POST UTME WELLSPRING UNIVERSITY 2021 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of ₦ 1 each at a premium of ₦ 2.50 per share. The company also issued 5,000 ₦ 100 debentures at 5% interest. Calculate the total amount received from the issue of shares and debentures.
A. ₦ 25,000
B. ₦ 30,000
C. ₦ 35,000
D. ₦ 40,000
Question 2
A company's cash book shows a balance of ₦100,000. However, the bank statement shows a balance of ₦120,000. What is the likely reason for the discrepancy?
A. The company has not yet deposited the cash into the bank.
B. The company has not yet withdrawn the cash from the bank.
C. The bank has charged the company a service fee.
D. The company has made an error in its cash book.
Question 3
A company's balance sheet as at 31st December 2020 shows a total equity of ₦ 500,000. The company also has a total liability of ₦ 300,000. What is the total assets of the company?
A. ₦ 800,000
B. ₦ 900,000
C. ₦ 1,000,000
D. ₦ 1,100,000
Question 4
A company uses the straight-line method of depreciation. The cost of the asset is ₦ 50,000 and its residual value is ₦ 10,000. If the asset is depreciated over 5 years, what is the annual depreciation?
A. ₦ 8,000
B. ₦ 10,000
C. ₦ 12,000
D. ₦ 15,000
Question 5
A company uses the double-entry system to record transactions. If the company purchases office supplies for ₦10,000, what is the effect on the accounting equation?
A. Assets increase, Liabilities increase
B. Assets increase, Liabilities decrease
C. Assets decrease, Liabilities increase
D. Assets decrease, Liabilities decrease
Question 6
A company has the following transactions: a sale of goods for ₦50,000, a purchase of goods for ₦30,000, and a payment of ₦20,000 to a creditor. Prepare the necessary journal entries.
A. Debit Sales Account ₦50,000, Credit Purchases Account ₦30,000
B. Debit Purchases Account ₦30,000, Credit Sales Account ₦50,000
C. Debit Creditor Account ₦20,000, Credit Cash Account ₦20,000
D. Debit Sales Account ₦50,000, Credit Creditor Account ₦20,000
Question 7
A company uses the cash basis of accounting. On December 31, 2022, it had the following accounts:
A. ₦30,000
B. ₦40,000
C. ₦50,000
D. ₦60,000
Question 8
A partnership has two partners, A and B. The capital accounts of A and B are ₦ 10,000 and ₦ 8,000 respectively. The profit for the year is ₦ 12,000. If A's share of profit is ₦ 6,000, calculate B's share of profit.
A. ₦ 3,000
B. ₦ 4,000
C. ₦ 5,000
D. ₦ 6,000
Question 9
A partnership has two partners, A and B. Partner A invests ₦100,000, and Partner B invests ₦50,000. What is the ratio of their investments?
A. 1:1
B. 2:1
C. 3:1
D. 4:1
Question 10
A company's trial balance shows a debit balance in the suspense account of ₦15,000. The company's accountant has identified the following transactions that have not been recorded: a sale of goods for ₦20,000, a purchase of goods for ₦30,000, and a payment of ₦10,000 to a creditor. Prepare the necessary journal entries to correct the suspense account.
A. Debit Suspense Account ₦15,000, Credit Sales Account ₦20,000
B. Debit Purchases Account ₦30,000, Credit Suspense Account ₦30,000
C. Debit Suspense Account ₦15,000, Credit Creditor Account ₦10,000
D. Debit Sales Account ₦20,000, Credit Suspense Account ₦20,000
Question 11
A company's trading account shows a profit of ₦100,000. However, the profit and loss account shows a loss of ₦50,000. What is the likely reason for the discrepancy?
A. The company has made an error in its trading account.
B. The company has made an error in its profit and loss account.
C. The company has not yet recorded the profit in the trading account.
D. The company has not yet recorded the loss in the profit and loss account.
Question 12
A company has the following assets: a building worth ₦50,000,000, a machine worth ₦20,000,000, and a vehicle worth ₦10,000,000. The company uses the straight-line method of depreciation. Calculate the accumulated depreciation after 5 years.
A. Building: ₦2,500,000, Machine: ₦100,000, Vehicle: ₦500,000
B. Building: ₦2,000,000, Machine: ₦50,000, Vehicle: ₦250,000
C. Building: ₦3,000,000, Machine: ₦200,000, Vehicle: ₦1,000,000
D. Building: ₦2,500,000, Machine: ₦100,000, Vehicle: ₦500,000
Question 13
A company uses the perpetual inventory system. On January 1, 2022, it had 500 units of a product on hand at a cost of ₦150 per unit. During the year, 300 units were sold, and 200 units were purchased at ₦180 per unit. Calculate the cost of goods sold for the year.
A. ₦45,000
B. ₦50,000
C. ₦55,000
D. ₦60,000
Question 14
A company has the following transactions related to its liabilities:
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 15
A company has the following transactions related to its assets:
A. ₦10,000
B. ₦20,000
C. ₦30,000
D. ₦40,000

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