Samarth Accounting Services

  An interview was going on in a company for the post of Accountant. A candidate appeared for the interview and the Accounts Manager of the company was taking the interview. The Accounts Manager asked following question to the candidate. Accounts Manager: Can you tell me what will be the journal entry for goods distributed as free samples? Candidate: Yes Sir, it will be Sales Promotion Expenses A/c Dr. To Closing Stock   Accounts Manager: Why do you think that closing stock should be credited? Candidate: Because the distributed goods will be taken from stock. Accounts Manager: No, you are wrong. The correct entry will be Sales Promotion Expenses A/c Dr. To Purchases   In the above case, the answer given by the candidate was wrong. Many candidates appearing for the interview for Accountant’s position don’t know simple entries of finalization. A talented accountant is the one who has complete knowledge of finalization. Therefore, accountants should always ...