JP COLLEGE OF ARTS AND SCIENCE

Affiliated to Manonmaniam Sundaranar University, Tirunelveli.

Ayikudi, Tenkasi – 627 852

INTERNSHIP REPORT

Submitted to the Partial Fulfillment Of The

Requirement for the Degree Of
Master of Commerce (M.Com)

Internship Report submitted by:

Sujith S
(23081055400611014)
APPLICATION FOR INTERNSHIP
CERTIFICATE OF INTERNSHIP
 ACKNOWLEGEMENT

I am deeply grateful for the guidance and support of many individuals who helped

make this project a success.

First and foremost, I would like to express my sincere gratitude to Mr. I. David

Selvin for providing me with an invaluable internship opportunity that fostered both learning

and professional growth.

My heartfelt thanks go to REV. Sr. B. Hamlet, Administrator of JP College of Arts

and Science, and our Principal Dr. J. Michael Mariadass. I am especially indebted to our

coordinator Dr. K.B. Santhi, M.Com, M.Phil, M.Ed, PhD, BA Eng, who opened the door

to this enriching internship experience, allowing me to gain practical exposure in

accountancy and finance.

I would also like to thank my parents for their unwavering support and

encouragement throughout this journey. My friends deserve special mention for always being

ready to help whenever needed.

While I have prepared this report with dedication and attention to detail, I

acknowledge that there may be room for improvement. I extend my sincere appreciation to

everyone who contributed, directly or indirectly, to the completion of this project.

Thanking you

Sujith S
M.Com II Year
 INDEX

Sr No Topics Page No

1 Executive summary 6

2 Organisational profile 7

3 Work description 8

4 Learning outcome 20

5 Conclusion 22

6 Letter of acceptance by employer 23

7 Attendance sheet 24

8 Evaluation sheet by employer 25

EXECUTIVE SUMMARY
 I am Sujith S, currently pursuing my Master of Commerce at JP College of Arts and

Science, Ayikudi, affiliated to Manonmaniam Sundaranar University, Tirunelveli. My native

place is Nallur, and I am a resident of Alangulam. I completed both my 10th and 12th

education from West Tirunelveli Higher Secondary School.

Master of Commerce (MCom) is a postgraduate program that provides advanced

knowledge in commerce, accounting, and financial management. The course enhances

analytical and professional skills required for higher positions in the financial sector.

As part of my academic curriculum, I completed my internship at Omega Traders,

Alangulam, a hardware trading company, for a duration of 5 days (40 hours). During this

period, I gained hands-on experience in various accounting operations. My key

responsibilities included managing purchase and sales invoices, recording daily transactions

in Tally Prime, assisting in bank reconciliation, and maintaining inventory management

entries. I learned to process GST calculations and helped maintain accounts receivable and

payable records.

Through this internship, I developed proficiency in Tally Prime software and Excel

applications. I gained practical experience in basic accounting procedures, invoice

processing, inventory tracking, and business documentation. This project provides detailed

information about the tasks undertaken and skills acquired during my internship period.
 ORGANISATIONAL PROFILE

Name of the employer: Mr. I David Selvin

Business Name: Omega Traders

Address: 23, Ambai Road, Alangulam - 627851

Phone no: +91 75388 12218

Works provided to customers:

Wide range of hardware products including:

 Construction materials
 Plumbing supplies
 Electrical components
 Tools and equipment
 Building materials
 Safety equipment

Business Operations:

 Wholesale and retail trading

 Bulk supply to contractors
 Custom order fulfilment
 Product consulting
 Delivery services

Accounting Systems:

 Computerized accounting using Tally Prime

 Inventory management
 GST compliance
 Financial statement preparation
 Purchase and sales documentation
 Stock management

WORK DESCRIPTION
  Creation and management of ledgers in Tally Prime
 Posting entries of bank statements in Tally Prime
 Making entries of hardware purchases (TMT bars, Cement, Hardware equipment)
 Recording daily sales bill entries
 GST calculations and entries
 Daily transaction recording
 Inventory management of construction materials

BRIEF DESCRIPTION OF WORKS PERFORMED

Creation of Ledger

Select company → Account info → Ledger → Create

The creation of ledgers is a fundamental step in organizing a company's financial

records, particularly in the construction and hardware supply industry. The process begins by
navigating through the accounting system: first selecting the company, accessing account
information, then proceeding to the ledger section, and finally initiating the creation process.

For hardware suppliers, individual ledgers are created for each vendor, enabling
precise tracking of purchases, payments, and outstanding balances. These ledgers help
maintain clear records of supplier relationships and facilitate better inventory management.

Construction material categories are organized into separate ledgers based on material
types such as cement, steel, lumber, electrical components, and plumbing supplies. This
categorization allows for effective cost monitoring and budget control across different
construction projects.

Customer accounts receive dedicated ledgers to track project payments, advances, and
pending balances. This system ensures transparent client relationships and simplified
invoicing processes.

Expense categories are segregated into distinct ledgers covering areas like labor costs,
equipment rental, transportation, office expenses, and site maintenance. This separation
provides clear insights into cost distribution and helps identify areas for potential cost
optimization.
Each ledger is carefully assigned to its respective group, ensuring a systematic and
hierarchical structure that facilitates easy access and efficient financial management.

Types of Vouchers Used

Sales Voucher (F8)

A Sales Voucher (F8) is a crucial accounting document that serves as official proof of a sales
transaction between a supplier and customer. In the context of hardware and construction
materials, it's an essential tool for maintaining accurate sales records and inventory
management.

For transactions ranging from ₹50,000 to ₹1,00,000 per day, the sales voucher records
detailed information about products sold, including TMT bars, cement, hardware equipment,
and various construction materials. This document serves multiple purposes:

It is used to record sales. The sales voucher has purposes for both supplier and customer. For
the supplier, a copy of the voucher is normally left with the inventory to indicate that it was
purchased and paid for. Used to record daily sales of hardware materials, ranging from
₹50,000 to ₹1,00,000 per day. Generated sales invoices for:

- TMT bars
- Cement
- Hardware equipment
 - Construction materials

Purchase Voucher (F9)

Purchase Vouchers is used when you have to purchase some goods from any party and you
get an invoice against cash or credit purchase from the party. Recorded purchases from
suppliers for:

- Bulk cement orders

- TMT bar inventory
- Hardware equipment stock
- Construction materials

Payment Voucher (F5)

The Payment Voucher (PV) authorizes the spending of money. You can use it to pay an
outside vendor or to transfer money within your entity. Used for:
 - Supplier payments
- Operating expenses
- Utility bills
- Transportation costs

Receipt Voucher (F6)

A Receipt Voucher (F6) is an accounting document that officially records any inflow of funds
into a business, whether through cash or bank transactions. It acts as proof of payment
received and is essential for maintaining accurate financial records. The voucher specifically
records:

 Customer payments

 Cash sales

 Bank deposits

 Advance receipts

Each Receipt Voucher includes critical information such as the date, amount received, payer
details, payment method, and purpose of payment. It serves as a formal acknowledgment of
money received and is crucial for bookkeeping, auditing, and maintaining financial
transparency in business operations.
Contra Voucher (F4)

A contra voucher is a set/group of two or more vouchers to record transactions within the
Establishment especially to record transactions for Cash to Bank or Withdrawal from Bank.
Used for:

- Cash to bank transfers

- Bank withdrawals
- Inter-bank transfers

Journal Voucher (F7)

Journal voucher is a document of every financial transaction, having the necessary
information such as the identification number of the voucher, date, description of the business
transaction, etc. Recorded:

- Stock adjustments
- Expense provisions
- Depreciation entries
- Other adjusting entries

ENTRIES OF BANK STATEMENT IN TALLY PRIME

Processed various banking transactions including:

Cash Deposits

During my internship at Omega Traders, I handled daily cash deposit transactions in

Tally Prime using contra vouchers (F4). The process began with collecting and verifying the
day's cash collection, typically ranging from ₹50,000 to ₹1,00,000, primarily from hardware
sales. Using Tally Prime's contra voucher feature, I recorded these transactions by debiting
the bank account and crediting the cash account. Each entry required careful documentation
of deposit slip numbers, transaction dates, and bank branch details.

The process involved multiple steps: first, counting and verifying physical cash, then
preparing deposit slips in duplicate, and finally recording the transaction in Tally Prime. I
learned to handle special cases like high-value deposits requiring manager approval and
deposits containing mixed denominations. The contra entries were essential for maintaining
accurate cash flow records and ensuring bank reconciliation accuracy.

I also maintained a separate register for cash deposits, which served as a cross-
reference during bank reconciliation. This experience taught me the importance of
maintaining proper documentation and the critical role of timing in cash deposit entries.

Entry:

Bank A/c (Dr)

To Cash (Cr)

Payments to Suppliers
 In internship, I handled daily cash deposit transactions in Tally Prime using contra
vouchers (F4). The process began with collecting and verifying the day's cash collection,
typically ranging from ₹50,000 to ₹1,00,000, primarily from hardware sales. Using Tally
Prime's contra voucher feature, I recorded these transactions by debiting the bank account
and crediting the cash account. Each entry required careful documentation of deposit slip
numbers, transaction dates, and bank branch details.

The process involved multiple steps: first, counting and verifying physical cash, then
preparing deposit slips in duplicate, and finally recording the transaction in Tally Prime. I
learned to handle special cases like high-value deposits requiring manager approval and
deposits containing mixed denominations. The contra entries were essential for maintaining
accurate cash flow records and ensuring bank reconciliation accuracy. I also maintained a
separate register for cash deposits, which served as a cross-reference during bank
reconciliation. This experience taught me the importance of maintaining proper
documentation and the critical role of timing in cash deposit entries.

Entry:

Supplier A/c (Dr)

To Bank A/c (Cr)

Customer Receipts

Processing customer receipts formed a significant part of my daily responsibilities,

involving the use of receipt vouchers (F6) in Tally Prime. These transactions primarily came
from contractors and retail customers purchasing construction materials. When receiving
payments, I would debit the bank account and credit the customer's account, carefully noting
payment references and invoice numbers being settled. The process involved handling
multiple payment methods including cheques, online transfers, and UPI transactions.

Each receipt required verification of the payment amount against outstanding invoices
and proper application of GST rules. I learned to manage partial payments, advance receipts,
and settlement of multiple invoices through single payments. The system required
maintaining customer-wise receipt histories, which helped in tracking payment patterns and
managing credit limits. This experience provided valuable insights into accounts receivable
management and the importance of prompt and accurate recording of customer payments for
maintaining healthy cash flow.
Entry:

Bank A/c (Dr)

To Customer A/c (Cr)

GST ENTRIES

During my internship at Omega Traders, I gained comprehensive experience in

handling GST transactions through Tally Prime, particularly focusing on construction
materials and hardware products. The GST entries broadly fell into two main categories: local
purchases and local sales, each requiring specific attention to tax rates and proper
documentation.

Local Purchases Processing

In managing local purchases, I handled transactions for various construction materials, with
cement purchases being a significant component. A typical cement purchase transaction
would involve careful calculation of GST components. For instance, when processing a
cement purchase of ₹10,000, the transaction would include CGST and SGST at 9% each
(₹900 + ₹900), bringing the total to ₹11,800. The entry in Tally Prime required precise
allocation of these amounts:

The process involved several critical steps:

1. Verification of supplier's GST registration and tax invoice format

2. Checking the applicable GST rates for specific products (cement, TMT bars,
hardware items)

3. Creating separate ledger entries for input CGST and SGST

4. Recording the purchase amount exclusive of GST

5. Generating purchase vouchers with proper GST allocation

6. Maintaining supplier-wise GST records for tax credit purposes

Local Purchases (Example)

Bill: Cement Purchase

Base Amount: ₹10,000

 CGST 9%: ₹900

SGST 9%: ₹900

Total: ₹11,800

Entry:

Purchase A/c Dr 10,000

Input CGST Dr 900

Input SGST Dr 900

To Supplier A/c 11,800

Local Sales Processing

Local sales transactions formed the bulk of daily GST entries, particularly for TMT bars
which were high-value items. For a typical TMT bar sale of ₹50,000, the GST calculation
would include CGST and SGST at 9% each (₹4,500 + ₹4,500), totaling ₹59,000. The Tally
Prime entry process required:

1. Verification of customer's GST status and registration details

2. Creating appropriate sales vouchers with GST breakup

3. Generating tax invoices with proper HSN codes

4. Recording output CGST and SGST separately

5. Maintaining customer-wise GST records

Local Sales (Example)

Bill: TMT Bars Sale

Base Amount: ₹50,000

CGST 9%: ₹4,500

SGST 9%: ₹4,500

Total: ₹59,000

Entry:
 Customer A/c Dr 59,000

To Sales A/c 50,000

To Output CGST 4,500

To Output SGST 4,500

Through this hands-on experience, I developed a thorough understanding of GST operations

in the construction materials and hardware business, particularly in using Tally Prime for
efficient tax management and compliance.

INVENTORY MANAGEMENT

During my internship at Omega Traders, I gained extensive experience in inventory

management using Tally Prime software, focusing primarily on construction materials and
hardware products. The inventory management process began with creating detailed stock
items in Tally Prime, where I helped maintain records for various TMT bar sizes ranging
from 8mm to 32mm, different grades of cement including OPC and PPC, and a wide array of
hardware equipment. For TMT bars, we maintained separate stock categories based on
manufacturing brands and sizes, ensuring accurate tracking of each variant. Cement inventory
was tracked by brand, grade, and packaging size (primarily 50kg bags), with special attention
to storage conditions and expiry dates.

The daily stock management routine involved updating opening and closing stock
quantities in Tally Prime, recording both inward and outward material movements. For TMT
bars, we maintained detailed records of length specifications and bundle quantities, which
was crucial for minimizing wastage and optimizing storage space. Cement inventory required
particular attention due to its time-sensitive nature, and we implemented a First-In-First-Out
(FIFO) system to prevent material deterioration. Hardware equipment inventory was
categorized into subgroups such as power tools, hand tools, plumbing materials, and
electrical components, each with its specific stock parameters and reorder levels.

Stock reconciliation was performed at the end of each day using Tally Prime's stock
summary features. This involved cross-verifying physical stock counts with system records,
investigating and resolving any discrepancies, and updating stock valuations. We utilized
Tally's batch tracking feature for cement products to monitor manufacturing dates and ensure
proper rotation of stock. For TMT bars, we maintained both weight-based and piece-based
inventory records, as customers often requested specific lengths and quantities.

A critical aspect of my role involved monitoring minimum stock levels through Tally
Prime's reorder level feature. For high-demand items like 16mm and 20mm TMT bars and
popular cement brands, we set higher reorder points to prevent stockouts. The system was
configured to generate automatic alerts when stock levels approached the reorder point,
typically set at 25% of maximum stock capacity for TMT bars and 30% for cement. This
helped in maintaining optimal inventory levels while considering factors like delivery lead
times and seasonal demand fluctuations.

I also learned to generate and analyse various stock reports using Tally Prime,
including daily stock movement reports, inventory aging analysis, and stock valuation
reports. These reports were crucial for management decision-making regarding procurement
and pricing strategies. The stock movement analysis helped identify fast-moving and slow-
moving items, enabling better inventory optimization. For construction materials like TMT
bars and cement, we maintained detailed stock movement histories, which helped in
predicting future demand patterns and planning purchases accordingly.

Through this hands-on experience, I developed a thorough understanding of inventory

management principles and their practical application in the hardware and construction
materials business. Working with Tally Prime enhanced my proficiency in digital inventory
management, stock valuation methods, and the importance of maintaining accurate stock
records. This experience also taught me the significance of efficient inventory management in
maintaining business profitability and customer satisfaction.

SHORTCUT KEYS USED IN TALLY

SHORTCUT KEY FUNCTION

To remove what has been typed into the data field while
Esc
preparing a voucher

ALT + D To delete a voucher/ To delete a master

ALT + C / ALC To create a master/ ledger

ALT + X To cancel a voucher

CTRL + A To accept a form

CTRL + V To toggle between invoice and voucher mode

ALT + 2 To duplicate a voucher

CTRL + N To switch to calculator

ALT + R To remove / hide the line in a report

ALT + P To print the report

To export the report in ASCII, Excel, HTML, PDF, XML

ALT + E
format

Alt + R To hide a Ledger

Ctrl + Enter / ALA Change Ledger

Alt + U To unhide a ledger

F1 To select a company

Alt + X To cancel a voucher

Alt + 2 To change system period

DAS To open sales voucher

DAP To open purchase voucher

 LEARNING OUTCOMES

My five-day internship at Omega Traders proved to be an invaluable learning

experience, providing comprehensive exposure to real-world business operations in the
construction materials and hardware industry. The intensive hands-on training significantly
enhanced my understanding of commercial practices and developed various professional
competencies.

The primary technical skill I acquired was proficiency in Tally Prime software, which
forms the backbone of modern business accounting. Through daily hands-on practice, I
learned to navigate the software's interface efficiently, create and manage ledger accounts,
and process various types of vouchers. The experience of handling high-volume daily
transactions, ranging from ₹50,000 to ₹1,00,000, helped me understand the importance of
accuracy and attention to detail in financial record-keeping.

In terms of GST compliance and calculations, I gained practical knowledge of tax

structures specific to construction materials and hardware products. Working with different
tax rates and maintaining proper documentation enhanced my understanding of indirect tax
management. The experience of processing both input and output GST, generating tax
invoices, and maintaining GST records provided valuable insights into tax compliance
requirements in the construction industry.

Inventory management emerged as another crucial learning area. I developed skills

in maintaining accurate stock records for various products including TMT bars, cement, and
hardware equipment. The experience taught me the importance of proper stock
categorization, monitoring stock levels, and understanding the relationship between inventory
management and business profitability. Learning to generate and analyse stock reports helped
me understand how inventory decisions impact business operations.

The internship significantly improved my proficiency in bank reconciliation and

financial documentation. I learned to process various banking transactions, maintain accurate
records of cash flows, and ensure proper documentation for audit purposes. The experience of
handling different payment modes and maintaining supplier and customer accounts provided
practical insights into working capital management.
 One of the most valuable aspects of the internship was the development of soft skills.
Daily interactions with suppliers and customers enhanced my communication abilities and
taught me the importance of professional relationships in business. Working as part of a team
improved my collaborative skills and taught me how to coordinate with colleagues to achieve
common objectives. The fast-paced environment helped develop time management skills and
the ability to prioritize tasks effectively.

The exposure to hardware business operations and construction material trading

provided practical insights into market dynamics. I learned about price fluctuations in
construction materials, factors affecting market demand, and the importance of maintaining
competitive pricing while ensuring profitability. Understanding stock management
techniques and their impact on business operations was particularly enlightening.

Problem-solving skills were continuously developed through handling real business

scenarios. Whether it was resolving discrepancies in stock counts, addressing customer
queries, or managing documentation requirements, each challenge provided an opportunity to
apply theoretical knowledge in practical situations. The experience taught me to approach
problems systematically and find effective solutions while maintaining professional
standards.

Customer relationship management was another crucial learning area. I observed

and learned various aspects of maintaining good customer relationships, understanding
customer needs, and ensuring customer satisfaction through efficient service delivery. The
experience helped me understand the importance of building and maintaining long-term
business relationships.

Documentation and record-keeping skills were significantly enhanced during the

internship. I learned the importance of maintaining accurate business records, proper filing
systems, and the role of documentation in ensuring smooth business operations and
compliance with regulatory requirements.

This internship at Omega Traders has been instrumental in bridging the gap between
theoretical knowledge and practical application. The exposure to high-volume transactions,
diverse product categories, and various aspects of business operations has provided a solid
foundation for my future career in commerce. The experience has not only enhanced my
technical skills but also developed the professional competencies required for success in the
business world.
CONCLUSION

My five-day internship at Omega Traders has been an exceptionally enriching and

transformative experience in my academic journey. The intensive exposure to real-world
business operations in the construction materials and hardware industry has significantly
enhanced my understanding of commerce principles and professional practices. Working
with Tally Prime software and handling substantial daily transactions ranging from ₹50,000
to ₹1,00,000 has given me practical insights that no classroom could provide.

The experience has helped me identify both my strengths and areas for improvement.
I discovered my aptitude for detailed documentation and systematic approach to tasks,
particularly in inventory management and GST calculations. However, I also recognized the
need to enhance my speed in data entry and expand my knowledge of advanced Tally Prime
features. The dynamic environment at Omega Traders taught me the crucial importance of
time management, especially when dealing with multiple tasks like processing sales entries,
managing inventory, and handling customer inquiries simultaneously.

One of the most valuable takeaways has been understanding the practical application
of accounting principles in a business setting. The hands-on experience with GST
calculations, bank reconciliation, and inventory management has strengthened my foundation
in commerce. The supportive team at Omega Traders, particularly Mr. I David Selvin,
provided guidance that helped me grasp complex business operations and develop
professional competencies.

This internship has reinforced my career aspirations in accounting and finance. The
exposure to high-volume transactions, diverse product categories, and various aspects of
business operations has provided me with a clear perspective on my future career path. The
practical knowledge gained, combined with the development of essential soft skills like
communication and team collaboration, has prepared me better for the professional world. I
am grateful for this opportunity that has bridged the gap between theoretical knowledge and
practical application, setting a strong foundation for my future in commerce.
LETTER OF ACCEPTANCE BY EMPLOYER
ATTENDANCE REPORT
EVALUATION REPORT