Are you a fresher preparing for an accounting interview in India? Whether you’re applying for a junior accountant role, an accounting assistant position, or even a trainee Chartered Accountant (CA) role, knowing what to expect in an interview can give you a huge confidence boost.
We’ve compiled a comprehensive list of 36 accounting interview questions and answers that cover the basics, technical topics, and advanced concepts. This guide is student-oriented, conversational, and includes real-life examples, Indian salary data (2024–2025), and useful internal links to help you plan your career.
Accounting Interview Questions and Answers
1. Why did you choose accounting as a profession?
Answer: Show passion for numbers, logical thinking, and career goals.
Example:
“I have always enjoyed working with numbers and analyzing data. Accounting allows me to contribute to a company’s financial health and make strategic decisions. This role will help me grow professionally while applying my analytical skills effectively.”
2. What are the different types of accounting?
Answer:
- Financial Accounting: Tracks and reports business transactions.
- Administrative Accounting: Focuses on planning and resource management.
- Tax Accounting: Ensures compliance with tax regulations.
- Cost Accounting: Measures production costs for efficiency.
- Management Accounting: Helps strategic and operational decision-making.
Example:
“During my internship, I helped prepare cost reports for production, which improved inventory management and reduced wastage.”
3. Which accounting software are you familiar with? Which is the best?
Answer: Mention your experience and learning ability.
Example:
“I’ve used Tally ERP 9, Zoho Books, and Microsoft Excel. I’m learning QuickBooks because of its user-friendly interface and advanced reporting features.”
4. What is GST?
Answer:
Goods and Services Tax (GST) is a single indirect tax implemented on July 1, 2017, replacing VAT, excise, and other taxes.
5. What is VAT?
Answer:
Value Added Tax (VAT) is levied on the added value of goods or services at each stage of production.
6. What are the key financial statements in accounting?
- Income Statement: Revenues, expenses, gains, losses.
- Balance Sheet: Assets, liabilities, equity snapshot.
- Cash Flow Statement: Cash inflows and outflows.
- Statement of Changes in Equity: Capital, reserves, dividends.
7. Why do you want to join this company?
Answer: Highlight alignment with company values and your career goals.
Example:
“I am impressed by your company’s focus on digital accounting solutions, which aligns with my interest in ERP systems and process automation.”
8. What is double entry?
Answer: Every financial transaction has two sides: debit and credit.
Example: Buying office supplies with cash: debit office supplies, credit cash.
9. What is a debit and credit note?
Answer:
- Debit note: Informs an account will be debited.
- Credit note: Informs an account will be credited.
10. How do you prepare a balance sheet?
Answer: Post journal entries → update ledger → tally accounts → ensure Assets = Liabilities + Equity.
Example: During my internship, I used Tally ERP 9 to prepare year-end balance sheets for multiple departments.
11. What is a bank reconciliation statement?
Answer: Compares cash book and bank statement to identify differences.
Factors affecting reconciliation:
- Cheques issued but not presented
- Bank interest not recorded
- Dishonoured cheques
12. Difference between depreciation and amortisation
- Depreciation: Tangible assets (machinery, computers).
- Amortisation: Intangible assets (patents, goodwill).
13. How are accounting and auditing different?
- Accounting: Records daily transactions.
- Auditing: Verifies accuracy of recorded transactions.
14. GAAP and Indian Accounting Standards
- GAAP: Internationally accepted principles (FASB).
- Ind AS: Indian Accounting Standards set by ICAI.
15. Suggest ways to improve working capital flow
Answer: Manage inventory, collect receivables promptly, optimize cash.
Example: Internship experience: Reduced stock holding by 15%, improved working capital turnover.
16. Factors affecting cash flow
- Operating activities: daily sales and expenses
- Investing activities: asset purchases/sales
- Financing activities: loans, equity
Example: Manufacturing firms’ cash flow depends on production schedules and receivables collection cycles.
17. Contingent liability and bad debt
- Contingent liability: Possible future obligation, not recorded in the balance sheet.
- Bad debt: Uncollectible receivable written off.
18. What is cost accounting?
Answer: Tracks production/service costs to determine pricing and profitability.
19. Internal controls and their importance
Answer: Policies to safeguard assets, ensure accurate records, and prevent fraud.
20. How is automation affecting accounting?
Answer: Reduces manual data entry, improves accuracy, and frees accountants for analysis.
Example: Automated payroll reduced processing errors by 20% during my internship.
21. Define balance sheet
A statement listing assets, liabilities, and capital at a specific point in time.
22. What does Tally accounting mean?
ERP software used for accounting, payroll, inventory, and reporting.
23. Difference between capital and revenue transactions
- Capital: Long-term investments (machines, land)
- Revenue: Day-to-day business operations
24. Meaning of working capital
Current assets minus current liabilities.
25. Meaning of premises in accounting
Fixed assets shown in the balance sheet.
26. Basic accounting equation
Assets = Liabilities + Owners’ Equity
27. Retail banking
Financial services provided to individual customers.
28. Trade bills
Documents generated against business transactions.
29. Dual aspect concept
Every transaction affects two accounts.
Example: Purchase of stock: Cash decreases (credit), Inventory increases (debit).
30. Compound entries
Journal entries with multiple debits and credits, e.g., payroll deductions, multiple expenses in supplier invoices.
31. Inactive vs dormant accounts
- Inactive: Closed permanently
- Dormant: Temporarily inactive, can be used later
32. Fictitious assets
Non-physical assets like goodwill, patents, or rights.
33. General ledger account
Maintains records for specific account types like assets, liabilities, income, and expenses.
34. Marginal cost
Cost of producing one additional unit of product.
35. Overhead
Indirect business expenses like rent, utilities, salaries.
36. Deferred tax liability
Future tax obligation due to current accounting transactions.
3. Indian Salary Data (2024–2025)
| Role | Experience | Average Salary (INR/year) |
|---|---|---|
| Junior Accountant | 0–2 yrs | 2.4–3.6 L |
| Accounting Assistant | 0–3 yrs | 2.8–4.2 L |
| Chartered Accountant (CA) | 0–5 yrs | 6–12 L |
| Finance Analyst | 1–4 yrs | 4–7.5 L |
| Payroll Executive | 0–3 yrs | 3–4.8 L |
| Senior Accountant | 5+ yrs | 5–9 L |
Key Takeaways
- Be confident, clear, and conversational in interviews.
- Use examples from internships or projects whenever possible.
- Learn about Indian accounting standards (Ind AS, GST, VAT).
- Familiarity with software like Tally, Zoho Books, or QuickBooks is highly recommended.
- Review basic concepts, working capital, financial statements, and dual aspects before an interview.
With over a decade of experience in talent acquisition, strategic workforce planning, and compliance-driven recruitment, Suraj has a deep understanding of the HR landscape — from emerging gig models to enterprise-level staffing solutions. His expertise lies in translating complex hiring challenges into actionable, scalable strategies that drive both performance and retention.
What truly sets Suraj apart is his critical thinking approach to solving hiring bottlenecks. Whether it’s identifying inefficiencies in the recruitment pipeline or designing adaptive hiring frameworks, he applies structured reasoning, behavioral analysis, and market intelligence to deliver sustainable solutions.
Beyond recruitment, Suraj is passionate about bridging the gap between business intelligence and human potential, fostering data-backed HR strategies that empower organizations to make smarter hiring decisions.
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