SSC CGL Finance – Trial Balance & Rectification of Errors – Level 2 · Exam Level · Paper III Sprint

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SSC CGL Finance – Trial Balance & Rectification of Errors – 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.  
In a trial balance the debit balances total ₹ 4,86,000 and the credit balances other than capital total ₹ 2,95,500. Capital is:

Correct Answer: A [₹ 1,90,500]

Explanation:

Balancing Figure: 4,86,000 − 2,95,500 = 1,90,500.

2.  
Rent paid ₹ 4,500 was posted to the Rent Account as ₹ 5,400. The rectifying entry after the trial balance is:

Correct Answer: B [Suspense A/c Dr 900; To Rent A/c 900]

Explanation:

Rent is over-debited by 900 → credit Rent 900; the other half is Suspense.

3.  
A credit sale of ₹ 6,000 to Karthik was correctly entered in the Sales Book but not posted to Karthik's account. The suspense account will show:

Correct Answer: C [Debit balance ₹ 6,000]

Explanation:

Debit side is short by 6,000 → Suspense on the debit (shorter) side.

4.  
Repairs to building ₹ 8,000 were debited to the Building Account. Its rectification will:

Correct Answer: D [Decrease profit by ₹ 8,000]

Explanation:

Repairs A/c (nominal) is debited in the rectifying entry → profit falls.

5.  
Two-quantity comparison
Quantity I: difference in the trial balance when ₹ 2,500 received from Hari is posted to the debit of Hari's account
Quantity II: difference in the trial balance when the Sales Book is undercast by ₹ 5,000

Correct Answer: C [Quantity I = Quantity II]

Explanation:

QI = 2 × 2,500 = 5,000; QII = 5,000.

6.  
Match the followingMatch the error with its class:
P. A purchase invoice not recorded at all Q. Machinery repairs debited to Machinery A/c R. Sales A/c and Wages A/c each overcast by ₹ 400
1. Compensating 2. Principle 3. Omission

Correct Answer: A [P-3, Q-2, R-1]

Explanation:

Not recorded – omission; revenue as capital – principle; equal opposite – compensating.

7.  
Assertion–Reason
A: A wrong amount written in the Sales Book does not affect the agreement of the trial balance.
R: Both the Sales Account and the customer's account are posted with the same wrong amount.

Correct Answer: C [Both A and R are true and R explains A]

Explanation:

Original-entry errors are carried equally to both sides.

8.  
Errors: (i) Purchases Book overcast ₹ 1,200; (ii) commission received ₹ 750 entered in the cash book but not posted to Commission A/c; (iii) ₹ 2,000 paid to Sunil posted to the credit of his account. The original suspense balance was:

Correct Answer: D [Debit ₹ 2,050]

Explanation:

+1,200 + 750 − 4,000 = −2,050 → debit side short → Suspense Dr 2,050.

9.  
Draft profit ₹ 85,000. Errors: machinery ₹ 20,000 debited to Repairs; commission received ₹ 3,000 credited to Interest Received; salary ₹ 4,000 paid to a salesman debited to his personal account. Corrected profit is:

Correct Answer: B [₹ 1,01,000]

Explanation:

+20,000 + 0 − 4,000 = +16,000 → 1,01,000.

10.  
True/false countHow many statements are true?
I. An agreed trial balance proves that the books are free from all errors.
II. A wrong-side posting changes the trial balance by twice the amount.
III. Rectifying an error between two personal accounts (e.g. the wrong debtor debited) never changes profit.
IV. Suspense is placed on the shorter side of the trial balance.

Correct Answer: B [Three]

Explanation:

II, III and IV are true; I is false.

11.  
Reverse questionThe credit side of a trial balance exceeds the debit side by ₹ 1,800. The only error: a payment to Ganesh was posted to the credit of his account. The payment was:

Correct Answer: C [₹ 900]

Explanation:

Wrong side doubles: 2x = 1,800 → x = 900.

12.  
Trick SpotterFive errors are given and you must find the original suspense balance. The fastest method is:

Correct Answer: A [Add only the one-sided errors' effects on (Dr − Cr) and put the result on the opposite side]

Explanation:

Shorter-Side Suspense – two-sided errors add nothing.

13.  
Spot My Mistake“Goods ₹ 1,500 returned by Mani were posted to the debit of Mani's account; suspense = ₹ 1,500 debit.” The correct suspense balance is:

Correct Answer: D [Credit ₹ 3,000]

Explanation:

Wrong side → Dr side too big by 3,000 → Suspense Cr 3,000.

14.  
Salary ₹ 2,000 of the previous year was debited to the Furniture Account. The error is found after that year's final accounts were closed. The rectifying entry now is:

Correct Answer: D [Profit and Loss Adjustment A/c Dr 2,000; To Furniture A/c 2,000]

Explanation:

Last year's nominal account is closed – use P&L Adjustment.

15.  
A credit purchase of ₹ 3,600 from Lata was entered in the Sales Book. Rectification will:

Correct Answer: C [Decrease profit by ₹ 7,200]

Explanation:

Purchases Dr 3,600 and Sales Dr 3,600, To Lata 7,200 → two nominal debits → −7,200.

➤ 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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