POST UTME VERITAS UNIVERSITY 2019 Accounting | Objective

Are you preparing for POST UTME VERITAS UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2019 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
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 correct this error?
A. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
B. ₦20,000 debit to Rent Paid and ₦20,000 credit to Rent Received
Correct C. ₦15,000 debit to Rent Received and ₦15,000 credit to Rent Paid
D. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid

Correct Answer: C

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Question 2
A company's balance sheet shows a decrease in its current assets by ₦50,000 and an increase in its current liabilities by ₦30,000. What is the effect on the company's net working capital?
Correct A. ₦20,000 decrease
B. ₦50,000 decrease
C. ₦30,000 increase
D. ₦20,000 increase

Correct Answer: A

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Question 3
A company's cash book shows a debit balance of ₦10,000 in the account 'Bank'. The bank statement shows a credit balance of ₦15,000. What is the correct bank reconciliation statement?
Correct A. ₦5,000 debit to Bank and ₦5,000 credit to Bank Overdraft
B. ₦10,000 debit to Bank and ₦10,000 credit to Bank Overdraft
C. ₦15,000 debit to Bank and ₦15,000 credit to Bank Overdraft
D. ₦5,000 debit to Bank and ₦5,000 credit to Bank Overdraft

Correct Answer: A

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Question 4
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
Correct B. ₦15,000
C. ₦20,000
D. ₦25,000

Correct Answer: B

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Question 5
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
Correct B. ₦10,000
C. ₦15,000
D. ₦20,000

Correct Answer: B

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Question 6
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
Correct 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

Correct Answer: B

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Question 7
A company's balance sheet as at 31st December 2022 shows the following: Share Capital ₦1,000,000, Retained Earnings ₦500,000, and Accumulated Depreciation ₦200,000. If the company issues 10,000 new shares at ₦10 per share, what is the new balance of Share Capital?
A. ₦1,100,000
Correct B. ₦1,200,000
C. ₦1,300,000
D. ₦1,400,000

Correct Answer: B

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Question 8
A company's bank statement as at 31st December 2022 shows a balance of ₦250,000. However, the company's cash book shows a balance of ₦300,000. What is the reason for the difference?
A. Bank charges
B. Interest earned
Correct C. Cheques issued but not yet presented
D. Cheques deposited but not yet credited

Correct Answer: C

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Question 9
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?
Correct A. ₦1,700,000
B. ₦1,600,000
C. ₦1,500,000
D. ₦1,400,000

Correct Answer: A

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Question 10
A company's departmental accounts for the year ended 31st December 2022 shows the following: Sales ₦1,000,000, Cost of Goods Sold ₦800,000, and Gross Profit ₦200,000. If the company's selling and administrative expenses are ₦150,000, what is the net profit?
A. ₦50,000
Correct B. ₦100,000
C. ₦150,000
D. ₦200,000

Correct Answer: B

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Question 11
A company's cash book shows a balance of ₦150,000. However, the bank statement shows a balance of ₦180,000. What is the reason for the difference?
A. Bank charges
B. Interest earned
Correct C. Unrecorded cash transactions
D. Error in bank statement

Correct Answer: C

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Question 12
A company's trading account shows a profit of ₦500,000. However, the profit and loss account shows a loss of ₦200,000. What is the reason for the difference?
A. Error in trading account
B. Error in profit and loss account
Correct C. Unrecorded expenses
D. Unrecorded revenues

Correct Answer: C

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Question 13
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
Correct D. ₦25,000

Correct Answer: D

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Question 14
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
Correct C. Unrecorded cash transactions
D. Error in bank statement

Correct Answer: C

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Question 15
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
Correct C. Unrecorded expenses
D. Unrecorded revenues

Correct Answer: C

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Question 16
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
Correct 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

Correct Answer: B

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Question 17
A company's balance sheet shows a current asset of ₦500,000 and a current liability of ₦300,000. What is the net working capital?
Correct A. ₦200,000
B. ₦150,000
C. ₦250,000
D. ₦350,000

Correct Answer: A

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Question 18
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
Correct B. ₦500,000
C. ₦600,000
D. ₦700,000

Correct Answer: B

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Question 19
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?
Correct A. ₦500,000
B. ₦600,000
C. ₦700,000
D. ₦800,000

Correct Answer: A

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Question 20
A company's trial balance shows a debit balance of ₦200,000 in the account 'Salaries and Wages' and a credit balance of ₦150,000 in the account 'Salaries and Wages Payable'. What is the correct journal entry to rectify this error?
A. Debit Salaries and Wages Payable ₦50,000, Credit Salaries and Wages ₦50,000
Correct B. Debit Salaries and Wages ₦50,000, Credit Salaries and Wages Payable ₦50,000
C. Debit Salaries and Wages ₦200,000, Credit Salaries and Wages Payable ₦200,000
D. Debit Salaries and Wages Payable ₦150,000, Credit Salaries and Wages ₦150,000

Correct Answer: B

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Question 21
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.
Correct 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

Correct Answer: A

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Question 22
A company has two partners, A and B, who share profits and losses in the ratio 3:2. The company's profit for the year ended 31st December 2022 was ₦1,500,000. Prepare the profit-sharing journal entry.
Correct A. Debit Profit Sharing 1,500,000, Credit A's Capital 1,500,000
B. Debit Profit Sharing 1,500,000, Credit B's Capital 1,500,000
C. Debit A's Capital 1,500,000, Credit Profit Sharing 1,500,000
D. Debit B's Capital 1,500,000, Credit Profit Sharing 1,500,000

Correct Answer: A

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Question 23
A company issued 10-year debentures of ₦10,000 each at a discount of 5%. The debentures are redeemable at par. Prepare the journal entry to record the issue of debentures.
Correct A. Debit Debenture Discount 5,000, Credit Cash 95,000
B. Debit Debenture Discount 5,000, Credit Cash 100,000
C. Debit Cash 95,000, Credit Debenture Discount 5,000
D. Debit Cash 100,000, Credit Debenture Discount 5,000

Correct Answer: A

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Question 24
A company has a control account for its debtors. The control account balance is ₦50,000. The ledger account for debtors shows a balance of ₦60,000. Prepare the necessary journal entry to rectify the discrepancy.
Correct A. Debit Debtors 10,000, Credit Control Account 10,000
B. Debit Control Account 10,000, Credit Debtors 10,000
C. Debit Debtors 10,000, Credit Cash 10,000
D. Debit Cash 10,000, Credit Debtors 10,000

Correct Answer: A

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Question 25
A company has a self-balancing ledger account for its creditors. The ledger account balance is ₦30,000. The control account balance is ₦20,000. Prepare the necessary journal entry to rectify the discrepancy.
Correct A. Debit Creditors 10,000, Credit Control Account 10,000
B. Debit Control Account 10,000, Credit Creditors 10,000
C. Debit Creditors 10,000, Credit Cash 10,000
D. Debit Cash 10,000, Credit Creditors 10,000

Correct Answer: A

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