HyFun Foods Interview Questions and Answers

Deductions under sections 80C and 80D of the Income Tax Act allow taxpayers to reduce their taxable income by investing in specified avenues or paying for health insurance premiums.

• Section 80C allows deductions for investments in instruments such as PPF, EPF, NSC, ELSS, life insurance premiums, etc.

• The maximum deduction under section 80C is Rs. 1.5 lakh per financial year.

• Section 80D allows deductions for health insurance premiums paid for self, spouse, children, and parents....read more

To claim a deduction for rent paid under income tax, one must meet certain criteria and follow specific steps.

• Ensure the rent paid is for a property used for business purposes or as a residence

• Keep records of rent payments, such as receipts or lease agreements

• File the appropriate tax forms, such as Schedule A for itemized deductions

• Be aware of any limitations on rent deductions based on income level or other factors

The revenue recognition 5 step model as per Ind AS 115 involves identifying the contract, identifying performance obligations, determining the transaction price, allocating the transaction price to the performance obligations, and recognizing revenue as the performance obligations are satisfied.

• Identify the contract: Determine if there is an agreement between two or more parties that creates enforceable rights and obligations.

• Identify performance obligations: Identify the dis...read more

Different methods of depreciation include straight-line, double declining balance, units of production, and sum-of-the-years-digits.

• Straight-line method: Allocates an equal amount of depreciation each year.

• Double declining balance method: Accelerates depreciation in the early years of an asset's life.

• Units of production method: Depreciation is based on the actual usage of the asset.

• Sum-of-the-years-digits method: Accelerates depreciation but in a more gradual manner compared ...read more

Accrued expenses are recorded with a debit to an expense account and a credit to a liability account.

• Debit the expense account to recognize the expense

• Credit the accrued liability account to show the obligation

• Example: Debit Salaries Expense, Credit Salaries Payable

The golden rule of accounting states that for every debit there must be an equal credit.

• The golden rule of accounting is also known as the double-entry accounting system.

• It ensures that the accounting equation (Assets = Liabilities + Equity) remains balanced.

• For every transaction recorded, there must be at least one debit and one credit entry.

• Example: If cash is received, the Cash account is debited and another account (such as Revenue or Accounts Receivable) is credited.