SSC CGL Finance – Trial Balance & Rectification of Errors – Exam-Level Drill
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Draft + 9,000 − 1,500 = 1,50,000 → draft = 1,42,500.
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SSC CGL Finance – Trial Balance & Rectification of Errors – Exam-Level Drill – 10 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. Kalyani Traders: the suspense balance and its side are:
Directions (Q 36–40): Kalyani Traders' trial balance totalled Dr ₹ 4,18,050 and Cr ₹ 4,13,450; the difference was put in Suspense. Errors found: (a) Purchases Book undercast ₹ 2,400; (b) sale of old furniture ₹ 6,000 credited to Sales; (c) ₹ 3,750 received from Deepak posted to the debit of his account; (d) salary ₹ 4,200 posted to Salaries A/c as ₹ 2,400; (e) discount received ₹ 650 posted to the debit of Discount Received A/c; (f) goods ₹ 5,000 returned by Neha entered in the Purchases Returns Book.
Correct Answer: B [₹ 4,600 credit]
Explanation:
Dr total is larger → credit side short: −2,400 + 7,500 − 1,800 + 1,300 = +4,600.
2.
(Use the directions above – Q 36–40)
Kalyani Traders: draft profit was ₹ 92,500. Corrected profit is:
Kalyani Traders: draft profit was ₹ 92,500. Corrected profit is:
Correct Answer: A [₹ 73,600]
Explanation:
−2,400 − 6,000 − 1,800 + 1,300 − 10,000 = −18,900 → 73,600.
3.
(Use the directions above – Q 36–40)
Kalyani Traders: the rectifying entry for (f) is:
Kalyani Traders: the rectifying entry for (f) is:
Correct Answer: C [Sales Returns Dr 5,000; Purchases Returns Dr 5,000; To Neha 10,000]
Explanation:
Cancel the wrong (Neha Dr, Purchases Returns Cr) and put in the right (Sales Returns Dr, Neha Cr).
4.
(Use the directions above – Q 36–40)
Kalyani Traders: how many of the errors (a)–(f) affected the agreement of the trial balance?
Kalyani Traders: how many of the errors (a)–(f) affected the agreement of the trial balance?
Correct Answer: D [Four]
Explanation:
(a), (c), (d), (e) are one-sided; (b) and (f) are two-sided.
5.
(Use the directions above – Q 36–40)
Kalyani Traders: the rectifying entry for (e) is:
Kalyani Traders: the rectifying entry for (e) is:
Correct Answer: C [Suspense A/c Dr 1,300; To Discount Received A/c 1,300]
Explanation:
Wrong side → 2 × 650; credit Discount Received, debit Suspense.
6.
A credit sale of ₹ 8,400 to Usha was entered in the Sales Book as ₹ 4,800, but Usha's account was posted correctly from the invoice with ₹ 8,400. The suspense balance arising is:
Correct Answer: A [Credit ₹ 3,600]
Explanation:
Only Sales got the wrong figure; Usha is right → one-sided: Dr side larger by 3,600.
7.
Last year, machinery bought for ₹ 18,000 was debited to Purchases. The error is found this year after last year's accounts were closed. The rectifying entry is (ignore depreciation):
Correct Answer: B [Machinery A/c Dr 18,000; To Profit and Loss Adjustment A/c 18,000]
Explanation:
Last year's Purchases are closed – credit P&L Adjustment (profit of last year was understated).
8.
Two-quantity comparisonQuantity I: change in profit on rectifying “Sales Book undercast by ₹ 2,100”
Quantity II: change in profit on rectifying “₹ 1,050 received from Bala posted to the debit of his account”
Quantity II: change in profit on rectifying “₹ 1,050 received from Bala posted to the debit of his account”
Correct Answer: A [Quantity I > Quantity II]
Explanation:
QI = +2,100 (Sales credited); QII = 0 (personal account and Suspense only).
9.
Assertion–Reason
A: If the suspense account is not closed when the final accounts are prepared, its balance is shown in the Balance Sheet.
R: The suspense account is a nominal account.
A: If the suspense account is not closed when the final accounts are prepared, its balance is shown in the Balance Sheet.
R: The suspense account is a nominal account.
Correct Answer: B [A is true but R is false]
Explanation:
Suspense is a temporary account, not a nominal (expense/income) account; an unclosed balance goes to the Balance Sheet.
10.
Reverse questionAfter rectifying two errors – furniture ₹ 9,000 debited to Purchases, and rent paid ₹ 1,500 not posted to the Rent Account – the corrected profit is ₹ 1,50,000. The draft profit was:
Correct Answer: C [₹ 1,42,500]
Explanation:
Draft + 9,000 − 1,500 = 1,50,000 → draft = 1,42,500.
➤ 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
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