S1: Bank Reconciliation Statement is prepared to find the causes of difference between Cash Book and Pass Book. S2: BRS is prepared on a specific date. Which statement(s) is/are correct?
Explanation:
The primary objective of BRS is to identify and explain the reasons for the difference in balances between the Cash Book and the Bank Pass Book. It is always prepared for a specific date to compare the balances on that day. Both are correct.
Explanation:
Interest on capital is an appropriation of profit, not a charge against profit. Therefore, it is only allowed if the firm makes a profit. If there is a loss, it is not allowed. R correctly explains A.
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