Top 7 Common Interview Questions And Answers

If you want to make your career in accounting then you need to read the following Common Interview questions and answers:

1) Explain the owner’s equity? And how to calculate it?

The claim of the entrepreneur against the business assets is the business capital or Owner’s equity. This is calculated by deducting creditors equity from the total equity.

2) Explain double-entry bookkeeping and its rules?

It follows the principle where each debit has a subsequent credit, therefore, a total of all debits is equal to the total of all credits. Here when an account is debited there is another account which is credited.

3) Explain the significant terms used in the balance sheet?

Equity

Assets

Liability

4) Define Trial Balance?

At any given time, a total sum of all the balances standing on the ledger accounts is called Trial balance.

5) Common Errors in Accounting?

These are the following common errors in accounting:

  • Errors of Principle

  • Errors of Omission

  • Compensating Error

  • Errors of Commission

6) List the items included in the Profit and Loss account?

  • Carriage out, freight out, carriage out

  • Apprentice premium

  • Rent

  • Rates and Taxes

  • Trade discount

  • Commission

  • Salaries

  • Depreciation

  • Trade Expenses

  • Printing and Stationery

  • Advertisement

  • Discount received and allowed

  • Repairs

  • Traveling expenses

  • Samples

  • Interest on capital and drawings

  • Interest

  • Life insurance premium

  • Insurance premium

  • Income tax

  • Loss or gain on asset sold

7) List of adjustment entries made by preparing the final accounts of Trial Balance?

  • Drawings

  • Closing Stock

  • Depreciation

  • Abnormal Loss due to fire etc

  • Goods distributed as free samples

  • Deferred Revenue Expenditure Written off

  • Outstanding Expenses

  • Prepaid Expenses

  • Accrued Income

  • Income received in advance

  • Bad Debits

  • Provision for Doubtful Debts

  • Provision for Discount on Debtors

  • Interest on Capital

  • Commission payable to the manager

  • Goods sent on an approval basis

The above common interview questions and answers are sufficient to clear the interview rounds

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