A STUDY OF ACCOUNTING PRATICES AT IP MEDIA

SUBMITTED IN PARTIAL FULFILLMENT OF THE

REQUIREMENT FOR THE AWARDED DEGREE OF
BACHELOR OF COMMERCE
TO
SCHOOL OF MANAGEMENT
Supervisor name: Dr. Deergha Sharma by sonam yadav
Roll no. : 18bcom62

Rollno.18bcom62

THE NORTHCAP UNIVERSITY

SEC-23A, GURUGRAM – 1220017, HARYANA, INDIA

Batch: (2018-2021)

Certificate
I, Miss. Sonam yadav, Roll No.18bcom62certify that the Summer Internship Report “Study of
accounting practices” is done by me and it is an authentic work carried out by me at IP Media Company.
The matter contained in this has not been submitted earlier as part of any other assignment or for the
award of any degree, the diploma to the best of my knowledge and belief.

Signature of the student

Sonam yadav

Acknowledgement
It was a great opportunity for me to work with IP Media Company, pioneers in the field of finance. I am
extremely grateful to all those who have shared their expertise and knowledge with me and without
whom the completion of this project would have been virtually impossible. Firstly, I would like to thank
our Company Guide Mr.aniket Sharma who has been a constant source of inspiration for me during the
completion of this project. He gave us invaluable inputs during our endeavour to complete this project.
I thank our faculty guide Dr. Deergha sharma who helped me out at every critical situation that I faced
in our project and gave me her valuable advice to solve problems. I want to give our special thanks to
all members of North cap University, for providing me with the opportunity to work on this project
with this great organization. At last, I would like to thank all the respondents who met in the
preparation, who gave their valuable time to provide us with the required information and their honest
support to complete our project in time.
 Tables of content

S.no Topic Pg.no.

1. Certificate 2
2. Acknowledgement 2
3. Excecutive summary 4
4. About the industry 4
5. About the company 4
6. Company mission, vision, focus, size, about the department 5
7. Pest analysis 6
8. Swot Analysis 7

9. Topic, objectives 8

10. Job profile 9

11. Accounting practices 10

12. Over view of tally erp9 ,how to create journal entries 11

13. Cash account in journal entries 12

14. Pass journal voucher with cash/bank ledger 13

15. Debit note entry 14

16. Credit note entry 15

17. How to create company in tally erp 9 16

18. Details regarding that fill in tally erp9 17

19. How to delete a company in tally erp 9 18

20. Create multiple groups in one-go 19

21. Alter multiple groups 20

22. Short cut keys of tally erp9 21

23. How to take backup data in tally erp 9 22

24. How to restore data from tally 7.2 to tally erp 9,limitaions 23

25. Key learnings and recommendation of the company 24

26. Conclusion 25
de

Excecutive Summary
This project was taken with the aim of studying the accounting practices which are being followed in
the auditing firms. How basically auditing is done, finding out flaws in the records of the company and
matching with the actual data and got this opportunity at this auditing firm. IP media company as my
first experience in the professional world. In these six weeks internship program, worked under the
data analytics in the office. Got a chance to work on this report followed by the knowledge that was
gained from working, training and personal experiences. The first part of this report consists of an
introduction to the project. The second part consists of a job profile at IP media company .In the third
part, discussion about the Issues/Challenges faced during the period of internship at the company. In
the fourth part, key learnings are mentioned which are applied during the internship. Followed by this
in the next section recommendations are included. In part recommendation, the overall conclusion is
given.

INTRODUCTION

About the industry

IP Media Company belongs to the IT Industry. Information Technology in India is an industry
consisting of two major components: IT services and business process outsourcing (BPO). The sector
has increased its contribution to India's GDP from 1.2% in 1998 to 7.7% in 2017. the sector aggregated
revenues of US$180 billion in 2019, with export revenue standing at US$99 billion and domestic
revenue at US$48 billion, growing by over 13%. As of 2020, India's IT workforce accounts for 4.36
million employees. The United States accounts for two-thirds of India's IT services exports.

ABOUT THE COMPANY

IP Media is not just any regular development company. they have a family of experienced developers’
designers and marketers who are always ready to provide an extreme level of services that leave a
long-lasting impression. Their Services includes Website Development, Software Development, Mobile
App Development, Digital Marketing etc. They are not only determined to offer the best services in fact,
but they are also paying more attention to leave mark or statement in current market.
IP Media has and will always be determined to fulfil our Promise which is our tag line as well “Quality –
Is our Identity”.
They have fruitfully delivered more than 1200 Projects for different Verticals such as Bigger Reality,
Messaging, and chatting portals, Transport/carpools, Healthcare, e-commerce and marketplaces, m-
Commerce, Education online education portals Entertainment, Hospitals, and nursing home, Real
Estate, Logistics, and Finance. They have hands-on experience all mobile operating systems such as iOS,
Android, Windows and other platforms in almost.

Year Founded:
Founded in the year 2012
Company Mission:
Improve our performance & efficiency by aligning & optimizing our application designing &
development procedures. To achieve total customer satisfaction through cutting edge & innovative
application design & development solutions which enhances today’s strategy & tomorrows needs.

Company’s Vision
To accomplish the assignment through the experience of the firm’s partners & professional staff and
also to arrange specific technical expertise from our associates of various streams of professions.

Company’s Focus
They focus on their Client’s utmost satisfaction. To serve the spectrum of Indian and international
industries. To be highly professional, most reliable and immensely respected in the field. To be
committed and work with honesty and integrity.

Size (terms of turnover and manpower)

Manpower 6 and turnover above 25 lakhs

The Organisation Structure of the Company

IP Media follow a functional structure for the organization. The functional structure is basically set up
so that each portion of the organization is grouped according to its purpose. The functional structure
works very well for small businesses in which each department can rely on the talent and knowledge of
its workers and support itself.

About the Department

 Audit and Assurance Department:

The firm provides audit and assurance services to a wide range of clients which include performing
audits of financial statements of limited companies, NGOs and partnerships. The firm also performs
special assignments which include management audits, internal audits, and investigations. The Firm
emphasis delivering high-quality services to clients, adding value to their business through
identification of existing and potential control risks and suggesting the best possible measures in the
given circumstances.
  Function
my Main function was to analyse the given data, check whether it matches with the original books or
not, finding out useful information from the given data, registering of the entries from the books which
are not being registered in the digital book (tally software).

 Position and Reporting Structure

The position was of an intern at IP Media Company. Accountability was direct to Mr. Aniket

PEST ANALYSIS

Political forces:
Companies tend to be altered by the influence of government on the infrastructure of the country. The
political factors may involve environment regulations, employment laws, tariffs, tax policy, trade
restrictions, political stability, and reforms. It is noteworthy, that the charities need to be included
where the government is not willing services and goods to be provided.

Economic Factors
The company’s economic factors or the forces involve interest rates, inflation, and growth of the
economy, cost of living, working hours, wage rate and exchange rates. Combining these factors, it last as
greater and inevitable impact on the organization.

Social Factors
Society’s culture and way of doing things impact the culture of an organization in an environment.

•Changing investment buying behaviour

•Class structure, hierarchy, and power structure in society.

Technological Factors:
An organization should innovate and be compatible with the technologies. This aspect was missing in IP
Media. Well, they were technology-driven but they lag in updates with some software and technological
aspects. it include ecological and environmental aspects and can determine barriers to entry,

minimum efficient production level and influence outsourcing decisions. Technological factors look
at elements such as R&D activity, automation, technology incentives and the rate of technological
change.

SWOT ANALYSIS

 STRENGTH
a) Skilled workforce- IP Media Company have employees who have special skills, training, and
specified knowledge

b) IP Media Company expertise in audit, tax, and advisory services with the best interest of the
clients.

c) Strong financial positions IP Media Company have come out to be the best consultancy firm and
have a strong financial position in the industry.

 WEAKNESS
a) No foreign affiliation- IP Media Company have no foreign affiliation which limits its foreign
connections

b) One of the main weaknesses of IP Media Company is that it is unable to retain their most
talented employees.

c) There is stiff competition in the consultancy industry which limits their progress.

 OPPORTUNITIES
a) The company has to perform in a way so that it can expand in the market abroad and earn or
gain more revenue or profit.

b) Companies continuously looking for consultants

C) To increase the opportunity to grow in the market, IP Media Company must adopt.
  Threats
a) High competition in the market proves to be a threat to the company.
b) Some external changes in government policies, taxes, etc. Might act as a threat to the company .

TOPIC
The topic “Accounting practices at IP Media Company”. Accounting practice is the system of procedures
and controls that an accounting department uses to create and record business transactions.
Accounting practice should ideally be extremely consistent since there are a large number of business
transactions that must be dealt with in exactly the same manner in order to produce consistently
reliable financial statements. Auditors rely upon consistent accounting practices when examining a
company's financial statements. As physical and digital worlds have grown ever integrated, accounting
information systems are now generally computer-based methods for tracking accounting activities that
complement other enterprise-wide technologies and information management resources. Accounting
practices and attached systems produce financial reports that can be used internally by management or
externally by other stakeholders including investors, creditors and tax authorities.

OBJECTIVES
The goal of the project was to receive maximum exposure in the various processes of Finance Team
and accounting practices. Before the internship, only theoretical knowledge about the work in the
organization was provided at college. During this internship, I learned many new skills, know the
knowledge about the organization’s working environment and how organization work is gained
with more understanding.

Apart from the above mention objectives, there were other objectives while conducting this study
such as
 To understand the accounting practices performed at IP Media Company’ firm and the activities
required to carry out all its functions.
 To study the how to create companies in tally erp9, how to delete the accounts, shortcut keys.

 To apply the theoretical knowledge of vouching in the actual organization

JOB PROFILE
Experience at IP Media Company

During my 6 weeks of internship got the opportunity to work on various tasks. On the first day
of the the internship, Mr. Aniket gave the training session about the computerized accounting in
tally software. Mr. Sumit Yadav also shared his personal experience with me and gave me some
techniques about this process.

1. Different tasks performed during the internship

Maintenance of accounts/ bookkeeping.

2. Software used during the internship

1. Tally software.

What are accounting practices?

Accounting practice is the system of procedures and controls that an accounting department
uses to create and record business transactions. Accounting practice should ideally be
extremely consistent since there are a large number of business transactions that must be dealt
with in exactly the same manner in order to produce consistently reliable financial statements.
Examples of good accounting practice are:

 Always using the same calculation to determine the amount of overtime paid to
employees
 Always issuing billings to customers on the same day that goods are shipped to
them
 Always paying supplier invoices on the day when they are due
 Always using the same depreciation method for the same class of fixed assets

Overview of Tally ERP 9

 Journal Entries

 Journal Vouchers are used to adjust the debit and credit amounts without
involving the cash or bank accounts. Hence, they are referred to as adjustment
 entries.

Creating Journal Entries:

 Journal entries are usually used for the finalization of accounts. To pass a
Journal Voucher,
 Go to Gateway of Tally > Accounting Vouchers

 Click on F7: Journal on the Button Bar or pressF7 .

For example, there may be entries made for interest accrued or interest due. If you
have to receive Interest from a party, the same can be entered using the Journal
Voucher.
1. Debit the Party
2. Credit the Interest Receivable Account the Journal entry is displayed as
shown:

Figure1

Special Keys for Voucher Narration Field:

ALT+R: Recalls the Last narration saved for the first ledger in the voucher,
irrespective of the voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher type,
irrespective of the ledger.
Allowing Cash Account in Journal Entries:

Journals are Adjustment entries, which do not involve Cash account and Bank account.
However, in exceptional cases where the user would like to account for Journal entries
involving Cash/Bank Account, Tally. To enable Cash Accounts in Journal voucher,
 Set Allow Cash Accounts in Journals to Yes in F12: Configure (Voucher Entry Configuration).

Figure 2

To pass a journal Voucher with cash /bank

ledger:
1. Go to Gateway of Tally > Accounting Vouchers > Select F7:Journal

2. Press the spacebar at the Debit or Credit field.

The Journal Voucher Screen with Cash/Bank Ledger selection will appear as shown:
 Figure 3

Debit Note Entry:

Debit Note is a document issued to a party stating that you are debiting their Account in
your Books of Accounts for the stated reason or vice versa. It is commonly used in case of
Purchase Returns, Escalation/De-escalation in price, any other expenses incurred by you
on behalf of the party, etc.
Debit Note can be entered in voucher or Invoice mode.
You need to enable the feature in F11: Accounting or Inventory features.

 To use it in Voucher mode you need to enable the feature in F11: Accounting Features
- Use Debit / Credit Notes.
 To make the entry in Invoice mode enable the option F11: Accounting Features - Use
invoice mode for Debit Notes. To go to Debit, Note Entry Screen,
 Go to Gateway of Tally > Accounting Vouchers
  Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.You can toggle
between voucher and Invoice mode by clicking CTRL+V. Pass entry for the goods
purchased returned to Supplier.

Special Keys for Voucher Narration Field:

 ALT+R: Recalls the Last narration saved for the first ledger in the voucher,
irrespective of the voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

Credit Note Entry:

Credit Note is a document issued to a party stating that you are crediting their Account in
your Books of Accounts for the stated reason or vice versa. It is commonly used in the case of
Sales Returns.
A Credit Note can be entered in voucher or Invoice mode.

You need to enable the feature in F11: Accounting or Inventory features.

  To use it in Voucher mode you need to enable the feature in F11: Accounting
Features - Use Debit / Credit Notes.
 To make the entry in Invoice mode enable the option F11: Accounting Features -
Use invoice mode for Debit Notes.
To go to the Credit Note Entry Screen:
Go to Gateway of Tally > Accounting Vouchers
1. Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8. You can toggle
between voucher and Invoice mode by clicking CTRL+V.
2. Pass entry for goods sold returned from Customer A:

Figure 5

Special Keys for Voucher Narration Field:

ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective of the
voucher type.
CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the ledger.

HOW TO CREATE COMPANY IN TALLY ERP9?

Steps Actions Instructions to be followed

Step 1 To open Tally Software Double click on tally icon

from your desktop.

Step 2 To go to Create Company To do this Select Create

company from the
 Screen Company Info. Menu using
up and down arrow key
and press Enter Key.

Step 3 To fill up the Details in Company In this company creation screen,

Creation Screen you should enter all the details of
the company that you been asked
for.        

Details to be filled in company creation screen.

Directory

It is nothing but the data storage location. The tally directory will store all data you entered in Tally
ERP 9.

Name

For example. XYZ INC.

Primary mailings details

Mailing name:

 Address

 Country

 State

 Pincode

Contact details

 Mobile no
 Fax No
 E-mail
 Website

Books and financial year details

Financial year begin from:

In this we have to type the financial year in which we want to create the company .for ex. We
started a company on December 1 2018, we should enter the financial year from as 01.04.2018.

 Book beginning from

 In this data field, you have to type the financial year in which you want to create a company.
Suppose you may be starting company on December 01 2018, you should enter the financial year
from as 01.04.2018.

o Starting in the middle of the financial year.

o Companies which are migrating from Manual Accounting to Tally ERP 9 in the middle of
the financial year.
 Security control

 Tally vault password ( if any)

This data filed is for security purpose. By enabling this field, Tally ERP 9 Convert tally data
into an encrypted format. To encrypt means convert data from recognised format to
unrecognised format. By entering the Tally Vault password we can prevent unauthorized
access of company data. Now in Latest Tally ERP 9, There is a password strength indicator,
which will help you to set a strong password. Red colour indicates a weak password whereas
peach-orange colour: fair, Yellow is good and Green colour indicates a strong password.

Use security control?

 Enabling this data field, we will get complete control over the data, we can assign users for specific
purposes, for example : We can assign data entry operators who can access only voucher entry
screens.

 We can assign billing clerks who can access only Sales invoice voucher
 We can assign Financial managers who can access financial data’s and reports as the
administrator control his access.
 In this data field, we will be asked the administrator name and password.

Base currency information

Base currency symbol

In this data field, the currency symbol of the country is auto selected based on the country of origin
fed by you in the previous data field. There is no need to change this data field if you are using the
same currency for accounting.

 Formal name

 Suffix symbol to amount?

 Add space between amount and symbol?

 Show amount in millions

 Number of decimal places?

 Number of decimal places for amount in words?

 How to delete a company in tally erp 9?
1. Load the company you want to delete.
2. From the gateway of Tally Press Alt + F3 Shortcut key of click on Alt+F3
cmp info.
3. In the company info menu select Alter menu, now you are in company
alteration screen.
4. Now press Alt+D Shortcut Key
5. First confirmation message ‘Delete’ will be asked by Tally
6. Click on Yes or Press enter or press Y from your Key board.
7. Second confirmation message will be asked ‘Are you sure’.
8. Repeat the previous action Click on Yes
9. The company will have deleted.
10.You are done!!

How to create the group under single group (one by one):

1. Go to gateway of Tally>Accounts info.> groups>create (under single group)

2. Enter the Name of the group.
3. Enter the name, if required.
4. In the field Under, from the List of Groups displayed, select the parent group under
which the group has to be classified. For example, Indirect Expenses .
5. Click Yes to accept the screen.

View account groups one-by-one in display mode

1. Go to Gateway of Tally > Accounts Info. > Groups > Display ( under Single Group ).
2. Select the name of the group required from the List of Groups displayed. The
ledger display screen appears as shown below:
 Alter a Group
The details entered in a group can be modified when required.
1. Go to Gateway of Tally > Accounts Info. > Groups > Alter ( under Single Group ) .
2. Select the name of the group required from the List of Groups displayed.
3. Make the necessary changes in the Group Alteration screen.
4. Click Yes to save the changes.

Create Multiple Groups in one-go

You can create, edit or delete multiple groups in Tally.ERP 9.

1. Go to Gateway of Tally > Accounts Info. > Groups > Create (Multiple Groups).

2. Select the group category in the field Under .
3. Enter the Name of the group. The screen appears as shown below:

3. Select All Items in the field Under to create multiple groups of different categories.

Display Multiple Groups

1. Go to Gateway of Tally > Accounts Info. > Groups.
 2. Click Display (Multiple Groups). The Multi Group Display screen appears as shown below:

3. Select the groups to display from the List of Groups or select All Items to display all groups.

Alter Multiple Groups

1. Go to Gateway of Tally > Accounts Info. > Groups > Alter (Multiple Groups) .
2. Select the group from the List of Groups. The Multi Group Alteration screen appears as
shown below:

3. Change the details as required and click yes to save changes.

Delete a Group

Groups can be deleted from the alteration screen. You cannot delete groups from the multiple
group Alteration mode.
1. Go to Gateway of Tally > Accounts Info. > Groups > Alter (under Single Group).
2. Select the group from the List of Groups.
3. Click D: Delete.
4. Click yes to confirm deletion.

Short cut keys that used in tally erp 9

Short cut Type Explanation

F1 : Shut Company  Short cuts with single underline

 With single line means ALT is the
additional key used with the key
displayed
 For example ALT + F1 is the shortcut
for shutting the Company

F8 : Credit Note  Short cut with double underline

 With double line means CTRL is the
additional key used with the key
 displayed in the screen
 For example  CTRL + F8 is the shortcut
key for selecting Credit Note Voucher

F2 : Date -  The shortcut with no underline

 With no line means only the displayed
key is the shortcut key of that function
 For example F2 is the key for date

F1 To select the company or to open the company

CTRL + F1 : To select payroll voucher from Inventory

Voucher/Accounting Screen

CTRL + F2 : To select Sales Order Voucher from Accounting

Voucher/ Inventory Voucher Screen

CTRL + F4 : To select Purchase Order Voucher from

Accounting Voucher Screen

CTRL + F10 : To select memorandum voucher

CTRL + F9 : To select Debit Note Voucher

CTRL + F8 : To select Credit Note Voucher

F8 : To Select Sales Voucher

F7 : To select Journal Voucher

F6 : To select Receipts Voucher

F5 : To select Payments Voucher

F4: To Select Contra Voucher

ALT + J : To select Job work out order

voucher
ALT + W : To select Job work in order Voucher
How to Take Backup Data in Tally Erp 9?
Go to Gateway of Tally > F3: Cmp Info > Backup to view the Backup Companies on Disk screen.
2. Source - The folder path where your company data is stored. By default, the folder path of
your existing company data is displayed here.
3. Destination - The folder path where the data backup has to be stored. You can store the
backup locally on your computer, on any external storage device, or on a storage space on
the network.
4. Select the required company from the List of Companies. Select all items to back up data of
all the companies.
5. Press Ctrl+A to initiate the backup process.

How to Make Restore Backup in Tally Erp 9?

1. Go to Gateway of Tally > F3: Cmp Info > Restore to view the Restore Companies screen.
2. Destination - The folder path where your company data is to be restored. Do not restore
backup data in the folder where your company data exists, since it may overwrite the
existing data.
3. Source - The folder path where the backup file is stored. You can restore data stored locally
on your computer, on any external storage device, or on a storage space on the network.
4. Select the required companies from the List of Companies. Select all items to restore data of
all companies.
5. Press Ctrl+A to restore the data backup.

How to restore data from tally 7.2 to tally erp9?

1. Copy company data of Tally 7.2 to Tally.ERP 9 data folder.
2. Start tally erp9 migration tool (tally7.2 migration.exe) from the location where it is available
(downloaded or saved).
3. Select Migrate Data in the Tally ERP 9 Data Migration Tool.
4. Enter the company data path in the field Directory and select company in the field Name.
5. Click Yes for the message prompt Rewrite? 
6. Click Yes or No for the message prompt Backup before rewriting? The data is backed up
before being rewritten to Tally 7.2 format for migration .
 7. Click Yes for the message prompt Migrate? On successful completion of migration, a
message Migration Completed, Check Statistics appears. Compare the statistics and ensure
that the data migration is complete.

Limitations

 They have a small staff with a shallow skills base in many areas. Less number of staff
members.
 Developments in technology change this market beyond IP Media Company. Ability to adapt.
 Changes in government policies and procedures may act as a threat to the company.
 A small change in focus of large competitor might wipe out any market position IP Media
achieve.
 IP Media Company It has many competitors. Under certain circumstances, these
competitors may act as a major threat to the organization.
 Key learnings

Technical skills
 MS Excel: The task involving data entry management was done using MS Excel.
Received an opportunity to learn the basics of MS excel.
 Computer office: making accounting entries in the software with the help of
theoretical knowledge.

Interpersonal skills
 Communication skills: Working in an organization helped in improving my
communication skills as the training includes telephonic calls to the clients,
reporting to the project manager.

Managerial skills
 Managing time and keeping up with the deadlines of the project.

 Managing documents and various bills for tax and audit according to the companies and
fiscal year.
Recommendation to the Company

 IP Media Company strongly need to improve its network firms so as to be counted

among one of the extensively know firms in UP. The partner needs to make the best use
of their goodwill to bring more client age and reputation to the firm. They need to offer
the audit services at the most economical cost with the assured quality services to retain
and expand clients.
 The infrastructure and working condition reviews can improve the working efficiency of the
trainees. Audit and Assurance is a tough job. Some motivational meetings and mentoring
exercises would bring good feelings among employees for their work. Time to time financial
bonuses or performance incentives will energize the staff.
 The trainees are not offered extra financial or any other incentive for the extra work or
overtime. This causes some sort of mental stings which immediately needs to be overcome
by the management.
 The firm, to be more competitive in days to come, still has room for improvement in
Information Technology. A firm doesn’t have any of its websites to attract customer and
their timely feedback as most of the good firms have their own web and well organized.

Conclusion

 The internship was a great experience this internship has been an excellent and
rewarding experience. It was a pleasure for me to work at IP Media Company. The
atmosphere at the office was always welcoming. During my project, learned about the
vouching and how to verify vouchers with actual Evidence.
 IP Media Company is overall one of the profit-making firms. The organization since its
very first day is devoted to providing quality services. The detailed and through review
of work and clients’ trust shows the perfection with which it is working.
 The Institute of Chartered Accountants of India has also carried out the Quality Control
Review and has issued a satisfactory QCR report stating that the firm has conducted the
audits of the clients in accordance with International Standards on Auditing.
 Moreover, the project indirectly helps me to learn discipline myself, be patient and take
initiative and the ability to solve problems. Different tasks allocated to me helped in
sharpening my skills and developing new ones.