SSC CGL Finance – Mock Test M3 – Mixed Paper III Rehearsal | Online Quiz

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SSC CGL Finance – Mock Test M3 – Mixed Paper III Rehearsal – 50 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.

Incomplete records: capital at the start ₹ 1,50,000; at the end ₹ 1,92,000; drawings ₹ 30,000; additional capital ₹ 20,000. Profit for the year is:

Correct Answer: D [₹ 52,000]

Explanation:

Closing − opening + drawings − additional capital (statement of affairs).

Which of these is a representative personal account?

Correct Answer: C [Outstanding Salary A/c]

Explanation:

Outstanding and prepaid accounts represent persons; Ravi – natural, Bank – artificial, Furniture – real.

₹ 2,000 is received in cash from a customer whose debt had been written off as bad two years ago. The entry is:

Correct Answer: B [Cash A/c Dr; To Bad Debts Recovered A/c]

Explanation:

A recovered bad debt is income: Cash A/c Dr; To Bad Debts Recovered A/c.

Goods listed at ₹ 25,000 are bought on credit at 20% trade discount. The amount entered in the Purchases Book is:

Correct Answer: A [₹ 20,000]

Explanation:

Purchases Book records the net amount after trade discount.

Pass book (Cr) ₹ 18,750. Cheques issued not presented ₹ 4,250; cheques deposited not credited ₹ 2,600; dividend ₹ 1,100 collected by the bank not entered in the cash book. Cash book balance is:

Correct Answer: C [₹ 16,000]

Explanation:

18,750 − 4,250 + 2,600 − 1,100 = 16,000.

Furniture bought on credit for ₹ 7,500 was entered in the Purchases Book. Before correction, the net profit was:

Correct Answer: B [Understated by ₹ 7,500]

Explanation:

An asset treated as an expense – error of principle; TB still agrees.

Discount of ₹ 1,250 allowed to Hari was posted to the debit of his account (the Discount Allowed A/c was correct). The trial balance will show:

Correct Answer: D [Debit side larger by ₹ 2,500]

Explanation:

Wrong side → twice the amount on the debit side.

Under the sum-of-years-digits method, a machine with a 5-year life has a depreciable amount of ₹ 60,000 (cost ₹ 66,000). By how much does the year-1 charge exceed the year-4 charge?

Correct Answer: A [₹ 12,000]

Explanation:

Weights 5 and 2 out of 15: (5 − 2)/15 × 60,000 = 12,000.

An asset costing ₹ 80,000 has a written down value of ₹ 51,200 after two years. The WDV rate used is:

Correct Answer: C [20%]

Explanation:

Answer: 20%. 80,000 × 0.8² = 51,200.

10.

A machine costing ₹ 2,40,000 (no residual value) is expected to work 60,000 hours. It worked 9,000 hours this year. Depreciation by the units-of-production method is:

Correct Answer: D [₹ 36,000]

Explanation:

₹ 4 per hour × 9,000 = 36,000.

11.

A stores ledger is kept on the running-average basis. Balance: 50 units worth ₹ 2,000. Received 150 units costing ₹ 6,600. Issued 100 units. Received 100 units costing ₹ 4,800. The value of the 200 units now held is:

Correct Answer: A [₹ 9,100]

Explanation:

Average after first receipt 8,600 ÷ 200 = 43; 100 left = 4,300; + 4,800 = 9,100.

12.

Closing stock was undervalued by ₹ 9,000. Reported net profit ₹ 60,000. The correct net profit is:

Correct Answer: B [₹ 69,000]

Explanation:

Higher closing stock → higher profit.

13.

Raw material: opening ₹ 20,000, purchases ₹ 1,10,000, closing ₹ 25,000; direct wages ₹ 45,000; direct expenses ₹ 8,000; factory overheads ₹ 22,000; work in progress: opening ₹ 10,000, closing ₹ 12,000. Prime cost is:

Correct Answer: A [₹ 1,58,000]

Explanation:

Materials consumed 1,05,000 + wages 45,000 + direct expenses 8,000.

14.

Correct Answer: D [₹ 1,78,000]

Explanation:

1,58,000 + 22,000 + 10,000 − 12,000 = 1,78,000.

15.

Debtors ₹ 80,000 before writing off further bad debts of ₹ 2,000. Provision for doubtful debts is to be kept at 5% of debtors; the old provision is ₹ 3,500. The total charge to the P&L Account for bad and doubtful debts is:

Correct Answer: C [₹ 2,400]

Explanation:

New provision 5% × 78,000 = 3,900; charge = 2,000 + 3,900 − 3,500 = 2,400.

16.

A club's sports material: opening stock ₹ 3,000; paid to suppliers ₹ 18,000; creditors for sports material – opening ₹ 2,000, closing ₹ 3,500; closing stock ₹ 4,000. Sports material consumed is:

Correct Answer: B [₹ 18,500]

Explanation:

Purchases 18,000 − 2,000 + 3,500 = 19,500; consumed 3,000 + 19,500 − 4,000 = 18,500.

17.

A bill dated 31 October 2025 is payable three months after date. Its due date is (no holiday in the way):

Correct Answer: B [3 February 2026]

Explanation:

31 January + 3 days of grace = 3 February.

18.

A bill of ₹ 25,000 held by Arun is dishonoured on the due date, and noting charges of ₹ 100 are paid. Arun debits the drawee's account with:

Correct Answer: A [₹ 25,100]

Explanation:

The drawee bears the noting charges: 25,000 + 100.

19.

Creditors' ledger totals: opening ₹ 36,000; credit purchases ₹ 1,20,000; payments ₹ 98,000; discount received ₹ 2,000; returns outward ₹ 3,000; bills payable accepted ₹ 15,000. Closing creditors are:

Correct Answer: D [₹ 38,000]

Explanation:

36,000 + 1,20,000 − 98,000 − 2,000 − 3,000 − 15,000 = 38,000.

20.

On the first day of each month a partner takes ₹ 2,000 out of the firm. Interest on these drawings is charged at 12% p.a. For the year it amounts to:

Correct Answer: C [₹ 1,560]

Explanation:

Drawings at the beginning of each month: average period 6.5 months; 24,000 × 12% × 6.5/12.

21.

Price rises from ₹ 40 to ₹ 44 and quantity supplied rises from 200 to 230 units. Elasticity of supply is:

Correct Answer: A [1.5]

Explanation:

Answer: 1.5. %ΔQs 15% ÷ %ΔP 10% = 1.5.

22.

A consumer is in equilibrium buying X (MU 40, price ₹ 8) and Y (price ₹ 6). The marginal utility of Y must be:

Correct Answer: C [30]

Explanation:

MUx/Px = MUy/Py → 5 = MUy/6 (equi-marginal utility).

23.

Two-quantity comparisonTotal product with 3 workers is 120 units and with 4 workers 152 units.
Quantity I: marginal product of the 4th worker Quantity II: average product of 4 workers

Correct Answer: B [Quantity I < Quantity II]

Explanation:

Answer: Quantity I < Quantity II. MP = 32; AP = 152 ÷ 4 = 38.

24.

For Q = A·L^0.7·K^0.5, both L and K are raised by 10%. Output rises by about:

Correct Answer: D [12.1%]

Explanation:

Output is multiplied by 1.1 0.7 + 0.5 = 1.1 1.2 ≈ 1.121 – increasing returns to scale.

25.

A competitive firm faces a price of ₹ 45; its minimum average variable cost is ₹ 50. In the short run it should:

Correct Answer: B [Shut down]

Explanation:

Price below minimum AVC → shutdown.

26.

In long-run equilibrium under perfect competition:

Correct Answer: A [Price equals minimum long-run average cost]

Explanation:

Free entry and exit remove supernormal profit, so P = MR = MC = minimum LAC.

27.

The classification of price discrimination into first, second and third degree is due to:

Correct Answer: C [A. C. Pigou]

Explanation:

A. C. Pigou, The Economics of Welfare (1920).

28.

GNP at market price ₹ 800 crore; net factor income from abroad ₹ 20 crore. GDP at market price is:

Correct Answer: B [₹ 780 crore]

Explanation:

Answer: ₹ 780 crore. GDP = GNP − NFIA.

29.

Reverse questionReal GDP is ₹ 1,000 lakh crore and the GDP deflator stands at 120. Nominal GDP is:

Correct Answer: D [₹ 1,200 lakh crore]

Explanation:

Nominal = real × deflator ÷ 100.

30.

In a district 25% of people are multidimensionally poor and their average intensity of deprivation is 44%. The MPI is:

Correct Answer: A [0.11]

Explanation:

Answer: 0.11. MPI = H × A.

31.

In the final Census 2011 tables (not the provisional ones), the overall literacy rate of India stood at:

Correct Answer: B [72.98%]

Explanation:

Final figures: 72.98% (male 80.88%, female 64.63%); 74.04% was the provisional figure (as on 20-10-2026, Census of India / MoSPI).

32.

In a town, 1,000 persons are aged 15 or above; 600 of them are in the labour force and 582 are employed. The unemployment rate (as a share of the labour force) is:

Correct Answer: C [3%]

Explanation:

Unemployed 18 ÷ labour force 600 × 100 = 3% (the labour-force participation rate would be 60%).

33.

Which official method put India's all-India poverty ratio for 2011-12 at 29.5%?

Correct Answer: D [The Rangarajan Expert Group method]

Explanation:

Rangarajan: 29.5%; Tendulkar: 21.9% (both for 2011-12).

34.

Using Fisher's equation MV = PT with M = ₹ 500 crore, V = 4 and T = 1,000 crore units, the price level P is:

Correct Answer: B [2]

Explanation:

Answer: 2. P = MV ÷ T = 2,000 ÷ 1,000.

35.

The RBI is the sole authority for issuing currency in India, except for:

Correct Answer: D [One-rupee notes and coins, which are issued by the Government]

Explanation:

Bank of issue: all notes except one-rupee notes; coins and one-rupee notes are issued by the Government of India.

36.

Fill in the blankOn 19 July 1969, ______ major commercial banks were nationalised.

Correct Answer: A [14]

Explanation:

14 banks on 19 July 1969; six more in 1980.

37.

Match the followingMatch the reform with the date it took effect:
P. GST two main rates (5% and 18%) Q. Four Labour Codes R. Income-tax Act, 2025
1. 1 April 2026 2. 21 November 2025 3. 22 September 2025

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

Explanation:

GST two main rates from 22 September 2025; Labour Codes from 21 November 2025; Income-tax Act, 2025 from 1 April 2026.

38.

Under the Income-tax Act, 2025, the separate terms 'previous year' and 'assessment year' are replaced by:

Correct Answer: B [Tax year]

Explanation:

The Income-tax Act, 2025 uses a single 'tax year'.

39.

The Annual Financial Statement (the Budget) is laid before Parliament under Article:

Correct Answer: C [112]

Explanation:

Article 112 – Annual Financial Statement; 110 – Money Bill; 266 – Consolidated Fund; 280 – Finance Commission.

40.

The corpus of the Contingency Fund of India (Article 267) is:

Correct Answer: A [₹ 30,000 crore]

Explanation:

Corpus ₹ 30,000 crore (as on 20-10-2026, Key to Budget Documents 2026).

41.

Revenue deficit ₹ 450 crore; grants for the creation of capital assets ₹ 120 crore. The effective revenue deficit is:

Correct Answer: D [₹ 330 crore]

Explanation:

ERD = RD − grants for creation of capital assets (ERD in the FRBM framework since 2012).

42.

Current account convertibility of the rupee was introduced in:

Correct Answer: A [August 1994]

Explanation:

August 1994 (IMF Article VIII status); a unified market rate came in March 1993.

43.

FEMA, 1999 replaced which earlier law?

Correct Answer: D [FERA, 1973]

Explanation:

FEMA, 1999 replaced FERA, 1973 – from control to management of foreign exchange.

44.

Tax revenue grows by 12% while GDP grows by 8%. Tax buoyancy is:

Correct Answer: C [1.5]

Explanation:

Buoyancy = % change in tax ÷ % change in GDP.

45.

Under Article 151, the CAG's reports relating to the accounts of the Union are submitted to:

Correct Answer: B [The President, who causes them to be laid before each House of Parliament]

Explanation:

Answer: The President, who causes them to be laid before each House of Parliament. Article 151(1).

46.

The Public Accounts Committee has 22 members. They come from:

Correct Answer: B [15 from the Lok Sabha and 7 from the Rajya Sabha]

Explanation:

15 members from the Lok Sabha and 7 from the Rajya Sabha.

47.

Under Article 281, the President lays every Finance Commission recommendation before Parliament together with:

Correct Answer: C [An explanatory memorandum on the action taken]

Explanation:

Answer: An explanatory memorandum on the action taken. Article 281.

48.

A State Finance Commission is constituted by the Governor under Articles:

Correct Answer: A [243-I and 243Y]

Explanation:

Article 243-I (Panchayats) and Article 243Y (Municipalities).

49.

UIDAI became a statutory authority on 12 July 2016 under the:

Correct Answer: D [Aadhaar Act, 2016]

Explanation:

The Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016.

50.

A supplier sells to a ministry through the Government e-Marketplace (GeM). This e-governance model is:

Correct Answer: C [G2B]

Explanation:

Government-to-Business (models G2C/G2B/G2G/G2E).

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