How to prepare for interview for th post of accountant

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Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2012 Dear Expert,

I an currently working as an accountant with a small manufacturing company and getting 12000/- pm,
I have got an opportunity from a good co. in where the pay scale will be 20000/- +,

So, I want to know how to prepare for the interview and please provide me sample questions on the following topics.

1.VAT & CST
2.Income Tax
3.Service tax
4.General Accounting related questions
5.Payroll related
6.Any other issue related to the post of accountant.

please reply in detail.

Thanks in advance.

Ki$hor B

Ki$hor B (Expert)
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01 July 2012 The Qs based on the topics as mentioned are mostly answerable based on the working experience in the area.

Try to brush up your skills by speaking to the people who handle similar profile.

@ sample Qs,
Each topic is covered by an Act, so anything relevant to your JD could be asked.

there is an institute that teaches these topics practically by skype. Check the URL:
http://taxconnectindia.blogspot.in/

Querist : Anonymous

Querist : Anonymous (Querist)

01 July 2012 thanks Kishore....

pls provide some sample Question on above topic.

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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28 July 2024 Preparing for an interview for an accountant position, especially when transitioning to a role with a higher pay scale, requires a thorough understanding of key accounting concepts and practical experience. Here's a detailed guide on how to prepare and sample questions to practice:

### **1. General Preparation Tips**

1. **Research the Company**: Understand the company's industry, products or services, and recent news. This will help you tailor your answers and show your interest in the company.
2. **Review Your Resume**: Be ready to discuss everything listed on your resume, including your current responsibilities, accomplishments, and any specific projects you've worked on.
3. **Know the Job Description**: Familiarize yourself with the key responsibilities and skills required for the role you're applying for.
4. **Prepare Examples**: Think of examples from your experience that demonstrate your skills and achievements in accounting.

### **2. Sample Questions and Answers**

#### **VAT & CST**

- **Q1: What is VAT and how does it differ from CST?**
- **A1**: VAT (Value Added Tax) is a consumption tax levied on the value added at each stage of production or distribution. CST (Central Sales Tax) is a tax on sales of goods that take place in the course of inter-state trade or commerce.

- **Q2: How do you calculate VAT on a sale?**
- **A2**: VAT is calculated on the sale price of the goods. For example, if the VAT rate is 12.5% and the sale price of the goods is ₹1K, then VAT would be ₹1K * 12.5% = ₹125.

- **Q3: What are the main compliance requirements for VAT and CST?**
- **A3**: Compliance requirements include timely filing of VAT/CST returns, maintaining proper records of sales and purchases, issuing VAT/CST invoices, and ensuring payment of taxes.

#### **Income Tax**

- **Q1: What are the key components of taxable income for an individual?**
- **A1**: Taxable income includes salary, house property income, capital gains, business income, and other sources such as interest and dividends.

- **Q2: Explain the concept of TDS and its importance.**
- **A2**: TDS (Tax Deducted at Source) is a mechanism where tax is deducted from payments like salaries, interest, and other income at the time of payment. It ensures tax collection at the source of income and helps in avoiding large tax payments at the end of the financial year.

- **Q3: How do you handle a situation where the TDS has been deducted but not deposited by the deductor?**
- **A3**: If TDS has not been deposited, the deductee must ensure that the TDS is deposited by the deductor and also report this in their income tax return. If not deposited, it can lead to a demand from the income tax department.

#### **Service Tax**

- **Q1: What is Service Tax and how is it calculated?**
- **A1**: Service Tax is levied on services provided or received. It is calculated as a percentage of the value of taxable services. For instance, if the service tax rate is 15% and the value of the service is ₹1000, the service tax would be ₹1K * 15% = ₹150.

- **Q2: What are the exemptions available under Service Tax?**
- **A2**: Exemptions can be available for certain services such as educational services, health services, and services provided to the government.

- **Q3: How do you maintain records for Service Tax compliance?**
- **A3**: Records should include invoices issued, service tax collected, service tax paid on input services, and filed returns. Proper documentation is essential for compliance and audit purposes.

#### **General Accounting Related Questions**

- **Q1: Explain the concept of accrual accounting.**
- **A1**: Accrual accounting recognizes revenue and expenses when they are incurred, regardless of when cash transactions occur. This method provides a more accurate picture of a company's financial performance.

- **Q2: How do you handle reconciliation of bank statements?**
- **A2**: Reconciliation involves comparing the bank statement with the company’s cash book to ensure that all transactions are recorded and discrepancies are resolved. It includes identifying and correcting errors and updating records.

- **Q3: What is the difference between capital and revenue expenditures?**
- **A3**: Capital expenditures are used to acquire or improve fixed assets and are capitalized on the balance sheet. Revenue expenditures are regular operating expenses and are charged to the profit and loss account.

#### **Payroll Related Questions**

- **Q1: How do you calculate employee salaries and wages?**
- **A1**: Calculate based on the salary structure, including basic pay, allowances, deductions (like PF, ESIC), and any overtime or bonuses. Ensure compliance with legal requirements for deductions and benefits.

- **Q2: What are the statutory deductions from employee salaries?**
- **A2**: Statutory deductions include Provident Fund (PF), Employee State Insurance (ESI), Professional Tax (if applicable), and Tax Deducted at Source (TDS).

- **Q3: How do you handle payroll for employees with different salary structures?**
- **A3**: Implement a flexible payroll system that can accommodate various salary structures, allowances, and deductions. Ensure accurate calculation and timely processing of salaries.

#### **Other Relevant Issues**

- **Q1: How do you handle discrepancies in accounting entries?**
- **A1**: Investigate discrepancies by checking source documents, verifying calculations, and ensuring that all entries are recorded correctly. Make necessary corrections and maintain proper documentation.

- **Q2: What are your strategies for staying updated with accounting standards and regulations?**
- **A2**: Regularly review updates from professional accounting bodies, attend workshops and webinars, and subscribe to relevant publications and newsletters.

- **Q3: How do you ensure compliance with internal controls and financial regulations?**
- **A3**: Implement and follow internal control procedures, conduct regular audits, and stay informed about regulatory changes. Ensure that all transactions are properly documented and authorized.

### **3. Practical Tips**

1. **Prepare Real-Life Examples**: Be ready to discuss examples from your current job where you applied your knowledge of VAT, Income Tax, Service Tax, and other accounting principles.
2. **Practice Mock Interviews**: Simulate interview scenarios with friends or mentors to build confidence.
3. **Stay Updated**: Be aware of recent changes in tax laws, accounting standards, and regulations.

By following these preparation strategies and practicing sample questions, you can improve your chances of success in your accountant interview. Good luck!