When preparing a BRS starting with an overdraft as per the Pass Book, checks deposited but not yet cleared should be: MCQ with Answer and Explanation

When preparing a BRS starting with an overdraft as per the Pass Book, checks deposited but not yet cleared should be:
A. Added
B. Ignored
C. Divided
D. Deducted
Answer: Option A
Solution (By JKSSB Mock Tests)
Deposited checks lower the Cash Book overdraft. To make the Pass Book overdraft match the lower Cash Book overdraft, the amount must be added (reducing the negative balance).

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Practice More Accountancy and Book Keeping Questions

Question #1
Deductions for investments in PPF, LIC, and ELSS fall under which section of the Income Tax Act?
A. Section 80C
B. Section 80G
C. Section 24(b)
D. Section 80D

Correct Answer: Option A


Explanation:
Section 80C allows a maximum deduction of Rs 1.5 Lakhs for specified investments and expenditures.

Question #2
If the Trial Balance does not tally, the difference is temporarily transferred to:
A. Drawings Account
B. Suspense Account
C. Capital Account
D. Profit & Loss Account

Correct Answer: Option B


Explanation:
A Suspense Account is opened temporarily to bridge the gap in a mismatched trial balance until the errors are located and rectified.

Question #3
In the Indian Financial Management System, the Consolidated Fund of India is operated by:
A. The Prime Minister
B. The President of India
C. The Finance Minister
D. The RBI Governor

Correct Answer: Option B


Explanation:
All revenues received by the Government of India and all loans raised are credited to the Consolidated Fund, which is operated by the President.