Accounting & Tally Certificate Exam Preparation — Top 150 Questions & Answers 2026
BeInCareer · Accounting & Tally Certificate Prep
Accounting & Tally Certificate Exam Preparation — Top 150 Questions & Answers 2026
📚 150+ Questions
Accounting Fundamentals
Tally Software
GST & Taxation
This Accounting & Tally Certificate exam preparation guide has 150+ questions and answers to help you pass the BeInCareer test. Covers all 3 sections of the 15-minute AI-powered Accounting & Tally Certificate exam.
Exam Overview
Test Duration15 Minutes
Sections3 Topics
Q&A in This Guide150+
DifficultyBeginner–Intermediate
CertificateFree + Verifiable
📓
Section 1
Accounting Fundamentals
~50 Questions
~50 Questions
💻
Section 2
Tally Software
~50 Questions
~50 Questions
🏭
Section 3
GST & Taxation Basics
~50 Questions
~50 Questions
💡 Accounting & Tally Certificate Exam Preparation Guide
This Accounting & Tally Certificate exam preparation guide covers all topics tested. This Accounting & Tally Certificate exam preparation material is divided into 3 sections — Accounting Fundamentals, Tally Software, and GST & Taxation. Read each question carefully and try to answer before looking at the answer. Focus especially on journal entry rules, types of accounts, Tally voucher types, GST rates, and GSTR filing — these are most commonly tested in the Accounting & Tally Certificate exam preparation test. After studying all 150 questions, take the free test at beincareer.in/certification.php?t=accounting-tally.⚠️ Exam Tips
The BeInCareer Accounting & Tally test is 15 minutes. Read each question carefully — some options are very similar. Don't spend too long on one question — move on and come back. Brush up on Golden Rules of Accounting and Tally shortcut keys — commonly tested areas.🤖 BeInCareer Genie
Take the free Accounting & Tally Certificate test now — 15 minutes, instant result, verifiable certificate!
SECTION 1
📓 Accounting & Tally Certificate Exam Preparation — Accounting Fundamentals
50 Questions — Double Entry, Journal, Ledger, Trial Balance, P&L, Balance Sheet
Q1What is accounting?
ANSAccounting is the process of recording, classifying, summarising, and interpreting financial transactions of a business to help stakeholders make informed decisions.
Q2What is the Double Entry System of accounting?
ANSThe Double Entry System states that every financial transaction has two effects — a debit in one account and a corresponding credit in another account of equal amount. It was introduced by Luca Pacioli.
Q3What are the three types of accounts in accounting?
ANSThe three types of accounts are: Personal Account (relating to persons, firms, companies), Real Account (tangible and intangible assets), and Nominal Account (expenses, incomes, losses, gains).
Q4What is the Golden Rule for Personal Account?
ANSDebit the receiver, Credit the giver. Example: If cash is received from Ramesh, Ramesh's account is credited.
Q5What is the Golden Rule for Real Account?
ANSDebit what comes in, Credit what goes out. Example: When machinery is purchased, Machinery account is debited.
Q6What is the Golden Rule for Nominal Account?
ANSDebit all expenses and losses, Credit all incomes and gains. Example: Salary paid is debited; commission received is credited.
Q7What is a Journal?
ANSA Journal is the book of original entry where all financial transactions are recorded in chronological (date-wise) order with debit and credit entries and a narration.
Q8What is a Ledger?
ANSA Ledger is the principal book of accounts where all journal entries are posted account-wise. It shows the complete record of transactions for each individual account.
Q9What is a Trial Balance?
ANSA Trial Balance is a statement that lists all ledger account balances to check the arithmetic accuracy of the books. The total of debit balances must equal total of credit balances.
Q10What is the purpose of a Trial Balance?
ANSThe Trial Balance is prepared to verify that the total debits equal total credits, to detect arithmetic errors, and as a basis for preparing financial statements.
Q11What is a Balance Sheet?
ANSA Balance Sheet is a financial statement that shows the financial position of a business on a specific date. It lists Assets on one side and Liabilities + Capital on the other side. Both sides must be equal.
Q12What is Profit & Loss Account?
ANSThe Profit & Loss Account (P&L) is a financial statement that shows all incomes and expenses of a business for a specific period to determine net profit or net loss.
Q13What is the difference between Capital Expenditure and Revenue Expenditure?
ANSCapital Expenditure is money spent on acquiring fixed assets (machinery, building) that give benefit for more than one year. Revenue Expenditure is day-to-day expenses (rent, salaries) consumed within one accounting year.
Q14What is Depreciation?
ANSDepreciation is the gradual reduction in the value of a fixed asset due to wear and tear, passage of time, or obsolescence. It is charged as an expense in the P&L account.
Q15What are the two main methods of Depreciation?
ANS1. Straight Line Method (SLM) — Fixed amount depreciated every year. 2. Written Down Value Method (WDV) — Depreciation charged on the reduced balance each year. WDV is also called Diminishing Balance Method.
Q16What is Bank Reconciliation Statement (BRS)?
ANSBRS is a statement prepared to reconcile the difference between the cash book balance and the bank passbook balance on a given date. Differences arise due to cheques issued but not presented, deposits not credited, bank charges, etc.
Q17What are Current Assets?
ANSCurrent Assets are assets that can be converted into cash within one year. Examples: cash, bank balance, debtors, stock, prepaid expenses, short-term investments.
Q18What are Fixed Assets?
ANSFixed Assets (Non-current assets) are long-term assets used in business operations for more than one year. Examples: land, building, machinery, furniture, vehicles.
Q19What is the difference between Debtors and Creditors?
ANSDebtors are persons who owe money to the business (customers who bought on credit). Creditors are persons to whom the business owes money (suppliers who gave goods on credit). Debtors are assets; creditors are liabilities.
Q20What is Working Capital?
ANSWorking Capital = Current Assets − Current Liabilities. It represents the funds available for day-to-day operations of the business. Positive working capital means the business can meet short-term obligations.
Q21What is a Contra Entry?
ANSA Contra Entry is a transaction that affects both the Cash Account and Bank Account simultaneously. Example: Cash deposited into bank — Cash Account is credited and Bank Account is debited. It is marked with "C" in the cash book.
Q22What is the Accounting Equation?
ANSAssets = Liabilities + Capital (Owner's Equity). This fundamental equation always holds true and forms the basis of the Balance Sheet.
Q23What is Goodwill in accounting?
ANSGoodwill is an intangible asset representing the reputation, customer loyalty, and brand value of a business. It is recorded in the books only when a business is purchased and the purchase price exceeds the net asset value.
Q24What is the difference between Trading Account and P&L Account?
ANSTrading Account shows Gross Profit or Gross Loss from buying and selling goods (sales − cost of goods sold). P&L Account starts with Gross Profit and deducts all operating expenses to arrive at Net Profit or Net Loss.
Q25What is a Narration in Journal entry?
ANSA Narration is a brief explanation written below each journal entry that describes the nature of the transaction. It is written in brackets and starts with "Being..." Example: (Being salary paid for the month of March).
Q26What is Cash Flow Statement?
ANSA Cash Flow Statement shows the inflows and outflows of cash during a period. It is classified into three activities: Operating Activities (day-to-day business), Investing Activities (buying/selling assets), and Financing Activities (loans, dividends).
Q27What is Accrual Basis of Accounting?
ANSUnder Accrual Basis, revenues are recorded when earned and expenses when incurred — regardless of when cash is actually received or paid. This is the standard basis for accounting under GAAP and Ind AS.
Q28What is Cash Basis of Accounting?
ANSUnder Cash Basis, revenues are recorded only when cash is received and expenses only when cash is paid. It is simpler but less accurate than accrual basis. Used mainly by small businesses and individuals.
Q29What is Outstanding Expense?
ANSOutstanding Expense is an expense that has been incurred during the accounting period but not yet paid. Example: salary for March not yet paid on March 31. It is shown as a current liability in the Balance Sheet.
Q30What is Prepaid Expense?
ANSPrepaid Expense is a payment made in advance for a benefit not yet received. Example: insurance premium paid for next year. It is shown as a current asset in the Balance Sheet.
Q31What is Accrued Income?
ANSAccrued Income is income that has been earned during the accounting period but not yet received. Example: interest on FD earned but not received. Shown as a current asset in Balance Sheet.
Q32What is Deferred Income?
ANSDeferred Income (Unearned Income) is income received in advance for goods or services not yet delivered. Example: rent received in advance. It is shown as a current liability in the Balance Sheet.
Q33What is Stock Valuation? Which methods are used?
ANSStock Valuation is the method used to assign a value to inventory. Main methods: FIFO (First In First Out — oldest stock sold first), LIFO (Last In First Out), and Weighted Average Method. In India, FIFO and Weighted Average are most commonly used.
Q34What is the Conservatism Principle in accounting?
ANSThe Conservatism (Prudence) Principle states: anticipate no profit but provide for all possible losses. Example: creating provision for bad debts even before they occur. It ensures financial statements are not overstated.
Q35What is Provision for Bad Debts?
ANSProvision for Bad Debts is an estimated amount set aside from profits to cover the possibility that some debtors may not pay. It is charged to P&L account and deducted from debtors in the Balance Sheet.
Q36What is the Going Concern Concept?
ANSGoing Concern Concept assumes that the business will continue to operate indefinitely into the future. Therefore, assets are recorded at cost and not at liquidation value.
Q37What is the Matching Concept?
ANSThe Matching Concept states that all expenses incurred to earn revenues in a period must be matched and recorded in the same accounting period as those revenues — regardless of when cash is paid.
Q38What is Net Profit?
ANSNet Profit = Gross Profit − All Operating Expenses (salaries, rent, depreciation, etc.) + Other Incomes. It is the final profit after all expenses are deducted from all incomes.
Q39What is Gross Profit?
ANSGross Profit = Net Sales − Cost of Goods Sold (COGS). It is the profit earned from buying and selling goods before deducting operating expenses.
Q40What are Current Liabilities?
ANSCurrent Liabilities are obligations that must be paid within one year. Examples: creditors, bills payable, outstanding expenses, bank overdraft, short-term loans.
Q41What is a Debit Note?
ANSA Debit Note is a document sent by the buyer to the seller when goods are returned (purchase return). It informs the seller that their account has been debited. It is also issued when the buyer was undercharged.
Q42What is a Credit Note?
ANSA Credit Note is issued by the seller to the buyer when goods are returned (sales return) or when the buyer was overcharged. It informs the buyer that their account has been credited.
Q43What is the difference between a Bill of Exchange and a Promissory Note?
ANSA Bill of Exchange is drawn by the creditor and accepted by the debtor — involves three parties (drawer, drawee, payee). A Promissory Note is written by the debtor promising to pay — involves two parties (maker and payee).
Q44What is Capital Account?
ANSCapital Account records the owner's investment in the business. It is increased by capital introduced and profits, and decreased by drawings and losses. It is shown on the liability side of the Balance Sheet.
Q45What are Drawings?
ANSDrawings are amounts withdrawn by the owner from the business for personal use — either cash or goods. Drawings reduce the capital of the owner. Journal entry: Drawings A/c Dr, Cash/Goods A/c Cr.
Q46What is a Subsidiary Book?
ANSSubsidiary Books are special journals that record specific types of transactions. Examples: Purchase Book (credit purchases), Sales Book (credit sales), Purchase Return Book, Sales Return Book, Cash Book, Bills Receivable Book.
Q47What is a Three Column Cash Book?
ANSA Three Column Cash Book has three columns on each side — Cash, Bank, and Discount. It records all cash and bank transactions along with discounts allowed and received, replacing both Cash Account and Bank Account in the ledger.
Q48What is Petty Cash Book?
ANSPetty Cash Book records small day-to-day expenses like postage, stationery, and refreshments. A fixed amount (Imprest Amount) is given to the petty cashier who records all small payments and gets reimbursed at the end of the period.
Q49What is meant by "Books of Accounts"?
ANSBooks of Accounts include all records maintained by a business: Journal, Ledger, Cash Book, and Subsidiary Books. Under the Companies Act 2013, businesses must maintain books of accounts for 8 years.
Q50What is the difference between Assets and Liabilities?
ANSAssets are resources owned by the business that have economic value (cash, machinery, debtors). Liabilities are obligations owed by the business to outsiders (loans, creditors). Assets = Liabilities + Capital.
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SECTION 2
💻 Tally Software — Accounting & Tally Certificate Exam Preparation
50 Questions — Company Creation, Ledger, Vouchers, Inventory, Reports, Shortcuts
Section 2 of this Accounting & Tally Certificate exam preparation guide focuses on Tally software. These 50 Tally questions are the most important part of the Accounting & Tally Certificate exam preparation — memorise the shortcut keys especially.
Q51What is Tally?
ANSTally is accounting software developed by Tally Solutions Pvt. Ltd., Bengaluru. It is used for accounting, inventory management, GST filing, payroll, and financial reporting. Tally Prime is the latest version as of 2026.
Q52What is the shortcut key to create a Company in Tally?
ANSPress Alt + F3 to open Company Info menu, then select "Create Company". In Tally Prime, go to Gateway of Tally → Create Company.
Q53What is a Ledger in Tally?
ANSA Ledger in Tally is an account head under which transactions are recorded. Every transaction must have at least two ledgers (debit and credit). Ledgers are grouped under pre-defined Groups like Capital Account, Current Assets, etc.
Q54How do you create a Ledger in Tally?
ANSGo to Gateway of Tally → Accounts Info → Ledgers → Create. Enter the ledger name, select the group it belongs to, and save. Shortcut: Alt + C while in a voucher to create a ledger on the fly.
Q55What are Groups in Tally?
ANSGroups in Tally are pre-defined categories under which ledgers are classified. Examples: Capital Account, Loans (Liability), Fixed Assets, Current Assets, Current Liabilities, Sales Accounts, Purchase Accounts, Direct Expenses, Indirect Expenses.
Q56What are the types of Vouchers in Tally?
ANSMain voucher types in Tally: Payment (F5), Receipt (F6), Journal (F7), Sales (F8), Purchase (F9), Contra (F4), Debit Note (Alt+F5), Credit Note (Alt+F6), Stock Journal (Alt+F7).
Q57When is a Payment Voucher used in Tally?
ANSPayment Voucher (F5) is used when cash or bank payments are made. Example: salary paid, rent paid, bills paid. The cash/bank ledger is credited and the expense ledger is debited.
Q58When is a Receipt Voucher used in Tally?
ANSReceipt Voucher (F6) is used when cash or cheque is received. Example: cash received from a customer, rent received. Cash/bank ledger is debited and the income/debtor ledger is credited.
Q59When is a Contra Voucher used in Tally?
ANSContra Voucher (F4) is used for transactions between Cash and Bank accounts only. Examples: cash deposited into bank, cash withdrawn from bank (ATM), transfer between bank accounts.
Q60When is a Journal Voucher used in Tally?
ANSJournal Voucher (F7) is used for non-cash transactions that don't involve cash or bank directly. Examples: depreciation entry, provision for bad debts, adjustment entries, opening balance entries.
Q61What is a Sales Voucher in Tally?
ANSSales Voucher (F8) is used to record all sales transactions — both cash and credit. It generates the sales invoice. The Sales ledger is credited and Cash/Debtor ledger is debited. GST is automatically calculated if configured.
Q62What is a Purchase Voucher in Tally?
ANSPurchase Voucher (F9) is used to record all purchase transactions — cash and credit. The Purchase ledger is debited and Cash/Creditor ledger is credited. Input GST (ITC) is captured automatically when configured.
Q63What is a Debit Note voucher in Tally?
ANSDebit Note (Alt+F5) is used to record Purchase Returns — when goods purchased are returned to the supplier. It reverses the purchase entry and generates a debit note document for the supplier.
Q64What is a Credit Note voucher in Tally?
ANSCredit Note (Alt+F6) is used to record Sales Returns — when goods sold are returned by the customer. It reverses the sales entry and generates a credit note document for the customer.
Q65How do you view Balance Sheet in Tally?
ANSGo to Gateway of Tally → Balance Sheet. It shows Assets on one side and Liabilities + Capital on the other. Press Alt+F1 for detailed view. Press F2 to change the date period.
Q66How do you view Profit & Loss Account in Tally?
ANSGo to Gateway of Tally → Profit & Loss A/c. It shows all incomes and expenses and the resulting net profit or loss for the selected period. Press F2 to change period, Alt+F1 for detailed view.
Q67What is Stock Item in Tally?
ANSStock Item in Tally represents the individual products or goods that are bought and sold. Each stock item has a name, unit of measurement, rate, and opening quantity. Go to Inventory Info → Stock Items → Create.
Q68What is a Stock Group in Tally?
ANSStock Group is used to group similar stock items together for easy reporting and management. Example: Electronics, Furniture, Stationery can be separate stock groups with individual items under each.
Q69What is a Unit of Measure in Tally?
ANSUnit of Measure (UOM) in Tally defines how a stock item is measured — kg, litre, metre, piece (nos/pcs), box, etc. It must be created before creating stock items. Go to Inventory Info → Units of Measure → Create.
Q70How do you enable GST in Tally?
ANSGo to Gateway of Tally → F11 (Features) → Statutory & Taxation → Enable GST → Yes. Enter GSTIN, state, and applicable tax rates. After enabling, GST details can be set for each ledger and stock item.
Q71What is GSTIN in Tally?
ANSGSTIN (Goods and Services Tax Identification Number) is a 15-digit unique number assigned to every GST-registered business. In Tally, it is entered during company creation and used in all GST invoices and returns.
Q72How do you generate a GST Invoice in Tally?
ANSCreate a Sales Voucher (F8) with GST-enabled ledgers. Tally automatically calculates CGST and SGST (or IGST for interstate) based on the HSN/SAC code and tax rate configured for the item. Print the voucher as a Tax Invoice.
Q73What is the shortcut key to save a voucher in Tally?
ANSPress Ctrl+A to accept and save a voucher in Tally. Press Escape to cancel without saving. In Tally Prime, click Save or press Ctrl+A.
Q74What is the shortcut to delete a voucher in Tally?
ANSOpen the voucher and press Alt+D to delete it. You need to confirm deletion. Note: some vouchers linked to other entries cannot be deleted directly.
Q75What is the shortcut to change the Voucher Date in Tally?
ANSPress F2 to change the date in a voucher or report in Tally. You can enter the date in DD-MM-YYYY format.
Q76What is a Cost Centre in Tally?
ANSCost Centre in Tally is used to allocate expenses and incomes to specific departments, projects, or individuals. Example: tracking expenses for Sales Department vs. Admin Department separately.
Q77What is a Budget in Tally?
ANSTally allows you to create budgets for ledger groups and compare actual figures with budgeted figures. Go to Accounts Info → Budgets → Create. Useful for monitoring overspending.
Q78What is Bank Reconciliation in Tally?
ANSGo to Gateway of Tally → Banking → Bank Reconciliation or through the bank ledger. Enter the bank statement dates for cheques that have been cleared. Tally shows the reconciled and unreconciled amounts.
Q79What is a Day Book in Tally?
ANSDay Book in Tally shows all vouchers entered on a particular day in chronological order. Go to Gateway of Tally → Display → Day Book (or D → D). It is useful for daily review of entries.
Q80What is Tally Vault?
ANSTally Vault is a security feature in Tally that encrypts company data with a password. Once Tally Vault is set, the company data cannot be accessed without the Vault password — even by Tally support.
Q81What is the shortcut to open a company in Tally?
ANSPress F3 to select or switch between companies in Tally. Press Alt+F3 to open Company Info menu (create, alter, delete company).
Q82What is Payroll in Tally?
ANSTally Payroll module handles employee salary processing — salary structure, attendance, PF, ESI, TDS deductions, and salary slips. Enable payroll at F11 → Payroll Features → Enable Payroll → Yes.
Q83What is a Memorandum Voucher in Tally?
ANSMemorandum Voucher is used to record tentative or uncertain transactions that are not yet confirmed. These do not affect account balances and do not appear in regular reports. They can be converted to regular vouchers later.
Q84What is Optional Voucher in Tally?
ANSAn Optional Voucher is a voucher that is saved but not posted to accounts. It does not affect any balance. Useful for draft entries. Press Ctrl+L to mark a voucher as Optional in Tally.
Q85What is a Post-Dated Voucher in Tally?
ANSPost-Dated Voucher is a voucher entered with a future date. It does not affect current balances until that date arrives. Press Ctrl+T to mark a voucher as Post-Dated in Tally.
Q86How do you export data from Tally?
ANSPress Alt+E in any report to export. Tally supports export in formats: Excel (.xlsx), PDF, JPEG, HTML, XML, SDF, and ASCII. Useful for sharing reports or filing returns.
Q87What is ODBC in Tally?
ANSODBC (Open Database Connectivity) in Tally allows other applications like MS Excel, Access, or third-party software to directly access Tally data in real time for analysis and reporting.
Q88What is a Trial Balance report in Tally?
ANSGo to Gateway of Tally → Display → Trial Balance. It lists all ledger accounts with their debit or credit balances. The total of debits must equal total of credits. Used to check arithmetic accuracy.
Q89What is the difference between Tally ERP 9 and Tally Prime?
ANSTally Prime is the upgraded version of Tally ERP 9 with a new interface, easier navigation (Go To feature), multi-tasking, and improved GST features. Tally Prime replaced Tally ERP 9. The shortcut keys and core concepts remain largely the same.
Q90What is the "Go To" feature in Tally Prime?
ANS"Go To" is a search feature in Tally Prime that lets you navigate anywhere in Tally by typing the name. Press Alt+G to open Go To. Example: type "Balance Sheet" and press Enter to open it directly.
Q91What is Stock Summary in Tally?
ANSStock Summary in Tally shows the current stock position of all items — quantity on hand, rate, and total value. Go to Gateway of Tally → Stock Summary (or Inventory Summary in Tally Prime).
Q92What is a Voucher Type in Tally?
ANSVoucher Type defines the category of a voucher (Payment, Receipt, Sales, Purchase, etc.). You can also create custom voucher types in Tally. Go to Accounts Info → Voucher Types → Create.
Q93What is TDS in Tally?
ANSTDS (Tax Deducted at Source) in Tally allows you to configure TDS deduction for applicable payments. Enable at F11 → Statutory → Enable TDS → Yes. Tally auto-deducts TDS while recording Payment vouchers for applicable ledgers.
Q94What is the shortcut to print a voucher or report in Tally?
ANSPress Alt+P to print any voucher or report in Tally. In Tally Prime, use the Print button or Ctrl+P. You can configure printer settings, number of copies, and paper size before printing.
Q95What is the shortcut to quit Tally?
ANSPress Ctrl+Q to quit Tally without saving current changes. Press Escape to go back one screen. From Gateway of Tally, press Q or Ctrl+Q to exit.
Q96How is GST Return generated in Tally?
ANSGo to Gateway of Tally → GST → GSTR-1 or GSTR-3B. Tally automatically populates the return based on sales and purchase vouchers entered. Export to JSON format for uploading to the GST portal (gstin.gov.in).
Q97What is Narration in Tally voucher?
ANSNarration in Tally is a brief description entered below a voucher to explain the transaction. Press Ctrl+A after entering narration to save. Narrations appear in Day Book and Ledger reports for easy identification.
Q98What is a Ledger Statement in Tally?
ANSLedger Statement shows all transactions for a specific ledger account in a period — opening balance, all debits and credits, and closing balance. Go to Display → Account Books → Ledger and select the ledger.
Q99What is an Account Payable in Tally?
ANSAccounts Payable in Tally refers to amounts owed to creditors (suppliers). Creditor ledgers are created under the Sundry Creditors group. The Outstanding Payables report shows all pending payments to suppliers.
Q100What is an Account Receivable in Tally?
ANSAccounts Receivable in Tally refers to amounts owed by debtors (customers). Debtor ledgers are created under the Sundry Debtors group. The Outstanding Receivables report shows all pending collections from customers.
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SECTION 3
🏭 GST & Taxation — Accounting & Tally Certificate Exam Preparation
50 Questions — GST & Taxation for Accounting & Tally Certificate exam preparation — CGST, SGST, IGST, GSTR-1, GSTR-3B, ITC, TDS, TCS
The GST and Taxation section of the Accounting & Tally Certificate exam preparation guide covers 50 essential questions. Mastering these GST concepts is critical for passing the Accounting & Tally Certificate exam.
Q101What is GST?
ANSGST (Goods and Services Tax) is a comprehensive indirect tax levied on the supply of goods and services in India. It replaced multiple taxes like VAT, Service Tax, Excise Duty, etc. GST was implemented on 1st July 2017.
Q102What are the components of GST?
ANSGST has three components: CGST (Central GST — collected by Central Government), SGST (State GST — collected by State Government) for intrastate transactions, and IGST (Integrated GST — collected by Centre) for interstate transactions.
Q103What is the difference between CGST, SGST, and IGST?
ANSFor intrastate supply (within the same state): CGST + SGST applies. For interstate supply (between two states) or imports: IGST applies. IGST rate = CGST rate + SGST rate combined.
Q104What are the GST tax slabs in India?
ANSGST tax slabs: 0% (essential items — milk, vegetables, books), 5% (basic necessities), 12% (standard rate — processed foods, business class air travel), 18% (most goods and services — electronics, restaurants, IT services), 28% (luxury and sin goods — cars, tobacco, AC).
Q105What is GSTIN?
ANSGSTIN (Goods and Services Tax Identification Number) is a 15-digit unique registration number given to every GST-registered business. Format: 2-digit state code + 10-digit PAN + 1-digit entity number + 1-digit Z + 1-digit check digit.
Q106Who needs to register for GST?
ANSBusinesses with annual turnover exceeding ₹40 lakh (goods) or ₹20 lakh (services) must register for GST. In special category states (North-East), the threshold is ₹20 lakh (goods) and ₹10 lakh (services). E-commerce operators must mandatorily register.
Q107What is a Tax Invoice under GST?
ANSA Tax Invoice is a document issued by a GST-registered supplier for the sale of goods or services. It must contain: GSTIN of supplier and buyer, invoice number and date, HSN/SAC code, taxable value, GST rate, and CGST/SGST/IGST amount.
Q108What is HSN Code?
ANSHSN (Harmonized System of Nomenclature) Code is a 6-8 digit code used to classify goods for GST purposes. Every good sold under GST must have an HSN code on the invoice. Businesses with turnover above ₹5 crore must use 6-digit HSN codes.
Q109What is SAC Code?
ANSSAC (Service Accounting Code) is a 6-digit code used to classify services for GST purposes — similar to HSN for goods. Every service invoice must mention the SAC code. Example: IT services — SAC 998314.
Q110What is Input Tax Credit (ITC)?
ANSInput Tax Credit (ITC) is the GST paid on purchases that can be used to reduce GST payable on sales. Example: If you pay ₹1,800 GST on raw materials and collect ₹3,600 GST on sales, you pay only ₹1,800 (₹3,600 − ₹1,800) to the government.
Q111What are the conditions to claim ITC?
ANSConditions to claim ITC: 1. Must be a GST-registered taxpayer. 2. Must have a valid tax invoice or debit note. 3. Goods/services must be used for business. 4. Supplier must have filed returns and paid GST. 5. Must be claimed within the due date.
Q112What is GSTR-1?
ANSGSTR-1 is the monthly or quarterly return that contains details of all outward supplies (sales) made by a registered taxpayer. Due date: 11th of the following month for monthly filers. Quarterly filers: last day of the month after the quarter.
Q113What is GSTR-3B?
ANSGSTR-3B is a monthly self-declaration summary return showing total sales, ITC claimed, and tax payable/paid. It must be filed by 20th of every month. Tax must be paid by the same date to avoid interest and penalties.
Q114What is GSTR-2A?
ANSGSTR-2A is an auto-populated, read-only return that shows all inward supplies (purchases) as reported by your suppliers in their GSTR-1. It helps you verify ITC eligibility. It cannot be edited by the buyer.
Q115What is the GST portal website?
ANSThe official GST portal is www.gst.gov.in. It is used for GST registration, filing returns (GSTR-1, GSTR-3B), paying taxes, viewing ITC, generating e-way bills, and downloading GST certificates.
Q116What is Reverse Charge Mechanism (RCM) in GST?
ANSUnder Reverse Charge Mechanism (RCM), the recipient of goods or services (instead of the supplier) is liable to pay GST to the government. Example: a registered company purchasing from an unregistered supplier must pay GST under RCM.
Q117What is an E-Way Bill?
ANSE-Way Bill is an electronic document required for the movement of goods worth more than ₹50,000 from one place to another. Generated on the E-Way Bill portal (ewaybillgst.gov.in). It has a validity of 1 day per 100 km.
Q118What is the Composition Scheme under GST?
ANSThe Composition Scheme is for small businesses with turnover up to ₹1.5 crore (₹75 lakh for some states). They pay GST at a flat rate (1% for traders, 5% for restaurants, 6% for service providers) and file quarterly returns instead of monthly.
Q119What is TDS (Tax Deducted at Source)?
ANSTDS is a mechanism where the payer deducts tax at the time of making certain payments (salary, rent, professional fees, interest) and deposits it with the government on behalf of the payee. Governed by the Income Tax Act.
Q120What is TDS on salary?
ANSTDS on salary is deducted by the employer every month based on the employee's estimated annual income and applicable income tax slab. It is deducted under Section 192 of the Income Tax Act and deposited by the 7th of the following month.
Q121What is Form 16 in TDS?
ANSForm 16 is a TDS certificate issued by the employer to the employee at the end of the financial year. It shows total salary paid and TDS deducted. It is used by employees to file their Income Tax Returns (ITR).
Q122What is Form 26AS?
ANSForm 26AS is an annual tax statement available on the Income Tax portal that shows all TDS deducted on your income by various deductors (employer, bank, etc.), advance tax paid, and self-assessment tax paid. It can be downloaded from incometax.gov.in.
Q123What is TCS (Tax Collected at Source)?
ANSTCS is tax collected by the seller from the buyer at the time of sale of specified goods or services (alcohol, timber, scrap, minerals, foreign remittances above ₹7 lakh). The seller collects and deposits TCS with the government.
Q124What is PAN and why is it required in accounting?
ANSPAN (Permanent Account Number) is a 10-digit alphanumeric code issued by the Income Tax Department. It is required for all financial transactions above prescribed limits, filing ITR, GST registration, opening bank accounts, and TDS deductions.
Q125What is the financial year in India?
ANSThe financial year (FY) in India runs from 1st April to 31st March. For example, FY 2025-26 starts on 1st April 2025 and ends on 31st March 2026. GST returns, income tax returns, and accounts are maintained based on this period.
Q126What is Income Tax?
ANSIncome Tax is a direct tax levied by the Central Government on the income of individuals, companies, and other entities. Tax rates depend on income slabs. Under the new tax regime (2024-25), rates are 5% to 30% for individuals.
Q127What are the income tax slabs for individuals (New Regime FY 2025-26)?
ANSNew Tax Regime (FY 2025-26): Up to ₹3 lakh — Nil, ₹3L–₹7L — 5%, ₹7L–₹10L — 10%, ₹10L–₹12L — 15%, ₹12L–₹15L — 20%, Above ₹15L — 30%. Income up to ₹12 lakh is effectively tax-free due to rebate u/s 87A.
Q128What is Section 80C?
ANSSection 80C of the Income Tax Act allows deductions up to ₹1.5 lakh per year on investments such as PPF, ELSS, NSC, life insurance premium, EPF, 5-year FD, and tuition fees. Only applicable under Old Tax Regime.
Q129What is the due date for filing Income Tax Return (ITR) for individuals?
ANSFor individuals (non-audit cases), the ITR due date is 31st July of the assessment year. For businesses requiring audit, the due date is 31st October. Late filing attracts penalty up to ₹5,000 under Section 234F.
Q130What is Value Added Tax (VAT)?
ANSVAT was a state-level indirect tax on the sale of goods, replaced by GST in 2017. However, VAT is still applicable on petroleum products (petrol, diesel, ATF) and liquor which are kept outside GST. Some accounting software still shows VAT settings.
Q131What is a Bill of Supply under GST?
ANSA Bill of Supply is issued instead of a Tax Invoice when GST cannot be charged — by Composition Scheme dealers, or for exempted goods/services. It looks like an invoice but does not show GST amount separately.
Q132What is the penalty for late filing of GSTR-3B?
ANSLate fee for GSTR-3B: ₹50 per day (₹25 CGST + ₹25 SGST) for tax liability. For Nil returns: ₹20 per day (₹10 CGST + ₹10 SGST). Plus 18% per annum interest on unpaid tax from the due date. Maximum late fee: ₹10,000 per return.
Q133What is the concept of "Place of Supply" in GST?
ANSPlace of Supply determines whether a transaction is intrastate (CGST+SGST) or interstate (IGST). For goods: place of supply is generally where goods are delivered. For services: location of recipient of service. It is crucial for correct GST calculation.
Q134What is the Annual Return under GST?
ANSGSTR-9 is the Annual Return under GST, filed by regular taxpayers for each financial year. It consolidates all monthly/quarterly returns filed during the year. Due date: 31st December of the following financial year.
Q135What is GST Audit?
ANSGST Audit (GSTR-9C) is required for taxpayers with annual turnover above ₹5 crore. It is a reconciliation statement between annual return (GSTR-9) and audited financial statements, certified by a Chartered Accountant or Cost Accountant.
Q136What is the QRMP scheme under GST?
ANSQRMP (Quarterly Return Monthly Payment) scheme is for small taxpayers with turnover up to ₹5 crore. They file GSTR-1 and GSTR-3B quarterly but pay tax monthly using a Fixed Sum Method (FSM) or Self-Assessment Method.
Q137What are exempted supplies under GST?
ANSExempted supplies are goods and services on which GST is not levied. Examples: fresh fruits and vegetables, milk, eggs, bread, educational services, health care services, public transportation. Suppliers of only exempt goods need not register for GST.
Q138What is the difference between Zero-Rated and Exempted supply in GST?
ANSZero-Rated supplies (exports and SEZ supplies) attract 0% GST but the supplier can claim ITC refund. Exempt supplies attract 0% GST but ITC cannot be claimed on inputs used for making exempt supplies. This is a key difference.
Q139What is TAN?
ANSTAN (Tax Deduction and Collection Account Number) is a 10-digit alphanumeric number required by entities that deduct or collect tax at source (TDS/TCS). It must be quoted in all TDS returns, challan payments, and certificates. Applied for through Form 49B.
Q140What is Advance Tax?
ANSAdvance Tax is income tax paid in instalments before the end of the financial year by taxpayers whose estimated tax liability is ₹10,000 or more. Due dates: 15th June (15%), 15th September (45%), 15th December (75%), 15th March (100%).
Q141What is Self-Assessment Tax?
ANSSelf-Assessment Tax is the tax paid by a taxpayer on their own assessment after the end of the financial year — after deducting TDS and Advance Tax already paid — before filing the ITR. Paid using Challan 280 online.
Q142What is Challan 280?
ANSChallan 280 is used to pay income tax online — Advance Tax, Self-Assessment Tax, and Regular Assessment Tax. Payment is made on the Income Tax portal (incometax.gov.in) through net banking or debit card.
Q143What is the GST Council?
ANSThe GST Council is the constitutional body that makes recommendations on GST rates, exemptions, and policies. It is chaired by the Union Finance Minister and includes Finance Ministers of all states. Decisions are made by a three-quarter majority.
Q144What is the difference between Direct Tax and Indirect Tax?
ANSDirect Tax is paid directly to the government by the person on whom it is imposed (Income Tax, Corporate Tax). Indirect Tax is collected by an intermediary (seller) and passed to the government — the burden is on the end consumer (GST, Customs Duty).
Q145What is a Credit Note under GST?
ANSUnder GST, a Credit Note is issued by the supplier to the recipient when: goods are returned, price is reduced after sale, or the original invoice had excess tax. It reduces the supplier's output tax liability and reduces the recipient's ITC.
Q146What is a Debit Note under GST?
ANSUnder GST, a Debit Note is issued by the supplier to the recipient when the price of goods or services increases after the original invoice, or if additional tax needs to be charged. It increases the supplier's output tax liability.
Q147What is the GST rate for IT services and software?
ANSIT services, software development, consulting, and most technology services attract 18% GST. Software products sold as goods attract 18% GST. Cloud computing and SaaS services also attract 18% GST in India.
Q148What is Section 194C of TDS?
ANSSection 194C covers TDS on payments to contractors and subcontractors. TDS rate: 1% for individual/HUF contractors, 2% for others (companies, firms). Applicable when single payment exceeds ₹30,000 or aggregate exceeds ₹1 lakh in a year.
Q149What is Section 194J of TDS?
ANSSection 194J covers TDS on fees for Professional or Technical Services (doctors, lawyers, CA, consultants, royalties). TDS rate: 10% (2% for technical services after 2020 amendment). Applicable when payment exceeds ₹30,000 per year.
Q150What is the penalty for not registering under GST when required?
ANSIf a business that is required to register under GST fails to do so, the penalty is 100% of the tax due (minimum ₹10,000). This is a serious offence. Additionally, the business cannot collect GST from customers or claim ITC without registration.
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🤖 AI Quick Summary
🤖 EXAM QUICK REFERENCE
Section 1 — Accounting Fundamentals: Golden Rules (Personal: Debit receiver, Credit giver | Real: Debit in, Credit out | Nominal: Debit expenses, Credit incomes) · Journal → Ledger → Trial Balance → P&L → Balance Sheet
Section 2 — Tally Software: Voucher shortcuts — F4 Contra · F5 Payment · F6 Receipt · F7 Journal · F8 Sales · F9 Purchase · Alt+F5 Debit Note · Alt+F6 Credit Note · F11 Features · Alt+G Go To
Section 3 — GST: CGST+SGST (intrastate) · IGST (interstate) · Slabs: 0%, 5%, 12%, 18%, 28% · GSTR-1 (sales, 11th) · GSTR-3B (summary, 20th) · ITC = GST on purchase used to offset GST on sales
Section 2 — Tally Software: Voucher shortcuts — F4 Contra · F5 Payment · F6 Receipt · F7 Journal · F8 Sales · F9 Purchase · Alt+F5 Debit Note · Alt+F6 Credit Note · F11 Features · Alt+G Go To
Section 3 — GST: CGST+SGST (intrastate) · IGST (interstate) · Slabs: 0%, 5%, 12%, 18%, 28% · GSTR-1 (sales, 11th) · GSTR-3B (summary, 20th) · ITC = GST on purchase used to offset GST on sales
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Disclaimer: These questions are for preparation purposes only. The actual BeInCareer Accounting & Tally Certificate test is AI-powered and questions may vary. Always verify accounting and tax information with official sources (ICAI, GST portal, Income Tax portal).
© BeInCareer 2026 · Updated September 2026 · beincareer.com