Fresh Basic Accounting Interview Questions & Answers:

1. Explain Entries for which there is no special journal?

-Entries for which there is no special journal : When the transactions cannot be recorded in the above sub journals then the same are entered in the journal proper.

2. What is Entries for rare transactions?

-Entries for rare transactions : Journal proper is used for rare transactions.

3. What is Rectification Entries?

-Rectification Entries : are passed to rectify the error detected the books through an entry in journal proper.

4. What is Adjustment Entries?

- Adjustment Entries : are passed at the end of an accounting period in order to modify the accounts.

5. What is Transfer Entries?

-Transfer Entries : are the entries which are passed in order to transfer one account to another account.

6. What is Closing Entries?

-Closing Entries : At the close of the accounting period balances from the various accounts are transferred in order to balance the books of accounts. Thus, this process of transferring balances of the trading and profit and loss account at the end of year is called closing the books and entries passed at that time are called closing entries.

7. What is Opening Entries?

-Opening Entries : are the entries which are made at the starting of the financial year.

8. What is Journalizing? What are the columns of a journal?

Journalizing is the process of recoding business transactions in the Journal in chronological order, as and when the transactions take place. Journal is also known as Book of Original Entry or the Book of Prime Entry.

Journal has following five columns:

-Date
-Particulars
-Ledger Folio
-Amount Debited
-Amount Credited

9. Explain Compound Journal Entry?

In day to day business, various similar transactions take place on the same day and every account is either debited or credited. Thus instead of passing different entries, a compound entry can be passed, which involves more than one debit or more than one credit or both. This makes the journal less bulky and avoids duplication.

10. List the type of transactions entered in Journal proper?

The Journal proper is used to record following transactions:-

-Opening Entries : are the entries which are made at the starting of the financial year.

-Closing Entries : At the close of the accounting period balances from the various accounts are transferred in order to balance the books of accounts. Thus, this process of transferring balances of the trading and profit and loss account at the end of year is called closing the books and entries passed at that time are called closing entries.

-Transfer Entries : are the entries which are passed in order to transfer one account to another account.

- Adjustment Entries : are passed at the end of an accounting period in order to modify the accounts.

-Rectification Entries : are passed to rectify the error detected the books through an entry in journal proper.

-Entries for rare transactions : Journal proper is used for rare transactions.

-Entries for which there is no special journal : When the transactions cannot be recorded in the above sub journals then the same are entered in the journal proper.

Examples of such transactions are: Distribution of goods as free sample, Goods destroyed by fire, etc