POST UTME UNN 2018 Accounting | Objective

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Question 1
In a partnership account, what is the correct method of calculating the capital of a partner who has been absent for a year?
A. Capital is calculated as the average of the partner's capital for the previous year and the current year.
Correct B. Capital is calculated as the average of the partner's capital for the previous year and the current year, minus any drawings made during the current year.
C. Capital is calculated as the average of the partner's capital for the previous year and the current year, plus any additional capital introduced during the current year.
D. Capital is calculated as the average of the partner's capital for the previous year and the current year, minus any drawings made during the current year and plus any additional capital introduced during the current year.

Correct Answer: B

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Question 2
A public sector organization has the following transactions for the year: Debit: Salaries ₦ 500,000, Rent ₦ 200,000, Depreciation ₦ 100,000 Credit: Sales ₦ 1,000,000, Purchases ₦ 800,000, Capital ₦ 50,000 What is the net profit of the organization?
Correct A. ₦ 150,000
B. ₦ 200,000
C. ₦ 250,000
D. ₦ 300,000

Correct Answer: A

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Question 3
A company has the following trial balance: Debit: Accounts Payable ₦ 100,000, Salaries ₦ 200,000, Rent ₦ 50,000 Credit: Sales ₦ 500,000, Purchases ₦ 300,000, Capital ₦ 150,000 What is the correct journal entry to rectify the error?
A. Debit: Salaries ₦ 50,000, Credit: Accounts Payable ₦ 50,000
Correct B. Debit: Rent ₦ 50,000, Credit: Accounts Payable ₦ 50,000
C. Debit: Salaries ₦ 50,000, Credit: Rent ₦ 50,000
D. Debit: Accounts Payable ₦ 50,000, Credit: Salaries ₦ 50,000

Correct Answer: B

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Question 4
A company has the following balance sheet: Assets: Cash ₦ 100,000, Accounts Payable ₦ 50,000, Capital ₦ 150,000 Liabilities: Sales ₦ 500,000, Purchases ₦ 300,000, Rent ₦ 50,000 What is the correct formula to calculate the current ratio?
Correct A. Current Ratio = (Current Assets / Current Liabilities)
B. Current Ratio = (Current Assets / Total Assets)
C. Current Ratio = (Total Liabilities / Current Liabilities)
D. Current Ratio = (Current Assets / Total Liabilities)

Correct Answer: A

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Question 5
A company has the following profit and loss account: Sales ₦ 500,000, Purchases ₦ 300,000, Salaries ₦ 200,000, Rent ₦ 50,000 What is the correct formula to calculate the gross profit?
Correct A. Gross Profit = Sales - Purchases
B. Gross Profit = Sales - (Purchases + Salaries + Rent)
C. Gross Profit = (Sales - Purchases) - Salaries
D. Gross Profit = (Sales - Purchases) - (Salaries + Rent)

Correct Answer: A

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Question 6
A company's accounting records show the following transactions for the year ended December 31, 2018: Cash: ₦100,000; Sales: ₦500,000; Purchases: ₦300,000; Wages: ₦150,000; Rent: ₦50,000; Depreciation: ₦20,000; Interest on Bank Loan: ₦10,000; Bank Loan: ₦50,000; Drawings: ₦20,000. Prepare the Trading and Profit and Loss Account for the year ended December 31, 2018.
A. ₦150,000
B. ₦200,000
Correct C. ₦250,000
D. ₦300,000

Correct Answer: C

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Question 7
A partnership is formed between three individuals, A, B, and C, who contribute ₦100,000, ₦150,000, and ₦200,000 respectively. The partnership agreement states that the profits and losses will be shared in the ratio 2:3:4. If the partnership makes a profit of ₦50,000, how much will each partner receive?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 8
A company maintains a cash book in which all cash transactions are recorded. The cash book shows the following transactions: Cash: ₦50,000; Sales: ₦200,000; Purchases: ₦150,000; Wages: ₦30,000; Rent: ₦20,000; Depreciation: ₦10,000; Interest on Bank Loan: ₦5,000; Bank Loan: ₦30,000; Drawings: ₦10,000. Prepare the Cash Book for the year ended December 31, 2018.
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 9
A company's bank statement shows the following transactions: ₦50,000; ₦200,000; ₦150,000; ₦30,000; ₦20,000; ₦10,000; ₦5,000; ₦30,000; ₦10,000. Prepare the Bank Reconciliation Statement for the year ended December 31, 2018.
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 10
A company maintains incomplete records and the following transactions are recorded: ₦50,000; ₦200,000; ₦150,000; ₦30,000; ₦20,000; ₦10,000; ₦5,000; ₦30,000; ₦10,000. Prepare the Single Entry System for the year ended December 31, 2018.
A. ₦100,000
B. ₦150,000
Correct C. ₦200,000
D. ₦250,000

Correct Answer: C

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Question 11
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. Prepare the journal entry for the issue of shares.
Correct A. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 10,000
B. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000, Credit Issue Expenses £ 10,000
C. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Cash £ 10,000
D. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000, Credit Cash £ 5,000

Correct Answer: A

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Question 12
A company's trial balance showed the following balances: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Sales £ 20,000, Cost of Goods Sold £ 15,000. Prepare the income statement.
Correct A. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
B. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
C. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
D. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000

Correct Answer: A

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Question 13
A company's bank reconciliation statement showed a difference of £ 1,000 between the bank statement balance and the company's ledger balance. The company's ledger balance was £ 10,000. What is the bank statement balance?
Correct A. £ 11,000
B. £ 9,000
C. £ 11,000
D. £ 9,000

Correct Answer: A

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Question 14
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. The issue expenses were £ 10,000. Prepare the journal entry for the issue of shares.
Correct A. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Issue Expenses £ 10,000
B. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000, Credit Issue Expenses £ 10,000
C. Debit Share Capital £ 10,000, Credit Share Premium £ 5,000, Credit Cash £ 10,000
D. Debit Share Capital £ 10,000, Credit Share Premium £ 10,000, Credit Cash £ 5,000

Correct Answer: A

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Question 15
A company's trial balance showed the following balances: Accounts Payable £ 10,000, Accounts Receivable £ 5,000, Sales £ 20,000, Cost of Goods Sold £ 15,000. Prepare the income statement.
Correct A. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
B. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
C. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000
D. Sales £ 20,000, Cost of Goods Sold £ 15,000, Net Income £ 5,000

Correct Answer: A

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Question 16
A company's cash book shows a debit balance of ₦120,000. However, the bank statement shows a credit balance of ₦150,000. What is the correct explanation for this discrepancy?
A. The company has a cash overdraft of ₦30,000.
B. The company has a bank loan of ₦30,000.
C. The company has a cash credit of ₦30,000.
Correct D. The company has a bank overdraft of ₦30,000.

Correct Answer: D

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Question 17
A partnership is formed between two individuals, A and B, with a capital contribution of ₦200,000 and ₦300,000, respectively. After one year, the partnership shows a profit of ₦100,000. How will the profit be divided between A and B?
A. ₦60,000 to A and ₦40,000 to B.
B. ₦50,000 to A and ₦50,000 to B.
Correct C. ₦40,000 to A and ₦60,000 to B.
D. ₦30,000 to A and ₦70,000 to B.

Correct Answer: C

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Question 18
A company uses the single-entry system of accounting. The company's journal shows the following transactions: Debit: ₦50,000, Credit: ₦60,000. What is the correct entry in the ledger?
A. Debit: ₦50,000, Credit: ₦60,000.
Correct B. Debit: ₦60,000, Credit: ₦50,000.
C. Debit: ₦50,000, Credit: ₦50,000.
D. Debit: ₦60,000, Credit: ₦60,000.

Correct Answer: B

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Question 19
A manufacturing company produces two products, X and Y. The production costs for X are ₦100,000 and for Y are ₦120,000. The selling price for X is ₦150,000 and for Y is ₦180,000. What is the contribution margin for each product?
Correct A. ₦50,000 for X and ₦60,000 for Y.
B. ₦60,000 for X and ₦50,000 for Y.
C. ₦70,000 for X and ₦80,000 for Y.
D. ₦80,000 for X and ₦70,000 for Y.

Correct Answer: A

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Question 20
A company's trading account shows a profit of ₦200,000. The company's profit and loss account shows a net profit of ₦250,000. What is the correct explanation for the difference between the two accounts?
A. The company has a non-trading income of ₦50,000.
Correct B. The company has a non-trading expense of ₦50,000.
C. The company has a trading loss of ₦50,000.
D. The company has a non-trading loss of ₦50,000.

Correct Answer: B

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Question 21
A company issued 10,000 shares of 1 par value at a premium of 3 per share. If the company received a total of 35,000, what is the total amount of the premium received?
Correct A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000

Correct Answer: A

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Question 22
A company's balance sheet shows total assets of ₦500,000, total liabilities of ₦200,000, and total equity of ₦300,000. What is the company's debt-to-equity ratio?
A. 1:1
Correct B. 2:1
C. 3:1
D. 4:1

Correct Answer: B

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Question 23
A company's trial balance shows the following accounts: Cash ₦50,000, Accounts Payable ₦20,000, and Common Stock ₦100,000. What is the company's total assets?
A. ₦120,000
B. ₦150,000
C. ₦170,000
Correct D. ₦200,000

Correct Answer: D

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Question 24
A company issued 5,000 shares of 1 par value at a premium of 2 per share. If the company received a total of 10,000, what is the total amount of the premium received?
A. ₦5,000
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 25
A company's balance sheet shows total assets of ₦300,000, total liabilities of ₦100,000, and total equity of ₦200,000. What is the company's debt-to-equity ratio?
A. 1:1
Correct B. 2:1
C. 3:1
D. 4:1

Correct Answer: B

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