10+ Senior Accounts Officer Interview Questions and Answers

Closing stock appears in the credit side of the Trial Balance.

• Closing stock is an asset and assets have a normal credit balance.

• In the Trial Balance, assets are listed on the debit side and liabilities and equity on the credit side.

• Therefore, closing stock will appear on the credit side of the Trial Balance.

• Example: If the closing stock amount is $10,000, it will be listed on the credit side of the Trial Balance.

• This indicates that the business has $10,000 worth of inventory ...read more

DBK Provision entry is made to account for potential duty drawbacks, while bank collection entry of DBK income records the actual receipt of duty drawback income.

• DBK Provision entry is a provision made in the accounts to account for potential duty drawbacks that may be claimed in the future.

• This entry is made to ensure that the financial statements reflect the potential liability of duty drawbacks accurately.

• Example: Dr. Duty Drawback Provision Account, Cr. Provision for Duty...read more

A mortgage payment is a monthly payment made towards a loan secured by real estate, covering principal and interest.

• Mortgage payments typically consist of principal, interest, taxes, and insurance (PITI).

• For example, if you have a $200,000 mortgage at 4% interest for 30 years, your monthly payment would be approximately $955.

• Payments can be calculated using a mortgage calculator or formula: M = P[r(1+r)^n] / [(1+r)^n – 1], where M is monthly payment, P is loan amount, r is mo...read more

Analyzing balance sheets and income statements involves assessing financial health, performance, and trends over time.

• Review key ratios: liquidity ratios (e.g., current ratio) indicate short-term financial health.

• Examine profitability: net profit margin shows how much profit is generated from revenue.

• Analyze trends: compare current statements with previous periods to identify growth or decline.

• Assess asset management: inventory turnover ratio indicates how efficiently invento...read more

Yes, I have knowledge of TDS and GST.

• I have experience in filing TDS returns and calculating TDS on various payments.

• I am familiar with GST registration, filing GST returns, and maintaining GST records.

• I keep myself updated with the latest changes in TDS and GST regulations.

• I have worked with accounting software that handles TDS and GST calculations.

• For example, I have used Tally ERP 9 for TDS and GST compliance.

The Pythagorean theorem is never used in my work as a Senior Accounts Officer.

• The Pythagorean theorem is used to calculate the length of the sides of a right triangle.

• In accounting, we deal with financial transactions, budgets, and reports, not geometric shapes.

• Accounting principles and formulas such as revenue recognition, depreciation, and inventory valuation are more relevant to my work.

Sub contractor bill will be booked under the head of 'Sub Contractor Expenses' in the ledger.

• Create a ledger account for 'Sub Contractor Expenses'

• Enter the bill details in the ledger with the date, amount, and description

• Verify the bill with the purchase order and work order

• Ensure that the bill is approved by the authorized person

• Make the payment to the sub contractor and record it in the ledger

The accrual system of accounting recognizes revenues and expenses when they occur, regardless of cash flow.

• Revenues are recorded when earned, not when cash is received. Example: A company delivers a service in December but receives payment in January.

• Expenses are recorded when incurred, not when paid. Example: A business receives a utility bill in January for December's usage.

• This method provides a more accurate financial picture, reflecting all obligations and resources.

• Accr...read more

Bank reconciliation is the process of comparing a company's financial records with bank statements to ensure accuracy.

• Identifies discrepancies between bank statements and company records.

• Ensures all transactions are accounted for, such as deposits and withdrawals.

• Helps detect errors or fraudulent activities in financial records.

• Example: A company finds a bank fee not recorded in its books.

• Typically performed monthly to maintain accurate financial reporting.

A prepaid expense is a payment made in advance for goods or services to be received in the future, recorded as an asset.

• Prepaid expenses are recorded as current assets on the balance sheet.

• Common examples include prepaid insurance, rent, and subscriptions.

• They are gradually expensed over time as the benefits are realized.

• For instance, if you pay a year's insurance premium upfront, it is a prepaid expense.

• As each month passes, a portion of the prepaid insurance is expensed.

Provision entries are adjusting journal entries made at the end of an accounting period to allocate income and expenses to the appropriate period.

• Accrual of expenses such as salaries, rent, and utilities

• Recognition of revenue that has been earned but not yet invoiced

• Adjustment for depreciation of fixed assets

• Creation of allowance for doubtful debts

• Reversal of previous provisions if no longer required

GST stands for Goods and Services Tax. It is a value-added tax levied on the supply of goods and services in India.

• GST was implemented in India on July 1, 2017

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

• GST has 4 tax slabs - 5%, 12%, 18%, and 28%

• GST has helped in simplifying the tax structure and reducing tax evasion

• GST has also led to the creation of a unified market across India

TDS stands for Tax Deducted at Source, which is a tax collection mechanism in India.

• TDS is a tax that is deducted from the income of an individual or a company at the time of payment.

• It is deducted by the payer and deposited with the government on behalf of the payee.

• TDS is applicable on various types of income such as salary, interest, rent, commission, etc.

• The rate of TDS varies depending on the type of income and the amount being paid.

• TDS certificates are issued to the pay...read more

CTC current refers to the total cost to company at present including salary, benefits, and allowances.

• CTC current includes salary, bonuses, benefits, and allowances provided by the company.

• It is the total amount that the company spends on an employee annually.

• CTC current may vary based on the employee's level, experience, and additional perks.

• Example: If an employee's CTC current is $50,000, it means the company is spending that amount on the employee including salary, bonuse...read more

To book an AMC bill, record the expense in the appropriate account and allocate it to the relevant department or project.

• Ensure the bill is authorized and matches the terms of the AMC contract.

• Record the expense in the accounts payable ledger under the appropriate category.

• Allocate the expense to the specific department or project for accurate cost tracking.

• Verify the payment terms and due date to ensure timely payment.

• Maintain proper documentation for audit purposes.