question 9

A company's control account shows a balance of ₦100,000. Its self-balancing ledger shows a balance of ₦150,000. What is the net effect on the company's financial position?

Correct A. ₦50,000 increase

B. ₦50,000 decrease

C. ₦100,000 increase

D. ₦100,000 decrease

Correct Answer: A

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Question 10

A government agency's public sector accounting system shows a revenue of ₦500,000. Its expenditure is ₦400,000. What is the net effect on the agency's financial position?

Correct A. ₦100,000 surplus

B. ₦100,000 deficit

C. ₦500,000 surplus

D. ₦500,000 deficit

Correct Answer: A

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Question 11

A company uses the single-entry system of accounting. The following transactions are recorded in the cash book: (i) Purchase of office equipment for ₦120,000 cash. (ii) Sale of goods for ₦80,000 cash. (iii) Payment of rent for ₦20,000 by cheque. (iv) Purchase of goods for ₦60,000 by cheque. Determine the net cash received by the company from the above transactions.

A. ₦80,000

Correct B. ₦100,000

C. ₦120,000

D. ₦140,000

Correct Answer: B

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Question 12

A company's cash book shows the following transactions: (i) Purchase of office equipment for ₦120,000 cash. (ii) Sale of goods for ₦80,000 cash. (iii) Payment of rent for ₦20,000 by cheque. (iv) Purchase of goods for ₦60,000 by cheque. Determine the net cash received by the company from the above transactions.

A. ₦80,000

Correct B. ₦100,000

C. ₦120,000

D. ₦140,000

Correct Answer: B

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Question 13

A company's cash book shows the following transactions: (i) Purchase of office equipment for ₦120,000 cash. (ii) Sale of goods for ₦80,000 cash. (iii) Payment of rent for ₦20,000 by cheque. (iv) Purchase of goods for ₦60,000 by cheque. Determine the net cash received by the company from the above transactions.

A. ₦80,000

Correct B. ₦100,000

C. ₦120,000

D. ₦140,000

Correct Answer: B

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Question 14

A company's cash book shows the following transactions: (i) Purchase of office equipment for ₦120,000 cash. (ii) Sale of goods for ₦80,000 cash. (iii) Payment of rent for ₦20,000 by cheque. (iv) Purchase of goods for ₦60,000 by cheque. Determine the net cash received by the company from the above transactions.

A. ₦80,000

Correct B. ₦100,000

C. ₦120,000

D. ₦140,000

Correct Answer: B

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Question 15

A company's cash book shows the following transactions: (i) Purchase of office equipment for ₦120,000 cash. (ii) Sale of goods for ₦80,000 cash. (iii) Payment of rent for ₦20,000 by cheque. (iv) Purchase of goods for ₦60,000 by cheque. Determine the net cash received by the company from the above transactions.

A. ₦80,000

Correct B. ₦100,000

C. ₦120,000

D. ₦140,000

Correct Answer: B

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Question 16

A company uses the cash book to record all its financial transactions. The cash book shows a balance of ₦1,500,000. However, the bank statement shows a balance of ₦1,800,000. What is the reason for the difference?

A. The company has not recorded all its transactions in the cash book.

B. The bank has charged the company interest on its overdraft.

Correct C. The company has deposited cash into the bank but the bank has not yet credited the account.

D. The company has written a cheque but the bank has not yet debited the account.

Correct Answer: C

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Question 17

A company purchases a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. What is the annual depreciation charge?

A. ₦80,000

B. ₦90,000

Correct C. ₦100,000

D. ₦110,000

Correct Answer: C

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Question 18

A government agency receives a grant of ₦1,000,000 to implement a project. The grant is to be used for the following purposes: 60% for personnel costs, 20% for equipment costs, and 20% for miscellaneous costs. What is the amount allocated for personnel costs?

Correct A. ₦600,000

B. ₦800,000

C. ₦900,000

D. ₦1,000,000

Correct Answer: A

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Question 19

A company prepares a trial balance but discovers that the debit and credit totals do not agree. The debit total is ₦1,500,000 and the credit total is ₦1,800,000. What is the reason for the difference?

A. The company has not recorded all its transactions in the trial balance.

Correct B. The company has made an error in the preparation of the trial balance.

C. The company has not included all its accounts in the trial balance.

D. The company has not checked the trial balance for errors.

Correct Answer: B

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Question 20

A manufacturing company produces two products: A and B. Product A has a selling price of ₦100,000 and a variable cost of ₦60,000. Product B has a selling price of ₦80,000 and a variable cost of ₦40,000. What is the contribution margin ratio for Product A?

Correct A. 60%

B. 70%

C. 80%

D. 90%

Correct Answer: A

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Question 21

A company's trading account for the year ended 31st December 2020 is as follows: Sales: ₦1,500,000, Cost of Goods Sold: ₦900,000, Gross Profit: ₦600,000. Calculate the company's net profit for the year.

A. ₦600,000

B. ₦900,000

Correct C. ₦1,200,000

D. ₦1,500,000

Correct Answer: C

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Question 22

A company's balance sheet as at 31st December 2020 is as follows: Equity: ₦1,000,000, Liabilities: ₦800,000. Calculate the company's net worth.

Correct A. ₦1,000,000

B. ₦800,000

C. ₦1,200,000

D. ₦1,500,000

Correct Answer: A

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Question 23

A company's cash book for the year ended 31st December 2020 is as follows: Cash at Bank: ₦500,000, Cash in Hand: ₦200,000. Calculate the company's total cash.

Correct A. ₦700,000

B. ₦600,000

C. ₦800,000

D. ₦900,000

Correct Answer: A

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Question 24

A company's manufacturing account for the year ended 31st December 2020 is as follows: Direct Materials: ₦300,000, Direct Labour: ₦200,000. Calculate the company's total manufacturing cost.

A. ₦500,000

B. ₦400,000

Correct C. ₦600,000

D. ₦700,000

Correct Answer: C

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Question 25

A company's departmental account for the year ended 31st December 2020 is as follows: Sales: ₦1,000,000, Cost of Goods Sold: ₦600,000. Calculate 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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