Capsitech IT Services Accountant Interview Questions, Process, and Tips

GST was imposed by the government to simplify the tax system and increase revenue.

• To simplify the tax system by replacing multiple indirect taxes with a single tax

• To increase revenue by widening the tax base and reducing tax evasion

• To promote ease of doing business by reducing compliance burden

• To make Indian goods competitive in the global market by providing input tax credit

• Examples: GST replaced taxes like VAT, excis...read more

Returning purchased goods will decrease inventory and accounts payable on the balance sheet.

• Returning purchased goods will decrease the inventory account on the balance sheet.

• Accounts payable will also decrease as the company will no longer owe the supplier for the returned goods.

• The decrease in inventory and accounts payable will result in a decrease in total assets and liabilities on the balance sheet.

• The impact on t...read more

Closing stock is shown on the assets side of the trial balance.

• Closing stock is an asset and is shown on the assets side of the trial balance.

• It is usually shown under the inventory or stock-in-hand account.

• The value of closing stock is calculated by taking the physical inventory count and multiplying it by the cost per unit.

• The closing stock figure is carried forward to the next accounting period as the opening stock.

Depreciation is the decrease in value of an asset over time. Furniture and fixture have a depreciation rate and method of charged depreciation.

• Depreciation is a non-cash expense that reflects the wear and tear of an asset over time

• Furniture and fixture have a useful life and a salvage value

• The most common method of charged depreciation is the straight-line method

• The depreciation rate and method of charged depreciation ...read more