800+ Executive Accountant Interview Questions and Answers

The file extension name created by the TDS Return software is .txt.

• The TDS Return software generates a text file with the .txt extension.

• This file contains the details of tax deducted at source (TDS) by the deductor.

• The .txt file can be opened and viewed using any text editor or spreadsheet software.

• It is commonly used for filing TDS returns with the income tax department.

P2P cycle is the process of procuring goods and services from vendors. 3 way match is a process of matching invoice, purchase order and receipt.

• P2P cycle involves steps like requisition, purchase order, receipt, invoice and payment

• 3 way match ensures that the invoice matches the purchase order and receipt

• If approvals are missing for non-PO invoices, the invoice can be sent to the department head for approval or the vendor can be contacted for clarification

• Automated workflows ...read more

The HSN code for an annual turnover of more than 1.5 cr is required for tax purposes.

• HSN code stands for Harmonized System of Nomenclature code.

• It is a code used to classify goods and services for taxation purposes.

• The specific HSN code for an annual turnover of more than 1.5 cr may vary depending on the nature of the business.

• It is important to consult the relevant tax authorities or seek professional advice to determine the correct HSN code.

The journal entry when receiving invoices

• Debit the expense account for the amount of the invoice

• Credit accounts payable for the same amount

• If there is a discount offered, credit the discount account

• If there is tax included, credit the tax payable account

Before approving an invoice for payment, several steps should be taken to ensure accuracy and validity.

• Verify the accuracy of the invoice details, such as the amount, date, and vendor information.

• Check if the goods or services mentioned in the invoice were actually received or provided.

• Confirm that the invoice complies with company policies and procedures.

• Ensure that all necessary approvals and supporting documentation are attached to the invoice.

• Review the payment terms and ...read more

No, the business cannot claim GST input if it consumes everything for its own use.

• If a business consumes everything for its own use, there are no sales to generate revenue for GST input claims.

• GST input can only be claimed on purchases made for the purpose of generating taxable supplies.

• In this scenario, since the business is not making any sales to generate revenue, it cannot claim any GST input.

• Therefore, the business cannot claim any GST input even if it has GST liability ...read more

Tally accounting is an ERP software used for business functionalities like accounting, finance, inventory, payroll, etc.

• Tally accounting is an ERP software

• Used by small and large businesses

• Handles accounting, finance, inventory, payroll, etc.

• Helps in managing financial transactions

• Generates financial reports

• Provides real-time data

• Increases efficiency and accuracy

• Premises in accounting refer to fixed assets shown in the balance sheet

The process to issue shares in a private limited company involves several steps.

• Determine the number of shares to be issued

• Prepare the necessary documents, including the prospectus or offer letter

• Obtain approval from the board of directors and shareholders

• File the necessary forms and documents with the regulatory authorities

• Issue the shares to the subscribers and collect the subscription money

• Update the company's share register and issue share certificates

• Comply with any addi...read more

The steps for processing invoices include receiving the invoice, verifying the details, recording the invoice, obtaining approvals, and making the payment.

• Receive the invoice from the supplier.

• Verify the details on the invoice, such as the vendor name, invoice number, date, and amount.

• Record the invoice in the accounting system or software.

• Obtain necessary approvals, such as from the department head or manager.

• Match the invoice with the purchase order or receipt of goods/serv...read more

P2P is Procure-to-Pay, a process of purchasing goods and services and paying for them. Accounts and finance are different but related.

• Golden rules of accounts are Real, Personal, Nominal, Debit what comes in, Credit what goes out.

• Examples of Real accounts are land, building, machinery. Personal accounts are accounts of individuals, firms, companies. Nominal accounts are accounts of expenses, losses, gains.

• An invoice is a document that lists the goods or services provided and ...read more

The entries would include debiting Insurance Expense and crediting Prepaid Insurance.

• Debit Insurance Expense for ₹1,20,000 to recognize the expense in the current period.

• Credit Prepaid Insurance for ₹1,20,000 to show the amount paid in advance for future periods.

• Adjust Prepaid Insurance each month by debiting Insurance Expense and crediting Prepaid Insurance for 1/12th of the total amount.

• At the end of the year, Prepaid Insurance will be fully expensed and Insurance Expense w...read more

I am changing domain to explore new opportunities and challenges.

• I want to broaden my skill set and gain new experiences.

• I am looking for a more challenging role that aligns with my career goals.

• I am interested in exploring a different industry or sector.

• I want to work with a different team or company culture.

• I am seeking better work-life balance or location.

• Example: I am currently working in the IT industry, but I want to transition to finance because I have always been inte...read more

Secondary market refers to the buying and selling of securities that have already been issued.

• It is also known as aftermarket

• Investors buy and sell securities among themselves without the involvement of the issuing company

• Examples include stock exchanges, bond markets, and futures markets

Recording sales transactions with advance, UPI, and credit payments for goods sold.

• Goods sold on 1 March 2020 for Rs. 69,000.

• 40% advance payment received: Rs. 27,600 (1 week prior).

• 30% payment made at delivery via UPI: Rs. 20,700.

• Remaining 30% on credit: Rs. 20,700, paid later by NEFT.

• Journal entries include sales revenue, cash received, and accounts receivable.

GST is an indirect tax on the supply of goods and services in India.

• GST stands for Goods and Services Tax.

• It is a comprehensive tax levied on the supply of goods and services in India.

• It is a destination-based tax, which means that it is levied at the point of consumption.

• GST has replaced multiple indirect taxes like excise duty, service tax, VAT, etc.

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

TCS is Tax Collected at Source. TAN is Tax Deduction and Collection Account Number. E-way challan is an electronic waybill for transportation of goods. SLA is Service Level Agreement. One time vendor is a vendor who is used only once for a specific transaction.

• TCS is a tax collected by the seller from the buyer at the time of sale.

• TAN is a 10-digit alphanumeric number used as an identification number for persons deducting or collecting tax at source.

• E-way challan is a documen...read more

Unapplied payment is a payment received but not yet applied to a specific invoice or account, while unidentified payment is a payment received but cannot be matched to any invoice or account.

• Unapplied payment is a temporary holding account for payments that have not yet been allocated to a specific invoice or account.

• Unidentified payment is a payment that cannot be matched to any invoice or account, usually due to incorrect or incomplete information provided by the payer.

• Unap...read more

Reconciliation of GST involves comparing the GST amounts recorded in the books with those reported to the tax authorities.

• Ensure all GST transactions are recorded accurately in the books

• Compare the total GST amounts recorded in the books with the GST amounts reported on the GST returns filed with the tax authorities

• Investigate and rectify any discrepancies found during the reconciliation process

• Reconcile the GST accounts regularly to ensure accuracy and compliance with tax re...read more

The stages of the double entry system are journalizing, posting, balancing, and preparing financial statements.

• Journalizing: Recording transactions in the journal.

• Posting: Transferring the journal entries to the respective accounts in the general ledger.

• Balancing: Ensuring that the total debits equal the total credits in each account.

• Preparing financial statements: Summarizing the financial information in the form of income statements, balance sheets, and cash flow statements...read more

In 5 years, I see myself as a successful Accounts Executive, having gained valuable experience and contributing to the growth of the company.

• I plan to continue learning and growing in my role as an Accounts Executive

• I hope to have taken on additional responsibilities and contributed to the success of the company

• I aim to have built strong relationships with clients and colleagues

• A balance sheet is a financial statement that shows a company's assets, liabilities, and equity at ...read more

Debit Note is a document issued by a buyer to a seller to request a credit for overcharged or returned goods. Credit Note is a document issued by a seller to a buyer to reduce the amount owed due to overpayment or returned goods.

• Debit Note is issued by the buyer to request a credit from the seller.

• It is used when there is an overcharge or return of goods.

• Debit Note reduces the amount payable by the buyer to the seller.

• Example: A buyer receives an invoice with an incorrect amo...read more

Expenses paid in next month but shown in current month provision explained.

• Expenses are recorded in the month they are incurred, not when they are paid

• Provision is made for expenses that are expected to be incurred but not yet paid

• If an expense is paid in the next month, it will still be recorded in the current month's provision

• This is done to ensure accurate financial reporting and forecasting

Debit represents incoming funds while credit represents outgoing funds.

• Debit is used to record an increase in assets or a decrease in liabilities or equity.

• Credit is used to record a decrease in assets or an increase in liabilities or equity.

• For example, when a company receives cash from a customer, it would debit cash and credit accounts receivable.

• Conversely, when a company pays a supplier, it would credit cash and debit accounts payable.

Bank Reconciliation Statement is a document that compares the bank statement with the company's records to identify any discrepancies.

• Bank Reconciliation Statement is prepared to ensure that the company's records match with the bank's records.

• It helps in identifying any errors or omissions in the company's accounting records.

• It includes comparing the bank statement balance with the company's cash book balance.

• Reconciling items may include outstanding checks, deposits in trans...read more

The journal entry for goods purchased on credit involves recording the increase in inventory and the corresponding increase in accounts payable.

• Debit the inventory account to increase it

• Credit the accounts payable account to record the liability

• Example: Debit Inventory $1,000, Credit Accounts Payable $1,000

The process of vendor invoice booking in SAP involves several steps.

• The vendor invoice is received and verified for accuracy.

• The invoice is then entered into the SAP system.

• The system checks for any discrepancies or errors.

• The invoice is then posted and a document number is generated.

• The vendor is notified of the payment due date.

• The payment is made on the due date.

• The payment is then recorded in the SAP system.

T-codes used for running payments and finding errors in SAP.

• F110 - Automatic Payment Run

• FBZ5 - Payment Program: Error Analysis

• FBZ0 - Payment Proposal

• FBL1N - Vendor Line Items

• FBL5N - Customer Line Items