Accounting and Finance Questions

Q:

What entry is recorded when $75.00 worth of supplies are purchased on account?

Answer

Purchasing good two kinds of entry 


Either Cash or Credit 


 


If Cash


Purchase A/c ------ Dr  xx  To Cash A/c


(Being good purchase on cash)


 


If Credit 


Purchase A/c ---- Dr  To Supplier A/c


(Being goods purchase on Credit)

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Subject: Accounts Payable

15 5767
Q:

Which of the following is the oldest Joint Stock Bank of India  ?

A) Patiala Bank B) Punjab National Bank
C) Bank of India D) Allahabad Bank
 
Answer & Explanation Answer: D) Allahabad Bank

Explanation:

Oldest Joint Stock bank of India was Bank of Upper India that was established in 1863. But this bank failed in 1913. India's Oldest Joint Stock Bank which is still working is Allahabad Bank. It is also known as India's oldest public sector bank.

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Filed Under: Bank Interview
Exam Prep: Bank Exams , CAT
Job Role: Bank Clerk , Bank PO

2 5734
Q:

What procedure for excess payment to supplier I would like know without adjusting invoice that means how supplier will send back excess amount how do in oracle apps?

Answer

Excess payment to supplier is treated as Advance paid to supplier. This will show as debit balance in supplier account.

Supplier can send the payment by way of cheque / demand draft without adjusting in his subsequent bills.

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Subject: Accounts Payable

2 5444
Q:

Why does a company/business require an Accounts payables process?

Answer

Accounts payable process is required in a company because this will help and guide the accountant to manage their payables with in the normal course of the business.


This includes verifying and checking the invoice details including the credit terms, due date, mode of payment, payee and the items received. Only the items received will be paid. Incase theres a discrepancy against the actual receipts, a credit note will be raised by the supplier against the short-shipped invoice.


At the end of the month, AP reconcilition is required confirming both parties balances thru the statement of accounts (SOA). This you can identify which invoices or payment hasnt been booked yet by both parties and you will end up with the same balances, (equal balance from your company and with their company).

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Subject: Accounts Payable

4 5389
Q:

What steps would you take before approving an invoice for payment?

Answer

Following steps should be taken

>Validate the invoice once it is matched for checking any holds..

>If workflow is implemented , Initiate approval for the invoice. Once the invoice is approved/Approrval not required(status in case WF is not implemented) you can go for payments.

>Create accounting after approval of invoice..

Finally for payments you need to format, build
-------------------------------------------------------------------------------
Before making payment

the following steps should be taken
1. invoice amt, date, qty, quy,
2. invoice duplication or not
3. rectification of any Errors in invoice
------------------------------------------------------------------------------
Before hand over the invoice or dispatch the materials
1.we have to receive perchase order from the customer
2.Then PDC cheque, cash or current dated chq for dispatch the materials
3.have to take signature from the customer for the proof of goods recieve
-------------------------------------------------------------------------------
We must check the invoice thoroughly.
(1) Date of Invoice
(2)Qty,Rate,Tax Levid

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Subject: Accounts Payable

4 5380
Q:

What do you mean by Mischarge Correction?

Answer

A mischarge correction is when the wrong account line was used or the wrong amount was entered. The account that was wrongly charged needs to be credited and the correct account needs to be debited. The information needs to be recorded and duly noted for your office and for the main office. A journal voucher, showing the correction, should be completed as soon as possible. The accountswill not balance at the end of the fiscal year if these corrections are not properly made.

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Subject: Accounts Payable

2 5235
Q:

What is account payable? How we pass the entries in account payable and related all the question based on account payable?

Answer

Accounts Payable is a short term liability of an organization. It's a process by which a company buys goods and services on credit and is billed in the form of an invoice, which states the terms and conditions of the payment. Accounts Payable is recorded as a current liability in the balance sheet. All accounts paayble entries are to be coded under the right G/L accounts to have an accurate picture of the company's short term liability.

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Subject: Accounts Payable

4 5043
Q:

How to define Inter company Transaction in Account Receivable?

Answer

Before answering the above question let us first understand the meaning of Intercompany transactions. Intercompany transactions are those transactions that takes place between two or more entities of the same group of company. So the receivable of one entity would the payable of another entity. All intercompany transactions are eliminated befor preparing the final Balance sheet of the group company.

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5 5039