Practice post utme wellspring university accounting 2019 Past Questions

Question 1

A partnership is formed by three partners, A, B, and C, who contribute ₦50,000, ₦30,000, and ₦20,000 respectively. If the profit is divided in the ratio 2:3:4, find the share of profit of partner B.

A. ₦24,000

B. ₦36,000

C. ₦48,000

D. ₦60,000

Question 2

A company has the following transactions for the year: 1. Purchased office equipment for ₦120,000 2. Sold office equipment for ₦80,000 3. Purchased a vehicle for ₦200,000 4. Sold a vehicle for ₦150,000 5. Purchased a building for ₦500,000 6. Sold a building for ₦400,000 Determine the gain or loss on the disposal of assets.

A. ₦20,000

B. ₦30,000

C. ₦40,000

D. ₦50,000

Question 3

A company's trial balance showed the following balances: Accounts Payable 50,000, Accounts Receivable 20,000, Sales Revenue 100,000, Cost of Goods Sold 60,000. Prepare a classified balance sheet.

A. {Assets: 120,000, Liabilities: 50,000, Equity: 70,000}

B. {Assets: 140,000, Liabilities: 50,000, Equity: 90,000}

C. {Assets: 160,000, Liabilities: 50,000, Equity: 110,000}

D. {Assets: 180,000, Liabilities: 50,000, Equity: 130,000}

Question 4

A partnership is formed between two individuals, John and Mary, who contribute ₦200,000 and ₦300,000 respectively. The partnership agreement states that the profits will be shared in the ratio 2:3. If the partnership earns a profit of ₦150,000, how much will John receive?

A. ₦60,000

B. ₦80,000

C. ₦100,000

D. ₦120,000

Question 5

A company has a cash balance of ₦500,000 and a bank overdraft of ₦200,000. What is the total amount of cash and bank overdraft?

A. ₦600,000

B. ₦700,000

C. ₦800,000

D. ₦900,000

Question 6

A company's manufacturing overheads were 100,000, and its direct labor costs were 80,000. If the company produced 10,000 units, calculate the total manufacturing cost per unit.

A. ₦18 per unit

B. ₦20 per unit

C. ₦22 per unit

D. ₦24 per unit

Question 7

A company issued 10,000 shares of 1 par value at a premium of 3 per share. If the shares were sold for 5 each, calculate the total amount received from the sale of shares.

A. ₦30,000,000

B. ₦50,000,000

C. ₦60,000,000

D. ₦70,000,000

Question 8

A company's trial balance shows a debit balance of ₦15,000 in the account 'Depreciation Expense' and a credit balance of ₦20,000 in the account 'Accumulated Depreciation'. What is the correct journal entry to record the adjustment for depreciation?

A. ₦5,000 debit to Accumulated Depreciation and ₦5,000 credit to Depreciation Expense

B. ₦10,000 debit to Accumulated Depreciation and ₦10,000 credit to Depreciation Expense

C. ₦15,000 debit to Accumulated Depreciation and ₦15,000 credit to Depreciation Expense

D. ₦20,000 debit to Accumulated Depreciation and ₦20,000 credit to Depreciation Expense

Question 9

A company's bank statement shows the following transactions: deposit ₦10,000, withdrawal ₦5,000, and a NSF check return of ₦2,000. What is the correct bank reconciliation?

A. ₦7,000

B. ₦12,000

C. ₦17,000

D. ₦22,000

Question 10

A company uses the single-entry system of accounting. Which of the following is a limitation of this system?

A. It is difficult to prepare a trial balance.

B. It is difficult to prepare a balance sheet.

C. It is difficult to prepare a profit and loss account.

D. It is difficult to prepare a cash flow statement.

Question 11

A public sector organization has a budget of ₦1,000,000 for a project. The organization wants to allocate the budget to three departments: A, B, and C. Department A requires ₦300,000, Department B requires ₦200,000, and Department C requires ₦500,000. What is the total amount allocated to Department C?

A. ₦300,000

B. ₦400,000

C. ₦500,000

D. ₦600,000

Question 12

A manufacturing company uses a job-order costing system. The company has two departments: Cutting and Assembly. The Cutting Department incurred the following costs during the month: direct materials ₦50,000, direct labor ₦30,000, and overhead ₦20,000. The Assembly Department incurred the following costs during the month: direct materials ₦70,000, direct labor ₦40,000, and overhead ₦30,000. What is the total cost of production for the month?

A. ₦250,000

B. ₦300,000

C. ₦350,000

D. ₦400,000

Question 13