📘 Bank Reconciliation Statement (BRS) – 100  MCQs

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1–25: Core Concepts (Conceptual Traps)

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

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21. Starting point of BRS can be:
    A. Cash Book
    B. Pass Book
    C. Both
    D. None
    Answer: C
22. If cheque issued ₹5,000 not presented → add to Cash Book balance?
    A. Yes
    B. No
    C. Depends
    D. None
    Answer: A
23. Cheque deposited ₹10,000 not cleared → deduct from Cash Book?
    A. Yes
    B. No
    C. Depends
    D. None
    Answer: A
24. Bank charges ₹500 →
    A. Add
    B. Deduct
    C. Ignore
    D. Multiply
    Answer: B
25. Interest credited ₹1,000 →
    A. Add
    B. Deduct
    C. Ignore
    D. Multiply
    Answer: A
26. Direct deposit by customer →
    A. Add
    B. Deduct
    C. Ignore
    D. None
    Answer: A
27. Direct payment by bank →
    A. Add
    B. Deduct
    C. Ignore
    D. None
    Answer: B
28. If starting with Pass Book, opposite rules apply:
    A. True
    B. False
    C. Sometimes
    D. None
    Answer: A
29. 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
30. Debit balance ₹20,000, cheque deposited ₹4,000 not cleared →
    A. 24,000
    B. 16,000
    C. 20,000
    D. 4,000
    Answer: B
31. Bank charges reduce:
    A. Cash Book balance
    B. Pass Book balance
    C. Profit
    D. None
    Answer: A
32. Interest credited increases:
    A. Cash Book
    B. Pass Book
    C. Both
    D. None
    Answer: B
33. Overdraft means:
    A. Negative bank balance
    B. Positive
    C. Zero
    D. Fixed
    Answer: A
34. If overdraft ₹10,000, cheque issued ₹2,000 not presented →
    A. 12,000
    B. 8,000
    C. 10,000
    D. 2,000
    Answer: B
35. Cheque dishonoured →
    A. Add
    B. Deduct
    C. Ignore
    D. None
    Answer: B
36. Bank interest debited →
    A. Add
    B. Deduct
    C. Ignore
    D. None
    Answer: B

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61. In Railways, BRS is prepared for:
    A. Treasury control
    B. Fund tracking
    C. Both
    D. None
    Answer: C
62. BRS helps in:
    A. Cash control
    B. Fraud detection
    C. Accuracy
    D. All
    Answer: D
63. Errors in Cash Book affect:
    A. BRS
    B. Trial balance
    C. Both
    D. None
    Answer: C
64. Errors in Pass Book affect:
    A. Bank
    B. BRS
    C. Both
    D. None
    Answer: C
65. BRS is part of:
    A. Final accounts
    B. Internal control
    C. Ledger
    D. None
    Answer: B
66. BRS detects:
    A. Timing differences
    B. Errors
    C. Both
    D. None
    Answer: C
67. Timing difference means:
    A. Delay in recording
    B. Error
    C. Fraud
    D. None
    Answer: A
68. Cheque issued not presented →
    A. Timing difference
    B. Error
    C. Fraud
    D. None
    Answer: A
69. Cheque deposited not cleared →
    A. Timing difference
    B. Error
    C. Fraud
    D. None
    Answer: A
70. Bank charges not recorded →
    A. Error
    B. Timing
    C. Fraud
    D. None
    Answer: A
71. BRS ensures:
    A. Correct bank balance
    B. Profit
    C. Tax
    D. None
    Answer: A
72. BRS is prepared before:
    A. Final accounts
    B. Ledger
    C. Journal
    D. None
    Answer: A
73. BRS does NOT include:
    A. Cash transactions
    B. Bank transactions
    C. Timing differences
    D. Errors
    Answer: A
74. BRS is:
    A. Optional
    B. Mandatory
    C. Recommended
    D. None
    Answer: C
75. BRS is prepared to reconcile:
    A. Cash vs Bank
    B. Ledger vs Trial
    C. Profit vs Loss
    D. None
    Answer: A
76. BRS is based on:
    A. Accrual
    B. Matching
    C. Both
    D. None
    Answer: C
77. BRS includes:
    A. Outstanding cheques
    B. Bank charges
    C. Interest
    D. All
    Answer: D
78. BRS helps in:
    A. Error detection
    B. Fraud detection
    C. Cash control
    D. All
    Answer: D
79. BRS is essential for:
    A. Financial control
    B. Profit
    C. Tax
    D. None
    Answer: A
80. BRS ensures:
    A. Transparency
    B. Accuracy
    C. Control
    D. All
    Answer: D
81. BRS is used in Railways for:
    A. Fund monitoring
    B. Audit
    C. Control
    D. All
    Answer: D
82. BRS is checked by:
    A. Auditor
    B. Accountant
    C. Both
    D. None
    Answer: C
83. BRS reduces:
    A. Errors
    B. Fraud
    C. Risk
    D. All
    Answer: D
84. BRS is prepared regularly to:
    A. Avoid discrepancies
    B. Increase profit
    C. Reduce tax
    D. None
    Answer: A
85. BRS includes adjustments for:
    A. Bank errors
    B. Business errors
    C. Both
    D. None
    Answer: C
86. BRS is important for:
    A. Internal audit
    B. External audit
    C. Both
    D. None
    Answer: C
87. BRS ensures:
    A. Correct reporting
    B. Profit
    C. Tax
    D. None
    Answer: A
88. BRS is part of:
    A. Internal control system
    B. Ledger
    C. Journal
    D. None
    Answer: A
89. BRS improves:
    A. Accuracy
    B. Efficiency
    C. Control
    D. All
    Answer: D
90. BRS is prepared using:
    A. Cash Book & Pass Book
    B. Ledger
    C. Trial balance
    D. None
    Answer: A
91. BRS helps in identifying:
    A. Missing entries
    B. Errors
    C. Timing differences
    D. All
    Answer: D
92. BRS ensures:
    A. Correct bank position
    B. Profit
    C. Tax
    D. None
    Answer: A
93. BRS is prepared to:
    A. Match balances
    B. Increase profit
    C. Reduce tax
    D. None
    Answer: A
94. BRS is useful for:
    A. Audit
    B. Control
    C. Accuracy
    D. All
    Answer: D
95. BRS is:
    A. Statement
    B. Ledger
    C. Journal
    D. Account
    Answer: A
96. BRS is prepared by:
    A. Business
    B. Bank
    C. Government
    D. None
    Answer: A
97. BRS compares:
    A. Cash Book & Pass Book
    B. Ledger
    C. Trial balance
    D. None
    Answer: A
98. BRS is required for:
    A. Accuracy
    B. Control
    C. Audit
    D. All
    Answer: D
99. BRS ensures:
    A. No discrepancy
    B. Profit
    C. Tax
    D. None
    Answer: A
100. BRS is essential for:
     A. Financial discipline
     B. Profit
     C. Tax
     D. None
     Answer: A

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