eClerx Finance & Accounts Interview Questions and Answers

Final account is a financial statement that summarizes a company's financial performance for a specific period.

• Final accounts include the trading account, profit and loss account, and balance sheet.

• The trading account shows the gross profit or loss of the business.

• The profit and loss account shows the net profit or loss of the business.

• The balance sheet shows the financial position of the business at a specific point i...read more

The journal entry for recording a purchase of equipment on credit

• Debit the Equipment account for the cost of the equipment

• Credit the Accounts Payable account for the amount owed

• Include the date of the transaction and a brief description

• Ensure the entry follows the double-entry accounting system

Bad debt is an amount owed by a debtor that is unlikely to be paid, resulting in a loss for the creditor.

• Bad debt occurs when a customer fails to pay their outstanding balance.

• It is typically written off as a loss on the creditor's financial statements.

• Bad debt can result from customers declaring bankruptcy, going out of business, or simply refusing to pay.

• It is important for companies to properly account for bad debt ...read more

TDS stands for Tax Deducted at Source. It is a tax deduction made at the time of payment to the recipient.

• TDS is deducted by the payer and deposited with the government on behalf of the payee.

• It is applicable on various types of payments like salary, interest, commission, rent, etc.

• The rate of TDS varies based on the nature of payment and the tax laws.

• TDS certificates are issued to the payee as proof of tax deduction.

• T...read more