Basic Accounting Interview Questions and Answers for Freshers

“Tell me about yourself”: how to answer as an accounting fresher

This is usually the first question, and it sets the tone for the rest of the interview. A good answer lasts 60 to 90 seconds and follows a simple order: who you are now, what you have done that is relevant, and why you want this particular job.

Sample answer 1: B.Com fresher with practical training

“Good morning. I’m [Your name], and I completed my B.Com from [College name] in [year] with [xx]%. Financial accounting was my strongest subject, because every figure traces back to a real transaction. After graduation I did a practical accounting course where I maintained a full year’s books for a training company in TallyPrime. That covered GST purchases and sales, bank reconciliation, TDS entries and year-end adjustments, and I prepared GSTR-1 and GSTR-3B data from those books. I’m comfortable in Excel with XLOOKUP, SUMIFS and pivot tables. Your firm handles bookkeeping and GST for small businesses, which is exactly the work I trained for. I’d like to grow into handling a client’s books end to end.”

Sample answer 2: fresher with an internship

“I’m [Your name]. I finished my B.Com from [College name] this year. During my final year, I did a [x]-month internship at [a CA firm / a trading company] in [city]. I entered purchase and sales bills in Tally, matched supplier invoices with GSTR-2B every month, and helped prepare bank reconciliation statements. That taught me how much a small mismatch matters at return time. I’m now looking for a full-time accounts assistant role where I can take on more of the monthly closing work, and this position fits that well.”

Mistakes that weaken the answer

• Reciting your resume line by line. The interviewer already has it; pick the two or three points that match the job.
• Talking about family background, hobbies or hometown at length. Mention them only if asked.
• Vague claims such as “I’m hardworking and a quick learner” with no example behind them.
• Going past two minutes. Practise with a timer until it fits.

What basic accounting questions are asked in interviews for freshers?

The basic accounting questions asked in interviews for freshers test whether your fundamentals are solid. Expect the golden rules of accounting, the accounting equation and double entry, and the difference between a journal and a ledger. Interviewers also ask about capital and revenue expenditure, the accrual and cash basis, provisions and reserves, depreciation methods, bank reconciliation and working capital. Most then give you a transaction and ask for the journal entry, such as a prepaid expense, an outstanding expense, bad debts or goods taken for personal use.

Good answers are short: define the term in one sentence, give a small example, and say where it appears in the books or the financial statements. The 14 questions below cover these basics with model answers, and the journal entry questions follow in the next section. For a last-minute check, the one-line revision table near the end of this page repeats the key definitions.

1. What is the difference between bookkeeping and accounting?

Bookkeeping is recording transactions: journal entries, ledgers and day books. Accounting goes further. It classifies, summarises and interprets those records to prepare financial statements and support decisions.

2. What are the golden rules of accounting?

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. Our guide to the golden rules of accounting has 12 worked examples.

3. What is the accounting equation?

Assets = Liabilities + Capital. Every transaction keeps the equation in balance. For example, buying stock on credit increases assets (stock) and liabilities (creditors) by the same amount.

4. What is double-entry bookkeeping?

Every transaction affects at least two accounts, with equal debits and credits. It rests on the dual aspect concept, and it is why a trial balance can be prepared at all.

5. What is the difference between a journal and a ledger?

The journal is the book of original entry, where transactions are recorded date-wise. The ledger is the book of final entry, where the same transactions are posted account-wise so you can see each account’s balance.

6. If the trial balance agrees, does that mean there are no errors?

No. A trial balance only proves that debits equal credits. It will not reveal errors of omission (a transaction not recorded at all) or errors of principle (a fixed asset debited to Purchases). Nor will it catch compensating errors, or an entry posted to the wrong account on the correct side.

7. What is the difference between capital expenditure and revenue expenditure?

Capital expenditure buys or improves an asset that benefits more than one year, such as a computer or machinery. It goes to the balance sheet and is depreciated. Revenue expenditure is for day-to-day running, such as rent or salary, and goes to the Profit and Loss Account in the same year.

8. What is the difference between the accrual basis and the cash basis?

Under the accrual basis, income and expenses are recorded when they are earned or incurred, whatever the date of payment. Under the cash basis, they are recorded only when cash moves. AS 1 treats accrual as a fundamental accounting assumption, so most businesses follow it.

9. What is the difference between a provision and a reserve?

A provision is a charge against profit for a known liability or loss whose exact amount is uncertain, such as a provision for doubtful debts. A reserve is an appropriation of profit kept aside to strengthen the business, such as a general reserve. Provisions reduce profit; reserves are set aside out of profit.

10. What is depreciation, and what are the main methods?

Depreciation is the systematic allocation of an asset’s cost, less residual value, over its useful life, as defined in AS 10. The straight-line method (SLM) charges the same amount each year. The written-down value method (WDV) applies a fixed rate to the reducing book value, so the charge falls each year.

11. What is a bank reconciliation statement?

It explains the difference between the balance in your cash book (bank column) and the balance in the bank statement on the same date. Common reasons are cheques issued but not yet presented, cheques deposited but not yet cleared, bank charges and interest not yet recorded in your books, and direct credits from customers.

12. What is working capital?

Working capital is current assets minus current liabilities. It shows whether the business can meet its short-term obligations. Debtors, stock and cash increase it; creditors and short-term loans reduce it.

13. What is the difference between a debtor and a creditor?

A debtor owes money to the business, usually a customer who bought on credit, and is an asset (see debtor and creditor meaning, with examples). A creditor is owed money by the business, usually a supplier, and is a liability. Both usually appear under current items in the balance sheet.

14. What is the difference between a balance sheet and a Profit and Loss Account?

The Profit and Loss Account shows income and expenses for a period, such as a financial year, and ends in profit or loss. The balance sheet shows assets, liabilities and capital on one date, such as 31 March.

Journal entry and adjustment questions

Interviewers often hand you a transaction and ask for the entry on the spot. State the accounts, the side and the reason. Our page of journal entries questions with answers has 30 solved examples to practise with.

15. What is the entry for a prepaid expense?

At the year end, debit Prepaid Expense and credit the Expense account for the unexpired part. If ₹24,000 of annual insurance was paid on 1 October, six months (₹12,000) are prepaid on 31 March: Prepaid Insurance A/c Dr ₹12,000, To Insurance A/c ₹12,000. Prepaid insurance is shown as a current asset.

16. What is the entry for an outstanding expense?

Debit the Expense account and credit Outstanding Expense. For an unpaid March salary of ₹45,000: Salaries A/c Dr, To Outstanding Salaries A/c. The outstanding amount is a current liability.

17. What is the difference between trade discount and cash discount?

Trade discount is a reduction in list price at the time of sale and is not recorded in the books. Cash discount is allowed for prompt payment and is recorded: Discount Allowed (a loss) for the seller, Discount Received (a gain) for the buyer.

18. What is the entry for bad debts?

Debit Bad Debts and credit the customer’s account for the amount that cannot be recovered. If part is received, debit Bank for that part in the same entry. A bad debt recovered later is credited to Bad Debts Recovered, not to the customer.

19. The owner takes goods from the shop for personal use. What is the entry?

Debit Drawings and credit Purchases at cost. If input GST was claimed on those goods, it must be reversed, because Section 17(5) of the CGST Act blocks credit on goods used for personal consumption. So Drawings is debited with cost plus the GST, and Input CGST and SGST are credited.

GST interview questions

Almost every accounts job in India involves GST, so expect at least three or four questions. Quote section numbers only if you are sure of them.

20. What is GST, and what are its components?

GST is a destination-based indirect tax on the supply of goods and services, in force since 1 July 2017. Within a state, CGST and SGST are charged (CGST and UTGST in a union territory without a legislature). On inter-state supplies and imports, IGST is charged.

21. What are the current GST rates?

Following the 56th GST Council meeting, the main slabs from 22 September 2025 are 5% and 18%, with a 40% rate for a short list of luxury and demerit goods. Some items are exempt or carry special rates. Always check the specific item on the CBIC rate schedule rather than relying on memory.

22. What is input tax credit, and when can you claim it?

Input tax credit (ITC) is the GST paid on purchases, which you can set off against GST payable on sales. Section 16 of the CGST Act sets the conditions. You need a tax invoice, and the goods or services must be received. The supplier must have reported the invoice so it appears in your GSTR-2B, the tax must be paid to the government, and you must file your return.

23. In what order is ITC used to pay GST?

IGST credit is used first, against IGST and then against CGST and SGST. CGST credit can pay CGST and then IGST, but never SGST. SGST credit can pay SGST and then IGST, but never CGST. Any balance is paid in cash through the electronic cash ledger.

24. What are GSTR-1, GSTR-3B and GSTR-2B?

GSTR-1 reports outward supplies (sales) invoice-wise. GSTR-3B is the summary return in which you pay tax and claim ITC. GSTR-2B is an auto-drafted statement of the ITC available to you, built from your suppliers’ GSTR-1. For monthly filers, GSTR-1 is due by the 11th and GSTR-3B by the 20th of the following month, unless the government extends the date.

25. What is the reverse charge mechanism?

Under reverse charge, the recipient pays GST to the government instead of the supplier. It applies to notified supplies, such as legal services provided by an advocate to a business entity, and to certain purchases from unregistered suppliers. The recipient can usually claim that tax back as ITC.

26. What is the composition scheme?

It is an optional scheme for small taxpayers below a notified turnover limit. They pay tax at a low fixed rate on turnover and file simpler returns, but they cannot collect GST on their invoices or claim ITC.

27. When is an e-way bill required?

An e-way bill is required for moving goods whose consignment value exceeds ₹50,000, under Rule 138 of the CGST Rules, with some exceptions. It is generated on the e-way bill portal before the goods move.

TDS interview questions

TDS questions test whether you understand the payer’s responsibilities. From 1 April 2026, section and form numbers changed under the Income-tax Act, 2025 and the Income-tax Rules, 2026, so mention both old and new references if asked.

28. What is TDS?

Tax Deducted at Source is income tax that the payer deducts while paying specified amounts, such as salary, contractor payments, rent or professional fees, and deposits with the government. The payee gets credit for it against their own tax. Salary TDS now falls under Section 392 and most other TDS under Section 393 of the Income-tax Act, 2025 (earlier Sections 192 and 194-series).

29. What is the difference between TDS and TCS?

TDS is deducted by the payer when making a payment. TCS (Tax Collected at Source) is collected by the seller from the buyer at the time of sale on specified goods, and is now covered by Section 394 of the new Act.

30. How is TDS shown in the balance sheet?

TDS you have deducted from others but not yet deposited is a current liability (TDS Payable). TDS that customers have deducted from your income is an asset (TDS Receivable), which you claim when you file the business’s income tax return.

31. What is TAN, and what happens if the payee has no PAN?

TAN is the Tax Deduction and Collection Account Number that every deductor must obtain and quote on TDS challans, returns and certificates. If the payee does not provide a valid PAN, TDS is generally deducted at a higher rate.

32. Which forms are used for TDS returns and certificates?

Under the Income-tax Rules, 2026, the salary TDS certificate is Form 130 (earlier Form 16) and the non-salary certificate is Form 131 (earlier Form 16A). Quarterly TDS statements are Form 138 for salary (earlier 24Q) and Form 140 for other payments (earlier 26Q). The old forms still apply to periods up to 31 March 2026.

33. When must TDS be deposited?

TDS is deposited monthly, generally by the 7th of the following month, with a later date for deductions made in March. Interest applies if it is deducted late or deposited late, so accountants track it as a fixed monthly deadline.

Tally interview questions

Most small and mid-sized employers in Delhi NCR use Tally, so expect a practical question or even a short test on a system. Be ready to name shortcuts and explain where a ledger belongs. Our guide to the benefits of learning Tally explains why employers weigh it so heavily.

34. What is TallyPrime used for?

TallyPrime is accounting and business management software used to record vouchers, maintain inventory, handle GST and TDS, and generate reports such as the trial balance, Profit and Loss Account, balance sheet and GST return data.

35. What are the main voucher types and their shortcuts?

Contra F4, Payment F5, Receipt F6, Journal F7, Sales F8, Purchase F9. Debit Note is Alt+F5 and Credit Note is Alt+F6. Ctrl+A saves (accepts) a screen, F2 changes the date, F11 opens company features and F12 opens configuration.

36. Under which groups do you create customer and supplier ledgers?

Customers go under Sundry Debtors and suppliers under Sundry Creditors. Bank accounts go under Bank Accounts, and GST ledgers go under Duties & Taxes with the tax type set to CGST, SGST or IGST.

37. How do you record a GST sales invoice in Tally?

Enable GST in company features (F11) and enter the company’s GSTIN. Create the party ledger with its GSTIN and state, a sales ledger, and GST ledgers under Duties & Taxes. Set the GST rate on the stock item or ledger. Then record the invoice in a Sales voucher (F8); Tally calculates CGST and SGST, or IGST, from the party’s state.

38. What are bill-wise details and cost centres?

Bill-wise details track each invoice against its payments, so you can see exactly which bills are outstanding and for how long. Cost centres let you allocate income and expenses to departments, projects or branches for internal reporting.

39. Which reports would you check before month-end closing?

The Day Book, to review all entries; outstanding receivables and payables; the bank reconciliation; the trial balance; and the GST reports, to compare books with GSTR-1 and GSTR-2B before filing.

For more Tally questions with answers, see the Tally Prime interview questions and answers for freshers.

Excel interview questions

Accounts roles use Excel daily for reconciliations and MIS reports. Some employers give a short practical test, so practise these functions on real data.

40. What is the difference between VLOOKUP and XLOOKUP?

VLOOKUP searches only in the first column of a range and returns a value from a column to its right. XLOOKUP can look in any direction, defaults to an exact match, and lets you set a value to show when nothing is found. XLOOKUP is available in Microsoft 365 and Excel 2021 onwards.

41. How would you use SUMIFS in accounts work?

SUMIFS adds values that meet several conditions. For example, it can total sales for one customer in one month from a sales register: the sum range is the invoice amount, and the criteria are the customer name and the date range.

42. What is a pivot table, and why is it useful?

A pivot table summarises a large data set without formulas. From a year’s sales register, you can see total sales by customer, by month or by GST rate in a few clicks, and drill into the detail behind any number.

43. How would you reconcile your purchase register with GSTR-2B in Excel?

Put both lists in one workbook with a common key, such as supplier GSTIN plus invoice number. Use XLOOKUP or COUNTIFS to find invoices that appear in one list but not the other, then compare tax amounts for the matched ones. Conditional formatting makes the mismatches easy to see.

44. What is the difference between relative and absolute cell references?

A relative reference such as A2 changes when the formula is copied. An absolute reference such as $A$2 stays fixed. Use absolute references for a single value that every row uses, such as a GST rate cell.

Behavioural and HR interview questions

These questions test attitude and fit. Keep answers honest and specific, and tie them back to accounting work where you can.

45. Why did you choose accounting?

Give a real reason and an example. For instance: “I enjoyed accounting in college because it is logical and every entry must balance. During my training, finding and fixing a bank reconciliation difference was the part I enjoyed most.”

46. What are your strengths and weaknesses?

Pick a strength that matters in accounts, such as accuracy or following a routine, and back it with an example. For a weakness, choose something real that is not central to the job, and say what you are doing about it. For example: “I’m still building speed in Excel, so I practise pivot tables and lookups every week.”

47. How would you handle a mistake you found in the books close to a deadline?

Say you would inform your senior immediately, explain the error and its effect, suggest the correction, and document it. Employers value candidates who report errors early over those who hide them.

48. Where do you see yourself in five years?

Show a realistic path in accounts, such as moving from data entry to handling GST returns and monthly closing, and then to managing a set of books independently. Mention any qualification you plan to pursue.

49. What are your salary expectations?

Research the pay advertised for similar fresher roles in your city on job portals and the government’s National Career Service portal, then give a range based on that. Our accountant salary in India guide collects the published pay benchmarks. It is reasonable to say you are flexible for the right learning opportunity. Avoid quoting a figure you cannot justify.

50. Do you have any questions for us?

Always ask one or two. Good options: “What would a typical day look like in this role?”, “Which software do you use for accounts and GST?”, and “How is performance reviewed in the first six months?”

Junior accountant and accounts executive interview questions

Heading for a bank or finance company instead? Our guide to interview questions for banking jobs covers KYC, NPA, CRR, SLR and the other terms those panels ask about.

For junior accountant and accounts executive jobs, interviewers go beyond definitions and ask how you would handle the monthly routine. These 10 extra questions cover that, and the last two are also asked of candidates with a year or two of experience.

51. What does a junior accountant do in a typical month?

Records purchase, sales, payment and receipt vouchers, and reconciles bank accounts. Prepares GST data for GSTR-1 and GSTR-3B, and works out and books TDS on vendor payments. Checks ledgers for errors and supports the senior accountant with month-end closing.

52. What is ledger scrutiny, and how do you do it?

Ledger scrutiny is a line-by-line review of ledgers to catch wrong postings, duplicate entries and odd balances, such as a debit balance on a supplier or an expense booked to an asset account. Start with the ledgers that have many entries, such as sales, purchases, expenses and bank.

53. What is vendor reconciliation?

You match a supplier’s ledger in your books with the statement of account the supplier sends. Differences usually come from invoices not yet booked, payments in transit, debit notes, or TDS the supplier has not accounted for. Each difference is listed and cleared.

54. What is the purchase-to-pay cycle?

Purchase order, goods received note, supplier invoice, matching of the three documents (quantity, rate and GST), booking the purchase, deducting TDS where it applies, and payment on the due date.

55. Why are month-end accruals reversed?

An accrual books an expense that belongs to the month but has not been billed yet, such as electricity. It is reversed on the first day of the next month, so that when the actual bill is booked the expense is not counted twice.

56. How is petty cash usually managed?

Most offices use the imprest system: the petty cashier gets a fixed float, records every payment with a voucher, and is reimbursed exactly the amount spent, so the float is restored each period.

57. What is an ageing report?

A report that splits receivables or payables by how long they have been outstanding, for example 0 to 30, 31 to 60, 61 to 90 and over 90 days. It tells you which customers to chase and which dues may need a provision.

58. What is the difference between GSTR-2A and GSTR-2B?

Both show the purchases your suppliers have reported. GSTR-2A is dynamic and keeps changing as suppliers file, while GSTR-2B is a static monthly statement, which is why accountants use GSTR-2B to decide the input tax credit for the month.

59. How would you close the books at month end?

Complete all vouchers, reconcile bank and cash, and book accruals, prepaid items and depreciation. Reconcile the GST and TDS ledgers with the portal data and review debtor and creditor balances. Then check the trial balance and profit and loss account for unusual figures before handing them over.

60. An auditor asks for support for a large expense. What do you do?

Pull the voucher, the invoice, the approval and the payment proof, and check that the GST and TDS treatment is correct. Give the auditor copies with a short note. If something is missing, say so and say when you will have it, rather than guessing.

Accounting interview questions by level: basic, technical and manager

Interview questions and answers for an accounting position change with the level of the role. A fresher is asked basic questions on accounting, an executive is tested on technical questions, and a manager is asked how he or she runs a team and a close. Use the table to find the questions that match the job you are applying for.

These are the accounting important questions that come up again and again. If you want them as a printable copy, use your browser’s Print option and choose Save as PDF.

Accounting manager interview questions

For a manager or senior accountant role, interviewers care less about the entry and more about how you organise people, controls and deadlines. Answer with a process you have actually followed or can describe clearly.

61. How do you organise the month-end close?

Set a close calendar with a cut-off date for every input. Finish the reconciliations first: bank, vendors, customers and GST. Then post accruals, prepaid items and depreciation, review the trial balance, and sign off against a checklist.

62. What internal controls would you set up in a small accounts team?

Keep duties separate: the person who raises bills should not approve payments, and the person who handles cash should not do the bank reconciliation. Add approval limits, restrict software access by role, and review ledgers on a fixed schedule.

63. How do you review your team’s work?

Check a sample of vouchers against their documents each week, look at unusual or round-figure entries, and compare ledgers with the previous month. Give feedback on the specific entry, and ask the preparer to fix and explain it.

64. How do you make sure GST and TDS deadlines are never missed?

Keep a compliance calendar with the due dates for GST returns and TDS deposits, give each task an owner and a date a few days before the deadline, and reconcile before filing, not after. The due dates are in questions 24 and 33 above.

65. How do you explain a budget variance to management?

Compare actual with budget by head, separate the part caused by price, volume or timing, and say which items are one-off and which will repeat. Give one recommended action for each large variance.

66. What would you do if the auditor finds a large mismatch?

Ask for the exact figures, trace the entries back to their documents, and find out whether it is an error, a timing difference or a missing document. Correct it with a proper entry, tell your manager at once, and fix the process that allowed it.

Basic accounting questions: one-line answers for quick revision

Interviewers often fire short “accounts questions” to check your fundamentals before the longer ones. Revise these the night before.

How to prepare in the week before the interview

Preparation beats memorising. Spend the week on practical work you can talk about.

1. Practise your “Tell me about yourself” answer aloud with a timer until it fits in 90 seconds.
2. Solve 20 to 30 journal entries without looking at answers, including GST, TDS and year-end adjustments.
3. Record a few GST sales and purchase vouchers in Tally and check the GST reports.
4. Build a small pivot table and an XLOOKUP reconciliation in Excel.
5. Read the employer’s website so you can say why you want this job. Our guide to fresher accounting jobs in Delhi covers the common roles and where they are.
6. If you are still choosing your next qualification, our guide to courses after B.Com compares the options.
7. Print two copies of your resume. If yours needs work, follow our resume format for accounting freshers.

If your practical skills are thin, a focused short course helps. IPA’s Tally course, GST course and Advanced Excel course cover the software questions above with placement assistance.

How we teach this at IPA

Most of the 6-month diploma at IPA is spent entering data rather than listening to lectures, across Tally Prime and BUSY, GST and TDS returns and payroll. It is meant for people who have met debits, credits and final accounts in class but have not yet practised them on software. The 6-month diploma page has the module list.

Frequently asked questions