Accounts Receivables Interview Questions

considered as bad debt and should be written off after the set time

In the books of company A
Company B A/c .........Dr 1000
To Cash/ Bank A/c 1000

In the books of company B
Cash / Bank A/c ......Dr 1000
To Company A A/c 1000

in the books of A

B A/c. Dr.
to Cash A/c.

In the books of B

Cash A/c. Dr.
to A A/c.

Journal Entries are recorded on a double entry system, ie debit and credit concept. In order to record a journal entry, the following steps need to be followed.Enter the Journal entry numberEnter the ...

A journal entry is recorded accourding to the rules of debit and credit.for example goods sold for Rs 50000 for cash ----to record this -- identify the accounts involved-- i.e.goods A/cand Cash A...

Accounts receivable is the last stage of the customer order cycle. It involves: Invoicing the customer, Performing collection activities, Receiving payments against customer invoices.

Receivables means those who owes money to the organisation

A company can monitor the payments which are yet to receive from the clients. It helps to show the correct financial position of the company. 

After 90 days of the due date.

It depends upon the net terms of the account

Collection involves calling the customers for past due and this kind of question has to logically answered

Debtors are a major source for working capital requirements whereby the company treat the amount due from debtors as accounts receivable.

Debtors are the main role of the business. he is the entire back bone of the business. The goodwill of the concern is in the hands of debtors because he is the person who takes our product or rawmater...

ERS is a business process between trading partners that conduct commerce without invoices. In an ERS transaction, the supplier ships goods based upon an Advance Shipping Notice (ASN), and the purchase...

Receiving the order from the customer->Quoate Approval->Create the Sales Order->Delivering the goods as per the SO->Create the Invoices->Receive Payments from customer.

Flow of Accounts receivable should be in proportion to Accounts payable i.e. in terms of ration 2:1

Accountants... in big organization there will be a department to maintain AR department.

Asstes are things which is provide service for long dueration it may 3 years 4 years or for long period of time.
These items capitalise in our account books and charge depreciation in every year according to these rate it may 20%, 10%, 100%

Reconciliations compares two set of accounts. It is usually the balance in two accounts to make sure that they are in agreement.

Suppose you have 2 types of balances A and B  reconcilaition is a process in which we compare if balances in A are equal to balances in B

Finance management or allocation of cash to varoius deparments.
Accounts is the bookeeping record of each transation involved (they add value to each other).

Finance: it is an economic activity. it involes managing the funds, how to raise the funds & its allocation in diffrent departments like production, marketing, hr etc

Accounting: it is an art of keeping the records of all transactions took place in the business acivity


By: Y.P.chadra  

Its depends on the credit period of the company i.e. A company credit period 30 days, 85% of the debtors collection should be recovered with in credit period. we can say the Effective collection. 

For every dunning letter there will be some time gap. for example we have 3 dunning letters dlettername days dun1 1 dun2 2 dun3 3 If we ran this request 3 times, fourth time if you run the rep...