In this article, we have tried to present a few practical interview questions and answers for commerce graduates i.e. for the freshers of Bachelor of Commerce students. We are quite sure that these “B com interview questions and answers for freshers” will definitely boost up your confidence while facing the interview.
Let’s get started..!!
1. Differentiate between the Dr & Cr with an example?
Debit and Credit are the 2 most important Accounting tools which will be used to record business transactions in the books of accounts.
These 2 come into effect whenever you write/read/ analyze the accounting transactions.
Debit:
Debit means an Accounting entry that will be passed at the time of recording transactions.
Debit either Increases the value of an Asset (or) Decreases the value of Liability / Equity.
Eg:
1. M/s X Ltd bought a Machinery of Rs.5,00,000/- for business. So, the “Machinery” account is to be debited as the value of asset increases in X ltd.
Credit:
Credit means an entry that will be passed, when either the value of an Asset decreases (or) the value of Liability & Equity increases.
Eg:
1. In the same example, due to the purchase of Machinery of Rs.5,00,000/-, the payment was made by cheque.
Due to Cheque payment, the “Bank” account is to be credited as the value of the asset decreases
2. Capital of Rs.10,00,000 /- brought into business
Due to capital introduction into the business, “Capital” account is to be credited.
Read more: 3 Powerful accounting terms with Examples
2. Why Trial balance be prepared?
Trial balance (TB) is a statement that represents the balances of all Ledgers in one place. Simply, TB is like a Tree and all its branches are like Ledgers.
TB is prepared to ensure that all the debit and credit aspects of the transactions on any particular day are matching with each other.
3 Reasons why Trial balance is prepared is
- To check the Arithmetical accuracy of the books of accounts.
- To check whether the Journal entries are properly posted to Ledger accounts and they are balanced as per the double entry system of recording.
- To figure out any errors in the books of accounts
Finally, the Dr side total must be equal to the Cr side Total.
[Dr side total = Cr side Total]
3. Mention any 3 software an Accountant use for accounting?
The 3 best software which will be used widely are
1. Tally
Tally is the most commonly used accounting software in India. It is especially for Small business enterprises due to its easy installation and understanding even for the non-techies.
2. Quick books
Quick books are one of the most widely used accounting software throughout the World.
It is capable of running even complex and multiple accounting processes.
The reporting style of Quickbooks is detailed and Complex.
3. Xero
Xero is another accounting software that works on Cloud based technology. Xero software allows unlimited users with a clean interface. This software is suitable for Medium & Large firms.
4. Why P&L account will be prepared?
Profit and Loss account (PL) will be prepared to find out the Net profit earned or Loss that occurred for a business enterprise for a specified period. The period may be either for a Quarter (or) Half year (or) for a Full year.
Nowadays, large business organizations are preparing financials even for a Quarter period as well. Whereas small business enterprises prepare their books of accounts on a yearly basis only. The Profit and Loss account can also be called as “Profitability statement”
The Profit and Loss account contains a total of 4 components.
- Trading a/c (or)
- Manufacturing account
- Profit and Loss account
- Profit and Loss appropriation account
The profit and Loss account not only helps to identify the Incomes & Expenses but also helps the business owners to reduce unnecessary expenses and to increase the revenue of the business.
5. Why Balance Sheet (BS) will be prepared?
The Major reason to prepare a Balance Sheet is to know the Financial position of the business enterprise at a specific point of time. i.e. 31st March of every year.
So, one can easily find how much Bank balance the business has and also how much value of debts the company needs to clear off, will be known by preparing the Balance sheet.
Balance Sheet consists of
- Assets
- Liabilities
- Equity
6. What are the Differences b/w Current assets and Fixed Assets ?
Current assets:
Current assets are Assets whose useful life is less than 1 accounting period.
Simply, Current assets are Short term in nature & have the ability to liquidate (Convert into Cash) easily. i.e. High liquidity in nature.
These are the assets used in the day-to-day operations of the business & can be converted into cash within One year. Fixed assets have no ability to liquidate quickly.
Eg: Cash, Bank, Debtors, Stock / Inventory, Short term Investments, etc.,
Fixed assets:
Fixed assets are Assets whose useful life is more than 1 accounting period. These assets are Long-term in nature. Fixed assets are the assets Owned by the business & held for the purpose of generating revenue.
Eg: Plant & Machinery, Buildings, Land etc.,
7. What do you know about GST & What are the Types of GST?
GST means “Goods and Services Tax” which replaced many indirect taxes in India such as the Excise duty, VAT, services tax, etc.
It came into force in India w.e.f 1st July 2017.
GST is to be levied on the supply of Goods and Services in India.
There are 4 types of GST:
1.CGST :
CGST full form is Central Goods and Service Tax. CGST is a tax levied by the Central government on Intra state Sale or supply of taxable goods or services.
2.SGST :
SGST full form is State Goods and Service Tax. SGST is a tax levied by the State government on Intra state Sales or supply of taxable goods or services.
3.IGST :
IGST full form is Integrated Goods and Service Tax. IGST is a tax levied and collected by the Central government itself on the Inter-state Sale or supply of taxable goods or services.
4.UTGST :
UTGST full form is Union Territory Goods and Service Tax.
8. Do you know anything about GST Returns, Explain?
There are 11 types of returns that will be filed by the taxpayers based on their business applicability.
GSTR-1: Return of Outward supplies
GSTR-2: Return of Inward supplies
GSTR-3: Monthly GST return
GSTR-4: Quarterly Return for Composition Suppliers
GSTR-5: Monthly Return for Non-Resident Taxable Persons (NRI)
GSTR-6: Monthly Return for Input Service Distributors (ISD)
GSTR-7: Monthly Return for Tax Deductors
GSTR-8: Monthly Return for E-Commerce Operator
GSTR-9: Annual GST Return
GSTR-10: Final GST Return
GSTR-11 GST Return for UIN Holders
Read More: To whom GST registration is mandatory
9. When will the TDS Payment be made?
The due date to deposit the TDS collected amount to the government is the 7th of the Succeeding month.
| Quarter | Month of deduction | The due dates for payment of tax deducted |
| Q1 | April | 7th May |
| May | 7th Jun | |
| June | 7th Jul | |
| Q2 | Jul | 7th Aug |
| Aug | 7th Sep | |
| Sep | 7th Oct | |
| Q3 | Oct | 7th Nov |
| Nov | 7th Dec | |
| Dec | 7th Jan | |
| Q4 | Jan | 7th Feb |
| Feb | 7th Mar | |
| Mar | 7th Apr – For Govt office deductors 30th Apr – For other Deductors |
10. When will the TDS Returns be filed ?
The due dates to file the TDS return are as follows.
| Quarter | Month of deduction | The due date for filing TDS Return for all the deductors |
| Q1 | April | |
| May | ||
| June | 31st July | |
| Q2 | Jul | |
| Aug | ||
| Sep | 31st Oct | |
| Q3 | Oct | |
| Nov | ||
| Dec | 31st Jan | |
| Q4 | Jan | |
| Feb | ||
| Mar | 31st May |
11. PF payment due date ?
The due date to pay the Provident fund (PF) of a month falls due on the 15th of the succeeding month. The employer shall deposit 12% of the salary as a PF contribution.
The rate of PF contribution for most organizations is 12%.
12. PF return Due date?
The due date to file the Provident fund (PF) return of a month falls due on the 25th of the succeeding month.
great explaination