1.

Suppose you are an accounts Coordinator of this Company, Your Managing

Director want to know the actual bank and Cash balance in a certain date,
how you can provide the actual balance to the Managing Director? What is
the required documents you should have to place to the MD for proved that
what you have shown thats correct? Do you know the process of Balancing?
Answer: Through bank reconciliation Statement.
Required Docs: Cash Book, Bank Book, Cheque Book, Cheque issue register,
Bank Account statement and Bank reconciliation Statement.
Balancing: Having completion the accurate entries of received Receipt and
Payments of a particular date than comes to a balance.
2. What is difference between Assets and Liabilities? What is the indication of a
successful business? What is depreciation? Why depreciation is required for a
Limited company?
Assets: The main difference between assets and liabilities is that assets provide a
future economic
benefit, while liabilities present a future obligation.
An indicator of a successful business is one that has a high proportion of
assets to liabilities.
Depreciation is the assigning or allocating of a plant asset's cost to expense
over the accounting periods that the asset is likely to be used.
To get actual assets value for the company and also to calculate the profit /
loss.

3. You know this is the Consultancy Company; Company is receiving and making
payment from and to the different parties, does any party need deduction of
payment? Why? What is rate of VAT and AIT to be deducted for Local
Consultancy Company? What is retention money?
Answer: The Paying Party / payment authority must have to deduct the VAT and
Tax.
-To follow the rules and procedure of Govt. and to participate to the Govt. revenue
for development.
-Normally for local company the deduction rate of VAT and AIT is 15% and 10%.

-Payment for a service or product that is withheld pending the completion of some
specified condition. For example, when a manufacturing business purchases
production machinery from a supplier, they might withhold some percentage of

payment due as retention money until the machines are successfully installed and
operational.
4. What is Budget? What are the main points to be considered to prepare a
budget for an old consultancy company? What are main the head of
expenditure for a limited company?
Answer: Budget is a plan of Resource allocation for a period of time.
-Sources of income and Head of expenditure
-Office Rent, Utilities, Directors Honorium, Staff members Salary etc.
5. What is the process to issue and Advance and Adjustment?
Answer: To be submit a formal advance request, having approval the same
from the appropriate authority then it will be process for advance and before
adjustment have to check that submitted documents are correct and justified
as per accounting policy.
6. What is difference between bill and voucher? What is voucher?
-Bill is a claimed doc by the Vendor and when the bill is approved for payment
then it comes to a voucher.
- Voucher is a supporting Document of the payment.
7. I think you know the audit process. Could you pls. explain us the functions of
Auditees?
Ans= Auditee is responsible to ensure and explain to the Auditors about the
quarry that are correctness of the expenditure and documentations.
8. Last questions suppose you have received a bill from a Stationery supplier.
What is the process to make the payment?
Ans=Have to check the ordered materials are received correctly as per
quality and quantity, recorded in the stock register correctly, approval for
payment from the authority and to be paid as per company policy /
requirement.
9. What do you mean by conflict of interest?
Ans=
-A situation that has the potential to undermine the impartiality of a person
because of the possibility of a clash between the person's self-interest and
professional interest or public interest.
A situation in which a party's responsibility to a second-party limits its
ability to discharge its responsibility to a third-party.
10.I think you have experience in the area of procurement, Can you tell us the
procurement process?

Answer=
1. Requirement identification
2. Determining procurement method
3. Procurement planning and strategy development
4. Procurement requisition processing
5. Solicitation documents preparation and publication
6. Pre-bid/proposal meeting and site visit
7. Bid/proposal submission and opening
8. Bid/proposal evaluation
9. Contract award recommendation
10. Contract negotiations
11. Contract Award (signing)
11.What is 5 R ?
Right time, quality, quantity, price, source
12.What is BEP?
-Where company has no loss or gain in a certain point.
13.Have you any questions to know from this board related to your position.

Company A's bank statement dated Dec 31, 2015 shows a balance of $24,594.72. The company's
cash records on the same date show a balance of $23,196.79. Following additional information is
available:
1

Following checks issued by the company to its customers are still outstanding:
No. 846 issued on Nov 29

$320.00

No. 875 issued on Dec 26

49.21

No. 878 issued on Dec 29

275.00

No. 881 issued on Dec 31

186.50

A deposit of $400.00 made on Dec 31 does not appear on bank statement.

An NSF check of $850 was returned by the bank with the bank statement.

The bank charged $50 as service fee.

Interest income earned on the company's average cash balance at bank was $1,237.22.

The bank collected a note receivable on behalf of the company. Amount received by the
bank on the note was $550. This includes $50 interest income. The bank charged a
collection fee of $10.

A deposit of $430 was incorrectly entered as $340 in the company's cash records.

Prepare a bank reconciliation statement using the above information.

Solution:

Company A
Bank Reconciliation
December 31, 2011
Balance as per Bank, Dec 31
Add: Deposit in Transit
Less: Outstanding Checks:
No. 846 issued on Nov 29
No. 875 issued on Dec 26
No. 878 issued on Dec 29
No. 881 issued on Dec 31

$24,594.72
400.00
$24,994.72
$320.00
49.21
275.00
186.50
830.71
$24,164.01

Adjusted Bank Balance

Balance as per Books, Dec 31
Add:
Interest Income from Bank
Note Receivable Collected by Bank
Interest Income from Note Receivable
Deposit Understated

$23,196.79
$1,237.22
500.00
50.00
90.00
1,877.22
$25,074.01

Less:
NSF Check
Bank Service Fee
Bank Collection Fee
Adjusted Book Balance

850.00
50.00
10.00
910.00
$24,164.01