When a trial balance does not tally, the difference is transferred to: MCQ with Answer and Explanation

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When a trial balance does not tally, the difference is transferred to:

A. Suspense account

B. Capital account

C. Drawings account

D. Profit and Loss account

Answer: Option A

Solution (By JKSSB Mock Tests)

A suspense account is opened to temporarily park the difference.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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Question #1

The 'Section 269ST' prohibits:

A. All cash transactions

B. Receipt of ₹2 lakh or more in cash from a person in a day or for a single transaction or related transactions

C. Cash payment above ₹10,000

D. All digital payments

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Correct Answer: Option B

Explanation:
Section 269ST restricts cash receipt of ₹2 lakh or more.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #2

The 'Accounting Equation' remains intact under:

A. Cash system

B. Single entry only

C. Double entry system

D. All systems

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Correct Answer: Option C

Explanation:
Double entry system always maintains the balance of accounting equation. Single entry does not.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

Question #3

In India, the 'Fiscal Responsibility and Budget Management (FRBM) Act' aims to:

A. Increase government borrowing

B. Eliminate all taxes

C. Reduce fiscal deficit and improve fiscal discipline

D. Increase fiscal deficit

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Correct Answer: Option C

Explanation:
FRBM Act sets targets for fiscal deficit and debt to ensure fiscal prudence.

This question belongs to: Accountancy and Statistics Accountancy and Book Keeping

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