Accounting Interview Questions

Outstanding salary is representative personal account but salary is a nominal account since it represent expenditure. This is point wort noting since lot of confusion exists among various people in th...

o/s salary a/c is personal a/c and the entry will be

o/s salary a/c dr.
salary a/c

by this entry we transfer the salary a/c balance into o/s salary a/c.

It will be recorded in credit side

Once TDS deducted in current year, we cannot reverse the same in next year. According to Income tax act, TDS has to deduct from Vendor Account, at time of accounting of bill or at time of payment whic...

Provision entries are entries that are made to account for expenses that have not been accounted in the period for which it relates. Hence the provision is created by debiting the expenses and crediting the party account or liability account.

1- Direct method
2- Step - down metod
3- Reciprocal method

You can choose whichever method you like however make sure you use according to the business you are running. If you want to use your expense in current period to generate extra income use double declining method. If you are not concerned about extra income use straight line method

Fisher Effect An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and nominal interest rates. The Fisher effect states that the real...

After trading account a final account is prepared and the transformation of the accounts from trading to profit & loss account it is called finalizing of accounts.

Accounts Finalization means preparation of accounts with accurate figures & arriving at the accurate profit or loss incurred. Normally an account is prepared by an accountant & finalised by a senior accountant or Auditor/Chartered Accountant.

As per income tax law can not claim depreciation but as per company act we can claim it. If assets are machinery & it is ready to use but not used during period we can claim for depreciation because m...

Yes, we will charge depreciation on that asset which is not used in financial year because after some some time its value will be reduced by obsolescences.

Retail invoice is a normal invoice given to a customer at the time of sales, it is not concerned with tax-credit. Whereas tax invoice is a mandatory invoice precribed by the tax authorities containin...

Whenever sales transaction does not involve any tax component, then retail invoice is issued. Such type of invoice is also known as cash memo. No VAT credit can be claimed on retail invoices. Wheneve...

Evaluated Receipt Settlement also known as ERS is a business transaction process between trading parties. In this type of process, the PO information as well as the goods receipt information is used to make direct payment to the supplier without even receiving an invoice.

It may depend and differ based on what the gift items are.

- Gather, transfer and transmit complete information and details related to credit claims such as identification, assessment and valuation - Assign of identification numbers for the claim - Check eli...

Some methods to allocate support cost are:

1. Direct Allocation Method
2. Step-Down Method (also known as Sequential Allocation Method)
3. Reciprocal Method

Chargeback means refund / return of funds to the buyer. Here the bank reverts back the transaction between the buyer and seller when chargeback is initiated. A chargeback is initiated by the buyer w...

Freight charges is the cost of transporting the goods from the seller place to the purchasers location. This cost shall include packing, loading / unloading, carriage, shipping cost etc.,

At first I would like to know what is the defective conditions the industry faced now. After that make to change the condition with effective manner. If i make the situations effective, automatically set the position of accountancy also.

The immovable assets are called fixed assets

5 types of fxed assets are there

Land
Plant & Machinery
Vehicles
Buildings
Furniture

As they would anywhere - problems arise when we do not conform to requirements. Having said that, sometimes problems arise because the requirements are not correct. Root cause analysis recommended.

one should follow the policies of the company because it is an employee duty bt in case a particular policy is questionable then report the same to upper management and suggest them that if we amend this policy then our company will get more benefits.