Megha Engineering & Infrastructures Internal Auditor Interview Questions and Answers

A contra entry is a transaction that involves both a debit and a credit entry which offset each other.

• Contra entries are used to correct errors, transfer funds between accounts, or record non-cash transactions.

• For example, transferring money from a savings account to a checking account would involve a contra entry.

• Contra entries are typically recorded in the general ledger to ensure accurate financial reporting.

Depreciation is the allocation of the cost of a tangible asset over its useful life.

• Depreciation is a non-cash expense that reflects the decrease in value of an asset over time.

• It is used to spread out the cost of an asset over its useful life rather than expensing it all at once.

• Common methods of calculating depreciation include straight-line, double declining balance, and units of production.

• Examples of depreciable a...read more

TDS stands for Tax Deducted at Source. It is a tax collection method where a certain percentage of tax is deducted by the payer at the time of making payment to the payee.

• TDS is governed by the Income Tax Act of 1961 in India.

• It is applicable to various payments such as salary, interest, commission, rent, etc.

• Different sections of the Income Tax Act specify the rates and rules for TDS deduction, such as Section 192 for...read more