Assertion (A): A Bank Reconciliation Statement is a part of the books of accounts. Reason (R): It is prepared to find out the correct bank balance. Choose the correct option: MCQ with Answer and Explanation

Assertion (A): A Bank Reconciliation Statement is a part of the books of accounts. Reason (R): It is prepared to find out the correct bank balance. Choose the correct option:
A. A is false but R is true.
B. Both A and R are true but R is not the correct explanation of A.
C. Both A and R are true and R is the correct explanation of A.
D. A is true but R is false.
Answer: Option A
Solution (By JKSSB Mock Tests)
BRS is not a part of books of accounts; it's a memorandum statement. R is true.

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Practice More Accountancy and Book Keeping Questions

Question #1
A direct collection of a dividend by the bank on behalf of the customer, not recorded in the Cash Book, will require:
A. Addition to Pass Book balance to reach Cash Book balance
B. No adjustment in BRS
C. Deduction from Pass Book balance to reach Cash Book balance
D. Deduction from Cash Book balance

Correct Answer: Option C


Explanation:
The collection increases the Pass Book balance. To reach the un-updated Cash Book balance, this amount must be deducted from the Pass Book.

Question #2
A debit balance in a personal account of a creditor indicates:
A. He has become debtor
B. Amount receivable from him
C. Both B and C
D. Amount payable to him

Correct Answer: Option C


Explanation:
A creditor account with debit balance means the firm has paid excess or he owes money, so he is a debtor.

Question #3
X and Y are partners sharing profits 3:2. Z is admitted for 1/4th share. New profit-sharing ratio will be:
A. 9:3:4
B. 3:2:1
C. 6:4:5
D. 9:6:5

Correct Answer: Option D


Explanation:
Remaining share = 1 - 1/4 = 3/4 distributed in 3:2, so X = 3/4 * 3/5 = 9/20, Y = 3/4 * 2/5 = 6/20, Z = 5/20. Ratio = 9:6:5.