SSC CGL Finance – Non-Profit Organisations: Receipts & Payments, Income & Expenditure – Level 3 · Challenge

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SSC CGL Finance – Non-Profit Organisations: Receipts & Payments, Income & Expenditure – Level 3 · Challenge – 8 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 28–30): Read the data of Kalai Music Society (fictional) for 2025-26.

Item ₹
Subscriptions outstanding on 1 April 2025 6,000
Subscriptions received in advance on 1 April 2025 (for 2025-26) 2,000
Subscriptions received in 2025-26 (cash) 75,000
Subscriptions outstanding on 31 March 2026 9,000
Subscriptions received in advance on 31 March 2026 (for 2026-27) 3,000

All of the opening outstanding ₹ 6,000 was received during 2025-26.

Data tableSubscription income of Kalai Music Society for 2025-26 is:

Correct Answer: B [₹ 77,000]

Explanation:

75,000 − 6,000 + 9,000 + 2,000 − 3,000 = 77,000.

2.  
(Use the directions above – Q 28–30)
Data tableIn the Balance Sheet of 31 March 2026, subscriptions appear as:

Correct Answer: D [asset ₹ 9,000 and liability ₹ 3,000]

Explanation:

Outstanding (due) = asset; advance (for next year) = liability.

3.  
(Use the directions above – Q 28–30)
Data tableOut of the cash received, the amount that relates to 2025-26 itself is:

Correct Answer: B [₹ 66,000]

Explanation:

75,000 − 6,000 (last year) − 3,000 (next year) = 66,000.

4.  
Sports-day fund ₹ 30,000; interest on sports-day-fund investments ₹ 2,400; sports-day expenses ₹ 36,000. The treatment is:

Correct Answer: A [Close the fund; debit ₹ 3,600 to the Income and Expenditure Account]

Explanation:

Expenses exceed the fund + its income by 3,600 → excess is a revenue expense.

5.  
Reverse questionA club's capital fund rose from ₹ 1,52,000 to ₹ 2,10,000 during the year. Life membership fees of ₹ 40,000 were capitalised. The surplus for the year was:

Correct Answer: D [₹ 18,000]

Explanation:

2,10,000 − 1,52,000 − 40,000 = 18,000.

6.  
True/false countHow many of these appear in the Income and Expenditure Account (usual treatment)?
(i) Depreciation (ii) Purchase of furniture (iii) Outstanding salary of the year (iv) Legacy (v) Interest accrued on investments

Correct Answer: C [3]

Explanation:

(i), (iii), (v). Furniture purchase and legacy are capital items.

7.  
A club paid insurance of ₹ 3,600 on 1 July 2025 for one year. For the year ended 31 March 2026, insurance expense is:

Correct Answer: B [₹ 2,700]

Explanation:

9 months (July–March) of 3,600 = 2,700; 900 is prepaid (asset).

8.  
A hospital received a donation of ₹ 30,000 for a new X-ray machine and a general donation of ₹ 15,000. Usual treatment:

Correct Answer: A [₹ 30,000 to a specific fund (liability side); ₹ 15,000 to the I&E Account]

Explanation:

Earmarked donation is capital; general donation is revenue.

➤ 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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