CRACK
ACCOUNTANT
INTERVIEW
10 Min Prep. Guide
PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
BASICS OF ACCOUNT
[Link] Payable [Link] Rent paid now adjusted
Salary a/c………………………..Dr Rent a/c…………………….Dr
To Salary Payable To Advance Rent a/c
[Link] from Mohan [Link] Interest
Purchases a/c……………Dr Accrued Interest a/c……………Dr
To Mohan a/c To Interest a/c
[Link] return from Mohan [Link] payable now paid
Mohan a/c……………………….Dr Salary Payable a/c…………….Dr
To Purchase Return a/c To Bank a/c
[Link] goods to Sohan [Link] introduced into business
Sohan a/c………………………..Dr Cash a/c………………………..Dr
To Sales a/c To Capital a/c
[Link] Debt [Link] taken
Bad Debt a/c…………………….Dr Bank a/c……………………………Dr
To Debtor To Loan a/c
[Link] Rent Paid [Link] given
Advance Rent a/c………………Dr Loan a/c……………………………Dr
To Bank a/c To Bank a/c
CA RUPA JAIN DAGA
GOLDEN RULE OF ACCOUNTING
PERSONAL ACCOUNT REAL ACCOUNT NOMINAL ACCOUNT
✓ DEBIT THE ✓ DEBIT WHAT COMES ✓ DEBIT ALL EXPENSES
RECEIVER IN AND LOSSES
✓ CREDIT THE ✓ CREDIT WHAT GOES ✓ CREDIT ALL INCOME
GIVER OUT AND GAIN
BRS WITH EXAMPLE
A bank reconciliation statement is a document that compares the bank balance in a
company's accounting records to the balance reported by the bank on its statement. It
helps identify any discrepancies between the two balances and ensures that the
company's financial records are accurate and up-to-date.
Company XYZ Bank Reconciliation Statement as of December 31, 2023:
Balance as per Company Book Rs 100000
- Cheque deposited but not recorded by bank Rs 10000
+ Check issued but not cleared by bank Rs 5000
- Bank Service Charges Rs 500
+ The Dividend collected by the bank not recorded in the Company’s Book Rs 15000
Balance as per Bank Statement 109500
CA RUPA JAIN DAGA
PROVISION WITH EXAMPLE
A provision, in accounting, refers to the setting aside of a portion of a company's profits
to cover anticipated future liabilities or losses that are uncertain in timing or amount.
Provisions are made in accordance with accounting principles to ensure that financial
statements accurately reflect the company's financial position. Here's an example of a
provision:
DEPRECIATION
Depreciation is the systematic allocation of the cost of a tangible asset over its useful
life. This process reflects the reduction in the asset's value due to factors such as wear
and tear, obsolescence, and the passage of time. Depreciation is an essential concept in
accounting because it helps match the cost of an asset with the revenue it generates
over its useful life.
METHODS OF DEPRECIATION
Straight Line Method - In straight-line depreciation, an equal amount of depreciation
expense is allocated to the asset in each accounting period. The formula takes into
account the initial cost of the asset, subtracts any estimated residual value at the end
of its useful life, and then divides by the total useful life of the asset.
Written Down Value Method - The written-down value method, also known as the
reducing balance method or declining balance method, is a depreciation accounting
approach used to calculate the depreciation of an asset. This method emphasizes a
higher depreciation expense in the earlier years of an asset's useful life, reflecting the
idea that an asset tends to lose its value more rapidly in its early years.
CA RUPA JAIN DAGA
GST BASICS
1. Intra State Sale or Purchase
Within the state sale. CGST and SGST will be charged
2. Inter State Sale or PurchaseInter State Sale or Purchase
Outside the state sale or purchase. IGST will be charged
[Link] Charge Mechanism
Where the recipient is liable to pay tax to the Govt. Example:- GTA, Legal
Services, Director Sitting Fees
[Link] Tax Credit
Tax paid on purchase of goods and services is called input tax and the credit
received on the same which can be utilised at the time of sale is called Input
Tax Credit.
[Link] Credit or Ineligible ITC
refers to certain circumstances where a registered taxpayer is not allowed to
claim the input tax credit on specific inputs, input services, or capital goods.
Example:- Motor Car, Catering, Food and Beverages, Rent a Cab, Beauty
Treatment etc.
CA RUPA JAIN DAGA
GST BASICS
[Link] 2B
GSTR-2B is a return form designed to provide businesses with a summary of
their input tax credit (ITC) eligibility. It is generated automatically for registered
taxpayers based on the information filed by their suppliers in their respective
GSTR-1 and GSTR-5 returns.
[Link] Scheme
Tax paid by the taxpayer at a lower rate. Less Compliance, ITC cannot be
claimed, Tax invoice cannot be issued
[Link] Off Rules
IGST must be set off 1st with IGST then CGST and SGST.
CGST must be set off 1 st with CGST then IGST.
SGST must be set off 1st with SGST then IGST.
CGST and SGST cannot be set off with each other.
[Link] date of Filing GSTR 1, GSTR 3B
GSTR 1 – Monthly- 11th of Next Month
GSTR 3B- Monthly- 20th of Next Month
GSTR 1- Quarterly- 13th of Next Month of Quarter End
GSTR 3B- Quarterly- 22nd/24th of Next Month of Quarter End
[Link] 2B v/s GSTR 2A
GSTR 2B is a static return whereas GSTR 2A is a dynamic return
Input Tax Credit is taken as per GSTR 2B as it remains fixed.
CA RUPA JAIN DAGA
TDS
Service Section Limit Rate
Rent on Land
194I 2,40,000 / 6,00,000 10%
and Building
Catering 30,000- Single Bill 1%- Individual/HUF
194C
Service 1,00,000- Aggregate 2%- Others
Transportation 30,000- Single Bill
194C 1%- Individual/HUF
Service 1,00,000- Aggregate If
2%- Others
more than 10 vehicle
Legal Service 194I 30,000 10%
Interest on
194A 5000 10%
Unsecured Loan
Director Sitting 194J No Limit 10%
Fees
Commission 194H 15,000 2%
CA RUPA JAIN DAGA
SEC 194Q
Particular 194Q 206C(1H)
Total sales, gross receipts or turnover from Total sales, gross receipts or turnover from
the business exceeds Rs. 10 Crores during the business exceeds Rs. 10 Crores during
WHO IS LIABLE TO the financial year immediately preceding the financial year immediately preceding
DEDUCT TDS OR the financial year in which such goods are the financial year in which such sale of
COLLECT TCS ? purchased goods carried out
Buyer Purchases goods from a resident Seller receives consideration for the sale of
person and the purchase/ payment is of any goods from the Buyer (other than
APPLICABILITY value or aggregate of such value exceeding goods exported out of India) of the value
50 Lakh rupees in any previous year. or aggregate of such value exceeding 50
Lakh rupees in any previous year.
WHEN TO DEDUCT/COLLECT Entry / Payment whichever is earlier At the time of receipt of amount
TAX ?
0.1% of Purchase/Payment exceeding 50 0.1% of Sales consideration exceeding 50
RATE lacs rupees. 5% if deducteePAN not lacs rupees. 1% if collecteePAN not
available available
SEC 192
Employer's Responsibility: Section 192 places the responsibility on employers to deduct
income tax at source (TDS) from the salary of their employees. Employers play the role of
a tax collectors on behalf of the government.
Calculation of TDS: Employers need to calculate the TDS based on the income tax slabs
and rates applicable to individual employees. The TDS is deducted from the salary before
it is paid to the employee.
Frequency of TDS Deduction: TDS is deducted on a monthly basis from the salary
payment. The employer needs to deduct the appropriate TDS amount and deposit it with
the government within the stipulated time.
Providing TDS Certificate: Employers are required to provide TDS certificates, commonly
known as Form 16, to their employees. Form 16 details the amount of TDS deducted and
other relevant information.
Filing TDS Returns: Employers need to file TDS returns, providing details of the TDS
deducted and deposited, on a quarterly basis.
CA RUPA JAIN DAGA
5 HEADS OF INCOME
PROFIT AND
HOUSE GAIN FROM CAPITAL OTHER
SALARY
PROPERTY BUSINESS AND GAINS SOURCES
PROFESSION
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