Accountant and Store Incharge Interview Questions and Answers

The journal entries for purchasing 5 vehicles for trading and office use.

• Debit the Vehicles account for the cost of the 5 vehicles

• Credit the Cash/Bank account for the payment made

• Debit the Office Use Expenses account for the cost of the vehicle used for office

• Credit the Vehicles account for the cost of the vehicle used for office

BRS is the process of comparing the bank statement with the company's records to ensure the accuracy of the financial transactions.

• BRS is a crucial accounting process to identify any discrepancies between the bank statement and the company's records.

• It involves reconciling the ending balance of the bank statement with the ending balance of the company's cash account.

• Examples of items that may cause discrepancies include outstanding checks, deposits in transit, bank fees, and ...read more

Deferred revenue expenditure refers to expenses that are incurred in the current accounting period but are allocated over multiple periods.

• Deferred revenue expenditure is an accounting concept where certain expenses are not fully recognized in the current period but are spread over future periods.

• These expenses are treated as assets and are gradually written off over the useful life of the asset.

• Examples of deferred revenue expenditure include heavy advertisement expenses, re...read more

A credit note is a document issued by a seller to a buyer, reducing the amount owed by the buyer to the seller.

• A credit note is used to correct errors in invoices or to provide refunds to customers.

• It is typically issued when goods are returned by the buyer or when there is a price adjustment.

• The credit note includes details such as the original invoice number, the reason for the credit, and the amount being credited.

• For example, if a customer returns a defective product and ...read more

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

• The Golden rules include: Debit what comes in, Credit what goes out; Debit the receiver, Credit the giver; Debit expenses and losses, Credit income and gains.

• These rules help maintain the balance in the accounting equation: Assets = Liabilities + Equity.

• For example, when a company receives cash from a customer, the cash account is debited (increased) and the accounts...read more