SSC CGL Finance – Self-Balancing Ledgers – Exam-Level Drill

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SSC CGL Finance – Self-Balancing Ledgers – 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 36–39): Hari & Co. (fictional) keeps self-balancing ledgers. June 2026 – debtors' ledger opening balances: Dr ₹ 1,50,000, Cr ₹ 2,000. Credit sales ₹ 3,60,000; cash sales ₹ 80,000; cash received from debtors ₹ 3,05,000 (including ₹ 1,500 bad debts recovered, written off last year); discount allowed ₹ 6,000; returns inward ₹ 9,000; B/R received ₹ 40,000; B/R discounted ₹ 20,000; B/R dishonoured ₹ 8,000 (including ₹ 5,000 of a discounted bill); bad debts ₹ 3,000; provision for doubtful debts raised ₹ 4,000; closing credit balances in the debtors' ledger ₹ 2,500.

Data tableCash received from debtors to be entered in the control account is:

Correct Answer: C [₹ 3,03,500]

Explanation:

3,05,000 − 1,500 recovered bad debts = 3,03,500.

2.  
(Use the directions above – Q 36–39)
Data tableThe amount of B/R dishonoured to be debited to the Debtors' control is:

Correct Answer: A [₹ 8,000]

Explanation:

All dishonoured bills revive the customers' debts – even the discounted one.

3.  
(Use the directions above – Q 36–39)
Data tableThe closing net balance (debit balances minus credit balances) of the debtors' ledger is:

Correct Answer: C [₹ 1,54,500]

Explanation:

1,48,000 + 3,60,000 + 8,000 − 3,03,500 − 6,000 − 9,000 − 40,000 − 3,000 = 1,54,500.

4.  
(Use the directions above – Q 36–39)
Data tableThe closing DEBIT balances carried down in the Debtors' control are:

Correct Answer: A [₹ 1,57,000]

Explanation:

Net 1,54,500 + credit balances 2,500 = 1,57,000 (shown separately).

5.  
Creditors: opening ₹ 1,20,000; credit purchases ₹ 2,50,000; cash purchases ₹ 40,000; paid ₹ 2,10,000; discount received ₹ 4,000; returns outward ₹ 7,000; B/P accepted ₹ 30,000; B/P dishonoured ₹ 6,000; transfer from debtors' ledger ₹ 3,000. Closing creditors:

Correct Answer: B [₹ 1,22,000]

Explanation:

1,20,000 + 2,50,000 + 6,000 − 2,10,000 − 4,000 − 7,000 − 30,000 − 3,000 = 1,22,000.

6.  
Reverse questionCreditors: opening ₹ 80,000; closing ₹ 95,000; cash paid ₹ 1,80,000; discount received ₹ 3,000; returns outward ₹ 2,000; B/P accepted ₹ 15,000. Credit purchases were:

Correct Answer: D [₹ 2,15,000]

Explanation:

95,000 − 80,000 + 2,00,000 = 2,15,000.

7.  
Which entry is passed in the General Ledger Adjustment Account of the CREDITORS' ledger for monthly credit purchases of ₹ 50,000?

Correct Answer: D [Debit ₹ 50,000]

Explanation:

CLA (general ledger) is credited; the mirror GLA in the creditors' ledger is debited.

8.  
Which pair is correctly matched?

Correct Answer: C [Sectional balancing – memorandum Total Debtors A/c in the general ledger]

Explanation:

In sectional balancing the Total Debtors A/c is a memorandum account in the general ledger; in self-balancing every ledger balances, and each personal ledger holds a General Ledger Adjustment A/c.

9.  
Self-balancing ledgers: a credit sale of ₹ 7,000 is correctly totalled in the sales book but posted to the customer's account as ₹ 700. Which ledger will NOT agree?

Correct Answer: B [Debtors' ledger only]

Explanation:

Totals (general ledger and GLA) are right; only the personal posting is short by 6,300.

10.  
A sales invoice of ₹ 4,000 was omitted from the sales book (and so from both the customer's account and the control total). Under self-balancing:

Correct Answer: A [all ledgers still balance; the error is not revealed by the adjustment accounts]

Explanation:

An error of complete omission affects both sides equally – it is not revealed.

➤ 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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