Banking companies

MCQ’s

1. Banks in India are regulated by the provisions of

a. RBI Act
b. Ministry of Finance
c. Banking Regulation Act
d. Banking Regulation Board

2. The accounting year of a banking company is

a. Calendar year (January to December)

b. Financial year (april to march)
c. July to june
d. Any period of 12 years (mar to feb, sept to august)

3. The principal books of a bank include what books

a. Document register
b. Bills for collection register
c. Day cash book
d. Investment ledger

4. General ledger forms part of which book of a bank

a. Register sections
b. Principal books
c. Subsidiary books
d. Ledgers

5. Property ledgers, current account ledgers are which books of a bank

a. Register sections
b. Principal books
c. Subsidiary books
d. Ledgers
6. Which Section of the Banking Regulation Act prescribes the maintenance
of accounts by a bank

a. Section 27
b. Section 28
c. Section 29
d. Section 30

7. The format of profit and loss account and balance sheet are in which
schedule of a bank

a. Schedule I
b. Schedule II
c. Schedule III
d. Schedule IV

8. Which part of schedule III is the format of balance sheet

a. Part A
b. Part B
c. Part C
d. Part D

9. Which part of Schedule III is the format of profit and loss account

a. Part A
b. Part B
c. Part C
d. Part D

10 Schedule 2 of the Banking Companies deals with

a. Borrowings
b. Fixed assets
c. Reserves and surplus
d. Contingent liabilities

11 A Banking Company must compulsorily transfer what % of its profits

earned d.t.y. before declaration of dividend to shareholders

a. 30
b. 25
c. 20
d. 50
12 deposits appear in which schedule of a banking company

a. schedule 2
b. schedule 3
c. schedule 6
d. schedule 8

13 Borrowings from outside India appear in which schedule of a banking

company

a. schedule 4
b. schedule 5
c. schedule 11
d. schedule 6

14 The schedules of liabilities of a bank are

a. Schedules 1 to 5
b. Schedules 13 and 14
c. Schedules 15 and 16
d. Schedules 6 to 11

15. profit and loss account schedules of a bank are

a. Schedules 1 to 5
b. Schedules 13 and 16
c. Schedules 11 and 13
d. Schedules 6 to 11

16. Balances with RBI appears in which schedule of a banking company

a. schedule 9
b. schedule 3
c. schedule 10
d. schedule 6

17. Investments appears in which schedule of a banking company

a. schedule 9
b. schedule 8
c. schedule 12
d. schedule 6
18.Stationery and stamps appears in which schedule of a banking company

a. schedule 11
b. schedule 12
c. schedule 10
d. schedule 13

19. Schedule 9 of a Banking company includes which of the below items

a. bills payable
b. inter bank adjustments (cr)
c. bills for collection/bills purchased/bills discounted
d. cash and balances with other banks

20. contingent liabilities appears in which schedule of a bank

a. schedule 12
b. schedule 14
c. schedule 15
d. schedule 10

21. commission, brokerage received appears in which schedule of a bank

a. schedule 13
b. schedule 11
c. schedule 7
d. schedule 14

22. interest paid on fixed deposits appears in which schedule of a bank

a. schedule 13
b. schedule 15
c. schedule 17
d. schedule 16

23. Depreciation on office premises appears in which bank schedule

a. schedule 13
b. schedule 15
c. schedule 17
d. schedule 16
24. Non performing assets are those assets of a bank which do not
yield recovery of principal/interest for how minimum many months

a. 1 month
b. 3 months
c. 4 months
d. 2 months

25. Rebate on bills discounted appears in which bank schedule

a. Schedule 12
b. Schedule 13
c. Schedule 14
d. Schedule 18

26. Interest income from Non performing loan accounts must be

accounted

a. On accrual basis
b. On financial year basis
c. On calendar year basis
d. On actual receipt basis

27 Miscellaneous income received by a bank appears in which schedule

a. Schedule 7
b. Schedule 13
c. Schedule 1
d. Schedule 14

28 Every bank has to maintain cash reserve ratio at what % of its demand
and time liabilities

a. 2%
b. 1%
c. 4%
d. 3%

29 General ledger of a bank consists of

a. Only ledgers of assets

b. Only ledgers of liabilities
 c. Only ledgers of incomes and expenditures
d. Ledgers of all real and nominal accounts

30 Rebate on bills discounted is

a. Discount received by a bank

b. Discount paid by a bank
c. Outstanding discount to be paid by a bank
d. Discount received by a bank not yet actually received

Bill of exchange discounted by a customer on say 1/2/2021 for 3 months i.e.

till 1/5/2021. As on 31/3/2021 the bank will only account discount received
uptil that date. Income from 1/4/2021 to 1/5/2021 will be accounted in the
next year.

31 The 1st item of liabilities side of a banking company is

a. Capital
b. Reserves
c. Borrowings
d. Other liabilities

32 the 1st item of assets side of a banking company is what schedule

a. schedule 5
b. schedule 6
c. schedule 8
d. schedule 11

liability schedules are 1 to 5

asset schedules are 6 to 11
profit and loss account schedules are 13 to 16
income schedules are 13 and 14
expenditure schedules are 15 and 16.

33 income tax disputes of a bank appears in which bank schedule

a. schedule 11
b. schedule 12
c. schedule 13
d. schedule 18

schedule 12 disclosure in the schedule of contingent liabilities

34 Interest expended (paid) by a bank forms part of which bank schedule

a. schedule 14
b. schedule 12
c. schedule 15
d. schedule 16

35 Schedule 11 of a bank includes which of the below mentioned item

a. TDS and advance tax

b. Balances with PNB
c. Investment in GOI bonds
d. Inter bank adjustments (Credit)

Balances with PNB comes in schedule 7

Investment in GOI bonds comes in schedule 8
Inter bank adjustments (credit) – liabilities side schedule 5
Inter bank adjustments (debit) –schedule 11