↑
waytosimple
  • Accounting
  • Tally ERP9
  • Tax
  • Payroll
  • SAP FICO
  • Digital Marketing
  • Must Know
  • Services
  • E-Books
  • 0 items₹0.00

Accounts Payable Interview Questions and Answers

What is accounts payable?

 

Accounts payable are amounts a company owed to its suppliers for goods and services purchased on credit. The payable amount shown on the company’s balance sheet as a current liability under sundry creditors.

 

 

What is accounts payable process?

 

  • Purchase requisition
  • Purchase order
  • Goods receive
  • Inspect goods
  • Invoice receive and verification
  • Release payment
  • Make payment
  • Reconciliation

 

 

What you will consider before making of payment?

 

Need to consider below points before making payment to vendor/supplier.

  • To whom the payment is made to
  • Payment against which order or bill
  • Payment terms and conditions
  • Whether payment is due or over due
  • Any charges or taxes to be deducted
  • Need to check availability of funds in the bank
  • Payment through check/ NEFT/Wire

 

 

What is wire transfer?

 

Wire transfer is electronic payment method to transfer funds from one bank account to another bank account through SWIFT.

 

 

What you will consider to approve an invoice for payment?

 

Before making payment to invoice or bill, the following details should be considered.

  • Whether goods are received as per the purchase order or not
  • Need to check whether any damaged goods are received
  • Need to verify the purchase order with vendor invoice
  • Need to check whether any advance payment made
  • If any discount allowed by supplier for early payment
  • Check the bank balance before making payment

 

 

What is the difference between Consigner and Consignee?

 

Consigner is the owner of the goods and who take responsibility to deliver the goods to the consignee.

 

Consignee is the party who receives the goods and not owner of the goods. Most of the cases consignee is the buyer of the goods.

 

 

What is the entry when Rs.50,000 of goods are purchased?

 

Purchase A/c Dr – 50,000

CGST A/c Dr – 4,500

SGST A/c Dr – 4,500

To Vendor A/c – 59,000

 

 

What is 3 way matching?

 

The 3 way match will help to avoid paying incorrect payments.

  • Match invoice price with purchase order price
  • Match quantity billed by supplier with ordered quantity
  • Quantity received

 

 

What is a trade discount?

 

Trade discount is reduction from whole goods value, example it is given by the manufacturer to the retailer based on volume of purchases of goods like, 30% or 40% discount.

 

 

What is an early payment discount?

 

As per the terms and conditions mentioned in the purchase order supplier allow discount to buyer when payment made by the buyer before the due date.

 

Example, ABC company sold Rs.20,000 worth of goods to X company and payment terms are 30 days from the date of invoice. ABC company allowed 5% discount to X company, if payment is made within 10 days from the date of invoice.

 

 

What are some examples of current liabilities?

 

Current liabilities are liabilities to the company that may expect to pay within one year from the reporting date. These current liabilities will appear on the company’s balance sheet. The following are the some examples of current liabilities.

 

Accounts payable

 

Interest payable

 

Salaries payable

 

Short term loans

 

Income tax payable

 

Payroll tax payable

 

Other accrued expenses

 

 

 

 

Related Pages

  • Accounting Interview Questions and Answers
  • Tally ERP9 Interview Questions and Answers
  • Fixed Assets Interview Questions and Answers
  • TDS Interview Questions and Answers
  • Employee Provident Fund Questions and Answers
  • Goods and Service Tax (GST) Questions and Answers
  • Home
  • Contact Us
  • Disclaimer
  • Privacy Policy
  • E-Books

Copy Right © 2023 waytosimple.com All Rights Reserved.