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Top 100+ Ledger Interview Questions And Answers - May 31, 2020

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Top 100+ Ledger Interview Questions And Answers

Question 1. Do You Know What Is Meant By Business?

Answer :

Business is an interest achieved with the only intention of earning earnings. The hobby may also vary in keeping with the scope and quantity.

Question 2. Do You Know What Is About Future Period And Adjustment Period?

Answer :

Future length approach in oracle no longer yet opened, u cannot put up any entry in this period, U may have two future periods or one displayed in calander alternatives, adjustment length way, generally comany may additionally have 365 days, or thirteen months as per co's requiremens, if u have 13 month, jan to dec its one year, addtional one month i.E dec say example twenty fifth to thirty first Dec. So right here we have thirteen months, extra 5 days referred to as adjustment period, this is use complete to go into additonal entries Audit time,in case your dec period is closed, u may nonetheless have 5 days period to entery adjustment entries given via auditiors.

Financial Accounting Interview Questions
Question three. Explain Why Do Companies Need Adjusting Journal Entries?

Answer :

Current account balances might not represent correct balances due to following motives:

a. Company made errors in getting ready journal entries in the past.

B. Accounting facts aren't up to date to mirror new transactions or quantity adjustments in previous transactions. 

Adjusting journal entries are normally prepared at the stop of an accounting period to update account balances to mirror correct balances as of the balance sheet date (the date on the stop of an accounting duration).

The timing differences in spotting sales and fees between accrual foundation and cash basis accounting are frequently corrected by adjusting magazine entries.

Question 4. Explain Adjustments For Saving A/c Of Branches And Head Office?

Answer :

12 months ultimate of banking software program which General ledger balance carried ahead and that is closed. And tell me adjustment approximately the saving a/c of branches and Head Office for yr finishing operation.

Financial Management Tutorial
Question five. Tell Me How The Sub Ledgers(ap,ar) Integrate With Gl?

Answer :

we are able to combine the general ledger with subledger through reconsilation account.

Book Keeping Interview Questions
Question 6. Explain Scenario Of Multi-org. Setup?

Answer :

Meaning of Multi Org:Its a serverside enhancement which helps a couple of firms with unmarried installation of oracle application product and its keep and shops statistics comfy and secure manner and seperately.

MULTI-ORG STRUCTURE
BUSINESS GROUP (HEAD COMPANY)
LEGAL ENTITY(SET OF BOOKS)
OPERATING UNIT(AP,PO,AR,FA)
INVENTORY ORG
Question 7. Explain Flow In General Ledger?

Answer :

Define price sets : setup--> financials--> flexfield--> key--> validation--> units.
Define accounting flexfield(key flexfield) : setup--> financials--> flexfield--> key--> segment
A. Define segments
B .Assign cost sets to segments
c.Assign the flexfied qualifiers
d. Pick out allow dynamic inserts or pass validate section.
Outline values for cost units : setup--> financials--> flexfield--> key--> validation--> values
define set of books : setup--> financials--> books
defining obligation in machine administrator module : security--> responsibility--> define
assign your obligation to the person in sysadmin module: protection--> consumer--> outline
assign your set of books to the obligation in sysadmin module through the profile alternative GL: SET OF BOOKS NAME' : profile--> system
go to your responsbility and open durations : setup--> open/close
begin coming into transactions the use of magazine form : journals--> input.
Bank Management Tutorial Financial Management Interview Questions
Question 8. Can You Please Explain The Difference Between Nominal, Real And Personal Accounts?

Answer :

Accounts of assets is known as Real Accounts.
Accounts of men and women or establishments is referred to as Personal Account.
Accounts of charges/losses, earning/gains is called Nominal Account.
Question nine. Explain What Is Planning Budget In General Ledger?

Answer :

making plans is usually a part of controlling. But, we are able to plan for the general ledger bills in finance module of sap. This could be executed to put together the variance evaluation inside economic accounting.

Bank Reconciliation Interview Questions
Question 10. Tell Me How To Record Retained Earnings When You Sold Company (property Only), For Closing Of Books That Sold?

Answer :

When employer dispose there belongings the subsequent transaction takes location

Assets = Liabilities + Shareholders Equity

Suppose belongings beginning balanceis $4900and collected depreciation is $1900

When you need promote, both of those need to beeliminated from account e book so asstes $4900 and accumulated depreciation debited by using $1900,so both assetswill be clean.

Let us come for retained income,

This relies upon on income or loss.

When it's miles disposedit depends uponassets sold more than or less than ebook price.

If greater than e book fee is retained profits is credited, if much less than ebook price is retained then earningsis debited.

Question 11. Do You Know What Is An Accrual?

Answer :

Accrual foundation of accounting method that the prices or sales of activities are identified in the duration in which they arise, though the coins flows may additionally take area in any other accounting length.

Like for a duration of July 05 - October 05, if the enterprise was due to receive 1000K from an person X but has no longer recieved but for some purpose, will recieve in November 05. It would be nevertheless be accounted for in the period July 05 - October 05 and now not the period starting from November 05.

Financial Statement Interview Questions
Question 12. Tell Me What Is The Significance Of Responsibility In Oracle Applications?

Answer :

customers cannot get entry to the concurrent applications ( just like Forms) until except the program is connected to a responsibility via a Request Group. Thus the obligations provide the whole safety by way of proscribing get admission to to bureaucracy, reports, tables( through records-corporations) and additionally to precise data ( through profile alternatives like Set of Books Id, MO Org Id).

Financial Accounting Interview Questions
Question 13. Can You Please Explain The Difference Between Letter Of Credit And Letter Of Guarantee?

Answer :

Both Letter of Credit and Letter of Guarantee are commitment to price by means of the company of the tool (typically a Bank). In letter of credit score, the provider has to satisfy his commitment on satisfying the terms and situations of the letter of credit score by means of the beneficiary. Whereas, then again, in letter of guarantee the issuer has to make payment, while the beneficiary is not able to satisfy the phrases & conditions of the letter of assure.

Question 14. Tell Me Should The Cash Discounts Gl Hit The Balance Sheet As Per Us Accounting Concept? If Yes, Then Why And If No, Then Why?

Answer :

I believe that cash discounts are taken into P&L and no longer to the B/S.

The magazine would be :

Dr. Bank A/c 90
Dr. Cash Discount given A/c 10
Cr. S. Drs one hundred
So it's far taken into P&L and adjusted within the Net earnings itself..
Hence, you upload the Net earnings together with your capital in B/S.
So, net impact is given there.
Question 15. Tell Me How To Label A Reconciliation Spreadsheet For A Customer That Is Billed Monthly In Advance?

Answer :

"Prepaid Customer' Reconcillation Details. Or Advance billing Customer List.

Oracle fashionable ledger (GL) Interview Questions
Question 16. Tell Me What Experience Do You Have With General Ledger?

Answer :

General ledger carries all of the ledger bills such as companies,customers, sales, asset & liability account type that are ultiamtely part of Chart of Accounts applicable for a specific employer code.

Question 17. Tell Me What Are The Gaps In Gl, Ap?

Answer :

each project has five stages.

In the primary section u outline the enterprise procedure. On this the purchaser entire enterprise structure represents.
Inside the second section u outline the blue print in step with the requirement of patron as specified in commercial enterprise process report(1 phase).
Inside the third segment u map the blueprint into SAP at the same time as defining and integration a few troubles will seem.Ex posting periods,
the troubles acting in the attention section basing on blueprint are referred to as GAP. Function experts are collectively resolve these GAPS.
Stockholders Equity Interview Questions
Question 18. Tell Me Which Items Belong In Balance Sheet Statement And Do Not Appear In Income Statement?

Answer :

Captial A/c , Drawings a/c , Fixed property shopping and so forth. According to the double entry machine each transaction have two aspect debit and credit. There are some transaction satisfied with balance sheet gadgets. For ex, enhance given to manager for travelling. Mangaer is to be treated like borrowers. Different side cash goes out of doors will coins balance each items appear in assets facet of the stability sheet.

Book Keeping Interview Questions
Question 19. Tell Me What Is Fiscal Year? Compare It With Normal Year?

Answer :

Fiscal Year approach the financial 12 months .In india it's miles April to march. In singapore it's far July to june. In hongkong it is Jan to dec.

Normal year is nothing but english calendar yr jan to dec. If the company operating more than nations and it faces any such state of affairs modifications in finacial yr , they'll go for assessment analyis. In such that case the agency can also indicates all of the u . S . To comply with the uniform 12 months for make a conclusion.

Question 20. Explain What Is An Account Assignment Model & Where Is It Used? What Are The Transaction Codes For Account Assignment Model?

Answer :

A template used for document creation wherein default values are provided for the posting of a business transaction.

An account mission version may also include any quantity of G/L line gadgets, and may be changed or more suitable as needed. Unlike sample files, account challenge fashions may also include incomplete G/L line gadgets.

Transaction Code used - Fast Entry (F-02).

Cashier Interview Questions
Question 21. Tell Me What Is The Procedure For Creation Of Retained Earnings Account In Different Coa?

Answer :

t/code ob53, give COA and then type X or Y in pl account head after which deliver the account number within the acoount head.... This u can create prior to the advent of the account organization reserve and surplus in addition to after developing the account organization...

Question 22. What Is Your Experiences With Cash Flow Statement? How Is A Cash Flow Statement Generated?

Answer :

Cash Flow declaration is a generate earnings, now not the invoices. There are two sorts of cashflow

1. Inflow:

eg. If you received coins from your credit score customers, you will decrease your borrowers and it is become inflow in your cashflow announcement. Therefore, it is imply that each time u obtained in coins that is referred to as influx.

2. Outflow:

eg. In case you made a price on your providers, you may decrease your creditors and it's outflow, consequently lower in creditor is outflow.

Question 23. Tell Me What Is The Difference Between Direct Expenses And Indirect Expenses What Is The Difference In Direct Income And Indirect Income?

Answer :

Direct Expenses are the ones expenses which might be incurred when it comes to manufacture of products without delay Eg: Machinery repairs, Labour, Factory and many others.

Indirect Expenses are the ones fees that are incurred after manufacturing of products. Eg: Administrative Exp, Advertisement, Selling & Distribution and so on.

General Ledger Interview Questions
Question 24. Explain What Is The Effect Of Not Reconciling The Expense Accounts?

Answer :

If the agency is being reimbursed by using some other enterprise for the rate incurred in advance then it will be a credit score to the price account. If the cost become over gathered and the actual is decrease than the accrual then it will be reversing access decreasing the fee.

Financial Management Interview Questions
Question 25. What Is Salary Computation? How To File The Salary Returns?

Answer :

Generally, the earnings is computed as

Basic : 30 - 35% of CTC
HRA : 50% of Basic
DA : Regulated by using Govt. Notifications (nominal quantities)
CCA : Is commonly a filler on negotiated salary (placed the balance amount in
this). Otherwise, 30% of CTC
Gratuity : Is statutory (bear in mind 4.81%)
Superannuation : 15% - 27% of fundamental (27% if there's no PF)
Leave Encashment : Taxable under provision of IT Act.
Tax deduction is based on numerous things like HRA claim (least of the 3 situations underneath the IT Act - can also be non-taxable if claimed properly), investments performed through worker, enchantment of 80C/cca, (primary, cca completely taxed based on IT slabs), and many others. Please talk to the IT Act (direct taxes) or your Finance deptt for extra information..)

The above comp. Shape may be tweaked or extra additives added based totally on the Co's requirements. That wishes a discussion.....It may range co. To co. Or enterprise to industry.

Question 26. What Is Consolidation?

Answer :

consolidation is a meeting the facts in sap for precise cause and beneficial statistics for management.

Petty Cash Interview Questions
Question 27. Explain What Is Special Gl In Sap?

Answer :

Special GL is an GL apart from the normal GL for AR and AP. Like Down payments (made or obtained), Bills of change etc.

Yes, there would be  money owed for a particular client one everyday and one unique.

Bank Reconciliation Interview Questions
Question 28. Tell Me What Are The Procedures Of Elimination During Consolidation Of Financial Statements?

Answer :

After moving the subsidiary information to the determine set of books, combine the subsidiary and discern statistics.

Once figure and subsidiary information has been blended, input doing away with journal entries.

Choose the State Controller's Eliminate button to create journal entries within the parent set of books for consolidation eliminations.
Create removal sets with which you can define disposing of entries that repeat each accounting period.
Question 29. Explain Capitalization Of Internal, External Asset?

Answer :

Asset turns into capitalised whilst it is offered for income reason, as an funding, and most essential : when it is used.

Asset to be had within an business enterprise - Internal Asset.

Asset where they're gift bodily out of business enterprise - External Asset.

Cash Flow Management Interview Questions
Question 30. Suppose 2 Companies Are There, They Have Maintained Separate Chart Of Accounts, How Can You Consolidate Their Activities?

Answer :

In this example you have to have a additional area inside the COA called "Alternate Account". Your month cease consolidated reviews need to be based at the alternate account.

Example: Retail income corporation has 52000.000 because the Purchase account Property Management Co. Has 54240.912 as the Purchase account Both these account can have a not unusual "change" account example CO52000.000

Please word - If you're using exchange accounting; make certain "Account Creation" is in the hands of "Central" finance with a view to allocate a "alternate wide variety".

Question 31. Tell Me What Is How To Exceed The Funding Budget Amount Limit In The Actual Journal?

Answer :

We can exceed the funding finances through the use of alternative depreciation strategies and via borrowing quick term loans.

Question 32. What Is Gl Reconciliation?

Answer :

GL Reconciliations are list of gadgets that make up a GL account. For instance, listing of contemporary unreversed accruals in a Sundry Creditors Balance sheet account. The objects in Reconciliation must be diagnosed and often monitored on a month-to-month basis to make certain objects opposite out in late durations or are charged out to P&L.

Question 33. Explain What Are Ptd, Qtd And Ytd?

Answer :

length thus far for ex - may be identical as YTD if duration = 1 yr
zone up to now for ex - 1st qtr of calender year - Jan,Feb,Mar, All financial items (sales+expenses) Jan-Feb is QTD Feb
12 months thus far for ex - if economic year Jan-Dec - all monetary objects (sales + charges) from Jan-Aug is YTD Aug.
Financial Statement Interview Questions
Question 34. Can You Please Explain The Difference Between Single Entry System & Double Entry System?

Answer :

Single entry machine use best Debit or Credit most effective. If the payment made there may be handiest one one debit simplest but Double access machine way for every Debit there may be contrary Credit additionally there.

Example :

cash charge made a few one
debit for birthday celebration at the identical time credit score to Cash.
Question 35. Explain What Are The Factors To Determine The Net Profit?

Answer :

the elements are:

income or Incomes
oblique earning, misc, profits
direct fee and indirect price
depreciation
tax.
Question 36. What Is Suspense Account?

Answer :

Suspense account is a temporary arrangement. This association is made to make trial stability agree.

Oracle trendy ledger (GL) Interview Questions
Question 37. What Is Chart Of Account?

Answer :

Chart of Accounts is not anything however listing of G/L Accounts utilized by the one r greater agency codes....The chart of accounts includes the account no & account call.The chart of accounts is the operating chart of bills used for the daily postings in employer code.

Question 38. Can You Please Explain The Difference Between General Ledger And Final Accounts?

Answer :

General ledger consists of all ledgers after adjusting the stability in which as final debts is arranging ledger stability to get income and loss in addition to to recognise the finacial function.

Question 39. What Is Journal Entry?

Answer :

Non Cash Transactions Should be Recorded In Journal Entry.

For Ex:

Salaries A/c Dr xxxxx
To Salaries Payble A/c xxxx.
Question forty. Tell Me What Is Meant By Group Chart Of Accounts In Sap Fico?

Answer :

in sap fico we have 3 varieties of chartof money owed:

group chart of debts
united states of america precise chart of debts
operative chart of bills
group chart of debts

the reason of GCOA is to consolidate all the employer codes stability sheet into one. The main reason of this one is to external reporting.

Stockholders Equity Interview Questions
Question 41. Are Reconciliations Part Of Financial Statements?

Answer :

yes reconciliation is necessary in monetary assertion.

Question forty two. Tell Me How Would You Account For The Leasing Of A Vehicle?

Answer :

Vehicle a/c dr-FA
To rent settlement a/c-Liabilitie
lease a/cdr-indirect exp
To cash/Bank-cutting-edge belongings
fee off the fee of rent from th p&l a/c
Cashier Interview Questions
Question forty three. Tell Me What Is The Process Flow For General Ledger?

Answer :

Gl set ups> open the intervals of gl > create/reverse magazine entries> post and review> conversion , revaluation, translation, consolidation can be run > evaluate/correct balances > run accounting reviews> close gl periods.

Question forty four. Explain What Is The Difference Between Ledger And General Ledger?

Answer :

The General Ledger Contains all transaction information inclusive of Product Details, Rate, Qty, Cheq No Bank Name, Debit Amount, Credit and Balances where as Ledger Contains Simple transactions that is included debit, credit and Balances.

Question forty five. Explain Impact In Books At The Time Of Merger?

Answer :

Problem announcement- There are 2 Regions in a rustic REGION X & REGION- Y REGION X is closed and GL Trial Balance (TB) is transferred to REGION Y books ( X-TB is uploaded in Y books like a journal we do commonly)- No Sub Ledger (SL) level transfer changed into achieved There turned into 1 invoices lying AP SL in X books ( xx722002 )- for a thousand GBP When TB was uploaded in Y books xx722002 became routinely credited by 1000 GBP in Y books Questiion 1- on this state of affairs are we going to have a mismatch in AP-SL of Y books if yes then the way to correct the same. 

Question forty six. Tell Me Why Depreciation Is Not Charged On Land?

Answer :

Land is such an asset whose fee goes on increasing, not like other assets whose value receives lessen over a period of time. Depreciation is charged on property so that when in destiny , asset may be update we will have money to buy new asset. But in case of land this not occurs this is why depreciation isn't hcarged on land.

Question 47. Tell Me Reconciled Checks Display In Bank Reconciliation. How Do I Get Rid Of Them?

Answer :

To put off these assessments from Bank Reconciliation, you should reconcile them outside of Bank Reconciliation.

Question 48. What Is Balancing Of Ledger Account?

Answer :

To recognize the internet effect of all of the commercial enterprise transactions recorded in the ledger account, the debts want to be balanced.

Thus, Balancing of Ledger Account means the balances of Debit and Credit side have to be equal and this involves following steps: 

First general of both the sides are taken.
Secondly difference among the totals of each the sides is calculated.
If the debit facet is in extra to the credit side then region the distinction at the credit facet with the aid of writing By Balance c/fd.
If the entire of credit aspect is in extra to the debit facet, vicinity the distinction on the debit facet by writing To Balance c/fd.
After putting the difference on the right aspect, make sure the totals of each the sides are identical.
Question forty nine. What Is Ledger Posting?

Answer :

All the business transactions are first recorded in Journal or Subsidiary books in a chronological order after they in reality take area and from there the transactions of similar nature are transferred to Ledger and this method of moving is known as as Ledger Posting.

Question 50. What Is A Ledger?

Answer :

Ledger is the e book in which the transactions of similar nature bearing on a person, asset, legal responsibility, profits or expenditure are drawn from the journal or subsidiary books where the transactions are recorded in a chronological order and posted account smart inside the Ledger account. Ledger maintains all styles of accounts i.E. Personal, Real and Nominal Account.

Question 51. What Are The Purposes Of Maintaining Control Ledgers?

Answer :

Purposes of retaining control ledgers are:

Sundry Debtors
Sundry Creditors
Advances to Staff
Question fifty two. What Is Control Ledgers?

Answer :

In a business, from time to time it is not feasible to carry accounts of all the suppliers and clients in the fundamental ledger. In such instances other than General or principal ledger, the manage ledgers are maintained. Control ledgers records the individual accounts. In the cease of the period, balance shown inside the most important ledger has to tally with the balance within the man or woman ledger money owed maintained in the manage ledger.




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