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NEW in CGL 2026 · AAO & AAccO only

SSC CGL Tier-II Paper-III 2026 — Finance & Economics Syllabus, Pattern, Strategy

Paper-III is the new Tier-II paper introduced in CGL 2026 exclusively for candidates who opt for Assistant Audit Officer or Assistant Accounts Officer posts. It covers Finance & Accounts and Economics & Governance across 100 questions, 200 marks, and 120 minutes — with 0.5 negative marking.

Paper-III pattern

Total Questions

100

Total Marks

200

Duration

120 minutes

Negative Marking

0.5 per wrong answer

Part A: Finance & Accounts

40 questions · 80 marks

  • Financial Accounting — concepts, conventions, and principles
  • Accounting of Sole Proprietorships, Partnerships, Companies
  • Company law basics — share capital, debentures, final accounts
  • Rectification of errors, trial balance, depreciation, provisions
  • Budgetary control and internal audit concepts

Part B: Economics & Governance

60 questions · 120 marks

  • Comptroller and Auditor General of India — constitutional provisions, functions
  • Finance Commission — composition, role, terms of reference
  • Theory of demand and supply, price elasticity, consumer behaviour
  • Indian economy — GDP, inflation, monetary and fiscal policy
  • Economic planning — NITI Aayog, five-year plans, SDGs
  • Budget — Union budget process, capital vs. revenue expenditure
  • Capital market — SEBI, stock exchanges, corporate bonds

Preparation strategy

  • 1Part B (Economics) carries 60 marks vs. Part A (40 marks) — allocate prep time proportionally: 60% on Economics.
  • 2C&AG and Finance Commission questions are almost certain — these are high-yield topics for guaranteed marks.
  • 3Part A accounting questions are mechanical — if you're a B.Com student, Part A should be near-full marks with revision only.
  • 4Sectional timer applies: Paper-III is one single timed block (120 min for 100 Qs) — no intra-paper timer per part.
  • 5Negative marking is 0.5 per wrong answer — attempt all questions you know; avoid guessing on economics calculations.

Recommended books

Essential

NCERT Class 11 & 12 Accountancy (Parts 1 & 2)

Covers Part A fundamentals — double entry, final accounts, partnership, company accounts.

Essential

NCERT Class 11 & 12 Economics (Parts 1 & 2)

Covers Part B micro and macro economics from first principles.

Essential

Indian Economy — Ramesh Singh (McGraw Hill)

Comprehensive coverage of Indian economy topics: GDP, inflation, monetary policy, banking, fiscal policy, and recent developments. Widely used for UPSC CSE Prelims — same topics tested in Paper-III.

Recommended

Indian Polity — M. Laxmikanth

C&AG's constitutional provisions, Finance Commission, and audit-related governance questions are covered in Laxmikanth. Especially chapters on constitutional bodies.

Sample questions

Authored sample stubs — representative of the style and level expected in Paper-III.

Part AFinancial Accounting Principles

Which of the following accounting concepts requires that a business should be assumed to be continuing its operations indefinitely?

  1. A.Matching Concept
  2. B.Going Concern Concept✓ Correct
  3. C.Accrual Concept
  4. D.Prudence Concept

Explanation

The Going Concern Concept assumes the business will continue operations for the foreseeable future, justifying carrying assets at historical cost rather than liquidation value.

Part APartnership Accounts

In a partnership firm, the interest on partners' capitals is charged to — in the absence of a partnership deed.

  1. A.Profit & Loss Account at 6% p.a.
  2. B.Profit & Loss Account at 12% p.a.
  3. C.No interest is allowed in the absence of a partnership deed✓ Correct
  4. D.Partners' Capital Account at the bank rate

Explanation

Under the Indian Partnership Act 1932, in the absence of a partnership deed, no interest is allowed on capital. The Act provides a default framework that denies interest on capital unless expressly agreed.

Part ADepreciation

Under the Written-Down Value (WDV) method, depreciation in later years compared to earlier years is —

  1. A.Higher
  2. B.Lower✓ Correct
  3. C.Equal
  4. D.Zero, as assets are fully depreciated

Explanation

Under WDV, depreciation is charged as a fixed % of the opening book value each year. Since book value decreases each year, the absolute amount of depreciation also decreases — so later years have lower depreciation than earlier years.

Part BC&AG of India

The Comptroller and Auditor General of India is appointed by —

  1. A.The Parliament of India by a resolution
  2. B.The President of India✓ Correct
  3. C.The Council of Ministers on the recommendation of the Prime Minister
  4. D.The Supreme Court of India

Explanation

Article 148 of the Constitution provides that C&AG is appointed by the President of India. Removal requires an address by each House of Parliament — the same procedure as for a Supreme Court judge, ensuring independence.

Part BIndian Economy — Monetary Policy

Which of the following is NOT a quantitative instrument of monetary policy used by the Reserve Bank of India?

  1. A.Cash Reserve Ratio (CRR)
  2. B.Statutory Liquidity Ratio (SLR)
  3. C.Moral Suasion✓ Correct
  4. D.Repo Rate

Explanation

Moral Suasion is a qualitative (selective) credit control instrument — the RBI persuades or advises banks without a formal directive. CRR, SLR, and Repo Rate are quantitative tools that directly affect the volume of credit.

Posts that require Paper-III

Assistant Audit Officer (Central)Assistant Audit Officer (State)Assistant Accounts Officer (State)