SSC CGL Finance – Double Entry, Books of Original Entry & Journal – Level 2 · Exam Level · Paper III Sprint
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QI = 60,000 × 0.9 × 0.95 = 51,300; QII = 57,000 × 0.9 = 51,300.
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SSC CGL Finance – Double Entry, Books of Original Entry & Journal – Level 2 · Exam Level · Paper III Sprint – 15 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.
Goods are distributed as free samples. The journal entry is:
Correct Answer: B [Advertisement A/c Dr, To Purchases A/c]
Explanation:
Goods-Out Rule: credit Purchases at cost; debit the reason (advertisement).
2.
Goods with a list price of ₹ 50,000 are bought at 20% trade discount and 5% cash discount for immediate payment. The cash paid is:
Correct Answer: A [₹ 38,000]
Explanation:
50,000 × 0.80 = 40,000; × 0.95 = 38,000 (not 50,000 less 25% = 37,500 – the two discounts are not added).
3.
Kumar owes ₹ 45,000 and pays ₹ 44,100 in full settlement. The discount allowed recorded is:
Correct Answer: C [₹ 900]
Explanation:
45,000 − 44,100 = 900 (Cash Dr 44,100, Discount allowed Dr 900, To Kumar 45,000).
4.
Cash is received from a debtor whose account was written off as bad last year. The account credited is:
Correct Answer: D [Bad Debts Recovered Account]
Explanation:
The old account is not revived; the recovery is a gain.
5.
The owner withdraws ₹ 4,000 at the end of every month for a year. Interest on drawings at 10% p.a. is:
Correct Answer: A [₹ 2,200]
Explanation:
48,000 × 10% × 5.5/12 = 2,200.
6.
Capital on 1 April ₹ 6,00,000; additional capital ₹ 1,20,000 introduced on 1 July. Interest on capital at 8% p.a. for the year ending 31 March is:
Correct Answer: C [₹ 55,200]
Explanation:
48,000 + 1,20,000 × 8% × 9/12 (7,200) = 55,200.
7.
Match the followingMatch the account with its type:
P. Machinery Q. Salary R. Debtor (Raju)
1. Nominal 2. Personal 3. Real
P. Machinery Q. Salary R. Debtor (Raju)
1. Nominal 2. Personal 3. Real
Correct Answer: B [P-3, Q-1, R-2]
Explanation:
Machinery – real; salary – nominal; Raju – personal.
8.
Assertion–Reason
A: Interest on drawings is credited to the Interest on Drawings Account.
R: Interest on drawings is an income of the business.
A: Interest on drawings is credited to the Interest on Drawings Account.
R: Interest on drawings is an income of the business.
Correct Answer: D [Both A and R are true and R explains A]
Explanation:
Drawings Dr, To Interest on Drawings – an income is credited.
9.
Odd one out
Correct Answer: C [Furniture]
Explanation:
Furniture is a real account; the others are nominal.
10.
Opening: assets ₹ 2,40,000, liabilities ₹ 60,000. Closing: assets ₹ 3,10,000, liabilities ₹ 70,000. Drawings ₹ 30,000; no additional capital. Profit by the statement of affairs method is:
Correct Answer: A [₹ 90,000]
Explanation:
Capitals 1,80,000 → 2,40,000; 60,000 + 30,000 = 90,000.
11.
Kannan A/c Dr ₹ 50,000; To Bank A/c ?; To Discount Received A/c ₹ 1,250. The amount credited to Bank is:
Correct Answer: B [₹ 48,750]
Explanation:
Missing Leg: 50,000 − 1,250 = 48,750.
12.
Goods costing ₹ 36,000 are destroyed by fire; the insurer admits a claim of ₹ 27,000. The amount debited to Loss by Fire Account is:
Correct Answer: D [₹ 9,000]
Explanation:
Loss = 36,000 − 27,000 = 9,000; Insurance claim Dr 27,000; To Purchases 36,000.
13.
Trick SpotterEqual drawings at the start of each month for 12 months. The quickest way to find interest on drawings is:
Correct Answer: A [Total drawings × rate × 6.5/12]
Explanation:
Average period at the start of the month is 6.5 months.
14.
True/false countHow many statements are true?
I. Purchase of machinery on credit is entered in the Purchases Book.
II. Credit sales of goods are entered in the Sales Book.
III. An opening entry is recorded in the journal proper.
IV. The Cash Book records only cash purchases of goods.
I. Purchase of machinery on credit is entered in the Purchases Book.
II. Credit sales of goods are entered in the Sales Book.
III. An opening entry is recorded in the journal proper.
IV. The Cash Book records only cash purchases of goods.
Correct Answer: B [Two]
Explanation:
II and III are true; machinery on credit goes to the journal proper; the Cash Book records all cash receipts and payments.
15.
Two-quantity comparison
Quantity I: cash paid for goods of list price ₹ 60,000 at 10% trade discount and 5% cash discount
Quantity II: amount payable for goods of list price ₹ 57,000 at 10% trade discount (no cash discount)
Quantity I: cash paid for goods of list price ₹ 60,000 at 10% trade discount and 5% cash discount
Quantity II: amount payable for goods of list price ₹ 57,000 at 10% trade discount (no cash discount)
Correct Answer: C [Quantity I = Quantity II]
Explanation:
QI = 60,000 × 0.9 × 0.95 = 51,300; QII = 57,000 × 0.9 = 51,300.
➤ 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)
Here you get the answer with a one-line explanation. 1,064 original questions with worked answers · Part A Finance & Accounts and Part B Economics & Governance notes · practice sets + 3 mock tests
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