Mpowerment Resources Interview Questions and Answers

Entry of sale and purchase refers to recording transactions related to buying and selling of goods or services.

• For sale, debit the accounts receivable or cash account and credit the sales account.

• For purchase, debit the inventory or expense account and credit the accounts payable account.

• These entries are recorded in the general ledger and are used to prepare financial statements.

• Examples include recording the sale of a product to a customer or the purchase of raw materials f...read more

GST stands for Goods and Services Tax. There are 4 types of GST in India.

• GST is a value-added tax levied on the supply of goods and services.

• It was introduced in India on July 1, 2017.

• The 4 types of GST are CGST, SGST, IGST, and UTGST.

• CGST and SGST are levied by the central and state governments respectively on intra-state transactions.

• IGST is levied by the central government on inter-state transactions.

• UTGST is levied by the union territories on intra-state transactions.

• GST ...read more

Purchase is acquiring goods or services in exchange for money while sale is the process of exchanging goods or services for money.

• Purchase involves buying goods or services from a seller

• Sale involves selling goods or services to a buyer

• Purchase and sale are transactions that involve the exchange of money for goods or services

• In accounting, purchase and sale are recorded as expenses and revenue respectively

• Examples of purchase include buying raw materials, office supplies, or ...read more

Bank reconciliation is the process of comparing a company's bank statement with its own financial records.

• Bank reconciliation helps to identify any discrepancies between the bank statement and the company's records.

• It involves checking for errors, such as missing transactions or incorrect amounts.

• The goal is to ensure that the company's financial records are accurate and up-to-date.

• Bank reconciliation is typically done on a monthly basis.

• Examples of items that may need to be ...read more

GST stands for Goods and Services Tax.

• GST is a value-added tax levied on the supply of goods and services.

• It was introduced in India on July 1, 2017, to replace multiple indirect taxes.

• GST has three components - CGST, SGST, and IGST.

• It has simplified the tax structure and made it easier for businesses to comply with tax regulations.

Purchase refers to the acquisition of goods or services by an individual or organization.

• Purchase is a transaction where a buyer acquires goods or services from a seller.

• It involves the exchange of money or other forms of payment for the goods or services.

• Purchase entry is a record of the transaction in the accounting system, which includes the date, amount, and details of the purchase.

• For example, if a company purchases inventory worth $10,000 on credit, the purchase entry w...read more

Sales refers to the exchange of goods or services for money or other valuable consideration.

• Sales is the process of convincing a customer to purchase a product or service.

• It involves identifying potential customers, presenting the product or service, and closing the sale.

• Sales can be conducted through various channels such as in-person, online, or over the phone.

• The success of sales is often measured by the number of units sold or revenue generated.

• Examples of sales include s...read more