Q1.What is the meaning of TDS? How it is charged?
Answer:
TDS Meaning :
TDS means TAX DEDUCTABULE AT SOURCE. It is charged on Base Amount.
TDS is tax charged by the customer who gets the services from Vendor or supplier. Here Customer is responsible to charge it and pay to the government.
Different types of TDS :
1) TDS on salary has to be deducted on salary paid to employee by employer if it crosses the tax limit. And pay to the government on or before due date.
2) In case of TDS on contractors or profession or others, there is slab that min tax, surcharge, education cess plus higher education cess, it is different and finance minister may change or keep same or remove in every year budget. Secondly you can deduct the TDS on bill amount while paying or if advance is paid.
Q2.Explain End to End AP Process?
Answer:
Accounts payable has got noting to do with purchase of goods and services, it’s work is to pay the eligable invoices.
End to End Process of AP
– Process the vendor invoices into system
– Work and resolve the discripencies of the invoices (if any)
– Make the payments to the invoices as per the agreement
– Resolve the issues ( if any ) regarding the invoice payments
Q3:What is a Non-PO Invoice?
Answer:
A non-po is an invoice which does not have po(purchase order).However, these invoices requires approval for authorized person/persons to process for payment.
Q4.What is the difference between debenture and preference share ?
Answer:
The difference between Debentures and Preferential Shares is as follows:
1) Person holding debentures has owed money to a company, while Preferential Shareholder could be considered as a partial owner of the company.
2) A Preference shareholder earns dividends if the company is making profits, however a debenture holder needs to be paid irrespective of making profits or losses.
3) A debenture holder would be paid the capital invested at the end of a stipulated term. A preference shareholder is not promised return of capital invested; instead he earns dividends till the time the company exists and is profitable.
4) A debenture holder earns interest on the capital invested till the capital is not returned, while a preference shareholder is paid dividends till the time the company exists.
Q5:What is the Debit Balance recovery? How we can recover if we wont have any future transactions from supplier?
Answer:
The Debit balance recovery is usually made by raising a credit memo for the regular vendors. However if there are no future transactions from the supplier, we ask the vendor to send the check / make an EFT for the amount due from him.
When payment is made to the wrong vendor or payment made in excess, in that case overpayment has gone to the vendor, So for us it is vendor debit balance.
For debit balance recovery, we can either follow-up with the vendor to send us the excess amount / refund back, or we can adjust that extra amount in future invoices submitted by that vendor
In Case no future transactions, we have to follow-up with the vendor, falling whicch we have to write off this amount.
Account payable interview questions and answers pdf
