IN-PLANT TRAINING PROJECT REPORT

IN-PLANT TRAINING PROJECT REPORT

 

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Introduction:

Meaning of in-plant training:

 

 An in-plant training is meant to provide hands on experience to the students and the assist them in preparing for the career opportunities anywhere in the industrial world it’s a training usually conducted at the company premises o help him/her become aware with the work tacties. It would add a feather in the cap of the students as they would be able to enter into a new world with prior preparation and know how of the setup. This would not only help them boost their confidence but also will improve their work efficiency

 

PROGRAMME OUTCOMES (POs)

 

PO.1. Basic knowledge

PO.2. Discipline knowledge

PO.3. Application and practice

PO.4. Managerial/Secretarial Tools

PO.5.The profession and society

PO.6. Ethics

                        PO.7. communication

INTRODUCTION

IN PLANT TRAINING:

                                        In plant Training will provide an industrial exposure to the students as well as to develop their career in the high tech industrial requirements. Reputed companies are providing in plant training to students. Here students are initially get counseled in order to emerge out their interest in various streams and what are all the basic concept know on that domain.

                                After the successful completion of studies students has to face this competitive word with this knowledge to face many problems and to find the right solutions which is to be solved in the minimum duration of time. The in-plant training is get totally difference from the class environment.

TALLY

Introduction and History of Tally:

Introduction: Today we talk about the history of all versions of Tally. The initial release of tally was Tally 4.5 version. This is Dos (MS- DOS) based software released in the beginning of 1986s. It had basic financial accounting / book keeping tools personal computers had gaining popularity in India those days. Peutronics  (the company that develop tally) used this opportunity and put their tally version 4.5 on the market. Auditors  and accountants who used to maintain large volumes of hard-bound note books were amazed at the ability of tally  to calculate balance sheets and profit and accounts within seconds. All you need to do is just create ledgers and enter vouchers. Tally will do the rest. It will create all the statements, trial balance and balance sheet for you

History of Tally

                            The late shri S.S. goenka, founder of the company peutronis PVT, Ltd. Set up tally’s software business in 1986. His able mentoring of his son Bharat resulted in the creation of software that would simplify the process of financial accounting and inventory. Determined to create and develop a simple business accounting software, Bharat spent months in the research and development of path breaking technologies, which would assist him in achieving his goals. His dedication and focus led to the development of the commercial product. it was at this stage that peutronics  PVT. Ltd.

Meaning:

                Tally is a financial accounting software package. It is used to store and maintain the daily business transactions like purchase, sales, receipts, payments, purchase return, sales return, transfer, withdraw.

                 Tally is a complete business solution for any kind of business enterprise. It is a full fledged accounting software.

Definition:

                    A tally is a record of amounts or numbers which you keep changing and adding to as the activity which affects it progress.

                   Tally is one of the most popular accounting software, used in small and medium business organizations. It performs accounting functions typically associated. With such firms.

 

 

Basic concepts of Tally

Accounting:-

                   It is an art of recording classifying and summering in  significant manner and in terms of money, transactions and events which are of financial character and interpreting the results there of

Business transaction:-

                  A business transaction is “the movement of money and money’s worth from one person to another

Purchase:-

                   A purchase means goods purchased by a businessman from suppliers

Sales:-

Sales is goods sold by a businessman to his customers.

Purchase Return (or) Rejection in (or) Outward Invoice:-

Purchase return means the return of the full or a part of goods purchased by businessman to his Suppliers.

Sales Return (or) Rejection out (or) Inward Invoice:-

       Sales Return means the return of the full or a part of the goods sold by the customer to the businessman.

Assets:-

          Assets are the things and properties possessed by a businessman not for resale but for the use in the business.

Liabilities:-

           All the Amounts payable by a business concern to outsiders are called Liabilities.

 

Capital:-

            Capital is the amount invested for starting a business by a person.

Debtors:-

              Debtor is the person who owen amounts to the businessman.

Debit:-

           The Receiving aspect of an transaction is called Debit or Dr.

Credit:-

          The giving aspect of a transaction is called Credit or Cr.

Drawings:-

              Drawings are thenamounts withdraw by the businessman from his business for his personal Private and Domestic purpose.

Receipts:-

              It is a document issued by the receiver of cash to the giver of cash acknowledging the cash received voucher.

Account:-

               Account is a summarized record of all the transactions relating to every person, everything or property and every type of services.

Ledger:

The Book of final entry where accounts lie.

Journal entries:

                     It is Statement of all the ledger account balances prepared at the end of particular period to verify the accuracy of the entries made in Books of Accounts.

Profit:

Excess of Credit side over Debit side.

Profit and loss a/c :

                  It is prepared to ascertain actual profit or loss of the business.

Balance Sheet:

                     To Ascertain the financial position of the business.  It is a statement of Assets and Liabilities.

Following are some of main uses of tally (or) features

  1. Accounting.
  2. Billing.
  3. Ratio analysis.
  4. Banking.
  5. Inventories.
  6. Taxation.

Accounting:

             Accounting or accountancy is the measurement, processing, and communication of financial information about economic entities such as businesses and corporation

Billing:

         Billing is a crucial part of any business organization. This is actually kept under the accounting feature but has several other functions. The most fascinating functions of this is that tally reduces redundancy by creating on accounting entry as soon as you create a billing entry these preventing you from duplication work when dealing with a large amount of data.

Ratio analysis:

     When you create vouchers, tally display many important ratios, this option is called ratio analysis

Banking:

     This function was not present pin the older versions of tally, but has been included in ERP 9 through this function you can directly create deposit slips, print cheque payment advice and maintain a cheque register

Inventory:

     A well maintained inventory helps reduce loss and wastage. Tally is of immense help in this regard, especially if the environment involves manufacturing you can go one step further to classify inventories with regard to.

  • Groups
  • Units
  • Tariff
  • Stock items
  • Godowns

Taxation:-

     Not only does tally calculated the amount of tax that needs to be paid at the and of the particular accounting period.

Different functions like:

  • Credit note. Debit note
  • Contra
  • Reverse journal
  • Payment
  • Receipt
  • Sales
  • Memos
  • Purchases

Objectives of accounting tally

  • Keeping systematic record
  • Protecting properties of the business
  • Communication the results
  • Meeting legal requirement
  • To ascertain the financial position of the company
  • To facilitate rational a decision-making.

About Voucher:

     The detailed information contained in a voucher includes the payee’s or Vendor’s name, the invoice date, the monetary amount and the due date of payment, details of the transation, the accounts or accounts codes to be Debited and Credited in the accounting books, and other relevant information.  The voucher is also serially numbered to facilitated control.

     Upon Verification, the voucher is Submitted to an authorized official for approval.  Once approved the vouchers is recorded in the “Voucher Register”.  The voucher register takes the place of the purchase journal.  The journal entry in the voucher register often includes a debit to am Asset and an expense or purchases account with a corresponding credit a vouchers payable or account payable luckily, there is a system that can help   called the voucher system.

Voucher Defined

        A Voucher is a pre-numbered documents used in processing payments this document is typically prepared by the accounts payable department after receiving of the supplier invoice is matched with the related purchases order and receiving report to ensure that only goods received and service rendered to the company will be processed for payments matching these three document prevents the company from paying in corrects and sometimes fraudulent invoices.

      A voucher can be electronic but most often it is a manual paper document

Meaning voucher

          Voucher is known as the evident for the support of a transaction in the books of account. It may be bill, Receipts, Requisition from  agreements, decision, banks paying slop etc.

     The act of examining documentary evidence in order to ascertain the accuracy of entries in the account books is called “voucher”

    Vouching is a technical term which refers to the inspection by the auditor of documentary evidence supporting and substantiating a transaction.  Simply stated vouching means a careful examination of all original evidence that is invoice, statements, Receipts, correspondence, minutes and contracts etc with a view to ascertain the accuracy of the entries in he books of accounts and also to find out as for as possible that no entries have been omitted in the books of accounts. Therefore vouching is the Act of testing the truth of entries appearing in the primary books of accounts . It is initial for auditing. A voucher is a documentary evidence in support of a transaction in the books of account.

 

Objectives of voucher

    Main objectives of vouching is find out the regularity or irregularity of transactions frauds and errors regularity means maintaining record and performing the works compliance with the rules regulation and law. But irregularity means doing the work crossing to the line of rules regulation and laws some of the major objectives of vouching are given below.

  1. To Detect Errors and frauds:

             All transactions are to be supported by evidence. Each documents should be proved by authorized authority with the help of vouching we can detect errors and fraud by verifying each transaction planned fraud can be detected through vouching.

  1. To know the trust of accounts:

           Each and every transaction is checked and ratified on the basis of support document so we can easily know the truth of account.

  1. To find the unrecorded transactions:

Each and very transaction is checked and ratified on the basis of document vouching helps to find out the unrecorded for missing transaction if any voucher found unrecorded auditor can suggest to record such transaction.

  1. To know that all the transaction are authorized:

                 It the transactions are made on the consent of concerned authority such transactions are known as authorized transactions. If transactions are not authorized such transaction can be fictitious transactions so such fictitious transaction can be found with the help of vouching.

  1. To know that only the business transactions are recorded:

            Sometimes, transactions are performed for individual purpose but payment is made out of business such transaction should not be recorded in account of business. It such transaction are recorded we can find it with the help of vouching to know the real profit of loss of business such transaction are to be separated.

Importance of voucher

Vouching is the act of checking evidential documents to find out errors and frauds and to know the authenticity, accuracy and reliability of books of accounts. Thus it is important for an auditor due to the following reasons.

  1. Vouching is the backbones of auditing :

      Main aim of auditing is to detect error and frauds for providing the true and fairness of results presented by income statement and balance sheet vouching is only the way of detecting all sorts of errors and planned frauds so it is the backbone of auditing.

  1. Vouching is the essence of auditing :-

                                   Auditing not only checks the accuracy of books of accounts but also checks when there the transactions are related to business or not all the transaction are performed after the prior approved of concerned authority or not transactions are real are not because an accountant may include fictitious transactions to commit frauds. All there can be found with the help of vouching so vouching is essential for auditing.

  1. Vouchering is important to see weather Evidence are correct or not:-

An auditor chief the books of a/c to defect errors and fraud. Fraud may be committed prescribing duplicate voucher. All the small and big amounts of frauds can be defected with the help of vouching.

   So all the evidential documents and record are to be checked carefully and in detail by auditor checked is the scape of vouchering.

  Therefore it can be said that vouching is the heart of auditing because without the work of vouching the work of auditing cannot be performed

           Principles or Techniques of vouching:

      All the time of vouching auditor should keep in view the following important principles in his mind.

  1. Arranged Voucher:

                          First of all auditor should check all the vouchers provided by the client are property arranged.  There are in the some order as the entries are made in the books.

  1. Checking of Date:

The auditor should compare the date by the voucher with he date recorded in the cash book.

  1. Compare the words and figure:

             The auditor should himself amount written numbered conseciritively.  All the vouchers should be property filed on the vouches.  Its figures and words are same or not.

  1. Checking of Authority:

The auditor should examine are passed by the authorized officer of the voucher is passed by unauthorized person it will not be correct.

  1. Cutting or change:

               If there is any cutting on change on the receipts and vouchers figures it should be signed by the authorized officer.  The auditor should satisfy himself by inquiring about it.

  1. Transaction must relate to Business:

 The auditor should carefully examine that the entries must relate to the Business.

  1. Case of personal vouchers:

 The auditor should not accept the Voucher in personal name.  There is a chance that an officer of the company has purchased any item in his personal capacity.

  1. Checking of Account Head:

 Auditor must be satisfied about the head of account on which cash is deposited and drawn he should examine the documentary evidence in this regard.

  1. Revenue stamp:

                 The auditor should also check that voucher bears a required revenue stamp or not.

  1. Case of cancelled Voucher:

The auditor should not accept the cancelled voucher. Because it has already served the purpose of payment.  There will be danger of doubt payment if it is accepted.

  1. Important notes:

The auditor should take some important notes about those items which need further evidence or explanation.

  1. Payments:

           The auditor should check that whether payment is described partially of for complete transaction of sale.

  1. Agreements:

Here provide the basic information to the auditor.  He should check the agreement correspondence and other relevant papers.

  1. Printer Voucher:

 Printer voucher are considered true and there are legally acceptable.  If there are not printed then there are useless.

  1. List of missing vouchers:

Auditor should prepare the list of missing voucher. This list will be helpful in detecting the fraud and errors.

Trading, Profit and loss, Balance sheet

Meaning of trading account

        In investment terminology the term trading account refers to funds or securities deposited with a financial Institution or broker for the purpose of speculation.  A trading account is usually over seen by an investment dealer, fund manager personal trader.

Definition of trading account:

    Trading account is an account at a financial institution and administered by an investment dealer at the account holder uses to employ a trading strategy rather than a Buy-and-hold investment strategy.

Importance of trading account

  • Trading account helps to know gross profit or loss.
  • Trading account provides information about the direct expenses.
  • Trading account provides safety against possibilities of loss.
  • Trading accounts helps in comparison of closing stock with last year stock.

Objectives of trading account

  • While fixing the selling price of merchandise, trader adds a fixed percent of cost as profits to the cost and later on by preparing the trading account verifies whether the projected profit has been earned or not.
  • It Gross profit is more than projected profit, efforts are made to maintain it in future.
  • Trading account also helps to ascertain the percentage of direct expenses over sales.
  • Trading account also provides the percentage of gross profit to sales.

Introduction to profit and loss account:

     Profit and loss account is prepared after the preparation of trading account. The main objective of preparing profit and loss account is to achieve the operating results of a company at the end of accounting period.

     Profit and loss account is a nominal account having debit side and credit side.

     All the indirect expenses are recorded in the debit side of the profit and loss account and all the incomes except sales and clearing stock are recorded in the credit side of the profit and loss account.

     In profit and loss account if debit side is excess than the credit side the difference is called net loss.

     If the credit side of the profit and loss is excess than the debit side the difference is called net profit.

     Net profit amount of profit and loss is transferred to the credit of profit and loss appropriation account and net loss of profit and loss account is transferred to the debit side of profit and loss appropriation account.

     Profit and loss account helps to ascertainment net profit or net loss from business operation.

Advantages or Importance of profit and loss account

  • Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period.
  • Profit and loss account gives the actual information about indirect expenses.
  • Profit and loss account serves to determining the ratio between net profit to sales.
  • Profit and loss account helps determining the ratio between net profit to operating expenses.
  • Profit and loss account helps in controlling indirect expenses.

              “The profit and loss shows the profit and loss account shows the profit or loss of a business over a given period of time. Example: 3 months, 1 year etc… one of the most important objectives of a business is to make a profit. Typically the profit and loss account will show the revenues received by a business and the costs involved in generating that revenue.”

Definition of Balance sheet:

     A balance sheet is a statement of the financial position of a business which states the assets, liabilities and owners equity at a particular point in time.

The income statement which shows net income for a specific period of time, such as a month, quarter or year.

     One of the main financial statements the balance sheet reports the assets, liabilities and owners(stock holders).

     The balance sheet is also referred to as the statement of financial position.

Objectives of Balance sheet:

  • Principal objective: The main purpose of preparing balance sheet is to know the financial position of the business at a particular date.
  • Subsidiary objectives: though the main aim is to know the exact financial position of the firm at a particular date, yet is serves other purpose as well.
  • It gives information about the actual and real Owners equity. Though the capital of owner indicates Owners equity. Yet some other liabilities are to be accounted for against it also.
  • It helps the firm to make provisions against possible future losses. A provision is made in the form of the reserves.

Importance of Balance Sheet:

  • It assets the financial position of a company showing the true and fair picture of assets and liabilities.
  • If depicts the nature and value of different kinds of assets.
  • It also provides relevant information regarding sources of funds and the applications.
  • It is also good importance for fixing the purchase consideration of the company.

 

 

  ABOUT INCOME TAX

Income tax is an important direct tax. It is important source of revenue of central government. A major portion of income tax collected by the central government and distributed to state government

Income tax:

An income tax is a tax that governments impose on financial income generated by entities within their jurisdiction. By low, business and individual must file an income tax return every year to determine whether they we any taxes are eligible for a tax refund.

Different types of tax

Direct tax: direct taxes are those taxes where the impact and incidents of such taxes fall on the same person. There is no shifting of the burden of taxes to another person.

Ex: income tax, wealth tax, professional tax etc.

Indirect tax: indirect taxes are those taxes where the impact and incident of such taxes fall on the different persons. There is shifting of the burden of taxes to other persons

Ex: excise duty, custom duty, sales tax etc

 

 

 

 

Objectives of taxation:

  • To rise government revenue for development and welfare programmes
  • To maintain economic equalities by imposing tax to the income earners and improving the economic condition of the general public.
  • To encourage the production and distribution of the production of basic needs and discourage the production and harmful ones.
  • To create employment opportunities to the people
  • To provide necessary amenities to the common people by utilizing the revenue.

History of GST

     On 6th may 2015 the loksabha passed the much delayed constitutional Amendment Bill to introduce goods and service tax(GST) paving  the way for a new bill on the uniform tax regime even as the congress apart staged a walkout in protest.

      The bill is set to be sent to a parliamentary committee for review by the Rajyasabha.

      The opposition congress has said that it favor the GST Bill but wants the amendments

Made to it by the BJP Government to be vetted by a select committee of the RajyaSabha where it has a majority.

      In the Loksabha the main opposition party walked out as bill was voted on clause by clause. Objecting that the changes made by BJP have not been referred to a standing committee before being brought to the house.

     The Bill conceived twelve years ago, being a constitutional amendment has to passed by both the houses of parliament by a two-third majority and once passed it needs ratification of more than half of the 29 states before there were some changes required in the basic Bill and all states were not in favour of various provisions of the Bill particularly in sharing of the revenue collected through GST.

 Meaning of Goods and Services Tax (GST)

     The Goods and Services Tax (GST) is a value added tax levied on most goods and services sold for domestic consumption. The GST is paid by consumer selling the goods and services.  In effect, GST provides revenue for the government.

Basics of GST:

     In an effort to make it easier to understand the proposed GST regime in India we have compiled 7 articles that can make it easier for a layman to understand the GST regime and its effects.

Objectives of GST

     The Goods and Services Tax which is being implemented from 1stjuly 2017 is proposed to be a unified tax for the entire nation the intended objective of GST 2017 is to replace a lot of others direct and indirect taxes like the VAT service tax, luxury tax etc.. GST is aimed to being comprehensive with most of the goods and services included in the GST bill but alcohol and petrol exempted. GST rate is proposed to be 27% which is for higher then the global standard of 16.4% for similar taxes our finance minister Mr.Arunjaitley on several association has mentioned that the rate is way too high where as some of the states want the rate to be still higher.  In this article we will look at the primary objectives of GST 2017 bill.

Primary objectives of GST

  • Ensuring that the cascading effect of tax on tax will be eliminated

2    Improving the competitiveness  of the original goods and services there by improving the  GDP rate too

  • Ensuring the availability of input credit across the value chain
  • Reducing the complication in tax administration and compliance
  • Making a unified low involving all the tax bases laws and administration procedures across the country.

What are the taxes that got replaced by GST?

     Unlike earlier when there were multiple taxes such as central excise. Services tax and state VAT etc., under GST there is just one tax. GST a categorized into CGST, SGST or IGST depending on whether the transaction is Intra-state or Inter-state.

What determines if CGST SGST OR IGST is applicable?

     To determine whether central goods and services tax (CGST) States goods and services tax (IGST) will bra applicable in a taxable transactions it is important to first know if the transactions is an Intra state or an Interstate supply.

     Intra-state supply or goods or services is when the location of the supplier and the place of supply ie., location of the buyer are in the same state. In Intra-state transactions a seller has to collect both CGST and SGST from the buyer the CGST gets deposited with central Government and SGST gets deposited with state government.

GST Advantages and Disadvantages:

     The GST is a value added tax (VAT) is proposed to be comprehensive indirect tax lay on manufacture, sale and compensation of goods as well as services at the national level. It will replace all indirect taxes levied on goods and services by the Indian central and state government though GST is considered to be a histories tax reform in India it also has some demerits we here would look to GST taxation and deal with its advantages and disadvantages.

 ADVANTAGES OF GST

  • GST is a transparent tax and also reduces number of indirect taxes.
  • GST will not be a cost to registered retailer therefore there will be no hidden taxes and the cost of doing business will be lower.
  • Benefit people as prices will come down which in turn will help companies as compensation will increase.
  • There is no doubt that in production and distribution of goods, services are increasingly used or consumed and vice versa.
  • Separate taxes for goods and services which is the present taxation system requires divisions of transactions values into value of goods and services for taxation, leading to greater complication, administration including compliance costs.
  • In the GST system when all the taxes are integrated it would make possible that taxation burden to be split equitably between manufacturing and services.
  • GST will be levied only at the final destination of consumption based on VAT principle and not at various points (from manufacturing to retail outlet).

This will help in removing economic distortion and brig about development of a common national market.

  • GST will also help to build a transparent and corruption free tax administration.
  • Presently a tax is levied on when a finished product moves out from a factory which is paid by the manufacture and it is again levied at the retail outlet when sold.
  • GST is backed by the GSTN, which all aspects of GST.

  DISADVANTAGES OF GST                                                                         

  • Some economist says that GST in India would impact negatively on the red estate market it would add up to 8% to the cost of new homes and reduce demand by about 12%.
  • Some expert says that CGST (Central GST), SGST (State GST) are nothing but new names for central excise /service tax, VAT and CST. Hence there is no major reduction in the number of tax layers.
  • Some retail products currently have only 4% tax on them after GST garments and clothes could become more expensive.
  • The aviation industry would be affected services taxes on Airforce currently range from 6 to 9% with GST this rate will surpase 15% and affectively double the tax rate.
  • Adopting and migration to the new GST system would involve teething troubles and learning for the entire ecosystem.

For the common man-items expected to get cheaper:

      The following things/items are expected to become cheaper under GST for the common man.

  • Prices of movie tickets may become cheaper in most states.
  • Dining in restaurants.
  • Two-wheelers.
  • Entry-level sadden (except small car).
  • SUVs and luxury or premium cars.
  • Washing machines.

For the common man items expected to GST costlier:

    The following things/items are expected to become costlier under GST for the common man:-

  • Mobile bills.
  • Renewal premium for life insurance policies.
  • Banking and investment management services.
  • Basic luxuries for a common man like WIFI and DTH services online booking of tickets may become costlier.
  • Residential rent.
  • Health care.
  • School fees.
  • Courier services.
  • Commuting by metro or rail may become expensive.
  • Aerated drinks.
  • Cigarettes and tobacco products.

Taxable person under GST:

     Taxable person under GST are persons who must have GST registration and are required to comply with all GST regulations. Find out if you require GST.

Different between Central GST, State GST, Integrate GST:

Different between Central GST, State GST, Integrate GST:

Auditing:

an audit is a systematic and independent examination of books account, statutory records document and vouchers of an organization to ascertain how for the financial statements as well as non-financial disclosures present a true and fair view of the concern. It also attempts to ensure that the books of accounts are properly maintained by the concern as required by low. Auditing has become such a ubiquitous phenomenon in the corporate and the public sector that academics started identifying an “audit society” the auditor perceives and recognizes the propositions before them for examination, obtains evidence evaluates the some  and formulates an opinion on the basis of his judgment which is communicated through their audit report.

Any subject matter may be audited auditing is a software measure since ancient times (Loeb and Shampoo 1 980) audit provide third party assurance to various shareholders that the subject matter is free from materials misstatement. The term is most frequently applied to audits of the financial info relating to a legal person, other areas which are commonly audited include secretarial and compliance audit, internal control quality management project management, water management and energy conservation.

Meaning of Audit :

               An Audit is an examination of account records to establish their reliability and other reliability of statement drawn there from.

A financial audit has basic objectives of examination whether the account s are true and fair it has an incidental objectives of detecting errors and frauds.

Definition:

H.M.Hanson

        An audit is an examination some International auditing guideline Auditing is independent examination of finance information of any entity with a view to expressing an opinion thereon.

Information technology Audit:

       An information technology Audit or information systems audit is an examination of the management controls within an information technology (IT) infrastructure. The evaluation of    obtained evidence determines if the information systems are safeguarding assets, maintaining data integrity, and operating effectively to achieve the organization goals or objectives, these reviews may be performed in conjunction with a financial statement audit internal audit or other form of attestation engagement

Importance of an Audit system to companies :

             Auditing is a means of evaluating the effectiveness of a company’s internal controls, maintaining an effective system of internal controls is vital for achieving a company’s business objectives a obtaining reliable financial reporting on its operations, preventing fraud and misappropriation of its assets, and minimizing its cost of capital both internal and independent auditors contribute to a company’s audit system in different but important ways.

  • Basic objectives.
  • Risk of misstatement
  • Fraud prevention
  • Cost of capital

Limitations of Audit of financial statement:

 

  • Inherent limitations
  • Use of professional judgment
  • Use of sampling
  • Management representations
  • Risk of fund
  • Time constraints
  • Independence threats
  • Scope

               Due to the inherent  limitations of audit. Auditors are only able to offer reasonable assurance over the truth and fairness of  the financial statement rather than absolute assurance. Inherent limitations of audit are discussed below;

Types of Auditing

 

  • Compliance Audit
  • Construction Audit
  • Financial Audit
  • Information systems Audit
  • Investigative Audit
  • Operational Audit
  • Tax Audit

Merits of Auditing

  • Access to the capital market
  • Lower capital cost
  • Determent to fraud and inefficiency
  • Operational improvements
  • Ownership
  • Amalgamating members of the company
  • Values of business
  • Gathering information about profit and loss
  • Confidentiality
  • Assessing the tax
  • Proof can be presented
  • Event of loss
  • Settlement of claims
  • Settlement of disputes
  • Reports
  • Maintaining reputation of the organization
  • Hugh quality perfection
  • Ethical behavior
  • Maximizing profit level
  • Impairments with quantity standards
  • Analytical procedures
  • Reconciliations of items
  • Accounting on auditing
  • Returning the loan
  • Provisions in budgets
  • No political

 ABOUT CASH BOOK

Journal in which all cash receipts and payments (including bank deposits and withdrawals) are recorded first, in chronological order, for posting to general ledger. Cash book is regularly reconciled with the bank statements as an internal auditing measure. In larger firms, it is commonly divided into two parts:

  1. Cash disbursement journal in which all cash payment.
  2. Cash receipts journal in which all cash receipts.

Definition of Cash Book:

     The book in which all cash transactions (either cash is received or paid) are primarily recorded according to dates, is called ‘Cash Book’.

Features of Cash Book:

  • It plays a dual role. It is both a book of original entry as well as a book of final entry. All cash transactions are primarily recorded in it as soon as they take place. So it is a Journal. So a Cash Book is also called a Ledger.
  • Only one aspects of cash transaction is posted to the Ledger account. The other aspects (ie., cash aspects) need no posting in cash account. Since the cash book is the substitute for cash account, no cash account is opened in the ledger.
  • It has two identical sides-left hand side, the debit side and right side, the credit side.
  • All the items of cash receipts are recorded on the left hand side and all items of cash payments on the right hand side in order of date.
  • The difference between the total of two sides shows cash in hand.
  • Its balance is verified by counting actual cash in the cash box.
  • It always shows debit balance. It can never show credit balance.

Advantages of cash book:

  • Daily cash receipts and cash payments are easily ascertained.
  • Cash in hand at any time can easily be ascertained through cash book balance.
  • Any mistake in the book can be easily detected at the time of verification of cash.
  • Since cash is verified daily. Cash book is always kept up to date.

Format of simple Cash Book:

 

Pass Book:

Definition of Pass Book:

“A book issued by a bank or building society to an account holder, recording sums deposited and withdrawn”.

 

Meaning of Pass book:

     Pass book or Bank statement is a copy of the account of the customer as it appears in the Banks books. When a customer deposits money and Cheque into his bank account or withdraws money he records these transactions in the bank column of his cash book immediately.

     Correspondingly the bank records them in the customer’s account maintained in its books. Then they are copied in a pass book and given to the customer with the computerization of banking operations bank statements (in lieu of pass book) are issued to the customers.

     Thus pass book is a record of the banking transactions of a customer with a bank. All entries made by a customer in his cashbook (bank column) must be entered by the bank in the pass book.

Importance of Pass Book:

  • All entries (credit and debited) till the time of updating it are mentioned in your pass book.
  • It’s like a written record which won’t fade away.
  • It’s not possible for anybody doing money transactions to remember each and every day debit and credits so an update pass book provides you with details.
  • At times when you go to a financer for financing small amount say up to 1 lakh or so they always ask for lost updated page of the pass book, they do this in order to see you financial states if it shows.

How it helps to customers and bankers:

     Pass book savings accounts are basic savings accounts where all of your transactions are recorded in a ledger or booklet. These accounts are great for those who prefer face-to-face banking transaction.

Safer transaction:

     Some people feel that pass book saving accounts offer safer transactions. Not everyone trust ATM machines. These customers want to actually see who is handling their money a pass book savings account allows who is handling their money. A pass book savings account allows for face-to-face contract that puts some people at ease.

Easy to focus on savings:

With a pass book savings account. You do not use an ATM card to withdraw your funds withdrawn your funds. Withdrawals must be made in person. If you want to make a withdrawals you will have put go to the bank fill out a slip and hand it to the teller. The transactions is entered in the pass book. This gives you more time to think about the transactions that it you simply swipe a card.

Security:

     One of the major advantages of having a pass book savings account it is that the bank insures your money.

Convenience:

     With a pass book savings account you have immediate access to your funds you can go to the bank and withdraw your money anytime you want with no penalty.

CONCLUSION

 

After the completion of in-plant training we enhanced competences and competitiveness in our respective area of specialization. We tried to redate the experience in the work place with the knowledge learned in the institute and applied the knowledge on the job without delay after studies.

We learned to bone soft skills appropriate to the work environment. Also get improvised in communication skills. We assessed career ability, knowledge and confidence as well as enhanced our market ability to the more competitive.

With experience, knowledge skills acquired during in-plant training we will be better prepare to the face working world.

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