SUMMER INTERNSHIP PROJECT

“Empirical Execution of Accounting Data”

Submitted to
DAYALBAGH EDUCATIONAL INSTITUTE, AGRA

Submitted by
MANISH PACHAURI

Company Guide

CA ANSHUL
GUPTA

Faculty Guide
Mrs. VINTI SATSANGI SRIVASTAVA

FACULTY OF COMMERCE,
DAYALBAGH EDUCATIONAL INSTITUTE, Agra,
NAAC Accredited "A+" Grade Institutions

Academic Year: 2022-23

 ACKNOWLEDGEMENT

I would like to express my gratitude and appreciation to all those who gave me
the possibility to complete this summer internship project in “Smash & Co.” and
I am sincerely thankful to them for providing this opportunity to me.

I am extremely thankful to ACCA Anshul Gupta for guiding me throughout this

project and continuously encouraging me. It would not have been possible to
complete this project without his support.

I am also thankful to all the faculty members of Faculty of Commerce, Dayalbagh

Educational Institute, Agra and particularly my mentor Mrs.Vinti Satsangi
Srivastava for helping me during this project.

Finally, I am grateful to my family and friends for their unending support.

Manish Pachauri
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Sr. No. Particulars Page No.

1 Introduction 5

2 Company Profile 7

3 Terminologies 8

4 Objectives of SIP 10

5 Scope of SIP 13

6 Need of SIP 14

7 Contribution during SIP 16

8 Limitations 18

9 Research Methodology 18

10 Findings 19

11 Conclusion 20

12 Bibliography 21

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INTRODUCTION

In the present day, accountants no longer record every transaction of a company or

any corporate body with the help of pen and pencils using a ledger book. After the
birth of computers and the emergence of digitalization in most professional sectors
in India, accounting is also computerized.

For the past few decades, computerized data has been used mainly in the field of
science and technology. However, as the years go by, computerized accounting
systems are also becoming quite common.

Several accounting firms still perform book-keeping manually, while most firms
comprise financial transactions that can be a lot for a manual accounting process.
Moreover, the complicated financial transactions of a firm are quite difficult to be
recorded manually. That led to the introduction of the concept of computerized
accounting systems.

Before you learn the meaning of computerized accounting, it is important to know

about the various factors to consider before using such a system.

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Features of Computerized Accounting Systems

The characteristic features of computerized accounting systems are as follows –

a. Components of computerized accounting systems are software programs
which are installed on a company machine, network server or accessed
remotely with the help of the Internet.

b. Such a system allows accounting professionals to set up income and expense

accounts such as purchases and sales accounts, salary distribution account,
advertising expenses account, etc.

c. The process of computerized accounting systems includes programs that can

be used to manage and control bank accounts, prepare company budgets, etc.

d. Depending upon the program and how advanced it is, accountants can also
construct tax documents, handle company payroll, and manage project
expenses properly.

e. Programs in this system can be customized as per user demands. This

feature helps every accounting professional to meet the requirements of their
firm.

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 smash & co. chartered accountants
M/s S M A S H & Co, is a team of passionate professional was established in 1991.
In course of time, the firm has built a significant professional competitive presence.
With dynamic approach to render services, the firm responds to the clients' complex
business challenges with seamless service across all sectors professionally. The firm
operates from its Head Office at Surat and branch offices at Ahmedabad, Mumbai
and offers its clients a full range of services, including assurance, financial and
business advisory, tax and regulatory, and risk advisory services. The firm has a
workforce of more than 25 people in three offices across the country.

An important phenomenon of recent time is the rapid growth in the profession. The
vast changes occurring in the economy of the country have been placing great
responsibilities on the Chartered Accountants. It also constitutes a challenge to the
profession to update their knowledge and skill in their specialized fields of activity.
The firm brings together clients, offers innovative solutions and endeavours to
exceed client expectations. The firm adopts a customized, responsive and personal
approach towards client service and offers complete range of services across various
industries such as manufacturing, commercial, services, financial and public entities
in the country.

We have progressed over three decades in the business sector across diverse
dimensions and have escalated to different industrial segments. We provide an all-
inclusive agglomeration of specially designed and multidisciplinary expert services
that meet the requirements of every single need of our clients. We are defined by
our drive to make a difference. Team of our organisation consists of qualified and
experienced professionals like CA, CS, DISA, FAFD with impressive and dynamic
track records. They have the ability, capability and expertise to render and supervise
various professional services being provided by us.

MISSION :-
Becoming a leader to provide legal and financial services in economy to get
more opportunity for an organization.
Offices Contact Email
HO: SURAT, +91 9837142375 [email protected]
Branches: Mumbai,
Ahmedabad, Agra,
Delhi(NCR), Kolkata

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 TERMINOLOGIES
Bookkeeping Terminology
 Accounts Payable – Outstanding payments the company currently owes to
suppliers, vendors, and Creditors — essentially any bills the company still has
yet to pay.
 Accounts Receivable – Outstanding payments the company is currently owed
by all customers or clients. Basically, this is anything the company bills out.
 Balance Sheet – A financial document that reconciles all the company's assets
with their liabilities and equity.
 Costs of Goods Sold – The total money spent to produce goods and
services, including production, labor, storage and material costs.
 Current Assets – Capital that has immediate value (typically that which will
be used within one year), including cash, sellable products or accounts
receivable.
 Equity – All capital currently invested in the company, including any profits
that have been re-invested as retained earnings.
 Expenses – Any additional money spent operating the company that's not
associated with the production of sellable products and services. Examples
of
Expenses include office supplies, lease for the place of business and
employee wages.
 Fixed Assets – Assets with long-term value, such as land and property, tools
and machinery, or vehicles.
 General Ledger – Record of all financial transactions across all of a
company's accounts, which are maintained continuously for the entire life of
the company.
 Income Statement – All outstanding debts owed by the company. This
could include accounts payable, loans, liens on property or other long-term
investments.
 Income Tax Return- Income tax return is the form in which assessee files
information about his/her income and tax thereon to Income Tax
Department. Various forms are ITR 1, ITR 2, ITR 3, ITR 4, ITR 5, ITR 6
and ITR 7. When you file a belated return, you are not allowed to carry
forward certain losses.

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 Insurance Policy- The insurance policy is a contract between the insurer
and the policyholder, which determines the claims which the insurer is
legally required to pay. In exchange for an initial payment, known as the
premium, the insurer promises to pay for loss caused by perils covered under
the policy language.
 Liabilities – Outstanding payments the company is currently owed by all
customers or clients. Basically, this is anything the company bills out.
 Net Income – the Company’s total profit (or loss, if negative) once costs
and expenses are subtracted from revenue.
 Revenue – All incoming money from selling products and services or
generated through a company's additional assets, before expenses are taken
into account. Also referred to as "gross income."
 Reverse Charges- Reverse charge means the liability to pay tax is on the
recipient of supply of goods or services instead of the supplier of such goods
or services in respect of notified categories of supply.
 Security Coverage Ratio- Security Coverage Ratio means, at any time, the
ratio of the Security Coverage Amount at that time to the aggregate amount
outstanding under Tranche C at that time.

Terminology Used in Calculations

 Credit– An entry on a balance sheet that decreases asset values and/or

increases liability and equity values.
 Debit– An entry on a balance sheet that increases asset values and/or
decreases liability and equity values (or incoming payments).
 Return on Investment (ROI) – Used to determine how much of the money
spent producing goods and services was recouped in profits. You find ROI
by calculating a ratio of a business’s net income to total assets.
 Present Value (PV) – The amount a future sum of money is currently worth
today. Because a company can invest existing funds in order to collect interest
or ROI in the future, a particular sum of money may not be worth the same
thing now as it will be in the future. Accountants may use present value
calculations to determine the true value of sales to be paid in the future, or to
aid in investment decisions.

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 Bank Reconciliation Statement- A bank reconciliation statement is a
document prepared by a company that shows its recorded bank account
balance matches the balance the bank lists. This statement includes all
transactions, such as deposits and withdrawals, from a given timeframe.
 Cover period- The time period under which a stated thing need to be
realized.
 Tangible Net Worth- Tangible net worth is typically the net worth of a
company excluding intangible assets such as copyrights, patents, and
intellectual property. The tangible net worth calculation for a company is total
assets minus total liabilities minus intangible assets.

Types of Accountants
 Auditors– Auditors evaluate a company's financial records for accuracy,
check for mistakes and discrepancies, and some may issue evaluations of
profitability. Auditors may be internal or external (independent) of the
company being audited.
 Management Accountant– Management accountants work on a company's
internal financial records and processes to aid in business planning,
cost/revenue analysis and management of financial operations.
 Public Accountant– Public accountants — who by and large must earn
Certified Public Accountant, or CPA, status — may work with individuals or
large corporations to prepare all relevant tax and financial documents
required by the IRS.

 Chartered Accountant- Chartered Accountant is a person who holds a

professional, internationally acclaimed degree that holds proficiency in the
field of accounting. Every country has its professional body that awards the
degree after rigorous examination and prescribed years of practise.

 Forensic Accountant- Forensic accounting, forensic accountancy or

financial forensics is the specialty practice area of accounting that
investigates whether firms engage in financial reporting misconduct. Forensic
accountants apply a range of skills and methods to determine whether there
has been financial reporting misconduct.
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OBJECTIVES OF THE STUDY

 To implement my overall accounting skills practically via entering accounting

data.
 To secure a challenging position to expand my learning, knowledge, and
skills.
 To utilize my training and skills, while making a significant contribution to
the success of the company.
 To gain an experience in high-level professional corporate environment.
 It is an alternative corporate business form that offers the benefits of limited
liability to the partners at low compliance costs.
 To gain a practical experience of operating various accounting software like
Tally, Excel, Computax, Spectrum, etc.

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1. Identification and recording of transactions
The primary object of accounting is to identify the financial transactions and to
record these systematically in the books of accounts. As a result, the true nature of
each and every transaction is known without much exercise of memory.
With this end in view, the transactions are primarily recorded in general and in a
special journal and later on permanently various accounts are kept in the ledger.

2. Ascertainment of results
Every business concern is interested to know its operating results at the end of a
particular period.
The amount of profit or loss for a particular period of a business concern can be
ascertained by preparing an income statement with the help of ledger account
balances of revenue nature. Surplus or deficit of revenue for a particular period of a
non-trading concern can also be ascertained by preparing income and expenditure
account or statement.

3. Ascertainment of financial affairs

Ascertainment of debts-liabilities, property, and assets i.e. total financial affairs of
an organization at a particular date is another important object of Accounting.
Financial affairs of concern at a particular date can be ascertained by preparing a
balance sheet. The balance sheet is the statement of assets and liabilities of concern
at a particular date.

4. Keeping accounts of cash

Cash book is a prominent book of the books of accounts. Cash receipts and cash
payments are accounted for in this book. A number of daily cash receipts, payments,
cash in hand and cash at the bank can be known from this book. Fraud, forgery,
and misappropriation of money are reduced by keeping cash book scientifically
and accurately.

5. Control over assets and liabilities

For running a business successfully a businessman is to acquire various assets like
land, building, machinery, etc.
He is to face various debts and liabilities like accounts payable, notes payable,
loan, bank overdraft, etc. side by side with die acquisition of assets. The actual
position of these debts-liabilities, property, and assets can be ascertained through
the proper keeping of accounts.

 A businessman can take the right steps for controlling the quantity of assets
decrease and liability increase.
 If the entity is required to file any form/application/document, then it needs
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 to be filed in an electronic form.
 It is enhance the skill do that work in effective way it’s important for the
organization.
 Providing financial services and achieving organization goal.
 To secure employment with a reputable company, where I can utilize my skills
and business studies background to the maximum.
 A highly organized and hard-working individual looking for a responsible
position to gain practical experience.
 To make use of my interpersonal skills to achieve goals of a company that
focuses on customer satisfaction and customer experience.

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SCOPE OF STUDY

1. To provide consultancy and accounting services as per the procedures & rules
described in companies Act’1956.

2. Changes required to be incorporated for preparation of final accounts as per the

companies Act and the guidelines of ICAI required to be followed.

3. Ensuring the day to day accounting transactions of payments, receipts, sales and
purchases, other miscellaneous expenses and inventory accounting are entered in
SAP on daily basis. Working knowledge with regards to basic data entry, report
generation in SAP environment is essential.

4. Preparation, maintenance and updating of Fixed Assets Register as per the

Standard Accounting Bench marks.

5. To generate monthly trial balance including priced stores ledger, funds flow
statement and final accounts (profit and loss account, Balance Sheet quarterly, Half
Yearly and annual final accounts) along with necessary schedules as required by
the Internal Audit, Statutory Audit, Tax Audit and as per Corporate Office
Guidelines.

6. Evolve the costing system with the help of departmental staff and suggest the
suitable methods for setting up of standards for regular costing system.

7. Analysis of Debtors and creditors on daily basis and reconciliation of the same
& inter Unit accounts on monthly basis, preparation of Bank Reconciliation on
Fortnight basis in SAP environment.

8. Preparation of Half year and Annual Budget and consolidation thereof, and
analysis of variance based on actual vs. budgeted and actual vs. target.

9. Scrutinizing all ledger accounts at regular intervals in SAP environment.

10. Passing regular journal entries, making month end provisions, month end
closings and preparation of Monthly Profit and Loss account to submit the same to
Corporate Office.

11. Responsible for Statutory compliance under various acts such as Companies
Act, Income Tax Act, Central Excise, Service Tax, VAT, CST etc .

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12. Responsible for quarterly E-TDS returns and monthly VAT returns and any
other statutory returns pertaining to Finance and Accounts, as and when required.

13. Preparation and generation of Management information /reports as when

required by both local management and Corporate Office.

14. Co-ordination with Internal and Statutory auditors, providing the data for audit
and addressing audit queries / observations under the guidance of
GM/AM(F&A)/OFAs related to Finance and Accounts.

15. To suggest suitable methods and latest updating on mandatory requirements

with regards to Finance and Accounts and Taxation matters under various statutes
for smooth functioning of Finance and Accounts department.

16. Monitoring overall accounts of this Unit and suggest remedial measures
wherever lapses found.

17. All books of accounts are required to be maintained on double entry system on
accrual basis in SAP environment. The firm will be required to provide the
services to ensure preparation and finalization of unit’s accounts using SAP
environment.

18. The correctness and quality of accounts and other reports will have to be
certified by the Chartered Accountants.

19. Any other works assigned by the GM/AM(F&A)/OFAs related to Finance and
Accounts.

NEED OF THE STUDY

It Helps in Evaluating the Performance of Business

Your financial records reflect the results of operations as well as the financial
position of your small business or corporation. In other words, they help you
understand what’s going on with your business financially. Not only will clean
and up to date records help you keep track of expenses, gross margin, and possible
debt, but it will help you compare your current data with the previous accounting
records and allocate your budget appropriately.

It Ensures Statutory Compliance

Laws and regulations vary from state to state, but proper accounting systems and
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processes will help you ensure statutory compliance when it comes to your
business.
The accounting function will ensure that liabilities such as sales tax, VAT, income
tax, and pension funds, to name a few, are appropriately addressed.

It Helps to Create Budget and Future Projections

Budgeting and future projections can make or break a business, and your financial
records will play a crucial role when it comes to it.
Business trends and projections are based on historical financial data to keep
your operations profitable. This financial data is most appropriate when provided
by well-structured accounting processes.

It Helps in Filing Financial Statements

Businesses are required to file their financial statements with the Registrar of
Companies. Listed entities are required to file them with stock exchanges, as well
as for direct and indirect tax filing purposes. Needless to say, accounting plays a
critical role in all these scenarios.

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CONTRIBUTION DURING SIP

Working hours: - 6 hrs. per day.

Working days: - 6 days

1st Week

 Become familiar with the working place and about work done here.
 Got familiar with various documents like, sanction letter, GST Return
files, Insurance Policy, Stock Statement etc.
 Learnt to prepare GST Reconciliation Statement.
 Partial preparation of Stock Audit Report of Temflo System Pvt. Ltd.

2nd Week

 Practical examination of final accounts of company.

 Preparation of the stock audit report of ANKIT POLYPLAST LTD.
 Scanning of Balance Sheet of ANKIT POLYPLAST PVT. LTD., Editing of
Minutes, Monthly GSTR-3B Updation in Excel, Balance sheet updation in
excel.
 RERA : Rechecking of sales details.

3rd Week
 Stock Audit report of ASK FRASLE FRICTION
 Stock Audit report of SUPERMAX LABORATORIES
 Get familiar with Income Tax return files


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4th Week

 Stock Audit Report of SN PHARMACEUTICAL

 Stock Audit Report of SHIV FORGING
 Preparation of actual Final Accounts of Nitin Gupta
 Started to learn Tally Basics
 Preparation of Vouchers
5th Week

 Learning Tally
 Preparation of Stock Audit Report of PUNEET CARS PVT. LTD.
 Preparation of Stock Audit Report of DISTRIBUTION SYSTEMS.

LIMITATIONS
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  Duration of the internship was quite small.
 Working hours were 6, so wasn’t able to invest my time into other
important tasks.
 At times the data available for study can be too large, which makes it a
time consuming tasks.
 In bank statements, sometimes closing balances doesn’t match, so it
becomes a time consuming task to reverify previous balances.

RESEARCH METHODOLOGY
In mainly, I used two types of data collection methods for this research
purpose
1. Primary data
2. Secondary data
3. Observational Data

1. Primary data
This report has prepared through extensive use of primary data. It is
collected from group of people who are related with this company the
following method are used in collecting primary data.
Primary data is the data that is collected for the first time through personal
experiences or evidence, particularly for research. It is also described as
raw data or first-hand information. The mode of assembling the
information is costly, as the analysis is done by an agency or an external
organization, and needs human resources and investment. The investigator
supervises and controls the data collection process directly.
The data is mostly collected through observations, physical testing, mailed
questionnaires, surveys, personal interviews, telephonic interviews, case
studies, and focus groups, etc.

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2. Secondary data
Secondary data is collected from the company’s collected from the
company’s manuals report and brochures through company’s records.
Secondary data is a second-hand data that is already collected and
recorded by some researchers for their purpose, and not for the current
research problem. It is accessible in the form of data collected from
different sources such as government publications, censuses, internal
records of the organization, books, journal articles, websites and reports,
etc.
This method of gathering data is affordable, readily available, and saves
cost and time. However, the one disadvantage is that the information
assembled is for some other purpose and may not meet the present
research purpose or may not be accurate.
The type of research which I have used is the qualitative research,
Qualitative research describes qualities or characteristics. It is collected
using questionnaires, interviews, or observation, and frequently appears in
narrative form. For example, it could be notes taken during a focus group
on the quality of the food at Cafe Mac, or responses from an open- ended
questionnaire. Qualitative data may be difficult to precisely measure and
analyze. The data may be in the form of descriptive words that can be
examined for patterns or meaning, sometimes through the use of coding.
Coding allows the researcher to categorize qualitative data to identify
themes that correspond with the research questions and to perform
quantitative analysis.

3. Observational Data
Observational data are captured through observation of a behavior or
activity. It is collected using methods such as human observation, open-
ended surveys, or the use of an instrument or sensor to monitor and record
information -- such as the use of sensors to observe noise levels at the
Mpls/St Paul airport. Because observational data are captured in real time,
it would be very difficult or impossible to re-create if lost.

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 CONCLUSION

 From the internship, it was seen that how manual accounting is converted to
practical accounting by usage of various software.

 Basic concepts of accounts which was introduced from class 11th were
actually included while implementation in tally software.

 Every voucher entry & specially share purchase & sales entries were
recorded in the systematical way in tally.

 Get to know the use of various GST return files.

 Understood the bank statements of various companies

 Practical analysis of Balance Sheet and Profit and Loss Statements

 Go through sanction letters of various Banks

 Understandability of Insurance Policy and Reading of Corporate Electricity

Bills

 Filling of ITR

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 BIBLIOGRAPHY

 Data extraction from the corporate register provided by the CA.

 https://www.linkedin.com/jobs/view/audit-executive-at-s-m-a-
s-h-co-3657501330/?originalSubdomain=i
 Data extraction of work done from ms excels.

 Accounting Pdf from Google chrome.

 Identification of limitations & initiation of suggestions from

the corporate CA firm.

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