SSC CGL Finance – Mock Test M1 – Part A: Finance & Accounts

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SSC CGL Finance – Mock Test M1 – Part A: Finance & Accounts – 25 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.  
At the year-end a trader's assets are ₹ 4,80,000 and his outside liabilities ₹ 1,35,000. His capital at the start was ₹ 3,00,000; he withdrew ₹ 18,000 and introduced nothing. His profit for the year is:

Correct Answer: B [₹ 63,000]

Explanation:

Closing capital = 4,80,000 − 1,35,000 = 3,45,000; profit = 3,45,000 − 3,00,000 + 18,000 = 63,000.

2.  
Which of these is one of the three fundamental accounting assumptions under AS 1?

Correct Answer: D [Going concern]

Explanation:

AS 1 names going concern, consistency and accrual.

3.  
Goods costing ₹ 3,500 taken by the proprietor for personal use are recorded as:

Correct Answer: A [Drawings A/c Dr; To Purchases A/c ₹ 3,500]

Explanation:

Goods withdrawn reduce purchases, not sales.

4.  
Goods listed at ₹ 40,000 are sold at 15% trade discount; the buyer pays at once and gets 2% cash discount. The cash received is:

Correct Answer: C [₹ 33,320]

Explanation:

40,000 × 0.85 = 34,000; less 2% = 33,320.

5.  
Cash book: opening cash ₹ 12,000 and bank ₹ 30,000. Cash deposited into bank ₹ 8,000; cheque issued ₹ 11,500; cash sales ₹ 6,200; cash withdrawn from bank for office ₹ 5,000. The closing bank balance is:

Correct Answer: A [₹ 21,500]

Explanation:

30,000 + 8,000 − 11,500 − 5,000 = 21,500 (contra entries appear on both sides).

6.  
Under the imprest system the petty cashier starts each week with ₹ 5,000. He spent ₹ 3,860 this week. The head cashier now gives him:

Correct Answer: B [₹ 3,860]

Explanation:

The imprest is restored by paying exactly the amount spent.

7.  
Cash book (Dr) ₹ 26,400. Cheques issued not presented ₹ 7,900; cheques deposited not credited ₹ 5,300; bank charges ₹ 180 and interest credited ₹ 420 appear only in the pass book. Balance as per pass book is:

Correct Answer: C [₹ 29,240]

Explanation:

26,400 + 7,900 − 5,300 − 180 + 420 = 29,240.

8.  
Overdraft as per pass book ₹ 14,000. Cheques deposited but not yet credited ₹ 3,500; cheques issued but not yet presented ₹ 6,200. Overdraft as per cash book is:

Correct Answer: D [₹ 16,700]

Explanation:

−14,000 + 3,500 − 6,200 = −16,700 (overdraft: credit in cash book, debit in pass book).

9.  
The Sales Book was overcast by ₹ 1,800, and a credit sale of ₹ 2,600 to Leela was posted to her account as ₹ 6,200. The suspense account opened for the difference shows:

Correct Answer: C [Credit balance ₹ 1,800]

Explanation:

Cr side +1,800 (sales) and Dr side +3,600 (Leela): net Dr excess 1,800 → Suspense on the credit side.

10.  
Draft net profit ₹ 72,000. Errors: repairs to machinery ₹ 4,500 debited to the Machinery Account; sale of old furniture ₹ 3,000 credited to Sales. The corrected net profit is (ignore depreciation):

Correct Answer: A [₹ 64,500]

Explanation:

Repairs Dr 4,500 (−) and Sales Dr 3,000 (−): 72,000 − 7,500 = 64,500.

11.  
A machine costs ₹ 3,60,000 and its installation ₹ 40,000. Residual value ₹ 25,000; useful life 15 years. Annual straight-line depreciation is:

Correct Answer: B [₹ 25,000]

Explanation:

(4,00,000 − 25,000) ÷ 15 = 25,000; installation is part of cost.

12.  
A machine costing ₹ 2,00,000 was bought on 1 October. Depreciation is 15% p.a. on the written down value; the year ends on 31 March. Its book value at the end of the second year is:

Correct Answer: D [₹ 1,57,250]

Explanation:

Year 1 (6 months): 15,000 → 1,85,000; year 2: 27,750 → 1,57,250.

13.  
A machine costing ₹ 1,50,000 was bought on 1 April 2022 and sold on 30 June 2025 for ₹ 1,05,000. Depreciation is 10% p.a. on cost (SLM), year ending 31 March. The result of the sale is:

Correct Answer: B [Profit ₹ 3,750]

Explanation:

39 months × 1,250 = 48,750; book value 1,01,250; 1,05,000 − 1,01,250 = +3,750.

14.  
Opening stock 100 units @ ₹ 30; purchases 200 units @ ₹ 32 and then 200 units @ ₹ 33; 310 units issued. Closing stock under FIFO is:

Correct Answer: A [₹ 6,270]

Explanation:

190 units, all from the last lot: 190 × 33 = 6,270.

15.  
Opening stock 100 units @ ₹ 30; purchases 200 units @ ₹ 32 and then 200 units @ ₹ 33; 310 units issued. Closing stock at periodic weighted average is:

Correct Answer: D [₹ 6,080]

Explanation:

16,000 ÷ 500 = 32; 190 × 32 = 6,080 (FIFO and weighted average are the AS 2 formulas).

16.  
Three items: X cost ₹ 12,000, NRV ₹ 15,000; Y cost ₹ 9,000, NRV ₹ 7,800; Z cost ₹ 6,500, NRV ₹ 6,000. Inventory value under AS 2 is:

Correct Answer: C [₹ 25,800]

Explanation:

Lower of cost and NRV item by item: 12,000 + 7,800 + 6,000.

17.  
A fire destroyed a trader's godown on 30 September. Stock on 1 April was ₹ 45,000; purchases from 1 April to 30 September ₹ 1,95,000; sales in the same period ₹ 2,40,000. His gross profit is one-sixth of sales. Goods worth ₹ 6,000 were saved. The value of stock destroyed is:

Correct Answer: B [₹ 34,000]

Explanation:

Cost of sales = 5/6 × 2,40,000 = 2,00,000; stock 40,000; less 6,000 saved (one-sixth of sales = 20% on cost).

18.  
Opening stock ₹ 30,000; purchases ₹ 1,40,000; returns outward ₹ 4,000; carriage inward ₹ 6,000; wages ₹ 18,000; sales ₹ 2,25,000; returns inward ₹ 5,000; closing stock ₹ 36,000. Gross profit is:

Correct Answer: A [₹ 66,000]

Explanation:

Net sales 2,20,000 − cost of goods sold 1,54,000 = 66,000.

19.  
Net profit before adjustments ₹ 50,000. Adjust: salary outstanding ₹ 2,500; insurance prepaid ₹ 1,200; interest accrued (receivable) ₹ 800; depreciation ₹ 3,000. Net profit after adjustments is:

Correct Answer: D [₹ 46,500]

Explanation:

50,000 − 2,500 + 1,200 + 800 − 3,000 = 46,500.

20.  
A and B share profits 3 : 2. Capitals: A ₹ 2,00,000, B ₹ 1,50,000; interest on capital 10% p.a.; salary to B ₹ 24,000 a year (both allowed by the deed). Profit ₹ 1,20,000. A's share of the remaining profit is:

Correct Answer: C [₹ 36,600]

Explanation:

1,20,000 − 35,000 − 24,000 = 61,000; × 3/5 = 36,600.

21.  
A club received subscriptions of ₹ 84,000 during the year: ₹ 6,000 for last year and ₹ 4,500 for next year. Subscriptions of ₹ 7,200 for the current year are still due. Income from subscriptions for the year is:

Correct Answer: B [₹ 80,700]

Explanation:

84,000 − 6,000 − 4,500 + 7,200 = 80,700.

22.  
Assertion–Reason
A: A legacy received by a club is usually added to its capital fund.
R: A legacy is a capital receipt of a non-recurring nature.

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

Explanation:

Usual treatment: legacies are capital receipts added to the capital fund.

23.  
A bill dated 14 January 2026 is payable two months after date. Its due date is (no holiday falls in the way):

Correct Answer: C [17 March 2026]

Explanation:

Answer: 17 March 2026. 14 March + 3 days of grace.

24.  
A bill of ₹ 60,000 is discounted with a bank two months before its due date at 12% p.a. The amount received from the bank is:

Correct Answer: D [₹ 58,800]

Explanation:

Discount = 60,000 × 12% × 2/12 = 1,200; proceeds 58,800.

25.  
Debtors' ledger totals: opening ₹ 48,000; credit sales ₹ 1,62,000; cash received ₹ 1,38,000; returns inward ₹ 4,500; bad debts ₹ 1,500; bills receivable received ₹ 12,000. The closing balance of the Debtors' Ledger Adjustment (control) total is:

Correct Answer: C [₹ 54,000]

Explanation:

48,000 + 1,62,000 − 1,38,000 − 4,500 − 1,500 − 12,000 = 54,000.

➤ 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

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