SquNik

Class 1st -Accounting Entries

Golden Rules of Accounting
Nominal Personal Real
Dr All Expenses & Losses Dr the Receiver Dr What Comes In

Cr All Income & Gains Cr the Giver Cr What Goes out

For Example:- Salary, Rent, Debtors & Creditors Fixed Assets, Bank, Tax etc
Maintenance, Freight ,
Sales, Purchase, Profit,
Complete P&L are comes Complete B/s are comes
under it under it.

Payable Payment
Yet to Be Paid-Purchase Entry Which has been Paid-Payment Paid Entry

Receivable Received
Yet to Receive-Sales Entry Which has been Received-Payment
Received Entry
Journal Entry –Accounts Payable

1) Rent Need to Pay to Reliance- Payable

Rent Account Dr:- Expense:- Nominal:- Dr all Expenses & Losses

To Reliance:-Creditors:- Personal:- Credit the Giver

2) Now we have paid the Rent to Reliance

Reliance Account Dr--Personal--Dr
To Bank Account--Real:- Goes out is credited
========================================================================
It would be wrong entry.

Rent Account Dr
To Bank

(First Payable is created then we have to make the payment)

Journal Entry –Accounts Payable

3) Electricity Bill Need to pay to DLF- Payable

Electricity Account Dr:- Expense:- Nominal:- Dr all Expenses & Losses

To DLF:-Creditors:- Personal:- Credit the Giver

4) Now we have paid the Electricity Bill to DLF

DLF Account Dr--Personal--Dr
To Bank Account--Real:- Goes out is credited
========================================================================
It would be wrong entry.

Electricity Account Dr
To Bank

(First Payable is created then we have to make the payment)

Journal Entry –Accounts Payable

5) Maintenance Bill Need to pay to AWL- Payable

Maintenance Account Dr:- Expense:- Nominal:- Dr all Expenses & Losses

To AWL:-Creditors:- Personal:- Credit the Giver

6) Now we have paid the Maintenance Bill to AWL

AWL Account Dr--Personal--Dr
To Bank Account--Real:- Goes out is credited
Journal Entry –Accounts Receivable

7) Goods Sold to XYZ Ltd of RS 10,000/-

XYZ Account Dr:- Expense:- Personal:- Debit the Giver

To Sales:-Creditors:- Nominal:- Cr all Income & Gains

8) Customer Makes the Payment of the Invoice

Bank Account Dr--Real:- Goes In is Debited
To XYZ Account-Personal Account

9) We Sold goods of Rs 10000 to ABC Ltd & Give 10% Discount

Abc Account Dr 9000
Discount Allowed Account Dr 1000
To Sales 10000
Journal Entry –Accounts Receivable

10) Customer Makes the Payment of the Invoice

Bank Account Dr-9000
To ABC Account-9000

11) We Sold Goods of Rs 10000 to ABC Ltd at give 10% Discount

& at the time of payment, we again give 10% Discount

(Billing)
ABC Account Dr 9000
Discount Allowed Account Dr 1000
To Sales 10000
Journal Entry –Accounts Receivable

12) Customer Makes the Payment of the Invoice.

(Cash Application, Cash App)
Bank Account Dr 8100
Discount Allowed Account Dr 900
To ABC Account 9000

13) We sold goods of Rs 10000 to ABC Ltd & the payment terms
is 30 Days. We asked customer to give 10% discount if payment
is made in 15 days & Customer made the payment on 14th day.

ABC Account Dr 10000

To Sales Account 10000
Journal Entry –Accounts Receivable

14) Customer Made the Payment of the Invoice on 14th Day.

Bank Account Dr 9000
Discount Allowed Account Dr 1000
To ABC Account 10000
Journal Entry –Accounts Payable & Receivable

15) Gaurav Purchased T Shirt from Levis Store of Rs 3000. Pass

Necessary Journal Entry in both the Books.

Gaurav (Purchase)—AP Levis (Sales)-AR

Purchase Account Dr Gaurav Account Dr

To Levi's Account To Sales Account

Payment Received

Levis Account DR Bank Account Dr

To Bank To Gaurav Account
Journal Entry –Accounts Payable & Receivable

16) Rakesh Purchased Jeans of rs 10000 at a discount of 50%

from Levis & make the payment accordingly. Pass Necessary
Journal Entry in both the Books.

Rakesh (Purchase)—AP Levis (Sales)-AR

Purchase Account Dr 10K Rakesh Account Dr 5K

To Discount Received Account Dr 5K Discount Allowed Account 5k
To Levi's Account 5K To Sales Account 10K

Payment Received

Levis Account DR 5K Bank Account Dr 5K

To Bank 5K To Gaurav Account 5K
 Pre GST Post GST
Description A B C A B C

Material 100 165 220 100 150 (15) 185

Value 30 20 30 20
Addition
Profit 20 15 20 15

Total 150 200 150 185.5

Excise 15 20 GST 15 18.5

Duty
Total 165 220 165 203.50
Purchase Entries

Pre GST Entries in B’s Books Post GST Entries in B’s Books

Purchase Account DR Purchase Account Dr

To A’s Account GST Input Account Dr
To A’s Account

Sales Entries

C’s Account Dr C’s Account Dr

To Sales Account To Sales Account
To GST Out Account
Journal Entry –Accounts Payable & Receivable with GST

17) We purchase goods of rs 10000 from ABC Ltd & GST is 18%

Purchase Account Dr 10000

GST Input Account Dr 1800
To ABC Account 11800

Payment

ABC Accout Dr 11800

To Bank Account 11800
Journal Entry –Accounts Payable & Receivable with GST

18) We Sold goods to RK Enterises of rs 10000 & GST is 18%

RK Enterprises Account Dr 11800

To Sales Account 10000
To GST Output Account 1800

Bank Account Dr 11800

To RK Enterprises Account 11800
Journal Entry –Accounts Payable & Receivable with GST

15) Gaurav Purchased T Shirt from Levis Store of Rs 3000. Pass

Necessary Journal Entry in both the Books.

Gaurav (Purchase)—AP Levis (Sales)-AR

Purchase Account Dr Gaurav Account Dr

GST Input Account Dr To GST output
To Levi's Account To Sales Account

Payment Received

Levis Account DR Bank Account Dr

To Bank To Gaurav Account
Journal Entry –Record to Report (General Accounting)

20) I Deposit 5000 in Bank

Bank Account Dr
To Cash Account

21) We introduced with a capital of rs 100000

Bank Account Dr
To Capital Account
Journal Entry –Record to Report (General Accounting)

22) There is a bank charges of rs 5000

Bank Charges Account Dr

To Bank Account

23) We disturbed the goods of rs 15000 as charity

Charity Account Dr
To Purchase/Inventory/Stock
Journal Entry –Record to Report (General Accounting)

24) We distributed the goods as free sample for business

promotion of Rs 50000

Advertisement Account Dr (Expense) 50000

To Inventory/Purchase Account/Stock Account/Goods

Free Sample Account Dr

To Inventory/Purchase Account/Stock Account/Goods

Business Promotion Account Dr

To Inventory/Purchase Account/Stock Account/Goods
Journal Entry –Record to Report (General Accounting)

25) Goods Destroyed in Fire of rs 10000

Loss By Fire Account Dr 10000-Nominal Account

To Purchase/Inventory/Stock Account 10000--Real Account
Journal Entry –With Theory

26) What is Prepaid Expense?

Answer:- Prepaid Expense is the expense that is paid in advance. For example
Insurance, AMC, Rent etc. An Entity initially records this transaction as a prepaid
expense & transfers it to Profit & Loss account over the usage of time. In Prepaid, First
we have to pass the Entry
Prepaid Expense Account Dr
To Bank Account
As per the confirmation by the AP team over the mail regarding the prepaid expense &
we have to maintain the tracker in Excel & pass the accounting entry at every month
end.
Expense Account Dr
To Prepaid Expense Account
This is the GL to GL recurring entry that we need to pass every month end by FBR2.
Journal Entry –With Theory

27) We have Paid Advance Rent of Rs 45000 for 3 Months on 1

April 2023.

01 April 2023, the entry would be

Liabilities Assets
Prepaid Rent Account Dr 45000
Prepaid Rent-45000
To Bank Account 45000

30 April 2023 the Entry would be Expense Income

Rent -15000
Rent Account Dr 15000
Liabilities Assets
To Prepaid Rent Account 15000
Prepaid Rent 30000
Journal Entry –With Theory

31 May 2023 the Entry would be Expense Income

Rent -15000
Rent Account Dr 15000
Liabilities Assets
To Prepaid Rent Account 15000
Prepaid Rent 15000

30 June 2023 the Entry would be Expense Income

Rent -15000
Rent Account Dr 15000
Liabilities Assets
To Prepaid Rent Account 15000
Prepaid Rent 0

Recurring Entry means the entry that we need to pass at a regular interval
of time.
Journal Entry –With Theory

28) We have paid advance Rent of rs 60000 on 01 April 2024 to

30 June 2024. But in May we forgot to transfer it to P&L Account.
Pass Necessary Journal Entry

01 April 2024, the entry would be Liabilities Assets

Prepaid Rent-60000
Prepaid Rent Account Dr 60000
To Bank Account 60000
Expense Income
30 April 2023 the Entry would be Rent -20000

Liabilities Assets
Rent Account Dr 20000 Prepaid Rent 40000
To Prepaid Rent Account 20000
Journal Entry –With Theory

31 May 2023 No Entry Expense Income

Rent -0

Liabilities Assets
Prepaid Rent 40000

30 June 2023 the Entry would be Expense Income

Rent -40000
Rent Account Dr 20000
Liabilities Assets
To Prepaid Rent Account 20000
Prepaid Rent 0
Journal Entry –With Theory

29) What is Prepaid Income?

Answer:- Prepaid Income means the income that is received in advance. For example
Insurance, AMC, Rent etc. An Entity initially records this transaction as a prepaid
Income & transfers it to Profit & Loss account over the usage of time. In Prepaid, First
we have to pass the Entry

Bank Account
To Prepaid Income Account Dr

At every month end, We have to transfer it to P&L Account & the entry would be

Prepaid Income Account Dr

To Income Account
 Journal Entry –With Theory

30) We have Paid Advance Rent of Rs 45000 for 3 Month on 01st

April 2024 to XYZ

ABC-Prepaid Expense--B/S assets XYZ-Prepaid Income--B/S Liabilities

Prepaid Rent Account Dr 45000 Bank Account Dr 45000

To Bank Account 45000 To Prepaid Rental Income Account

Liablities Assets Liabilities Assets

Prepaid Expense 45000 Prepaid Income 45000
Journal Entry –With Theory

At every Month End the entry would be

Rent Account Dr 15000 Prepaid Rental Income Account Dr 15000

To Prepaid Rent Account 15000 To Income Account 15000

Expense Income Expense Income

Rent 15000 Rental Income 15000

Liablities Assets Liabilities Assets

Prepaid Rent 30000 Prepaid Income 30000
 Journal Entry –With Theory

30) We have Paid Advance Rent of Rs 45000 for 3 Month on 01st

April 2024 to XYZ

ABC-Prepaid Expense--B/S assets XYZ-Prepaid Income--B/S Liabilities

Prepaid Rent Account Dr 45000 Bank Account Dr 45000

To Bank Account 45000 To Prepaid Rental Income Account

Liablities Assets Liabilities Assets

Prepaid Expense 45000 Prepaid Income 45000
Journal Entry –With Theory

31):-What is Deferred Revenue Expenditure?

Answer:- Deferred revenue expenditure means the expenditure that is

incurred during an accounting period but the benefit is to be derived over
the period of time.
For Example Advertisement in a Metro or hiring a celebrity for
endorsement/promotion.
Journal Entry –With Theory

32):-What is Fixed Assets?

Fixed Assets are those assets which is used for a longer period & that
cannot be converted into cash easily or quickly For example:- Plant &
Machinery, Land & Building etc
 We have purchased Refrigerator from Vijay Sales of rs 100000 on 01st
April 2024.

Fixed Assets Account Dr 100000

To Vijay Sales Account 100000

Assets

Fixed Assets 100000

 Journal Entry –With Theory

33):-What is Depreciation?

Depreciation is the reduction in the value of fixed assets due to wear &
tear.
I Charge 10% depreciation on the above assets

Depreciation Account Dr 10000---------P&L

To Accumulated Dep Account 10000---B/s, respective assets (Less

Expense Income Assets

Depreciation 10K Fixed Assets 100000

(Accumulated Dep) -10000
Net Value :- 90000
Journal Entry –With Theory

34) What is accumulated deprecation?

Accumulated Dep is the total amount of dep which is calculated during the Financial
Year.

35) What are the methods of Depreciation?

Straight Line Method & WDV Method

36) Which is the most commonly used method of Depreciation?

Straight Line Method

Journal Entry –With Theory

37) I Purchased Fixed Assets of Rs 100000 on 01st April 2022 & Charge Dep
@2% on monthly basis. I sold this on 01 April 2024 of rs 50000/-. Pass
necessary Journal Entry.
Assets
01 April 2022
Fixed Assets Account Dr 100000 Fixed Assets 100000
To Bank Account 100000

30 April 2022
Depreciation Account Dr 2000
To Accumulated Dep Account 2000

31 May 2022
Depreciation Account Dr 2000
To Accumulated Dep Account 2000
Journal Entry –With Theory

30th June
Depreciation Account Dr 2000
To Accumulated Dep Account 2000

31 July
Depreciation Account Dr 2000
To Accumulated Dep Account 2000

31 Aug
Depreciation Account Dr 2000
To Accumulated Dep Account 2000

30 Sep
Depreciation Account Dr 2000
To Accumulated Dep Account 2000
Journal Entry –With Theory

31 Oct
Depreciation Account Dr 2000
To Accumulated Dep Account 2000

30 Nov
Depreciation Account Dr 2000
To Accumulated Dep Account 2000

31 Dec
Depreciation Account Dr 2000
To Accumulated Dep Account 2000

31 Jan 2023
Depreciation Account Dr 2000
To Accumulated Dep Account 2000
Journal Entry –With Theory

28 Feb 2023
Depreciation Account Dr 2000 Assets
To Accumulated Dep Account 2000
Fixed Assets 100000
Acc Dep (24000)
31 Mar 2023 Net Value 76000
Depreciation Account Dr 2000
To Accumulated Dep Account 2000

30 April 2023
Depreciation Account Dr 2000
To Accumulated Dep Account 2000

31 May 2023
Depreciation Account Dr 2000
To Accumulated Dep Account 2000
Journal Entry –With Theory

31 March 2024 Assets

Depreciation Account Dr 2000
Fixed Assets 100000
To Accumulated Dep Account 2000 Acc Dep (48000)
Net Value 52000
01st April 2024:- We Sold this Assets of Rs 50000.
Bank Account Dr 50000
Loss on Sale Account Dr 2000
Accumulated Dep Account Dr 48000
To Fixed Assets Account 100000

01st April 2024:- We Sold this Assets of Rs 60000.

Bank Account Dr 60000
Accumulated Dep Account Dr 48000
To Fixed Assets Account 100000
To Profit on Sales of Fixed Assets 8000
Journal Entry –With Theory

38) What is Outstanding Expense?

Outstanding expense means the expense which has been booked but not yet paid.

Expense Account Dr--------P&L---Expense Liabilities Assets

To Outstanding Exp Account---------B/s---Liabilities Outstanding Exp

39) What is Outstanding Income?

Outstanding income means the income which is earned but not yet received.

Outstanding Income Account Dr -----B/s----Assets

To Income Account-------P&L----Income Side
Liabilities Assets
Outstanding Income
Journal Entry –With Theory

40) What is Accruals?

Accruals Principle of accounting states that every transaction is recorded in the system
when they incur or earned.

41) What is Accrued Expense?

It means the expense in which we have taken the services but the bill against the said
services has not been booked or received in an accounting system.

Expense Account Dr -----P/L----Expense

To Accruals Account-------B/s----Liabilities Side

Liabilities Assets
Accrued Expense
A:- Legal:- Bill
B:- Freight:- No Bill
C:- Maintenance:- No Bill
D:- Advertisement:- Bill

P&L
Legal
Advertisement

Freight-Accruals
Maintenance-Accrual

B/s
Creditors--A&D
Accruals Expenses

Freight Account Dr
Maintenance Account Dr
To Accruals Account--B/s--Liabilities
Journal Entry –With Theory

42) What is Accrued Income?

Accrued Revenue means the income that has been earned but not yet received like
Commission, Payments

Accrued Income Account Dr---B/s--Assets

To Income Account--PL--Credit Side--Income Side

Liabilities Assets
Accrued Income
Journal Entry –With Theory

43) What is Provision?

Provision is the amount that we set aside to cover the future liability.

For Example:- We have sold some goods to ABC Ltd of Rs 1,00,000 & they have paid
60,000 rs and the balance we have a doubt to recover it.
Sales
Abc Account Ltd 100000 Liabilities Assets
To Sales Account 100000 Provision 40,000 Debtors:- 100000

Bank Account Dr 60,000 Received-(60000)

To ABC Ltd 60,000 Bad Debts-(40000)

P&L Account Dr 40,000--------------P&L--Exp

To Provision for doubtful debt Account 40,000---Liabilities
Journal Entry –With Theory

Bad Debts Account Dr 40,000----------------P&L Debit---Exp

To ABC Ltd 40,000

Reverse

Provision for doubtful debt Account Dr 40,000

To P&L Account Dr 40,000
Liabilities Assets

Debtors:- 100000

Received-(60000)

Bad Debts-(40000)
Journal Entry –With Theory

44) We have sold some goods to ABC Ltd of Rs 1,00,000 & they have paid 50,000 rs and
the balance we have a doubt to recover it. Later on 50% of the amount recovered &
50% become bad debts.

Sales
Abc Account Ltd 100000
To Sales Account 100000

Liabilities Assets
Bank Account Dr 50,000
To ABC Ltd 50,000 Provision-50000 Debtors:- 100000

Received-(50000)
P&L Account Dr 50,000--------------P&L--Exp
To provision for doubtful debt Account 50,000---Liabilities Received-(25000)

Bad Debts-(25000)
Journal Entry –With Theory

Bad Debts Account Dr 25,000----------------P&L Debit---Exp

Bank Account Dr 25000
To ABC Ltd 50,000

Reverse

Provision for doubtful debt Account Dr 50,000

To P&L Account Dr 50,000
Liabilities Assets

Debtors:- 100000

Received-(50000)

Received-(25000)

Bad Debts-(25000)
Journal Entry –With Theory

45) What is Contingent Liability?

It is liability or a potential loss that may or may not occur depend on the outcome of
the event. For Example:- Product Warranties, Law Cases etc

Expense Account Dr
To Contingent Liability Account.

46) What is Unearned Income?

Unearned Income means the income that is not earned from work. It includes Interest
on saving account, financial prize, dividends etc.

Bank Account Dr
To Unearned Income Account Dr
 SquNik

Class 2nd-
How to Install/Login in SAP S4 HANA
What is SAP

SAP means System application & product in data processing.

SAP is the most commonly used software around the globe.

It has been successful due to the integration among various departments.

It is the world leading producer of software for the management of business process.

SAP was Founded in 1972. It is a German Based Software.

SAP has 72 Module, 70 has functional Module & 2 has Technical Module (ABAP & BASIS)

72 Modules in SAP
 Step 1:- Go to Remote Desktop (Window & R)

 Step 2:- Enter the server details & User Name/Password

 183.82.120.214:8228 Password is hana@123
 Step 3:- Logon to SAP

 Step 4:- Enter User Name & Password

Double Click on the Icon

Production

Development
Server

Testing

Types of Server
Development Server:- Where Configuration is done.

Testing/Quality Server:- Where we check whether all the data is working well or not.

Production:- It means live system which impacts the financial.

Double Click here

 Enter the Password & click on the
new Password if you want to reset it.
Enter the user Name &
Password

You have three attempts to enter

the password.
SAP Home Page

Command Back New Session

For T Codes
T Code (Transactional Codes) List

T Codes Description
ME21N For Creating PO
ME22N For Editing PO
ME23N For Display PO
ME51N For Purchase Requisition
MIGO For GRN
MIRO For Material Invoice Processing
FB60 For Service Invoice Processing
FV60 For Parking Invoice
FBV0 For Posting Parked Invoice
FBL1N Vendor Line Item Display
FBL3N GL Line Item Display
FB03 For Displaying Document No
FB02 Edit Document No
 SquNik

Class 3rd-GL Creation-FS00

What is GL:- General Ledger

General Ledger is used to record the business transaction of the firm.

It Could be Expense Account, Income Account, Liability or Asset Account.

It represent external accounting like P&L & B/s & accounts like Creditors, Debtors,
Salary, Purchase etc involved in it.

FS00 is the T Code to Create the Ledger in SAP

Creation of ledger is a part of MDM Team (Master Data Management)

 FS00:- Create GL
1. Change the Settings
 FS00:- Create GL
1. Change the Company Code
What is Company Code?

Company code is the legal entity through which financial statements are drawn. It’s a
four digit character & could be alphabetic, numeric or alphanumeric like 514J, 2700,
WHIL. We have to Use VI12 Company Code.

TCS

Motors

TATA
Croma
(Group)

Jewelry

steel
Company Code Changed.
List of GL Account Group
FS00:- Create GL

For Example we have to pass the accounting Entry

Bank Charges Account Dr

To Bank Account

Electricity Account Dr
Maintenance Account Dr
Repair Account Dr
To Bank Account

So we have to create the above GL by FS00

Create Bank Charges as other Expense
Control Data
Create/bank/interest
Save it
For Edition Click on Pen, To Find GL Click on Find Icon
Create Electricity Expense Under Admin Exp Group
Create Electricity Expense Under Admin Exp Group
Create Electricity Expense Under Admin Exp Group
Create Electricity Expense Under Admin Exp Group
Cost Center
Cost Element, Cost Center & Simple GL

Cost Element:- When we link the GL with the Cost Center then it is
called Cost Element. Simple GL means, GL without Cost Center

Cost Center is used to allocate the cost of the company as per

department wise.

Cost Center is always linked with Indirect Expense.

Generally AP Team at the time of Invoice processing link the Cost

Center with the GL.

GL means General Ledger, it is used for External Reporting while

Cost Center is used for Internal Reporting.
Create Electricity Expense Under Admin Exp Group
Create Prepaid Expense Under Other Current Assets
Create Prepaid Expense Under Other Current Assets
Create Prepaid Expense Under Other Current Assets
Create Prepaid Expense Under Other Current Assets
Create Bank Under Cash & Bank Balances
Create Bank Under Cash & Bank Balances
Create Bank Under Cash & Bank Balances
Create Bank Under Cash & Bank Balances
Field Status Group

General Ledger Field Status

General Expenses G001

Expense with Cost Center G004

Balance Sheet GL G001

Bank GL G005
 SquNik

Class 2nd - GL to GL Entry-FB50

 FB50-GL to GL Entry
What is GL to GL Entry?

Answer:- In GL to GL Entry, we need to post the entries that contains two or

more ledgers except vendor or customer.

Bank Charges Account Dr

To Bank Account

Depreciation Account Dr
To Accumulated Dep Account

Expense Account Dr
To Prepaid Expense Account
FB50-GL to GL Entry
For Example we have to pass the accounting Entry:-

Bank Charges Account Dr

To Bank Account

Electricity Account Dr
Maintenance Account Dr
Repair Account Dr
To Bank Account

Misc Expense Account Dr

To Bank Account

Rent Account Dr
To Prepaid Rent Account
FB50-GL to GL Entry
FB50-GL to GL Entry
FB50-GL to GL Entry
Document Type & Posting Keys
S GL
SA GL to GL Entry
AB Reversal of GL to GL Entry
K Vendor
KR Vendor Invoice
KZ Vendor Payment
KA Vendor Reversal

Posting Keys
Posting Keys Dr Cr
GL 40 50
Vendor 21 31
Customer 05/01 15
FBL3N:- GL Line Item Display
FBL3N:- GL Line Item Display
 SquNik

Class 6th -GL to GL Entry-F-02

 F-02-GL to GL Entry
For Example we have to pass the accounting Entry:-

Bank Charges Account Dr---40

To Bank Account--50

Electricity Account Dr--40

Maintenance Account Dr---40
Repair Account Dr---40
To Bank Account---50

Posting Keys
Posting Keys Dr Cr
GL 40 50
Vendor 21 31
Customer 05/01 15
F-02-GL to GL Entry
F-02-GL to GL Entry
FBL3N:- GL Line Item Display
FBL3N:- GL Line Item Display
 SquNik

Class 7th -Parking & Posting of Document

FB50/F-02- Parking of GL to GL Entry
For Example we have to pass the accounting Entry:-

Bank Charges Account Dr---40

To Bank Account--50

Electricity Account Dr--40

Maintenance Account Dr---40
Repair Account Dr---40
To Bank Account---50
F-02-GL to GL Entry
FB50-GL to GL Entry
FBV0:- Post Parked Document
FBV0:- Post Parked Document
 SquNik

Class 8th -Rectification & Reversal

Reversal of Incorrect Document
For Example we have to pass the accounting Entry:-

Bank Charges Account Dr 8500

To Bank Account 8500

Reversal are of Two Type

Open Item Reversal Cleared Item Reversal

FB08 FBRA
FB08:- Reversal
After Reversal of Document By FB08, the Entry would
be

Bank Account Dr 8500

To Bank Charges Account 8500

Now we need to take the Correct Entry as the

previous entry got nullify.

Bank Charges Account Dr 850

To Bank Account 850
After Reversal of Document By FB08, AB Doc got
generated.
Rectification of Entry FB50

For Example we have to pass the accounting Entry:-

Maintenance Account Dr 7000

Repair Account Dr 7500
To Bank Account 14500

In this entry, We mistakenly Debit the Repair instead of Parking Expense So we have to rectify
the repair Account by Debiting the Parking Expense & Crediting the Repair Expense Account So
the entry would be

Parking Exp Account Dr

To Repair Account
------------------------------------------------------------------------------------
Bank Account Dr 8500-850
To Bank Charges Account 8500-850
SquNik

Class 09th-Manual Recurring Entry-FBR2

 Recurring Entry-FBR2 (Manual)
Recurring Entry means the entry that we need to pass at a regular interval of time.

01 Aug 2023
Rent Account Dr 1000
To Prepaid Rent 1000

Doc 10000044

01 Sep 2023
Rent Account Dr 1000
To Prepaid Rent 1000

01 Oct 2023
Rent Account Dr 1000
To Prepaid Rent 1000

01 Nov 2023
Rent Account Dr 1000
To Prepaid Rent 1000
 Recurring Entry-FBR2 (Manual)
First, Post the document from FB50 & give the document No Here.

Tick on Copy Texts if GL & Amount are Same

Tick on Display Line Items if GL or Amount are different.

 Recurring Entry-FBR2 (Manual)
01 Aug 2023
Bank Charges Account Dr 150
To Bank Account 150

Doc No 10000048

01 Sep 2023
Bank Charges Account Dr 220
To Bank Account 220

01 Oct 2023
Bank Charges Account Dr 135
To Bank Account 135

01 Nov 2023
Bank Charges Account Dr 440
To Bank Account 440
 SquNik

Class 9th -Automatic Recurring Entry

 Recurring Entry
Recurring Entry means the entry that we need to pass at a regular interval of time.

We have Paid 60000 Rent on 01 Aug 2023-6000000007

31 Aug 2023
Rent Account Dr 10000
To Prepaid Rent 10000

30 Sep 2023
Rent Account Dr 10000
To Prepaid Rent 10000
----------------------------------------------------------------------------------------------------------------------------------------------------
31 Aug 2023--6000000008
Insurance Account Dr 2000
To Prepaid Insurance 2000

30 Sep 2023
Insurance Account Dr 2000
To Prepaid Insurance 2000
Recurring Entry-Automatic
Enter Recurring Entry FBD1

Check Recurring Entry F.15

Posting document for Recurring Entry F.14

Batch Process to Execute Recurring Entry SM35

Check Ledger FBL3N

Step 1:-Recurring Entry-FBD1 (Automatic)
Step 2:-Recurring Entry-F.15 to Check Document
Step 2:-Recurring Entry-F.15 to Check Document
Step 3:-Post Recurring Entry-F.14
Step 4:- Batch Process to Execute Entry SM35
Step 5:- Check Ledger by FBL3N
SquNik

Class 10th -GL Clearing-F-03

Vendor :- FBL1N

Open Item:-Yet to be paid:- Invoice Process

Expense Account Dr
To Vendor Account

Cleared Item:- Paid or Reversed Entry

Vendor Account Dr
To Bank

All Item:- Payable (invoice Process)+ Payment (Paid)+ Reversal

Customer:- FBL5N

Open Item:-Receivable:- Yet to Receive

Customer Account Dr
To Sales Account

Cleared Item:- Payment Received or Reversed

Bank Account Dr
To Customer

All Item:- Receivable + Payment + Reversal

Ledger:- FBL3N

Open Item:-Show All Posted Entries

Bank Charges
To Bank

Cleared Item:- Cleared item only GL Cleared Items-TDS Payable or GST Payable

All Item:- Posted + Reversal

TDS Payable:-Open Item-Cleared Item-All Item

GST Payable:- Open Item-Cleared Item-All Item

Accounts Payable Team

Expense Account Dr 50000—FBL3N, Posted Entry

To Vendor Account 45000---FBL1N—Open, Cleared, All Item
To TDS Account 5000—FBL3N—Open, Cleared, All Item

Expense Account Dr 50000

To Vendor Account 45000
To TDS Account 5000

Expense Account Dr 50000

To Vendor Account 45000
To TDS Account 5000
Check Ledger of TDS Payable:- FBL3N
Check Ledger of TDS Payable:- FBL3N

Open Item
Inv No 1 5000
Inv No 2 5000
Inv No 3 5000
Inv No 4 5000
Inv No 5 5000
Inv No 6 5000
Inv No 7 5000
Inv No 8 5000
Inv No 9 5000
Inv No 10 5000
-------
50000
TDS Payment-30000—FB50
-----------
20000
Inv No 11 5000
Inv No 12 5000
---------------
30000
TDS Payment-10000—FB50
--------------
20000
GL Clearing Steps

Step 1:- TDS Ledger Create FS00

Step 2:- Journal Entry:- FB60--Recurring Entry FBR2

Step 3:- TDS Payable:- Check FBL3N

Step 4:- AP Instruction Posting FB50—30,000 Inv No 1,2,4,5,7,9 & 10,000 Inv No 11 & 12

Step 5:- Ledger Check:- FBL3N

Step 6:- GL Clearing F-03

We clear the ledger to clear the books of accounts so that it represents the clear picture about the
ledger.
 SquNik

Class 11th -Bank Reconciliation Theory

Bank Reconciliation Theory

What is Bank Reconciliation?

Answer:-Match, Tally:- 2 Information

Vendor Reconciliation:-Closing Balance

Customer Reconciliation:-Closing Balance

Bank Reconciliation:-Closing Balance:- BRS

Bank reconciliation is a process of matching the closing balance of the

statement provided by bank with the closing balance of Bank Ledger (Sap Ledger).
In Case of any mismatch then we need to prepare the Bank reconciliation
statement.
Bank Reconciliation Theory
Description Bank Ledger/SAP Bank Statement Remarks
Deposit 1 Lakh into Bank 100000 100000 Ok
Cheque Issued for Maintenance -5000 -5000 OK
Balance 95000 95000
Cheque Issued to Carpenter -8000 0 BRS
Balance 87000 95000
Bank Charges 0 -500 BRS
Balance 87000 94500
Interest on Investment 0 800 BRS
Balance 87000 95300
Received 10k from Customer(BT) 10000 10000 Ok
Balance 97000 105300
Received 5K from Customer (BT) 5000 0 BRS
Balance 102000 105300
Month End Deposit Cheque 15000 0 BRS
Closing Balance 117000 105300
Bank Reconciliation Theory
BRS for the Month of May 2024

Closing Balance as per Bank Ledger/Sap 117000

Add:- Cheque Issued but Not Presented 8000

Less:- Debited by Bank but Not Credited by us -500

Add:- Credited by bank but not debited by us +800

Less:- Debited by Bank but Not Credited by us -5000

Less:- Debited by Bank but Not Credited by us -15000

Balance 105300

Closing Balance as per Bank Statement 105300

Difference 0
Bank Reconciliation Theory
BRS for the Month of May 2024

Closing Balance as per Bank Statement 105300

Less:- Cheque Issued but Not Presented -8000

Add:- Debited by Bank but Not Credited by us +500

Less:- Credited by bank but not debited by us -800

Add:- Debited by Bank but Not Credited by us +5000

Add:- Debited by Bank but Not Credited by us +15000

Balance 117000

Closing Balance as per Bank Ledger/Sap 117000

Difference 0
Bank Reconciliation Theory

Question 1:- What is Bank Reconciliation:-

Answer:- Bank Reco is the process of matching the closing balance of the bank statement with the
closing balance of Bank ledger (SAP Ledger) for a specified period.

In my current organization, i am preparing the bank reconciliation of two banks on daily, weekly &
monthly basis. I have to compare both the files & highlight the mismatch & take action accordingly.

Question 2:- Which balance do you take while preparing the bank reconciliation?

Answer:- I will take either the closing balance of the bank statement or the closing balance of SAP
Ledger
Bank Reconciliation Theory

Question 3:- What are the reasons that causes bank reconciliation to prepare?

Question:- Tell me the Five reasons why we prepare the Bank Reconcilation?

Answer:-
1. Cheque issued but not presented:- Sometimes we issue a cheque to the vendor but vendor
forget or delay in depositing the same into bank.

2. Debited by Bank but not credited by us:- Bank Charges

3. Credited by Bank but not debited by us:- For example Interest on Investment.

4. Debited by us but not credited by Bank:- For Example when we deposit any cheque at month
end but it will be cleared in the next month. This is also the case of time & difference.

5. Other reasons like Dishonor of Cheque, Clerical error etc.

Bank Reconciliation Theory

Question 4:- What is the process to prepare the bank reconciliation?

Answer:- For preparing Bank Reconciliation, First I get the bank statement from the Bank portal, I
log in to the bank , go to the bank statement tab, select the respective period & export in Excel.
Now we go FBL3N, Select the Bank Ledger followed by Co Code & select the period & export the
data in Excel.

Now, we have two Sheet, No 1 is the bank statement & second one is the bank ledger that we need
to reconcile by the use of vlookup & highlight the mismatch if any.

Question 5:- What we do after preparing the bank reconciliation?

Answer:- After preparing the bank reconciliation, I need to work on open items. For Example for
Vendor Entries if open, I need to approach to the AP team, for incoming Payment, I need to
approach to the AR Team.
If the period is open then we ask them to take the entries in the Previous period else they take the
entry in current period.
Bank Reconciliation Theory
Question 6:- You are going to prepare the bank reconciliation & you have taken the closing balance
of SAP Ledger which item will you add & which you subtract?

Answer:- If we are taken the closing balance of Bank Ledger (SAP Ledger) then we will add the
following items:-
1. Cheque Issued but not presented
2. Credited by bank but not debited by us

we need to subtract the below items:-

1. Debited by bank but not credited by us
2. Debited by us but not credited by bank

If we are taken the closing balance of Bank Statement then we have

to do vice versa.
Bank Reconciliation Theory
Question 7:- There is a bank charges of Rs 4500 but mistakenly you have entered as 45000/- so
what would you do in this case?

Answer:- In this case, we have two options,

1. Either to revere the complete entry (FB08) & take the fresh entry (FB50)

2. We have to rectify this entry by FB50 by 40500/- in which we debit

the bank & credit the bank charges.

Question 8:- How many transaction that you need to reconcile per day in bank reconciliation?

Answer:- 300 to 350 transaction per day.

Question 9:- How long will you take to prepare the bank reconciliation?

Answer:- It depends on the number of transaction for example for 300 to 500 transaction, i need to
spend 1 to 2 hours as i also have to work on open items.
Bank Reconciliation Theory
Question 10:- We have the same closing balance in both Bank Statement & Ledger so do we need
to prepare the bank Reconciliation?

Answer:- Yes, because there may be transaction where debit & credit are matching in both bank
Statement & Ledger.

Ledger Bank Statement

10000 10000
-5000 0
------------------------------------------------------------
5000 10000
0 -5000
-------------------------------------------------------------
5000 5000
Bank Reconciliation Theory
Question 11 :- There is vendor cheque which is opened since last 2 Months What should you do in
this case?

Answer:-In this case we need to highlight this to the AP team so that they approach to the vendor
for depositing the same into bank before it get stale.

Question 12:- When the cheque will get stale?

Answer:- 3 Months

Question 13:- Which formula do you apply while preparing the bank reconciliation?

Answer:- Vlookup:- Is used to retrieve the data from a range of Cell based on Column No.
=Vlookup(lookup value, Range, Column No, 0)
Bank Reconciliation Theory
Question 14:- In Which Bank, does the company has an account?

Answer:- Sorry, i cannot share this is against the company policy.

Question 15:- How much is the balance in the bank account?

Answer:- Sorry, i cannot share this is against the company policy.

SquNik

Class 11th -Interview Questions

Technical Questions/Operation Round/Manager Round

Question 1:- What is Bank Reconciliation:-

Answer:- Bank Reco is the process of matching the closing balance of the bank statement with the
closing balance of Bank ledger (SAP Ledger) for a specified period.

In my current organization, i am preparing the bank reconciliation of two banks on daily, weekly &
monthly basis. I have to compare both the files & highlight the mismatch & take action accordingly.

Question 2:- Which balance do you take while preparing the bank reconciliation?

Answer:- I will take either the closing balance of the bank statement or the closing balance of SAP
Ledger
Technical Questions/Operation Round/Manager Round

Question 3:- What are the reasons that causes bank reconciliation to prepare?

Question:- Tell me the Five reasons why we prepare the Bank Reconciliation?

Answer:-
1. Cheque issued but not presented:- Sometimes we issue a cheque to the vendor but vendor
forget or delay in depositing the same into bank.

2. Debited by Bank but not credited by us:- Bank Charges

3. Credited by Bank but not debited by us:- For example Interest on Investment.

4. Debited by us but not credited by Bank:- For Example when we deposit any cheque at month
end but it will be cleared in the next month. This is also the case of time & difference.

5. Other reasons like Dishonor of Cheque, Clerical error etc.

Technical Questions/Operation Round/Manager Round

Question 4:- What is the process to prepare the bank reconciliation?

Answer:- For preparing Bank Reconciliation, First I get the bank statement from the Bank portal, I
log in to the bank , go to the bank statement tab, select the respective period & export in Excel.
Now we go FBL3N, Select the Bank Ledger followed by Co Code & select the period & export the
data in Excel.

Now, we have two Sheet, No 1 is the bank statement & second one is the bank ledger that we need
to reconcile by the use of vlookup & highlight the mismatch if any.
Technical Questions/Operation Round/Manager Round

Question 5:- What we do after preparing the bank reconciliation?

Answer:- After preparing the bank reconciliation, I need to work on open items. For Example for
Vendor Entries if open, I need to approach to the AP team, for incoming Payment, I need to
approach to the AR Team.
If the period is open then we ask them to take the entries in the Previous period else they take the
entry in current period.
Technical Questions/Operation Round/Manager Round

Question 6:- What is open Item in Bank Reconciliation?

Answer:-Open Item means mismatched transaction which is available in bank statement not in
bank ledger & available in bank ledger but not in bank statement.

Pls Note:- In Accounts Payable & Receivable Open Items means payable entry (Purchase) &
Receivable entry (Sales)
Technical Questions/Operation Round/Manager Round
Question 7:- You are going to prepare the bank reconciliation & you have taken the closing balance
of SAP Ledger which item will you add & which you subtract?

Answer:- If we are taken the closing balance of Bank Ledger (SAP Ledger) then we will add the
following items:-
1. Cheque Issued but not presented
2. Credited by bank but not debited by us

we need to subtract the below items:-

1. Debited by bank but not credited by us
2. Debited by us but not credited by bank

If we are taken the closing balance of Bank Statement then we have to do vice versa.
Technical Questions/Operation Round/Manager Round
Question 8:- There is a bank charges of Rs 4500 but mistakenly you have entered as 45000/- so
what would you do in this case?

Answer:- In this case, we have two options,

1. Either to revere the complete entry (FB08) & take the fresh entry (FB50)

2. We have to rectify this entry by FB50 by 40500/- in which we debit

the bank & credit the bank charges.

Question 9:- How many transaction that you need to reconcile per day in bank reconciliation?

Answer:- 300 to 350 transaction per day.

Question 10:- How long will you take to prepare the bank reconciliation?

Answer:- It depends on the number of transaction for example for 300 to 500 transaction, i need to
spend 1 to 2 hours as i also have to work on open items.
Technical Questions/Operation Round/Manager Round
Question 11:- We have the same closing balance in both Bank Statement & Ledger so do we need
to prepare the bank Reconciliation?

Answer:- Yes, because there may be transaction where debit & credit are matching in both bank
Statement & Ledger.

Ledger Bank Statement

10000 10000
-5000 0
------------------------------------------------------------
5000 10000
0 -5000
-------------------------------------------------------------
5000 5000
Technical Questions/Operation Round/Manager Round
Question 12:- There is vendor cheque which is opened since last 2 Months What should you do in
this case?

Answer:-In this case we need to highlight this to the AP team so that they approach to the vendor
for depositing the same into bank before it get stale.

Question 13:- When the cheque will get stale?

Answer:- 3 Months

Question 14:- Which formula do you apply while preparing the bank reconciliation?

Answer:- Vlookup:- Is used to retrieve the data from a range of Cell based on Column No.
=Vlookup(lookup value, Range, Column No, 0)
Technical Questions/Operation Round/Manager Round
Question 15:- In Which Bank, does the company has an account?

Answer:- Sorry, i cannot share this is against the company policy.

Question 16:- How much is the balance in the bank account?

Answer:- Sorry, i cannot share this is against the company policy.

Technical Questions/Operation Round/Manager Round
Question 17:- What is Accruals?

Answer:- Accruals Accounting of principle states that every transaction is to be recorded in the
system when they incur. Accrual Expense means the expense in which we have taken the services
but we have not received the bill or posted in the system. In that case we go for accrual.
Once We receive the actual Invoice then we have to reverse the previous entry of Accruals.

Every 25 of the month we have to send the mail to every department regarding the accruals In
which we have taken the services but the bill against the said services has not been received or
booked in an accounting system. So once we receive the data from various departments that we
have to maintain the data in Excel tracker & pass the accounting entry

Expense Account Dr
To Accruals Account---B/s Liabilities

Once the actual bill is posted by the account payable then we have to update the tracker of
accruals & reverse the previous entry of accruals. If any invoice is open in Excel tracker or not
posted by the AP team then we have to carry forward to the next month accruals tracker.
Technical Questions/Operation Round/Manager Round

Accrual

Accrual

Accrual
Technical Questions/Operation Round/Manager Round
Technical Questions/Operation Round/Manager Round
Question 17:-For which invoice do you post the accruals?

Answer:- Rent Expense, Freight Charges, Maintenance, Advertisement, Printing Charges,

Professional Charges etc.
Technical Questions/Operation Round/Manager Round
Question 18:- What is the Journal Entry for distributing goods as free sample?

Answer:- Advertisement Account Dr/ Charity Account Dr

To Purchase Account /Inventory/Stock

Question 19:- What is Prepaid Expense?

Answer:- Prepaid Expense is the expense that is paid in advance. For example Insurance, AMC,
Rent etc. An Entity initially records this transaction as a prepaid expense & transfers it to Profit &
Loss account over the usage of time. In Prepaid, First we have to pass the Entry
Prepaid Expense Account Dr
To Bank Account
As per the confirmation by the AP team over the mail regarding the prepaid expense & we have to
maintain the tracker in Excel & pass the accounting entry at every month end
Expense Account Dr
To Prepaid Expense Account
This is the GL to GL recurring entry that we need to pass every month end by FBR2.
Technical Questions/Operation Round/Manager Round
Question 20 :- What is the backup to Post the Prepaid Entry?

Answer:- Proper documentation (Insurance Policy Copy) along with the Approval, Document No of
the Entry Posted.
Technical Questions/Operation Round/Manager Round
Question 21:- You have paid an advance Rent of Rs 45,000 for 3 months to XYZ Ltd on 1st April
2023. Pass necessary Accounting/Journal Entry

The First Entry Would be :-1st April 2023

Prepaid Rent Account Dr 45K-----------B/s---Assets
To Bank Account 45K

Now we have to transfer this prepaid expense to P&L Account & the accounting entry would be
30th April 2023
Rent Account Dr 15K
To Prepaid Rent Account 15K

This is a recurring entry that we need to pass every month by using T code FBR2.
Technical Questions/Operation Round/Manager Round
Question 22:- You have paid an advance Rent of Rs 60,000 for 3 months to XYZ Ltd on 1st April 2024
& you forget to take the entry in the month of May’24. Pass necessary Accounting Entry?

The First Entry would be :-01st April 2024

Prepaid Rent Account Dr 60K
To Bank Account 60K

Now we have to transfer this prepaid expense to P&L Account & the accounting entry would be
30th April 2024
Rent Account Dr 20K
To Prepaid Rent Account 20K

31st May 2024 ..Forget to take the entry.

30th Jun 2024

Rent Account Dr 40K
To Prepaid Rent Account 40K
Technical Questions/Operation Round/Manager Round
Question 24:- What is Audit Schedule?

Answer:- In Audit Schedule, we have to prepare the data in Excel as per the requirement of the
auditor. This audit schedule format share by the auditor.

Question 25:- What is prepaid Income?

Answer:- Prepaid income means the income that is received in advance. For e.g Rent, Insurance etc
An entity initially records this transaction as a prepaid income & transfer it to Profit & loss account
over the period of time.

Bank Account Dr
To Prepaid Income Account ---Liabilities

At Month:-
Prepaid income Account Dr
To Income
Technical Questions/Operation Round/Manager Round
Question 26:-What is Inter Company?

Answer:- When there is a transaction between two legal entities of the same organization or
between the parent company & its subsidiaries.

Question 27:- What is Intra Company?

Answer:- When there is a transaction between two branches of the same organization. For
Example:- Whirlpool is a US Based Company & It has subsidiary in India & India has two branches
one in delhi & one in Gurgaon So the transaction between Delhi & Gurgaon is called Intra Company
transaction & the transaction between Whirpool Us & India is called Inter Company transaction.

Question 28:- Do you reconcile B/s?

Answer:- Yes, In Reco of B/s, we need to reconcile the items of B/s like prepaid Expense,
Amortization, Creditors Report, Debtors Report ,Bank Reconciliation, Inter Company Reco, Accruals
etc.
Technical Questions/Operation Round/Manager Round
Question:-29 A Paid to B on behalf of C, What is the accounting entry in this case?

A B C
B Account Dr Bank Account Dr B Account Dr
To Bank To A Account To A

Question 30:- What is the process to prepare the intercompany reconciliation?

Answer:-When transaction between two legal entities of the same organization or between the
parent company & its subsidiaries. In Intercompany Reco we get the data from the subsidiaries
that we need to reconcile with our data of FBL3N. Sometimes there may be a mismatch in both the
data like the payable or receivable, Payment related data or short payment or under payment by
the subsidiaries.
We go FBL3N, get the data from various ledger like IC Sales, IC Sales Return ,IC Bank & select the
period & Export it in Excel. Now we need to reconcile this data with the data shared by the
subsidiaries.
The data that we are reconciling could be a sales or the purchased shared by the subsidiaries.
Technical Questions/Operation Round/Manager Round
Question 31:- What is the Journal Entry of Amortization?

Answer:- Amortization Expense Account Dr

To Accumulated Amortization

Question 32:- What is outstanding Expense?

Answer:- Outstanding expense means the expense which has been booked but not yet paid.

Expense Account Dr-------------P&L---Expense

To Outstanding Expense Account-------------B/s---Liabilities

Question 33:- What is Outstanding Income?

Answer:- Outstanding income means the income which is earned but not yet received.

Outstanding Income Account Dr -----------------B/s----Assets

To Income Account-------------P&L----Income Side
Technical Questions/Operation Round/Manager Round
Question 34:- What is Fixed Asset?

Answer:-Fixed Assets are those assets which is used for a longer period & that can not be
converted into cash easily or quickly.

For Example:- I Purchased Air Condition of Rs 60,000 from Vijay Sales.

Air Condition Account Dr 60,000

To Vijay Sales 60,000

B/S
Assets
Air Condition 60,000
(Accumulated Dep) 6000
Net Value 54,000
Technical Questions/Operation Round/Manager Round
Question 35:- What is Depreciation?

Answer:- Dep is the reduction in the value of Fixed Assets due to wear & tear

I charge depreciation @ 10% per year on the above assets

Depreciation Account Dr 6000---------------------P&L

To Accumulated Depreciation 6000-------------B/s, It will be deducted from the respective assets

Question 36:-What is Accumulated Dep?

Answer:-It is the total amount of depreciation calculated during the FY.

Question 37:- I sold the above asset of Rs 58,000/-

Bank Account Dr 58000

Accumulated Dep Dr 6000
To Sale of Assets 60,000
To Profit on Sale of Assets 4000
Technical Questions/Operation Round/Manager Round
Question 38:-I Sold the above assets of rs 50,000/-

Bank Account Dr 50,000

Loss on Sale of Assets 4000
Accumulated Dep Dr 6000
To Sale of Assests 60000

Assets
Air Condition 60,000
(Accumulated Dep) 6000
Net Value 54,000

Question 39:-I Sold the same assets of rs 62,000/-

Bank Account Dr 62000

Accumulated Dep Account 6000
To Sale of Assets 60000
To Profit on Sale of Assets 8000
Technical Questions/Operation Round/Manager Round
Question 41:- Are you taking care of Fixed Asset Accounting?

Answer:- No, I am a part of reconciliations & my colleague is taking care of Fixed Asset Accounting.

Question 43:- What are the methods of depreciation?

Answer:- SLM & WDV

Question:- Which Method is used to charge depreciation

Answer:- SLM

Question 42:- What is Provision?

Answer:- Provision is the amount that we set aside to cover the future liability.
Technical Questions/Operation Round/Manager Round
For Example:- We have sold some goods to ABC Ltd of Rs 1,00,000 & they have paid 60,000 rs and
the balance we have a doubt to recover it.

Sales
Abc Account Ltd 100000
To Sales Account 100000

B/S
Debtors 100000
-60000
40,000
-40,000
-------------
0
Bank Account Dr 60,000
To ABC Ltd 60,000

P&L Account Dr 40,000--------------P&L--Exp

To provision for doubtful debt Account 40,000---Liabilities
Technical Questions/Operation Round/Manager Round
Bad Debts Account Dr 40,000----------------P&L Debit---Exp
To ABC Ltd 40,000

Reverse

Provision for doubtful debt Account Dr 40,000

To P&L Account Dr 40,000
Technical Questions/Operation Round/Manager Round
Question 43: We have sold goods to Ramesh of Rs 40,000. Ramesh has paid 28000 and the balance
we have a doubt to recover from Ramesh. Later on Ramesh has paid 5000 and the balance went
to Bad debts. Pass Necessary Journal Entry.

Ramesh Account Dr 40,000

To Sales 40,000

B/s
Debtors 40,000
-28000
-5000
-7000

Bank Account Dr 28000

To Ramesh Account 28000

P&L Account Dr 12000 -----------------------------P&L

To Provision for Doubtful Debt 12000 ----------Liability
Technical Questions/Operation Round/Manager Round
Bank Account Dr 5000
To Ramesh Account 5000

Bad Debts Account Dr 7000

To Ramesh account 7000

Bank Account Dr 5000

Bad Debts Account Dr 7000
To Ramesh Account 12000

Reverse
Provision for Doubtful Debt Account Dr 12000
To P&L Account Dr 12000
Technical Questions/Operation Round/Manager Round
Question 44:- What is Deferred Revenue Expenditure?

Answer:- Deferred revenue expenditure means the expenditure that is incurred during an
accounting period but the benefit is to be derived over the period of time.

For Example Advertisement in a Metro or hiring a celebrity for endorsement/promotion.

Question 45:- What is contingent liability?

Answer:- It is liability or a potential loss that may or may not occur depend on the outcome of the
event. For Example:- Product Warranties, Law Cases etc

Expense Account Dr
To Contingent Liability Account.

Question 46:- On this ERP are you working on?

Answer:- I am working on SAP S4 HANA

Technical Questions/Operation Round/Manager Round
Question 47:- On which module of SAP are you working on?

Answer:- I am working FI/CO Module:- Financial Accounting & Controlling

Question 48:- On Which T Codes are you currently working on?

Answer:- FB50, F-02, FBL3N, FS10N, FBR2, F-03, FB08, FBRA, FB02 & FB03, FBD1, F.14, F.15 & SM37

Question 49:- What is GL?

Answer:-means general ledger that is used for keeping record of a company total financial
accounts. GL is a part of P&L & B/s

Question 50:- What is GL to GL Entry?

Answer:- It means where there are two or more GL, we need to post the entry by FB50 & it also
impacts the books of accounts.
For example:- Bank Charges Account Dr
To Bank
Technical Questions/Operation Round/Manager Round
Question 51:-Do you participate in month End Activities?

Answer:- Yes, I participate at various month end activates that is starting from 25th of every month
& end at 15th of the next month. During this tenure, we have to prepare various reports &
reconciliation like Bank Reconciliation, Passing the prepaid entries, Accruals, Preparing
Amortization sheet, maintain the tracker of Accruals, Prepare the Cost Center Report, Inter
Company Reconciliation, Debtor Report & Creditor Report.

25th Mail to Every Department & Pass the GL To GL Entry, Tracker Main
30th:- Accruals
31st:- Prepaid Entries & Tracker
01st:- Reconciliation to Bank
Technical Questions/Operation Round/Manager Round
Question 52:- What do you mean by Analysis of ledger?

Answer:- In analysis of ledger, we need to analysis the ledger of two or more months to check
whether the transactions posted are correct or not. For example In case of Rent, we need to
extract the ledger of two months to check whether the amount seems same or not. In case of any
incorrect entry by the AP team, we need to highlight it & get it rectified. We also put our remarks
as well.

Question 53:- How do you prepare the data at Month End Closing?

Answer:- First on 25th of every month, i write a mail to every department regarding the submission
of accruals invoice. On the basis of the data, we have to maintain it in Excel tracker & pass the
entries accordingly.

In the same way, after checking the prepaid excel tracker, we have to pass the recurring entry. We
also maintain reports of various ledgers like creditors report, Debtors Report, Cost Center reports
Inter Co Reco.
Technical Questions/Operation Round/Manager Round
Question 54:- What is MIS Reporting & what type of Report do you prepare?

Answer:- MIS means management information system, any report that we need to prepare it in
excel, have to share with the management is called MIS Reporting. We prepare various reports
like Cost Center Reports, Debtors, Creditors, analysis of ledger etc.

Question 55:- How comfortable are you in Excel?

Answer:- I am very much comfortable in Excel, Even i prepare the files without mouse.

I am normally using basic operation to advanced including Vlookup, Sumif, Countif, If Conditions,
Pivot Tables, Macro etc.

Question 56:- How will you rate yourself out of 10?

Answer:- 7.5 to 8 because Excel is very wide & it is very difficult to cover the entire excel.
Technical Questions/Operation Round/Manager Round
Question 57:- What is Macro?

Answer:- Macro is used to record the function, create the shortcut of it & use it accordingly.
Where there is a repetitive task in excel, we record that function & create a shout cut that saves
our time.

Question 58:- What is Vlookup?

Answer:- Vlookup is used to retrieve the data from the range of cells based on Column No.
=vlookup(Lookup Value,Table array, Column No, 0)

Question 59:- What is the drawback of Vlookup?

Answer:- The drawback of vlookup is when we have the duplicate data then vlookup gives you the
first result rather than second.

Question 60:- What is the substitute of VLookup?

Answer:-Index Match
Technical Questions/Operation Round/Manager Round
Question 61:- What is Sumif?

Answer:- Sumif is used to add all the number in a range of cells based on criteria
=sumif(Range,creteria,Sumrange)

Question 62:- How many line items have you worked on?

Answer:- 15000 to 20000 line items.

Question 63:- What is Amortization?

Answer:- Amortization means breaking of any intangible assets into further periods for example
prepaid Expense.

Question 64:- What is difference between FBL3N & FS10?

Answer:- FBl3N is used for GL line item Display where we can see the debit & credit entry of a
ledger while FS10N is used to display the account balance where we see the total debit & credit for
a particular period.
Technical Questions/Operation Round/Manager Round
Question 65 :- What is Difference Between GL & Cost Center?

Answer:- GL is used for a External Reporting like P&L & B/s & Cost Center is used for a Internal
reporting and Cost Center is always assigned to the Indirect Expense.

Cost Center is used to allocate the cost of the company as per department wise.

Question 66: What is the T Code to reverse the wrong Entry?

Answer: FB08 is used to reverse the Entry in SAP.

Reversals are of two types:-

Reversal of Open Item Reversal of Cleared Item

FB08 FBRA
Technical Questions/Operation Round/Manager Round
Question 67:- How to reverse the Entry by FB08?

Answer:- We go to FB08, Enter the doc No, Co Code & FY Then we also need to mention the
reversal reason & Click on display before reversal & Save it.

Question 68:- How do you clear the Ledger?

Answer:- There is a T Code F-03 that is used to clear the General Ledger.

Question 69:- Why do we need to clear the GL?

Answer:- We need to clear the GL Account just to clear the books of accounts. Every knoff Entry
should come in Cleared Items.
Technical Questions/Operation Round/Manager Round
Question 70:- What is your daily routine?

Answer:- Since i am in Indian Shift, So my day starts at 10 Morning, with reconciling the bank, i
daily reconcile two bank & it take around 2 hours to complete it. For the open items in Bank
reconciliation we need to coordinate with the cross functional teams/Other Department & update
it. Apart from the bank reconciliation, we also pass the GL to GL entry in SAP. We also prepare
various reports like Cost Center Report, Prepaid report, analysis of ledger, reconciliation of various
ledgers of P&L & B/s etc.

Question 71:- What is reclass Entry?

Answer:- Reclass entry means rectifying the ledger to make it correct.

Question 72:- What is Accrued Revenue?

Answer:-Accrued revenue is revenue that has been earned by providing a good or service, but for
which no cash has been received. Accrued revenues are recorded as receivables on the balance
sheet to reflect the amount of money that customers owe the business for the goods or services
they purchased.
Technical Questions/Operation Round/Manager Round
Accrued Income Account Dr---B/s Assets
To Income Account

Question 73:- What is unearned Income?

Answer:- Unearned Income means the income that is not earned from work. It includes Interest on
saving account, financial prize, dividends etc.

Bank Account Dr
To Unearned Income Account---Current Liability

Question 74:- What is the difference between Amortization & Depreciation?

Answer:-
Amortization:- means expenses for intangible assets Example Prepaid Expense
Deprecation:- means expenses for tangible assets Example Fixed Assets
Amortization:- directly reduces the asset in the balance sheet
`
Technical Questions/Operation Round/Manager Round
Expense Account Dr
To Prepaid Expense Account

Deprecation:- indirectly reduces the assets via Accumulated Dep

Depreciation Account Dr
To Accumulated Depreciation Account

Question 75:- What is the difference between Provision & Reserve?

Answer:-Provision is the amount that we set aside to cover the future liability For Example:-
Provision for doubtful debt, Provision for taxation etc.

Reserves are made to give strength to the financial position of the company.
For Example:-Reserves are general reserve, workmen compensation fund etc.

Question 76:- What are the types of financial statements?

Answer:- Balance sheet, Income Statement, Cash Flow Statement, Statement of shareholder
equity.
Technical Questions/Operation Round/Manager Round
Question 77:- What is accounting principles?

Answer:-Accounting principles are the rules and guidelines that companies and other bodies must
follow when reporting financial data.

Question 78:- What is R2R Cycle?

Answer:-
1) Recording:-Record the transaction that have the financial impact as per accounting principle

2) Closing Cycle:- Close the books of accounts & block the period in terms of no entry would be
posted in the said period.

3) Consolidation:- means combining assets, liabilities and other financial terms of two or more
entity into one.

4) Reporting:-Submission of financial data to the stakeholders, to the govt etc.

Technical Questions/Operation Round/Manager Round
Question 79:- What is Recurring entry?

Answer:- Recurring entry means the entry that we need to pass at a regular interval of time.

Question 80:- We have taken the services from vendor on 01st April 2023 of 12000 & vendor
submit the bill on 01 Oct 2023 for full Year. Pass necessary Journal Entry.

01 April 2023 to 30 Sep 2023

Expense Account Dr 6000
To Accruals Account 6000

01 Oct 2023
Expense Account Dr 6000 (01 April to 30 Sep )
Prepaid Expense Dr 6000 (01 Oct to 31 March)
To Vendor Account 12000

Vendor Account Dr 12000

To Bank 12000
Reverse the said entry of accruals.
Technical Questions/Operation Round/Manager Round
Question 81:- What is your KPIs (Key Performance Indicators)?

Answer:- My KPIs are:-

1) To Prepare the Bank Reconciliation on time without any fail.

2) To Ensure prepaid expense need to transfer every month end.
3) To prepare data of Accruals & Amortization.
4) To write mail to every department on every 25th of the Month.
5) To record the transaction on time.
6) To Prepare reports at every month end as per SLA.

Questions 82:- What are your KRAs (Key Result Area)?

Answer:-
1) I Prepared the bank reconciliation as per SLA & get the open item closed.
2) I Posted the accounting entry on time
3) I Prepared the data of Accruals & Amortization at every month end
4) I Prepared Reports like Cost Center, Debtor & Creditor as per SLA
Technical Questions/Operation Round/Manager Round
Question 83:- What is SLA (Service Level Agreement)

Answer:- SLA means Service Level Agreement. It is a agreement between the company & the client
to perform the task at the specified time.

Question 84:- What is Trail Balance & What is the T Code to Check the Trail Balance in SAP?

Answer:- A Trial Balance is a statement prepared at the end of a financial year to depict the debit
or credit balances of all ledger accounts.

T Code is S_ALR_87012277

Question 85:- What is Internal & External Audit?

Answer:-External audits are independent assessments of a company's financial information and

records, while internal audits review a company's operations and processes
Technical Questions/Operation Round/Manager Round
Question 86:- Who Provide you the data of Inter company?

Answer:- The R2R team of the subsidiary of the company provides the data to us.

Question 87:- What is Capital Expenditure?

Answer:-The capital expenditure is the money spent by a firm to acquire assets or to improve the
quality of the existing one for example purchasing a new building or any assets.

Question 88:- What is Revenue Expenditure?

Answer:- Revenue expenditure is the money spent by business entities to maintain their everyday
operations for example paying rent, Salaries etc
Technical Questions/Operation Round/Manager Round
Question 89:- What is the Journal Entry of the Deferred Revenue Expenditure?

Answer:- The first entry at the time of payment would be

Advertisement Account Dr 6,00,000/-

To Bank Account 6,00,000/-

At the Year end, the entry would be:-

Deferred Revenue Expenditure Account Dr 1,50,000/----B/s Assets Side

To Advertisement Account 1,50,000/-

Question 90:- What is deferred Revenue & Expenses?

Answer:-Deferred Revenue means is an advance payment a company receives for product or

services that are to be delivered or performed in future.

Deferred Expense means the expense that have been paid but not yet incurred by the business.
SquNik

Interview Questions-HR
HR Round

Question:- Introduce yourself, brief yourself, Walk me through your resume,

Go through your resume, I am interested to know about you, your qualification, Education,
experience etc.

Answer:-
Name:- Hi , I am Rahul
Live:- I stay in Faridabad at Sector 11
Qualification:- I Completed my graduation from MD University
Experience:- I have a total experience of 2 Years
Currently i am working with ABC ltd As an accounts Executive (designation)
& my
Job Responsibilities:- responsibilities are:-

IT Skills:- I am working on SAP & have good knowledge excel.

Family Background:- So far as my family background in concerned,

My father is a businessman & my mother is a house wife,
I have one brother & one Sister.

Strength:- Positivity, Willing to learn new things, Punctuality, Discipline

are some of the trait of my personality.
Question 2:- Why are you looking for a Job Change?

Answer:- For the sake better Opportunity & skill development, I am looking for Job Change.

OR
For the sake better opportunity & enhancing my area of domain (Profile),i am looking for a Job Change

OR

For Personal & Professional Development, i am looking for a Job Change.

Question 3:- Where do you see yourself after 5 Years?

Answer:- After 5 years, I will see myself as an AM or TL in this organization.

OR

After 5 years, I will see myself as TL with important Profile.

Question:- 5 What is your Short term goal?

Answer:- Google it

Question :- 6 What is your long term goal?

Answer:- Google it

Question 7:- What is your current CTC (Cost to Company)/Salary?

Answer:- 3.1 lakh per annum==26000 per month or Whatever your salary is.

Question 8:- Is this a fixed salary or is there any variable part/Incentive involved in it?

Answer:-Its all fixed or with variable, Whatever it is

Question 9:- Do you get your salary in Bank or in Hand?

Answer:- In Bank or Cash, Whatever it is.

Question 10:- Do you have the pay slips & appointment Letter with you?

Answer:- Yes I have

Question 11:- What is your expectations?

Answer:-My expectations is 4.5 to 4.8 lakh per annum

Or

30% hike from the current one.

Question 12:- Is it negotiable?

Answer:- Yes it is

Question 13 :- What is your notice Period?

Answer:- It’s 15 Days or Whatever it is

Question 14:- Is it negotiable?

Answer:- Yes it is

Question 15:- Are your ready to work in US Shift? (5:30 Pm to 2:30 AM)

Answer:- Yes i am comfortable/Flexible.

Question 16:- Did you ever try in Genpact before?

Answer:- No

Question 17:- What is your weakness?

Answer:- Google it.

1. I cant say NO to anybody/any work:- but at the same it hampers my work as well.

2. I can do 2 work Simultaneously:- but sometimes it affects my accuracy.

Question 18:- How much is your total experience?

Answer:- I have a total experience of 2 Years or Whatever your experience is

Question 19:- How much is your relevant experience?

Answers:- Same 2 Years

Question 20:- Is there any deduction from your salary?

Answer:- No its all fixed (No PF Deduction) or Whatever it is

Question 21:- Why should i hire you?

Answer:- With reference to my job Profile I satisfy all the requirement for this job. I have a 2 experience
in R2R that is the key requirement for this Job. My Excel Expertise make me different from other & being
a young one i can accommodate in any shift & stretch as per the process requirement.

Question 22:- Why do you want to Join Accenture/Genpact?

Answer:- Its a well know brand & provides great facilities & environment to its employees. It will be a
privilege for me to work with such a brand as everyone want to be a part of it.
SquNik

Thank You