SSC CGL Finance – Final Accounts: Manufacturing, Trading, P&L, Appropriation & Balance Sheet – Level 1 · Warm-up

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SSC CGL Finance – Final Accounts: Manufacturing, Trading, P&L, Appropriation & Balance Sheet – 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.  
Carriage inwards paid on goods purchased is debited to:

Correct Answer: C [Trading Account]

Explanation:

It brings goods to the business – a direct expense, so Trading A/c (Dr).

2.  
Which of these items is debited to the Manufacturing Account?

Correct Answer: D [Rent of the factory building]

Explanation:

Factory rent is a factory overhead; the others are P&L items.

3.  
Raw materials consumed ₹ 1,85,000, direct wages ₹ 75,000 and direct expenses ₹ 15,000. Prime cost is:

Correct Answer: A [₹ 2,75,000]

Explanation:

Prime cost = 1,85,000 + 75,000 + 15,000 = 2,75,000 (MWE).

4.  
Opening stock ₹ 30,000, purchases ₹ 1,70,000, direct expenses ₹ 12,000, closing stock ₹ 22,000. Cost of goods sold is:

Correct Answer: B [₹ 1,90,000]

Explanation:

30,000 + 1,70,000 + 12,000 − 22,000 = 1,90,000.

5.  
Net sales ₹ 2,40,000 and cost of goods sold ₹ 1,80,000. The gross profit ratio is:

Correct Answer: D [25%]

Explanation:

GP = 60,000; 60,000 ÷ 2,40,000 × 100 = 25% (always on net sales).

6.  
Wages outstanding at the year-end are shown in the Balance Sheet as:

Correct Answer: B [a current liability]

Explanation:

Expense due but unpaid → added to wages and shown as a liability.

7.  
Insurance paid in advance for the next year is:

Correct Answer: A [a current asset]

Explanation:

Prepaid expense = benefit still to come → current asset.

8.  
A Balance Sheet is prepared:

Correct Answer: C [on a particular date]

Explanation:

It shows the position on one date (e.g.

9.  
In a partnership firm, interest on partners' capitals (allowed by the deed) is debited to the:

Correct Answer: B [P&L Appropriation Account]

Explanation:

It is an appropriation of profit, not a charge.

10.  
Fill in the blankNet profit = Gross profit + other incomes − ______.

Correct Answer: D [indirect expenses and losses]

Explanation:

Direct expenses are already used in the Trading A/c.

11.  
The owner took goods costing ₹ 5,000 for personal use. The correct treatment is:

Correct Answer: A [Deduct ₹ 5,000 from purchases and add it to drawings]

Explanation:

Drawings A/c Dr, Purchases A/c Cr – at cost.

12.  
Odd one outOdd one out (by the statement to which it is debited):

Correct Answer: C [Freight inwards]

Explanation:

Freight inwards → Trading; the other three → P&L.

➤ 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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