Osource Global Interview Questions and Answers

The entry of sales refers to the recording of sales transactions in the accounting system.

• Sales entry includes recording the date, customer name, product or service sold, quantity, unit price, and total amount.

• It is important to categorize sales correctly, such as distinguishing between cash sales and credit sales.

• Sales entries are typically recorded in the sales journal or general journal, and then posted to the appropriate accounts in the general ledger.

• For example, a sales...read more

The entry of bad debts is a financial transaction that records the amount of money owed by customers who are unlikely to pay.

• Bad debts are recorded as an expense in the income statement.

• The entry involves debiting the bad debt expense account and crediting the accounts receivable account.

• The amount of bad debts is typically estimated based on historical data or specific customer circumstances.

• Example: If a customer owes $1,000 and it is determined that they will not be able t...read more

GST stands for Goods and Services Tax. Types include CGST, SGST, and IGST. Types of taxes include direct and indirect taxes.

• GST stands for Goods and Services Tax

• Types of GST include CGST (Central Goods and Services Tax), SGST (State Goods and Services Tax), and IGST (Integrated Goods and Services Tax)

• Types of taxes include direct taxes (e.g. income tax) and indirect taxes (e.g. GST)

Types of accounts include assets, liabilities, equity, revenue, and expenses.

• Assets: Resources owned by the company (e.g. cash, inventory)

• Liabilities: Debts or obligations owed by the company (e.g. loans, accounts payable)

• Equity: Represents the owner's stake in the business (e.g. common stock)

• Revenue: Income generated from the company's operations (e.g. sales revenue)

• Expenses: Costs incurred to generate revenue (e.g. salaries, rent)

The accounting entries of accounts payable involve crediting accounts payable and debiting the corresponding expense or asset account.

• Accounts Payable (credit)

• Expense or Asset Account (debit)

Golden rules of accounting are basic principles that guide the process of recording financial transactions.

• The three golden rules of accounting are: 1. Debit the receiver, credit the giver 2. Debit what comes in, credit what goes out 3. Debit expenses and losses, credit income and gains

• These rules help maintain the balance in financial statements and ensure accuracy in recording transactions.

• For example, when a company receives cash from a customer, the cash account is debite...read more

Primary key uniquely identifies a record in a table, while foreign key establishes a relationship between two tables.

• Primary key ensures each record in a table is unique

• Foreign key links a column in one table to a column in another table

• Primary key is used to enforce entity integrity

• Foreign key is used to enforce referential integrity

• Example: In a database of students and courses, student_id could be a primary key in the students table and a foreign key in the courses table