CRACK

MNC
INTERVIEW
A QUICK GUIDE

PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
 What is a deferred tax
asset?

A Deferred Tax Asset arises when a company has paid more

tax in the current period but will benefit from it in future
periods. This usually happens due to temporary differences
between accounting income and taxable income.

Example:
Depreciation differences where tax depreciation is lower
than accounting depreciation initially

CA Rupa Jain Daga

 What is a deferred tax
liability?

A Deferred Tax Liability arises when a company has paid

less tax in the current period but will have to pay more in
future periods. This happens due to temporary differences
where accounting income is higher than taxable income.

Example:
Depreciation differences where tax depreciation is higher
than accounting depreciation initially

CA Rupa Jain Daga

What is working capital, and
how is it calculated?

Working capital measures a company's operational efficiency

and short-term financial health.
It is calculated as:

Working Capital = Current Assets - Current Liabilities

Positive working capital indicates that a company can cover its

short-term liabilities with its short-term assets.

CA Rupa Jain Daga

 What are the three main
financial statements?
The three primary financial statements are:

Balance Sheet: Shows a company's assets, liabilities, and

shareholders' equity at a specific point in time.

Income Statement (Profit & Loss Statement): Details

revenues and expenses over a period, resulting in net profit or
loss.

Cash Flow Statement: Reports cash inflows and outflows over

a period, categorized into operating, investing, and financing
activities.

CA Rupa Jain Daga

 What is the difference
between accounts payable
and accounts receivable?

Accounts Payable (AP): Amounts a company owes to

suppliers or vendors for goods and services received but not
yet paid for; considered a liability.

Accounts Receivable (AR): Amounts owed to a company by

customers for goods or services delivered but not yet paid for;
considered an asset.

CA Rupa Jain Daga

What is accrual accounting?

Accrual accounting is an accounting method where

revenues and expenses are recorded when they are earned or
incurred, regardless of when cash is actually received or
paid. This method provides a more accurate picture of a
company's financial position by matching revenues with
related expenses in the same period.

CA Rupa Jain Daga

What is depreciation, and
why is it important?

Depreciation is the systematic allocation of the cost of a

tangible fixed asset over its useful life. It reflects the wear
and tear, usage, or obsolescence of the asset. Depreciation is
important because it matches the cost of using an asset with
the revenue it generates, ensuring accurate profit
measurement and compliance with accounting standards.

CA Rupa Jain Daga

 What is a trial balance?

A trial balance is a bookkeeping worksheet listing all ledger

accounts and their balances at a specific point in time. Its
primary purpose is to verify that total debits equal total
credits, ensuring the accuracy of the double-entry
accounting system before preparing financial statements.

CA Rupa Jain Daga

 What is the purpose of a
bank reconciliation?

A bank reconciliation ensures that a company's financial

records (cash book) align with the bank statement. It identifies
discrepancies due to timing differences, errors, or
unauthorized transactions, ensuring the accuracy and
completeness of cash records.

CA Rupa Jain Daga

 What is the difference
between a capital lease and
an operating lease?
Capital Lease (Finance Lease): A lease that transfers
substantially all risks and rewards of ownership to the lessee;
the asset and liability are recorded on the lessee's balance
sheet.

Operating Lease: A lease where the lessor retains substantially

all risks and rewards of ownership; lease payments are treated
as operating expenses, and neither the asset nor liability is
recorded on the lessee's balance sheet.

CA Rupa Jain Daga

Ready to Ace
your next
Interview?
Save this post & follow for more tips!

CA Rupa Jain Daga

CRACK
MNC
INTERVIEW
PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
 "Want to land
an MNC job as
an accountant
in India?
Prepare these 10
high-impact
questions!"
CA Rupa Jain Daga
ACCOUNTANT
INTERVIEW
QUESTIONS
A QUICK GUIDE

PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
 QUESTIONS
Q1. Mega Plastics sold goods to Plastic Vypaari Rs
25000. In whose books of account we will make
purchase or sale entry ? In whose books debtor or
creditor will be recorded ?

Q2. Pass Journal Entries

Rent payable Rs 5000

Rent payable to Mohan Rs 6000
Salary Receivable Rs 6000
Salary Receivable from Sohan Rs 6000

Q3. X & Co, purchase a computer from Raj

Computers. Pass Journal Entry? What will be your
entry if same is purchase by Shah Electronics for the
purpose of resale ?

Q4. Mega Plastics sold goods to Plastic Vypaari Rs

25000 (Taxable Value). GST @ 18%. Pass entry in
the books of Mega Plastics and Plastic Vypaari ?

CA Rupa Jain Daga

Q5. What is difference between the following :-

1) Debtor and Creditor

2) Receivable and Payable
3) Expense and Loss
4) Capital and Drawings
5) Trade Discount and Cash Discount
6) Discount Allowed and Discount Received
7) Bad- Debt and Provision for Bad-Debt

Q6. Classify the following

1) Rent Payable
2) Rent Receivable
3)Rent Received
4) Rent Paid
5) Bad-Debt
6) Advertisement

Q7. Differentiate the following :-

1. IGST VS CGST & SGST

2. Taxable Value VS Invoice Value
3. Reverse Charge VS Forward Charge
4. Input Tax VS Output Tax
CA Rupa Jain Daga
Q8. What type of GST will be charged ?

1.Raj & Co (UP) sold goods to Mohan (Delhi)

2.Ramesh & Co (WB) sold goods to Suresh & Co (WB)

Q9. TDS Deduction under which head, Limit and

Rate

Advertisement
Commission
Job Work
Rented Machinery
Transporatation Charges
Legal Charges
Audit Fees
Interest on Unsecured Loan

Q10. What amount will be paid using Input Tax

Credit and using Cash

Raj & Co purchased goods of Rs 1000 (Taxable Value). GST

@18%. Raj & Co sold goods 1500 (Taxable Value). GST
Raj & Co purchased goods of Rs 1500 (Taxable Value). GST
@18%. Raj & Co sold goods 1000(Taxable Value). GST

Q11. Write the Set Off Rules for GST ?

CA Rupa Jain Daga
Q12. Whether credit will be allowed in respect of
following and determine the amount of elligible
ITC:-
Skillshort purchased Motor Car (4 seating capacity) for
business purpose Rs 2,50,000 (Taxable) GST @ 28%
Skillshort threw a party and took catering service from
Ganpati Rs 50,000 (Taxable) GST @18%
Skillshort took on rent a premises 1,18,000 (Including GST
@ 18%)
Skillshort took audit services for Rs 50,000 (excluding GST
@ 18%)
Skillshort took health insurance of its employees 12000
(Taxable ) GST @ 18%

Q13. Differentiate the following

GSTR 1, GSTR 2B and GSTR 3B

Q14. What if supplier didn't file GSTR 1 on timely

basis ?

Q15. Whether GST will be charged in following

transactions or not ?

1. Raj & Co (Regular) sold goods to Mohan & Co (Composite)

2. Raj & Co (Composite) sold goods to Mohan & Co (regular)
3.Raj & Co (Unregister) sold goods to Mohan & Co (regular)

CA Rupa Jain Daga

Q16. Pass Journal Entry of following Transactions
in both the books:-

1. Raj & Co (Regular) sold goods to Mohan & Co (Regular) Rs

18000 (Invoice Value). GST Rate on Product 18%
2. Raj & Co (Regular) sold goods to Mohan & Co (Composite) Rs
18000 (Invoice Value). GST Rate on Product 18%
3. Raj & Co (Unregister) sold goods to Mohan & Co (Unregister)
Rs 18000 (Invoice Value). GST Rate on Product 18%
4. Raj & Co (Unregister) sold goods to Mohan & Co (Regular) Rs
18000 (Invoice Value). GST Rate on Product 18%
5. Rent payable to Neha Gourisaria by Skillshort 22000 (Taxable
Value). GST @ 18%
6. Food and Beverage charges payable to Ganpati 21000 (Taxable
Value) GST @ 18%
7. Advertisement charges payable to Facebook Rs 35000 (Taxable
Value). GST @ 18%
8. Salary payable to Mohan Rs 24000

Q17. Specify types of Journal Entry which results in

followings

Expense, Liabilty+
Asset+, Liability +
Liability-, AssetAsset+,
Income Asset+, Asset
Q18. The following Journal Entry will result in
(Expense, Liability-, Asset+ and Income, Liability+,
Asset-)
Salary Payable to Mohan
Rent Receivable from Mohan
Wages Paid
Purchase goods in cash
Purchase goods on credit
Sold goods on cash
Sold goods on credit
Bad Debt
Rent received
Capital Introduced into business
Depreciation on Machinery
Bad-Debt Recovery

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Save this post & follow for more tips!

CA Rupa Jain Daga

Questions & Answers

CRACK JUNIOR
ACCOUNTANT
INTERVIEW
PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.

CARUPAJAINDAGA
 GST & TDS Scenarios
01

01 CRYSTAL LOGISTICS HIRED A GOODS TRANSPORT

AGENCY (GTA) AND PAID ₹15,000. THE GTA IS
UNREGISTERED. WHAT IS THE GST IMPLICATION?
GST is payable under Reverse Charge
Mechanism. The company (recipient) must
pay GST @5% and claim ITC if eligible.
02 NUCLEUS SOFTWARES PAYS ₹40,000 PER MONTH AS
OFFICE RENT. WHAT IS THE APPLICABLE TDS AND
UNDER WHICH SECTION?
TDS @10% should be deducted under
Section 194-I for rent of land/building.
Entry:
Rent A/c Dr. ₹40,000
To TDS Payable A/c ₹4,000
To Bank A/c ₹36,000

CARUPAJAINDAGA
 Tally Prime Situations
02

03 ZENITH ELECTRICALS’ ACCOUNTANT WANTS TO ENTER

A BANK-TO-BANK TRANSFER IN TALLY. WHAT VOUCHER
SHOULD BE USED?
Use the F4 - Contra Voucher.
E.g., Transfer from HDFC to ICICI:
ICICI Bank A/c Dr.
To HDFC Bank A/c
04 THE ACCOUNTANT AT FUSION RETAIL WANTS TO
DUPLICATE AN ENTRY FOR A SIMILAR TRANSACTION.
WHAT IS THE SHORTCUT IN TALLY?
Use ALT + 2 on the existing voucher to
duplicate the entry.

CARUPAJAINDAGA
 Journal Entries & Concepts
03

05 SOHAM ENTERPRISES PAID ₹1,500 AS PENALTY FOR

LATE FILING OF GST RETURN. HOW SHOULD THIS BE
RECORDED?
Entry:
Penalty A/c Dr. ₹1,500
To Bank A/c ₹1,500
It should be booked under “Indirect
Expenses” as it’s not allowed as business
deduction under Income Tax.
06 SPEEDY COURIER RECEIVED ADVANCE FROM CUSTOMER
FOR SERVICE NOT YET RENDERED. WHAT IS THE
JOURNAL ENTRY?
Bank A/c Dr.
To Advance from Customer A/c
When service is rendered, transfer to Sales:
Advance from Customer A/c Dr.
To Sales A/c
CARUPAJAINDAGA
 Excel for Accountants
04

07 AN ACCOUNTANT WANTS TO CALCULATE GST (18%)

FROM THE TOTAL INVOICE VALUE IN EXCEL. WHAT
FORMULA SHOULD BE USED?
GST Amount = Invoice Value × 18 / 118
Example: =A2*18/118 if A2 contains the
total amount including GST.

08 WHAT FORMULA HELPS TO FETCH DATA FROM ANOTHER

TABLE BASED ON A COMMON FIELD IN EXCEL?
Use VLOOKUP or XLOOKUP (for newer Excel).
Example:
=VLOOKUP(E2,Table2!A:B,2,FALSE)

CARUPAJAINDAGA
 05

09 THE ACCOUNTANT WANTS TO REMOVE UNWANTED

BLANK SPACES IN EXCEL ENTRIES. WHAT FORMULA
SHOULD BE USED?
Use =TRIM(A2) to remove extra spaces
from a cell.

10 A MANAGER WANTS TO ANALYZE SALES BY REGION.

WHAT EXCEL TOOL IS BEST FOR QUICK SUMMARIES AND
ANALYSIS?
Use a Pivot Table. It allows grouping,
summing, and filtering large datasets easily.

CARUPAJAINDAGA
 06

CARUPAJAINDAGA
CRACK JUNIOR
ACCOUNTANT
Questions & Answers

PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
1.WHAT IS THE DIFFERENCE BETWEEN
PROVISION AND CONTINGENT LIABILITY?
Provision: Recorded in books; future liability is likely
and can be estimated.
Contingent Liability: Not recorded; disclosed in notes
— based on uncertainty.

2.WHAT IS THE TREATMENT OF ACCRUED

INCOME IN ACCOUNTS?
It is recorded as:
Accrued Income A/c Dr.
To Income A/c

3.EXPLAIN THE MATCHING PRINCIPLE.

Expenses should be recorded in the same period as the
related revenues they helped earn.

4.WHAT ARE FICTITIOUS ASSETS?

These are not real assets but expenditure not yet written
off (e.g., preliminary expenses).
CARUPAJAINDAGA
1.HOW DO YOU HANDLE A GST MISMATCH
BETWEEN GSTR-2B AND PURCHASE REGISTER?
Investigate vendor-wise mismatch, follow up with
vendors, and ensure proper invoice uploading.

2.WHEN IS GST PAYABLE UNDER RCM FOR

TRANSPORT?
If a business hires goods transport agency (GTA), GST
under RCM is payable by the recipient at 5%.

3.WHAT IS THE PENALTY FOR LATE GSTR-3B

FILING?
Late fee: ₹50/day (₹20/day for Nil return); Interest @18%
on payable tax.

4.CAN A BUSINESS CLAIM ITC ON COURIER

SERVICES USED FOR DELIVERY?
Yes, if used for business and invoice has GST.

CARUPAJAINDAGA
1.WHAT IS THE TDS RATE ON RENT
EXCEEDING ₹2.4 LAKH PER ANNUM?
10% for building/land
2% for plant/machinery

2.UNDER WHICH SECTION IS TDS DEDUCTED ON

CONTRACTOR PAYMENTS?
Section 194C

3.WHAT IS THE DUE DATE FOR DEPOSITING

TDS?
7th of the next month (except for March, which is 30th
April).

4.WHAT IS TDS CERTIFICATE? WHICH FORM IS

USED?
TDS certificate is proof of tax deducted.
• Form 16: For salary
• Form 16A: For non-salary payments

CARUPAJAINDAGA
1.HOW DO YOU USE IF FUNCTION FOR CONDITIONAL
CALCULATIONS?
=IF(A2>100, “Eligible”, “Not Eligible”)

2.HOW DO YOU PROTECT A WORKSHEET IN EXCEL?

Go to Review > Protect Sheet > Set password.

3.HOW DO YOU FIND GST AMOUNT FROM INCLUSIVE

VALUE IN EXCEL?
=Total Value * (GST% / (100 + GST%))

4.WHAT IS THE DIFFERENCE BETWEEN COUNT,

COUNTA, AND COUNTIF?
COUNT: Counts numbers only
COUNTA: Counts non-blank cells
COUNTIF: Counts based on condition

CARUPAJAINDAGA
1.HOW DO YOU ACCOUNT FOR SALARY WITH
TDS AND PF DEDUCTIONS?
Journal Entry: Salary A/c Dr.
To TDS Payable A/c
To PF Payable A/c
To Bank A/c

2.WHAT IS DEFERRED REVENUE EXPENDITURE?

A revenue expense that gives benefit over several years
(e.g., heavy advertising), amortized over time.

3.WHAT IS RECTIFICATION OF ERROR?

Correcting errors in books — can be one-sided (suspense
A/c) or two-sided.

4.HOW IS DEPRECIATION TREATED IN ACCOUNTS?

It’s an expense debited to P&L, and the asset’s value is
reduced in the balance sheet.

CARUPAJAINDAGA
8
How to Crack

SENIOR
ACCOUNTANT
INTERVIEW
Questions & Answers

PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
1
MY ORGANIZATION’S E-WAY BILL IS
BLOCKED BY THE GST DEPARTMENT. WHAT
IS YOUR TAKE AS AN ACCOUNTANT?

E-way bill generation is blocked for taxpayers who

have not filed their returns for the previous two
consecutive months/quarters.

01 CARUPAJAINDAGA
2
WHAT ARE THE CONSEQUENCES OF THE
NON-DEDUCTION OF TDS?

If an assessee fails to deduct tax at source or having

deducted fails to pay, then such person shall be
deemed to be an assessee in default. Simple interest
u/s 201(1A) at the rate of 1% or 1.5% shall be payable
who do not deduct or after deducting fails to pay the
tax.

02 CARUPAJAINDAGA
3
MY ORGANIZATION USES ITS OWN
VEHICLE FOR THE TRANSPORTATION OF
GOODS. HOW TO FILE PART B IN CASE OF
AN E-WAY BILL?

You are required to provide your own GSTN number in

order to file Part B of the E-Way Bill.

03 CARUPAJAINDAGA
4
THE OWNER HAS RECENTLY PURCHASED A
RESIDENTIAL FLAT FOR PERSONAL USE.
YOU ARE MAINTAINING HIS PERSONAL
FILE. WHAT IS THE TAX IMPLICATION?

Section 194-IA provides that any person, being a

transferee, responsible for paying (other than the
person referred to in section 194LA) to a resident
transferor any sum by way of consideration for the
transfer of any immovable property (other than
agricultural land) shall deduct an amount equal to
one percent of such sum as income-tax at the time of
credit of such sum to the account of the transferor or
at the time of payment of such sum in cash or by
issue of cheque or draft or by any other mode,
whichever is earlier.

No deduction shall be made the consideration for the

transfer of an immovable property and the stamp
duty value of such property, both, is less than fifty lakh
rupees.

04 CARUPAJAINDAGA
5
RECENTLY, OUR STOCK LYING IN
GODOWN WAS DESTROYED BY FIRE. WHAT
IS THE GST IMPLICATION?

Sec 17(5) of the CGST Act talks about Block Credit.

Since at the time of purchase, we have taken the
credit of goods, now we are required to reverse the
same since the stock was not actually sold out but
rather destroyed.

05 CARUPAJAINDAGA
6
WHEN PREPARATION OF A CASH FLOW
STATEMENT IS MANDATORY?

The following companies are given exemption from

filing Cash Flow Statement

1.One Person Company

2.Small Company
3.Dormant Company

06 CARUPAJAINDAGA
7
I RUN A SOLE PROPRIETORSHIP BUSINESS. I
AM PAYING RENT FOR MY RESIDENTIAL
PROPERTY. IS DEDUCTION AVAILABLE?

If you don't receive HRA (House Rent Allowance) but

pay rent, you can still get a tax deduction on the rent
paid under Section 80 GG of the Income Tax Act, 1961.
The maximum deduction permitted under Section 80
GG is Rs 60,000 per annum (Rs 5,000 per month)

07 CARUPAJAINDAGA
8
MY ORGANIZATION WANTS TO GIVE A
5,00,000 LOAN TO ANOTHER
ORGANIZATION IN CASH. WHAT ARE THE
YOUR TAKE ON THIS?

Sec 269SS prohibits the Acceptance of Loans, Deposit,

Advances, or any specified sum exceeding Rs 20,000
or more otherwise than through Account payee
cheque, Draft, or Use of ECS through a bank account,
or Through such other electronic modes as may be
prescribed

08 CARUPAJAINDAGA
READY TO ACE

9
YOUR NEXT
INTERVIEW?

FOR MORE STAY TUNED!!

CRACK
CREDIT ANALYST
INTERVIEW
A QUICK GUIDE

PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
 Q1

What does a Credit Analyst

do?
A Credit Analyst assesses the creditworthiness
of individuals or businesses applying for loans.
Their role includes:
• Analyzing financial statements
• Evaluating credit scores and repayment
history
• Assessing risk factors
• Recommending loan approvals or rejections

CARUPAJAINDAGA
 Q2

What financial ratios do you use

to analyze a company’s
creditworthiness?
Key financial ratios include:
• Liquidity Ratios: Current Ratio, Quick Ratio
(Measures short-term solvency)
• Leverage Ratios: Debt-to-Equity Ratio,
Interest Coverage Ratio (Assess financial risk)
• Profitability Ratios: Net Profit Margin, ROE
(Analyze earnings potential)
• Efficiency Ratios: Accounts Receivable
Turnover (Check debt collection efficiency)

CARUPAJAINDAGA
 Q3

How do you assess a company’s

ability to repay a loan?
I assess:
1. Financial Statements (Balance Sheet, Income
Statement, Cash Flow)
2. Debt-to-Income Ratio (Measures existing
debt burden)
3. Cash Flow Analysis (Ensures steady revenue
streams)
4. Collateral (Assets securing the loan)
5. Credit Score & History (Previous repayment
behavior)

CARUPAJAINDAGA
 Q4

What is the difference between

secured and unsecured loans?
Secured Loan: Backed by collateral (e.g.,
mortgage, car loan)

Unsecured Loan: No collateral, higher risk

(e.g., personal loan, credit card)

CARUPAJAINDAGA
 Q5

What steps do you take if a

borrower has a low credit
score?
1. Check the reason for a low score (e.g.,
defaults, high debt utilization).
2. Review alternative income sources or
guarantors.
3. Ask for additional collateral.
4. Suggest a higher interest rate to
compensate for risk.
5. Propose a phased repayment structure.

CARUPAJAINDAGA
 Q6

How do you interpret the

Debt-to-Equity (D/E) ratio?

1. The D/E ratio = Total Debt / Shareholder’s

Equity
2. A higher ratio indicates high leverage and
financial risk.
3. A lower ratio suggests financial stability but
may indicate underutilized debt.

CARUPAJAINDAGA
 Q7

What is the role of credit

ratings in credit analysis?

Credit ratings (e.g., AAA, BBB, junk ratings)

reflect a borrower’s ability to repay debt.
Higher ratings indicate low default risk, while
lower ratings suggest higher risk and
borrowing costs.

CARUPAJAINDAGA
 Q8

How do you evaluate cash flow

for loan repayment?

Operating Cash Flow (OCF): Measures

actual cash from business operations.
Debt Service Coverage Ratio (DSCR) = Net
Operating Income / Total Debt Service.
DSCR > 1 means the borrower can repay.
DSCR < 1 indicates repayment challenges.

CARUPAJAINDAGA
 Q9

What are Non-Performing

Assets (NPAs)?

NPAs are loans where borrowers fail to make

payments for 90+ days. Banks classify NPAs to
assess risk and set aside provisions for
potential losses.

CARUPAJAINDAGA
 Q 10

What factors affect interest

rates on loans?
Credit Score (Higher score = lower rate)
Loan Tenure (Longer tenure = higher
interest)
Market Interest Rates (Repo rate influences
loan rates)
Collateral (Stronger collateral = lower rate)
Debt-to-Income Ratio (Higher debt = higher
rate)

CARUPAJAINDAGA
Final Tips for a Credit Analyst
Interview:

Brush up on financial ratios & credit evaluation

techniques.

Know how to analyze financial statements.

Be prepared for case studies on loan

assessment.

Stay updated on economic trends & banking

regulations.

CARUPAJAINDAGA
Ready to Ace
your next
Interview?
Save this post & follow for more tips!

CA Rupa Jain Daga

CRACK
TALLY
INTERVIEW
Questions & Answers

PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
 1
WHAT IS THE USE OF TALLY
VAULT?
Tally Vault is a security feature that encrypts
company data with a password to prevent
unauthorized access.

CARUPAJAINDAGA
 2
WHAT IS A STOCK JOURNAL
VOUCHER? WHEN IS IT USED?

Stock Journal Voucher is used for recording

internal stock transfers, such as raw material
conversion into finished goods.

CARUPAJAINDAGA
 3
CAN WE MAINTAIN MULTIPLE
COMPANIES IN TALLY?

Yes, you can create and maintain multiple

companies in Tally for different businesses.

CARUPAJAINDAGA
 4
WHAT IS THE SHORTCUT TO OPEN
DAY BOOK IN TALLY?

Press Alt + G and type Day Book, & use F2 to

change the date.

CARUPAJAINDAGA
 5
HOW DO YOU BACK UP COMPANY
DATA IN TALLY?

Gateway of Tally > Alt + Y (Data Menu) >

Backup
Select Source & Destination, then confirm.

CARUPAJAINDAGA
 6
WHAT IS THE USE OF COST CENTERS
IN TALLY?

Cost Centers allow tracking of expenses and

income department-wise, branch-wise, or
project-wise.

CARUPAJAINDAGA
 7
WHAT IS THE USE OF ‘REVERSING
JOURNAL’ IN TALLY?

It’s a non-regular voucher used for temporary

adjustments that auto-reverse on the next
day. Often used at month/year end.

CARUPAJAINDAGA
 8
WHAT IS THE DIFFERENCE BETWEEN
SINGLE USER AND MULTI USER IN
TALLY?
Single User: Access from one computer.
Multi User (Gold License): Multiple users
can access Tally on LAN simultaneously.

CARUPAJAINDAGA
 9
WHAT IS GST COMPOSITION SCHEME
IN TALLY?

It is a simplified GST scheme for small

businesses with turnover below a threshold.
Tally has an option to configure GST as a
regular or composition dealer.

CARUPAJAINDAGA
 10
HOW CAN YOU PRINT AN INVOICE IN
TALLY?

After saving the Sales Voucher, press Alt + P

for print, or use the Print option from the top
menu.

CARUPAJAINDAGA
ORDER TO
CASH (O2C)
INTERVIEW
QUESTIONS & ANSWERS

PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
 1. WHAT IS THE ROLE OF AN
ACCOUNTANT IN THE O2C PROCESS?

An accountant ensures accurate financial

recording and reporting in the O2C cycle. Key
responsibilities include:
• Recording sales transactions and revenue
recognition
• Managing accounts receivable (AR)
• Ensuring correct invoice generation and
payment tracking
• Reconciling customer payments with invoices
• Reporting outstanding balances and bad
debts

CARUPAJAINDAGA
 2.HOW DO YOU RECOGNIZE REVENUE IN
THE O2C PROCESS?

Revenue is recognized based on AS 9 (Revenue

Recognition) or Ind AS 115 (IFRS 15), which
states that revenue should be recorded when:
• Goods/services are delivered.
• The amount is measurable.
• Collection is reasonably certain.

For example, in credit sales, revenue is recorded

when goods are dispatched, not when cash is
received.

CARUPAJAINDAGA
 3.WHAT JOURNAL ENTRIES ARE PASSED IN
THE O2C PROCESS?

1. When sales are made (credit sales):

Accounts Receivable A/c Dr. ₹10,000
To Sales A/c ₹10,000
(Being goods sold on credit)
2. When payment is received from the
customer:
Bank A/c Dr. ₹10,000
To Accounts Receivable A/c ₹10,000
(Being payment received from customer)
3. For discount allowed to customers:
Cash/Bank A/c Dr. ₹9,800
Discount Allowed A/c Dr. ₹200
To Accounts Receivable A/c ₹10,000
(Being payment received with discount)

CARUPAJAINDAGA
 4.HOW DO YOU HANDLE ACCOUNTS
RECEIVABLE RECONCILIATION IN O2C?

Accounts receivable reconciliation involves:

1. Matching invoices with customer payments.
2. Verifying outstanding balances with
customer statements.
3. Identifying missing/incorrect payments and
resolving disputes.
4. Adjusting journal entries for bad debts or
discounts.
5. Ensuring AR ledger matches the trial
balance.

CARUPAJAINDAGA
 5.WHAT IS THE IMPACT OF DELAYED
COLLECTIONS ON FINANCIAL STATEMENTS?

Delayed collections affect:

• Cash Flow Statement: Reduces liquidity and
working capital.
• Balance Sheet: Increases accounts receivable,
impacting financial ratios.
• Profit & Loss Account: May lead to higher bad
debt provisions, reducing profits.

CARUPAJAINDAGA
 6.WHAT STEPS DO YOU TAKE IF A
CUSTOMER DELAYS PAYMENT?

1. Send reminders before and after the due

date.
2. Call the customer to understand the delay.
3. Negotiate a payment plan if necessary.
4. Escalate to the collections team for further
action.
5. Make provision for bad debts if payment
remains uncollected.

CARUPAJAINDAGA
 7.WHAT IS DAYS SALES OUTSTANDING
(DSO), AND HOW IS IT CALCULATED?

DSO measures the average number of days a

company takes to collect payments after a sale.

A high DSO means slower collections,

impacting cash flow. A low DSO indicates
efficient credit management.

CARUPAJAINDAGA
 8.HOW DO YOU HANDLE BAD DEBTS IN O2C
ACCOUNTING?

If a customer defaults, a provision is created:

Bad Debt Expense A/c Dr.
To Provision for Doubtful Debts A/c
• If the amount is confirmed as uncollectible,
write-off the bad debt:
Provision for Doubtful Debts A/c Dr.
To Accounts Receivable A/c
(Being bad debt written off)
• If a written-off amount is later recovered:
Bank A/c Dr.
To Bad Debt Recovered A/c

CARUPAJAINDAGA
 9.WHAT EXCEL FUNCTIONS ARE USEFUL IN
O2C ACCOUNTING?

VLOOKUP/XLOOKUP – To match customer

payments with invoices.
IF() & Conditional Formatting – To highlight
overdue invoices.
SUMIFS() – To calculate total collections by
date/customer.
Pivot Tables – For AR aging reports and
analysis.

CARUPAJAINDAGA
 10.HOW DOES ERP SOFTWARE LIKE SAP OR
TALLY HELP IN O2C?

ERP tools automate the O2C process by:

Generating automated invoices based on
sales orders.
Tracking customer payments and aging
reports.
Automating reconciliations between AR and
bank transactions.
Reducing errors in financial reporting and
improving collections efficiency.

CARUPAJAINDAGA
 FINAL TIPS FOR O2C ACCOUNTANT
INTERVIEWS:

✅ Revise key accounting concepts (AS 9,

revenue recognition, bad debts).
✅ Understand AR reconciliation and journal
entries.
✅ Be familiar with Excel and ERP tools (SAP,
Tally, Oracle).
✅ Know how O2C impacts financial statements
and cash flow.

CARUPAJAINDAGA
Ready to Ace
your next
Interview?
Save this post & follow for more tips!

CA Rupa Jain Daga

(Mini Booklet for Ready Reference)

Day 1

PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
 TABLE OF
CONTENT

01 General Points

02 Accounting Treatment

03 TDS Treatment

04 RCM on Renting of Immovable Properties

05 RCM on Renting of Motor Vehicle

06 Input Tax Credit

07 Block Credit

08 Income Tax Provision

09 Disclaimer
 GENERAL
POINTS
Check Supportings(Rent Agreement, Invoices)

Properly Sanctioned

The proper bifurcation between Revenue and

Capital Expenditure

Accrual Basis of Accounting

Personal Expenses not recorded

Compare with the Previous Financial Year

The proper bifurcation between direct and

indirect expenses.

Cash payment in a single day exceeding Rs

10,000 to a single party

CA RUPA JAIN DAGA

 ACCOUNTING
TREATMENT
Type of Premises Nature of Expense Accounting Head

Factory/
Direct Expense Trading Account
Production Unit

Office/Showroom Indirect Expense P/L Account

TDS
TREATMENT
Limit
Description Section Rate
(per annum)
Rent on Land 2,40,000/
194I 10%
and Building 6,00,000
Rent on Plant 2,40,000/
194I 2%
and Machinery 6,00,000

CA RUPA JAIN DAGA

 RCM ON RENTING OF
IMMOVABLE PROPERTIES
Category of Service Supplier Recipient

Renting of Any person

CG,SG,UT,LA
Immmovable Property registered in GST
*Renting of Any person
Any person
residential dwelling registered in GST
Any registered
Renting of person (other than
Immmovable Property Any unregistered a person who has
other than residential person opted to pay tax
dwelling under composition
levy)

*Conditions
Property is residential dwelling
Recipient (Tenant) must be a registered person
Supplier (Landlord) can be any person (registered or
not)
For Commercial Purpose

CA RUPA JAIN DAGA

RENTING OF MOTOR VEHICLE DESIGNED TO CARRY
PASSENGER (WHERE COST OF FUEL INCLUDED)

REGISTERED UNREGISTERED

OPTION AVAILABLE SERVICE RECIPIENT

TO SUPPLIER BODY CORPORATE

12% WITH 5% WITH RCM

FULL ITC LIMITED ITC

SERVICE PROVIDER SERVICE PROVIDER

FCM
BODY CORPORATE NON BODY CORPORATE

SERVICE RECIPIENT SERVICE RECIPIENT SERVICE RECIPIENT

NON BODY CORPORATE/ NON BODY BODY CORPORATE
BODY CORPORATE CORPORATE

FCM FCM RCM

CA RUPA JAIN DAGA

 INPUT TAX CREDIT

Eligibility and Conditions for Taking Input Tax

Credit (ITC) [Section 16]

Business Use ITC Available

Goods/Services
Non-Business Use ITC Not
Available

Government

Sec 16(2)(c) Sec 16(2)(d)

Payment Return
of Tax ITC should be reflected in GSTR 2B Filling
Sec 16(2)(a) Invoice
Sec 16(2)(b) - Goods or services

Supplier Recipient

Payment of invoice value should be made within 180 days

CA RUPA JAIN DAGA

 BLOCK CREDIT
Input Tax Credit is disallowed on Renting, Leasing or hiring
of Motor Vehicle, vessels or aircraft except when used for
Motor vehicle intended for carrying goods
Passenger vehicle with seating capacity exceeding 13
individuals
Passenger vehicle approved for up to 13 seats, used for
the following taxable services:
1. Carrying passengers
2. Imparting driving lessons using such
3. Selling or transferring ownership of such vehicles

Allowance of ITC on Renting of Motor Vehicles for

Specified Use
Input tax credit on goods and services specified under Section
17(5)(b)(i) shall be available if the following conditions are met:

1. The inward supply of such goods or services or both is

used by a registered person for making an outward taxable
supply of the same category of goods or services or both
or as an element of a taxable composite or mixed supply;
or
2. Input tax credit in respect of such goods or services or
both shall be available where it is obligatory for an
employer to provide the same to its employees under any
law for the time being in force.

CA RUPA JAIN DAGA

 BLOCK CREDIT

ITC Eligibility on Renting of Motor Vehicles for

Specific Purposes

Input tax credit on goods or services mentioned under

Section 17(5)(b)(i) can be claimed if the following conditions
are fulfilled:

1. The goods or services (or both) must be received by a

registered person and utilized for making outward
taxable supply of similar goods or services (or both), or
they should be part of a taxable composite or mixed
supply; or
2. The input tax credit shall also be permitted if it is legally
mandatory for the employer to offer such goods or
services (or both) to their employees, as per prevailing
laws.

CA RUPA JAIN DAGA

 INCOME TAX
PROVISION

Rent as a Business Expense (Not House Property)

Applicable to:
Proprietorships, Firms, Companies, Professionals (under
PGBP head – Profits & Gains of Business or Profession)

Allowability of Rent:
Section:
Section 30 (Rent, rates, taxes, repairs & insurance of
building)

Rent paid for business premises is allowed as a

deduction.
It should be:
1. For business use
2. Actually paid or payable
3. Supported by proper rent agreement and payment
proof

CA RUPA JAIN DAGA

 INCOME TAX
PROVISION

Related Party Transactions

If rent is paid to a related party, ensure:
Agreement exists
Rent is reasonable
Else, Assessing Officer may disallow under Section
40A(2) (Excessive/unreasonable payment to related
parties

Section 80GG

Who can claim it?

Individual who does NOT get HRA (House Rent Allowance)
from employer
Salaried or self-employed persons

CA RUPA JAIN DAGA

 INCOME TAX
PROVISION
Conditions:
1. You should be paying rent for a residential
accommodation.
2. You or your spouse or minor child should not own a
house in the same city.
3. If you own a house elsewhere, you should not claim it as
self-occupied.
4. You must file Form 10BA to claim the deduction.

Deduction Amount (Least of the following):

Criteria Amount (per year)

₹5,000 per month ₹60,000

25% of total income

As applicable
(excluding LTCG etc.)

Actual Rent Paid – 10% As applicable

of total income

CA RUPA JAIN DAGA

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Disclaimer: The content has been prepared with utmost care and attention to detail. However, inadvertent errors or omissions
may occur. The author shall not be held responsible for any loss or damage arising from the use of this information. It is
advisable to consult the relevant legal or tax expert for specific guidance.
RECORD TO REPORT
(R TO R) INTERVIEW
Questions and Answers

PREPARED BY :
CA RUPA JAIN DAGA
SKILLSHORT EDULIFE PVT. LTD.
1 WHAT IS RECORD TO REPORT
(R2R) IN ACCOUNTING?
Record to Report (R2R) is an accounting
process that involves recording financial
transactions, reconciling accounts, closing
books, and generating financial reports for
internal and external stakeholders. It ensures
the accuracy and integrity of financial data.

CA RUPAJAINDAGA
2 WHAT ARE THE KEY STEPS IN
THE R2R PROCESS?
The key steps in R2R include:
1. Recording financial transactions
2. Performing reconciliations (bank,
intercompany, GL)
3. Accrual and prepayment adjustments
4. Closing books (month-end and year-end)
5. Preparing trial balance and financial
statements
6. Compliance with accounting standards and
audits

CA RUPAJAINDAGA
3 HOW DO YOU ENSURE ACCURACY
IN FINANCIAL REPORTING?
Accuracy in financial reporting is ensured through:
• Proper reconciliations
• Timely adjustments and accruals
• Following accounting standards (GAAP, IFRS)
• Internal controls and audit trails
• Reviewing trial balance before closing

CA RUPAJAINDAGA
4
WHAT ARE SOME COMMON R2R
CHALLENGES, AND HOW DO YOU
HANDLE THEM?
Some common challenges include:
• Data discrepancies: Resolved through
reconciliations and variance analysis
• Delays in closing books: Managed by
streamlining processes and automation
• Compliance issues: Ensured through adherence
to regulations and internal audits

CA RUPAJAINDAGA
5 WHAT IS THE IMPORTANCE OF
GENERAL LEDGER (GL) IN R2R?
The General Ledger (GL) is the backbone of R2R as
it records all financial transactions. It helps in:
• Preparing financial statements
• Ensuring accuracy in reporting
• Reconciling sub-ledgers with trial balance

CA RUPAJAINDAGA
6
WHAT IS THE DIFFERENCE
BETWEEN ACCRUALS AND
PROVISIONS?
Accruals are expenses or revenues recognized
before cash is received or paid (e.g., accrued
salaries).

Provisions are amounts set aside for future

liabilities (e.g., provision for doubtful debts).

CA RUPAJAINDAGA
7 HOW DO YOU PERFORM A BANK
RECONCILIATION IN R2R?
Bank reconciliation involves:
1. Comparing the bank statement with the
company’s GL balance
2. Identifying unrecorded transactions (e.g., bank
charges, direct deposits)
3. Adjusting the cash book for errors and missing
entries
4. Ensuring the final balance matches

CA RUPAJAINDAGA
8 WHAT FINANCIAL REPORTS ARE
PREPARED IN THE R2R PROCESS?
Common reports include:
• Balance Sheet
• Income Statement (Profit & Loss)
• Cash Flow Statement
• Trial Balance
• Tax and statutory reports

CA RUPAJAINDAGA
9
HOW DO YOU HANDLE
INTERCOMPANY
RECONCILIATIONS IN R2R?
Intercompany reconciliation involves:
• Matching transactions between two entities
• Ensuring no discrepancies in recorded amounts
• Resolving differences through adjustments
before book closure

CA RUPAJAINDAGA
10
WHAT ERP TOOLS ARE
COMMONLY USED IN R2R, AND
HOW DO THEY HELP?
Common ERP tools include SAP S/4HANA, Oracle
Financials, Tally, and QuickBooks. They help in:
• Automating transaction recording
• Ensuring real-time financial reporting
• Reducing errors in reconciliation
• Streamlining the closing process

CA RUPAJAINDAGA
Ready to Ace
your next
Interview?
Save this post & follow for more tips!

CA Rupa Jain Daga