POST UTME VERITAS UNIVERSITY 2018 Accounting | Objective

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Question 1
A company's trading account for the year ended 31st December 20XX showed a profit of ₠ 150,000. The company also had a non-trading income of ₠ 20,000. Calculate the total profit for the year.
A. ₠ 170,000
B. ₠ 170,500
C. ₠ 171,000
D. ₠ 172,000
Question 2
A company issued 5,000 shares of ₠ 10 each at a premium of ₠ 5 per share. The company also issued 2,000 10% debentures of ₠ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₠ 52,500
B. ₠ 55,000
C. ₠ 57,500
D. ₠ 60,000
Question 3
A company issues 1,000 shares of ₦ 10 each at a premium of ₦ 5 per share. The company also issues 500 10% debentures of ₦ 100 each. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 15,000
B. ₦ 20,000
C. ₦ 25,000
D. ₦ 30,000
Question 4
The following is the journal entry for the purchase of a machine on credit:
A. Debit Machine A/c ₦10,000, Credit Bank A/c ₦10,000
B. Debit Bank A/c ₦10,000, Credit Machine A/c ₦10,000
C. Debit Machine A/c ₦10,000, Credit Cash A/c ₦10,000
D. Debit Bank A/c ₦10,000, Credit Cash A/c ₦10,000
Question 5
A company's trial balance shows the following balances: Accounts Payable ₦ 10,000, Accounts Receivable ₦ 20,000, and Common Stock ₦ 50,000. Prepare the company's balance sheet.
A. ₦ 80,000
B. ₦ 90,000
C. ₦ 100,000
D. ₦ 110,000
Question 6
A company's trading account for the year ended 31st December 2022 shows a profit of ₦1,500,000. The company's balance sheet as at 31st December 2022 shows a current asset of ₦2,500,000 and a non-current asset of ₦3,000,000. What is the company's total asset value as at 31st December 2022?
A. ₦5,500,000
B. ₦6,000,000
C. ₦5,000,000
D. ₦4,500,000
Question 7
A company issued 5,000, 10% debentures of ₦100 each at a premium of 10%. The debentures are redeemable at the end of 5 years. The company pays interest annually. Calculate the amount of interest paid at the end of the first year.
A. ₦50,000
B. ₦50,500
C. ₦51,000
D. ₦51,500
Question 8
A company's cash book shows a balance of ₦15,000. The bank statement shows a balance of ₦18,000. The difference is due to:
A. Cheques deposited but not yet credited
B. Cheques issued but not yet debited
C. Bank charges
D. Interest on bank balance
Question 9
A company's balance sheet as at 31st December, 2022, showed the following: Share Capital ₦500,000; Profit and Loss Account ₦300,000; Accumulated Depreciation ₦100,000. Prepare the necessary ledger accounts to rectify the errors in the balance sheet.
A. Debit Share Capital ₦100,000; Credit Accumulated Depreciation ₦100,000
B. Debit Profit and Loss Account ₦100,000; Credit Accumulated Depreciation ₦100,000
C. Debit Share Capital ₦100,000; Credit Profit and Loss Account ₦100,000
D. Debit Accumulated Depreciation ₦100,000; Credit Profit and Loss Account ₦100,000
Question 10
A company uses the single-entry system of accounting. The following transactions occurred during the year: January 1: Cash 10,000 January 15: Accounts Receivable 5,000 February 1: Equipment 8,000 March 15: Salaries Expense 2,000 April 1: Inventory 6,000 May 15: Utilities Expense 1,500 June 1: Notes Payable 12,000 July 15: Rent Expense 3,000 August 1: Accounts Payable 9,000 September 15: Depreciation Expense 2,500 October 1: Common Stock 18,000 November 15: Retained Earnings 4,000 December 31: Cost of Goods Sold 15,000 What is the company's net income for the year?
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000
Question 11
A government agency is responsible for the collection of taxes. The agency's financial year ends on 31st December 2022. The agency's balance sheet as at 31st December 2022 shows a current liability of ₦1,000,000 and a non-current liability of ₦2,000,000. What is the agency's total liability as at 31st December 2022?
A. ₦3,000,000
B. ₦2,500,000
C. ₦3,500,000
D. ₦2,000,000
Question 12
A company uses the perpetual inventory system. On January 1, 2022, it had 1,000 units of a product in stock, costing ₦50 each. During the year, 500 units were sold, and 200 units were returned by customers. The company purchased 800 units at ₦60 each and 300 units at ₦70 each. Calculate the cost of goods sold for the year.
A. ₦28,000
B. ₦30,000
C. ₦32,000
D. ₦35,000
Question 13
A company has the following ledger balances: | Account | Debit | Credit | | --- | --- | --- | | Cash | ₦10,000 | | | Accounts Payable | | ₦5,000 | | Sales Revenue | ₦20,000 | | | Cost of Goods Sold | | ₦15,000 | What is the net profit for the period?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 14
A company's trial balance as at December 31, 2022, is as follows: Debit ₦ 50,000 Cash ₦ 20,000 Accounts Payable ₦ 30,000 Equipment ₦ 10,000 Salaries Payable ₦ 40,000 Notes Payable ₦ 20,000 Accounts Receivable ₦ 15,000 Prepaid Rent ₦ 25,000 Inventory ₦ 35,000 Common Stock ₦ 45,000 Retained Earnings Credit ₦ 60,000 Sales Revenue ₦ 25,000 Rent Expense ₦ 30,000 Salaries Expense ₦ 20,000 Utilities Expense ₦ 15,000 Depreciation Expense ₦ 40,000 Cost of Goods Sold What is the company's net income for the year?
A. ₦ 5,000
B. ₦ 10,000
C. ₦ 15,000
D. ₦ 20,000
Question 15
A company's cash book shows a balance of ₦20,000. The bank statement shows a balance of ₦22,000. The difference is due to:
A. Cheques deposited but not yet credited
B. Cheques issued but not yet debited
C. Bank charges
D. Interest on bank balance

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