Accounting Interview questions and answers for Freshers। #upgradingway #interviewquestionandanswer

Interview questions and answers

31 Jul 202202:59

Summary

TLDRIn this informative video, Ania Singh introduces herself as a candidate for a junior accountant position and shares an interview scenario. She discusses her academic background in accounting, her preference for Microsoft Accounting Professional software, and her understanding of accounting terms like 'debit' and 'credit'. Ania also touches on business transactions, the balance sheet, TDS, GST, departmental accounting, inventory systems, and accounting standards by ICAI. The video aims to guide and prepare viewers for similar interviews, emphasizing the importance of a strong grasp of accounting principles and practices.

Takeaways

😀 Ania Singh is interviewing for a junior accountant position and shares tips for others preparing for similar interviews.
📚 She emphasizes the importance of being familiar with accounting applications, particularly Microsoft Accounting Professional for its reliability and efficiency.
🏷️ The abbreviations for debit and credit in accounting are 'DR' and 'CR', respectively.
💼 There are two types of business transactions in accounting: revenue and capital transactions.
📊 The balance sheet is a financial statement that presents a company's assets, liabilities, and equity at a specific point in time.
💧 TDS stands for 'Tax Deducted at Source' and is shown in the assets section of the balance sheet, following current assets.
🛃 GST, or Goods and Services Tax, is an indirect tax levied on the value of services or products sold to a customer, collected by the seller and paid to the government.
🏢 Departmental accounting involves creating and managing separate accounts for different departments, which are independently shown in the balance sheet.
🔄 The perpetual inventory system adjusts accounts continuously, while the periodic inventory system does so at set intervals.
📝 Ania acknowledges knowledge of accounting standards, with 33 standards published by the ICAI to ensure uniform policies and practices.
📈 The basic accounting equation is Assets = Liabilities + Owner's Equity, reflecting the fundamental relationship between assets, liabilities, and equity in accounting.

Q & A

Why did Ania choose accounting as her profession?
-Ania chose accounting as her profession because she was quite good at it throughout her studies and received a distinction in her master's degree, which led her to adopt this field.
Which accounting application does Ania prefer and why?
-Ania prefers Microsoft Accounting Professional because it offers reliable and fast processing of accounting transactions, which saves time and increases proficiency.
What are the abbreviations for debit and credit in accounting?
-The abbreviation for debit is 'DR' and for credit is 'CR'.
How many types of business transactions are there in accounting according to the script?
-According to the script, there are two types of transactions in accounting: revenue and capital.
What is a balance sheet and what does it include?
-A balance sheet is a statement that states all the liabilities and assets of a company at a certain point in time.
What does TDS stand for and what is its role in accounting?
-TDS stands for Tax Deducted at Source, and it is a system where tax is deducted at the source of income and deposited with the government.
Where is TDS shown in a balance sheet?
-In a balance sheet, TDS is shown in the assets section, right after the heading 'Current Assets'.
What is GST and how does it work?
-GST stands for Goods and Services Tax. It is an indirect tax levied on the value of services or products sold to a customer. The customer pays the GST, and the seller deposits it with the government.
What is departmental accounting and how is it managed?
-Departmental accounting is a type of accounting where separate accounts are created for different departments, which are managed and shown independently in the balance sheet.
What is the difference between perpetual and periodic inventory systems?
-In a perpetual inventory system, accounts are adjusted on a continual basis as transactions occur. In a periodic inventory system, accounts are adjusted at specific intervals, such as at the end of an accounting period.
What are the total number of accounting standards published by ICAI and their purpose?
-ICAI has published a total of 33 accounting standards so far. The purpose of these standards is to implement consistent policies and practices across the country.
What does ICAI stand for and what is its role?
-ICAI stands for the Institute of Chartered Accountants of India. It is a professional organization that sets standards for professional accounting practice in India.
How can the basic accounting equation be explained?
-The basic accounting equation can be explained as Assets = Liabilities + Owner's Equity, which represents the fundamental relationship between a company's assets, liabilities, and the equity of its owners.

Outlines

00:00

📚 Interview Introduction and Accounting Basics

Ania Singh introduces herself and begins an interview for a junior accountant position. She advises viewers to subscribe and hit the bell icon for updates. Ania greets the interviewer and confirms her name. The interview starts with questions about Ania's choice of accounting as a profession, her preferred accounting application, and her knowledge of accounting terms like 'debit' and 'credit'. She also explains the types of business transactions and the concept of a balance sheet.

💼 Understanding Taxes and Accounting Systems

The interview continues with questions about Tax Deducted at Source (TDS), its role in the balance sheet, and Goods and Services Tax (GST). Ania explains the purpose of GST and its function as an indirect tax. She also discusses the concept of departmental accounting, the difference between perpetual and periodic inventory systems, and her knowledge of accounting standards published by the Institute of Chartered Accountants in India (ICAI).

Mindmap

Keywords

💡Junior Accountant

A 'Junior Accountant' is an entry-level professional position in the field of accounting. It typically involves assisting with the preparation of financial statements, maintaining records, and performing other accounting tasks under the supervision of more experienced accountants. In the video script, Ania is interviewing for this position, indicating that the video is aimed at those who are starting their career in accounting.

💡Accounting Application

An 'Accounting Application' refers to software designed to manage and automate various accounting tasks such as financial reporting, accounts payable and receivable, and payroll. In the script, Ania mentions 'Microsoft Accounting Professional' as her preferred application, highlighting its reliability and efficiency in processing transactions, which is crucial for saving time and increasing proficiency in the accounting profession.

💡Debit (DR)

In accounting, 'Debit' is an entry on the left side of an account that either increases an asset or expense, or decreases a liability, equity, or revenue. It is abbreviated as 'DR'. The script mentions 'Debit' as one of the fundamental terms in accounting, which is essential for understanding the double-entry bookkeeping system.

💡Credit (CR)

'Credit' in accounting is an entry on the right side of an account that increases a liability, equity, or revenue, or decreases an asset or expense. It is abbreviated as 'CR'. The script provides the abbreviation and its significance in the context of accounting transactions, which is fundamental to the understanding of financial recording.

💡Business Transactions

In the context of accounting, 'Business Transactions' are events that have a financial impact on a company and need to be recorded in the company's books. The script specifies that there are two types of transactions: revenue and capital, which are the basis for the company's financial activities.

💡Balance Sheet

A 'Balance Sheet' is a financial statement that presents a company's financial position by listing all its assets, liabilities, and equity at a specific point in time. It is a snapshot of the company's financial health. In the script, the balance sheet is mentioned as a statement that includes all the company's liabilities and assets.

💡TDS (Tax Deducted at Source)

TDS stands for 'Tax Deducted at Source', which is a system where tax is deducted from the payment made to a service provider. It is a form of advance tax payment. In the script, TDS is discussed in the context of the balance sheet, where it is shown in the assets section, indicating its importance in accounting and tax compliance.

💡GST (Goods and Services Tax)

GST, or 'Goods and Services Tax', is an indirect tax levied on the supply of goods and services. It is a value-added tax paid by consumers and collected by businesses on behalf of the government. The script explains GST as an indirect tax, distinct from income tax, and its role in the transaction process between customers and sellers.

💡Departmental Accounting

'Departmental Accounting' is a method of accounting where each department within an organization is treated as a separate cost center with its own set of accounts. It allows for the tracking and analysis of the financial performance of individual departments. In the script, it is mentioned as a type of accounting that creates and manages separate accounts for different departments.

💡Inventory System

An 'Inventory System' is a method used to track and manage stock levels of goods in a business. The script mentions two types: 'Perpetual Inventory System', where inventory records are updated continuously as transactions occur, and 'Periodic Inventory System', where inventory records are updated at specific intervals, such as at the end of an accounting period.

💡Accounting Standards

In the field of accounting, 'Accounting Standards' are a set of rules and guidelines that govern the preparation of financial statements. The script refers to a total of 33 accounting standards published by ICAI (Institute of Chartered Accountants of India), which aim to ensure consistency and uniformity in financial reporting across the country.

💡ICAI (Institute of Chartered Accountants of India)

ICAI stands for 'Institute of Chartered Accountants of India', which is a national professional accounting body established to regulate the profession of chartered accountancy in India. It is responsible for setting accounting standards and conducting examinations for chartered accountants. The script mentions ICAI in the context of publishing accounting standards.

💡Basic Accounting Equation

The 'Basic Accounting Equation' is a fundamental principle in accounting that states the relationship between assets, liabilities, and owner's equity. It is expressed as Assets = Liabilities + Owner's Equity. The script explains this equation as the core concept of accounting, which helps in understanding the financial position of a business.

Highlights

Introduction of Ania Singh as a candidate for a junior accountant position.

Advice for viewers to subscribe and hit the bell icon for interview tips.

Ania's confidence in her accounting skills and decision to pursue it as a profession.

Preference for Microsoft Accounting Professional due to its reliability and efficiency.

Explanation of the abbreviations for debit and credit in accounting.

Identification of two types of business transactions in accounting: revenue and capital.

Description of a balance sheet as a statement of a company's assets and liabilities.

Understanding of TDS (Tax Deduction at Source) and its role in accounting.

Clarification of TDS placement in the assets section of a balance sheet.

Definition and explanation of GST (Goods and Service Tax).

Comparison of GST with sales service tax in different countries.

Introduction to departmental accounting and its role in managing separate accounts for departments.

Difference between perpetual and periodic inventory systems.

Knowledge of 33 accounting standards published by ICAI for uniform policies and practices.

Explanation of ICAI as the Institute of Chartered Accountants in India.

Basic accounting equation linking assets, liabilities, and owner's equity.