Garden Reach Shipbuilders & Engineers Cost Trainee Interview Questions, Process, and Tips

Marginal costing is a costing technique where only variable costs are considered in determining the cost of a product or service.

• Marginal costing is also known as variable costing.

• It helps in decision-making by providing information on the impact of producing additional units on profit.

• Marginal cost is the cost of producing one additional unit of a product or service.

• It includes only variable costs such as direct mater...read more

The journal entry for purchase of goods involves debiting the inventory account and crediting the accounts payable or cash account.

• Debit the inventory account to record the increase in inventory value

• Credit the accounts payable account if the purchase is on credit

• Credit the cash account if the purchase is made in cash

• Example: Debit Inventory $1,000, Credit Accounts Payable $1,000

I would correct the entry by reversing the debit entry in miscellaneous expenses and posting a credit entry in the correct account for purchase of goods.

• Reverse the debit entry in miscellaneous expenses

• Post a credit entry in the correct account for purchase of goods

• Ensure proper documentation and approval for the correction

• Review the accounting records to prevent similar errors in the future

TDS stands for Tax Deducted at Source. The TDS rate for consultancy services is 10%.

• TDS stands for Tax Deducted at Source

• The TDS rate for consultancy services is 10%

• Consultancy services are subject to TDS deduction at the rate of 10%

ITC can be taken only if the input tax is reflected in GSTR 2A and meets other conditions specified in the GST law.

• ITC can be taken only if the supplier has uploaded the invoice in GSTR 1 and it is reflected in GSTR 2A of the recipient.

• The recipient must ensure that the supplier has paid the tax to the government before claiming ITC.

• ITC can be claimed in the month following the month in which the invoice was uploaded b...read more

Accrued income and prepaid expenses are recorded in journals to ensure accurate financial reporting.

• Accrued income is income that has been earned but not yet received, recorded as a debit in the income account and a credit in the accrued income account.

• Prepaid expenses are expenses paid in advance, recorded as a debit in the prepaid expenses account and a credit in the cash account.

• Accrued income and prepaid expenses j...read more