100+ Junior Accountant Interview Questions and Answers

Heads of income are categories under which income is classified for taxation purposes.

• There are five heads of income: salary, house property, business/profession, capital gains, and other sources.

• Salary includes income from employment.

• House property includes rental income.

• Business/profession includes income from self-employment.

• Capital gains include income from sale of capital assets.

• Other sources include income from sources not covered under the other heads.

• Each head has its...read more

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

• The first golden rule is the Personal Account rule, which states that debit the receiver and credit the giver.

• The second golden rule is the Real Account rule, which states that debit what comes in and credit what goes out.

• The third golden rule is the Nominal Account rule, which states that debit all expenses and losses and credit all incomes and gains.

Assets are resources owned by a company while liabilities are obligations or debts owed by a company.

• Assets include cash, accounts receivable, inventory, property, and equipment.

• Liabilities include accounts payable, loans, and accrued expenses.

• Assets are listed on the left side of the balance sheet while liabilities are listed on the right side.

• The difference between assets and liabilities is known as equity or net worth.

GST return filing is important for compliance and claiming input tax credit.

• It ensures compliance with GST laws and regulations.

• It allows businesses to claim input tax credit on purchases.

• Late filing can result in penalties and interest charges.

• It provides transparency in the tax system and helps prevent tax evasion.

• Examples of GST returns include GSTR-1, GSTR-3B, and GSTR-9.

GST stands for Goods and Services Tax. It is a consumption-based tax levied on the supply of goods and services.

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

• It was implemented on 1st July 2017.

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

• It aims to simplify the tax structure, reduce tax evasion, and promote ease of doing business.

• There are different GST rates for different goods and services, such as 5%, 12%,...read more

Prepayment is an advance payment made for goods or services. AR ageing is the analysis of outstanding customer invoices. COGS is the cost of producing or purchasing goods sold. Direct expenses are costs directly related to the production of goods or services. Indirect expenses are costs not directly related to production. Hedging is a financial strategy to reduce risk. Journal entry for OS salary is debit salary expense, credit accounts payable. Journal entry for prepaid sala...read more

Yes, I am proficient in both MS Word and MS Excel.

• I have experience in creating and formatting documents in MS Word.

• I am skilled in using formulas, functions, and charts in MS Excel.

• I have used MS Excel for data analysis and financial modeling.

• I am familiar with keyboard shortcuts and other time-saving features in both applications.

Tally accounting is an ERP software used by businesses for accounting, finance, and inventory management.

• Tally accounting is used by small and large businesses alike

• It helps with accounting, finance, inventory management, and other business functionalities

• It is an ERP software, meaning it integrates different business processes into one system

• Tally accounting is popular in India and other countries in Asia

To minimize and check for errors, I double-check my work and use tools like spell-check and formulas.

• I review my work multiple times before submitting it

• I use tools like spell-check and grammar-check to catch any errors

• I use formulas and templates to ensure accuracy

• I ask a colleague to review my work for a fresh perspective

• I take breaks to avoid fatigue and maintain focus

Golden rules of accounting are basic principles to maintain financial records accurately.

• Debit the receiver, credit the giver

• Debit what comes in, credit what goes out

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

A balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

• It provides a snapshot of a company's financial position

• Assets are listed first, followed by liabilities and equity

• The equation Assets = Liabilities + Equity must always balance

• It helps investors and creditors assess a company's financial health

• Examples of assets include cash, inventory, and property

• Examples of liabilities include loans, accounts payable...read more

Yes, HR needs can be estimated by examining past trend in trend analysis technique.

• Trend analysis technique involves analyzing past data to identify patterns and trends.

• By examining past HR needs, trends can be identified and used to estimate future HR needs.

• Factors such as employee turnover, growth rate, and industry trends can be analyzed to estimate HR needs.

• Trend analysis can also help in identifying areas where HR resources can be optimized.

• Regular trend analysis can hel...read more

Two ways to estimate bad debt are aging method and percentage of sales method.

• Aging method involves categorizing accounts receivable by age and estimating the percentage of each category that will become bad debt.

• Percentage of sales method involves estimating the percentage of sales that will become bad debt based on historical data or industry averages.

• Other methods include customer creditworthiness analysis and industry-specific factors.

• It is important to regularly review a...read more

Outstanding expenses are expenses that have been incurred but not yet paid.

• Outstanding expenses are recorded as a liability in the balance sheet.

• They are also known as accrued expenses.

• Examples include rent, salaries, and taxes.

• They are usually paid in the next accounting period.

• They are shown in the profit and loss account as an expense.

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

To find the amount of the product without tax, you need to divide the price by 1.18.

• Divide the price by 1.18 to get the amount without tax

• Amount without tax = Price / 1.18

• In this case, Amount without tax = 100 / 1.18 = 84.75 rs

Accounting golden rules are fundamental principles that guide the recording of financial transactions.

• The first golden rule is the Debit and Credit rule, which states that for every transaction, there must be at least two accounts involved, with one account debited and another account credited.

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

• The third...read more

Question 1 is asking about the nature of the work while Question 2 is asking about career growth in the profession.

• Question 1: Explain the duties and responsibilities of a Junior Accountant.

• Question 2: Discuss the various ways to advance in the accounting profession such as obtaining certifications, pursuing higher education, and gaining experience.

• Provide examples of successful career paths within the company or industry.

• Emphasize the importance of continuous learning and st...read more

Prepaid expenses are expenses paid in advance but not yet incurred. Journal entry involves debiting prepaid expense and crediting cash/bank account.

• Prepaid expenses are recorded as assets on the balance sheet

• When the expense is incurred, the prepaid asset is reduced and the related expense is recognized

• Journal entry for prepaid expenses involves debiting prepaid expense account and crediting cash/bank account

• Example: Rent paid in advance for the next 6 months would be recorde...read more

Account payable is the amount of money a company owes to its suppliers or vendors for goods or services received but not yet paid for.

• It is a liability on the company's balance sheet

• It represents the amount owed to suppliers or vendors

• It is recorded as a credit in the company's books

• Examples include unpaid invoices for raw materials, utilities, or rent

• It is important to manage and pay accounts payable on time to maintain good relationships with suppliers

Indirect expenses are costs that cannot be directly attributed to a specific product or service.

• Indirect expenses are also known as overhead costs.

• Examples of indirect expenses include rent, utilities, and office supplies.

• These expenses are necessary for the operation of a business but are not directly tied to the production of goods or services.

• Indirect expenses are typically allocated to products or services based on a predetermined formula or percentage.

• Understanding indir...read more

GST rates, 3B & 2A, and due date for filing.

• GST rates vary depending on the goods or services provided

• 3B is a monthly summary of outward and inward supplies

• 2A is a monthly summary of inward supplies

• Due date for filing 3B is 20th of the following month

• Due date for filing 2A is 10th of the following month

The golden rules of Accounts 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.

• For example, when cash is received, it is debited as it comes in. When cash is paid out, it is credited as it goes out.

• Similarly, when goods are purchased on credit, the receiver is debited. When goods are sold on...read more

GST Return File and Registration is a process for filing tax returns and registering for the Goods and Services Tax (GST) in a country.

• GST Return File is the process of submitting tax returns to the tax authorities, providing details of sales, purchases, and tax liabilities.

• GST Registration is the process of obtaining a unique identification number (GSTIN) for businesses to collect and remit GST.

• GST Return File and Registration are mandatory for businesses meeting the turnove...read more

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.

• Accounting principles include the accrual principle, the consistency principle, the materiality principle, and the conservatism principle.

• Accrual principle states that revenue and expenses should be recognized when earned or incurred, not when cash is received or paid.

• Consistency principle requires that accounting metho...read more

The basic account equation is Assets = Liabilities + Equity.

• Assets are what a company owns or has control over, such as cash, inventory, and property.

• Liabilities are what a company owes to others, such as loans and accounts payable.

• Equity is the residual interest in the assets of the company after deducting liabilities.

• The equation must always balance, meaning that the total assets must equal the total liabilities and equity.

The percentage for home loan varies depending on the lender, loan amount, and borrower's credit score.

• The percentage for home loan can range from 2.5% to 5% depending on the lender.

• The loan amount and borrower's credit score can also affect the percentage for home loan.

• A higher loan amount may result in a higher percentage for home loan.

• A borrower with a lower credit score may also have a higher percentage for home loan.

• It is important to shop around and compare offers from d...read more

The important finance statements are the balance sheet, income statement, and cash flow statement.

• Balance sheet shows the company's assets, liabilities, and equity at a specific point in time.

• Income statement shows the company's revenue, expenses, and net income over a period of time.

• Cash flow statement shows the company's cash inflows and outflows over a period of time.

• These statements are important for investors, creditors, and management to assess the financial health of t...read more

A blanket order is a purchase order that covers multiple deliveries over a period of time, usually for a fixed amount.

• It is a type of purchase order.

• It covers multiple deliveries over a period of time.

• It is usually for a fixed amount.

• It is commonly used for recurring orders of the same item.

• It simplifies the ordering process and reduces administrative costs.

• Example: A company may place a blanket order for office supplies for the entire year.

• Example: A restaurant may place a b...read more

Accounting concepts and principles are the foundation of accounting practices.

• Accounting concepts are the basic assumptions and guidelines that govern the preparation of financial statements.

• Accounting principles are the rules and guidelines that companies must follow when reporting financial data.

• Examples of accounting concepts include the going concern concept, the accruals concept, and the consistency concept.

• Examples of accounting principles include the matching principle...read more

There are several types of accountants, including public accountants, management accountants, government accountants, and internal auditors.

• Public accountants work for accounting firms and provide services to clients such as tax preparation and financial statement audits.

• Management accountants work for companies and provide financial analysis and advice to help with decision-making.

• Government accountants work for federal, state, or local government agencies and ensure complia...read more

A cash flow statement is a financial statement that shows the inflows and outflows of cash in a business over a specific period of time.

• It provides information about the cash generated from operating activities, investing activities, and financing activities.

• Operating activities include cash received from sales, payment to suppliers, and payment to employees.

• Investing activities include cash used for purchasing or selling assets like property, plant, and equipment.

• Financing a...read more

Building confidence and overcoming fear of people requires practice, positive self-talk, and seeking support.

• Practice speaking in front of a mirror or with a friend

• Challenge negative self-talk and replace with positive affirmations

• Join a public speaking or social group to gain experience and support

• Focus on the message you want to convey rather than your fear

• Remember that everyone feels nervous at times and it's okay to make mistakes

Input tax credit is a mechanism to avoid cascading effect of taxes in GST system.

• Input tax credit allows businesses to claim credit for taxes paid on inputs used in the production of goods or services.

• It helps in avoiding double taxation and reduces the overall tax burden on businesses.

• For example, if a manufacturer pays GST on raw materials used in production, they can claim input tax credit on the GST paid when they file their GST returns.

• Input tax credit is available only ...read more

A bank reconciliation statement is a document that compares the bank statement with the company's cash records to identify any discrepancies.

• It is used to ensure that the company's records match the bank's records.

• It lists all the transactions that have not yet been recorded by the bank or the company.

• It helps in identifying errors, such as missing deposits or unauthorized withdrawals.

• It includes adjustments for items like bank charges, interest, and errors.

• The final goal is ...read more

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

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

• These rules ensure that every transaction is recorded accurately and consistently.

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

I have a Bachelor's degree in Accounting and Finance.

• I have a strong understanding of financial principles and practices.

• I am proficient in using accounting software and tools.

• I have experience in preparing financial statements and reports.

• I am knowledgeable in tax regulations and compliance.

• I have excellent analytical and problem-solving skills.

• I am detail-oriented and have strong organizational skills.

• I have good communication and interpersonal skills.

• I am a quick learner a...read more

The interest rate for fixed deposit varies depending on the bank and the duration of the deposit.

• Interest rates for fixed deposits are generally higher than savings account rates.

• The longer the duration of the deposit, the higher the interest rate.

• Different banks offer different interest rates for fixed deposits.

• Interest rates for fixed deposits can range from 2% to 7% depending on the bank and duration.

• Fixed deposits are a low-risk investment option for individuals.

Prioritize tasks, delegate if possible, and communicate with team members.

• Create a to-do list and prioritize tasks based on urgency and importance.

• Delegate tasks to team members if possible and communicate clearly about expectations.

• Take breaks and avoid multitasking to maintain focus and productivity.

• Ask for help or additional resources if necessary.

• Review and adjust workload regularly to ensure deadlines are met.

• Example: If a deadline is approaching, prioritize that task an...read more

P2P process is the procurement-to-payment process that involves all activities from purchasing to payment of goods and services.

• P2P process includes requisitioning, purchasing, receiving, invoicing, and payment

• It ensures that goods and services are procured at the best price and delivered on time

• ERS (Evaluated Receipt Settlement) is a P2P process where payment is made based on the receipt of goods or services

• ERS eliminates the need for a separate invoice and reduces the time ...read more

Yes, I have learned Tally ERP9.

• I have completed a Tally ERP9 course from XYZ institute.

• I have hands-on experience in using Tally ERP9 for maintaining accounts.

• I am proficient in creating invoices, managing inventory, and generating financial reports using Tally ERP9.

Accounting is the process of recording, classifying, and summarizing financial transactions to provide information that is useful in making business decisions.

• Accounting involves recording financial transactions

• It includes classifying transactions into categories such as assets, liabilities, and equity

• Summarizing financial information to create financial statements

• Provides information for decision making and financial analysis

• Examples include balance sheets, income statements...read more

The basic accounting equation is Assets = Liabilities + Equity.

• The equation represents the fundamental relationship between a company's assets, liabilities, and equity.

• Assets are the resources owned by the company, such as cash, inventory, and property.

• Liabilities are the company's debts or obligations, such as loans or accounts payable.

• Equity represents the owner's interest in the company and is calculated as assets minus liabilities.

• The equation must always balance, meaning...read more

Accounts refer to the financial records of an organization, including transactions, assets, liabilities, and equity.

• Accounts are used to track and record financial activities of a business or individual.

• They include various types such as assets, liabilities, equity, revenue, and expenses.

• Accounts are organized in a chart of accounts, which provides a systematic structure for recording and reporting financial information.

• Examples of accounts include cash, accounts receivable, ...read more

Balance sheet is a financial statement that shows a company's assets, liabilities, and equity at a specific point in time.

• Balance sheet is a snapshot of a company's financial position at a specific point in time

• It shows the company's assets, liabilities, and equity

• Assets are what the company owns, liabilities are what the company owes, and equity is the difference between the two

• The balance sheet follows the accounting equation: Assets = Liabilities + Equity

• Example: A company...read more

Cash book is a financial record that tracks all cash transactions of a business.

• It records all cash receipts and payments

• It helps in maintaining cash balance

• It is a subsidiary book of accounts

• It is used to prepare the cash flow statement

• Example: Petty cash book, Bank cash book

Equity is not a liability to a company, it represents ownership in the company.

• Equity represents the residual interest in the assets of a company after deducting liabilities.

• It is the ownership interest of shareholders in a company.

• Equity is shown on the balance sheet as a separate section from liabilities.

• Unlike liabilities, equity does not have an obligation to be repaid.

• Equity can increase through the issuance of new shares or retained earnings.

• Examples of equity accounts ...read more