S1: Bank Reconciliation Statement is prepared by the bank. S2: Bank Reconciliation Statement is prepared on a specific date. Which statement(s) is/are correct? MCQ with Answer and Explanation
S1: Bank Reconciliation Statement is prepared by the bank. S2: Bank Reconciliation Statement is prepared on a specific date. Which statement(s) is/are correct?
A. S2 only
B. Neither S1 nor S2
C. Both S1 and S2
D. S1 only
Answer: Option A
Solution (By JKSSB Mock Tests)
BRS is prepared by the account holder (the customer), not the bank. It is prepared for a specific date to reconcile the balances as per the Cash Book and the Pass Book on that day. S1 is incorrect, S2 is correct.
S1: Under Ind AS 10, events after the reporting period are classified as adjusting and non-adjusting events. S2: If a customer of a company goes bankrupt after the reporting period due to a sudden natural disaster, it is an adjusting event. Which statement(s) is/are correct?
Explanation:
S1 is correct. S2 is incorrect because a bankruptcy due to a sudden natural disaster after the reporting period is a condition that arose *after* the reporting period, making it a non-adjusting event. Adjusting events relate to conditions that existed *at* the reporting period date.
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