POST UTME WELLSPRING UNIVERSITY 2024 Accounting | Objective

Practice these randomly selected questions to test your readiness.

Question 1
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Cash | 500 | | | 3rd Jan | Bank | | 1,500 | What is the balance in the cash account?
A. ₦1,500
B. ₦2,000
C. ₦2,500
D. ₦3,000
Question 2
A company's trial balance shows the following accounts: Sales ₦800,000, Cost of Goods Sold ₦500,000, and Profit ₦300,000. The company's balance sheet shows the following accounts: Cash ₦200,000, Accounts Payable ₦100,000, and Common Stock ₦400,000. Calculate the company's net income.
A. ₦300,000
B. ₦350,000
C. ₦400,000
D. ₦450,000
Question 3
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1st Jan | Cash | 1,000 | | | 2nd Jan | Bank | | 500 | | 3rd Jan | Cash | | 1,500 | What is the balance in the bank account?
A. ₦1,500
B. ₦2,000
C. ₦2,500
D. ₦3,000
Question 4
In a single entry system, a business records a transaction by debiting the cash account and crediting the sales account. What is the effect of this transaction on the accounting equation?
A. Increases assets and equity
B. Decreases assets and equity
C. Increases assets but decreases equity
D. Decreases assets but increases equity
Question 5
A company's balance sheet as at 31st December 2022 is as follows: | Assets | | | | | | --- | --- | --- | --- | --- | | Cash | | | | | | Debtors | | | | | | Stock | | | | | | Total Assets | | | | | | Liabilities | | | | | | Creditors | | | | | | Capital | | | | | | Total Liabilities | | | | | What is the value of the company's capital?
A. ₦100,000
B. ₦150,000
C. ₦200,000
D. ₦250,000
Question 6
A company uses the double-entry system to record a transaction. The journal entry is as follows: Debit Cash ₦10,000, Credit Accounts Payable ₦10,000. What is the effect of this transaction on the accounting equation?
A. Increases assets and equity
B. Decreases assets and equity
C. Increases assets but decreases equity
D. Decreases assets but increases equity
Question 7
A company's trial balance shows the following accounts: Sales ₦500,000, Cost of Goods Sold ₦300,000, and Profit ₦200,000. The company's balance sheet shows the following accounts: Cash ₦100,000, Accounts Payable ₦50,000, and Common Stock ₦200,000. Calculate the company's net income.
A. ₦200,000
B. ₦250,000
C. ₦300,000
D. ₦350,000
Question 8
A company issued 5,000, 10% debentures of ₦100 each. The debentures are redeemable at a premium of 10% after 5 years. Calculate the amount of premium payable on redemption.
A. ₦500,000
B. ₦1,000,000
C. ₦1,500,000
D. ₦2,000,000
Question 9
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦20,000 in rent for the year. What is the correct journal entry to correct this error?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
B. Debit Rent Expense ₦15,000, Credit Cash ₦20,000
C. Debit Rent Expense ₦20,000, Credit Cash ₦15,000
D. Debit Rent Expense ₦5,000, Credit Cash ₦15,000
Question 10
A company's trial balance shows a debit balance of ₦15,000 in the 'Rent Expense' account. However, the company's accounting records show that it has paid ₦20,000 in rent for the year. What is the correct journal entry to correct this error?
A. Debit Rent Expense ₦5,000, Credit Cash ₦5,000
B. Debit Rent Expense ₦15,000, Credit Cash ₦20,000
C. Debit Rent Expense ₦20,000, Credit Cash ₦15,000
D. Debit Rent Expense ₦5,000, Credit Cash ₦15,000
Question 11
A company's trial balance shows a credit balance of ₦10,000 in the 'Salaries Expense' account. However, the company's accounting records show that it has paid ₦15,000 in salaries for the year. What is the correct journal entry to correct this error?
A. Credit Salaries Expense ₦5,000, Debit Cash ₦5,000
B. Credit Salaries Expense ₦10,000, Debit Cash ₦15,000
C. Credit Salaries Expense ₦15,000, Debit Cash ₦10,000
D. Credit Salaries Expense ₦5,000, Debit Cash ₦10,000
Question 12
A company issues 1,000 shares of 10 par value at a premium of 5 per share. What is the total amount received from the sale of these shares?
A. ₦1,000,000
B. ₦1,500,000
C. ₦2,000,000
D. ₦2,500,000
Question 13
A company's balance sheet shows the following accounts: Cash ₦150,000, Accounts Payable ₦75,000, and Common Stock ₦250,000. The company's income statement shows the following accounts: Sales ₦600,000, Cost of Goods Sold ₦400,000, and Net Income ₦150,000. Calculate the company's total assets.
A. ₦525,000
B. ₦575,000
C. ₦625,000
D. ₦675,000
Question 14
A company's balance sheet shows the following balances: | Asset | Liability | Equity | | --- | --- | --- | | Cash | ₦50,000 | | | Bank | | ₦30,000 | | Stock | ₦20,000 | | | Debtors | | ₦10,000 | What is the total of the equity?
A. ₦50,000
B. ₦30,000
C. ₦20,000
D. ₦10,000
Question 15
A company uses the straight-line method of depreciation for its assets. If the asset's cost is ₦100,000 and its residual value is ₦20,000, what is the annual depreciation charge if the asset is expected to last for 5 years?
A. ₦15,000
B. ₦16,667
C. ₦20,000
D. ₦25,000

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