Accounts Executive, Accounts Officer Interview Questions and Answers

The journal entry in the vendor account for returning goods is a credit entry to the vendor's account and a debit entry to the purchase return account.

• The journal entry will decrease the vendor's account balance and increase the purchase return account balance.

• The credit entry to the vendor's account represents the reduction in accounts payable.

• The debit entry to the purchase return account represents the increase in the purchase return expense.

• The specific accounts used may ...read more

The journal entry for goods destroyed through fire

• Debit the amount of goods destroyed to the Loss by Fire account

• Credit the amount of goods destroyed to the Inventory account

• If insurance is involved, credit the amount received from the insurance company to the Insurance Receivable account

Prepaid expenses impact balance sheet as assets and are treated as expenses in final accounts.

• Prepaid expenses are expenses paid in advance for goods or services that will be received in the future.

• They are recorded as assets on the balance sheet until they are used or expire.

• In the final accounts, prepaid expenses are treated as expenses and deducted from the total expenses to arrive at the net profit.

• If the prepaid expenses have not been fully utilized by the end of the acc...read more

Closing stock is an asset and is shown in the balance sheet, not in the trial balance.

• Closing stock is an inventory asset that is not an expense or revenue account.

• It is shown in the balance sheet under the current assets section.

• The trial balance only includes accounts that are used to calculate the company's net income.

• Closing stock is not used in the calculation of net income, hence it is not shown in the trial balance.

RCM stands for Reverse Charge Mechanism under GST where the recipient of goods or services pays the tax instead of the supplier.

• RCM is applicable when a registered dealer purchases goods or services from an unregistered dealer.

• RCM is also applicable in certain specified cases like import of services.

• The recipient of goods or services is required to pay the tax directly to the government and claim input tax credit.

• RCM is aimed at bringing more transparency and accountability i...read more

Depreciation is the decrease in value of an asset over time due to wear and tear, obsolescence or other factors.

• Depreciation is a non-cash expense that reduces the value of an asset on the balance sheet.

• It is calculated based on the useful life of the asset and the method of depreciation chosen.

• Examples of assets that can be depreciated include buildings, vehicles, machinery, and equipment.

• Depreciation can be straight-line, accelerated, or units of production method.

• Depreciat...read more