Accounts Payable Interview Questions

8% will be deducted in the net amount

Tax deducted at source. It is deducted from the income.

purchase a/c Dr 9000 $
cash a/c 1500
party a/c 7500

payment due ac dr 868
to purchase made account 867

Capital is the fund owner starts with the Business. To calculate the true profit owner charge Interest on the Capital which he/she started with the Business. Int. on Capital is the charge usually used in Pvt Ltd company.

Accounts payable process is required in a company because this will help and guide the accountant to manage their payables with in the normal course of the business. This includes verifying and checki...

Accounts payable prime responsibility is to pay the vendors who has supplied goods and services on credit.

3050000 account debit
To customer account credit

It is an entry to create provision for unaccounted expenses in the current month for which services/goods already recieved.

Vendor reconciliation statement means a valid balancing to vendor invoice statement to company General Ledger statement for a particular period. If any difference occurs it means that should be unpaid invoice payment or over payment or interest on late payment etc.

Vendor reconciliation is A statement received from vendor which contains details of invoices of that vendor for a perticular period, vendor wants to confirm that these invoices has been paid or not, the balance vendor has open for this invoices shoudl match the payment made to that vendor.

Either converted to US currency or if you have a system that records foreign currency

Trial Balance- It is a statement in which debit and credit balances of all the accounts of the ledger including cash and bank balances (taken from cash book) are shown to test arithmetical accuracy of...

Trail balance is third accounting phase in accounting after preparation of ledgers which are to be transfer to tail balance it is prepared before trading and profit&loss account it contains clear debit and credit balance

Quick Books is accounting software developed and marketed by Intuit. Which is very popular among small & medium scale enterprises in United States, UK, Australia & many other countries.Intuit has inte...

dep a/c dr
to machinery account

Entries in Accounts payable process:

Inventry A/c Dr
To GR / IR A/c
(Being Goods received)

GR / IR A/c Dr
To Vendor A/c
(Being invoice received)

Vendor A/cDr
To Bank A/c
(Being payment made)

Financial instruments are bonds debentures treasury bills shares etc

Financial instruments are legal documents that embody monetary value. There are a number of different types of documents that are properly identified as a financial instrument. Under the broad heading...

A/c Payable is closed in P2P Cycle as finally the company pays the vendor as per his invoice.

Invoice factoring is the practice of selling your accounts receivable (invoices) at a discount to another company. You get the money from the company that you sold your accounts receivable to and the invoice factoring company services your accounts by collecting on the invoices.

Non-PO invoices means fast line purchasing done for emergency purpose or purchase without proper procurement planning. Any non PO invoices requires approval from the senior of buyer, financial manager...

Non-PO means expenses with approvals from the respective departments and raising invoices against samples which is sent to company.

Personal A/c:
Dr the Receiver and Cr the Giver >> (Name of individuals, company country etc)

Impersonal A/c:
Real A/c:
De what comes in CR what goes out (furniture fixture (fixed assets))
Nominal A/c:
Dr the expenses and losses and Cr the income and gains

Personal A/c : Debit the Receiver
Credit the Giver

Real A/c : What Comes in Debit
What Goes out Credit

Nominal A/c : Expenses & Losses are Debit
Incomes & Gains are Credit.

5 Types

There are different types of purchase order status normally maintained i.e 

1) Under receipt
2) Over receipt
3) Full
4) Pending
5) All

A loss (or losses) from previous years carried forward in order to offset future earnings. This reduces the tax burden for the years with profit as the accumulated losses are deducted from the taxable profit.

AP work starts with receiving of invoices from stations, validation of invoices and ends with payment of that invoice.

1) Create purchase order for the recieved goods. 2) Setup vendor details in the vendor master. 3) Received ordered goods. 4) Then the goods recieved note signed by the authorised officer. 5) Received ...

Send a debit note/memo to vendor
Ask the vendor to send credit note/memo for the discrepancies caused.