Saturday, 23 August 2014

BASIC ACCOUNTING INTERVIEW SHORT QUESTIONS (11-20)



11. Posting: It means transferring the debit and credit items from the journal to their respective accounts in the ledger.

12. Trial Balance: Trial balance is a statement containing the various ledger balances on a particular date.

13. Credit Note: The customer when returns the goods get credit for the value of the goods returned. A credit note is sent to him intimating that his a/c has been credited with the value of the goods returned.

14. Debit Note: When the goods are returned to the supplier, a debit note is sent to him indicating that his a/c has been debited with the amount mentioned in the debit note.

15. Contra Entry: which accounting entry is recorded on both the debit and credit side of the cash book is known as the contra entry.

16. Petty Cash Book: Petty cash is maintained by business to record petty cash expenses of the business, such as postage, cartage, stationery, etc.

17. Promisory Note: An instrument in writing containing an unconditional undertaking signed by the maker, to pay certain sum of money only to or to the order of a certain person or to the barer of the instrument.

18. Cheque : A bill of exchange drawn on a specified banker and payable on demand.

19. Stale Cheque: A stale cheque means not valid of cheque that means more than Three months the cheque is not valid.

20. Bank Reconciliation Statement:  It is a statement reconciling the balance as shown by the bank pass book and the balance as shown by the Cash Book.   Obj:  to know the difference & pass necessary correcting, adjusting entries in the books.



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