SSC CGL Finance – Trial Balance & Rectification of Errors – Level 1 · Warm-up

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SSC CGL Finance – Trial Balance & Rectification of Errors – 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.  
A trial balance is prepared mainly to check:

Correct Answer: B [The arithmetical accuracy of the ledger]

Explanation:

Agreement proves only arithmetical accuracy.

2.  
Which error is NOT revealed by a trial balance?

Correct Answer: A [Purchase of a computer debited to Purchases A/c]

Explanation:

Asset debited to an expense with the right amount – error of principle, two-sided.

3.  
A suspense account is:

Correct Answer: C [A temporary account that holds the difference in the trial balance]

Explanation:

It is opened only until the errors are found and rectified.

4.  
Wages paid for installing a new machine were debited to Wages A/c. This is an error of:

Correct Answer: D [Principle]

Explanation:

Capital expenditure treated as revenue expenditure.

5.  
₹ 3,000 received from Asha was posted to the debit of her account. The trial balance will differ by:

Correct Answer: B [₹ 6,000]

Explanation:

Wrong side → 2 × 3,000 = 6,000.

6.  
In a trial balance, Returns Inward (sales returns) appear in the:

Correct Answer: C [Debit column]

Explanation:

Sales returns reduce sales – a debit balance.

7.  
In a trial balance, Discount Received appears in the:

Correct Answer: A [Credit column]

Explanation:

It is an income (gain) – credit balance.

8.  
A credit purchase was not recorded in any book. The trial balance will:

Correct Answer: D [Still agree]

Explanation:

Complete omission – both sides missing equally.

9.  
Fill in the blankErrors that cancel the effect of each other are called ______ errors.

Correct Answer: A [compensating]

Explanation:

They offset each other, so the trial balance agrees.

10.  
Drawings of the proprietor appear in the trial balance in the:

Correct Answer: C [Debit column]

Explanation:

Drawings reduce capital – debit balance.

11.  
The Purchases Book is overcast by ₹ 1,000. In the trial balance:

Correct Answer: D [The debit side exceeds the credit side by ₹ 1,000]

Explanation:

Only the Purchases A/c (debit) receives the excess total; supplier accounts are correct.

12.  
Which balance is shown in the credit column of a trial balance?

Correct Answer: B [Bank loan]

Explanation:

Answer: Bank loan. A liability – credit balance.

➤ 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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