100 Senior Accountant Interview Ques ons and Answers

1. Basic Accounts

 Transac ons:

o Salary Payable, Rent Receivable, Purchases & Sales

o Purchase Return, Sales Return

o Capital Introduced, Drawings

o Cash Deposited/Withdrawn

o Bad Debt, PBDD (Provision for Bad & Doub ul Debts)

2. Advance Accoun ng

 Accoun ng Standards: AS 1, 2, 6, 9, 10, 11, 16, 18, 20

 Key Areas:

o Deferred Tax Asset & Liability

o Set-Off Entries

o Provision for Taxa on & Adjustment Entries

o Vouching of Expenses and Income

o Verifica on of Balance Sheet items

o Cash Flow Statement

o Schedule III Balance Sheet Format

o Deprecia on per Companies Act, 2013

3. So ware Knowledge

 Tally Prime

 QuickBooks

 Zoho

 SAP
4. GST (Goods & Services Tax)

 Returns: GSTR 1, 3B, 9/9C, 4

 Reconcilia on: GSTR 2B Reco

 Key Concepts:

o RCM (Reverse Charge Mechanism)

o Block Credit, LUT Filing

o Rules 42, 45; Sec 16

o Time & Place of Supply

o GST Portal

o Invoice Management System, E-Invoicing, E-Way Bill

5. TDS (Tax Deducted at Source)

 Forms: 194A, 194B, 194Q, 206C(1H)

 Ac vi es:

o TDS/TCS Filing

o TDS Challan, Correc ons

o Form 26AS

6. Advance Tax

 Focus Areas:

o Advance Tax Calcula on

o Advance Tax Challan

7. Income Tax

 Sec ons: Sec 40(A)(2), 40(A)(3), 43B, 32, 56

 Returns: ITR 1, ITR 4

8. ROC (Registrar of Companies)

 Compliance Filings:

o AOC 4, MGT 7/7A

o DPT 3, DIR KYC

1. Basic Accounts

Q1. What is the journal entry for salary payable?

A:

Salary A/C Dr

To Salary Payable A/C

Q2. How do your account for rent receivable?

A:

Rent Receivable A/C Dr

To Rent Income A/C

Q3. What is the journal entry for a purchase transac on?

A:

Purchase A/C Dr

To Creditor A/C

Q4. How do you record a sales return?

A:

Sales Return A/C Dr

To Debtor A/C

Q5. How is capital introduced recorded?

A:

Cash/Bank A/C Dr

To Capital A/C

Q6. Define drawings and their entry.

A: Drawings are withdrawals by the owner.

Drawings A/C Dr

To Cash/Bank A/C
Q7. What is the entry for cash deposited into a bank?
A:

Bank A/C Dr

To Cash A/C

Q8. How do your account for bad debts?

A:

Bad Debts A/C Dr

To Debtors A/C

Q9. What is PBDD?

A: Provision for Bad and Doub ul Debts – a reserve for expected bad debts.

Q10. What is the difference between sales and revenue?

A: Sales are opera onal income; revenue includes all income (sales + other income).

Q11. What are purchase returns?

A: Goods returned to suppliers due to damage, etc.

Q12. Is capital a liability?

A: Yes, for accoun ng purposes, capital is treated as the owner’s liability.

Q13. What is double-entry bookkeeping?

A: Every transac on affects two accounts (Debit and Credit).

Q14. What is a journal voucher?

A: A document recording a journal entry.

Q15. What is the difference between accounts payable and accounts receivable?
A: Payable = liability, Receivable = asset.
2. Advance Accoun ng

Q16. What is AS 10?

A: Accoun ng Standard 10 deals with Property, Plant, and Equipment.

Q17. What is a deferred tax asset?

A: A tax amount recoverable in the future due to temporary differences.

Q18. Give an example of a deferred tax liability.

A: Deprecia on difference between tax books and financial books.

Q19. What is a set-off entry?

A: Adjus ng one amount against another (e.g., receivable against payable).

Q20. How do you calculate deprecia on as per Companies Act 2013?

A: Based on the useful life of assets defined in Schedule II.

Q21. What is vouching?

A: Verifying accoun ng entries with suppor ng documents.

Q22. What is the cash flow statement used for?

A: Shows inflow and ou low of cash in opera ng, inves ng, and financing ac vi es.

Q23. What is a provision for taxa on?

A: Es mated tax liability created before the actual assessment.

Q24. What is the adjustment entry for accrued expenses?

A:

Expense A/C Dr

To Outstanding Expense A/C

Q25. What is a con ngent liability?

A: A possible liability depending on future events (e.g., court cases).
Q26. Explain AS 2.
A: Valua on of Inventories.

Q27. Explain AS 6.
A: (Withdrawn and merged into AS 10) – it previously dealt with Deprecia on.

Q28. What is the schedule III balance sheet format?

A: A prescribed format for presen ng financial statements in India.

Q29. What is income recogni on?

A: Recognizing revenue when earned, not when received.

Q30. How do you verify expenses?

A: By checking invoices, approvals, and comparing with budgets.
3. So ware

Q31. What is Tally Prime used for?

A: Accoun ng, inventory, payroll, GST, and TDS management.

Q32. What are the key features of QuickBooks?

A: Invoicing, bank feeds, reconcilia on, payroll, and reports.

Q33. What is Zoho Books?

A: A cloud-based accoun ng so ware for SMEs.

Q34. What modules are used in SAP for accoun ng?

A: FI (Financial Accoun ng), CO (Controlling), MM (Materials Management).

Q35. How do you perform reconcilia on in SAP?

A: Using transac on codes like FBL1N, FBL3N, and T-code FAGLL03.
4. GST

Q36. What is GSTR-1?

A: Outward supply return filed monthly/quarterly.

Q37. What is GSTR-3B?

A: Summary return of outward/inward supplies with tax payment.

Q38. What is RCM under GST?

A: Reverse Charge Mechanism – recipient pays GST instead of supplier.

Q39. What is a LUT under GST?

A: Le er of Undertaking for expor ng goods/services without paying IGST.

Q40. What is GSTR-9C?

A: GST audit reconcilia on statement.

Q41. What is Rule 42 in GST?

A: Input Tax Credit appor onment for partly exempt supplies.

Q42. Define Place of Supply.

A: Loca on where goods/services are deemed to be supplied for GST.

Q43. What is E-invoicing?

A: Electronic authen ca on of B2B invoices through the GST portal.

Q44. What is an E-way bill?

A: A document for movement of goods worth more than ₹50,000.

Q45. What is ITC?

A: Input Tax Credit – tax credit on purchases.

Q46. How is GSTR-2B used for reconcilia on?

A: It’s a sta c auto-dra ed ITC statement.

Q47. What is the difference between GSTR-2A and 2B?

A: 2A is dynamic; 2B is sta c and used for ITC.
Q48. How do you treat blocked credit?
A: Disallowed under GST law (e.g., personal expenses).

Q49. What is the Time of Supply?

A: The point at which GST becomes payable.

Q50. What is Invoice Matching?

A: Comparing buyer's and supplier’s invoices for ITC valida on.
5. TDS

Q51. What is TDS?

A: Tax Deducted at Source on specified payments.

Q52. What is Sec on 194A?

A: TDS on interest other than securi es.

Q53. What is Form 26AS?

A: Annual tax statement showing TDS, TCS, and other taxes.

Q54. What is TDS challan?

A: Form used to deposit TDS with the government (Challan 281).

Q55. How do you correct TDS returns?

A: Using TRACES for filing correc on statements.

Q56. What is Form 16?

A: Cer ficate for TDS on salary.

Q57. What is Sec on 194Q?

A: TDS on purchase of goods exceeding ₹50 lakhs.

Q58. What is 206C(1H)?

A: TCS on sale of goods above ₹50 lakhs.

Q59. When is TDS return filed?

A: Quarterly.

Q60. What is TCS?

A: Tax Collected at Source.

Q61. What is Form 24Q?

A: TDS return for salary.
Q62. What is HUAC?
A: Likely a typo; possibly meant HUF (Hindu Undivided Family).

Q63. What is Form 27Q?

A: TDS return for payments to non-residents.

Q64. What is a PAN-Aadhaar linking requirement for TDS?

A: PAN must be linked to Aadhaar to avoid higher TDS.

Q65. What happens if TDS is not deducted?

A: Disallowance under Income Tax Act and penal es.
6. Advance Tax

Q66. What is advance tax?

A: Tax paid in advance during the year instead of a lump sum at year-end, under Sec on 208.

Q67. Who is liable to pay advance tax?

A: Any individual or company whose tax liability exceeds ₹10,000 in a financial year (except for senior ci zens not having
business income).

Q68. What is the due date for advance tax payment?

A:

 15th June – 15%

 15th September – 45%

 15th December – 75%

 15th March – 100%

Q69. How is advance tax calculated?

A: Es mated total income × applicable tax rate – TDS already deducted.

Q70. What is the journal entry for advance tax payment?

A:

Advance Tax A/C Dr

To Bank A/C

Q71. What is the form used for paying advance tax?

A: Challan 280.

Q72. What is interest under Sec on 234B?

A: Interest for default in payment of advance tax (1% per month).

Q73. What is interest under Sec on 234C?

A: Interest for deferment of advance tax instalments.
Q74. Can salaried employees pay advance tax?
A: Yes, if they have other income (e.g., rent, interest) liable to tax beyond TDS.

Q75. Is there any penalty for not paying advance tax?

A: Yes, interest under Sec ons 234B & 234C and possible scru ny.
7. Income Tax

Q76. What is ITR-1?

A: Income Tax Return for salaried individuals with income up to ₹50 lakh.

Q77. What is ITR-4?

A: For individuals, HUFs, and firms under presump ve income scheme (Sec on 44AD, 44ADA, 44AE).

Q78. What is Sec on 40A (2)?

A: Disallowance of excessive or unreasonable payments to related par es.

Q79. What is Sec on 40A (3)?

A: Disallowance of cash payments exceeding ₹10,000 per day to a person.

Q80. What is Sec on 43B?

A: Certain deduc ons allowed only on actual payment (e.g., tax, interest, bonus).

Q81. What is Sec on 32?

A: Allows deprecia on on tangible/intangible assets.

Q82. What is Sec on 56?

A: Taxa on of income from other sources (e.g., gi s, lo ery, interest).

Q83. What is Sec on 80C?

A: Deduc ons for investments like LIC, PPF, ELSS up to ₹1.5 lakh.

Q84. What is Form 16A?

A: TDS cer ficate for non-salary payments.

Q85. How is taxable income calculated?

A: Gross Total Income – Deduc ons = Taxable Income.

Q86. What is MAT?

A: Minimum Alternate Tax, applicable to companies with book profits.
Q87. What is the difference between financial year and assessment year?
A: FY: year income is earned; AY: year income is assessed and taxed.

Q88. What is self-assessment tax?

A: Tax paid before filing return if advance tax and TDS are not sufficient.

Q89. What is a PAN?

A: Permanent Account Number – a unique ID for tax purposes.

Q90. What is the penalty for late filing of ITR?

A: ₹1,000 to ₹5,000 under Sec on 234F.
8. ROC (Registrar of Companies)

Q91. What is ROC?

A: A government body under MCA that regulates companies under Companies Act.

Q92. What is Form AOC-4?

A: For filing the financial statements of the company.

Q93. What is Form MGT-7?

A: Annual return form showing company details like shareholders, directors.

Q94. What is DIR-3 KYC?

A: KYC compliance for Directors having DIN (Director Iden fica on Number).

Q95. What is DPT-3?

A: Return of deposits or transac ons not considered as deposits.

Q96. What is the due date for filing AOC-4?

A: Within 30 days from the date of AGM.

Q97. What is the due date for filing MGT-7?

A: Within 60 days from the date of AGM.

Q98. What are the consequences of not filing ROC forms?

A: Penal es, disqualifica on of directors, addi onal fees.

Q99. What is the difference between AOC-4 and MGT-7?

A: AOC-4 is for financials; MGT-7 is for annual return.

Q100. What is the penalty for non-compliance with DIR-3 KYC?

A: DIN becomes deac vated, and a fee of ₹5,000 is levied for reac va on.