Kirtane & Pandit Accountant Interview Questions and Answers

The 3 golden rules of accounting are the basic principles that guide the recording of financial transactions.

• The first golden rule is the Personal Account rule, which states that 'Debit the receiver, credit the giver'. For example, when a customer pays cash for goods purchased, the cash account is debited and the sales account is credited.

• The second golden rule is the Real Account rule, which states that 'Debit what co...read more

Bookkeeping is the process of recording, organizing, and maintaining financial transactions of a business.

• Bookkeeping involves recording all financial transactions, such as sales, purchases, and expenses.

• It helps in organizing and categorizing financial data for easy analysis and reporting.

• Bookkeeping ensures accuracy and completeness of financial records.

• It involves tasks like maintaining ledgers, reconciling accounts...read more

Depreciation is the allocation of the cost of an asset over its useful life, accrual is recognizing revenue and expenses when they are incurred, and prepayment is paying for expenses before they are incurred.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet over time.

• Accrual accounting matches revenue and expenses to the period they are incurred, not when cash is exchanged.

• Prepa...read more

Test of details focuses on specific transactions or account balances, while controls test the effectiveness of internal controls.

• Test of details involves examining individual transactions or account balances to ensure accuracy and completeness.

• Controls testing evaluates the effectiveness of internal controls in preventing or detecting errors or fraud.

• Test of details may involve confirming account balances with third pa...read more

Audit procedures for purchase cycle and payroll involve verifying transactions, reconciling accounts, and testing internal controls.

• Verify purchase orders, invoices, and payments match

• Reconcile accounts payable ledger to vendor statements

• Test segregation of duties in payroll processing

• Review payroll register for accuracy and completeness

• Confirm payroll taxes are properly withheld and remitted

Revenue recognition under IFRS involves recognizing revenue when it is earned and realizable, regardless of when cash is received.

• Revenue is recognized when it is probable that economic benefits will flow to the entity and the revenue can be reliably measured.

• Revenue is measured at the fair value of the consideration received or receivable.

• Revenue recognition criteria include transfer of risks and rewards, no continuin...read more

Deferred tax is a balance sheet item that represents the tax consequences of temporary differences between accounting income and taxable income.

• Deferred tax arises due to timing differences in recognizing income and expenses for tax and accounting purposes.

• It is recorded on the balance sheet as a liability or asset depending on whether the tax payable is more or less than the tax expense recognized in the income statem...read more

I would empathize with the client, explain the situation calmly, offer solutions or alternatives, and ensure their satisfaction.

• Listen to the client's concerns and acknowledge their feelings

• Explain the situation calmly and objectively

• Offer solutions or alternatives to address the issue

• Ensure the client's satisfaction and maintain a positive relationship