POST UTME VERITAS UNIVERSITY 2019 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows a balance of ₦50,000. However, the bank statement shows a balance of ₦70,000. What is the reason for the difference?
A. Bank charges
B. Interest earned
C. Unrecorded cash transactions
D. Error in bank statement
Question 2
A company's balance sheet shows a non-current asset of ₦1,500,000 and a non-current liability of ₦1,000,000. What is the net non-current position?
A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000
Question 3
A company has two partners, A and B. Partner A has a 60% interest in the company, and partner B has a 40% interest. If the company's profit is ₦240,000, and partner A's drawings are ₦40,000, what is partner B's share of the profit?
A. ₦120,000
B. ₦160,000
C. ₦180,000
D. ₦200,000
Question 4
A company has a partnership account. The journal entry to record the admission of a new partner, C, who brings in ₦50,000 cash is:
A. Debit C's Capital 50,000, Credit Cash 50,000
B. Debit Cash 50,000, Credit C's Capital 50,000
C. Debit C's Capital 50,000, Credit Bank 50,000
D. Debit Bank 50,000, Credit C's Capital 50,000
Question 5
A company uses the self-balancing ledger system. The company's cash account shows a balance of ₦500,000 and the company's accounts payable account shows a balance of ₦200,000. If the company purchases goods worth ₦300,000 on credit, what is the total amount of the company's assets?
A. ₦800,000
B. ₦900,000
C. ₦1,000,000
D. ₦1,100,000
Question 6
A company's manufacturing account for the year ended 31st December 2022 shows the following: Cost of Goods Sold ₦1,500,000, Opening Work-in-Progress ₦200,000, and Closing Work-in-Progress ₦300,000. What is the value of Finished Goods?
A. ₦1,700,000
B. ₦1,600,000
C. ₦1,500,000
D. ₦1,400,000
Question 7
A company's trading account shows a profit of ₦300,000. However, the profit and loss account shows a loss of ₦100,000. What is the reason for the difference?
A. Error in trading account
B. Error in profit and loss account
C. Unrecorded expenses
D. Unrecorded revenues
Question 8
A company's trial balance shows a debit balance of ₦120,000 in the account 'Rent Received' and a credit balance of ₦150,000 in the account 'Rent Paid'. What is the correct journal entry to rectify this error?
A. Debit Rent Paid ₦30,000, Credit Rent Received ₦30,000
B. Debit Rent Received ₦30,000, Credit Rent Paid ₦30,000
C. Debit Rent Received ₦120,000, Credit Rent Paid ₦120,000
D. Debit Rent Paid ₦150,000, Credit Rent Received ₦150,000
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. ₦15,000
C. ₦20,000
D. ₦25,000
Question 10
A company's profit and loss account shows a gross profit of ₦1,000,000 and a net profit of ₦500,000. What is the operating profit?
A. ₦400,000
B. ₦500,000
C. ₦600,000
D. ₦700,000
Question 11
A company issued 5,000 shares of 10 par value at a premium of 5 per share. The proceeds from the issue of shares were credited to a 'Share Capital' account. Prepare the journal entry to record the issue of shares.
A. Debit Share Capital 50,000, Credit Cash 50,000
B. Debit Share Capital 50,000, Credit Cash 25,000
C. Debit Share Capital 25,000, Credit Cash 50,000
D. Debit Share Capital 25,000, Credit Cash 25,000
Question 12
A company has a double-entry system of accounting. The journal entry to record the purchase of goods for ₦50,000 cash is:
A. Debit Purchases 50,000, Credit Cash 50,000
B. Debit Cash 50,000, Credit Purchases 50,000
C. Debit Purchases 50,000, Credit Bank 50,000
D. Debit Bank 50,000, Credit Purchases 50,000
Question 13
A company purchases a machine for ₦50,000 and depreciates it by 10% per annum. What is the amount of depreciation for the first year?
A. ₦5,000
B. ₦10,000
C. ₦15,000
D. ₦20,000
Question 14
A manufacturing company uses a job-order costing system. The company has two departments: Cutting and Assembly. The Cutting Department has a balance of ₦200,000 in Work-in-Progress (WIP) and the Assembly Department has a balance of ₦150,000 in WIP. If the company sells a product for ₦1,000,000, what is the total cost of the product?
A. ₦350,000
B. ₦400,000
C. ₦450,000
D. ₦500,000
Question 15
A company's trial balance shows a debit balance of ₦50,000 in the account 'Rent Received'. The company's accounting policy requires that all rent received be credited to the 'Rent Received' account. However, the company's management has decided to treat the rent received as revenue. What is the correct journal entry to record this adjustment?
A. Debit Rent Received ₦50,000, Credit Revenue ₦50,000
B. Debit Rent Received ₦50,000, Credit Profit and Loss Account ₦50,000
C. Credit Rent Received ₦50,000, Debit Revenue ₦50,000
D. Credit Rent Received ₦50,000, Debit Profit and Loss Account ₦50,000

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