1000+ Accountant Interview Questions and Answers

GST stands for Goods and Services Tax. It is a comprehensive indirect tax levied on the supply of goods and services.

• GST is a single tax that replaced multiple indirect taxes in India.

• It was implemented on July 1, 2017, with the aim of simplifying the tax structure and promoting ease of doing business.

• GST is levied at every stage of the supply chain, from the manufacturer to the consumer.

• It is divided into Central GST (CGST) and State GST (SGST), which are collected by the ce...read more

Selecting candidates requires evaluating skills, experience, cultural fit, and potential for growth.

• Relevant Experience: Assess if the candidate has prior experience in accounting roles, such as bookkeeping or financial analysis.

• Technical Skills: Evaluate proficiency in accounting software like QuickBooks or Excel, which are essential for the role.

• Cultural Fit: Consider how well the candidate aligns with the company's values and work environment, ensuring they can collaborate...read more

There are three types of accounts: personal, real, and nominal.

• Personal accounts are related to individuals or organizations, such as customers or suppliers.

• Real accounts are related to assets and liabilities, such as buildings or loans.

• Nominal accounts are related to income and expenses, such as salaries or rent.

• Each type of account has a different role in the accounting process.

• The classification of accounts helps in the preparation of financial statements.

I have worked on QuickBooks, Xero, and SAP. I prefer QuickBooks for its user-friendly interface and comprehensive features.

• I have experience using QuickBooks, Xero, and SAP accounting platforms.

• QuickBooks is my preferred platform due to its user-friendly interface and comprehensive features.

• Xero is also a good platform, but I find it less intuitive than QuickBooks.

• SAP is a powerful platform, but it is more suitable for larger organizations with complex accounting needs.

The three golden rules of accounting are the basis of recording financial transactions accurately.

• The first rule is the Personal Account, which deals with transactions related to individuals or organizations.

• The second rule is the Real Account, which deals with transactions related to assets, liabilities, and capital.

• The third rule is the Nominal Account, which deals with transactions related to expenses, incomes, gains, and losses.

• These rules help in maintaining the accuracy...read more

The 5 basic accounting principles are: revenue recognition, matching principle, cost principle, full disclosure principle, and objectivity principle.

• Revenue recognition: recognizing revenue when it is earned, not when payment is received

• Matching principle: matching expenses with the revenue they generate

• Cost principle: recording assets at their original cost

• Full disclosure principle: disclosing all relevant information in financial statements

• Objectivity principle: using objec...read more

Yes, language is important and necessary to understand in front of clients.

• Language is crucial in communication with clients and colleagues.

• Understanding the client's language can help build trust and rapport.

• Misunderstandings due to language barriers can lead to errors and loss of business.

• Language proficiency can also be a valuable skill in international business.

• For example, a client from Japan may feel more comfortable working with an accountant who speaks Japanese.

I would immediately rectify the error by contacting the appropriate parties and taking necessary steps to correct the payment.

• Notify the relevant parties about the incorrect payment

• Investigate the cause of the error

• Take necessary steps to rectify the payment, such as issuing a refund or making a correction

• Implement measures to prevent similar errors in the future

Yes, I am capable of handling your 6 personal files in a Tally software.

• I have experience working with Tally software and managing personal files.

• I am proficient in entering and organizing data in Tally.

• I can ensure accuracy and confidentiality in handling your personal files.

• I can generate reports and provide financial insights based on the data in Tally.

• I am familiar with Tally's features and functionalities for efficient file management.

Petty cash will be managed by setting up a system for recording and tracking expenses.

• Establish a petty cash fund with a fixed amount

• Assign a custodian to manage the fund

• Require receipts for all expenses

• Record all transactions in a petty cash log

• Reconcile the fund regularly

• Adjust the fund amount as needed

• Ensure compliance with company policies and procedures

The T code for goods receipt is MIGO.

• MIGO is used to post goods receipts for purchase orders, production orders, and inbound deliveries.

• It allows for the creation of material documents and updates inventory and accounting records.

• MIGO can also be used to reverse goods receipts and cancel material documents.

Credit procedure involves the process of assessing and granting credit to customers based on their creditworthiness.

• Credit procedure involves evaluating the creditworthiness of customers.

• It includes assessing factors such as credit history, financial stability, and payment behavior.

• The procedure may involve obtaining credit reports, analyzing financial statements, and conducting credit checks.

• Based on the evaluation, credit limits and terms are determined for customers.

• Monito...read more

Filter in Excel is used to sort and display specific data based on certain criteria.

• Filter allows users to view a subset of data that meets specific conditions.

• It helps in analyzing and organizing large amounts of data.

• Filtering can be done based on text, numbers, dates, or custom criteria.

• Example: Filtering a sales data sheet to display only the transactions from a specific region.

• Example: Filtering a list of employees to show only those who have a certain job title.

Short term goal is to gain experience and improve skills. Long term goal is to become a senior accountant and contribute to the growth of the organization.

• Short term goal: Gain experience and improve skills

• Long term goal: Become a senior accountant and contribute to the growth of the organization

I have knowledge of Microsoft Excel, QuickBooks, and SAP.

• Proficient in Microsoft Excel for data analysis and reporting

• Experience in using QuickBooks for bookkeeping and payroll management

• Familiarity with SAP for financial accounting and controlling processes

I have a strong knowledge of accounting principles and experience using various computer software programs.

• Proficient in using accounting software such as QuickBooks and Xero

• Familiarity with Microsoft Excel for financial analysis and reporting

• Knowledge of GAAP and IFRS accounting standards

• Experience with accounts payable and receivable management

• Ability to reconcile bank statements and prepare financial statements

I will collect invoices, receipts, contracts, and payment records from debtors and attendance records from workers.

• Invoices and receipts to verify the amount owed by the debtor

• Contracts to ensure the terms of payment are met

• Payment records to track the payment history of the debtor

• Attendance records to verify the hours worked by the employees

• Signed agreements and contracts with workers to ensure compliance with labor laws

• Bank statements to verify the payment transactions

• Email...read more

A customer relationship management platform for Comcast would focus on personalized customer interactions and efficient issue resolution.

• Implement a centralized database to store customer information and interaction history.

• Integrate communication channels such as phone, email, and chat for seamless customer support.

• Utilize data analytics to track customer behavior and preferences for targeted marketing campaigns.

• Automate processes for issue resolution and follow-up to improv...read more

A ticketing management system for a theatre to streamline ticket sales and seat allocation.

• Create an online platform for customers to purchase tickets

• Implement a seating chart to allow customers to select their seats

• Include options for different ticket types (e.g. VIP, standard, student)

• Generate electronic tickets for customers to present at the theatre entrance

• Integrate payment processing for secure transactions

Autocomplete feature for a search engine

• 1. Display suggestions as user types in the search bar

• 2. Suggestions should be based on popular searches or previous searches

• 3. Allow users to select a suggestion to complete their search

• 4. Update suggestions in real-time as the user continues typing

Find all palindromic decompositions of a given string s.

• Iterate through all possible substrings and check if they are palindromes.

• Use backtracking to generate all possible decompositions.

• Return the list of palindromic decompositions.

Debit note is given to creditors for goods returned or overcharged, while credit note is given to debtors for goods returned or undercharged.

• Debit note is issued to inform the creditor that their account has been debited for the amount of goods returned or overcharged.

• Credit note is issued to inform the debtor that their account has been credited for the amount of goods returned or undercharged.

• Debit note reduces the amount payable to the creditor, while credit note reduces t...read more

Several types of documents need to be prepared for export dispatch.

• Commercial Invoice

• Packing List

• Bill of Lading

• Certificate of Origin

• Insurance Certificate

• Export License

• Inspection Certificate

• Proforma Invoice

BRS is Bank Reconciliation Statement. There are two types of tax - Direct and Indirect. Journal entries include debit and credit entries.

• BRS is a statement that compares the bank balance as per the bank statement with the balance as per the company's books.

• Direct taxes are taxes that are directly paid by the taxpayer to the government, such as income tax, corporate tax, etc.

• Indirect taxes are taxes that are collected by an intermediary from the person who bears the ultimate e...read more

GSTR 1, GSTR 2, and GSTR 3B are GST return forms used for filing taxes in India.

• GSTR 1 is used for outward supplies, i.e., sales made by the taxpayer.

• GSTR 2 is used for inward supplies, i.e., purchases made by the taxpayer.

• GSTR 3B is a summary of both GSTR 1 and GSTR 2, used for filing taxes.

• Experience in accounts work varies, but familiarity with GST returns is necessary for an accountant.

Yes, I have experience working with GST compliances and I am confident in my ability to handle them effectively.

• I have worked with GST compliances in my previous roles as an accountant.

• I am familiar with the regulations and requirements related to GST.

• I have successfully managed GST filings and audits in the past.

• I stay updated on any changes in GST laws to ensure compliance.

• I am confident in my ability to handle GST compliances effectively and accurately.

The tax charged for transit of gold etc. varies depending on the country and specific regulations.

• Tax rates for transit of gold can range from 0% to 10% or more

• Some countries may have specific regulations or exemptions for gold transit

• Tax rates may also depend on the quantity and value of the gold being transported

Sundry debtors are customers who owe money to a company. TDS is tax deducted at source. GST is Goods and Services Tax.

• Sundry debtors are customers who have purchased goods or services on credit and owe money to the company.

• TDS stands for tax deducted at source, which is a system of collecting income tax in India.

• Section 194I of the Income Tax Act covers TDS on rent payments, while Section 194J covers TDS on professional services.

• To deduct TDS challan in income tax, the payer ...read more

The process involves recording financial transactions, preparing financial statements, and ensuring accuracy through reconciliations.

• Record all financial transactions in the appropriate accounts

• Prepare financial statements such as balance sheet and income statement

• Perform ledger reconciliation to ensure all transactions are accurately recorded

• Conduct bank reconciliation by comparing bank statements with internal records

• Investigate and resolve any discrepancies found during re...read more

An account in accounting is a record of financial transactions for a specific asset, liability, equity, revenue, or expense.

• An account is a unique record used to track the financial activity of a specific element within a company's financial statements.

• The golden rules of accounting are: Debit the receiver, Credit the giver; Debit what comes in, Credit what goes out; Debit expenses and losses, Credit income and gains.

• For example, when a company receives cash from a customer, ...read more

Yes, I am familiar with the processes of accounting.

• The processes of accounting include recording, classifying, summarizing, and interpreting financial transactions.

• Recording involves entering financial transactions into the accounting system.

• Classifying involves categorizing transactions into different accounts such as assets, liabilities, and equity.

• Summarizing involves creating financial statements such as the balance sheet and income statement.

• Interpreting involves analyz...read more

The golden rules of accountancy are basic principles that guide the recording of financial transactions.

• The first golden rule is the Personal Account rule, which states that all personal accounts are debited for the receiver and credited for the giver.

• The second golden rule is the Real Account rule, which states that all real accounts are debited for what comes in and credited for what goes out.

• The third golden rule is the Nominal Account rule, which states that all nominal a...read more

The ledger entry for a credit sale involves recording the increase in accounts receivable and the corresponding increase in sales revenue.

• Credit sale is a transaction where goods or services are sold on credit, meaning the payment is expected at a later date.

• To record a credit sale, the accounts receivable account is debited to increase the amount owed by the customer.

• Simultaneously, the sales revenue account is credited to reflect the increase in revenue generated from the s...read more

Yes, I am familiar with purchase entry and sales entry in accounting.

• Purchase entry involves recording the purchase of goods or services, including the amount, date, and vendor information.

• Sales entry involves recording the sale of goods or services, including the amount, date, and customer information.

• Both entries are essential for maintaining accurate financial records and tracking business transactions.

Taxable value of a bike purchased for Rs. 25000 with 12.5% GST.

• The taxable value is the cost of the bike minus the GST amount.

• GST value is calculated by multiplying the taxable value with the GST rate.

• Taxable value = Rs. 25000 / (1 + 12.5/100) = Rs. 22222.22

• GST value = Rs. 25000 - Rs. 22222.22 = Rs. 2777.78

Steps to create journal entries in Tally

• Open Tally and select the company for which you want to create journal entries

• Go to 'Accounting Vouchers' section

• Select 'F7: Journal' to create a new journal entry

• Enter the date, ledger accounts, and amounts for debit and credit sides

• Save the journal entry by pressing 'Ctrl+A'

Yes, I am able to conduct ledger and tax reconciliations independently.

• I have experience in conducting ledger and tax reconciliations on my own.

• I am familiar with the process of reconciling accounts and ensuring accuracy.

• I have successfully completed ledger and tax reconciliations in my previous roles.

• I am comfortable using accounting software and tools to perform reconciliations.

• I am detail-oriented and have a strong understanding of accounting principles.

Cash withdrawal and deposit entries are recorded in the cash book to track the movement of cash in and out of the business.

• Cash withdrawal entry involves debiting the cash account and crediting the relevant expense or liability account.

• Cash deposit entry involves debiting the relevant asset or liability account and crediting the cash account.

• Both entries should include the date, amount, and description of the transaction.

• For example, a cash withdrawal of $500 for office suppl...read more

Accrued refers to the accumulation of something over time, such as interest or expenses.

• Accrued refers to something that has been earned or incurred but not yet paid or received.

• It is commonly used in accounting to refer to expenses or revenues that have been recognized but not yet paid or received.

• For example, if a company has earned revenue but has not yet received payment, that revenue would be considered accrued.

• Similarly, if a company has incurred expenses but has not ye...read more

The accounting equation is a fundamental principle in accounting that states that assets equal liabilities plus equity.

• The accounting equation is expressed as: Assets = Liabilities + Equity

• It is used to ensure that the financial statements are balanced.

• Assets represent what a company owns, liabilities represent what a company owes, and equity represents the owner's interest in the company.

• The equation must always be in balance, meaning that the total value of assets must equa...read more

Amazon is registered in various countries where it operates.

• Amazon is registered in the United States as Amazon.com, Inc.

• In the United Kingdom, it is registered as Amazon UK Services Ltd.

• In India, it is registered as Amazon Seller Services Private Limited.

• Amazon also has registered entities in Canada, Australia, Japan, and many other countries.

TDS stands for Tax Deducted at Source. It is a tax collected by the government at the time of payment.

• TDS is a tax collected by the government at the time of payment.

• It is deducted from the income of the recipient.

• The rate of TDS varies depending on the type of payment and the recipient.

• TDS is calculated based on the income tax slab rate applicable to the recipient.

• There are various sections under TDS, such as Section 192 for salary, Section 194C for contractors, and Section ...read more

Yes, I am doing Sundry Debtors and Sundry Creditors reconciliation.

• I regularly reconcile Sundry Debtors and Sundry Creditors accounts to ensure accuracy and completeness of financial records.

• I compare the balances in the accounts with the corresponding customer or vendor statements to identify any discrepancies.

• I investigate and resolve any differences found during the reconciliation process.

• I maintain proper documentation of the reconciliation process for audit purposes.

• For ...read more

Depreciation is the decrease in value of tangible assets over time, while Amortization is the decrease in value of intangible assets over time.

• Depreciation is used for assets like buildings, machinery, and vehicles, while Amortization is used for assets like patents, copyrights, and trademarks.

• Depreciation is calculated based on the useful life of the asset, while Amortization is calculated based on the estimated time until the asset becomes obsolete.

• Depreciation is recorded ...read more

Yes, I can handle sales and purchases in Tally, perform bank reconciliation, and maintain daily cash book.

• I have experience in using Tally for sales and purchase entries

• I am proficient in bank reconciliation process

• I have maintained daily cash book in my previous job

• I can generate reports and analyze financial data using Tally

Bookkeeping is the process of recording financial transactions and maintaining financial records.

• Bookkeeping involves recording all financial transactions of a business.

• It includes maintaining records of income, expenses, assets, and liabilities.

• Bookkeeping is essential for preparing financial statements and tax returns.

• Examples of bookkeeping tasks include recording sales, tracking expenses, and reconciling bank statements.

Modern rules of accounts refer to the updated accounting standards and practices that are used in the current business environment.

• Modern rules of accounts are based on the Generally Accepted Accounting Principles (GAAP) and International Financial Reporting Standards (IFRS).

• They emphasize on transparency, accuracy, and consistency in financial reporting.

• Modern rules of accounts also include the use of technology in accounting processes, such as cloud-based accounting softwar...read more