SUMMER TRAINING REPORT

ON THE JOB TRAINING

ACTIVITIES OF ACCOUNTS & FINANACE DEPARTMENT OF
MODULUS COSMETICS COMPANY AT GONDPUR HP

SUBMITTED IN PARTIAL FULFILLMENT FOR AWARD OF DEGREE

IN

MASTER OF BUSINESS ADMINSTRATION

2017-2019

BY

SAHIL
UNIVERSITY ROLL NO-17MBA0209

MBA DEPARTMENT
GOVT. P.G.COLLEGE UNA
(HIMACHAL PRADESH)
OCTOBER, 2018
 ACKNOWLEDGEMENT

This report, based on Fourty Five days study, is the part of MBA program, which helps me
to gather practical information, which is necessary for my future life. I would like to
express my deep respect to my honourable principle MR.TRILOK CHAND ,
COORDINATOR MR.DEVENDIR ATLAS and PROF.ASHOK KAPIL faculty
department of MBA Govt.p.g.college una for giving me his valuable time and all the
necessary guidance, which inspired me to prepare this report.

During this period I have gone through the various departments of modulus cosmetics
company and especially gathered knowledge about the Accounts & Finance department
with their great cooperation. In preparing the report I receive active cooperation from the
finance departments, Accounts controllers, senior officers and staff of modulus cosmetics
company. . This report suffers from many shortcomings although I have exerted my best
effort while preparing this report. I seek excuse for the errors that might have occurred in
spite of the best of my efforts.
 CERTIFICATE FROM THE CANDIDATE

I, SAHIL , student of MBA ( third semester) . Roll no .17MBA0209. do hereby certify that
the summer training report titled activities of finance and account department of modulus
cosmetics company Is a bonafide work carried out by me

Signature of the candidate:

Name: SAHIL
Branch: MBA-3RD
Univ.roll no: 17MBA0209
 CERTIFICATE FROM THE GUIDE

This is to certify that the summer training report work title activities of finance and account
department of modulus cosmetics company
Is a bonafide work carried out by SAHIL
Univ. roll no.17MBA0209
A candidate for the MBA 3RD examination of the MBA department govt. pg
college una (himachal Pradesh ) under my guidance and direction

SIGNATURE OF THE GUIDE :

NAME: ASHOK KAPIL

DESIGNATION: PROFESSOR
NAME OF THE ORGANIZATION: GOVT.P.G COLLEGE UNA

DATE:
PLACE:

SIGNATURE OF COORDINATOR :
CERTIFICATE FROM THE COMPANY
 PREFACE

As a part of mba curriculum and in order to gain practical knowledge in the field of
management , we are required to make report on job training
And I am done training in the finance and account department of modulus cosmetics
company gondpur (hp). The basic objective behind doing this project report is to get
practical knowledge about finance and account.

In this project report ,I have added various accounting concepts like entry of sales ,purchase
,contra entry,debit note entry,credit note entry etc.
 TABLE OF CONTENTS

CHAPTER- ONE ........................................................................................... 2

INTRODUCTION……….............................................................................. 2
Origin of the Report....................................................................................... 2
Objectives of the Report ........................................................................... ... 2
The Methodology of Report ......................................................................... 3
Scope of the Report ...................................................................................... 3

CHAPTER- TWO..........................................................................................4
A Brief History of modulus cosmetics.......................................................... 5-6
modulus cosmetic products…………………………………………..…….7-12
Objectives of modulus cosmetics company . ..........................................13
Mission ......................................................................................................... 13
Our Value...................................................................................................... 13
SWOT Analysis:............................................................................................ 14-16

CHAPTER THREE....................................................................................... 17

ORGANIZATIONAL STRUCTURE........................................................... 17
human resource department……………… ........................ ......................... 17-18
marketing department.................................................................................... 19
finance department........................................................................................ 20-22

CHAPTER FOUR......................................................................................... 23
My experience …………………………………………………..................23
Introduction.................................................................................................... 23
General ledger................................................................................................ 24
Accounting Activities,tally,sale-purchase, entry,igst, cgst, sgst.................... 25-48

CHAPTER FIVE.............................................................................................49
CONCLUSION & RECOMMENDATIONS ................................................ 49
CONCLUSION............................................................................................... 49
RECOMMENDATIONS................................................................................ 50
BIBLIOGRAPHY………………………………………………….....……...51
 1
CHAPTER- ONE INTRODUCTION

Origin of the Report

This report, based on fourty five days study, is the part of MBA program, which helps me to
gather practical information, which is necessary for my future life. I would like to express
my deep respect to my honorable PRINCIPLE MR.TRILOK CHAND , COORDINATOR
MR.DEVENDIR ATLAS and PROF.ASHOK KAPIL faculty department of MBA
Govt.p.g.college una for giving me his valuable time and all the necessary guidance, which
inspired me to prepare this report.

Objectives of the Report

The specific objectives of the report are to know in details about the operation of modulus
cosmetics company. The project has been directed by the following objectives:

 Exploring that how modulus cosmetics company Control their total financial &
accounting activities.

 Control their inventory management.

 To apply the practical knowledge in this theoretical area

 To know about the various kinds of product and service provided by modulus
cosmetics company

 To know about the investment policies of modulus cosmetics company

 To know the rules and regulations of modulus cosmetics company regarding the
sector wise investment and modes of investment.

 To know about the investment processes of modulus cosmetics company. To

analyze the performance regarding the investment activities of Corona Group
using some important trend analysis such as – investments of Corona Group,
Classified investments to total investments, provision against classified
investments, investment deposit , capital adequacy etc.
  To compare the performance regarding investments of Corona Group with its
Competitors.
2
 To find out the relationship between investment income and different investment
modes through various types of analysis.

 Finally to identify the findings regarding the investment activities or other relevant
things those are essential for the Companies and give some recommendations to
overcome the problems those are found.

The Methodology of Report

Research Approach: The project has been basically a exploratory type of research.

Data Collection Instruments: The study has been primarily based upon information
extracted from official documents. Interviews with the managers and officers of various
departments were also being conducted. On the other hand, secondary sources (WEB Site)
were used to collect data regarding the company and different kinds of papers, etc are the
major secondary sources.

Scope of the Report

The report covers the organizational structure, background, functions and the performance
of the modulus cosmetics company. The scope of the study is just to acquaint with the
operational scenario of modulus cosmetics company.
 3

CHEAPTER TWO

1.5 A brief history of modulus cosmetics company :

Modulus Cosmetics company

Incepted in the year 2010, we are one of the leading manufacturers of wide range of Soap
Noodles, Crude Glycerin, Toilet Cleaner, Fatty Acid, Washing Soap, Pitch
Oil and Dishwashing Liquid. These products are manufactured using superior quality
material, under strict quality control premises. We aim to render higher level of satisfaction
to our valued customers via moderate transaction methods, safe shipments, and timely
delivery to client’s door. Quality is our primary focus, with which we have placed our self
in the hearts of our esteemed clients.

BRANDS WE DEAL IN

Our Own Manufacturing Brands

 Thunder Ex

 Beet

 Ultra White

 Jinni
 4
5 INTRODUCTION

Incepted in the year 2010, we are one of the leading manufacturers of wide range of Soap
Noodles, Crude Glycerin, Toilet Cleaner, Fatty Acid, Washing Soap, Pitch
Oil and Dishwashing Liquid. These products are manufactured using superior quality
material, under strict quality control premises. We aim to render higher level of satisfaction
to our valued customers via moderate transaction methods, safe shipments, and timely
delivery to client’s door. Quality is our primary focus, with which we have placed our self
in the hearts of our esteemed clients.

Our company is running successfully in the hands of Mr. Sunil Bansal, His in-depth
knowledge in this industry has let us created several benchmarks in just a short span of
time.
Basic Information
Company USP

O
E
M

Primary C Nature of Business Manufacturer

Competitiv a
e p
Company CEO Rajan Dhir
Advantage a
b
il
Total Number of Employees 101 to 500 People
it
y

Year of Establishment 2010

Contract O
Manufactu E Legal Status of Firm Sole Proprietorship (Individual)
ring M

S Annual Turnover Rs. 100 - 500 Crore

e
r
v
i
c
e
O
ff
e
 GST No. 02ACVPD4864C3ZP
Quality Measures / Testing Facilities
Statutory Profile
Packaging/Payment and Shipment Details

Customized Packaging No

 Cash
 Cheque
Payment Mode
 DD

Shipment Mode By Road

MODULUS COSMETICS COMPANY PRODUCTS

SOAP NOODLES AND WASHING SOAP

We are leading manufacturers of wide range of Soap Noodles, Toilet Cleaner, Liquid
Cleaner, Neem Soap, Multi purpose Soap, Washing soap, Ultra White Washing Soap,
Dishwashing Liquid.
 1. Multipurpose Soap
Leading Manufacturer of Multi Purpose Soap, Ultra Neem Soap, Ultra White Transparent
House Hold Soap, Ultra Neem Washing Soap and Beet Multipurpose Soap from Una.
 Multi Purpose Soap
 Ultra Neem Soap
 Ultra White Transparent House Hold Soap
 Ultra Neem Washing Soap

7
 2. Crude Glycerin OIL
Offering you a complete choice of products which include Crude Glycerin Oil and Refined
Crude Glycerin Oil....more
 Crude Glycerin Oil
 Refined Crude Glycerin Oil

3.SOAP NOODLE

Manufacturer of a wide range of products which include Soap Noodles.

4..STEARIC ACID
 accordance with advanced market developments, we are offering best-in-class Stearic Acidto
the prestigious clients.

Manufacturer of a wide range of products which include Stearic Acid.

5. FATTY ACID

We are one of the conspicuous names in the industry for offering Distilled Fatty Acid to our
valuable customers at affordable rate.

 Distilled Fatty Acid

 Light Fatty Acid

9
 6.TOILET CLEANER
Providing you the best range of Thunder Ex Toilet Cleaner and Liquid Toilet Cleaner with
effective & timely delivery. We are renowned organizations of market for presenting the
optimum quality range of Thunder Ex Toilet Cleaner.

7,PITCH OIL
Our firm is well-known and trusted entity in the market by providing a top quality of Pitch
Oil to the admired patrons.
10

8.WASHING SOAP
Due to rich industry skill and experience, we have been accomplished to provide our
valued customers the best quality range of Cloth Washing Soap.
Our product range includes a wide range of Cloth Washing Soap and Cloth Washing
Detergent Cake.

9. DISHWASHING LIQUID
Our range of products include 250 ml Dishwashing Liquid and Dishwashing Liquid. We
are involved in providing the first-class 250 ml Dishwashing Liquid, which is precisely
made under the leadership of professional team.
11
 10.BATHROOM CLEANERS
Offering you a complete choice of products which include Bathroom Cleaners. Our
valuable customers can avail from us a top quality of Bathroom Cleaners at very
reasonable price, which is highly demanded in the market.

12
OBJECTIVES OF MODULUS COSMETICS COMPANY

To achieve and continue growth in sales To continuously develop human resources

Provide our Consumers with the Best Service & Shopping Experience in the Country.
Provide our Consumers with Products of Latest Technology. Develop our Employees to
achieve their real potential. Provide our Shareholders with steady Asset Growth and Return
on investment above our Industry Norm. Grow our Revenue and Profits at a rate above the
Industry Norm.

MISSION

To become one of the preferential market options, we have been engrossed in the realm of
presenting to our clients an extensive variety of products.
Following are the reasons for our success

 Pricing policies

 Safe and secure shipping

 Prompt deliveries

 Rich quality products

Our Value

To treat our employees, recognizing them as assets of the company to honor and maintain
high ethical standards

1. Consumers: We live up to the expectations of a responsible Organization by contributing

to the improvement in the Quality of life of our customers through outstanding product &
services.

2. Employees: We respect each other as individual and encourage cross functional teamwork
while providing Opportunities for career development.
13
. 3. Dealers: We provide a reasonable return to our Dealers while, safeguarding their
investment.

4. Suppliers: We develop our suppliers to be partners in progress arid share our growth with
them.

5. Competitors: We respect our competitors and recognize their contribution to mixed

value.
6. Community: We conduct our business by conforming to the ethics of our country and
share the social responsibility of the less fortunate.

SWOT ANALYSIS

. That means what strength, weakness, opportunity, threat do the dealers possess in terms of
business.

STRENGHT :

• Reaching the product to remote places: it is really convenient to reach consumers of remote
areas of the country through dealers.

• Flexibility: as per the requirement or the situation of the business in certain areas company
can easily withdraw their businesses,

• Employees feel more job security.

• Strong local presence.

• Comprehensive knowledge of the total market and client.

• Good quality and top quality of products with solution

• Using advance high-tech technology .

• Because of long term experience, customers reliability and loyalty Efficient after sales
service.

14
Weakness:

Great number of dealers may cause problems in cost minimization.

 Another problem is that with the increase in number of the dealers we will also have
 to increase the number of after sales service which is called Inter Service system. It
may not be possible to give proper service in the remote areas. And as a result it may
hamper the goodwill of the brand
 They cannot complete their regular work within the month as like selling price or
receivable.

 For the leakage of few employments in the credit department, each employee has
taken more pressure. For that reasons it is possible to make mistake at the time of
data inputting.

 Lack of consistency in promotional activities.

 Less competitive price.

 competitor sourcing product at cheaper price Less organized distribution.

 Less compliance to market demand.

OPPORTUNITY:

 Campaigning: It is easier to start a campaign from a dealer point. Many other times a
dealer informs us about a local occasion in that place in which we can take business
advantage of and operate a campaign from that point of dealer.

 Switching Customer In: With proper strategy we can motivate the dealers to convert
consumers of other products into users of our products.

 Visibility: Dealers are a point to increase the visibility of our product by properly
placing our product in the shelf of the dealers.

 It has a congenial environment facility for all of the jobholders performing their task
with more efficiently.

 Always making a combination of flows of the information, goods and funds.

 Air-conditioned office rooms.

15
 There is a brotherhood relationship from top to bottom, due to this one of the
employees can easily feel lower risk free job situation than any other organization,
for this reasons the employees also try to perform their responsibility with more
accurately and intimately.

 The market position of the company is very good because its financial strength is
good and growth rate also increasing up day by day.
 Exclusive Gratuity and Bonus Facility.

 There is a system of incentives for the sales executive based on fulfilling the target
as a sales promotion and also for the credit executives based on the credit collecting
of their credit limit.

 Product sales by credit system.

THREAT :

 One of the threats from the dealer is that they sometimes do not use the warranty
card in the systematic order.

 They do not fill up the warranty card at the time of sale and manipulate it to fill
up later on which increases the chances of our increase in cost.

 Other competitive worldwide company whose have similar product & services.

 Perception of future demand of the customer.

 Foreign currency fluctuation and devaluation of the local currency.

 Higher tax on Home Appliances

 Competitor sourcing product at a cheaper price

 Government is slow in decision due to inefficient administration.

16

CHAPTER THREE
 ORGANIZATIONAL STRUCTURE

HUMAN RESOURCES DEPARTMENT

Creating a complement and healthy working environment, modulus cosmetics values its
Human Assets and committed to their growth and prosperity. The success of any business
organization depends on the quality of its human resources i.e. their caliber and
commitment. Modulus cosmetics company is committed to ensure that the Company is
capable of continued growth and profitability by satisfying customers' needs and to provide
employees with high level of job satisfaction. Consequently, Company's personnel initiatives
are designed to encourage open communication, creativity, innovation and initiative.
Because the Company believes well trained and proactive employees with high level of job
satisfaction will ultimately contribute to the increase in profitability of the Company

HUMAN
RESOURCE
DEPARTMENT

HR
ADMINSTRATION TRAINING LEGAL
MANAGEMENT

17
Major functions of this department are:

1. Recruiting, transferring, promoting and terminating of employee.

2. Arranging training both in-house and outside.

3. Personnel policy evaluation and implementation.

4. Maintaining protocol, counseling and discipline of organization

5. Legal aspects

6. Recording employee’s salary, leave administration and annual performance

evaluation.

7. Handling recruitment & selection, training & development, job review,

Performance appraisal, employee relations, and disciplinary issues in
Accordance with relevant policies, procedures.

8. and Formulating HR policies and procedures Implementation of Company HR

policies and

9. Reviewing HR policies and procedures and revising as per need of the

Organization.

10. Ensuring the departmental policies is competitive within the Company HR

planning and budgeting.

11. Handling employee disciplinary actions and or separations.

12. i.e. termination, Discharge, dismissals and voluntary separations Managing

Performances and ensuring evaluation of all employees.

13. Handling grievances of employees.

14. Check & calculate Allowances for applicable cases to include in monthly
Payroll.

18

MARKETING DEPARTMENT
 MARKETING
DEPARTMENT

SALES DISTRIBUTION

This division is headed by the Marketing Director, who is reportable to the Managing
Director (MD). Under him have three units:

1. Sales .

2. Distribution ‘

Marketing Director is assisted by Sales Managers. That is for Retail part. Also reported be
Deputy Manager, who is assigned for Distribution part and Assistant Manager, who is
assigned for Education part. All other employee works for this department and all time get
connected. By this they report to their superior.

Market Segment:

Market segment is important for every business. Segmenting and targeting a segment is
crucial for the success of the business. It reflects how well a business understands its market.
Modulus company has targeted a mass market. But if we carefully see it is not actually mass
market. It is the mass market in case of the suburban and rural areas. But in the 14 urban
areas the target market is the low income middle middle and lower middle class people.

19

FINANCE DEPARTMENT
 This division is responsible for ensuring optimum and most efficient uses of the company's
resources through various controlling and monitoring activities. It is headed by the
Controller & Finance Director, and consists of the Audit, Corporate Affairs, Credit,
Commercial, MIS and Accounts. However, the last four units are reportable to the Chief
Accounts Manager, who is himself reportable to the Controller. There have a lot of activities
of individual department. The following is the organization chart of the department:

CONTROLLER
& FINANCE
DIRECTOR

FINANCE AND COMMERCIA INTERNAL CORPORATE

ACCOUNTS L LOGISTICS
MIS CREDIT
AUDIT AFFAIRS

1. Finance & Accounts:

In the finance & accounts department they are responsible for control cash flows operation.
They are responsible for makes sure that, the operation running smoothly. Their general
activities are describing below: Accounts division creates and maintains records of company
transactions for both internal and external audiences. The Accounts unit may be considered a
department by itself, for it has the following functional units - Sales Accounts, Costing &
Inventory, Payables, Cash Management, and General Ledger.
20
The company accounts represent the financial statements. The investment in associate
companies was accounted under the cost method. The carrying value of associate company
investments is shown at cost and only dividend income received from associate companies is
recognized as income
 Commercial & logistics:

In the commercial & logistics department they are responsible for control all import
transactions and opening of L/C operation. They are responsible for makes sure that, the
operation running smoothly. Their general activities are describing below:
1. Requisition for order
2. Purchase of product
3. L/C Opening
4. Select L/C opening Bank
5. Insurance
6. Vat
7. Warehouse

Internal Audit department:

In the internal audit department they are responsible for control to reduce variance of
income and cost operation. They are responsible for Keeping close watch on irregularities (if
any) & taking prompt actions. Coordination with all locations to identify phased out
/defective/ obsolete products, spare parts & prompt disposal. They are responsible for makes
sure that, the operation running smoothly. Their general activities are describing below:
REGULAR AUDIT ATSales Agents Corporate Office Warehouses Services Centre
Manufacturing Unit

Corporate Affairs:

In the corporate affairs department they are responsible for control all company related
secretarial matters operation. They are responsible for makes sure that, the operation running
smoothly. Their general activities are describing below:
 Company Legal Issues
 Statutory Accounts & Dividends.
 Corporate Tax & Other Taxes.
 Fixed Assets Management,
 Treasury Functions.
 Board Meeting Issues.

21
MIS Department

Management Information System (MIS) section presents ERP (Enterprise Resources

Planning) for less time consume. ERP is a new division which deals with computerized
financial data transaction within the organization. And shortly MIS will bring online record
transaction.
 Enterprise Resource Planning software systems (ERP) encompass a wide range of software
products supporting day-to-day business operations and decision making. ERP serves many
industries and numerous functional areas in an integrated fashion attempting to automate
operations from supply chain management, inventory control, manufacturing scheduling and
production, sales support, customer relationship management, financial and cost accounting,
human resources and almost all other data-oriented management process. ERP systems have
become increasingly prevalent over the last 10 years throughout the world. By the year
2000, ERP systems have been implemented in over 60% of multi-national firms.

Credit department:

In the credit department they are responsible for control hire purchase operation. They are
responsible for makes sure that, the operation running smoothly. Their general activities are
describing below:

Hire purchase is a form of credit. The customer agrees to buy goods and to pay for those
goods in installments. The customer has the right to possess and uses the goods from the
time the contract is made. Seller has security interest in the goods until all amounts owing by
the customer are paid.

22
CHAPTER FOUR

MY EXPERIENCE ON THE ACTIVITIES OF ACCOUNTS AND

FINANCE DEPARTMENT

Introduction
Tally Solutions Pvt. Ltd., is an Indian multinational company that provides enterprise
resource planning software. It is headquartered in Bangalore, Karnataka India

Tally's main product is its enterprise resource planning software called Tally.ERP 9 with
single and multi-user licences. For large organisations with many branches, Tally.Server 9 is
offered. The software handles accounting, inventory management, tax management, payroll
etc

Introduction
Tally is powerful accounting software, which is driven by a technology called concurrent
multi-lingual accelerated technology engine. It is easy to use software and is designed to
simply complex day to day activities associated in an enterprise. Tally provides
comprehensive solution around accounting principles, inventory and data integrity. Tally
also has feature encompassing global business. Tally software comes with easy to use
interface thus making it operationally simple.
Tally accounting software provides a solution around inventory management, stock
management, invoicing, purchase order management, discounting, stock valuation
methodology, etc.
Tally accounting software also comes with drill down options, which can track every detail
of transaction. It helps in maintaining simple classification of accounts, general ledger,
accounts receivable and payable, bank reconciliation, etc.
The technology employed by tally makes data reliable and secure. Tally software supports
all the major types of file transfer protocols. This helps in connecting files across multiple
office locations.
Tally accounting software is capable of undertaking financial analysis and financial
management. It provides information around receivables turnover, cash flow statement,
activity consolidation and even branch accounting.
Tally accounting software is east to set up and simple to use. A single connection can support
multiple users. It can be easily used in conjunction with the Internet making possible to
publish global financial reports.
Tally accounting software can seamlessly connect with various Microsoft applications.
23
General ledger

The general ledger (G/L) accumulated all accounting activities for an accounting period.
The importance of the (G/L) systems become apparent in light of a double entry objective
that:-
 (a) All transactions are properly accumulated, classified, summarized and recorded in the
accounts and,

(b) Financial transactions and reports accurately reflect the details of all operations. As
evidenced by the objective, the activities of a (G/L) system are varied, ranging from the
preparation of journal entries to the production of the final financial statements. The basic
flow of events for a (G/L) system is simple, revolving mainly around the journal entry.
Initially journal entries are prepared by summarizing the period’s activity. Journal entries are
then posted to the (G/L). Reports are generated from the (G/L), reviewed for accuracy and
any variances are explained. Finally, financial statements are produced from the final general
ledger. Because of the impact of the (G/L) system, the following key controls are
imperative:-

 Approval of all journal entries by a designated authority before posting.

 Checking of validation sheet of journal entries to confirm the accuracy of the

posting.

 Review of month end financial statements by departmental heads

to create a ledger in Tally

From Gateway of Tally, go to Accounts Info

24
Then go to Ledgers.
Now, under Single Ledger, select the option Create.

Now see a simple Ledger Creation window in which you will have to enter certain
details about the ledger.

It looks like in the picture below.

Name – The first option is the Name of the ledger. Enter the name of the ledger, for
example, Furniture A/c or Building A/c.

25
Under – Every ledger requires a group to operate in. For example, Furniture A/c and
Building A/c will be under Fixed Assets group as they are both Fixed Assets.

You have to select a group that is required as per your ledger.

Inventory values are affected – If you have a ledger which requires inventory or in
simple words, stock to be maintained, set this option to Yes.

For example, you are selling sim cards, your ledger will be Sim Cards.

There must be a quantity to sell i.e. stock or inventory and so you must set Yes to Inventory
Values are affected.

Mailing Details – You have to fill in the mailing details like Name, Address, Country
and Bank Details for the ledger.

It is for the ledgers such as debtors and creditors which require these kind of details.

Ledgers such as Furniture or Building do not require these details because they are not
humans and therefore they do not have any mailing details.

Tax Registration Details – Similar to mailing details, these details are also of people and
not for ledgers like furniture, building etc.

Tax registration details include PAN which is required on any tax related documents.

Opening Balance – This is the opening balance of the ledger if any.

Any balance of the ledger which is being carried forward from the previous year will have
to be entered as the opening balance.

This was the last step which was required to create a ledger under Single Ledger Method.

You can simply press ALC consecutively and create a single ledger. That is the shortcut
for creating single ledgers in Tally.

Every business requires sales as well as purchases to operate and

function.

In Tally, creating sales and purchase vouchers is as simple as creating sales and purchase
bills by hand.It is just in a digital format.

In this post I’ll be explaining, how you can create a simple

 Sales Voucher as Accounting Invoice

26
  Purchase Voucher as Accounting Invoice

Ledgers you need before Creating a Sales and a Purchase Voucher

Before you create a sales or purchase voucher, you need to create 2 ledgers. They are:

 Sundry Debtor – The person to whom you are selling.

 Sundry Creditor – The person from whom you are purchasing.
 Sales Ledger – A Ledger for recording sales. It can even be used for
differentiating sales like domestic or international.
 Purchase Ledger – A ledger for recording purchases. Again, it can be used for
differentiating purchases such as domestic or international

These ledgers are required to complete the entry whether it is purchase or sales.

Creating Sundry Debtor Ledger in Tally

Follow the below steps to create a ledger easily.

 From Gateway of Tally, select Accounts Info.

 Then select Ledgers
 Under Single Ledger, select Create
 Create ledger as I have explained below for Sundry Debtor and Sundry
Creditor.

Detailed understanding of creating ledgers in Tally.

I am creating a ledger named Amit under the head Sundry Debtors as shown in the
picture

Ledgers you need before Creating a Sales and a Purchase Voucher

Before you create a sales or purchase voucher, you need to create 2 ledgers. They are:

 Sundry Debtor – The person to whom you are selling.

 Sundry Creditor – The person from whom you are purchasing.
 Sales Ledger – A Ledger for recording sales. It can even be used for
differentiating sales like domestic or international.
 Purchase Ledger – A ledger for recording purchases. Again, it can be used for
differentiating purchases such as domestic or international

These ledgers are required to complete the entry whether it is purchase or sales.

27
Creating Sundry Debtor Ledger in Tally
Follow the below steps to create a ledger easily.

 From Gateway of Tally, select Accounts Info.

 Then select Ledgers
 Under Single Ledger, select Create
 Create ledger as I have explained below for Sundry Debtor and Sundry
Creditor

I am creating a ledger named Amit under the head Sundry Debtors as shown in the
picture.

Creating a Sundry Debtor Ledger in Tally

Creating Sundry Creditor Ledger in Tally
Create a Sundry Creditor Ledger the same way as you’ve created the Sundry Debtors
Ledger.

The name of the Sundry Creditor would be Rohan.

So, create a ledger named Rohan under the head Sundry Creditors as shown in the
picture.

28
Creating a Sundry Creditor Ledger in Tally
So, by now, you would have created above two ledgers.

Creating Sales Ledger in Tally

Let’s create sales ledger named Domestic Sales under Sales Accounts.

Take a look at the picture below to see the exact options for creating Sales Ledger.

29
Creating Purchase Ledger in Tally
Let’s create sales ledger named Domestic Purchases under Purchase Accounts.

Again, take a look at the picture below to see the exact options for creating Sales Ledger.

Creating Purchase Ledger in Tally

We have created all the ledgers for passing a sales as well as a purchase entry.

This is the time for creating actual Sales and Purchase Vouchers in Tally since we have
created all that which is required to create the vouchers.

Firstly, we will create a sales voucher and then create a purchase voucher.

Creating a Sales Voucher in Tally

As I have said earlier, it is very much easy to create a Sales Voucher in Tally.

Everybody in the business loves sales. Sales is the bloodline of any business.

create a Sales Voucher in Tally. Here are the exact steps.

 From Gateway of Tally, go to Accounting Voucher.

 From there select Sales from the right hand sidebar or simply press F8.
 After selecting Sales, we have to pass Sales Entry. As we have already created
the required ledgers, just pass the entry as shown in the picture below.

30
Creating a Sales Entry in Tally

 We are passing the entry as Accounting Invoice

 I have selected Domestic Sales as a Sales Ledger.
 Basically, we are selling ₹15,000 worth of goods to Amit.
 After you written the entry, press Enter to save it.

to create Purchase Entry in Tally.

Creating a Purchase Voucher in Tally

In order to run a business, we know that Sales are necessary but for selling we need to have
something to sell.

That is where we purchase things in a simple business and sell it at a higher price to earn
profit.

create a purchase entry in Tally

Here is the exact step by step process.

 From Gateway of Tally, go to Accounting Vouchers.

 From there select Purchases from the right hand sidebar or just simply press F9.
 After selecting Purchases, we have to pass a Purchase Entry.
 I am purchasing ₹10,000 worth of goods from Rohan.
 After you have perfectly the written the entry as shown in the picture, press

31

 Enter to save it.

Creating a Purchase Entry in Tally

 This was the last step for creating a purchase entry in Tally

This is how you can easily create both the Sales Vouchers as well as the Purchase Vouchers
in Tally.

how it gets reflected in the Profit and Loss Account in Tally.

how it affects the accounts in Tally.

Go to Profit and Loss Account from the Gateway of Tally and you would see both the
Sales and the Purchase Vouchers which we have just passed

press ALT+F1 to see it in detail.

32
 Concept of Debit & Credit Note

The need for debit note and credit note arises most of the time when there is a Return of
Goods.

Usually when there is a return of goods, the person does not directly give the cash for the
returned goods.

He issues Credit Note if he is a seller.

And the buyer issues a Debit Note for the same transaction to the seller from whom he has
received credit note.

Yes, this is how it works.

Now, it may not sound confusing to you anymore. Right?

Example of Credit and Debit Note

For a better understanding let us take a simple routine business transaction as an example.
This is in simple terms is called sales returns entry in Tally or purchase returns entry in
Tally.

Let’s say I SOLD goods worth ₹15,000 to Amit.

After checking the goods he did not liked the goods worth ₹5,000 and RETURNED to
me.

Therefore in this case, I will not give him directly the cash because it will reduce overall
sales.

Instead, I will give him credit worth ₹5,000 to him using which Amit can buy anything
from me to the extent of Rs.5,000 without paying me anything in future.

The document that I will give him as a proof to buy anything up to ₹5,000 without
paying a single rupee is in fact the Credit Note.

This is the real concept of a credit note. and debit note it is exact opposite of a credit note.

Debit Note
As I issued a Credit Note, at the same time Amit will issue Debit Note to me for the same
transaction.Amit has returned goods worth ₹5,000 to me and he will issue a debit note for
that amount.

33
Therefore Amit will show debit balance (Debit = Assets) of me in his books.

This is because Amit has already paid for the goods, but has returned some of them.

On the other hand, I will show credit balance (Credit = Liabilities) of Amit in my books.

The reason for credit balance is because I have received the goods in return as well as
money for that goods from Amit.

So, now I am liable to pay the money or goods to Amit.

Debit and Credit Notes in Tally

For using debit and credit notes in Tally, you would have enable them.

To enable the option for debit and credit notes in Tally, follow the steps below.

 From Gateway of Tally, press F11 – Shortcut for Company Features

 Now select, Accounting Features.
 Under Invoicing, set the option Use debit/credit notes to YES.
 Also set YES for:
 Use invoice mode for credit notes
 Use invoice mode for debit notes.

Enab
ling Debit and Credit Notes in Tally

34
Creating a Credit Note in Tally
I have sold goods worth ₹15,000 to Amit.

But he doesn’t like certain goods and he is returning the goods to me worth ₹5,000.

For this, I won’t give the ₹5,000 back because I am a true businessman and therefore I will
issue Credit Note to Amit

From Gateway of Tally, I will go to Accounting Vouchers.

After I am in the Accounting Vouchers, I will go and select Credit Note.

select Credit Note in 2 ways. Either by clicking on it or by shortcut which is CTRL+F8.

After you are in the credit note voucher, the screen in Tally would look something like this.

35
, I will pass the entry for Credit Note of ₹5,000.

the Sales Entry looks like in Tally.

Now, here is what the Credit Note entry in Tally for ₹5,000 looks like.

36
some of the important things about the entry.

Firstly, the Current Balance shows ₹15,000 by which we can take a decision on how
much the credit note should be made.

In simple words, we can easily know that the credit note would not be made up of
above ₹15,000 because that is what the total sales.

Secondly, I would look at the Narration which is in the bottom left corner of the the
image.

You can write the narration so that next time you see the entry, you will be able to know for
what reason the goods were returned.

When you are completed with the entry, just press Yes and the Credit Note entry will be
created.

look at the sales entry as well as the credit note entry together in Profit and Loss Account
in Tally.

37
Sales and Credit Note Comparison in Tally

You can clearly see that Credit Note makes a debit amount and therefore reduces our sales.

This is because, Amit has returned the goods and therefore in reality the goods have not
been sold so the sales has been reduced.

Now, s look at this example from the point of view of Amit.

Creating a Debit Note in Tally

A credit note for me is a debit note for Amit as per this example.

I have created another company in Tally called Amit so I can show you the creation of a
debit note.

Know how to create a company in Tally in 5 minutes, if you don’t know how to create a
company.

Firstly, I have already created the Purchase Voucher of ₹15,000 in the Amit’s company.

Have a look at the purchase entry in the image below.

Purchase entry for Debit Note in Tally

,

Now, to create a Debit Note, here are the steps.

Go to Accounting Vouchers from Gateway of Tally.

Then select Debit Note from the left had bar or simply press CTRL+F9 which is the
shortcut for Debit Note.

After entering the details in the Debit Note, here is what it will look like.

38
Debit Note in Tally
Here is what a Debit Note in Tally looks like.

It is almost similar to the Credit Note but it is from the point of view of a Purchaser.

Now have a look at the Purchase entry as well as the Debit Note entry together in Profit
and Loss account.

Purchases and Debit Note Comparison

clearly see the credit entry for Debit Note of ₹5,000 which nullifies the effect of ₹5,000
worth of the purchases.

It looks similar to the Credit Note.

39
 Contra Entry

In simple words, if the following transactions take place, it is a contra entry.

From Bank account to Cash account – This means when you are withdrawing money
from bank such as ATM withdrawal for daily expenses or withdrawing big amount of
cash for business or personal purposes.

The accounting entry for this transaction will be a contra entry.

From Cash account to Bank Account- This is the exact opposite of the above transaction.
When you deposit money in bank, its accounting entry will be a contra entry.

From Bank account to another Bank account – It is common to have more than one
bank account in business or for personal use. When you transfer your money from one
bank account to another bank account, its accounting entry will be a contra entry.

From Cash account to another Cash account – This happened in old times where there
were no commercial banks or proper banking channels and people usually did all the
business in cash. In that old times, some businesses have different branches.

How to create a Contra Entry in Tally

Creating contra entry is Tally is same as creating a simple accounting voucher in Tally.

a step by step process by following which you can easily create contra entries in Tally for
all the transactions which I described above.

In short create total four contra entries in Tally. They are:

1. Bank Account to Cash Account

2. Cash Account to Bank Account
3. Bank Account to another Bank Account
4. Cash Account to another Cash Account (although not widely used today.)

40
Contra Entry for Bank Account to Cash Account in Tally
start with the first one which is the contra entry for Bank Account to Cash Account.

For this entry need to create 2 ledgers namely, Bank Account and Cash Account.

Very few people know that the ledger for Cash Account is already pre-created by
Tally. So you don’t have to create another Cash Account.

only have to create a Bank Account.

Now, to create a contra entry for Bank Account to Cash Account, go to Accounting
Vouchers, from Gateway of Tally.

Select Contra from the right hand green colored sidebar as shown in picture below or just
press F4 which is the shortcut for contra voucher in Tally.

A white screen will appear for creating contra voucher entry in Tally.

need to create the contra entry in as shown in the picture.

41

This is how a contra entry for transferring money from a Bank Account to Cash Account is
created in Tally

In simple words, this entry says that I withdrew Rs.500 from my Bank Account. As soon as
I withdrew it, it becomes cash therefore second account is Cash.

on to the next contra entry which is opposite of what created just above.

Contra Entry for Cash Account to Bank Account in Tally

In this entry we are depositing cash in the bank. Therefore the entry will be as under.

In the contra entry, I have transferred or deposited Rs.500 in the Bank.

Therefore the Cash Account is credited and Bank Account is debited.

Contra Entry for Bank Account to Another Bank Account in Tally

When we transfer money from one of our bank accounts to another bank account, this
contra entry is required.

42
If you have more than two bank accounts and you transfer money in between them, then
the accounting entry will be as described above.

These are the contra entries that are most widely used in any business or for personal
accounting purposes.

Actual meaning of contra is opposite or against something. If I construe the meaning of

contra in accounting, it means money transferred from one form to its opposite form.

For example, transferring money from bank to another bank or cash to bank. They are
exact opposite. Hence the name contra entry.

43
 SGST ,CGST AND IGST

Since GST is a destination based tax, an end user consuming any goods or services is liable
to pay the Goods and Services Tax. The tax is received by the State in which the goods or
services are consumed and not by the state in which such goods are manufactured. In cases
of exports, the seller of the goods or services is exempted from paying the tax.

TAXES THAT GOT REPLACED BY GST

Unlike earlier when there were multiple taxes such as Central Excise, Service Tax and
State VAT etc., under GST, there is just one tax. GST is categorized into CGST, SGST or
IGST depending on whether the transaction is Intra-State or Inter-State.

To determine whether Central Goods & Services Tax (CGST), State Goods & Services Tax
(SGST) or Integrated Goods & Services Tax (IGST) will be applicable in a taxable
transaction, it is important to first know if the transaction is an Intra State or an Inter-State
supply.
 Intra-State supply of goods or services is when the location of the supplier and
the place of supply i.e., 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.

 Inter-State supply of goods or services is when the location of the supplier and
the place of supply are in different states. Also, in cases of export or import of
goods or services or when the supply of goods or services is made to or by a SEZ
unit, the transaction is assumed to be Inter-State. In an Inter-State transaction, a
seller has to collect IGST from the buyer.

Central Goods and Services Tax (CGST)

Under GST, CGST is a tax levied on Intra State supplies of both goods and services by the
Central Government and will be governed by the CGST Act. SGST will also be levied on
the same Intra State supply but will be governed by the State Government.
44
This implies that both the Central and the State governments will agree on combining their
levies with an appropriate proportion for revenue sharing between them. However, it is
clearly mentioned in Section 8 of the GST Act that the taxes be levied on all Intra-State
supplies of goods and/or services but the rate of tax shall not be exceeding 14%, each.

State Goods and Services Tax (SGST)

Under GST, SGST is a tax levied on Intra State supplies of both goods and services by the
State Government and will be governed by the SGST Act. As explained above, CGST will
also be levied on the same Intra State supply but will be governed by the Central
Government.
Note: Any tax liability obtained under SGST can be set off against SGST or IGST input tax
credit only.
An example for CGST and SGST:
Let’s suppose Rajesh is a dealer in Maharashtra who sold goods to Anand in Maharashtra
worth Rs. 10,000. The GST rate is 18% comprising of CGST rate of 9% and SGST rate of
9%. In such case, the dealer collects Rs. 1800 of which Rs. 900 will go to the Central
Government and Rs. 900 will go to the Maharashtra Government.

Integrated Goods and Services Tax (IGST)?

Under GST, IGST is a tax levied on all Inter-State supplies of goods and/or services and
will be governed by the IGST Act. IGST will be applicable on any supply of goods and/or
services in both cases of import into India and export from India.
Note: Under IGST,
 Exports would be zero-rated.
 Tax will be shared between the Central and State Government.

An example for IGST:

Consider that a businessman Rajesh from Maharashtra had sold goods to Anand from
Gujarat worth Rs. 1,00,000. The GST rate is 18% comprised of 18% IGST. In such case,
the dealer has to charge Rs. 18,000 as IGST. This IGST will go to the Centre.

45
TAX UNDER GST
 E-WAY BILL

E-way bill is an electronic way bill for movement of goods which can be generated on
the GSTN (common portal). A ‘movement’ of goods of more than Rs. 50,000 in value
cannot be made by a registered person without an eway bill.
E-way bill will also be allowed to be generated or cancelled through SMS.
When an eway bill is generated a unique eway bill number (EBN) is allocated and is
available to supplier, recipient, and the transporter.
e-way bill be generated
E-way bill will be generated when there is movement of goods (both GST and non- GST
goods) –
 In relation to a ‘supply’
 For reasons other than a ‘supply’ ( say a return)
 Due to inward ‘supply’ from an unregistered person

46
47
‘supply’ in case of e-way bill
 A supply may be –
 Supplied for a consideration (means payment) in the course of business
 Supplies made for a consideration (payment) which may not be in the course of
business

Supplies without consideration ( without payment)

Basically supply means –
Sale– sale of goods and payment made
Transfer– say branch transfers
Barter/ Exchange– Payment by goods instead of money.
Therefore, e-way bills must be generated on the common portal for all types of
movements.
Who can generate e-way bill?
 E-way bill must be generated when there is a movement of goods of more than Rs
50,000 in value to or from a Registered Person. Registered person or the transporter may
choose to generate and carry e-way bill even if value of goods is less than Rs 50,000.
 Unregistered persons or his transporter may also choose to generate e-way bill.
Which means eway bill can be generated by both registered and unregistered persons.
However, where a supply is made by an unregistered person to a registered person, the
receiver will have to do all the compliance as if he’s the supplier.

E-way bill can be generated by

Who When Part Form

Every Registered person Before movement of Fill Part A Form GST INS-1
under GST goods

Registered person is Before movement of Fill Part B Form GST INS-1

consignor or consignee goods
(mode of transport may
be owned or hired) OR
is recipient of goods

Registered person is Before movement of Fill Part A & Part B Form GST INS-1
consignor or consignee goods
and goods are handed
over to transporter of
goods
Transporter of goods Before movement of Fill form GST INS-1 if
goods consignor does not.

Unregistered person Compliance to be done

under GST and recipient by Recipient as if he is
is registered. the Supplier.

A registered person may submit a tax invoice in Form GST INV-1 on the common portal.
If a registered person has uploaded the invoice, information in Part A of Form GST INS-1
is auto populated from GST INV-1.
Information in Part A of Form GST INS-01 is used for preparing GSTR-1.
Validity of an e-way bill

Distance Valid from Valid for

Less than 100km Date & time at which e-way bill 1 day
is generated

100km to 300km Date & time at which e-way bill 3 days

is generated

300km to 500km Date & time at which e-way bill 5 days

is generated

500km to 1000km Date & time at which e-way bill 10 days

is generated

1000km or more Date & time at which e-way bill 15 days

is generated
An e-way bill is valid for periods as listed below, which is based on the distance traveled
by the goods. Validity is calculated from the date and time of generation of eway bill-
The Commissioner may extend the validity period of e-way bill for certain categories of
goods.

48
 CHAPTER FIVE

CONCLUSION & RECOMMENDATIONS

5.1 CONCLUSION

Everyone are studying a lot of in the class room as well as lecture hall but that full fill
when those class room and lecture hall studies going to be implemented. That is different
experienceand needed experience for everyone in the world. According to the curriculum I
had the great internship training in one of growing private company .Actually nowadays
practical experience much needed than theoretical base studies. I spent around fourty five
days at the company for my internship training the training gave to me such opportunity to
enhance myknowledge and skills with the practical business environment. This hind of
training much needed for every student in their life.

RECOMMENDATIONS

So there have some weaknesses that act as barriers for being better performance of
modulus cosmetics company. If the company can reduced this kind of barriers,
company can be successes. So they can take some action to recover those barriers that
is:-

 Have to increase sales.

 Company must follow the chain of command.

 To make effective salary structure.

 Have to reduced short term loan.

49
The managerial performance of modulus cosmetics company is also very good but for
more better in future they can take some action which is given below:

 Adaptation of more advance technology in their production process.

 Improvement of compensation structure for the staffs and employees.

 Uses of Modern updated software’s in all departments for accomplishing the task
which I think will make the work more effective and efficient. It will also save a lot
of time and energy.

 Evaluation for the good performance of the employees by introducing award and
incentives.
  Modulus cosmetics company should try to perform some social responsibility like
establishment of Hospital, providing medical facility to any rural areas for
particular period of time etc.

 Delivery schedule should be modified, i.e., the number of weekly delivery should
be increased according to the demand and expectations of the dealers.

 Customers’ database should be maintained using software that is more

sophisticated so that existing road map/plan can easily be modified anytime.

 Modern and versatile software should be used to run the process of keeping records
and invoices so that anytime a recheck can be possible

 Crosschecking of every records and activities should be introduced and practiced.

 Beside distribution, modulus cosmetics company should concentrate on improving

the other areas of operation as well.

1.5 Limitations of the Report

There were some limitations of the study and therefore the report may lack some crucial
data. Such as;

♦ The general activities of Finance department are so vast. So that’s why they were not
being able to give me enough time.

♦ Time of my internship program was very short. So it was not possible to collect more
information within this short time.

♦ They did not provide me vast information because of their official obligations.

♦ All the information is not included in this report due to confidentiality of organization.
The project has encountered these limitations that may have hinder progress. But with
constant effort, my goal was to minimize the negative efforts of these limitation

50

BIBLIOGRAPHY
 ♦ Oral discussion with department managers.

 Observation.

BOOKS

 Accounting for managerial decision.

 Financial management.

Websites:

Tally school.com

http://en.wikipedia.org

tallyerp9book.com.
51