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Puneeth 200903006
Puneeth 200903006
Puneeth 200903006
A
report
submitted
in partial fulfilment for
the award of the degree of Bachelor of Commerce (Hons)
Accounting in the Department of Commerce
Submitted by
Puneeth H B
200903006
Department of Commerce
School of Business and Commerce
Manipal University Jaipur 2022
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TABLE OF CONTENTS
S.No. Particulars Page No.
1 Declaration 3
2 Internship Certificate 4
3 Acknowledgement 5
4 Introduction 6-9
5 Literature Review 10-13
6 Research Methodology 14-26
7 Description of Work Responsibilities 27-28
8 Learnings from Internship 29
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Declaration
I hereby declare that the report titled “Analysis And Preparation Of Financial
Statements”, herewith submitted in partial fulfilment for the award of
“Bachelor of Commerce (Hons) Accounting” Manipal University Jaipur is an
authentic record of the research work carried out by me. The matter embodied
in this report has not been submitted for the award of any other degree or
diploma.
(Puneeth H B)
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INTERNSHIP CERTIFICATE
4
Acknowledgement
I have extended my supreme gratitude to Manipal University Jaipur for providing such
kind of opportunity for students to broaden their perception on how the real world in the
field of “Financial Industry” looks like as well as for organizing the whole internship
program and its effort to make sure that the whole internship program to achieve its
desired goals. Special thanks to Ms. Swati Jain (Assistant Professor, Department of
Commerce) for her continuous support during this period.
I would also like to express my special thanks to Mr. Mihir Akash, for giving me a chance
to spend my practice in his company and helping me in my day-to-day activities during my
internship time.
I extend my grateful thanks to the staff on the site, who help me with moral and material
needs as well as sharing their knowledge to improve my theoretical knowledge to the
practical works.
Finally, I would like to express my special thanks to my family and friends for helping me
in all aspects and appreciating me to spend my all time in the workplace during my
internship time.
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INTRODUCTION
The Avarthana Group was established in 2020 as a start-up, dealing mainly with
outsourcing business. It has a headquarters in Mandya, Karnataka. The founder, started the
company with the aim to provide top-quality services to his clients across Karnataka. The
founding team is a family full of highly educated and experienced professionals. From
Software development to manufacturing of Kashayam powder, the company is involved in
many activities of manufacturing as well as providing services. Most of the clients are
based in Karnataka with a few of them spread across India.
Position in Industry
The company is new to the market. Mandya is a small district with a population of fewer
than 1.32 Lakhs. The business is still in the early growth stage, hence it belongs to a fast-
growing early-stage start-up. Outsourcing is an informal sector here, hence determining the
exact number of competitors is quite tough. Although for a few products/services we
provide, fewer competitors exist in Mandya. For software and app development, hardly 3
companies exist and for Kashayam powder, no competitors in Mandya. But few
manufacturers within Karnataka are giving direct competition.
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Types of services/products given/produced
1) Kashayam Powder:
Brand Avarthana
Form Ground
2) Software Development
Custom software development services for startups are designed to transform ideas into
innovative, reliable, scalable and successful market-ready solutions. The challenges that
entrepreneurs and startups face can be solved. With flexible engagement models, company
help their clients speed up time to market, deliver stellar Proof-Of-Concept and MVP
solutions fast and on budget, develop new product features, support and maintain the
application.
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Front-End, UI and UX services
DevOps services
3) Web Development
Web development is a smart business strategy. With current technologies, it’s a common
practice to share the backend infrastructure across multiple platforms. Thanks to that, once
prepared, business logic can power web applications, mobile versions and even support
wearable devices like watches by sharing and synchronizing critical data across cloud API.
Product Designer
Frontend Developer
Backend Developer
QA
Scrum Master
4) App Development
The company also builds apps for IOS and Android devices using both native languages
and cross-platform alternatives. Even custom software development by making sure the
applications work smoothly on most used devices is also covered.
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Native Application
Cross-Platform Application
5) Outsourcing
Client Source:
Private Company
Government Company
Freelancer
The company always believes in the customer first and the client’s satisfaction is the most
important factor to determine the success of a project.
The main aim of the company is to assist clients with all their problems and ease their
lifestyles. The company is also aiming to become a market leader in outsourcing business
in Mandya within the next 3 years.
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Literature Review
Policy
1. The roles, responsibilities and duties appropriate to your designation or your internship,
will be specified by Company from time to time. Company may at any time, in its sole
discretion, upon notice to you, alter or otherwise modify these roles, responsibilities and
duties. Further, at any time, you may be required to provide services, directly or indirectly,
to Company and its affiliates and their interns, contractors and clients.
2. Your duration of the internship will be mentioned in the offer letter & max 4 hours each
day. During this time, you are expected to devote your time and efforts solely to Avarthana
work. You are also required to let your mentor know about forthcoming events (if there are
any) in advance so that your work can be planned accordingly.
3. You will be working remotely for the duration of the internship. There will be catch ups
scheduled with your mentor to discuss work progress and overall internship experience at
regular intervals.
4. All the work that you will produce at or in relation to Avarthana will be the intellectual
property of Obscure Research. You are not allowed to store, copy, sell, share, and
distribute it to a third party under any circumstances. Similarly, you are expected to refrain
from talking about your work in public domains (both online such as blogging, social
networking site and offline among your friends, college etc.) without prior discussion and
approval with your mentor.
5. We take data privacy and security very seriously and to maintain confidentiality of any
students, customers, clients, and companies’ data and contact details that you may get
access to during your internship will be your responsibility. Avarthana operates on zero
tolerance principle with regard to any breach of data security guidelines. At the completion
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of the internship you are expected to hand over all Avarthana work/data stored on your
Personal Computer to your mentor and delete the same from your machine.
6. During the appointment period you shall not engage yourselves directly or indirectly or
in any capacity in any other organization (other than your college). In the event of breach
of this condition, this appointment is liable to be terminated forthwith by the company. In
addition, you shall be liable to pay liquidated damages to the Company of an extent
estimated by the Company.
7. Under normal circumstances either the company or you may terminate this association
by providing a notice of 30 days without assigning any reason. However, the company
may terminate this agreement forthwith under situations of in-disciplinary behaviours.
8. You are expected to conduct yourself with utmost professionalism in dealing with your
mentor, team members, colleagues, clients and customers and treat everyone with due
respect
9. Obscure Research is a start-up and we love people who like to go beyond the normal
call of the duty and can think out of the box. Surprise us with your passion, intelligence,
creativity and hard work – and expect appreciation & rewards to follow.
10. Expect constant and continuous objective feedback from your mentor and other team
members and we encourage you to ask for and provide feedback at every possible
opportunity. It’s your right to receive and give feedback – this is the ONLY way we all can
continuously push ourselves to do better.
11. Have fun at what you do and do the right thing – both the principles are core of what
Obscure Research stands for and we expect you to imbibe them in your day-to-day actions
and continuously challenge us if we are falling short of expectations on either of them.
13. You will receive a certificate of completion of the internship at the end of your
internship period.
14. As per the management’s discretion you stand an opportunity to receive a letter of
recommendation if your performance throughout the internship stays praiseworthy.
15. You stand an opportunity to receive a Pre-Placement Offer subject to your overall
performance and management’s discretion.
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16. Obscure Research reserves the right to change the policies or terms of agreement at
any point in time and the decision will be binding on the candidate.
17. The Tenure of the internship can be increased or decreased upon mutual consent of
both the candidate and the Obscure Research management.
18. You will always abide by the company policy for throughout your tenure with the
organization.
1. Kashayam Department
2. Technology Department
Here, 3 highly skilled professionals take care of complete technological solutions for the
client.
Software Development
App Development
Website Development
3. Outsourcing Department
Since, this requires reaching out to clients directly and sourcing projects from both private
and government organisations. The founding team of the Avarthana group takes
responsibility for this department.
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Note: Since it’s a small venture, there isn’t a separate team of sales and marketing or
finance or operations.
Organisational Hierarchy
Key Personnel
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Research Methodology
The two main software that the company uses to record and analyse financial statements
are Tally ERP 9 and Microsoft Excel. Detailed description about the Tally ERP 9 and
Microsoft Excel are given below.
1. Tally ERP 9:
Tally. ERP 9 is one of the most widely used financial software. Tally ERP 9 reports can
help a business owner make informed decisions to increase efficiency, reduce costs, and
organize business operations. With Tally ERP 9, accurate, up-to-date business information
is available at your fingertips anytime. It provides a comprehensive solution for the
accounting and inventory needs of a business. It provides the capability to generate fully
accurate tax returns in a matter of minutes and is also capable of extracting, interpreting
and presenting financial data.
Versions of Tally
5.4 : Windows-based accounts with inventory.3 : 5.4 with online finalization, auditing and
import & export feature.
7.2 : 6.3 with VAT, TDS and service tax.
8.1 : 7.2 with FBT and excise duty.
9.0 : 8.1 with Payroll system, multilanguage and extra formatting feature.
Procedure to start Tally
Create company.
Master creation: Ledger and Voucher creation.
Transaction: Entry of voucher.
REPORTS : Auto created by tally.
IMPORT : Data import from excel totally.
Note:
Directory:
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The path to the location of Tally. ERP 9 data is displayed here. By default, the path
provided while installing Tally. ERP 9 will be displayed. However, you can press
backspace and specify the location in which you want the data to be stored.
Name:
Provide a name for the company that is being created. Primary Mailing details: The
mailing name and address details are picked from here for any report such as balance sheet
and statements of accounts.
i. Mailing Name:
The name provided for the company in the name field is automatically displayed here.
However, you can change it as per requirements.
ii. Fill in the company’s address.
iii. Country:
Select the country in which the company is located. This will allow users to choose the
statutory capabilities available for that country. In this example, the country selected is
India.
Iv. Fill in the relevant numbers in the Telephone No. and Mobile No. fields.
v. E-Mail:
Fill in the company’s official e-mail ID here. This will be used while e-mailing reports and
statements from Tally.ERP9
Ledger
It is also known as the principal book of accounts as well as the book of final entries. It is a
book in which all ledger accounts and related monetary transactions are maintained in a
summarized and classified form. All accounts combined together make a ledger
and form a permanent record of all transactions.
It is the most important book of accounting as it helps in the creation of trial balance which
then acts as a base for the preparation of financial statements.
Example:
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An account can be either an Asset, Liability, Capital, Revenue or Expense account. A few
examples of each are Furniture, Cash, Creditors, Bank Loans, Capital, Drawings, Sales,
Rent, etc
1. One way is to create a Single Ledger and another way is to create it with Multiple
Ledgers.
2. To create a ledger from the voucher screen by pressing ALT + C.
The process is almost the same as the single ledger method. Only one step is different.
Step 1 : From Gateway of Tally, go to Accounts Info.
Step 2 : Go to Ledger
Step 3 : Under Multiple ledger, Select the option Create
Step 4 : Fill the particulars in the Ledger Creation Screen :
Under Group: This option is similar to the Under option under Single Ledger Method.
For example, Furniture A/c, Electrical and Fittings will be under Fixed Assets group,
Investment in shares, Investment in Fixed deposit account under Investment group etc.,
This works well if we create ledgers under only one group. This type of ledger creation is
also not useful for creating Sundry debtors ledger and sundry creditors ledger as we have
to also fill up GST details of individual creditors and debtors while creating ledger account
for them.
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Trial Balance
A trial balance is a list of all the general ledger accounts (both revenue and capital)
contained in the ledger of a business. This list will contain the name of each nominal
ledger account and the value of that nominal ledger balance. Each nominal ledger account
will hold either a debit balance or a credit balance. The debit balance values will be listed
in the debit column of the trial balance and the credit value balance will be listed in the
credit column. The trading profit and loss statement and balance sheet and other financial
reports can then be produced using the ledger accounts listed on the same balance.
A trial balance is a bookkeeping worksheet in which the balance of all ledger are compiled
into debit and credit account column totals that are equal. A company prepares a trial
balance periodically, usually at the end of every reporting period. The general purpose of
producing a trial balance is to ensure the entries in a company's bookkeeping system are
mathematically correct.
Journal Entry
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a subsidiary ledger that is then summarized and rolled forward into the general ledger. The
general ledger is then used to create financial statements for the business.
The logic behind a journal entry is to record every business transaction in at least two
places (known as double-entry accounting). For example, when you generate a sale for
cash, this increases both the revenue account and the cash account. Or, if you buy goods on
account, this increases both the accounts payable account and the inventory account.
A voucher is a document that contains details of a financial transaction and is required for
recording the same into the books of accounts. For every transaction, you can use the
appropriate Tally voucher to enter the details into the ledgers and update the financial
position of the company.
Contra Voucher
Payment Voucher
Receipt Voucher
Journal Voucher
Sales Invoice
Accounting Vouchers
All entries which you made in these given accounting vouchers is effect on your current
accounting of your business.
F4: Contra-> Used for cash and bank entries and also fund transfer from one bank to
another.
F5: Payment ->Used for expenditure and payment to parties by cheque or cash.
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F6: Receipt -> Used for income and received amount from the parties by cheque and cash.
F7: Journal -> Used for adjustable and transferable entries.
F8: Sales -> Used for sales entries and income
F9: Purchases ->Used for purchased entry and expenses.
Ctrl+F8: Credit Note -> Used for sales return entries.
Ctrl+F9: Debit Note-> Used for purchases return entries.
F10: Reverse Journal: Used for rectifying any wrong entries. (Non-Accounting Voucher)
Ctrl+F10: Memo (Memorandum): Used for memorizing any entry in tally. ( Non-
Accounting Voucher)
Inventory Vouchers
These vouchers effect inventory reports in the business. All entries which you made in
these inventory vouchers are effect on your stock register.
ALT+F4: Purchases Order Voucher: Used to give purchases order to party.
ALT+F5: Sales Order Voucher: Used to received sales order from customer.
ALT+F9: Receipt Note Voucher: Used for recording goods received.
ALT+F8: Delivery Note: Used for recording goods delivered to a customer.
ALT+F6: Rejections Out: Used for records goods that are rejected and returned to a
supplier.
CTRL+F6: Rejections In: Used to record goods that are rejected and returned back by the
customer.
ALT+F7: Stock Journal Voucher: Used to record stock transfers from one location to
another
Alt+F10: Physical Stock: Used for recording actual stock physically verified or counted.
Tally Shortcuts
You have to use all these keys together to get these shortcut keys activated.
Common across
screens
2. Microsoft Excel
Excel is a spreadsheet program from Microsoft and a component of its Office product
group for business applications. Microsoft Excel enables users to format, organize and
calculate data in a spreadsheet.
By organizing data using software like Excel, data analysts and other users can make
information easier to view as data is added or changed. Excel contains a large number of
boxes called cells that are ordered in rows and columns. Data is placed in these cells.
Excel is a part of the Microsoft Office and Office 365 suites and is compatible with other
applications in the Office suite. The spreadsheet software is available for Windows,
macOS, Android and iOS platforms.
Microsoft released Excel in 1985 under the name Microsoft Multiplan. Microsoft's
spreadsheet program competed with similar products at the time, including Lotus 1-2-3
from the Lotus Development Corp. Although Lotus 1-2-3 was reportedly the first
spreadsheet to introduce cell names and macros, Multiplan used a graphical user interface
and enabled users to point and click using a mouse. Multiplan made it easier to manipulate,
process and view spreadsheet data.
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Initially, Multiplan lost popularity on Microsoft Disk Operating System (MS-DOS)
systems when competing with Lotus 1-2-3. Two years after its initial release, in 1987,
Microsoft introduced Excel version 2.0. By 1988, this new version, now on Windows
platforms, began to outsell Lotus 1-2-3 and other similar spreadsheet programs.
In 1990, Microsoft released version 3 of Excel, with features such as toolbars, 3D charts,
and drawing and outlining capabilities. Version 4 came along two years later and added the
auto-fill function. In 1993, version 5 of Excel was released. This version included Visual
Basic for Applications macros, which enabled regular tasks to be automated.
One of the next big updates to Excel was version 12, which was released in 2007. This
update used a new Ribbon menu system. Improved functions included a SmartArt set of
diagrams, better management of named variables and more flexibility for formatting
graphs. Excel moved to using the more structured and open XLSX files as well. Version
15 released in 2013 included new tools such as Power View, Power Pivot and Flash Fill.
This version also improved multithreading capabilities.
The current version of Excel, version 16, was released in 2019. Since its conception,
Microsoft Excel has become one of the most widely used business applications and is
often paired with other Microsoft apps such as Word, Outlook and PowerPoint. Although
Microsoft no longer updates Excel as different versions, it rolls out new features and
updates automatically over time.
Microsoft Excel is arguably one of the most popular spreadsheet applications and has long
since played a role in businesses. However, with the popularity of other current
spreadsheet software, Excel now has increased competition. The website askwonder.com
claims that the collection of apps in Google Suite, which includes Google Sheets, is used
by 2 billion users every month, whereas Microsoft Excel has an estimated 750 million to
1.2 billion monthly global users. Google and Microsoft do not publish monthly usage for
either spreadsheet program, so it is difficult to estimate values.
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Excel is most commonly used in business settings. For example, it is used in business
analysis, human resource management, operations management and performance
reporting. Excel uses a large collection of cells formatted to organize and manipulate data
and solve mathematical functions. Users can arrange data in the spreadsheet using
graphing tools, pivot tables and formulas. The spreadsheet application also has a macro
programming language called Visual Basic for Applications.
Excel has its own terminology for its components, which new users may not immediately
find understandable. Some of these terms and components include the following:
Cell. A user enters data into a cell, which is the intersection of a column and row.
Cell reference. This is the set of coordinates where a cell is located. Rows are
horizontal and numbered whereas columns are vertical and assigned a letter.
Active cell. This is the currently selected cell, outlined by a green box.
Workbook. This is an Excel file that contains one or more worksheets.
Worksheet. These are the different documents nested within a Workbook.
Worksheet tab. These are the tabs at the bottom left of the spreadsheet.
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Column and row headings. These are the numbered and lettered cells located just
outside of the columns and rows. Selecting a header highlights the entire row or
column.
Formula. Formulas are mathematical equations, cell references or functions that
can be placed inside a cell to produce a value. Formulas must start with an equal
"=" sign.
Formula bar. This is the long input bar that is used to enter values or formulas in
cells. It is located at the top of the worksheet, next to the "fx" label.
Address bar. This bar located to the left of the formula bar shows the number and
letter coordinates of an active cell.
Filter. These are rules a user can employ to select what rows in a worksheet to
display. This option is located on the top right of the home bar under "Sort &
Filter." An auto filter option can be selected to show rows that match specific
values.
AutoFill. This feature enables users to copy data to more than one cell
automatically. With two or more cells in a series, a user can select both cells and
drag the bottom right corner down to autofill the rest of the cells.
AutoSum. This feature enables users to add multiple values. Users can select the
cells they want to add and press the Alt and Equal keys. There is also a button to
enable this feature on the top right of the home page, above "Fill" and to the left of
"Sort & Filter."
PivotTable. This data summarization tool sorts and calculates data automatically.
This is located under the insert tab on the far left.
PivotChart. This chart acts as a visual aid to the PivotTable, providing graph
representations of the data. It is located under the middle of the insert page, next to
maps.
Source data. This is the information that is used to create a PivotTable.
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Description of Work Responsibilities
Puneeth had worked in CEO’s office as Financial Analyst Intern. His everyday tasks
revolve around recording transaction that occurs each day and arranging all these in a
particular order. Uploading all these transactions to the Tally ERP 9 and Microsoft Excel.
Since the organisation was small in size, he had the opportunity to report to the CEO on an
everyday basis. The role is like an assistant to the CEO himself. Work was not limited to
financial statements, many ad-hoc responsibilities from other fields were also given.
The company followed Traditional Office Layout, where enclosed office space was given
to each employee. A laptop was also given for work purpose.
Job Description
Laptop
Microsoft Excel
Tally ERP 9
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Learning from Internship
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Thank You
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