In a business, sometimes it is not feasible to carry accounts of all the suppliers and customers in the main ledger. In such cases apart from General or main ledger, the control ledgers are maintained. Control ledgers records the individual accounts. In the end of the period, balance shown in the main ledger has to tally with the balance in the individual ledger accounts maintained in the control ledger.
2. What are the purposes of maintaining control ledgers?
Purposes of maintaining control ledgers are:
- Sundry Debtors
- Sundry Creditors
- Advances to Staff
Ledger is the book where the transactions of similar nature pertaining to a person, asset, liability, income or expenditure are drawn from the journal or subsidiary books where the transactions are recorded in a chronological order and posted account wise in the Ledger account. Ledger maintains all types of accounts i.e. Personal, Real and Nominal Account.
All the business transactions are first recorded in Journal or Subsidiary books in a chronological order when they actually take place and from there the transactions of similar nature are transferred to Ledger and this process of transferring is called as Ledger Posting.
5. What is Balancing of Ledger Account?
To know the net effect of all the business transactions recorded in the ledger account, the accounts need to be balanced. Thus, Balancing of Ledger Account means the balances of Debit and Credit side should be equal and this involves following steps:
-First total of both the sides are taken.
-Secondly difference between the totals of both the sides is calculated.
-If the debit side is in excess to the credit side then place the difference on the credit side by writing By Balance c/fd.
- If the total of credit side is in excess to the debit side, place the difference on the debit side by writing To Balance c/fd.
-After placing the difference on the appropriate side, make sure the totals of both the sides are equal.
6. Tell me reconciled checks display in bank reconciliation. How do I get rid of them?
To remove these checks from Bank Reconciliation, you must reconcile them outside of Bank Reconciliation.
7. Explain Journal & payment for entries service tax credit?
When we are making a payment for services which include service tax, Then entry will be
1. Paid to Port trust for haulage, tipping, sidding etc charges including Service Tax
Party A/c ( Port Services) Dr. 100000
Service tax Credit A/c Dr. 12360
To Bank A/c 12360
2.When making any payment of service tax after availing Servcie Tax Credit
Service Tax A/c Dr. 15000
To Service tax Credit a/c 12360
To Bank A/c 2640
3.When we receive refund
Bank A/c Dr. 12360
To Srevice Tax Credit A/c 12360
8. Tell me why depreciation is not charged on land?
Land is such an asset whose value goes on increasing, unlike other assets whose value gets reduce over a period of time. depreciation is charged on assets so that when in future , asset will be replace we will have money to purchase new asset. But in case of land this not happens that is why depreciation is not hcarged on land
9. Explain Service Tax Entry in SAP?
For service provider portion
Expense A/C Dr
Service tax deposit A/C Dr
To Creditor A/C
For Service Receiver portion
First you have to create a service tax payable A/C and a vendor A/C in the name of govt. Then pass the following entries
At the time of booking exp.
For liability creation
1)ST payable A/C dr
To vendor a/c
At the time of payment
For payment
2) vendor a/c dr
To bank a/c
For availment of credit
3) ST deposit a/c dr
To ST payable a/c
(OR) otherwise pass manual entry
ST deposit a/c dr
To bank a/c
Note: st deposit a/c is Input credit a/c
10. Explain Impact in books at the time of merger?
Problem statement- There are 2 Regions in a country REGION X & REGION- Y REGION X is closed and GL Trial Balance (TB) is transferred to REGION Y books ( X-TB is uploaded in Y books like a journal we do normally)- No Sub Ledger (SL) level transfer was done There was 1 invoices lying AP SL in X books ( xx722002 )- for 1000 GBP When TB was uploaded in Y books xx722002 was automatically credited by 1000 GBP in Y books Questiion 1- in this scenario are we going to have a mismatch in AP-SL of Y books if yes then how to correct the same. Question-2- can we transfer the SL of X to Y without impacting the P&L & B/S ( creditors account)??
11. Explain what is the difference between ledger and general ledger?
The General Ledger Contains all transaction records including Product Details, Rate, Qty, Cheq No Bank Name, Debit Amount, Credit and Balances where as Ledger Contains Simple transactions which is included debit, credit and Balances
12. Tell me what is the process flow for general ledger?
Gl set ups> open the periods of gl > create/reverse journal entries> post and review> conversion , revaluation, translation, consolidation can be run > review/correct balances > run accounting reports> close gl periods.
13. Tell me how would you account for the leasing of a vehicle?
Vechicle a/c dr-FA
To lease agreement a/c-Liabilitie
lease a/cdr-indirect exp
To cash/Bank-current assets
expense off the payment of lease from th p&l a/c
14. Are reconciliations part of financial statements?
yes reconciliation is necessary in financial statement .
15. Tell me what is meant by group chart of accounts in sap fico?
in sap fico we have three types of chartof accounts
> group chart of accounts
> country specific chart of accounts
> operative chart of accounts
group chart of accounts
the purpose of GCOA is to consolidate all the company codes balance sheet into one. the main purpose of this one is to external reporting.
Non Cash Transactions Should be Recorded In Journal Entry.
For Ex:
Salaries A/c Dr xxxxx
To Salaries Payble A/c xxxx.
17. Can you please explain the difference between General Ledger and Final accounts?
General ledger includes all ledgers after adjusting the balance where as final accounts is arranging ledger balance to get profit and loss as well as to know the finacial position.
Chart of Accounts is nothing but list of G/L Accounts used by the one r more company codes....the chart of accounts contains the account no & account name.the chart of accounts is the operating chart of accounts used for the daily postings in company code.
Suspense account is a temporary arrangement. This arrangement is made to make trial balance agree.
20. Explain what are the factors to determine the net profit?
the factors are
1. sales or Incomes
2. indirect incomes, misc, income
3. direct expense and indirect expense
4. depreciation
5. tax.
21. What are the impotent tables in peoplesoft finance modules AP, AR, AM, GL and po?
The important tables in Finance are as below
Account Payables:
DISTRIB_LINE
PAYMENT_TBL
PYMNT_VCHR_XREF
PYMNT_XREF_VW
VCHR_ACCTG_LINE
VENDOR
VENDOR_ADDR
VOUCHER
VOUCHER_LINE
Asset Managemnt
ASSET
ASSET_ACQ_DET
ASSET_ALL_VW
ASSET_CUSTODIAN
ASSET_LOCATION
COST
DIST_LN
Billing
BI_ACCT_ENTRY
BI_HDR
BI_LINE
BI_LINE_DST
Commitment Contol/GL
ACCOUNT_EXP_VW
ACCOUNT_REV_VW
DEPT_TBL
LED_DEFN_TBL
LOCATION_TBL
LEDGER
LEDGER_BUDG
LEDGER_BUDG_KK
LEDGER_KK
LEDGER_PROJ
KK_ACTIVITY_LOG
KK_SOURCE_HDR
KK_SOURCE_LN
Contracts
CNTRCT_HDR
CNTRCT_LINE
GL Journals
BUS_UNIT_TBL_GL
BUS_UNIT_TBL_GL
BUS_UNIT_TBL_XX
CAL_DETP_TBL
GL_ACCOUNT_TBL
JRNL_HEADER
JRNL_LN
SOURCE_TBL
Grants Management
GM_AWARD
GM_BUD_HDR
GM_BUD_LINE_DTL
GM_BUD_LINE_SUM
GM_PROPOSAL
GM_PROP_PROJ
Inventory Accounting
BUS_UNIT_TBL_INV
CM_ACCTG_LINE
CM_ACCT_POST_LN
INV_ITEMS
ITM_VENDOR
ITM_VNDR_UOM
ITM_VNDR_UOM_PR
MASTER_ITEM_TBL
POs
PO_HDR
PO_LINE
PO_LINE_DISTRIB
PO_LINE_MATCHED
PO_LINE_SHIP
Projects
PROJECT
PROJECT_HEADER
PROJ_RESOURCE
PROJECT_STATUS
PROJ_TYPE_TBL
Receiving
RECV_HDR
RECV_LN
Requisitions
REQ_HDR
REQ_LINE
REQ_LN_DISTRIB
22. Can you please explain the difference between Single Entry system & Double entry system?
Single entry system use only Debit or Credit only. If the payment made there is only one one debit only but Double entry system means for every Debit there is opposite Credit also there.
Example : cash payment made some one
debit for party at the same time credit to Cash.
23. Explain what are PTD, QTD and YTD?
period to date for ex - can be same as YTD if period = 1 year
quarter to date for ex - 1st qtr of calender year - Jan,Feb,Mar, All financial items (revenue+expenses) Jan-Feb is QTD Feb
year to date for ex - if fiscal year Jan-Dec - all financial items (revenue + expenses) from Jan-Aug is YTD Aug
24. What is Gl reconciliation?
GL Reconciliations are list of items that make up a GL account. For example, list of current unreversed accruals in a Sundry Creditors Balance sheet account. The items in Reconciliation should be identified and regularly monitored on a monthly basis to ensure items reverse out in late periods or are charged out to P&L.
25. Tell me What is how to exceed the funding budget amount limit in the actual journal?
We can exceed the funding budget through using alternative depreciation methods and through borrowing short term loans.
