SUMMER INTERNSHIP REPORT

ON
Study on How a C A firm Works.

SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF

THEDEGREE OF
BACHELOR OF COMMERCE B.Com (H)
2015-2018

UNDER THE GUIDANCE OF

Dr Renu Vashisht
(Assistant Professor)

SUBMITTED BY:
VISHAL SHARMA
Enrollment No.-12817788815
B.Com (Hons)

Vivekananda Institute of Professional Studies

AU Block (Outer Ring Road)Pitampura
Delhi - 110034
 TABLE OF CONTENTS

Chapters Contents Page No.

CERTIFICATE 1
DECLARATION 2
ACKNOWLEDGEMENT 3

CHAPTER-I: INTRODUCTION
1.1Introduction: 4
1.2 Objectives of Study 5
1.3 Scope of Study:
5
1.4 Company Profile 6

CHAPTER-II: LITERATURE REVIEW

CHAPTER –III RESEARCH METHODOLOGY

CHAPTER-IV: ANALYSIS OF DATA

CHAPTER-V: DATA INTERPRETATION

CHAPTER-VI SUMMARY & CONCLUSIONS

6.1Results of the Study
6.2 Limitations:
6.3 Suggestions
6.4 Conclusion

BIBLIOGRAPHY

APPENDIX
Certificate

1
 Decleration

I Vishal a student of Bcom Hons Final year at Vivekananda Institute of Professional Studies hereby
declare that the Summer Internship Report entitled “ Study on how a CA firm works” is an original
work and this report is submitted in the partial fulfilment of requirements for the award of the
degree of Bachelor of Commerce with Honours and the same has not been submitted to any other
Institute for the award of any other degree or diploma.

(Vishal Sharma)

2
 ACKNOWLEDGEMENT

The present work is an effort to throw some light on “Study on How a C A firm Works.”The work
would not have been possible to come to the present shape without the able guidance, supervision
and help to me by number of people.

With deep sense of gratitude I acknowledge the encouragement and guidance received by my
organizational guide Mr Vipul Gupta and other staff members.

I convey my heartfelt affection to all those people who helped and supported me during the course of
completion of my Project Report.

Vishal Sharma
Enrollment No. 12817788815

3
Chapter 1

Introduction

Organization is working as a Chartered Accountants firm under the rules and regulation and code of ethics
designed for CA firms by ICAI ( The Institute of Chartered Accountants of India ) .

The Institute of Chartered Accountants of India was established as statutory body on July 1.1961 under
Chartered Accountants Ordinance , 1961 to regulate the profession of accountancy in the country.

ICAI is governed by the Council which consists of nineteen members. Fifteen members are elected from
amongst the members for a period of four years. The remaining four of the Council members are
nominated by the Government of India.

Visions of ICAI is :

The profession of chartered Accountants in India should be the benchmark of professional excellence
upholding the principles of integrity, transparency and accountability.

Mission of ICAI :

Is to achieve excellence in professional competence, add value to businesses and economy, safeguard
public interest; ensure ethical practices and good corporate governance while recognizing the needs of
globalization.

These kinds of firms provide different kinds of professional services like audit, taxation and management
consultancy to its clients.

The Chartered Accountancy course is conducted by the Institute of Chartered Accountants of India, which
has its headquarters in New Delhi, 5 regional offices (Calcutta, Kanpur, Chennai, Mumbai and New
Delhi) and 81 branches under these regional centres.

4
1.2 Objectives of study

I choose to work with Mars and Associates . During the internship I have learnt many new skills.
Before internship I have only theoretical knowledge about work in organization but now I have
some practical knowledge of working in organization. Now I have knowledge about the
organisation’s working environment and how organizations work and achieve their goals and
objectives.

This internship has to gives me the understanding of business and also about elements of
strategic thinking, planning and implementation and how these things are applied in a real world
organizations environment.

These are the objectives that I have in mind before working as an internee :-

1. To improve communication skills.

2. To analyze the business situation.
3. To establish high standard in professionalism.
4. To learn more than theoretical knowledge.
5. To make quick decision in real situation.
6. To get knowledge of opportunities and threats while entering into an organization.
7. To plan the future for of oneself and learn how to adjust in an organization.
8. To compare practical concept with theoretical aspec

1.3 Scope Of Study

The project scope involves the Study on How a CA firm work as in India as well in abroad CA
plays a crucial part in filing Income Tax and Auditing of the Company. The information in the
report has been collected from secondary Source as well as from our mentor in the Internship
programme.

5
1.4 Company Profile

Mars and Associates is a leading chartered Accountancy firm rendering comprehensive

professional services which include audit, management consultancy, tax consultancy accounting
services, manpower management, secretarial services etc.

Mars and Associates is a professionally managed firm. The team consists of distinguished
chartered accountants, corporate financial advisors and tax consultants. The firm represents a
combination of specialized skills, which are geared to offers sound fianacial advice and
personalized proactive services. Those associated with the firm have regular interaction with
industry and other professionals which enables the firm to keep pace with contemporary
developments and to meet the needs of its clients.

CORPORATE SERVICES

Incorporation of company

Consultancy on Company Law matters.

Planning for Mergers, Acquisitions,

De-mergers, and Corporate re-organizations

. Filing of annual returns and various forms, documents.

Maintenance of Statutory records

Consultancy on Public/Rights/Bonus Issue of shares.

Change of Name, Objects, Registered Office, etc.

6
AUDIT

Broadly, Audit involves the following:

 In-depth study of existing systems, procedures and controls for proper understanding.
Suggestions for improvement and strengthening.

 Ensuring compliance with policies, procedures and statutes.

 Comprehensive review to ensure that the accounts are prepared in accordance with
Generally Accepted Accounting Policies and applicable Accounting Standards/IFRS.

 Checking the genuineness of the expenses booked in accounts.

 Reporting inefficiencies at any operational level.

 Detection and prevention of leakages of income and suggesting corrective measures to

prevent recurrence.

 Certification of the books of account being in agreement with the Balance Sheet and
Profit and Loss Account.

7
Chapter 2 Review of Literature

8
JOB DESCRIPTION

I have tried my best to enhance my abilities and apply the knowledge that I gained during
the studies. On my first day at firm, company secretary Miss. Nensi Goyal gave me
training session about TDS returns and computerised accounting in tally software. Mr.
Rahul Goyal (assistant) also shared his practical experience with me and gave me some
techniques of this process. He also guided me that how to prepare VAT return and
creating data in income tax return preparation software.

Different task that I performed during my internship:

1. Maintenance of accounts/ book keeping.

2. TDS return preparation.

Software used during internship:

1. Tally software
Overview of TDS

Tax deducted at source (TDS) is a tax that is deducted from income that a company in India pays
to a recipient or supplier if the income amount exceeds a specific statutory limit in a financial
year.

The types of income that are subject to TDS include:

Salary. Interest and dividends.

Winnings from the lottery.

Insurance commission.

Rent.

Fees from professional and technical services.

Payments to contractors and subcontractors.

The withholding amounts for TDS can be deducted from an invoice submitted by a supplier or
from the payment that is issued to the recipient or supplier. Examples of recipients and suppliers
include contractors, providers of professional services, employees, and real estate landlords.
Companies submit a TDS certificate to each supplier on a monthly or yearly basis. The
certificate includes the payments, as well as information about the company and supplier.
Companies must also submit an annual return to the government for each recipient or supplier
for the financial year. TDS certificate can be either Form 16 (R75I10A) or Form 26Q-P2P-IND
(R75I122EQ). Form 16 is the TDS certificate which an individual submits and Form 26Q is the
TDS certificate which a company submits to the tax authorities.
TDS must also be deducted from payments issued to third parties by both corporate and
noncorporate entities. The entity must deposit the amount owed for withholding at any of the
designated branches of banks that are authorized to collect taxes on behalf of the government of
India. The entity must also submit the TDS returns, which contain details about the payments
and the challan for the tax deposited to the Income Tax Department (ITD).

For electronic TDS, companies must generate the Form 26Q for each financial quarter. This is a
statutory requirement for the ITD.
Process flow of TDS
Overview of Tally ERP 9

Journal entry

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

Creating a Journal Entry

Journal entries are usually used for finalization of accounts.

To pass a Journal Voucher,

Go to Gateway of Tally > Accounting Vouchers ·

Click on F7: Journal on the Button Bar or press F7.

For example, there may be entries made for interest accrued or interest due. If you have to
receive Interest from a party, the same can be entered using Journal Voucher.

1. Debit the Party

2. Credit the Interest Receivable Account

SPECIAL KEYS FOR VOUCHER NARRATION FIELD:

 ALT+R: Recalls the Last narration saved for the first ledger in the voucher, irrespective
of the voucher type.
 CTRL+R: Recalls the Last narration saved for a specific voucher type, irrespective of the
ledger.Allowing Cash Accounts in Journals
Journals are adjustment entries, which do not involve Cash account and Bank account. However
in exceptional cases where the user would like to account Journal entries involving Cash/Bank
Account, Tally.ERP 9 has the flexibility of passing such entries by enabling the option under F12
configuration.

To enable Cash Accounts in Journal voucher

To pass a Journal voucher with Cash/Bank Ledger,

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

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

Debit Note Entry

Debit Note is a document issued to a party stating that you are debiting their Account in your
Books of Accounts for the stated reason or vise versa. It is commonly used in case of Purchase
Returns, Escalation/De-escalation in price, any other expenses incurred by you on behalf of the
party etc.

Debit Note can be entered in voucher or Invoice mode.

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

· To use it in Voucher mode you need to enable the feature in F11 :Accounting Features

- Use Debit / Credit Notes.

· To make the entry in Invoice mode enable the option F11: Accounting Features - Use invoice
mode for Debit Notes.

To go to Debit Note Entry Screen,

Go to Gateway of Tally > Accounting Vouchers ·

Click on Ctrl+F9: Debit Note on the Button Bar or press Ctrl+F9.

You can toggle between voucher and Invoice mode by clicking Ctrl+V.
Credit Note Entry

Credit Note is a document issued to a party stating that you are crediting their Account in your
Books of Accounts for the stated reason or vise versa. It is commonly used in case of Sales
Returns.

A Credit Note can be entered in voucher or Invoice mode.

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

· To use it in Voucher mode you need to enable the feature in F11 :Accounting Features - Use
Debit / Credit Notes.

· To make the entry in Invoice mode enable the option F11: Accounting Features

- Use invoice mode for Debit Notes.

To go to Credit Note Entry Screen:

Go to Gateway of Tally > Accounting Vouchers

1. Click on Ctrl+F8: Credit Note on the Button Bar or press Ctrl+F8. You can toggle between
voucher and Invoice mode by clicking Ctrl+V.

Special Keys for Voucher Narration Field

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

 I learned through my training program, that how I can

 Improve communication skills.

 Analyze the business situation.

 Establish high standard in professionalism.

 Learn more than the theoretical knowledge

 Learn book keeping practices of different companies.

 Apply the theoretical knowledge in actual organization

 Compare practical aspects with theoretical aspects.

 Make quick decision in real situation.

 Learn how promote and conduct research in business area.

 Promote my personal knowledge and professional preparation for future

 To properly integrate my theoretical knowledge and practical work.

 Plan for the future of oneself and learn how to adjust in an organisation.

 Know how to present your recommendations in front of your boss.

 Get knowledge of opportunities and threats while entering into an organisation.

 Get exposure to do a work in an organisation and also known about organisational

behaviour, ethical rules and regulations.
Suggestions

 They have good opportunity to introduce the ISO standards training program which no
other firm is giving to customer.

 Try to adopt new technologies that their competitors are not using.

 Make a network that allows its customers to negotiate with them easily.

 In comparison of Mars and Associates With its competitors has an edge to make an
accurate and error free report.

 The company has mostly professional educated human resources, which are the biggest
threat for their competitors.

 Mars and Associates . has the facility to give coverage even the small retailers for income
estimation who want to take loan from bank.

 Mars and Associates strongly needs to improve its network firms so as to be counted
among one of the extensively know firms in UP.

 The partner needs to make the best use of their goodwill to bring more clientage and
reputation to firm.

 Time to time financial bonuses or performance incentives will energize the staff.

 The trainees are not offered extra financial or any other incentive for the extra work or
over time.
 This causes some sort of mental stings which immediately needs to be overcome by the
management.
Limitations

 They have a small staff with shallow skills base in many areas.

 Less number of staff members. Developments in technology change this market beyond
Mars and Associates Ability to adopt.

 Change in government policies and procedures may act as threat for company

 A small change in focus of large competitor might wipe out any market position Mars
and Associates

 Mars and Associates Has many competitors.

 Under certain circumstances these competitors may act as a major threat for the
organisation.
Conclusion

 Mars and Associates is overall one of the profit making firm of Delhi

 The organization since its very first day is devoted to providing quality services.

 The detailed and through review of work and clients’ trust shows the perfection with
which it is working.