Which of the following is an example of a nominal account? MCQ with Answer and Explanation

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Which of the following is an example of a nominal account?

A. Commission Received Account

B. Bank Account

C. Sundry Debtors Account

D. Land Account

Answer: Option A

Solution (By JKSSB Mock Tests)

Commission Received Account represents an income, which is a nominal account. The rule is 'Credit all incomes and gains'.

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

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Question #1

The 'Input Tax Credit' on capital goods under GST is available:

A. Spread over the useful life

B. Not allowed

C. 100% in the first year

D. Only on goods up to ₹5,000

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Correct Answer: Option C

Explanation:
ITC on capital goods can be availed fully in the year of purchase, except for certain blocked credits.

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Question #2

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?

A. Neither S1 nor S2

B. S1 only

C. S2 only

D. Both S1 and S2

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Correct Answer: Option D

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.

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Question #3

The 'Tax on Virtual Digital Assets' (VDAs) allows deduction of:

A. No deduction

B. Full cost with indexation

C. All expenses

D. Only cost of acquisition; no other deduction

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Correct Answer: Option D

Explanation:
Only cost of acquisition is allowed as deduction; no other expenses or indexation. Loss from VDA cannot be set off against other income.

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