Accounting Interview
Mostly Asked Questions & Answers
Mostly Asked Questions & Answers
What does the abbreviation dr mean
in accounting?
'Dr' means
Debere in Latin stands for 'what comes in' or in simple words whatever assets
the business owns or the expenses it has to pay comes under debit.
While 'cr'
means credere in Latin means 'what goes out', in simple words whatever
liabilities business owns, or the income it earned during the year comes under
credit.
What
is the difference between personal account real account and nominal account?
The total business transactions are divided in to
three They are Transactions related to persons, Transactions related to Things,
Transactions related to incomes & expenditures. In accountancy we have
three types of accounts they are - personal, real, nominal Personal accounts
refers to all the transactions related to natural persons, artificial persons
and representative persons
ex:- rama, ravi, Indian bank, outstanding rent. ,.
First category of transactions belongs to personal accounts RULE: debit the
receiver and credit the giver Real accounts include things in the business i.e.
assets. Second category of transactions related to Real accounts ex: buildings,
machinery, cash etc. RULE: Debit what comes in and credit what goes out Nominal
accounts includes all the transactions related to expenditures, incomes,
losses, and profits. Ex: - rent paid, rent received, bad debts, profit on sale
of an asset.
RULE: Debit all expenses and losses and credit all
incomes and profits
Personal :
Debit the receiver; Credit the giver.
Real :
Debit what comes in; Credit what goes out.
Nominal :
Debit all expenses & loses; Credit all incomes & gains.
What
is Service Tax & Excise? How will it be charged?
Service Tax is a form of indirect tax imposed on
specified services called Taxable services. Presently it covers 58 services.
The service provider but A collected shall pay a service tax from the service
receiver. Excise is also a form of indirect tax levied on A goods produced or
manufactured in India.
Service
Tax is a Indirect Tax which is levied on Service. The Service receiver will pay
to the service provider.
Ex:
Servicing a Vehicle, Delivering goods, outsourcing agencies. etc.
Excise Duty is also a form of Indirect Tax but this is imposed on Goods or manufacturing Items.
Excise Duty is also a form of Indirect Tax but this is imposed on Goods or manufacturing Items.
Ex: Steel,
Cement, dress Materials, etc
Where
should TDS received should show in balance sheet?
Assets Side: Advance In-Come Tax Ledger in current year.
it should be shown under the head current
asset on the asset side of balancesheet
What is the difference
between inactive accounts and dormant account?
Dormant
accounts are those accounts in which there are transactions in the recent
history (the stipulation may vary according to the company's rules). Inactive
accounts are those accounts in which transactions are being made for long time.
Inactive
account means an account had not been in use for a long time and not going to
be used in the future. Dormant accounts are those which are presently not in
use but it is
likely that it may be used in the near future.
likely that it may be used in the near future.
Define
Tally Accounting?
Tally is a
financial accounting software package designed by Tally Solutions mainly for
small businesses and shops. They claim on their website that Tally is used by
over 2 million users, in over 90 countries. Tally 9.0 is the latest version to
date.
Tally is a
financial accounting software package designed by Tally Solutions mainly for
small businesses and shops. They claim on their website that Tally is used by
over 2 million users, in over 90 countries. Tally 9.0 is the latest version to
date.
What
are the fictitious assets?
These are
like intangible assets, which cannot be seen or touched. Actually, these are
not assets but some expenditure, which cannot turn to profit and loss account
of a particular period that is why these items are shown on assets side of
balance sheet to be written off to P&L account in reasonable years.
those
assets are created by a company Ex. preliminary expenditure,advertisement etc.
What
is Departmental Accounting? Give an example?
Departmental accounting means account prepared
separately for the department
and here ledgers will be opened trial balance will be prepared, also p&l
account will be prepared, and profit or loss is included in the main p&l
account and shown in the balance sheet.
