In a bank reconciliation statement, an overdraft as per the cash book will be increased by: MCQ with Answer and Explanation

In a bank reconciliation statement, an overdraft as per the cash book will be increased by:
A. Cheques deposited but not credited
B. Interest allowed by bank
C. Cheques issued but not presented for payment
D. Direct deposit by customer
Answer: Option C
Solution (By JKSSB Mock Tests)
Cheques issued but not presented reduce the bank balance, so they are added to the overdraft balance as per the cash book to reconcile with the pass book.

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Practice More Accountancy and Book Keeping Questions

Question #1
The 'Cash Basis' of accounting is primarily used by:
A. Only non-profits
B. All entities
C. Government and small professionals
D. Large companies

Correct Answer: Option C


Explanation:
Government accounts are cash-based; some small professionals may use it.

Question #2
Input Tax Credit under GST can be claimed on:
A. Goods used for business furtherance
B. Membership of club
C. Motor vehicles for personal use
D. Food and beverages for employees

Correct Answer: Option A


Explanation:
ITC is available only for inputs used in the course of business, subject to conditions in CGST Act.

Question #3
The 'Transfer Pricing' regulations in India are contained in:
A. GST Act
B. SEBI Act
C. Companies Act
D. Sections 92 to 92F of Income Tax Act

Correct Answer: Option D


Explanation:
Transfer pricing provisions apply to international transactions and specified domestic transactions.