Top 30 Accounting Interview Questions and Answers

The transition from a classroom to a corporate desk is often blocked by one major hurdle: the interview. For many graduates, the "fresher" tag feels like a weight, making them feel underprepared when facing experienced hiring managers. However, the secret to success isn't just knowing accounting—it’s knowing how to communicate that knowledge professionally.

In this guide, we break down the Top 30 Accounting Interview Questions and Answers to help you navigate the Accounting Interview Process Explained from start to finish.

Phase 1: Behavioral & Introductory Questions

The interview usually begins with "soft" questions to test your confidence and communication.

1. Tell me about yourself.

• Answer: Focus on your "Corporate-Ready" status. "I am a trained accountant specializing in Tally Prime and GST compliance. Through intensive practical training at Ready Accountant, I’ve mastered real-world filing and financial reporting, allowing me to contribute to a team immediately without the typical fresher learning curve."

2. Why did you choose accounting as a career?

• Answer: "Accounting is the language of business. I enjoy the logic of balancing books and the challenge of using financial data to help a company grow."

3. Where do you see yourself in five years?

• Answer: "I aim to be a Senior Accountant or Finance Manager, having mastered complex taxation and corporate strategy."

4. What are your greatest strengths?

• Answer: "My attention to detail and my ability to use Advanced Excel to automate repetitive tasks, saving the department time."

5. How do you handle pressure or tight deadlines (like month-end closing)?

• Answer: "I prioritize tasks using a checklist and ensure all reconciliations are done weekly so that the month-end process is smooth and error-free."

Phase 2: Fundamental Technical Questions

These questions test your core academic knowledge.

6. What are the three golden rules of accounting?

• Answer:

  • Real Account: Debit what comes in, Credit what goes out.

  • Personal Account: Debit the receiver, Credit the giver.

  • Nominal Account: Debit all expenses/losses, Credit all incomes/gains.

7. Explain the difference between Accounts Payable (AP) and Accounts Receivable (AR).

• Answer: AP is money the company owes to vendors (a liability). AR is money owed to the company by customers (an asset).

8. What is a Trial Balance and why is it important?

• Answer: It is a statement that lists all ledger balances. It ensures that total debits equal total credits, proving mathematical accuracy.

9. What is the "Matching Principle"?

• Answer: It requires that expenses incurred during a period be recorded in the same period as the related revenues.

10. What is an Accrual?

• Answer: An accounting entry where revenue or expenses are recorded even if no cash has changed hands yet.

Phase 3: Tax & Compliance (GST & TDS)

In today's market, you must understand taxation to be "Ready."

11. What is the difference between GSTR-1 and GSTR-3B?

• Answer: GSTR-1 is for reporting outward sales, while GSTR-3B is a summary return for declaring tax liability and claiming Input Tax Credit (ITC).

12. What is Input Tax Credit (ITC)?

• Answer: It allows a business to reduce the tax it has already paid on inputs from the tax it must pay on output.

13. Explain TDS (Tax Deducted at Source).

• Answer: It is a system where the person making a payment (like salary or rent) deducts a portion of tax and deposits it with the government on behalf of the recipient.

14. What is Reverse Charge Mechanism (RCM)?

• Answer: Usually, the seller pays tax. Under RCM, the buyer becomes liable to pay the tax directly to the government.

15. What are the standard GST slabs in India?

• Answer: Currently, the slabs are 0%, 5%, 12%, 18%, and 28%.

Phase 4: Software & Practical Skills (Tally & Excel)

Companies want to know if you can actually use the tools of the trade.

16. What is a Contra Entry in Tally Prime?

• Answer: It is used for internal cash-bank movements, such as depositing cash into a bank or withdrawing cash for office use (Shortcut: F4).

17. How do you perform Bank Reconciliation (BRS) in Tally?

• Answer: By using the 'Banking' utility to match the company's book dates with the actual bank statement dates.

18. What is a Pivot Table in Excel?

• Answer: A tool used to summarize, analyze, and explore large datasets instantly.

19. Explain VLOOKUP and its importance.

• Answer: VLOOKUP searches for a value in one column and returns data from another. It is vital for reconciling two different lists of data.

20. What is the purpose of 'Group' in Tally?

• Answer: Groups are used to categorize ledgers. For example, all bank accounts are grouped under "Bank Accounts" for clear financial reporting.

Phase 5: Advanced Accounting Concepts

21. What is Depreciation?

• Answer: The systematic allocation of the cost of a tangible asset over its useful life.

22. What is the difference between a Balance Sheet and P&L?

• Answer: A P&L shows performance over a period, while a Balance Sheet shows the financial position at a specific point in time.

23. What is a Deferred Tax Asset?

• Answer: An item on a balance sheet that results from overpaying taxes or paying taxes in advance.

24. What is Working Capital?

• Answer: Current Assets minus Current Liabilities. It shows the company's short-term financial health.

25. What is a "Fictitious Asset"?

• Answer: Assets that have no physical existence or real value but are shown in the books, such as preliminary expenses.

Phase 6: The "Experience" Gap Questions

26. How do you ensure your work is error-free?

• Answer: "I perform regular self-audits and use Excel formulas to cross-check totals between ledgers and the trial balance."

27. What would you do if a ledger doesn't balance?

• Answer: "I would check for transposition errors, look for unposted entries, and verify the opening balances."

28. Are you familiar with Statutory Audit?

• Answer: "Yes, I understand the documentation required for auditors, including vouchers, bank statements, and tax challans."

29. What is a 'Journal Voucher' used for?

• Answer: It is used for non-cash transactions like depreciation, adjustments, and corrections.

30. Why should we hire you instead of an experienced candidate?

• Answer: "I bring the most up-to-date knowledge of 2026 compliance standards. I am trained specifically to be 'Ready' from Day 1, meaning you save time and money on training while getting someone who is technically proficient."

Accounting Interview Process Explained

The Accounting Interview Process Explained usually follows a three-step journey. First is the Screening Round, where HR checks your basic communication and degree background. Second is the Technical Round, which is the most critical. Here, you will be tested on Tally, Excel, and Tax laws. Finally, the HR/Managerial Round focuses on your cultural fit and salary expectations. Being prepared for all three is what separates a student from a professional.

Conclusion

Mastering these Top 30 Accounting Interview Questions and Answers is your first step toward a successful career. However, reading about it is only half the battle. To truly "Remove your Fresher Tag," you need the practical hands-on experience that modern firms demand.

At Ready Accountant, we don't just teach you how to pass an interview; we turn you into a Certified Corporate Accounting professional. Our curriculum is designed to make you an expert in Taxation (Income Tax & GST), while also providing advanced knowledge in SAP FICO (Finance & Controlling). Don't let your degree sit idle—get the skills that make you the top choice for any employer.