POST UTME WELLSPRING UNIVERSITY 2020 Accounting | Objective

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Question 1
A company uses the double-entry system of accounting. If the 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 record the adjustment for the difference?
Correct A. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
B. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
C. ₦5,000 debit to Rent Received and ₦5,000 credit to Profit and Loss
D. ₦5,000 debit to Profit and Loss and ₦5,000 credit to Rent Received

Correct Answer: A

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Question 2
A partnership is formed between three individuals, A, B, and C. The capital contributions are ₦50,000, ₦30,000, and ₦20,000 respectively. If the profit-sharing ratio is 2:3:4, what is the ratio of their capital contributions?
Correct A. 2:3:4
B. 3:4:5
C. 4:5:6
D. 5:6:7

Correct Answer: A

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Question 3
A company's trial balance shows a debit balance of ₦10,000 in the account 'Salaries' and a credit balance of ₦15,000 in the account 'Salaries Payable'. What is the correct journal entry to record the adjustment for the difference?
Correct A. ₦5,000 debit to Salaries and ₦5,000 credit to Salaries Payable
B. ₦5,000 debit to Salaries Payable and ₦5,000 credit to Salaries
C. ₦5,000 debit to Salaries and ₦5,000 credit to Profit and Loss
D. ₦5,000 debit to Profit and Loss and ₦5,000 credit to Salaries

Correct Answer: A

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Question 4
A company uses the double-entry system of accounting. If the company's trial balance shows a debit balance of ₦20,000 in the account 'Rent Paid' and a credit balance of ₦25,000 in the account 'Rent Received', what is the correct journal entry to record the adjustment for the difference?
Correct A. ₦5,000 debit to Rent Paid and ₦5,000 credit to Rent Received
B. ₦5,000 debit to Rent Received and ₦5,000 credit to Rent Paid
C. ₦5,000 debit to Rent Paid and ₦5,000 credit to Profit and Loss
D. ₦5,000 debit to Profit and Loss and ₦5,000 credit to Rent Paid

Correct Answer: A

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Question 5
A company's trial balance shows a debit balance of ₦15,000 in the account 'Salaries' and a credit balance of ₦20,000 in the account 'Salaries Payable'. What is the correct journal entry to record the adjustment for the difference?
Correct A. ₦5,000 debit to Salaries and ₦5,000 credit to Salaries Payable
B. ₦5,000 debit to Salaries Payable and ₦5,000 credit to Salaries
C. ₦5,000 debit to Salaries and ₦5,000 credit to Profit and Loss
D. ₦5,000 debit to Profit and Loss and ₦5,000 credit to Salaries

Correct Answer: A

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Question 6
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 10,000. Calculate the amount of share capital.
A. ₦ 120,000
Correct B. ₦ 130,000
C. ₦ 140,000
D. ₦ 150,000

Correct Answer: B

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Question 7
A company purchased a machine for ₦ 50,000. The machine has a useful life of 5 years and a residual value of ₦ 5,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦ 9,000
B. ₦ 10,000
C. ₦ 11,000
D. ₦ 12,000

Correct Answer: A

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Question 8
A company's trial balance showed the following balances: Accounts Payable ₦ 20,000, Accounts Receivable ₦ 15,000, and Common Stock ₦ 100,000. Prepare a balance sheet.
A. ₦ 135,000
B. ₦ 140,000
Correct C. ₦ 145,000
D. ₦ 150,000

Correct Answer: C

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Question 9
A company issued 5,000 shares of ₦ 1 each at a premium of ₦ 2 per share. The issue expenses were ₦ 5,000. Calculate the amount of share capital.
A. ₦ 25,000
Correct B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000

Correct Answer: B

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Question 10
A company purchased a machine for ₦ 30,000. The machine has a useful life of 4 years and a residual value of ₦ 3,000. Calculate the annual depreciation using the straight-line method.
Correct A. ₦ 6,750
B. ₦ 7,000
C. ₦ 7,250
D. ₦ 7,500

Correct Answer: A

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Question 11
A company's cash book shows a credit balance of ₦150,000 in the cash account, but the bank statement shows a debit balance of ₦120,000. What is the correct balance in the cash account?
A. ₦30,000
Correct B. ₦120,000
C. ₦150,000
D. ₦180,000

Correct Answer: B

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Question 12
A trader's trial balance shows a credit balance of ₦50,000 in the accounts receivable account. However, the ledger accounts show a debit balance of ₦30,000. What is the correct balance in the accounts receivable account?
Correct A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: A

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Question 13
A company's balance sheet shows a current asset of ₦120,000 in the accounts payable account. However, the ledger accounts show a debit balance of ₦90,000. What is the correct balance in the accounts payable account?
A. ₦30,000
B. ₦60,000
Correct C. ₦90,000
D. ₦120,000

Correct Answer: C

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Question 14
A trader's balance sheet shows a non-current asset of ₦180,000 in the accounts payable account. However, the ledger accounts show a debit balance of ₦150,000. What is the correct balance in the accounts payable account?
A. ₦30,000
B. ₦60,000
C. ₦90,000
Correct D. ₦150,000

Correct Answer: D

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Question 15
A company's balance sheet shows a non-current liability of ₦240,000 in the accounts payable account. However, the ledger accounts show a debit balance of ₦200,000. What is the correct balance in the accounts payable account?
A. ₦40,000
B. ₦80,000
C. ₦120,000
Correct D. ₦200,000

Correct Answer: D

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Question 16
A company uses the process costing method to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of ₦120,000 and adds ₦150,000 of direct materials and ₦80,000 of direct labor during the period. The Assembly department has a beginning work-in-process inventory of ₦90,000 and adds ₦120,000 of direct materials and ₦60,000 of direct labor during the period. The total cost of goods manufactured by the Cutting department is ₦420,000, and the total cost of goods manufactured by the Assembly department is ₦360,000. What is the total cost of goods manufactured by the company?
A. ₦780,000
B. ₦780,000
C. ₦780,000
Correct D. ₦780,000

Correct Answer: D

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Question 17
A company uses the job costing method to account for its manufacturing costs. The company has a job that requires 10 units of a component that costs ₦50 per unit. The company also requires 5 units of another component that costs ₦75 per unit. The total cost of the job is ₦1,500. What is the cost per unit of the job?
A. ₦150
B. ₦150
C. ₦150
Correct D. ₦150

Correct Answer: D

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Question 18
A company uses the process costing method to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of ₦120,000 and adds ₦150,000 of direct materials and ₦80,000 of direct labor during the period. The Assembly department has a beginning work-in-process inventory of ₦90,000 and adds ₦120,000 of direct materials and ₦60,000 of direct labor during the period. What is the total cost of goods manufactured by the Cutting department?
A. ₦420,000
B. ₦420,000
C. ₦420,000
Correct D. ₦420,000

Correct Answer: D

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Question 19
A company uses the job costing method to account for its manufacturing costs. The company has a job that requires 10 units of a component that costs ₦50 per unit. The company also requires 5 units of another component that costs ₦75 per unit. What is the total cost of the job?
A. ₦1,500
B. ₦1,500
C. ₦1,500
Correct D. ₦1,500

Correct Answer: D

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Question 20
A company uses the process costing method to account for its manufacturing costs. The company has two departments: Cutting and Assembly. The Cutting department has a beginning work-in-process inventory of ₦120,000 and adds ₦150,000 of direct materials and ₦80,000 of direct labor during the period. The Assembly department has a beginning work-in-process inventory of ₦90,000 and adds ₦120,000 of direct materials and ₦60,000 of direct labor during the period. What is the total cost of goods manufactured by the company?
A. ₦780,000
B. ₦780,000
C. ₦780,000
Correct D. ₦780,000

Correct Answer: D

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Question 21
A company issued 5,000, 10% debentures of ₦100 each. Calculate the total amount received from debenture holders.
A. ₦500,000
Correct B. ₦1,000,000
C. ₦2,000,000
D. ₦5,000,000

Correct Answer: B

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Question 22
A partnership has two partners, A and B. A has a 3:5 ratio of profit sharing, while B has a 5:3 ratio. If the total profit is ₦120,000, how much will A receive?
A. ₦36,000
B. ₦40,000
Correct C. ₦42,000
D. ₦45,000

Correct Answer: C

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Question 23
A company's trading account for the year ended 31st December 2020 shows a profit of ₦150,000. The company's balance sheet as at 31st December 2019 showed a capital of ₦200,000. If the company issued 5,000, 10% debentures of ₦100 each, what is the amount of dividend paid to the debenture holders?
A. ₦5,000
B. ₦10,000
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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Question 24
A company's balance sheet as at 31st December 2020 shows a capital of ₦300,000. If the company issued 5,000, 10% debentures of ₦100 each, what is the amount of dividend paid to the debenture holders?
A. ₦5,000
B. ₦10,000
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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Question 25
A company's trading account for the year ended 31st December 2020 shows a profit of ₦200,000. The company's balance sheet as at 31st December 2019 showed a capital of ₦250,000. If the company issued 5,000, 10% debentures of ₦100 each, what is the amount of dividend paid to the debenture holders?
A. ₦5,000
B. ₦10,000
Correct C. ₦15,000
D. ₦20,000

Correct Answer: C

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