The primary purpose of preparing a Bank Reconciliation Statement (BRS) is to: MCQ with Answer and Explanation

The primary purpose of preparing a Bank Reconciliation Statement (BRS) is to:
A. Calculate bank interest
B. Identify causes of difference between cash book and pass book balances
C. Determine the net profit
D. Correct errors in the ledger
Answer: Option B
Solution (By JKSSB Mock Tests)
BRS is prepared to reconcile the bank balance as per the cash book with the balance as per the bank statement (pass book).

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Practice More Accountancy and Book Keeping Questions

Question #1
Under the Companies Act 2013, the 'Independent Directors' must hold a special training as per Section 149. Who is exempted from this training requirement?
A. No one is exempted
B. A person who has been a director for more than 10 years
C. A person who has already undergone the training or is a whole-time director in a listed company
D. A qualified Chartered Accountant or Company Secretary

Correct Answer: Option C


Explanation:
The Companies Act exempts individuals who have already undergone the prescribed independent director training, or those who are already serving as whole-time directors in listed companies, from the mandatory training requirement.

Question #2
S1: Under GST, the 'Input Tax Credit' (ITC) on goods lost, stolen, destroyed, or written off is not available. S2: ITC on goods used for personal consumption is fully available. Which statement(s) is/are correct?
A. Both S1 and S2
B. S2 only
C. Neither S1 nor S2
D. S1 only

Correct Answer: Option D


Explanation:
S1 is correct as per Section 17(5) of the CGST Act; ITC is blocked for lost, stolen, destroyed, or written-off goods. S2 is incorrect because ITC is explicitly blocked for goods used for personal consumption.

Question #3
In Social Accounting, which of the following is considered an internal stakeholder?
A. Government
B. Employees
C. Environmental Agencies
D. Local Community

Correct Answer: Option B


Explanation:
Employees work within the organization and are directly involved in its operations, classifying them as internal stakeholders.