SSC CGL Finance – Ledger & Subsidiary Books – Level 1 · Warm-up

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SSC CGL Finance – Ledger & Subsidiary Books – 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 ledger is known as the:

Correct Answer: D [Principal book of accounts]

Explanation:

All accounts are kept in the ledger – the principal book.

2.  
While balancing an account, “Balance c/d” is written on the:

Correct Answer: A [Side with the smaller total]

Explanation:

It makes the smaller side equal to the bigger side.

3.  
Which account can show only a debit balance or nil?

Correct Answer: C [Cash Account]

Explanation:

Cash paid cannot exceed cash held; bank can be overdrawn.

4.  
In a cash book, a contra entry is identified by the letter written in the L.F. column:

Correct Answer: B [C]

Explanation:

“C” = contra; the entry appears on both sides.

5.  
The system under which the petty cashier is reimbursed exactly what he spent is the:

Correct Answer: A [Imprest system]

Explanation:

Imprest = fixed float refilled to the same level.

6.  
The Purchases Book records:

Correct Answer: C [Credit purchases of goods]

Explanation:

Cash purchases go to the cash book; assets on credit to the journal proper.

7.  
The Sales Returns Book is also called the:

Correct Answer: D [Returns Inward Book]

Explanation:

Goods come back in from customers – returns inward.

8.  
The discount column on the credit (payments) side of a cash book shows:

Correct Answer: B [Discount received]

Explanation:

We pay less than we owe – discount received.

9.  
A creditor's account normally shows a:

Correct Answer: B [Credit balance]

Explanation:

Liabilities increase on the credit side.

10.  
Fill in the blankThe cash book serves both as a book of original entry and as a ______.

Correct Answer: A [ledger account]

Explanation:

Its cash and bank columns are the Cash and Bank accounts.

11.  
A credit balance in the bank column of a cash book means:

Correct Answer: C [Bank overdraft]

Explanation:

The firm has withdrawn more than it had – it owes the bank.

12.  
Odd one outOdd one out (by normal balance):

Correct Answer: D [Discount received]

Explanation:

Discount received is an income (credit); the others have debit balances.

➤ 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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