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Accounting Interview Questions

What is minority interest?

Firstly we have to understand the meaning of Holding company &Subsidiary company. Holding Company is those Company who holds majority (51%of share)or more than that of another Company is called as Holding company. And the company the shares of which are held is called Subsidiary Company. Holding company may not purchase all the shares of it's Subsidiary company when some of the shares of the Subsidiary company are held by outsider's the interest of that Subsidiary company is known as Minority interest The Minority interest must be calculated and shown on the Liability side of the Consolidated Balance Sheet.
What is minority interest? Minority interest in business is an accounting concept that refers to ownership of a company (subsidiary) that is less than 50% of outstanding shares.

What is meant by Bridge Loan?

Bridge loan means temporary finance provided to the company to finish of the project after that the company needs to repay the loan. 2.

RE: What is meant by Bridge Loan? Bridge loans are an effective vehicle to immediately capitalize on a purchase opportunity. It is a form of short-term financing which is expected to be paid back - generally within the range of 6 to 36 months - once the borrower obtains more permanent, lower cost financing. Bridge loans in corporate finance are sometimes called "gap financing", and used to cover the time between redemption of one bond issue and its replacement by a new issue. They can also be operating loans for periods between LOI and acquisition, or quiet period and IPO

Which items belong in income statement and do not belong in balance sheet statement
Income Statement or Profit & Loss statement Debit 1. All Expenses Balance Sheet statement It records all Assets, Liabilities, Capital

2. Office Expenses 3. Administrative Expenses 4. Selling & Distribution Expenses Credit All income & gains Sales Commission received Rent received etc.

What is the difference between a Provisions and Reserves?

PROVISIONS: These are made aganist charge. Provision are made if there is profit or not for company.ex: Bad debts, income tax. RESERVES These are made on profits. Generally every has kept minium 10% as reserves

miscellaneous expenses
The following are the misc.exps 1. Preiliminary exps 2. Exps on underwriting of shares & debentures incl u/w comm. or brokerage. 3.Discount allowed on issue of shares & debentures 4.Int. paid out of capital during construction period 5. Development expenditure not adjusted. These exps are shown under the head Misc. Expenditure Assets side of the B/S

what is double entry book keeping

In double entry book keeping method a journal entry is posted to both respctive accounts for each transaction. Let's say for sales transaction, debit entry posted to cash account credit entry posted to sales account. So it's one of the methods to post accounting transactions.

what is the difference between personal account real account and nominal account ?
Golden Rule Personal account:debit the receiver :Credit the giver. Real account :Debit what comes in Credit what goes out.

Nominal account:Debit all expenses and losses Credit all incomes and gains

2 1. personal account:called personal account ex- sushil account, mahesh account. 2

That account which is realperson,artificial

person are

the

real account;-

real account are two type;

which has pysical shape are called tangible and which are not touchable are called non tangible. 3.nominal

account;-

in nominal account all the proffit&loss,

expenses and income are comes

How do you calculate sensex points?

SENSEX is calculated using the "Free-float Market Capitalization" methodology. As per this methodology, the level of index at any point of time reflects the Free-float market value of 30 component stocks relative to a base period. The market capitalization of a company is determined by multiplying the price of its stock by the number of shares issued by the company. This market capitalization is further multiplied by the free-float factor to determine the free-float market capitalization. The base period of SENSEX is 1978-79 and the base value is 100 index points. This is often indicated by the notation 1978-79=100. The calculation of SENSEX involves dividing the Free-float market capitalization of 30 companies in the Index by a number called the Index Divisor. The Divisor is the only link to the original base period value of the SENSEX. It keeps the Index comparable over time and is the adjustment point for all Index adjustments arising out of corporate actions, replacement of scrips etc. During market hours, prices of the index scrips, at which latest trades are executed, are used by the trading system to calculate SENSEX every 15 seconds and disseminated in real time

How to prepare finalisation accounts?

first of all post all the journals in the ledger and then post in the trial balance and from that prepare trading account and manufacturing account (if necessary) and profit and loss account and then prepare profit and loss adjustment account and with the help of the trial balance prepare balance sheet and also show the profit under reserves after deducting the previous year losses and show contigencies (if any) in the notes to accounts 2. First of all we journalise the entries, and post into the ledgers and again prepare the trial balance after that trading and profit & loss a/c, balance sheet. Again we will have to analyse the all aspects for decision making

What is meant by reserves?

Reserve is nothing but a buffer......we have two reserves like Capital Reserve and General Reserve..... Fow acquiring Capital Items such reserve is useful......for all general items general reserve is useful 2 Reserve is nothing but money kepting a side for future expenses/payments i.e. unknown expenses

Explain about contralling accounts.Explain about Subisidiary Ledger.Explain about mixied accounts
Controling accounts are Sundry Debtors and Sundry Creditors Sub-Ledgers are Vendor accounts and Customer Accounts

How do you prepare MIS Report?

That depends on management requirement..... what ever the management ask we have to present that report

Why do we prepare Trail Balance?

Trial balance will show Net balances of all accounts irrespective of nature of account such as Assets, Liabilities, Income and Expenses. Once the Credit and Debit balances of a Trial Balance will tally then onle we can proceed for Profit & Loss A/c and Balance Sheet

Why always Liabilities are on left side and Assets on right side in Balance Sheet ?
This is as simple as why we are eating with right hand ratherthan left hand....... According to Schedule 6 of Companies act 1956, they have give certain formats to all financial statements. we have to follow the same formats.

Explain Inter-Company Account

Inter Company means Two or More Companies under one Group Company. For Example Reliance have different companies like Mobiles, Oil products, malls, telecom, etc., all these companies called Reliance Group. If the saem Vendor is supplying material to all companies we can make the payment from one company code that is called Inter Company Acount

What is the difference between financial account and financial statement ?

Financial Account is an Individual ledger of an account (Ex: Sales A/c, Purchase A/c, Vendor A/c, Customer A/c), whereas Financial Statement is a final picture of an organisation like Profit & Loss Account and Balance Sheet.

What is the difference between Perpetual & Periodic Inventory system?

In perpetual inventory system the inventory account is adjusted continually throughout the accounting period. Whereas in the Periodic Inventory System - Recording inventory transactions periodically than recording them continually.

2
Periodic Inventory happens in a certain period/stipulated time of the financial period of a company while, Perpetual may happen several time in a year.

3.
RE: What is the difference between Perpetual & Periodi... Periodic Inventory System Perpetual Inventory System Inventory account and cost of goods sold are Account and the balance of costs of goods sold and inventory non-existent until the physical count at the end of account exist all the time. the year. Purchases account is used to record purchases. Purchase Return account is used to record Purchases Returns account. Cost of goods sold or cost of sale is computed from the ending inventory figure For goods returned by customers there are no inventory entries. No individual purchases account but the purchases are recorded in the Inventory Account. No individual Purchase Returns account but the purchases return are recorded in the Inventory Account. Record cost of goods sold/cost of sale inventory is reduced when there is a sale. Returns from customers are recorded by reducing the cost of goods sold and adding back into inventory.

What is Contingent Liabilities?

A contingental liability may or maynot be liability to the company. It is mandatory to show in Balance Sheet. Ex:- Exgratia payable to Workers. Sometimes company has to pay, sometimes may not pay. 3. Contingent liability may be a liability or not will be decided by the future actions of the organisation. that means future actions will decide an activity as liability or not for example : if the government policy regarding taxation is pending, the trader is not in a position to decide the exact amount of tax. In this case the trader will decide the total liability of tax after the decision is finalised.

what is bank reconcillation statement?

A Bank rencilation statements are prepared if balance of bank account as shown in cash book differs from balance as shown in passbook. this statement shows the reasons or transactions because of which balances as shown in cash book and pass book are not tallying with each other.

What is Amortization?
1. The paying off of debt in regular installments over a period of time. 2. The deduction of capital expenses over a specific period of time (usually over the asset's life). More specifically, this method measures the consumption of the value of intangible assets, such as a patent or a copyright. 3. Suppose XYZ Biotech spent $30 million dollars on a piece of medical equipment and that the patent on the equipment lasts 15 years, this would mean that $2 million would be recorded each year as an amortization expense.

While amortization and depreciation are often used interchangeably, technically this is an incorrect practice because amortization refers to intangible assets and depreciation refers to tangible assets.

What is purchasing order?What is vendor?What is sarbanes-oxley act?what is debit and credit note?Wh
Purchase Order are pre-transaction document by which parties agree to purchase at specified terms. Vendor is a person who sell goods. 2. A purchase order (PO) is a commercial document issued by a buyer to a seller, indicating the type, quantities and agreed prices for products or services that the seller will provide to the buyer. Sending a PO to a supplier constitutes a legal offer to buy products or services

What is the Provision? What is the Entry for Provision?

provision means charge against profit for future contingencies. 2. Provision means liabilities It means payable account it's an very usefull for controlling payable accounts like telephone charges, ESIC accounts, EPF accounts, EPF payable accounts Dr to EPF accounts ESIC payable accounts Dr to ESIC account.

Should the Cash Discounts GL hit the Balance Sheet in SAP from US concept. If yes then why? Or If N
Are you asking an accounting question or an IT question? Cash discounts flow through the income statement regardless of what software you are using.

What is the difference between ordinary shares and Preference share?

ordianry shares are eligible for dividend wheras preference is not and ordinary shares get settlement after prefernce shares and ordinary shares are paid only in case of winding up . 2. Preference shares have the preference over ordinary shares when it comes to dividend and repayment of capital

What is difference between cash and fund?

A financial institution that sells shares to individuals and invests in securities issued by other companies is called fund & we can also define this as reserve of money set aside for some purpose is called fund A Prompt payment for goods or services in currency or by check is called a cash or we can also tell money in the form of bills or rupees/coins.

What is Letter of Credit?

LC( Letter of Credit) is a set of documents which are very essential for goods being transported from one country to another. This set includes that of invoices, shipping documents, gurantees and others. 2. A letter of credit indicates for the customers ability (credit limit) and in other words LC is a commitment from bank to the receiver for payment.

What is an adjusting journal entry?

Adjusting entries are those entires thts passed to rectify an error or wrong entry already made.... some accounting softwares have disabled edit function in the accounts, so the only way to undo the mistake is to pass a correction entry or adjusting entry... 2. An adjusting journal entry means, if you made any wrong entry (may be principle, amount, party name) , to correct that one an entry must be passed, that entry is called adjusting entry

What Account is Salary outstanding? Is it real, personnel or nominal account?

Salary outstanding is an administrative expense or rather an Indirect expense. If the salary outstanding is related to previous year then it shall be debited to profit and loss account as an expense and the amount related to current year shall be shown as current liabilities under the liabilities side of the balance sheet. As far as it is real, personnel or nominal is concerned, it is nominal account as the golden rule of accounting for nominal is debit all expenses and losses and credit all incomes and gains.

what is balance sheet and offbalance sheet?

A form of financing in which large capital expenditures are kept off of a company's balance sheet through various classification methods. Companies will often use off-balance-sheet financing to keep their debt to equity (D/E) and leverage ratios low, especially if the inclusion of a large expenditure would break negative debt covenants.

What is the diffrence between Travelling and Conveyance ?

Travelling means going from one place to another place where as conveyance means arranging a vehicle for transportation purpose.

What is Contingent Liability?

Contingent liabilities are liabilities that may or may not be incurred by a company and which depend on the outcome of a forthcoming event.

What is a Comprehensive Income?

Items GAAP does not want us to record in Income Statement. GAAP does not want financial statements provider to mislead users. Ex. items will record in comprehensive income are Unrealized gain or loss on avaliable-for-sales securities; Unrecognized net gain or loss; Unrecognized prior service cost (credit); Unrecognized net gain or loss.

2. Equals net income minus all recognized changes in equity during a period

what is balancing?
According to double entry system of accounting, Debit side total and credit side total of an account should be equal. Hence making the debit side total and credit side total equal is called as Balancing. 2. balancing means total of Dr. and Cr. sides are equal.

what the functions of manger -accounts and manager-finance.explain in detail.?

when we see their difference from broad organizational review the function of accounts manager 1. the approval of the accounting system utilization and calculated amounts in supportable documents ,for example in journal vouchers 2. the approval of the newly used accounting methods that has to be adopted and the change of the accounting procedures of the company but regarding the manager 1. controls the over all activity of the organization including the account manger

Why in the interview of accounts by a CA a candidate is asked that whether he knows to make the Rec
Actually reconciliation is much important in credit bound modern organization. this only shows exactly how, relally a company have in bank account. so, organization payment and investment policy purely depends on their amount in banks. Also, reconciliation is one of the major complex one in part of tallying. so, once a candidate familiar with reconciliation, most of managers believe that the candidate are capable handling critical situation of fulfilling effect of errors made in accounting.

What is prepaid expense and what are its effects?

Prepaid expenses are those expenses which are paid in advance, and whose benefit will be available in future.

What is the difference between provision & reverse?

Provision is made against "certain" future liability, when amount is not certain. For ex: Provision for Tax, tax is a definite liability, when we dont know how much we have towards tax, then we have to provide some amount to meet that in future. Reserve is made is made out of profits, to meet "uncertain" future liabilities.

what is meant by partitioning

Generally accounting is the art of recording, clasyfing ,and summarising the business transactions. here the second one classifying which deals with the partitioning of activities in different groups

What is "Back Flash Accounting"

When you report Finished goods production in the system, raw materials/packing materials/chemicals will be issued automatically by the system as per the Bill of materials specified in the system for that specific finished product

How does posting accts payable and receivable effect the general ledger?
Once the posting is done, then the debtors/creditors ledgers are updated and the correct balance is reflected in the ledgers.

What are the advantages of Computer accounting over Paper accounting? What are the advantages of Computer accounting over Paper accounting?

There are many advantages from computer accounting over manual accounting. You can get automatically the creditors data, debtors data, sale proceeds, balance sheet, and many more information in the desired manner. 2. since accounts are prepared throu computers frauds cannot be commited easilyand also with the help of tally u can easily pass journal entry and also finalisation of accounts

What is Departmental Accounting? Give an example.

departmental accounting means account prepared separately for the department and here ledgers will be opened trial balance will be prepared and also p&l account will be prepared and profit or loss is included in the main p&l account and also shown in the balance sheet

What is the difference between Capital Reciept and Revenue Reciept?

A capital receipt is a receipt which is derived from sale or purchase of capital assets like plant and machinery, furniture, investment (long term) etc., which shall not be occuring all the time. A revenue receipts is something which is earned from daily activities like sale of goods or purchase of goods etc. A revenue receipts shall be repetative in nature and shall be shown or credited in the profit and loss account. 2. Capital receipt is a receipt when you sold any business asset like building, machine, furniture etc. Where as revenue receipt refers to receipt of sale proceeds, comission received, tax refund etc.

Which of the following dose not included in the Government accounting Balance sheet: 1) Asset, 2) Cost, 3) Liability, 4) Surplus.
I think it is cost, because it is a part of trading or profit & loss account 2 My understanding is that, the Cost is a part of Income Statement.It is not shown in the Balance Sheet.

what is trade bills

In my opinion trade bills are the suppoting documents for the trade expenses incurred by the company.

2 Every transaction must be supported by any document. A trade bill is a supporting

document of business activities like purchases , sales, receipts, payments etc...

what is dividend wareents?

Generally dividends are paid from out of profits derived by the company to the investors. A dividend warrant is an instrument sent by the company with the amount to be received by the investor.

2. Dividend is the part of profits payable to the owners of the company i.e., Shareholoders. Some companies issues warranets to its share holders instead of paying dividents in the form of cash in the form of document by mentioning the Warrant Price and other details. The price mentioned in it is also called exersise prise. Some times company may not specify the name of the holder. it can be filled by the holder of the document. Advantages : It helps to the issuing company from paying the Tax. It is easy to transfer from one person to other without any formalities It helps to increase the share/capital of the company

what is mean by Working Capital?

working capital is the excess of current assets over current liabilities 2. Current assets-Current Liabilities = working capital

3. Working Capital = Current Assest - Current Liabilities

In short It is Excess of Current Assets minus Current Liabilities which can be utilised as a Working Capital to run the Day today business.

what is the ficticious assets?

Fictitious assets are the expenses incurred by a Corporate which are not charged to P& L A/c in the same year like Share Issue and Management expenses,These expenses are charged to Pand L A/C over a period of 3 to 5 years. As assets cannot be seen physically but the benefit of such expenditure spreads over a period such expenses are known as Fictitious assets.

2. There

are certain expenditures/expenses, the benefit of which is not limited to one particular year. Therefore, the whole of these expenses cannot be charged to the profit and loss account at once and hence they are deferred. For e.g. Share Issue Expenses, Discount of Issue of Debentures, etc. Also the debit balance of Profit and Loss Account (loss) is a Fictitious Asset. It is to be cancelled out or adjusted with profit of subsequent years or reserves.

What is premises in accounting sense ? What is VAT adjustment?

Premises is and Fixed Assed in the accounting sense which is shown in the balance sheet in final accounts Vat adjustment is out put tax - input tax the vat which is paid on purchase will be decucted from vat colledted from sales this adjustment is known as vat adjustment

What is Service Tax & Excise? How it will be charge?

Service Tax is a form of indirect tax imposed on specified services called taxable services. Presently it covers 58 services. service tax shall be paid by the service provider but collected from the service receiver. Excise is also a form of indirect tax levied on goods produced or manufactured in India.

What do you mean by Bank Reconsilation Statement?

bank rencilation statements are prepared if balance of bank account as shown in cash book differs from balance as shown in passbook. this statement shows the reasons or transactions because of which balances as shown in cash book and pass book are not tallying with each other. 2. to adjust the difference between bank passbook and company cash book is calles brs

What is Capital Budget?

Capital Budgeting is a way to justify capital expenditures. It's done to see if the added benefit of a capital purchase, ie increased revenue or decreased expense, exceeds the cost of capital.

what is SLA?
It depends on where you are using this abbriviation. SLA stands for Service Level Agreement Where in you are entering with the other departement of your organisation for performing some duties. ie Purchasing department may have SLA with Accounts payable departement that they will make all the payment to vendor with in 7 working days after received in their section with some terms and conditions.

Difference between Accounts and Finance

Accounting is concerned with the recording of transaction in a systematic manner. As such, it is concerned with recording the business event in a monetary form whether the cash is involved or not at the time of recording the business transaction. - Example: Consider a situation where a firm has bought material for 50,000 on 01.01.2007. This amount is to be paid after 30 days from the date of purchse to the supplier on 31.01.2007 . In this though money is not spent on 01.01.2007, the transaction is recorded in the books of accounts. Accounting functionalities involve, 1. Recording of transactions (Online transactions, Journal vouchers), 2. Checking the prime books (Cash book, Journals and Bank book), 3.Generating financial statements (P&L and B/S). Finance is concerned with raising of funds to meet the various cash flow needs of the organisation. Finance functions starts from gathering the cash flow information from the accounting records and also prepare projections of cash flow. Finance activities are concerned with preparing budgets and compare the same with the actual results for finding variances. Here, the sources and application of funds are prepared for both the budgets and actual scenarios.

Finance functionalities involve 1. Bank co-ordination, 2. Sourcing and Application of funds, 3. Preparing Budgets and 4. MIS and EIS reporting. Finance activities will encompass through the Accounting and Operations aspects of an organisation.

2. Accounts is mainly for outsiders i.e.shareholders, creditors,debtors and for borrowing entities.It
is prepared mainly for raising funds and for tax purpose. Finance is mainly prepared for management purpose. It is useful tool for management at time of preparing budget,cost allocation,cost reduction,etc. It is for managing the funds of the company - Source and Application. 3. Accounts have to do with the daily records of financial activities of an organization while Finance is the management of funds ranging from the sourcing for funds to the usage of funds and also control of cash outflows.

what are time sheets? how they are maintained

Timesheet is an approved document by a Authorised person of the particular Porject where employee is working , for the work done by the Concerned employee/consultant along with the descreption of work done . Time sheet contains the Billable/Non-Billable hours. Based on the Timesheet the Company will raise the the invoice, for the consulting services provided by its employee , on the end-client.

what is bills receivable?

BILLS RECEIVABLE, in merchant accounts, are all promissory notes, bills of exchange, bonds, and other evidences or securities which a merchant or trader holds, and which are payable to him.
2. BIILS RECEIVABLE IS AN CURRENT ASSET TO THE BUSINESS, WHEN V SELL TO ANY CUSTOMER IF HE CANT PAY THE AMT V GIVE HIM A DOCUMENT ASKING HIM TO PAYING WITHIN A SPECIIFIED TIME. EXAMPLE : MR.X SOLD GOODS TO MR.Y FOR RS.10000/- AND MR.Y IS NOT IN A POSITION TO PAY THE AMOUNT SO MR.X GIVE A DOUMENT TO MR.Y TO SIGN AND GIVE IT BACK TO HIM. HE WILL KEEP AS A ASSET TILL THE DUE DATE.

Accounting Manager - Interview Questions.

Tell me about a time you identified a problem and came up with the solution? What did you do? Describe a typical day at your current employer? Describe a project that required a high amount of energy over an extended period of time? What did you do to keep enthusiasm up? What are your daily challenges? How do you overcome those challenges? What's been the most difficult obstacle you have ever overcome? What are your strengths? What will you past employer tell us is the area where you could use improvement? What do you like to do the best at your current job? What is the thing that you like to do least? the answer is Accounting Manager, is a person who control and maintain all the accounts and records which is related with accounts. 2. Accounting Manager means, a person who is maintain the detail of record of a particular Assets, liabilities, owner's equity, revenue, or expenses.

what is operative accounts ?

Operative Accounts means Account is running/operating regularly,transaction is running from the account(debit/credit and deposit/withdrawl from account) this is called as Operative Account.

what is customer account ?

Debtors account and bills receivable account are theoritically same. Both are called as receivables. When we sold goods to debtors debtors account is debited. If we receive a bill from that debtor, we open bills receivable account by closing that debtor account. Thus, bills receivable account is nothing but debtor account. If the bill is dishonoured on the due date, we again debit the debtor account in our books. For information and accounting purpose we use both debtor account and bills receivable account.

what is meant by calender maintaince?

calender maintaince means update the sales , purchase and accounts records. Simply meaning is maintain the records monthly, quaterly, half yearly and yearly.

what is meant by daily accrual and booking ?

Meaning of Accrual: Revenues and costs are accrued (gathered), that is recognised as they are earned or incurred (and not as money is received or paid) and recorded in the financial statements of the periods to which they relate. Accrual basis of accounting is one of the fundamental accounting assumptions underlying the preperation and presentation of financial statements.

What are MIS reports and do you prepare it?

MIS is management information system.And MIS report is reporting information of reports like efficiency of wing or a department of a company. IF we take BPO (Call center)sector as eg. MIS consists of efficiency of agents,Avg time taken hold time etc ..and passing this to the mangement level for their analysis

What is deferred account?

A best example of a deferred account is advertisment expence account. This account are those where an investment or expense are is dont with an expectation of making a intangable profit which cannot be measured or directly linked to expense.

2. Deffered Account is somehing that is not realized in a business. Like in Installment sales
unrealized g.p consist of profit that is on overall installments while realized is on installment collected. Hence after installments are collected than the remaining will be unrealized of deffered.

What is job costing? Finding profitbility per job.

generally, it is the allocation of all time, material and expenses to an individual project or job; specifically, JOB COSTING is normally software based and provides for budgeting, forecasting, collecting and reporting on the expenditure and revenue associated with specific projects or jobs

what are the extraordinary items?

Transactions which happened due to catastrophic events i.e unsual circumstance example: earthquake, flood, psunami etc are called extraordinary items.

How to do credit control?

credit control is done by two way one is with the help of govt another is ,with the help by govt+central bank of a contury for e.g. change in bank rate,change in margin requirement of loan,change in cash reserve ratio ,change in liquidity ratio ,change in tax rate etc.

2 1) Make the creditor, your debtor 2) For good creditor, give discounts & offers 3) For bad creditor, inform your position of willingness but inability to sustain relationship keeping in mind our business position.

What is your role in planning?

It is a common question in interview, on the basis of cv Planning is a group work, so we find what work we done on the planning process. Every work is group work so we find what work we done in every part of Accounting

2 . planning is future goals of any business aspect they can be categorised into three parts
stratigical planning uses by top level management.(board of director, M.D for 5-10 yrs long) tactical planning uses by middly level management(1-5 yrs)business manager etc operational planning means day by day activity of business(attendence sheet) clerk etc.

what is inventory management ?

what is inventory management ?

Inventory Management refers to the Maintenance of the goods from the point procurement of Raw Material to Final production and reaching the same to the end user. This is done by the management by adopting effective management techniques such as LICI, FIFI, HIFI, EOQ. Advantages of Inv mgt: 1. Storage space can be minimized. 2. Transportation cost can be minimized. 3. Wastage can be minimized. 4. Cost of holding and maintenance can be avoided. 5. It facilitates to use Working capital for other heads.

what is dormant account?

in business transactions which is a recent transaction .it is call dormat account

what is meant by balancing?

Balancing means equalising debit and credit side totals in a T-account. If there is a deficit on either side that is, debit or credit a suspense account is opened with the balancing figure.

2. Balancing in simple terms mean balancing your Debit and Credit side of any account be it Trading
ac, Profit&Loss ac etc.

What are the four classification of Bad & Doubtful Debts as per the context of the Bank?
Assets in Banks are Loans and Advances given to borrowers. These Assets are divided into 4 categories. they are 1. Standard Assets:These accounts are good and the borrower is repaying the loan as per stipulation and also the security extended in good. 2. Sub_Standard Asset:These accounts are good as per the security extended is good but the loans repayment is not upto the mark. 3. Doubtful Asset:These accounts have both the security as well the repayment stipulation in irregular method. 4. Bad Asset:These accounts are where the repayment is not forthcoming and the security extended is also become bad.

what is the difference between inactive accounts and dormant account?

Dormant accounts are those accounts in which there are transactions in the recent history(the stipulation may vary according to the company's rules). InActive accounts are those accounts in which transactions are being made for long time

what is shadow balance ?

Shadow Balance in bank accounts is the balance upto which the subsequent debits can be posted upto. Shadow Balance = Book Balance - Debit (yet to be authorised for posting). Example: Book balance is 1000. There is a debit of 500. The debit is posted in the system and is sent for authorisation. At this juncture the Account shows a Shadow Balance of 500. I hope I am clear.

1. What are the Steps involved in Project implementation? 2. Before going to strat the Project what are the things we have to consider? 3.Can you give me brief introduction about the project?
Step involved in project implementation : a. Identification of the need. b) Idea generation and screening of ideas. c) Feasibility Study. d) Project Development e) Implementation. f) Controlling Feasibility Study : It consists of studies on various aspects such as Project Cost, Duration, Market study, project design etc.

what is meant by turnover?

The turnover refers to the sales volume for a specific period of time like quarterly, semi annually or annualy. It can be measured with sales volume figure or no.of days taken.

2. Turnover is nothing but the total sales made by the firm or a company.

what is retail banking?

Retail banking refers to the banking done with the retail client (e.g. the normal people) rather than business or organisational customers