SSC CGL Finance – Double Entry, Books of Original Entry & Journal – Level 3 · Challenge
← Back
Capital is the owner's claim – it increases on the credit side.
₹299 →
SSC CGL Finance – Double Entry, Books of Original Entry & Journal – 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.
Get daily current affairs & exam alerts – follow us
YouTube
WhatsApp Channel
Telegram Channel
Facebook Page
Instagram
Share with friends & study groups
Link to this page from your website / blog (HTML code)
1.
Goods of list price ₹ 1,00,000 are sold to Rajan at 15% trade discount. He pays 40% of the amount due at once and gets 2% cash discount on that payment. Cash received is:
Correct Answer: D [₹ 33,320]
Explanation:
Invoice 85,000; 40% = 34,000; less 2% = 33,320.
2.
Drawings: ₹ 10,000 on 1 July, ₹ 15,000 on 1 October and ₹ 20,000 on 1 January. Year ends 31 March; interest on drawings 12% p.a. The interest is:
Correct Answer: C [₹ 2,400]
Explanation:
Product method: (10,000 × 9 + 15,000 × 6 + 20,000 × 3) × 12%/12 = 2,400.
3.
The journal entry for interest on capital is:
Correct Answer: D [Interest on Capital A/c Dr, To Capital A/c]
Explanation:
Interest on capital is an expense of the firm and is credited to the owner's capital.
4.
Wages of ₹ 5,000 are due but not paid at the year end. The adjusting entry is:
Correct Answer: B [Wages A/c Dr, To Outstanding Wages A/c]
Explanation:
Expense recognised (Dr), liability created (Cr).
5.
Furniture is bought on credit from Sharma Furnishers for office use. This is first recorded in the:
Correct Answer: A [Journal proper]
Explanation:
The Purchases Book is only for goods bought for resale on credit.
6.
Reverse questionOpening capital ₹ 1,50,000; additional capital ₹ 20,000; profit ₹ 45,000; drawings ₹ 18,000. Closing capital is:
Correct Answer: C [₹ 1,97,000]
Explanation:
1,50,000 + 20,000 + 45,000 − 18,000 = 1,97,000.
7.
Cash ₹ 20,000 is withdrawn from the bank for office use. The entry is:
Correct Answer: B [Cash A/c Dr, To Bank A/c]
Explanation:
Cash comes in, bank balance goes down (a contra entry); not drawings because it is for office use.
8.
Assertion–Reason
A: The Capital Account normally shows a credit balance.
R: Capital is the amount the business owes to its owner.
A: The Capital Account normally shows a credit balance.
R: Capital is the amount the business owes to its owner.
Correct Answer: A [Both A and R are true and R explains A]
Explanation:
Capital is the owner's claim – it increases on the credit side.
➤ 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
Get the book – ₹149 More quizzes
› SSC CGL Finance – Mock Test M3 – Mixed Paper III Rehearsal
› SSC CGL Finance – Mock Test M2 – Part B: Economics & Governance
› SSC CGL Finance – Mock Test M1 – Part A: Finance & Accounts
› SSC CGL Finance – Role of Information Technology in Governance – Exam-Level Drill
› SSC CGL Finance – Role of Information Technology in Governance – Level 3 · Challenge
› SSC CGL Finance – Role of Information Technology in Governance – Level 2 · Exam Level · Paper III Sprint
Score: 0
Answered: 0 / 0
