INTERNSHIP REPORT BACHELOR OF COMMERCE WITH COMPUTER APPLICATIONS B.COM (CA) SUBMITTED BY G.INDHU, II - BCOM.CA, ST JOSEPH COLLEGE FOR WOMEN, TIRUPUR -4 UNDER SUPERVISION OF S.M.SAIBU, AUDIT AND TAX CONSULTANTS RPR COMPLEX 2 ND FLOOR, KUMARAN ROAD, TIRUPUR DURATION ;(30 TH JAN,2023 TO 6 TH FEB,2023)

ST.JOSEPH'S COLLEGE FOR WOMEN (AN AFFILIATED TO BHARATHIYAR UNIVERSITY) KANGEYAM ROAD, TIRUPUR- 641604

DEPARTMENT OF COMMERCE WITH COMPUTER APPLICATIONS

CERTIFICATE This is to certify that the internship report is submitted by G.INDHU (Registered no:212AC1698). Is workd one by her and submitted during 2021-2024 academic year in the partial fulfillment of the requirements for the award of the degree of Bachelor of Commerce with computer Applications at SHAHIB &ASSOCIATES, TIRUPUR.

Head of the department Dr.G.AnanthiM.Com.,M.Phil.,Ph.D.,PGDCA.,

ACKNOWLEDGEMENT

It is a great opportunity and pleasure for me to express my profound gratitude towards all the individuals who directly and indirectly contributed towards the completion of this report.

Working on this report has a great fun., excitement, challenges, and an exposures in the field of auditing. I am greatly indebted under the guidance and the concern I am able to bring the report in its real shape.

I am thankful to SHAHIB and whole faculty members of the management department in providing me a useful guidance for the completion of the report. I convey my gratitude to all those who directly or indirectly related in the competition of this internship report.

INDEX 1.INTRODUCTION 2.BALANCESHEET 3.INVOICE 4.TALLY 5.CONCLUSION INTRODUCTION University is known to be the highest platform for gaining Knowledge. It helps to explore the field a student wants to study in and gives an opportunity to take the experience of that practical field. Practical field knowledge is also known as internship program of university. Internship is a very good way for a student to test the way he or she has chosen for future Career. Anyone can definitely change their in post-graduation stage if this experience does not match with their desired goals.

I have always wanted to pursue Chartered Accountancy after completion of my undergrade.

BALANCE SHEET

• The balance sheet adheres to an equation that equates assets with the sum of liabilities and shareholders equity. • Fundamental analysts use balance sheets to calculate financial ratios.

• Balance sheet provides an overview of the state of a the company’s financial at a moment in time.

• It cannot give a sense of the trends playing out over a longer period on its own.

• For this reason, the balance sheet should be compared with those of previous periods. • Investors can get a sense of a company’s financial wellbeing by using a number of ratios that can be derived from a balance sheet, including the debt- to- equity ratio and the acid- test ratio, along with many others.

• The income statement and statement of cash flows also provides valuable context for assessing a company’s finances, as do any

notes or addenda in an earning report that might refer back to the balance sheet. • The balance sheet adheres to the following equation, with assets on one side, and liabilities plus shareholders equity on the other balance out, Asset=liabilities • This formula is intuitive. • That’s because a company has to pay for all the things its owns (assets) by either borrowing money (taking on liabilities ) or taking it from investors (issuing shareholders equity).

• If a company takes out a five- year, $4000 loan from a bank, its assets (specifically the cash account ) will increase by $ 4000. • Its liabilities (specifically the long- term debt account) will also increase by $4000 balancing the two sides of the equation.

• If the company takes $8000 from investors its assets will increase by that amount as will its shareholders equity. • All revenues the company generates in excess of its expenses will go into the shareholders equity account.

• These revenues will be balanced on the assets side, appearing as cash, investments, inventory, or other assets. • Important: Balance sheets should also be compared with those of other businesses in the same industry since different industries have unique approaches to financing.

Special considerations • As noted above you can find information about assets, liabilities, and shareholders equity on a company’s balance sheet. • The assets equity.

should always equal the liabilities and share holders

• This means that the balance sheet should always balance, hence the name. • If they don’t balance, there may be some problems, including incorrect or misplaced data, inventory or exchange rate errors, or miscalculations.

• Each category consists of several smaller accounts that break down the specifics of a company’s finances. • These accounts vary widely by industry, and the same terms can have different implications depending on the nature of the business.

• But there are a few common components that investors are likely to come across.

Components of a balance sheet Assets Accounts within this segment are order of their liquidity.

listed from top to bottom in

• This is the ease with which they can be converted into cash in one year or less; and non-current or long term assets , which cannot.

Here is the general order of accounts within current assets: • Cash and cash equivalents are the most liquid assets and can include treasury bills and short term certificates of deposit, as well as hard currency.

• Marketable securities are equity there is a liquid market.

and debt securities for which

• Accounts receivable (AR) refer to money that customers owe the company. • This may include an allowance for doubtful accounts as some customers may not pay what they owe.

• Inventory refers to any goods and available for sale, valued at the lower of the cost or market price. • Prepaid expenses represent the value that has already been paid for such as insurance, advertising contracts, or rent. Long –term assets include the following: o Long term investments are securities that will not or cannot be liquidated in the next year. o Fixed assets include land, machinery, equipment, buildings, an other durable, generally capital -intensive assets.

o Intangible assets include non -physical (but still valuable) assets such as intellectual and

o These assets are generally only listed on the balance sheet if there are acquired, rather than developed in -house .

o Their value may thus be wildly understated ( by not including a globally recognized logo, for example) or just as wildly overstated. Liabilities

o A liability is any money that a company owes to outside parties, from bills it has to pay to suppliers to interest on bonds issued to creditors to rent, utilities and salaries. o Current liabilities are due within one year and order of their due date.

are listed in

o Long -term liabilities on other hand are due at any point after one year.

Current liabilities account might include • Current portion of long term debt is the portion of a long term debt due within the next twelve months.

• For example if a company has a ten years left on a loan to pay for its warehouse, 1 year is a current liability and 9 years is long term liability.

• Interest payable is accumulated interest owed ,often due as part of a past-due obligation such as late remittance on property taxes. • Wages payable is salaries, wages and benefits to employees ,often for the most recent pay period. • Customer payments is money received by a customer before the service has been provided or product delivered. • The company has an obligation to provide service or return the customers money.

that goods and

• Dividends payable is dividends that have been authorized for payment but have not yet been issued. All about invoicing and billing • An invoice or bill is an important written document that indicates the sale or supply by one business to another business or consumer. • It contains information about the particular sale transaction such as buyers details, quantity, value, tax, and payment terms.

• Many countries have laws governing the issue of invoice or bill, mostly associated with the indirect tax laws of that country • For instance in india the goods and services tax (gst) law has elaborate laws on invoicing format and issue of invoice or bill.

• Lets dive into the details of invoicing and billing.

What is an invoice? • An invoice is an document that describes the goods and services that a company offers to a customer and specifies the customers responsibility to pay for those products and services. • Invoices are the foundation of a small business accounting system . • An invoice details how much your clients owes you when payment is due and what services you rendered. • Invoices are the business records that allow companies to get paid for their services, so invoicing is critical for small businesses. • Invoices can be defined as ‘a list of goods send or services provided ,with a statement of the sum due for these ;a bill’.

Who uses an invoice , and what is the purpose? • For accounting, invoices are used as a source document. • Invoices are primarily used for keeping track of all the sales made and services provided. • Businesses use invoices for several reason such as follows: • Invoice forms the bases for requesting clients or customers to make payments on time. • To keep an account of the sales or supplies • To track the inventory of the business • Invoices can be used as historical data to predict future revenue. • To keep track of business income for tax purposes What is an invoice due date? •

When it comes to invoicing including a due date will help facilitate prompt payment

• In a general business context the due date refers to the latest date by when a payment can be made on an invoice before it becomes overdue or late • These dates signify that the payment is due and will result in several penalties and interest if the payment is not received by the due date

• Since an invoice is a legal document that is part of a sale, including the due date in the invoice will keep the consumer informed

• It eliminats any doubt about when the payment is due and eliminates the possibility of the denying information about the payment. Ideal format and contents of a invoice • When selecting the best invoice template to your businesses invoicing, its critical to think about the services or supplies or your clients needs, and your companies or business objectives • Finding the best invoice boils down to selecting a format that allow you to bill for your services while still receiving payment on time.

• Their suitable invoice format is created with your requirements in mind so that you can keep track of your invoicing. • You can bill clients of your supplies or sales, arrange account details, get paid correctly and have all of the information you need , including tax details with a professionally formatted invoice.

• Both charging of your supplies and receiving payment from your clients our customers can be made easy with the right invoice format • However you must first format and customize your invoice to meet your requirements • You should format your invoice with all relevant information to ensure that you get paid accurately and on time. • This knowledge will not only help your clients pay you, but it will also help you organize your company finances. • Your invoice would be more structured and streamlined if you use the correct format • Apart from business and customer needs the organization must abide by the gst laws and e-invoicing rules, wherever it applies An ideal invoice will have the following contents: • A header with your business name and logo • Invoice number or a unique identifier • Your business location and information • Invoice date • Descriptions of goods and services sold and quantity

• Additional charges ,fees or taxes • Total amount due • Payment terms • Due date A tax invoice should have the following components: • Name, address, and GSTIN of the supplier or seller. • HSN code or SAC for goods and service

• Invoice number, serially numbered and unique in every financial year • Type of invoices such as a tax invoice, supplementary invoice, or revised invoice • Descriptions of goods and services supplied

• Units or quantity of goods and services • Amount of columns

CGST ,

SGST,

IGST,

• State of supply and place of supply

or

UTGST in

separate

• Total amount of goods and services supplied

• Delivery address, in case it is not the same as the place of supply • If a reverse charge is applicable, then it must be duly mentioned

• Digital signature of a supplier or any authorized person

CONCLUSION • The work experience I encountered during the internship allowed me to develop specific skills like balance sheet, invoice ,tally. I think I still require to work on my other skills like excel, etc.,, But the overall experience was positive and everything I learnt would be useful in my future career in this field.