Accounting past questions: JAMB UTME 2021

38 objective questions, with answers. Free to read and practise.

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38 questions, one at a time, marked as you go or at the end. No account needed.

1.
A source document is used for verifying the
1. A.amount due from debtors
2. B.amount due to creditors
3. C.selling price of goods
4. D.actual cost of an asset
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Answer: C selling price of goods
2.
Capital and revenue expenditures of government are usually accounted for under funds which include
1. A.technical, special trust and commercial funds
2. B.personal advances, technical and public funds
3. C.personal advances, treasury clearance and special trust funds
4. D.commercial loans and treasury clearance funds
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Answer: B personal advances, technical and public funds
3.
Forlah, a stock broker bought stationery for ₦12,000 by cash. To record this transaction, debit
1. A.cash and credit stationery
2. B.purchases and credit stationery
3. C.stationery and credit purchases
4. D.stationery and credit cash
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Answer: D stationery and credit cash

Given:

Depreciation of plant and machinery Factory rent Indirect wages General indirect expenses Lubricants Carriage inwards Factory power Bank charges Carriage outwards

₦ 1,600 650 695 726 1,235 829 350 612 2,900

Determine the total factory overhead cost

A.₦4,485
B.₦6,085
C.₦6,556
D.₦5,256

Show answer

Answer: D ₦5,256

5.
Given: ₦ Bank overdraft 2,000 Cash 2,000 Furniture 4,000 Derive the total amount on the credit side of the trial balance
1. A.₦4000
2. B.₦6000
3. C.₦2000
4. D.₦8000
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Answer: C ₦2000
6.
Given: ₦ Total debtors b/d 31/12/99 25,000 Cheques received from debtors 255,000 Total debtors c/d 31/12/00 15,000 Calculate the sales figure
1. A.₦245,000
2. B.₦215,000
3. C.₦295,000
4. D.₦265,000
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Answer: A ₦245,000
7.
Given: i. The memorandum of association of the company ii. The article of association of the company iii. The incorporation documents. From the above, which of the following is delivered to the registrar of companies for incorporation?
1. A.i, ii and iii
2. B.i and ii
3. C.i and iii
4. D.ii and iii
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Answer: A i, ii and iii
8.
Given: Lankoh Company Ltd ₦ Stock 3,600,000 Cash at hand 800,000 Cash in bank 2,400,000 Debtors 580,000 Trade creditors 920,000 Bank overdraft 200,000 Tax liabilities 600,000 Salary owed to staff 180,000 What is the working capital?
1. A.₦5,480,000
2. B.₦6,480,000
3. C.₦8,480,000
4. D.₦7,380,000
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Answer: A ₦5,480,000
9.
If a company values its stock in the period of rising prices using LIFO method, there is a tendency for it to
1. A.have a higher cost of goods sold
2. B.have a higher value of closing stock
3. C.have a higher gross profit
4. D.pay higher income tax
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Answer: C have a higher gross profit
10.
If goods are sent to branch at 25% on cost, what will be the cost of goods sent to the branch at a selling price of ₦100,000?
1. A.₦130,000
2. B.₦75,000
3. C.₦80,000
4. D.₦125,000
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Answer: B ₦75,000
11.
In a departmental accounting system, which of the following expenses will most likely be apportioned on the basis of turnover
1. A.carriage inwards
2. B.carriage outwards
3. C.discount received
4. D.returns outwards
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Answer: B carriage outwards
12.
Recurrent expenditures are expenses for the period not exceeding
1. A.10years
2. B.2years
3. C.5years
4. D.1year
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Answer: D 1year
13.
Sales ledger control account contains the total amount in respect of
1. A.investors
2. B.creditors
3. C.shareholders
4. D.debtors
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Answer: D debtors
14.
Stationery which will be used over a long period of time is usually recorded as an expense instead of an asset. This concept is called
1. A.entity
2. B.accrual
3. C.realization
4. D.materiality
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Answer: D materiality
15.
The accounting method that reports incomes when earned and expenses when incurred is called
1. A.accrual accounting
2. B.cash accounting
3. C.fund accounting
4. D.commitment accounting
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Answer: A accrual accounting
16.
The corresponding entry of personal accounts found in the debit side of the cashbook is to
1. A.credit real accounts
2. B.credit the ledger
3. C.debit real accounts
4. D.debit the ledger
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Answer: B credit the ledger
17.
The excess of income over expenditure is usually transferred to the
1. A.current assets in the balance sheet
2. B.profit and loss account
3. C.accumulated fund
4. D.current liabilities in the balance sheet
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Answer: C accumulated fund
18.
The formular for calculating depreciation using straight line method is
1. A.Cost-scrap value/useful life
2. B.Scrap value+sales/useful life
3. C.Sales-scrap value/useful life
4. D.Purshases+sales/useful life
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Answer: A Cost-scrap value/useful life
19.
The interest on partner's loan is
1. A.credited in current account
2. B.debited in profit and loss account
3. C.credited in profit and loss account
4. D.debited in current account
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Answer: B debited in profit and loss account
20.
The issued share capital is the number of shares that are
1. A.shared among the directors
2. B.authorised by the shareholders
3. C.fully subscribed
4. D.in the share certificate
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Answer: B authorised by the shareholders
21.
The major objectives of departmental account is to ascertain the
1. A.materials sold in each department
2. B.insurance premium payable on employees
3. C.number of employees in each department
4. D.contribution of each department to profit
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Answer: D contribution of each department to profit
22.
The ordinary shareholders enjoy the following right except the right to
1. A.receive dividends at a predetermined rate
2. B.vote at annual general meetings
3. C.elect the board of directors
4. D.participate in additional issues of shares
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Answer: A receive dividends at a predetermined rate
23.
The prime cost is the total of the
1. A.direct materials+direct labour+direct wages
2. B.production cost+selling expenses
3. C.administrative expenses+selling expenses+distribution expenses
4. D.direct materials+work overhead expenses
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Answer: A direct materials+direct labour+direct wages
24.
The principle of double entry system ensures
1. A.balances at the bank
2. B.increase in the assets and liabilities
3. C.balance of cashbook
4. D.mathematical accuracy in trial balance
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Answer: D mathematical accuracy in trial balance
25.
The purchase consideration that is lower than the net asset implies that, the buyer has gained the advantage of
1. A.capital reserve
2. B.net loss
3. C.revenue reserve
4. D.net income
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Answer: A capital reserve
26.
The two legally recognized professional accounting bodies in Nigeria are the
1. A.Nigerian Accounting Association and the Executive Cost and Management Accountants of Nigeria
2. B.Institute of Certified Public Accountants of Nigeria and the Institute of Cost and Management Accountants
3. C.Institute of Chartered Accountants of Nigeria and the Association of National Accountants of Nigeria
4. D.Association of Accountants of Nigeria and the Institute of Management Accountants of Nigeria
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Answer: C Institute of Chartered Accountants of Nigeria and the Association of National Accountants of Nigeria

27.

Use the information below to answer the question

Gross profit b/d Less: Salaries and wages Electricity Depreciation Net profit c/d

Dept A ₦ 6,000 1,800 ? 600 ? 6,000

Dept B ₦ 4,000 1,200 ? ? 1,600 4,000

Total ₦ 10,000 3,000 2,000 1,000 4,000 10,000

It is the tradition of the organization to apportion expenses in the proportion 60%:40% for A and B respectively. The depreciation to be charged to department B is

A.₦500
B.₦300
C.₦400
D.₦600

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Answer: C ₦400

28.

Use the information below to answer the question

Gross profit b/d Less: Salaries and wages Electricity Depreciation Net profit c/d

Dept A ₦ 6,000 1,800 ? 600 ? 6,000

Dept B ₦ 4,000 1,200 ? ? 1,600 4,000

Total ₦ 10,000 3,000 2,000 1,000 4,000 10,000

It is the tradition of the organization to apportion expenses in the proportion 60%:40% for A and B respectively. What is the net profit made by department A?

A.₦2000
B.₦3600
C.₦3000
D.₦2400

Show answer

Answer: D ₦2400

29.
Use the information below to answer this question A company advertised and issued 750,000, 12% preference shares of N1 each to be issued ₦1.50 per share. Applications for 1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received. Application money for 120,000 shares was refunded to unsuccessful applicants and the remaining applicants were allotted shares on prorata basis. The second final call account was debited with
1. A.ordinary share capital account ₦187,500
2. B.12% preference share capital account ₦187,500
3. C.12% preference share capital ₦375,000
4. D.bank account ₦187,500
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Answer: B 12% preference share capital account ₦187,500
30.
Use the information below to answer this question A company advertised and issued 750,000, 12% preference shares of N1 each to be issued ₦1.50 per share. Applications for 1,370,000 were received at 30k per share. 70k per share (including premium) was due on allotment while 25k per share was due on each of the remaining two calls. All amounts due were received. Application money for 120,000 shares was refunded to unsuccessful applicants and the remaining applicants were allotted shares on prorata basis. The share premium account would be
1. A.credited with application and allotment ₦187,500
2. B.debited with application and allotment ₦375,000
3. C.debited with application and allotment ₦187,500
4. D.credited with application and allotment ₦375,000
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Answer: D credited with application and allotment ₦375,000
31.
Use the information below to answer this question At the end of a financial period, the trading profit and loss account of a sole trader shows a profit of ₦180,000 it is however discovered that revenue of ₦15,000 is recorded as expenses while expenses of ₦4,000 is recorded as revenue. Determine the adjusted net profit
1. A.₦202,000
2. B.₦210,000
3. C.₦195,000
4. D.₦184,000
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Answer: A ₦202,000
32.
Use the information below to answer this question At the end of a financial period, the trading profit and loss account of a sole trader shows a profit of ₦180,000 it is however discovered that revenue of ₦15,000 is recorded as expenses while expenses of ₦4,000 is recorded as revenue. The revenue to be added as an adjustment is
1. A.₦34,000
2. B.₦4,000
3. C.₦30,000
4. D.₦15,000
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Answer: C ₦30,000
33.
Use the information below to answer this question Zahki Plc balance sheet (extract) as at 31st December 1997. ₦ ₦ Paid up capital 200,000 Fixed assets 300,000 Share premium 15,000 Profit and loss account 60,000 Investment 180,000 Long-term loan 180,000 Stock 28,000 Debtors 90,000 Creditors 200,000 provision(3000) 87,000 Other current liabilities 100,000 Cash 60,000 Bank 100,000 755,000 755,000 Determine the owner's equity
1. A.₦275,000
2. B.₦200,000
3. C.₦755,000
4. D.₦215,000
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Answer: B ₦200,000
34.
Use the information below to answer this question Zahki Plc balance sheet (extract) as at 31st December 1997. ₦ ₦ Paid up capital 200,000 Fixed assets 300,000 Share premium 15,000 Profit and loss account 60,000 Investment 180,000 Long-term loan 180,000 Stock 28,000 Debtors 90,000 Creditors 200,000 provision(3000) 87,000 Other current liabilities 100,000 Cash 60,000 Bank 100,000 755,000 755,000 The quick ratio is
1. A.0.82:1
2. B.1:53:1
3. C.0.95:1
4. D.0.91:1
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Answer: C 0.95:1
35.
Use the information below to answer this question: i. cash at bank ii. cash in hand iii. premises iv. land v. creditors vi. loan from friends/bank Determine the fixed assets
1. A.iii and iv
2. B.i and v
3. C.ii and iv
4. D.ii and vi
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Answer: A iii and iv
36.
Use the information below to answer this question: i. cash at bank ii. cash in hand iii. premises iv. land v. creditors vi. loan from friends/bank What are the current assets?
1. A.i and v
2. B.i and ii
3. C.ii and iv
4. D.iii and v
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Answer: B i and ii
37.
Which of the following is a debit item in the purchase ledger control account?
1. A.balance b/d
2. B.cheque dishonoured
3. C.balance c/d
4. D.purchases
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Answer: C balance c/d
38.
Which of the following stock valuation method is suitable under inflationary conditions?
1. A.LIFO
2. B.simple average
3. C.FIFO
4. D.weighted average
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Answer: C FIFO

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