SSC CGL Finance – Non-Profit Organisations: Receipts & Payments, Income & Expenditure – Level 2 · Exam Level · Paper III Sprint

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SSC CGL Finance – Non-Profit Organisations: Receipts & Payments, Income & Expenditure – Level 2 · Exam Level · Paper III Sprint – 14 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.  
Subscriptions received during 2025-26 ₹ 96,000 (including ₹ 5,000 for 2024-25 and ₹ 6,000 for 2026-27). Subscriptions due but unpaid for 2025-26 ₹ 10,000; received in advance in 2024-25 for 2025-26 ₹ 3,000. Income from subscriptions for 2025-26 is:

Correct Answer: A [₹ 98,000]

Explanation:

96,000 − 5,000 − 6,000 + 10,000 + 3,000 = 98,000 (not the cash received).

2.  
A club has 300 members, each paying an annual subscription of ₹ 200. During the year 15 members have not paid. The subscription credited to the Income and Expenditure Account is:

Correct Answer: B [₹ 60,000]

Explanation:

Accrual basis: all 300 × 200 = 60,000; unpaid 3,000 is an asset.

3.  
Stationery: opening stock ₹ 2,700, closing stock ₹ 4,600; paid to creditors ₹ 21,000; creditors opening ₹ 2,200, closing ₹ 3,600. Stationery consumed is:

Correct Answer: D [₹ 20,500]

Explanation:

2,700 + 21,000 + 3,600 − 2,200 − 4,600 = 20,500.

4.  
Prize fund ₹ 60,000 (invested); interest on prize-fund investments ₹ 4,800; prizes awarded ₹ 7,500. Prize fund shown in the Balance Sheet:

Correct Answer: C [₹ 57,300]

Explanation:

60,000 + 4,800 − 7,500 = 57,300; nothing goes to I&E.

5.  
Statement-based
I. The Receipts and Payments Account records both capital and revenue items.
II. The Income and Expenditure Account records only revenue items of the current year.
Which is/are correct?

Correct Answer: D [Both I and II]

Explanation:

R&P = all cash; I&E = revenue of the year only.

6.  
A credit balance in the Receipts and Payments Account at the end of the year indicates:

Correct Answer: B [a bank overdraft]

Explanation:

Payments exceeded available cash/bank → overdraft.

7.  
On 1 April a club had cash ₹ 15,000, building ₹ 80,000, subscriptions outstanding ₹ 2,000, stock of stationery ₹ 3,000 and salary outstanding ₹ 1,000. The opening capital fund is:

Correct Answer: A [₹ 99,000]

Explanation:

Assets 1,00,000 − liabilities 1,000 = 99,000.

8.  
Match the followingMatch the items with their usual treatment:
P. Specific donation for a building Q. Sale of old newspapers R. Subscriptions outstanding
1. Income 2. Capital (fund) 3. Asset

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

Explanation:

Earmarked donation → fund; newspapers → income; dues → asset.

9.  
Assertion–Reason
A: Depreciation is not shown in the Receipts and Payments Account.
R: The Receipts and Payments Account records only actual cash and bank transactions.

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

Explanation:

Depreciation involves no cash.

10.  
Old furniture with a book value of ₹ 9,000 was sold for ₹ 12,000. In the Income and Expenditure Account of the year:

Correct Answer: C [₹ 3,000 is shown as income (profit on sale)]

Explanation:

Only the profit (12,000 − 9,000) is revenue.

11.  
Entrance (admission) fees received, when the question gives no instruction, are usually:

Correct Answer: A [treated as revenue income]

Explanation:

Usual treatment: revenue; capitalise only if the question says so.

12.  
Sports material: opening stock ₹ 2,500, closing stock ₹ 3,500, paid to suppliers ₹ 12,000; creditors for sports material: opening ₹ 1,200, closing ₹ 2,000. Sports material used:

Correct Answer: D [₹ 11,800]

Explanation:

2,500 + 12,000 + 2,000 − 1,200 − 3,500 = 11,800.

13.  
Arrange in orderArrange in the order in which a non-profit organisation prepares its final accounts from the cash book: (1) Balance Sheet (2) Receipts and Payments Account (3) Income and Expenditure Account (4) Opening Balance Sheet (to find the capital fund)

Correct Answer: A [2, 4, 3, 1]

Explanation:

Summarise cash → find opening fund → I&E → closing Balance Sheet.

14.  
Spot My Mistake“Subscriptions received ₹ 50,000 include ₹ 4,000 for next year. Income = 50,000 + 4,000 = ₹ 54,000.” The correct income (no other dues) is:

Correct Answer: C [₹ 46,000]

Explanation:

Advance for next year is deducted, not added: 50,000 − 4,000.

➤ 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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