Classification of Errors as per Accounting
Error of ommission
Error of commission
Error of dulplication
Error of principle
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Showing posts with label Interview questions and Ans. Show all posts
Showing posts with label Interview questions and Ans. Show all posts
Saturday, 4 February 2012
what is cash profit and how to define it ?
U know about accural basis and monetary basis. accural basis means every transaction which are done 1 financial year are entered and cash basis means every sales which are form in cash are enter. book profit means profit which are earned in 1 financial yera (accural basis) and cash profit means profit earned on the basis of cash basis. book profit are shown in the profit and loss a\c for the purpose of income tax and cash pofit are for bussiness men with help of this they known about what the standard of cash inflow and outflow.
AND
IT is profit after tax plus depreciation
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Friday, 5 August 2011
how to prepare trail balance
After posting the accounts in all the ledgers and find out all ledger's balance then transfer it into trial balance. Trial balance is work as statement in which to show exact balances of accounts of debit and credit balance.
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Diffrence between Statutory Audit and Internal Audit
Staturoty Audit conduct ones in a year by a govt appointed chartered accountans, and internal Audit can be do monthly and yearly by company/firm/individual/trust/ appointed Auditors.
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What is account opening and closing of accounts
account opening mean the beginning of financial year or carry forward of last year closing balance or open a new account on particular day.
account closing means at last of financial year the closing of all accounts or closing of particular transaction.
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What is FDI how to define
FDI means foreign direct investment. it means the other country may directly invested in our country,through buying the our country shares,joint venture,merging.
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What is trade finance
All those loan facilities provided by the lenders (usually banks) to support the trade activity mainly import or export of goods are individually called trade finance.
e-g Letter of Credit,Letter of Guarantee, Finance against imported merchandise.
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What is the journal entry for telephone charges
Booking of expenditure in advance.
Telephone charges payable a/c Dr.
To Idea A/c.
(Being telephone charges payable for the month of ....)
When payment Made:
Idea A/c Dr.
To Bank/Cash A/c.
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why we have to prepare income statement
To know the profit or loss for a particular accounting period.
income statement is prepared to know the income of the business, it is a statement which shows income form operating and non-operating operations and to know PBIT,PBT
AND PAT.
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What is the entry for outstanding expenses
Expense a/c Dr.
To O.S. Expense a/c Cr.
(Expense will reflect to P&L account and while O.S. Expense will show in Liablites (Balance Sheet )
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What is finalisation of Accounts
CLOSING OF ENTRIES AT THE END OF THE FINANCIAL YEAR AND PREPARATION OF PROFIT AND LOSS ACCOUNT AND BALANCE SHEET IN A VIEW TO KNOW THE PROFIT OR LOSS AND FINANCIAL STATUS OF THE ORGANIZATION IS CALLED FINALIZATION OF ACCOUNTS.
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What is outstanding income and accrued income
Outstanding income means it will be gain but accrued income and it's already gained.
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What is the secondery market in stock market
A market where investors purchase securities or assets from other investors, rather than from issuing companies themselves. The national exchanges - such as the New York
Stock Exchange and the NASDAQ are secondary markets.
it is the stock exchange market ,where we can resale our share or we can say trade on our share.
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What is RTGS in bank
The acronym “RTGS” stands for Real Time Gross Settlement.RTGS system is afunds transfer mechanism where transfer of money takes place from one bank to another on a “real time” and on “gross” basis. This is the fastest possible moneytransfer system through the banking channel.
Settlement in “real time” means payment transaction is not subjected to any waiting period. The transactions are settled as soon as they are processed. “Gross settlement” means the transaction is settled on one to one basis without bunching with any other transaction. Considering that money transfer takes place in the books of the Reserve Bank of India, the payment is taken as final and irrevocable.
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What is PF how to calculate
Provident Fund percentage is 12%
Employee share is 12%
Employer Share is 12% and
Administration Charges 1.61%
Total 25.61%(Employer should bear 13.61%)
It calculates per month (basic + DA) salary or and (Basic Salary) which ever is applicable in the stated salary
Example:
An employee get a salary Rs.5000/- that is Basic Rs.3000 + Allowance Rs.2000/-)
EPF = 3000 * 12% = Rs.360
He gets a net salary Rs.4640 (Rs.5000-Rs.360)
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What is EOQ and how to calculate EOQ
Economic Order Quantity (EOQ) is the amount of inventory to be ordered at one time for purposes of minimizing annual inventory cost ROOT OF 2*A*CP/CH.
EOQ =root 2DK/C
D= annual demand
K= ordering cost,
C= carrying cost
The basic Economic Order Quantity (EOQ) formula is as follows:
EOQ = Root of 2(annual usage in units) (Order cost)/annual carrying cost per unit)
Annual usage: Expressed in units, this is generally the easiest part of the equation. You simply input your forecasted annual usage.
Order Cost: Also known as purchase cost or set up cost, this is the sum of the fixed costs that are incurred each time an item is ordered. These costs are not associated with the quantity ordered but primarily with physical activities required to process the order.
Carrying cost:
Also called Holding cost, carrying cost is the cost associated with having inventory on hand.It is primarily made up of the costs associated with the inventory investment and storage cost. For the purpose of the EOQ calculation, if the cost does not change based upon the quantity of inventory on hand it should not be included in carrying cost.
In the EOQ formula, carrying cost is represented as the annual cost per average on hand inventory unit. Below are the primary components of carrying cost.
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Who are the bulls and bears in stock market
1) Investors who are expecting prices to rise are bull investors and they generally purchase the stock.
Investors who expect prices to go down are bear investors.they generally sell the stocks.
2) Those who invest in rising market and they think that it will continue so are called bullish investors.
Those who trade in falling markets and they think that it will continue so are called bearish investors.
3)Bulls are big investors n bearer r small investors.
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What is networth how to calculate
The amount by which assets exceed liabilities, This term can be applied to companies and individuals.
Net worth Formula: Networth = Assets - Liabilities
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What is the entry for TDS
A. TDS deducted on Due basis and Payment was made.
1)For TDS due-
Expenses A/C Dr.
To Party A/C.
To TDS Payable A/C.
(Being expenses was due and TDS was deducted)
2)For Payment of TDS
Party A/C Dr.
TDS Payable A/C Dr.
To Bank A/C.
(Being payment was made)
B. TDS was deducted on Payment basis
1) Party A/C Dr.
TO TDS Payable A/C.
TO Bank A/C.
(Being advance paid to party and TDS was deducted)
2) TDS Payable A/C Dr.
To Bank A/C.
(Being TDS was Paid)
3) Expenses A/c Dr.
To Party A/C.
(Being Expenses was Booked)
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What is the entry for Purchases
1) Purchase on credit:--
Purchase a/c .......Dr
To Supplier/Vendor a/c
2) Purchase on cash:--
Purchase a/c .......Dr
To cash a/c
3) Purchase (if mentioned goods i.e. furniture, pen etc.)
on cash
Furniture/pen a/c.......Dr
To cash a/c
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