SSC CGL Finance – Self-Balancing Ledgers – Level 3 · Challenge

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SSC CGL Finance – Self-Balancing Ledgers – 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): Extract of Selvi Traders (fictional) for May 2026 – opening debtors ₹ 1,10,000; total sales ₹ 3,00,000 (of which cash sales ₹ 60,000); cash received from debtors ₹ 1,70,000; discount allowed ₹ 3,500; returns inward ₹ 6,500; B/R received ₹ 25,000; B/R dishonoured ₹ 4,000; bad debts written off ₹ 2,000; bad debts recovered ₹ 1,200; transfer to creditors' ledger ₹ 7,000. Opening creditors ₹ 90,000; credit purchases ₹ 1,80,000; cash paid ₹ 1,50,000; discount received ₹ 2,500.

Data tableClosing balance of Selvi's Debtors' Ledger Adjustment Account:

Correct Answer: B [₹ 1,40,000]

Explanation:

Credit sales 2,40,000 only: 1,10,000 + 2,40,000 + 4,000 − (1,70,000 + 3,500 + 6,500 + 25,000 + 2,000 + 7,000) = 1,40,000.

2.  
(Use the directions above – Q 28–30)
Data tableClosing balance of Selvi's Creditors' Ledger Adjustment Account:

Correct Answer: D [₹ 1,10,500]

Explanation:

90,000 + 1,80,000 − 1,50,000 − 2,500 − 7,000 (set-off) = 1,10,500.

3.  
(Use the directions above – Q 28–30)
Data tableWhich item of Selvi's data is correctly left out of both control accounts?

Correct Answer: A [Bad debts recovered ₹ 1,200]

Explanation:

Recoveries do not reopen a customer's account.

4.  
Reverse questionDebtors: opening ₹ 60,000; closing ₹ 98,000; credit sales ₹ 2,00,000; cheques dishonoured ₹ 3,000; discount allowed ₹ 5,000; returns inward ₹ 2,000. Cash received from debtors (no other items) was:

Correct Answer: C [₹ 1,58,000]

Explanation:

60,000 + 2,03,000 − 7,000 − 98,000 = 1,58,000.

5.  
In the debtors' ledger, Sales returns of ₹ 9,000 for the month are posted in total to the General Ledger Adjustment Account on its:

Correct Answer: B [debit side]

Explanation:

In DLA (general ledger) returns are credited; the mirror GLA is debited.

6.  
True/false countHow many of these reduce the closing balance of the Debtors' control account?
(i) Bills receivable received (ii) Cheque from a customer dishonoured (iii) Bad debts written off (iv) Cash sales (v) Allowance to a customer for short supply

Correct Answer: D [3]

Explanation:

(i), (iii), (v) reduce; (ii) increases; (iv) is outside.

7.  
A firm uses sectional balancing. The list of customers' balances totals ₹ 2,03,400 but the Total Debtors Account shows ₹ 2,04,300. The most direct conclusion is:

Correct Answer: B [an error of ₹ 900 lies in the debtors' ledger or in the totals posted]

Explanation:

The total account and the list should agree; the difference points to the debtors' side.

8.  
Statement-based
I. Trade discount is entered in the Debtors' control account.
II. Interest charged on a customer's overdue account is debited to the Debtors' control account.
III. Bills payable paid on maturity are entered in the Creditors' control account.
Which is/are correct?

Correct Answer: D [Only II]

Explanation:

Trade discount is never recorded; B/P payment does not touch the supplier.

➤ 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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