SSC CGL Finance – Accounting: Meaning, Scope, Limitations & Basic Concepts – Level 3 · Challenge

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SSC CGL Finance – Accounting: Meaning, Scope, Limitations & Basic Concepts – Level 3 · Challenge – 8 questions, subject: Finance & Economics (Tier II Paper III). Every question has the correct answer with a one-line explanation; tap "Show Answer". Free practice for TNPSC, UPSC, SSC, Bank and RRB exams – Shanmugam IAS Academy, Coimbatore.

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1.  
Spot My Mistake“Credit purchases = Paid ₹ 1,60,000 + Opening creditors ₹ 30,000 − Closing creditors ₹ 50,000 = ₹ 1,40,000.” The correct credit purchases are:

Correct Answer: A [₹ 1,80,000]

Explanation:

Add closing creditors and subtract opening: 1,60,000 + 50,000 − 30,000 = 1,80,000.

2.  
A trader starts with cash ₹ 3,00,000, buys goods on credit ₹ 90,000, sells goods costing ₹ 50,000 for ₹ 70,000 on credit, pays creditors ₹ 40,000 and withdraws ₹ 12,000 cash. His total assets now are:

Correct Answer: C [₹ 3,58,000]

Explanation:

Cash 2,48,000 + stock 40,000 + debtors 70,000 = 3,58,000 = creditors 50,000 + capital 3,08,000.

3.  
Opening capital ₹ 5,00,000; closing capital ₹ 5,45,000; cash drawings ₹ 30,000; goods withdrawn for personal use (cost) ₹ 8,000; fresh capital ₹ 25,000. The profit is:

Correct Answer: C [₹ 58,000]

Explanation:

Drawings = 38,000 → 5,45,000 − 5,00,000 + 38,000 − 25,000 = 58,000.

4.  
Statement-based
I. Under the accrual basis, rent received in advance is income of the year in which it is received.
II. Companies in India must keep their books on the accrual basis.

Correct Answer: A [Only II]

Explanation:

Advance rent is income of the year it is earned; s.

5.  
Fees received in cash during the year ₹ 4,80,000, which includes ₹ 30,000 received in advance for next year. Fees outstanding: ₹ 15,000 at the start and ₹ 25,000 at the end. Fee income of the year is:

Correct Answer: D [₹ 4,60,000]

Explanation:

4,80,000 + 25,000 − 15,000 − 30,000 = 4,60,000.

6.  
Opening debtors ₹ 72,000; cash received from debtors ₹ 5,40,000; discount allowed ₹ 6,000; bad debts ₹ 4,000; closing debtors ₹ 88,000. Credit sales are:

Correct Answer: B [₹ 5,66,000]

Explanation:

Credit sales = 5,40,000 + 6,000 + 4,000 + 88,000 − 72,000 = 5,66,000.

7.  
Assertion–Reason
A: The accounting equation always balances.
R: Every transaction has two aspects of equal amount.

Correct Answer: D [Both A and R are true and R explains A]

Explanation:

Because both aspects are equal, A = L + C holds after every transaction.

8.  
Data tableyear-end figures (₹): Assets – 2023: 6,00,000; 2024: 7,20,000; 2025: 7,50,000. Liabilities – 2023: 1,50,000; 2024: 2,10,000; 2025: 1,60,000. There were no drawings and no fresh capital. Profit for 2025 is:

Correct Answer: C [₹ 80,000]

Explanation:

Capital 2024 = 5,10,000; capital 2025 = 5,90,000 → profit 80,000.

➤ Full notes, shortcuts and every answer explained – SSC CGL 2026 Finance & Economics (Tier II Paper III) book (₹149): www.shanmugamiasacademy.in/study-materials/ssc-cgl-finance-economics

📘 SSC CGL 2026 – General Studies – Finance & Economics (Tier II Paper III)
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