SSC CGL Finance – Final Accounts: Manufacturing, Trading, P&L, Appropriation & Balance Sheet – Exam-Level Drill

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SSC CGL Finance – Final Accounts: Manufacturing, Trading, P&L, Appropriation & Balance Sheet – 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.  

Directions (Q 36–38): Extract of the trial balance of Meena Textiles (fictional) on 31 March 2026 – opening stock ₹ 40,000; purchases ₹ 2,00,000; wages ₹ 15,000; sales ₹ 3,30,000; salaries ₹ 36,000; rent ₹ 18,000; debtors ₹ 60,000; provision for doubtful debts ₹ 1,000; furniture ₹ 50,000; capital ₹ 2,00,000; drawings ₹ 24,000.

Adjustments: closing stock ₹ 50,000; salaries outstanding ₹ 3,000; rent prepaid ₹ 1,500; provision 5% on debtors; depreciation on furniture 10%.

Data tableGross profit of Meena Textiles is:

Correct Answer: A [₹ 1,25,000]

Explanation:

3,30,000 − (40,000 + 2,00,000 + 15,000 − 50,000) = 1,25,000.

2.  
(Use the directions above – Q 36–38)
Data tableNet profit of Meena Textiles is:

Correct Answer: B [₹ 62,500]

Explanation:

1,25,000 − 39,000 − 16,500 − (3,000 − 1,000) − 5,000 = 62,500.

3.  
(Use the directions above – Q 36–38)
Data tableClosing capital of Meena Textiles is:

Correct Answer: C [₹ 2,38,500]

Explanation:

2,00,000 + 62,500 − 24,000 = 2,38,500.

4.  
Net profit of a firm is ₹ 1,50,000. Capitals: P ₹ 2,00,000, Q ₹ 1,00,000; interest on capital 6% p.a.; Q's salary ₹ 2,000 per month; Q's commission 10% of profit remaining after interest and salary. Profits are shared equally. P's share of the remaining profit is:

Correct Answer: A [₹ 48,600]

Explanation:

1,50,000 − 18,000 − 24,000 = 1,08,000; commission 10,800 → 97,200 ÷ 2 = 48,600.

5.  
Goods costing ₹ 8,000 were distributed as free samples. The correct treatment is:

Correct Answer: D [Credit Purchases ₹ 8,000 and debit Advertisement (P&L) ₹ 8,000]

Explanation:

Free samples are an advertising expense; purchases fall by their cost.

6.  
Net sales are ₹ 3,60,000 and the firm adds 25% to cost to fix selling prices. The cost of goods sold is:

Correct Answer: B [₹ 2,88,000]

Explanation:

25% on cost = 20% on sales → GP 72,000 → COGS 2,88,000.

7.  
Reverse questionCost of goods produced ₹ 3,60,000; factory overheads ₹ 40,000; opening WIP ₹ 25,000; closing WIP ₹ 30,000; sale of scrap ₹ 5,000. Prime cost was:

Correct Answer: D [₹ 3,30,000]

Explanation:

Prime = 3,60,000 − 40,000 − 25,000 + 30,000 + 5,000 = 3,30,000.

8.  
Outstanding salaries of ₹ 4,000 were omitted from the final accounts. Which is true?

Correct Answer: C [Net profit is overstated and liabilities are understated by ₹ 4,000]

Explanation:

Salaries are a P&L item: NP too high; liability missing.

9.  
True/false countHow many of these are shown on the debit side of the P&L Appropriation Account of a firm?
(i) Interest on capital (ii) Interest on drawings (iii) Partner's salary (iv) Interest on partner's loan (v) Transfer to general reserve

Correct Answer: A [3]

Explanation:

(i), (iii), (v). Interest on drawings is a credit; interest on a partner's loan goes to P&L.

10.  
Bad debts ₹ 4,000 and further bad debts ₹ 1,000 are written off; debtors ₹ 90,000 (before the further write-off); new provision 5%; old provision ₹ 9,000. The net effect on P&L is:

Correct Answer: B [Debit ₹ 450]

Explanation:

4,000 + 1,000 + 4,450 − 9,000 = 450 → a debit of ₹ 450.

➤ 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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