INTRODUCTION

INTRODUCTION
The theoretical knowledge regarding various subjects alone may not be sufficient to
survive in the competitive world of employment, the class rooms are in a transition from obsolete
theories to the practical application. No theory studied in a class rooms is useful unless it can be
applied in practical life. This is hundred percentages accurate in commerce subjects, especially
the subjects like accounting and taxation. Accounting and taxation are two streams that are
always necessary in the daily life of every human being who has certain transaction in the form
of money or near money in the day to day life. For the corporate entities, in one way the
accounting is life blood and taxation has greater implication since, the large profits of corporate
cause higher amount of taxes to be paid. Only an expert in the accounting and taxation can be
placed to the accounting and related department in the institution. For a student, the theories
learned and problems solved at the class room are not sufficient to become an expert in the
scenario, because it is all the students do as an exam oriented basis, so here the need for much
more practical knowledge which can be acquired through practical involvements in the business
of accounting and taxation.
In India the Institute of Chartered Accountants of India (ICAI) is the governing body of
accounting and which is the apex accounting body. For getting practical knowledge about the
Accounting and Taxation the professional members of the apex body is the better one. Internship
training will help the students to get practical exposure in this field. Auditing is the last step in
the accounting job. It is very hardest practice; it involves testing of true and fairness of
accounting statements using different techniques. Only an auditor can teach about how true and
fairness of the accounts can be checked.

Benefits of internship training

Internship will help to develop skills in the application of theory to real work.
Internship will help college students to build their career.
Internship programs enable a student to know whether he or she competent to do real
work.

Internships will provide students the opportunity to test their interest and knowledge in a

particular work before permanent commitments are made.

Internship will provide practical knowledge of real work.

OBJECTIVES OF THE STUDY

Internship training is purely focuses on attaining practical knowledge in the field of
accounting and taxation. The main objectives of internship training are as follows:
To get the practical experience in preparation of various accounting statements.

To get more information about various audit works with regards to individual, business,
partnership and so on.

To understand and practice various job roles in accounting profession.

To understand the techniques and practices involved in auditing and preparation and

presentation audit reports.

To know the implementation of tax affairs to the business, partnership and individuals.

TRAINING PERIOD
The internship training was scheduled for one month from 11 th December 2014 to 10th
January 2015. The working time was from 10.00 AM to 5.00 PM and office was holiday in
Sunday only. For an effective training in accounting, auditing and taxation a period of one month
is not enough. Anyway one month training has its own benefits and results.

AREA OF STUDY
Internship training done in auditing firm is the application of knowledge what we learned
from class room. The internship training covers the following areas of accounting and taxation.

Traditional accounting
Individual Accounting
Partnership Accounting
Audit Practicing and checking the errors.
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Preparing estimated financial statement.

VAT calculation
Tax calculation
Computerized accounting
Partnership dead
Winman.

Limitations of training
One month is very short duration, so it is very difficult to acquire all practical knowledge
in related subjects with this short time. It can possible only to understand what is going on there.
Because of Im the fresher trainer or Im the student they didnt give heavy works they give only
light works and most of the time I used to spend with staff for helping their original works.

TRAINING EXPERIENCE

TRAINING EXPERIENCES

INTRODUCTION
During one month period of internship training in K SURESH &CO from 11/12/2014 to
10/01/2015, I had different works related with accounting and taxation. The period of whole
month, i did different types of work as per the guideline of the auditor. The report regarding them
we have done is as follows.
Name of the Client

Type of client

Work done

PRIYA GENERAL

Sole trader

Preparation of final accounts

MERCHANT

using journal entry, daybook

and trail balance and prepared
final accounts into the excel

KEERTHY TRADERS

sheet.
Preparation

Sole trader

scheduled

of

different

goods

trading

account, profit & loss account

and balance sheet and made
M. RAMANAN

entry in the excel sheet.

Preparation of estimated

Individual

profit and loss account and

balance sheet for getting bank
CHERUKUTTY

loan.
Preparation of income and

Partnership

MOHANDAS

expenditure of lottery agent

using form 26 AS, TDS and

STAR PLASTIC

bank account.
Preparation
of

Sole trader

statement

financial

using

VAT

return(annual return form 10),

trail

balance

statement
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and

bank

K K MAHESHKUMAR

Goldsmith

Preparation of two partys

income

and

expenditure

account using bank statement,

LIC

(Premium

previous

year

Paid)

and

financial

statement and consolidated

MALABAR HALVA STORE

profit and loss account.

Preparation of daybook using

Sole trader

vouchers and made entry in

the excel sheet

Various works I did during the one moth internship period are as follows,
11-12-2014
The internship work started on 11/12/2013 at 10.00 AM. At first, Auditor addressed about some
general instructions could be followed in the institutions, its workers and their nature of work
etc
According to the initial guidelines, I checked the various ledgers like purchase account,
sales account, drawings account and capital account etc. and journal entries of Priya General
Merchant, 12/1055, Big Bazaar, and Calicut. All the financial transactions are first transferred to
concerned ledger accounts.
M. Aravindhakshan is the proprietor of the Priya General Merchant, his paid up capital is
3, 85,111.29. During this work I prepared separate account for sales i.e. exempted sales, 1%
sales, 5% sales, and 14.5% sales. They are recording their assets & expenses in the credit side
and income & liabilities in the debit side and I calculated input VAT and output VAT. I learn how
to make the J.FOLIO AND L.FOLIO numbering and also I Checked the closing balance and
opening balance of ledgers, the daybooks and its posting.
Performa of daybook and ledger
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Date

Particular

Folio

Da
y

Credit
Amount
Rs

Debit Amount
Ps

Rs

Ps

12-12-14
The second day of internship work started with checking closing stock and its opening
balances of different scheduled goods. There are different types of purchase (local purchase and
interstate purchase) and sales (exempted sales, 1% sales, 5% sales, and 14.5% sales). As per
guidelines from the auditor, I started with preparing payment of VAT. Following is the format of
finding the VAT paid.
month

VAT collected

input VAT

VAT paid

15-12-14
As usual the work started at 10.00 am. The work was the preparation of trading, profit and loss
account of the balance sheet for the year ended 31/3/2014 from the given preceding years profit
and loss account and balance sheet. There is an interesting thing I first did the paper work and
entered in the excel sheet. It is the great experience in my life, because we already done the book
problems, this time I got the real work of a firm.

16-12-2014
Reached at 10.00, I have a good opportunity to prepare partnership deed. As per
guidelines from the K. SURESH (advocate) the work started.
Contents of partnership deed;
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1. Name and style

2. Commencement and duration
3. Place of business
4. Objects
5. Capital
6. Interest on capital and current loan account of partner
7. Remuneration to partners
8. Profit and loss distribution
9. Management
10. Bank account
11. Accounting year
12. Maintenance of account
13. Remuneration of partner
14. Dissolution
15. Loan and advances
16. Collection of rentals
17. Miscellaneous
17-12-2014
I continued the same work of Priya General Merchant. Today I entered the trading, profit & loss
account and balance sheet into the excel sheet using the given preceding years profit and loss
account & balance sheet format. I studied many features in Microsoft excel i.e the calculation
techniques (equations), alignment, cell formatting and designing etc.
18-12-2014
As usual the work started at sharp 10.00 AM. I started the same work of Priya General Merchant.
I complete trading profit and loss account and balance sheet. Then, I Created schedules of sundry
debtors and sundry creditors because there is n number of parties. Entered all parties name and
their amounts, at this time I saw minute mistake in amount column. As per the guidelines from
the auditor I cleared the mistakes. Then I created depreciation schedule of fixed asset on the basis
of rate of depreciation prescribed by the income tax.
19-12-2014
With The initial guidelines I started my second work as per instruction of the chartered
accountant (Sandeep Suresh Kurikkallot). It was the partnership firm, sir explain the difference
between first work and this one and calculations of partners salary, interest on capital, etc.
Keerthy Traders is the partnership firm (turnover 18 cr). After the guidelines started the
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preparation of trading, profit & loss account and balance sheet. In the trading account there are
four types of schedules such as;
1.
2.
3.
4.

Schedule 1 = Rate of tax 0%

Schedule 2 = Rate of tax 1%
Schedule 3 = Rate of tax 5%
Schedule 5 = Rate of tax 14.5%

Each schedule has local purchase and interstate purchase, but in the case of sales only schedule 1
has interstate sales. Calculate the interest on capital @12% on partners capital.
20-12-2014
Today i started with same work of Keerthy Traders. Calculation of the commission sales and
VAT payments; there is a variation in VAT payment shown in the trail balance. After checking
previous year audit reports and financial statements, i started the preparation of trading, profit &
loss account and balance sheet.

22-12-2014
I reached at 10.00 AM as usual. I prepared notes about the miss understanding item, for getting
clarification from the auditor. Then I prepared trading, profit & loss account and schedules. Such
as follows;

Partners capital account

Sundry creditors
Fixed assets
Advances and deposits
Stock in trade (closing)
Sundry debtors

After that I Entered trading profit & loss account and balance sheet and its and schedules in the
excel sheet

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23-12-2014
As usual the work started at sharp 10.00AM. The work was the preparation of projected profit
and loss account and balance sheet of M Ramanan for the year ended 31/03/2013 and 31/03/2014
using the given preceding years profit and loss account & balance sheet. Firstly I estimated the
figures based on previous year balance sheet and profit & loss account. Following are the
supporting evidence of this estimated financial statement;
Bank statement
o Overdraft
o Savings account
Additional fixed asset
24-12-2014
I continued with the same work of M Ramanans projected profit and loss account and
balance sheet. I adjusted all expenses and incomes for getting projected net profit, and
completing the profit and loss account of Mr. M Ramanan. After completing paper work, I
entered into the Microsoft excel sheet.
26-12-2014
As usual the work was started at 10.00 AM and they gave the work of Mr. M Ramanan. I
entered the three years financial statements in Microsoft excel. Because of the lost the previous
year financial statements, we have only the paper report. It help to develop my typing skill,
designing and editing in the Microsoft excel.

29-12-2014
I continued the same work of Mr. M Ramanans personal account, correcting the prepared
profit & loss account and balance sheet with the help of auditor. Following are the works for
completing his personal account.
After that I started the calculation of interest rate of motor car and mini lorry, motor car
and mini lorry purchased on hire purchase system, there was a 3 year repayment loan in each
motor car and mini lorry. Absence of percentage of interest we estimate the percentage of hire
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purchase price (higher purchase price = actual cost of asset + (actual cost of asset*rate of
interest)).
30-12-2014
Today, I have a golden opportunity touse WINMAN. Winman CA ERP is the No.1 CA software
suite in India. This flagship product is a bundle of much software like Income Tax software,
Balance Sheet software; Service tax software, Wealth Tax software, Audit Report software etc.i
calculatd income from house property using winman and find the total taxable income and total
tax liability of Mr. M Ramanan. After finding tax liability and I select Create Chellan option
and click the Paper Chelan. Then generate chellan, submit the chellan into the SBI main branch
Kozhikode, there is a separate counter of Self Assessment Tax.
31-12-2014
This day of internship, I got a new work of finding the net profit after analyzing previous year
net profit percentage. The main purpose of this calculation was in the previous year we get 8.26,
if the current year rate is great difference in percentage of profit. It is cause to the scrutiny.
Net Profit = Total Collection X Percentage of Profit/100
At the same day, afternoon session I dont have any work because of New Year. So we are
deciding to find our New Year friend.
1-1-2015
I reached at 10.00 AM as usual. All staff and auditor celebrate the New Year and cut the cake and
gave to the gift to the New Year friend. Today I prepared income and expenditure of a C.
Mohandas, lottery agent. The financial statement was prepared with the help of Form 26 ASannual tax statement. It includes total commission received and other lottery receipt and
commission and discount.
2-1-2015
As usual the work started at 10.00 am. I continued the same work of C. Mohandas, lottery agent.i
calculated the commission amount and made entry in the income side of the income and
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expenditure account. Then I estimated net profit or excess of income over the expenditure. In the
previous year it is 61.40%.then I Completed the preparation of income and expenditure account.
I understand additional information from this work, if the lottery agents win any lottery there is
two treatments in that case. First one is shown in the income side of income and expenditure,
consider as operating income. Second one it is shown in the balance sheet.
5-1-2015
Today, the work started with the preparation of financial accounts (trading, profit and loss
account and balance sheet) of Star Plastic, M P Road, and Calicut. They are dealing three
different scheduled goods i.e. Schedule I, Schedule III, and Schedule V, and trade with local
purchase, interstate purchase and local sales.
Supporting documents
VAT Returns (annual return form no 10)
Trail balance
Bank statement

6-1-2015
This day of internship, I continued the same work of Star Plastic, M P Road, and Calicut. The
client created his own trading, profit and loss account and balance sheet. There is a variation in
clients format and our Performa while creating balance sheet. That is closing balance of
previous year balance directly carry forward into the current year balance sheet, there is no
adjustment made in the depreciation of fixed asset.
7-1-2015
I reached at 10.00 AM, this day I got a boring work preparing paper documents for record
keeping. And put seal to the all completed documents, and then categorize the documents year
wise. Then I sent the completed work to the head office in Bangalore via postal. The firm keeps a
record of all sent mails. For record keep purpose tagging same year documents and reports, and
keep files in its allotted places.
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8-1-2015
As usual the work started at sharp 10.00 am. The work started with the preparation of financial
accounts (income and expenditure account) of Mr. K K Maheshkumar (goldsmith), Vadakara,
Calicut. There are two parties P M Jewelry work and Sree Ram Jewelry work. Check the
previous year trading, profit & loss account and balance sheet. The party maintains consolidated
income and expenditure account and balance sheet of P M Jewelry work and Sree Ram Jewelry
work.
9-1-2015
I continued the same work of Mr. K K Maheshkumar. First complete the Sree Ram
Jewelry work. Then I started the work of P M Jewelry work, and complete it from the given
preceding years income and expenditure account and balance sheet. Following are the
supporting document of this work.
Bank statement
LIC (Premium Paid)
Previous year income and expenditure and balance sheet.
10-1-2015
As usual the work started at 10.00 am. I continued the same work of Mr. K K
Maheshkumar. Started with the preparation of consolidated income and expenditure and balance
sheet and entered it into the Microsoft excel sheet. After completing this work, I started the new
work of preparation of daybook using vouchers and entering it into the excel sheet of the
Malabar Halva Store.

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CHAPTER 4
CONCLUSION
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CHAPTER 4
CONCLUSION
The one month internship training under a chartered accountant is mainly focused to gain
practical knowledge in the field of accounting and taxation. The training was also aimed to
knowing behavioral approach of both the employees and employers. Actually one month is not
enough to get more knowledge in the field of auditing, we cannot cover all the practical aspects
of accounting and taxation in auditing field. If extent the one month internship training in the
auditing firm. It will help me to apply what I learned from classes and getting knowledge in
various activities like preparation of final accounts, vouching, computation of tax liabilities etc.

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