SSC CGL Mock – Paper III Finance & Economics Mock Test 03 – Part A · Finance & Accounts | Online Quiz

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SSC CGL Mock – Paper III Finance & Economics Mock Test 03 – Part A · Finance & Accounts – 40 questions, subject: Full Mock Tests. 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.

Situation-basedArasu Traders' credit and cash sales for the year were ₹ 8,40,000. In addition, on 25 March it sent goods costing ₹ 30,000 to customers on sale or return, invoiced at ₹ 36,000; by 31 March customers had approved goods invoiced at ₹ 12,000. What sales figure is shown for the year?

Correct Answer: B [₹ 8,52,000]

Explanation:

Goods on approval become sales only when approved: ₹ 8,40,000 + ₹ 12,000 = ₹ 8,52,000.

Statement-basedConsider the statements about AS 1:
I. Disclosing an accounting policy can correct an inappropriate treatment of an item in the accounts.
II. If the accrual assumption is not followed, that fact must be disclosed.
Which of the statements is/are correct?

Correct Answer: B [Only II]

Explanation:

Disclosure cannot remedy a wrong treatment; an assumption that is not followed must be disclosed.

Pick the statement that does NOT describe a weakness of financial accounting.

Correct Answer: A [It keeps a systematic record of business transactions]

Explanation:

Keeping a systematic record is an objective of accounting; the other three are its limitations.

CalculationSales ₹ 9,60,000; cost of goods sold ₹ 6,10,000; salaries paid ₹ 1,32,000, of which ₹ 12,000 is for next year; insurance for the year ₹ 18,000, of which only ₹ 13,500 has been paid; other expenses paid ₹ 41,000. Profit on the accrual basis is

Correct Answer: C [₹ 1,71,000]

Explanation:

₹ 9,60,000 − ₹ 6,10,000 − salaries ₹ 1,20,000 − insurance ₹ 18,000 − ₹ 41,000 = ₹ 1,71,000 (matching: this year's expenses only, paid or not).

Accounting information that is free from error and bias and can be verified from evidence has which quality?

Correct Answer: D [Reliability]

Explanation:

Reliable information is free from error and bias and verifiable.

Cash of ₹ 25,000 is withdrawn from the bank for office use. In a triple column cash book this is

Correct Answer: B [entered on both sides, marked 'C', and not posted to the ledger]

Explanation:

A transaction between cash and bank is a contra entry, shown on both sides and marked C.

CalculationA triple column cash book opens with cash ₹ 18,000 and bank ₹ 62,000. During the week: cash sales ₹ 24,000; cash deposited into bank ₹ 30,000; a customer's cheque of ₹ 15,700 received in full settlement of ₹ 16,000 and banked the same day; a supplier paid by cheque ₹ 21,000; cash withdrawn from bank for office ₹ 8,000; wages paid in cash ₹ 9,500. The closing bank balance is

Correct Answer: A [₹ 78,700]

Explanation:

Bank: ₹ 62,000 + ₹ 30,000 + ₹ 15,700 − ₹ 21,000 − ₹ 8,000 = ₹ 78,700 (cash balance ₹ 10,500).

CalculationA proprietor, who began the year on 1 April with ₹ 5,00,000, introduced a further ₹ 1,20,000 on 1 July. If 8% p.a. interest on capital is allowed, how much is credited to him for the year to 31 March?

Correct Answer: D [₹ 47,200]

Explanation:

₹ 5,00,000 × 8% = ₹ 40,000; ₹ 1,20,000 × 8% × 9/12 = ₹ 7,200; total ₹ 47,200.

CalculationThe insurer settles ₹ 27,500 for stock costing ₹ 36,000 lost in a warehouse fire. In a single combined journal entry, what amount is debited to Loss by Fire Account?

Correct Answer: C [₹ 8,500]

Explanation:

Loss by Fire ₹ 8,500 + Insurance Claim ₹ 27,500, To Purchases ₹ 36,000 (B12 ch 3).

10.

When goods are returned to a supplier, the document sent by the buyer to the supplier is a

Correct Answer: C [debit note]

Explanation:

The buyer sends a debit note for goods returned; the seller sends a credit note.

11.

CalculationCash book (bank column) shows ₹ 64,300 debit. Cheques issued ₹ 18,000 are not yet presented; cheques deposited ₹ 9,700 are not yet credited; the bank has debited charges of ₹ 450 and an insurance premium of ₹ 6,200 paid under a standing instruction, and has credited a direct deposit by a customer of ₹ 12,500 and interest of ₹ 980. What is the balance of the amended cash book?

Correct Answer: A [₹ 71,130]

Explanation:

Amend only for items the bank knows: ₹ 64,300 − ₹ 450 + ₹ 12,500 − ₹ 6,200 + ₹ 980 = ₹ 71,130; timing items stay in the BRS (pass book ₹ 79,430).

12.

CalculationThe cash book shows a debit balance of ₹ 27,600 and the pass book a credit balance of ₹ 35,850. Cheques issued ₹ 13,400 have not been presented and bank charges of ₹ 150 are not in the cash book. The only other difference is cheques deposited but not yet credited. Their amount is

Correct Answer: D [₹ 5,000]

Explanation:

₹ 27,600 + ₹ 13,400 − x − ₹ 150 = ₹ 35,850 → x = ₹ 5,000.

13.

CalculationOn 28 March cheques of ₹ 8,000, ₹ 13,500 and ₹ 4,200 were issued; only the ₹ 13,500 cheque was paid by the bank before 31 March. Cheques of ₹ 9,400 and ₹ 6,600 were deposited on 30 March; only ₹ 6,600 was credited before 31 March. The cash book shows ₹ 41,000 (debit) on 31 March. The pass book balance is

Correct Answer: B [₹ 43,800]

Explanation:

Only uncleared items reconcile: ₹ 41,000 + (₹ 8,000 + ₹ 4,200) − ₹ 9,400 = ₹ 43,800.

14.

CalculationThe cash book shows ₹ 19,750 (debit). Cheques issued ₹ 3,000 have not been presented, and the bank has wrongly debited the firm's account with ₹ 1,800 that belongs to another customer. The pass book shows

Correct Answer: C [₹ 20,950]

Explanation:

₹ 19,750 + ₹ 3,000 − ₹ 1,800 (bank's wrong debit lowers the pass book) = ₹ 20,950; bank errors are not entered in the cash book.

15.

CalculationThe draft net profit of Jothi Traders is ₹ 1,48,000. Errors found: (i) machinery bought for ₹ 25,000 was debited to Purchases Account; (ii) commission received ₹ 2,400 was posted to the debit side of Commission Account; (iii) goods of ₹ 5,000 returned by a customer were entered in the Purchases Returns Book. The corrected net profit is

Correct Answer: B [₹ 1,67,800]

Explanation:

+25,000 (Purchases credited) + 4,800 (twice the commission) − 10,000 (Sales Returns and Purchases Returns both debited 5,000) = +19,800; ₹ 1,48,000 → ₹ 1,67,800.

16.

Goods sold on credit to Divya for ₹ 3,800 were entered in the Purchases Book. The rectifying entry is

Correct Answer: A [Divya A/c Dr ₹ 7,600; To Purchases A/c ₹ 3,800; To Sales A/c ₹ 3,800]

Explanation:

Was: Purchases Dr, To Divya 3,800.

17.

Statement-basedConsider the statements about compensating errors:
I. They leave the trial balance in agreement.
II. They never affect the net profit.
Which of the statements is/are correct?

Correct Answer: A [Only I]

Explanation:

Errors that cancel each other keep the TB in agreement; but if, say, Wages is overcast by ₹ 700 and a creditor's account is also overcast by ₹ 700, the TB agrees while profit is understated by ₹ 700.

18.

An error in a nominal account of last year is discovered after last year's final accounts were prepared. It is corrected through

Correct Answer: D [a Profit and Loss Adjustment Account]

Explanation:

Errors found after the final accounts are corrected through a Profit and Loss Adjustment Account.

19.

CalculationFind the first-year charge under the units-of-production method: cost ₹ 4,80,000, scrap value ₹ 30,000, total estimated running life 90,000 machine-hours, hours run in year one 13,500.

Correct Answer: C [₹ 67,500]

Explanation:

Rate = ₹ 4,50,000 ÷ 90,000 = ₹ 5 per hour; × 13,500 = ₹ 67,500.

20.

CalculationA machine costing ₹ 1,20,000 is depreciated at 20% p.a. on the written down value. It is sold at the end of the third year for ₹ 58,000. The result of the sale is

Correct Answer: B [Loss ₹ 3,440]

Explanation:

Book value = ₹ 1,20,000 × 0.8³ = ₹ 61,440; ₹ 58,000 − ₹ 61,440 = Loss ₹ 3,440.

21.

CalculationThe Provision for Depreciation Account shows an opening balance of ₹ 86,000. This year's charge is ₹ 31,000, and a machine on which accumulated depreciation was ₹ 24,500 was sold. The closing balance is

Correct Answer: A [₹ 92,500]

Explanation:

₹ 86,000 + ₹ 31,000 − ₹ 24,500 (transferred to Asset Disposal A/c) = ₹ 92,500.

22.

CalculationA machine costing ₹ 2,00,000 was depreciated at 10% p.a. on cost (straight line) for four years. From the fifth year the firm changes to 15% p.a. on the written down value. Under AS 10, depreciation for the fifth year is

Correct Answer: D [₹ 18,000]

Explanation:

A change of method is a change in estimate, applied prospectively: 15% of the book value ₹ 1,20,000 = ₹ 18,000.

23.

A company spends heavily on advertising to launch a new product. Under AS 26, this expenditure is

Correct Answer: B [recognised as an expense when incurred]

Explanation:

Expenditure on advertising and promotional activities is recognised as an expense when incurred.

24.

CalculationStores ledger: opening 100 units @ ₹ 20; received 300 units @ ₹ 24; issued 200 units; received 200 units @ ₹ 28; issued 300 units. Using the moving (running) average method, the cost of the second issue is

Correct Answer: C [₹ 7,650]

Explanation:

After the first receipt the rate is ₹ 23; 200 units issued leave 200 @ ₹ 23 = ₹ 4,600; after the second receipt (4,600 + 5,600) ÷ 400 = ₹ 25.50; 300 × 25.50 = ₹ 7,650.

25.

CalculationA fire destroyed a trader's godown. Opening stock ₹ 75,000; purchases up to the fire ₹ 3,10,000; sales up to the fire ₹ 4,40,000; the usual gross profit is 30% of sales; goods saved worth ₹ 12,000. The loss of stock is

Correct Answer: A [₹ 65,000]

Explanation:

Cost of sales = 70% of ₹ 4,40,000 = ₹ 3,08,000; stock at the date of fire = ₹ 75,000 + ₹ 3,10,000 − ₹ 3,08,000 = ₹ 77,000; less salvage ₹ 12,000 = ₹ 65,000.

26.

Situation-basedRaw material costing ₹ 80,000 now has a replacement cost of ₹ 68,000. The finished product made from it costs ₹ 2,10,000 and is expected to sell for ₹ 2,60,000. At what value is the raw material shown?

Correct Answer: D [₹ 80,000]

Explanation:

Materials are not written down below cost if the finished product will sell at or above cost.

27.

CalculationPhysical stock on 31 March was ₹ 2,40,000. Not counted: goods sent to customers on approval, invoiced at ₹ 18,000 (cost plus 20%), not yet approved, and goods in transit bought on terms that passed ownership, ₹ 11,000. Counted by mistake: goods already sold and awaiting delivery, cost ₹ 7,500, and goods held for a consignor, ₹ 6,000. Correct closing stock is

Correct Answer: B [₹ 2,52,500]

Explanation:

₹ 2,40,000 + ₹ 15,000 (approval goods at cost) + ₹ 11,000 − ₹ 7,500 − ₹ 6,000 = ₹ 2,52,500.

28.

CalculationMaterials consumed ₹ 2,40,000; direct wages ₹ 1,10,000; direct expenses ₹ 18,000; factory overheads ₹ 92,000; opening work-in-progress ₹ 26,000; closing work-in-progress ₹ 34,000; sale of factory scrap ₹ 4,000. The cost of goods produced (factory cost) is

Correct Answer: A [₹ 4,48,000]

Explanation:

Prime cost ₹ 3,68,000 + overheads ₹ 92,000 + opening WIP ₹ 26,000 − closing WIP ₹ 34,000 − scrap ₹ 4,000 = ₹ 4,48,000.

29.

CalculationKavi and Mani share profits 3 : 2. Capitals: Kavi ₹ 4,00,000, Mani ₹ 2,50,000; interest on capital 8% p.a.; Mani's salary ₹ 2,500 a month; interest on drawings: Kavi ₹ 3,200, Mani ₹ 1,800; 10% of the net profit is transferred to general reserve. Net profit for the year is ₹ 2,10,000. Kavi's share of the divisible profit is

Correct Answer: D [₹ 67,200]

Explanation:

Divisible = ₹ 2,10,000 + ₹ 5,000 − ₹ 52,000 − ₹ 30,000 − ₹ 21,000 = ₹ 1,12,000; Kavi 3/5 = ₹ 67,200.

30.

CalculationStock costing ₹ 48,000 was destroyed by fire; the insurer admitted 70% of the loss. The amount debited to the Profit and Loss Account is

Correct Answer: C [₹ 14,400]

Explanation:

Trading A/c is credited ₹ 48,000; insurance claim ₹ 33,600 is an asset; the uninsured part ₹ 14,400 goes to P&L (B12 ch 9).

31.

CalculationA trial balance shows adjusted purchases ₹ 3,12,000, closing stock ₹ 58,000 (inside the trial balance), carriage inwards ₹ 6,000 and sales ₹ 4,10,000; there is no opening stock line. The gross profit is

Correct Answer: D [₹ 92,000]

Explanation:

Adjusted purchases already deduct closing stock, so it is shown only in the Balance Sheet: ₹ 4,10,000 − (₹ 3,12,000 + ₹ 6,000) = ₹ 92,000.

32.

A partnership deed is silent on interest on capital and salaries to partners. In preparing the P&L Appropriation Account,

Correct Answer: A [neither interest on capital nor salary is allowed to any partner]

Explanation:

Partners get interest on capital and salary only if the deed provides.

33.

CalculationA Tournament Fund of ₹ 30,000 received further donations of ₹ 6,000 for the tournament; tournament expenses were ₹ 41,500. The correct treatment is

Correct Answer: B [close the fund and debit the excess of ₹ 5,500 to the Income and Expenditure Account]

Explanation:

Fund + donations = ₹ 36,000 < expenses ₹ 41,500; the excess ₹ 5,500 is the club's general cost (B12 ch 10, Fund Gate).

34.

CalculationA hospital paid salaries of ₹ 1,86,000 during the year, including ₹ 12,000 outstanding from last year; salaries of ₹ 15,500 are outstanding at the end of this year. Salaries shown in the Income and Expenditure Account are

Correct Answer: C [₹ 1,89,500]

Explanation:

₹ 1,86,000 − ₹ 12,000 + ₹ 15,500 = ₹ 1,89,500.

35.

Entrance fees of ₹ 18,000 received by a club, with no instruction in the question, are usually

Correct Answer: A [treated as revenue income in the Income and Expenditure Account]

Explanation:

Entrance fees are usually revenue unless the question directs capitalisation.

36.

CalculationA society's Receipts and Payments Account shows a closing cash balance of ₹ 8,750; total receipts during the year (excluding the opening balance) were ₹ 2,31,400 and total payments ₹ 2,46,900. The opening cash balance was

Correct Answer: C [₹ 24,250]

Explanation:

Opening = closing + payments − receipts = ₹ 8,750 + ₹ 2,46,900 − ₹ 2,31,400 = ₹ 24,250.

37.

A bill dated 16 February 2026 is payable 90 days after date. Sundays and the national holidays of 26 January, 15 August and 2 October are the only holidays. Its due date is

Correct Answer: B [20 May 2026]

Explanation:

Excluding the day of drawing, 90 days end on 17 May 2026; + 3 days of grace = 20 May 2026.

38.

CalculationGopal's acceptance for ₹ 30,000 is dishonoured and ₹ 150 is spent on noting. He hands over ₹ 10,150 in cash and, for what remains plus 15% p.a. interest for 3 months, signs a fresh acceptance of

Correct Answer: D [₹ 20,750]

Explanation:

Balance ₹ 30,150 − ₹ 10,150 = ₹ 20,000; interest ₹ 20,000 × 15 × 3 ÷ 1,200 = ₹ 750; new bill ₹ 20,750.

39.

CalculationCreditors' ledger figures: opening balances ₹ 64,000; credit purchases ₹ 2,80,000; cash purchases ₹ 35,000; returns outward ₹ 5,500; cash paid to creditors ₹ 2,40,000; discount received ₹ 4,500; bills payable accepted ₹ 28,000; a debtor's balance of ₹ 6,000 set off against his account in the creditors' ledger. The closing balance of the Creditors' Ledger Adjustment Account is

Correct Answer: D [₹ 60,000]

Explanation:

64,000 + 2,80,000 − 5,500 − 2,40,000 − 4,500 − 28,000 − 6,000 = ₹ 60,000.

40.

A customer who is also a supplier has his debit balance of ₹ 5,000 set off against his account in the creditors' ledger. In the control accounts this

Correct Answer: B [reduces both the Debtors' and the Creditors' Ledger Adjustment Accounts by ₹ 5,000]

Explanation:

Answer: reduces both the Debtors' and the Creditors' Ledger Adjustment Accounts by ₹ 5,000. Entry: Creditors' Ledger Adj.

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