Varishta Motors Interview Questions and Answers

Financial accounting is the process of recording, summarizing, and reporting the financial transactions of a business.

• Involves recording financial transactions

• Summarizing financial data in financial statements like balance sheet and income statement

• Reporting financial information to stakeholders like investors and regulators

• Follows generally accepted accounting principles (GAAP)

• Examples include preparing financial stat...read more

In Tally ERP 9, the short key for purchases is F9.

• Press F9 to directly access the purchase voucher entry screen.

• Use F9 key to quickly create and record purchase transactions.

• F9 key helps in streamlining the process of entering purchase details in Tally ERP 9.

Credit memo is a document issued by a seller to a buyer reducing the amount owed, while debit memo is a document issued by a buyer to a seller increasing the amount owed.

• Credit memo reduces the amount owed by the buyer to the seller.

• Debit memo increases the amount owed by the buyer to the seller.

• Credit memo is issued by the seller, while debit memo is issued by the buyer.

• Credit memo is used for returns, discounts, or e...read more

Sales goods for cash are recorded as a debit to cash and a credit to sales revenue.

• Sales goods for cash result in an increase in cash and sales revenue on the income statement.

• The journal entry would be: Debit Cash, Credit Sales Revenue.

• This transaction does not involve accounts receivable since it is a cash sale.

Purchase return in accounting refers to the process of returning purchased goods to the supplier due to various reasons.

• Purchase return is recorded as a credit note in the books of accounts.

• It reduces the amount payable to the supplier and decreases inventory.

• Reasons for purchase return include damaged goods, wrong quantity, or quality issues.

• Example: A company returns a batch of defective products to the supplier and

The 3 golden rules of accounting are the rules that govern how financial transactions are recorded and reported.

• 1. Debit what comes in, credit what goes out

• 2. Debit the receiver, credit the giver

• 3. Debit all expenses and losses, credit all incomes and gains

Depreciation is not charged on land because land does not have a finite useful life and its value typically appreciates over time.

• Land is considered to have an indefinite useful life, unlike buildings or machinery which have a limited lifespan.

• Land does not wear out, become obsolete, or require regular maintenance like other assets.

• The value of land generally appreciates over time, making it unnecessary to depreciate.

• D...read more

The 3 financial statements are the income statement, balance sheet, and cash flow statement.

• Income statement: Shows a company's revenues and expenses over a specific period of time.

• Balance sheet: Provides a snapshot of a company's financial position at a specific point in time, including assets, liabilities, and equity.

• Cash flow statement: Details the cash inflows and outflows of a company over a specific period of tim