Finance and Accounting Interview Questions (India, 2026)
Finance and accounting interviews test whether your basics are solid. Whether you're a B.Com fresher, a CA, an MBA in finance, or an experienced accountant, expect questions on the three financial statements, journal entries, Indian taxes like GST and TDS, and Excel. Analyst roles add valuation and financial modelling.
Quick answer: Finance and accounting interviews in India usually cover the golden rules of accounting, the three financial statements and how they link, journal entries, depreciation, working capital, GST and TDS basics, bank reconciliation, Excel skills, and for analyst roles, ratios and valuation methods like DCF.
Accounting basics
What are the golden rules of accounting?
- Personal account: debit the receiver, credit the giver.
- Real account: debit what comes in, credit what goes out.
- Nominal account: debit all expenses and losses, credit all incomes and gains.
What's the difference between accrual and cash accounting?
Accrual accounting records revenue and expenses when they're earned or incurred. Cash accounting records them when cash is received or paid. Most companies use accrual.
What are the three financial statements, and how are they linked?
The profit and loss statement shows revenue, expenses and profit over a period. The balance sheet shows assets, liabilities and equity at a point in time. The cash flow statement shows cash from operating, investing and financing activities. Net profit from the P&L flows into retained earnings on the balance sheet and is the starting point of the cash flow statement under the indirect method.
Pass a journal entry for goods purchased on credit
Purchases account debit, supplier (creditor) account credit. If GST applies, input GST is also debited.
What is depreciation, and what are the common methods?
Depreciation spreads the cost of a fixed asset over its useful life. Common methods are straight line (equal amount each year) and written down value (a fixed percentage of the reducing balance).
Working capital and ratios
What is working capital?
Current assets minus current liabilities. It shows whether a business can meet its short-term obligations.
Ratios to know
- Current ratio: current assets / current liabilities.
- Quick ratio: (current assets minus inventory) / current liabilities.
- Debt to equity: total debt / shareholders' equity.
- ROE: net profit / shareholders' equity.
- Gross and net profit margin.
- Receivable days and payable days.
Be ready to interpret them, not just define them.
GST and TDS basics
What is input tax credit under GST?
It's the GST paid on purchases that a registered business can set off against the GST it collects on sales, subject to conditions such as the supplier filing their returns.
Difference between CGST, SGST and IGST?
For a sale within a state, CGST and SGST are charged. For a sale between states, IGST is charged.
What is TDS?
Tax deducted at source. The payer deducts tax at prescribed rates when making certain payments (such as salary, rent, professional fees or contractor payments) and deposits it with the government.
Rates and thresholds change, so mention you'd confirm current rates rather than quoting from memory if unsure.
Practical questions
- How do you prepare a bank reconciliation statement?
- What's your month-end closing process?
- Which accounting software have you used? (Tally, Zoho Books, SAP, QuickBooks)
- How do you handle a mismatch between the ledger and the bank statement?
Excel for finance
- VLOOKUP or XLOOKUP, SUMIFS, pivot tables.
- Building a simple budget vs actual report.
- Basic financial functions: NPV, IRR, PMT.
Financial analyst questions
Walk me through a DCF
Project free cash flows for several years, estimate a terminal value, discount everything back to today using the weighted average cost of capital, and subtract net debt to get equity value. Divide by shares outstanding for a per-share value.
What valuation methods do you know?
DCF, comparable company analysis (trading multiples like EV/EBITDA and P/E), and precedent transactions.
If depreciation increases by 100, how do the three statements change?
With a 25 percent tax rate as an example: operating profit falls by 100, net profit falls by 75. On the cash flow statement, net profit is down 75 but you add back depreciation of 100, so cash is up 25 because of lower tax. On the balance sheet, fixed assets are down 100, cash is up 25, and retained earnings are down 75, so it balances.
Behavioural questions
- Tell me about a time you found an error in the accounts.
- How do you manage deadlines during audit or month-end?
- Describe a time you explained financial data to a non-finance person.
Prepare with the STAR method.
If you tend to blank on definitions under pressure, SilentlyAI can show a suggested answer on your screen during a video interview when you ask for it.
Frequently asked questions
What questions are asked in an accounting interview for freshers?
Golden rules of accounting, journal entries, the three financial statements, depreciation, GST and TDS basics, bank reconciliation, and Tally or Excel skills.
What is the difference between a financial analyst and an accountant interview?
Accountant interviews focus on bookkeeping, taxes, compliance and closing. Financial analyst interviews add ratios, forecasting, modelling and valuation.
How do the three financial statements link?
Net profit from the P&L flows into retained earnings on the balance sheet and starts the cash flow statement. Cash at the end of the cash flow statement matches cash on the balance sheet.
Should I learn Tally or Excel for accounting jobs?
Both are useful. Tally or similar software is common in Indian small and mid-sized firms. Excel is used everywhere for analysis and reporting.
