1. Who owns the general ledger?
Every company has to maintain General Ledger.
So company owns the GL
2. Where should TDS received should show in balance sheet?
Assets Side: Advance In-Come Tax Ledger in current year
3. What is the TDS effect in balance sheet if TDS receipts?
In Assets Side: Advance In-Come-Tax A/c Dr with TDS received Amount and Party A/c Cr with TDS received Amount
4. What are the golden rules of accounting?
Personal-
Debit the receiver
Credit the Giver
Real-
Debit what comes in
Credit what goes out
Nominal-
Debit all expenses and losses
Credit all income and gains
5. Can I take service tax on freight outward?
Yes, you can take tax on freight outward. Because you are paid freight inclusive of service, tax so you can full credit availed on any expenditure where you paying service tax amount.
When any employer provides any service to his customer, which income is excess under the tax then company liable for the pay tax.
Service tax charged at rate 12 %( India) + 3% E.Cess & H. & E.Cess
=12.36%
In addition, service tax deposited of in under 5 days who you charged service tax to his customers.
In the payment of Service tax amount you can Credit availed during of the month.
Moreover, if any company purchased of any item that has Excise duty & E.Cess with E.Cess then you can credit availed when you received excise form to your seller.
7. What is Contingent Liabilities?
A continental liability may or may not be liability to the company. It is mandatory to show in Balance Sheet. Ex:- Ex gratia payable to Workers. Sometimes company has to pay, sometimes may not pay.
8. What is an adjusting journal entry?
Adjusting entries are those entries that passed to rectify an error or wrong entry already made some accounting soft wares have disabled edit function in the accounts, so the only way to undo the mistake is to pass a correction entry or adjusting entry.
9. What is the difference between provision and reverse?
Provisions are created in books as they are anticipated. Example: provision for depreciation
Reserves are created in books as a part of profits, which might used to purchase assets or to declare dividends.
10. What is the difference between Perpetual and Periodic Inventory systems?
In perpetual inventory system, the inventory account is adjusted continually throughout the accounting period.
Whereas in the Periodic Inventory System: - Recording inventory transactions periodically than recording them continually.
11. What is a Comprehensive Income?
Items GAAP does not want us to record in Income Statement. GAAP does not want financial statements provider to mislead users. Ex. items will record in comprehensive income are Unrealized gain or loss on available-for-sales securities; Unrecognized net gain or loss; Unrecognized prior service cost (credit); Unrecognized net gain or loss.
12. What are the four classifications of Bad and Doubtful Debts as per the context of the Bank?
Assets in Banks are Loans and Advances given to borrowers. These Assets are divided into 4 categories. They are
1. Standard Assets: These accounts are good and the borrower is repaying the loan as per stipulation and the security extended in good.
2. Substandard Asset: These accounts are good as per the security extended is good but the loans repayment is not up to the mark.
3. Doubtful Asset: These accounts have both the security as well the repayment stipulation in irregular method.
4. Bad Asset: These accounts are where the repayment is not forthcoming and the security extended becomes bad.
LC (Letter of Credit) is a set of documents which are very essential for goods being transported from one country to another. This set includes that of invoices, shipping documents, grantees and others.
14. What is dividend warrants?
Dividend is the part of profits payable to the owners of the company i.e., Shareholders. Some companies issues warrants to its shareholders instead of paying dividends in the form of cash in the form of document by mentioning the Warrant Price and other details.
The price mentioned in it is also called exercise price. Some times company may not specify the name of the holder. The holder of the document can fill it.
Advantages: It helps to the issuing company from paying the Tax.
It is easy to transfer from one person to other without any formalities
It helps to increase the share/capital of the company
15. What is double entry book keeping?
In double entry book, keeping method a journal entry is posted to both respective accounts for each transaction.
Let us say for sales transaction, debit entry posted to cash account credit entry posted to sales account.
Therefore, it is one of the methods to post accounting transactions.
Every transaction must be supported by any document. A trade bill is a supporting document of business activities like purchases, sales, receipts, payments etc...
17. What is meant by partitioning?
Partitioning is nothing but grouping based on the cluster, which is similar kind of response by a system.
18. What is the difference between personal account real account and nominal account?
The total business transactions are divided in to three They are Transactions related to persons, Transactions related to Things, Transactions related to incomes & expenditures. In accountancy we have three types of accounts they are - personal, real, nominal Personal accounts refers to all the transactions related to natural persons, artificial persons and representative persons ex:- rama, ravi, Indian bank, outstanding rent. ,. First category of transactions belongs to personal accounts RULE: debit the receiver and credit the giver Real accounts include things in the business i.e. assets. Second category of transactions related to Real accounts ex: buildings, machinery, cash etc. RULE: Debit what comes in and credit what goes out Nominal accounts includes all the transactions related to expenditures, incomes, losses, and profits. Ex: - rent paid, rent received, bad debts, profit on sale of an asset.
RULE: Debit all expenses and losses and credit all incomes and profits
19. What is inventory management?
Inventory management is an automated process of managing the stock of products and the various things involved with it Involves a retailer seeking to acquire and maintain a proper merchandise assortment while ordering, shipping, handling, and related costs are kept in check. Systems and processes that identify inventory requirements, set targets, provide replenishment techniques, and report actual and projected inventory status.
Retail banking refers to the banking done with the retail client (e.g. the normal people) rather than business or organizational customers.
Debtors account and bills receivable account are theoretically same. Both are called as receivables. When we sold goods to debtors account is debited. If we receive a bill from that debtor, we open bills receivable account by closing that debtor account. Thus, bills receivable account is nothing but debtor account. If the bill is dishonored on the due date, we again debit the debtor account in our books. For information and accounting purpose, we use both debtor account and bills receivable account.
22. What is balance sheet and off balance sheet?
Balance sheet is a statement which consists if asset and liabilities balance sheet is not called as account .their are 2 columns in balance sheet left hand side is called liabilities and right hand side is called asset.
23. What is an operative accounts?
Operative Accounts means Account is running/operating regularly, transaction is running from the account (debit/credit and deposit/withdrawal from account) this is known as Operative Account.
24. What is meant by daily accrual and booking?
Meaning of Accrual: Revenues and costs are accrued (gathered), that is recognized as they are earned or incurred (and not as money is received or paid) and recorded in the financial statements of the periods to which they relate. Accrual basis of accounting is one of the fundamental accounting assumptions underlying the preparation and presentation of financial statements.
25. What is meant by calendar maintenance?
Calendar maintenance means update the sales, purchase and accounts records. Simply meaning is maintaining the records monthly, quarterly, half-yearly, and yearly.
26. What is meant by turnover?
The turnover refers to the sales volume for a specific period like quarterly, semi annually or annually. It can be measured with sales volume figure or no. of days taken.
27. What is the difference between inactive accounts and dormant account?
Dormant accounts are those accounts in which there are transactions in the recent history (the stipulation may vary according to the company's rules). Inactive accounts are those accounts in which transactions are being made for long time.
28. What is meant by balancing?
Balancing means equalizing debit and credit side totals in a T-account.
If there is a deficit on side that is, debit, or credit a suspense account is opened with the balancing figure.
Shadow Balance in bank accounts is the balance unto which the subsequent debits can be posted.
Shadow Balance = Book Balance - Debit (yet to be authorized for posting).
Example: Book balance is 1000. There is a debit of 500. The debit is posted in the system and is sent for authorization. Now the Account shows a Shadow Balance of 500.
30. What is mean by Working Capital?
Working capital is a fund, which is used to run the organization for minimum actions.
31. What are time sheets? How are they maintained?
Timesheet is an approved document by an Authorized person of the particular Project where employee is working, for the work done by the concerned employee/consultant along with the description of work done. Time sheet contains the Billable/Non-Billable hours. Based on the Timesheet the Company will raise the invoice, for the consulting services provided by its employee, on the end-client.
32. What are the Steps involved in Project implementation?
Step involved in project implementation:
► Identification of the need
► Idea generation and screening of ideas
► Feasibility Study
► Project Development
► Implementation
► Controlling
33. What are the fictitious assets?
These are like intangible assets, which cannot be seen or touched. Actually, these are not assets but some expenditure, which cannot turn to profit and loss account of a particular period that is why these items are shown on assets side of balance sheet to be written off to P&L account in reasonable years.
34. What are the extraordinary items?
Transactions that happened due to catastrophic events i.e. unusual circumstance example: earthquake, flood, tsunami etc are called extraordinary items.
35. What are the functions of manger -accounts and manager-finance? Explain in detail.
When we see their difference from broad organizational review, the function of accounts manager are- The approval of the accounting system utilization and calculated amounts in supportable documents ,for example in journal vouchers and the approval of the accounting method. Also, change of the accounting procedures of the company.
