ADMIRE GLOBAL ORGANISATION Production DET Interview Questions and Answers

Golden rules of accounting are basic principles to be followed while recording financial transactions.

• Debit the receiver, credit the giver

• Debit what comes in, credit what goes out

• Debit expenses and losses, credit income and gains

Payment mode refers to the method of payment while payment terms refer to the agreed upon time frame for payment.

• Payment mode is the way in which payment is made, such as cash, credit card, or bank transfer.

• Payment terms refer to the agreed upon time frame for payment, such as net 30 or 60 days.

• Payment mode and payment terms are both important factors in financial transactions.

• For example, a company may agree to pay a ...read more

Cash application is the process of recording and tracking incoming payments from customers.

• It involves matching payments received with outstanding invoices

• It ensures accurate and timely recording of cash transactions

• It helps in identifying and resolving discrepancies in payments

• Examples include using accounting software to record and reconcile payments

• It is an important function in managing cash flow and financial repo

Contact other consultants or escalate the issue to higher authorities

• Check if there are any other consultants available who can assist with the payment

• If not, escalate the issue to the higher authorities in the company

• Ensure that the payment is made on time to avoid any delays or penalties

• Maintain a record of the steps taken to resolve the issue

The format of BS as per Schedule III includes various sections and sub-sections for presenting financial statements.

• Schedule III of the Companies Act, 2013 prescribes the format for preparation of Balance Sheet.

• The Balance Sheet should be presented in a specific order, starting with the name of the company and ending with the signature of the authorized signatory.

• The Balance Sheet should include various sections such a...read more

Substance over form and materiality are accounting principles that prioritize the economic reality of transactions.

• Substance over form means that the economic reality of a transaction should be considered over its legal form.

• Materiality means that only significant information should be reported in financial statements.

• Both principles are important in ensuring accurate and transparent financial reporting.

• For example, if...read more

Reserves are created for expected losses while provisions are created for known losses.

• Reserves are created for uncertain future events while provisions are created for known liabilities.

• Reserves are created to strengthen the financial position of the company while provisions are created to reduce profits.

• Examples of reserves include bad debt reserve, warranty reserve, and contingency reserve while examples of provisio...read more

Entry for sale of goods and effects in financial statements.

• The sale of goods and effects is recorded as revenue in the income statement

• The cost of goods sold is deducted from the revenue to calculate gross profit

• The sale of fixed assets is recorded as a gain or loss in the income statement

• The sale of investments is recorded as a gain or loss in the income statement

• The cash received from the sale is recorded in the cas