SSC CGL Finance – Double Entry, Books of Original Entry & Journal – Level 1 · Warm-up

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SSC CGL Finance – Double Entry, Books of Original Entry & Journal – Level 1 · Warm-up – 12 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.  
The debit side of an account is its:

Correct Answer: D [Left-hand side]

Explanation:

Debit = left side, credit = right side of a ledger account.

2.  
Rent Account is a:

Correct Answer: C [Nominal account]

Explanation:

Rent is an expense – nominal account.

3.  
Goodwill Account is a:

Correct Answer: B [Intangible real account]

Explanation:

Goodwill is an asset that cannot be touched – intangible real.

4.  
The golden rule for real accounts is:

Correct Answer: A [Debit what comes in, credit what goes out]

Explanation:

Real – in/out; personal – receiver/giver; nominal – expenses/incomes.

5.  
Under the modern approach, an increase in a liability is recorded on the:

Correct Answer: C [Credit side]

Explanation:

LCR – liabilities, capital, revenue increase on the credit side.

6.  
Under the traditional classification, a bank account is a:

Correct Answer: D [Personal account (artificial person)]

Explanation:

A bank is a legal (artificial) person.

7.  
Prepaid insurance is a:

Correct Answer: B [Representative personal account]

Explanation:

It represents the insurer who owes us the unexpired service.

8.  
Credit purchases of goods are first recorded in the:

Correct Answer: A [Purchases Book]

Explanation:

Purchases Book – credit purchases of goods only.

9.  
The owner withdraws ₹ 5,000 cash for personal use. The account debited is:

Correct Answer: D [Drawings Account]

Explanation:

Answer: Drawings Account. Drawings Dr, To Cash.

10.  
Fill in the blankThe book in which a transaction is first recorded is called a book of ______ entry.

Correct Answer: C [original]

Explanation:

Journal and subsidiary books are books of original (prime) entry.

11.  
Which discount is never entered in the journal?

Correct Answer: A [Trade discount]

Explanation:

Trade discount is deducted on the invoice itself.

12.  
Luca Pacioli's book describing double entry book-keeping was printed in:

Correct Answer: B [1494]

Explanation:

Answer: 1494. Printed in Venice in 1494.

➤ 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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