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. Land Account

B. Commission Received Account

C. Sundry Debtors Account

D. Bank Account

Answer: Option B

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 'One Person Company' (OPC) concept was introduced in India by:

A. Companies Act, 2013

B. Income Tax Act

C. GST Act

D. Companies Act, 1956

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Correct Answer: Option A

Explanation:
OPC was introduced by Companies Act, 2013 to allow single entrepreneurs to have corporate status.

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Question #2

The 'Investor Education and Protection Fund' (IEPF) is established under:

A. RBI Act

B. Income Tax Act

C. Companies Act, 2013

D. SEBI Act

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Correct Answer: Option C

Explanation:
IEPF is constituted under Section 125 of Companies Act, 2013.

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Question #3

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

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Correct Answer: Option B

Explanation:
BRS is prepared to reconcile the bank balance as per the cash book with the balance as per the bank statement (pass book).

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

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