What is an 'amended cash book' in the context of BRS? MCQ with Answer and Explanation

What is an 'amended cash book' in the context of BRS?
A. A cash book used only for petty expenses
B. A cash book updated with missing transactions and rectifications before preparing BRS
C. A cash book updated for bank errors
D. A cash book prepared by the bank
Answer: Option B
Solution (By JKSSB Mock Tests)
An amended cash book adjusts for items like direct deposits, bank charges, and clerical errors in the cash book before reconciling timing differences.

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Practice More Accountancy and Book Keeping Questions

Question #1
'AS 9' pertains to:
A. Depreciation
B. Taxes on income
C. Inventories
D. Revenue Recognition

Correct Answer: Option D


Explanation:
AS 9 Revenue Recognition provides guidance on when to recognize revenue.

Question #2
The 'Cryptocurrency' as per Indian laws is:
A. Not considered legal tender but taxed
B. Only allowed for banks
C. Banned completely
D. Legal tender

Correct Answer: Option A


Explanation:
Cryptocurrencies are not legal tender in India but gains are taxed.

Question #3
Under the Income Tax Act, if a taxpayer incurs a short-term capital loss of ₹2,00,000 and a long-term capital gain of ₹1,50,000 in the same year, what is the net taxable capital gain?
A. ₹50,000 (Short-term)
B. Nil
C. ₹50,000 (Long-term)
D. ₹3,50,000

Correct Answer: Option B


Explanation:
Short-term capital loss can be set off against both STCG and LTCG. Here, the STCL of ₹2,00,000 is set off against the LTCG of ₹1,50,000. The remaining STCL of ₹50,000 is carried forward. The net taxable capital gain for the year is Nil.