Showing posts with label Bank Reconciliation. Show all posts

05 April 2026

📘 Bank Reconciliation Statement (BRS) – 100 MCQs

Posted by Bhupendra Lad with No comments

📘 Bank Reconciliation Statement (BRS) – 100 MCQs

1–25: Core Concepts (Conceptual Traps)

Bank Reconciliation Statement is prepared to:
A. Find profit
B. Match Cash Book & Pass Book
C. Record transactions
D. Calculate tax
Answer: B
BRS is prepared by:
A. Bank
B. Business
C. Government
D. Auditor
Answer: B
BRS is prepared on:
A. Daily basis
B. Weekly
C. Periodically
D. Never
Answer: C
Pass Book is maintained by:
A. Customer
B. Bank
C. Auditor
D. Owner
Answer: B
Cash Book is maintained by:
A. Bank
B. Customer
C. Government
D. Auditor
Answer: B
Overdraft balance means:
A. Positive balance
B. Negative balance
C. Zero balance
D. Fixed balance
Answer: B
Debit balance in Cash Book indicates:
A. Overdraft
B. Bank balance
C. Loan
D. Expense
Answer: B
Credit balance in Pass Book indicates:
A. Overdraft
B. Bank balance
C. Loan
D. Expense
Answer: B
BRS is a:
A. Ledger
B. Statement
C. Account
D. Journal
Answer: B
BRS is prepared to find:
A. Errors
B. Differences
C. Both
D. None
Answer: C
Cheque issued but not presented causes:
A. Increase in Pass Book
B. Difference
C. No effect
D. Profit
Answer: B
Cheque deposited but not cleared causes:
A. Agreement
B. Difference
C. Profit
D. Loss
Answer: B
Bank charges appear first in:
A. Cash Book
B. Pass Book
C. Ledger
D. Journal
Answer: B
Interest credited by bank appears first in:
A. Cash Book
B. Pass Book
C. Ledger
D. Journal
Answer: B
Direct payment by bank reduces:
A. Cash Book
B. Pass Book
C. Profit
D. Asset
Answer: B
BRS helps in detecting:
A. Fraud
B. Errors
C. Omissions
D. All
Answer: D
Pass Book is copy of:
A. Cash Book
B. Bank ledger
C. Journal
D. Trial balance
Answer: B
Cash Book bank column is:
A. Personal
B. Real
C. Both
D. None
Answer: C
BRS is prepared at:
A. Year end only
B. Anytime
C. Month end usually
D. Never
Answer: C
BRS ensures:
A. Accuracy
B. Profit
C. Tax
D. None
Answer: A

Starting point of BRS can be:
A. Cash Book
B. Pass Book
C. Both
D. None
Answer: C
If cheque issued ₹5,000 not presented → add to Cash Book balance?
A. Yes
B. No
C. Depends
D. None
Answer: A
Cheque deposited ₹10,000 not cleared → deduct from Cash Book?
A. Yes
B. No
C. Depends
D. None
Answer: A
Bank charges ₹500 →
A. Add
B. Deduct
C. Ignore
D. Multiply
Answer: B
Interest credited ₹1,000 →
A. Add
B. Deduct
C. Ignore
D. Multiply
Answer: A
Direct deposit by customer →
A. Add
B. Deduct
C. Ignore
D. None
Answer: A
Direct payment by bank →
A. Add
B. Deduct
C. Ignore
D. None
Answer: B
If starting with Pass Book, opposite rules apply:
A. True
B. False
C. Sometimes
D. None
Answer: A
Debit balance of Cash Book ₹20,000, cheque issued ₹5,000 not presented → adjusted =
A. 15,000
B. 25,000
C. 20,000
D. 5,000
Answer: B
Debit balance ₹20,000, cheque deposited ₹4,000 not cleared →
A. 24,000
B. 16,000
C. 20,000
D. 4,000
Answer: B
Bank charges reduce:
A. Cash Book balance
B. Pass Book balance
C. Profit
D. None
Answer: A
Interest credited increases:
A. Cash Book
B. Pass Book
C. Both
D. None
Answer: B
Overdraft means:
A. Negative bank balance
B. Positive
C. Zero
D. Fixed
Answer: A
If overdraft ₹10,000, cheque issued ₹2,000 not presented →
A. 12,000
B. 8,000
C. 10,000
D. 2,000
Answer: B
Cheque dishonoured →
A. Add
B. Deduct
C. Ignore
D. None
Answer: B
Bank interest debited →
A. Add
B. Deduct
C. Ignore
D. None
Answer: B

In Railways, BRS is prepared for:
A. Treasury control
B. Fund tracking
C. Both
D. None
Answer: C
BRS helps in:
A. Cash control
B. Fraud detection
C. Accuracy
D. All
Answer: D
Errors in Cash Book affect:
A. BRS
B. Trial balance
C. Both
D. None
Answer: C
Errors in Pass Book affect:
A. Bank
B. BRS
C. Both
D. None
Answer: C
BRS is part of:
A. Final accounts
B. Internal control
C. Ledger
D. None
Answer: B
BRS detects:
A. Timing differences
B. Errors
C. Both
D. None
Answer: C
Timing difference means:
A. Delay in recording
B. Error
C. Fraud
D. None
Answer: A
Cheque issued not presented →
A. Timing difference
B. Error
C. Fraud
D. None
Answer: A
Cheque deposited not cleared →
A. Timing difference
B. Error
C. Fraud
D. None
Answer: A
Bank charges not recorded →
A. Error
B. Timing
C. Fraud
D. None
Answer: A
BRS ensures:
A. Correct bank balance
B. Profit
C. Tax
D. None
Answer: A
BRS is prepared before:
A. Final accounts
B. Ledger
C. Journal
D. None
Answer: A
BRS does NOT include:
A. Cash transactions
B. Bank transactions
C. Timing differences
D. Errors
Answer: A
BRS is:
A. Optional
B. Mandatory
C. Recommended
D. None
Answer: C
BRS is prepared to reconcile:
A. Cash vs Bank
B. Ledger vs Trial
C. Profit vs Loss
D. None
Answer: A
BRS is based on:
A. Accrual
B. Matching
C. Both
D. None
Answer: C
BRS includes:
A. Outstanding cheques
B. Bank charges
C. Interest
D. All
Answer: D
BRS helps in:
A. Error detection
B. Fraud detection
C. Cash control
D. All
Answer: D
BRS is essential for:
A. Financial control
B. Profit
C. Tax
D. None
Answer: A
BRS ensures:
A. Transparency
B. Accuracy
C. Control
D. All
Answer: D
BRS is used in Railways for:
A. Fund monitoring
B. Audit
C. Control
D. All
Answer: D
BRS is checked by:
A. Auditor
B. Accountant
C. Both
D. None
Answer: C
BRS reduces:
A. Errors
B. Fraud
C. Risk
D. All
Answer: D
BRS is prepared regularly to:
A. Avoid discrepancies
B. Increase profit
C. Reduce tax
D. None
Answer: A
BRS includes adjustments for:
A. Bank errors
B. Business errors
C. Both
D. None
Answer: C
BRS is important for:
A. Internal audit
B. External audit
C. Both
D. None
Answer: C
BRS ensures:
A. Correct reporting
B. Profit
C. Tax
D. None
Answer: A
BRS is part of:
A. Internal control system
B. Ledger
C. Journal
D. None
Answer: A
BRS improves:
A. Accuracy
B. Efficiency
C. Control
D. All
Answer: D
BRS is prepared using:
A. Cash Book & Pass Book
B. Ledger
C. Trial balance
D. None
Answer: A
BRS helps in identifying:
A. Missing entries
B. Errors
C. Timing differences
D. All
Answer: D
BRS ensures:
A. Correct bank position
B. Profit
C. Tax
D. None
Answer: A
BRS is prepared to:
A. Match balances
B. Increase profit
C. Reduce tax
D. None
Answer: A
BRS is useful for:
A. Audit
B. Control
C. Accuracy
D. All
Answer: D
BRS is:
A. Statement
B. Ledger
C. Journal
D. Account
Answer: A
BRS is prepared by:
A. Business
B. Bank
C. Government
D. None
Answer: A
BRS compares:
A. Cash Book & Pass Book
B. Ledger
C. Trial balance
D. None
Answer: A
BRS is required for:
A. Accuracy
B. Control
C. Audit
D. All
Answer: D
BRS ensures:
A. No discrepancy
B. Profit
C. Tax
D. None
Answer: A
BRS is essential for:
A. Financial discipline
B. Profit
C. Tax
D. None
Answer: A

April 05, 2026

Appendix-II, Bank Reconciliation

11 October 2023

🌓 Indian Rly Administration and Finance An introduction(Bank reconciliation & Depreciation) 100 MCQ

Posted by Bhupendra Lad with No comments

🌓MCQ on Indian Railways Administration and Finance An introduction(Bank reconciliation statement ,Inventories & Depreciation)-PC-11

1) Debit balance in the Pass Book means:

A) Favourable balance in the Cash Book

B) Unfavourable balance in the Cash Book

C) Favourable balance in the Pass Book

D) Unfavourable balance in the Pass Book.

2) Bank Reconciliation Statement is a

(A) Part of Cash Book

(B) Part of Bank Account

(C) Part of Financial statements

(D) None of the above.

3) When balance as per Pass Book is the starting point, interest allowed by bank is

(A) Added

(B) Subtracted

(C) Not required to be adjusted

(D) None of the above

4) When the balance as per Cash Book is the starting point, direct deposit by customer:

A) Added

B) Subtracted

C) Not required to be adjusted

D) Neither of the two

5) Credit Balance in the Cash Book means:

A) Overdraft as per Pass Book

B) Credit balance as per Pass Book

C) Debit balance in the Cash Book

D) Neither of these.

6) Bank reconciliation statement may be prepared with the balance of

(A) Cash book

(B) Pass book

(C) Either Cash book or Pass book

(D) Neither cash book or pass book

7) A Pass book is a

(A) Copy of banking transactions entered in the cash book

(B) Copy of the customers’ ledger accounts maintained by the bank

(C) Record of all cash transactions

(D) Copy of firms receipts and payments.

8) Bank reconciliation statement is prepared by

(A) Bank’s customers

(B) Bank

(C) Proprietor of the business

(D) Tax Authorities

Answer key

Bank reconciliation statement

1D 2D 3B 4A 5A 6C 7B 8A

Inventories

1) The amount of purchase if Cost of goods sold is Rs. 80,700; Opening stock Rs.5,800; Closing stock Rs.6,000

(A) Rs.80,500

(B) Rs. 74,900

(C) Rs. 74,700

(D) Rs. 80,900

2) Stock is

(A) Included in the category of Fixed assets

(B) An intangible fixed asset

(C) An investment

(D) A part of current assets

3) Average stock = Rs. 12,000; closing stock is Rs. 3,000 more than the opening stock. The value of closing stock is ____

(A) Rs.12,000

(B) Rs.24,000

(C) Rs.10,500

(D) Rs.13,500

4) if the profit is 25% of the cost price then it is

(A) 25% of the sales price

(B) 33% of the sales price

(C) 20% of the sales price

(D) 15% of the sales price

Answer key

Inventories

1D 2D 3C 4C

Depreciation

1) Original cost = Rs.1,26,000; Salvage value = Rs. 6,000. Useful life = 6 Years. Annual depreciation under SLM =

(A) Rs. 21,000

(B) Rs. 20,000

(C) Rs. 15,000

(D) Rs. 14,000

2) In the case of downward revaluation of an asset which is for the first time revalued , the account to be debited is

(A) Fixed asset

(B) Revaluation Reserve

(C) Profit & loss account

(D) General reserve

3) Depreciation provides funds for

A) Repairs

B) Depreciation

C) Replacement

D) Renewals.

4) Depreciation is an expense resulting

A) from the consumption of Current Assets

B) from the consumption of Fixed Assets

C) From the use of various services

D) None of the above.

5) The amount of Depreciation Charged is debited to:

A) Depreciation Account

B) Machinery Account

C) Cash Account

D) None.

6) Discarding of old machinery due to new invention is called.

A) Fictitious

B) Obsoleteness

C) Amortisation

D) None of them.

7) The following expense is not included in the acquisition cost of Plant and Machinery

A) Cost of site preparation

B) Delivery and Handling charges

C) Installation Charges

D) Financing costs incurred subsequent to the period after plant and equipment is put to use.

8) Which of the following is not depreciated

A) Plant and Machinery

B) Vehicles

C) Furniture

D) Land

9) Depreciation is calculated on

(A) Current assets

(B) Fixed assets

(C) Fictitious Assets

(D) Wasting Assets

10) Diminishing Value Method means a method by which

(A) The rate of depreciation falls year by year

(B) The amount on which depreciation is calculated falls year by year

(C) The rate as well as the amount to which it is applied fall year by year

(D) None of the above.

11) Depreciation according to straight line method is calculated on

(A) Opening balance

(B) Closing balance

(C) Market value

(D) Original cost.

12) Under this method asset account is allowed to stand in the books at its original cost from year to year

(A) Straight line method

(B) Diminishing Balance Method

(C) Depreciation Fund Method

(D) Annuity Method

Answer key

Depreciation

1B 2C 3C 4B 5A 6B 7D 8D 9B 10B 11D 12C

October 11, 2023

Bank Reconciliation, SAS-Group-II

05 April 2026