POST UTME WELLSPRING UNIVERSITY 2025 Accounting | Objective

Are you preparing for POST UTME WELLSPRING UNIVERSITY exams? Reviewing past questions is one of the most effective ways to guarantee a high score. This practice hub features authentic 2025 Accounting (Objective) questions designed to simulate the real exam environment.

Practice these randomly selected questions to test your readiness.

Question 1
A company issued 10,000 shares of £ 1 each at a premium of £ 0.50 per share. Calculate the total amount received from the issue of shares.
A. ₦50,000
Correct B. ₦55,000
C. ₦60,000
D. ₦65,000

Correct Answer: B

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Question 2
A manufacturing company uses a job costing system. The following data are available for the month of January: | Job No. | Cost of Materials | Direct Labour | Total Cost | | --- | --- | --- | --- | | 101 | ₦ 10,000 | ₦ 8,000 | ₦ 18,000 | | 102 | ₦ 15,000 | ₦ 12,000 | ₦ 27,000 | | 103 | ₦ 20,000 | ₦ 16,000 | ₦ 36,000 | Calculate the total cost of production for the month of January.
A. ₦81,000
B. ₦81,500
Correct C. ₦82,000
D. ₦82,500

Correct Answer: C

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Question 3
A company's cash book shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | ₦ 10,000 | | | 1/2 | Sales | | ₦ 15,000 | | 1/3 | Purchases | ₦ 8,000 | | | 1/4 | Cash | | ₦ 12,000 | Prepare the cash book for the month of January.
A. ₦22,000
Correct B. ₦25,000
C. ₦28,000
D. ₦31,000

Correct Answer: B

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Question 4
A government agency has the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | ₦ 50,000 | | | 1/2 | Expenses | | ₦ 30,000 | | 1/3 | Cash | | ₦ 20,000 | | 1/4 | Expenses | ₦ 10,000 | | Prepare the government agency's ledger accounts for the month of January.
A. ₦80,000
B. ₦85,000
Correct C. ₦90,000
D. ₦95,000

Correct Answer: C

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Question 5
A company's bank statement shows the following transactions: | Date | Particulars | Debit | Credit | | --- | --- | --- | --- | | 1/1 | Cash | ₦ 10,000 | | | 1/2 | Sales | | ₦ 15,000 | | 1/3 | Purchases | ₦ 8,000 | | | 1/4 | Cash | | ₦ 12,000 | Prepare the bank reconciliation statement for the month of January.
A. ₦22,000
Correct B. ₦25,000
C. ₦28,000
D. ₦31,000

Correct Answer: B

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Question 6
A company uses the percentage of completion method to account for construction contracts. The contract is 40% complete at the end of the first year. If the total contract price is ₦100,000,000 and the cost incurred during the year is ₦40,000,000, what is the amount of profit recognized in the first year?
A. ₦16,000,000
B. ₦20,000,000
Correct C. ₦24,000,000
D. ₦28,000,000

Correct Answer: C

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Question 7
A partnership has two partners, A and B. The capital accounts of A and B are ₦100,000 and ₦150,000 respectively. The profit for the year is ₦50,000. If A's share of the profit is 60%, what is the amount of A's share of the profit?
Correct A. ₦30,000
B. ₦35,000
C. ₦40,000
D. ₦45,000

Correct Answer: A

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Question 8
A company has a cash book account with a balance of ₦50,000. The company receives a cash deposit of ₦20,000 and pays a bill of ₦15,000. What is the new balance in the cash book account?
A. ₦55,000
Correct B. ₦60,000
C. ₦65,000
D. ₦70,000

Correct Answer: B

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Question 9
A company has a bank account with a balance of ₦100,000. The company receives a deposit of ₦20,000 and pays a bill of ₦15,000. What is the new balance in the bank account?
A. ₦105,000
Correct B. ₦110,000
C. ₦115,000
D. ₦120,000

Correct Answer: B

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Question 10
A company has a manufacturing account with a cost of goods sold of ₦500,000 and a selling price of ₦750,000. What is the profit from the manufacturing account?
A. ₦250,000
B. ₦300,000
Correct C. ₦350,000
D. ₦400,000

Correct Answer: C

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Question 11
A company issued 10,000 shares of ₦10 each at a premium of ₦5 per share. Calculate the total amount received from the issue of shares.
A. ₦100,000
Correct B. ₦150,000
C. ₦200,000
D. ₦250,000

Correct Answer: B

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Question 12
A trial balance is prepared for a company at the end of the year. The debit balance in the 'Rent and Rates' account is ₦12,000. The credit balance in the 'Salaries' account is ₦15,000. What is the total of the debit balances?
Correct A. ₦27,000
B. ₦30,000
C. ₦32,000
D. ₦35,000

Correct Answer: A

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Question 13
A company issued 5,000 debentures of ₦100 each at a discount of 5%. Calculate the total amount received from the issue of debentures.
A. ₦475,000
Correct B. ₦480,000
C. ₦485,000
D. ₦490,000

Correct Answer: B

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Question 14
A company's trial balance shows a debit balance in the 'Purchases' account of ₦80,000 and a credit balance in the 'Sales' account of ₦100,000. What is the net profit for the year?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 15
A company's balance sheet shows a current asset of ₦50,000 and a non-current liability of ₦30,000. What is the net working capital?
A. ₦20,000
Correct B. ₦30,000
C. ₦40,000
D. ₦50,000

Correct Answer: B

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Question 16
A company uses the straight-line method to depreciate its assets. If the asset's useful life is 5 years and its residual value is ₦0, what is the annual depreciation charge if the asset's cost is ₦120,000?
Correct A. ₦24,000
B. ₦20,000
C. ₦25,000
D. ₦30,000

Correct Answer: A

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Question 17
A partnership has two partners, A and B, who share profits and losses in the ratio 3:2. If the total profit for the year is ₦150,000, how much will A receive as his share of the profit?
Correct A. ₦90,000
B. ₦80,000
C. ₦100,000
D. ₦120,000

Correct Answer: A

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Question 18
A company's balance sheet shows an increase in its current liabilities from ₦50,000 to ₦70,000. What is the accounting equation implication of this increase?
A. Increase in assets
B. Decrease in equity
Correct C. Increase in equity
D. Decrease in assets

Correct Answer: C

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Question 19
A public sector organization uses the accrual basis of accounting. If it incurs an expense of ₦100,000 in December but does not pay for it until January, what is the accounting treatment for this expense?
A. Debit expense and credit cash
B. Debit cash and credit expense
Correct C. Debit expense and credit accounts payable
D. Debit accounts payable and credit expense

Correct Answer: C

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Question 20
A company's journal entry for the purchase of an asset on credit is as follows: Debit asset ₦120,000 and credit accounts payable ₦120,000. What is the accounting equation implication of this transaction?
A. Increase in assets and decrease in equity
B. Increase in equity and decrease in assets
Correct C. Increase in assets and increase in equity
D. Decrease in assets and decrease in equity

Correct Answer: C

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Question 21
A company uses the single-entry system of accounting. The company's assets, liabilities, and equity at the beginning of the year are as follows: Assets: ₦1,500,000 Liabilities: ₦800,000 Equity: ₦700,000 During the year, the company purchased equipment for ₦300,000 and sold goods worth ₦200,000. The company also declared a dividend of ₦100,000. Prepare the company's statement of financial position at the end of the year.
A. ₦2,100,000
Correct B. ₦2,200,000
C. ₦2,300,000
D. ₦2,400,000

Correct Answer: B

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Question 22
A company has the following information regarding its manufacturing department: Direct Materials: ₦1,200,000 Direct Labor: ₦900,000 Manufacturing Overhead: ₦600,000 What is the total cost of production for the department?
A. ₦2,700,000
B. ₦2,800,000
Correct C. ₦2,900,000
D. ₦3,000,000

Correct Answer: C

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Question 23
A company issues 10,000 shares of ₦5 each at a premium of ₦2 per share. If the company receives ₦50,000 in cash and issues 2,000 shares to the promoter at ₦10 per share, what is the total amount received from the issue of shares?
A. ₦120,000
B. ₦130,000
Correct C. ₦140,000
D. ₦150,000

Correct Answer: C

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Question 24
A company purchases a machine for ₦1,500,000 and depreciates it using the straight-line method over a period of 5 years. If the machine is expected to have a residual value of ₦200,000 at the end of the 5-year period, what is the annual depreciation charge?
A. ₦250,000
Correct B. ₦270,000
C. ₦290,000
D. ₦310,000

Correct Answer: B

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Question 25
A company issues 5,000 debentures of ₦1,000 each at a discount of 5%. If the company receives ₦4,500,000 in cash and issues 1,000 debentures to the promoter at ₦1,050 each, what is the total amount received from the issue of debentures?
A. ₦4,750,000
B. ₦4,850,000
Correct C. ₦4,950,000
D. ₦5,050,000

Correct Answer: C

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