Recording of The Transfer Vouchers

THE KAITHAL CO-OPERATIVE SUGAR MILLS LTD. ( Kaithal )

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIRMENT FOR THE AWARD OF MASTER DEGREE IN BUSINESS ADMINISTRATION FOR THE SESSION 2011

A TRAINING REPORT ON
AT

Submitted To :
IMS (Institute of Management Studies)

Submitted By : Thakraj
Roll No. 06 Semester iv MBA-5 years

Institute of Management Studies Kurukshetra University, Kurukshetra

CONTENTS S.N.
1. 2. 3.

Particulars
Diclaration Acknoledgement Industory Profile Computerised Accounting System. Features of Computerised accounting system Advantage of computerized accounting system Limitation of computerized accounting Some Basic Accounting Terms

Page No.
1 2 3 4 4 6 8 10

4.

Project work
Meaning of voucher Types of voucher Cash voucher Transfer Voucher Format of transfer voucher

13

DECLARATION

I, Thakraj , hereby declare that project entitled Recording Of The Transfer Vouchers was assigned to me by The Kaithal Co-Operative Sugar Mills Ltd. during my 4 weeks training for the partial fulfillment of MBA degree from KURUKSHETRA UNIVERSITY , KURUKSHETRA. It is the original work done by me and the information provided in the study is authentic to the best of my knowledge. This study has not been submitted to any other Institution or University for the award of any other degree.

Signature

ACKNOWLEDGEMENT
Heartfelt Thanks to the following people..

A few typewritten words of thanks can not really express the sincerity of my gratitude. But I am still trying to put into words my gratefulness towards all who have helped & encouraged me in carrying out this project. I feel immense pleasure in expressing my deep sense of intentness and gratitude to Mr. D.B.Ahhalawat (C.A.O.) for the approval of training. I would like to express my sincere thanks to Ms. B.S.Badhwa (accountant) for allowing me to carry out the Project Work and use all the facilities and documents required for the same and for their valuable inputs and guidance during the course of training. Last but not the least; I am thankful to all the staff for lending a supporting hand during the project.

Computerized Accounting System

A computerized accounting system is that accounting information system that helps in processing the financial transactions and events as per the generally accepted accounting principles (GAPP) and leads to the generation of reports as per the requirements of the user.

An accounting system weather manual or computerized has two parameters , namely,

1. It has to follow the defined concept s known as the accounting principles and 2. it has to maintain the userdefined structure for

maintenance of records and generation of reports.

Features system

of

computerized

accounting

The computerized accounting system is based on the concept of databases. It does not involve the process of creating and maintaining journals, ledgers etc. which are necessary in the manual accounting system. A computerized accounting system comprises of the following main features: 1) It facilitates on-line input and storage of accounting data. 2) In this system , the recording of transactions i.e.

storing of data in database is done manually and all other calculations are done by computers. 3) In this the stored data are processed automatically by the software to give us ledger accounts. 4) In this, transactions once recorded are stored in the database which will produce trial balance automatically. 5) In this , financial statements are generated from the software itself and therefore there is no need to prepare a trial balance.

6) It generates a print out purchase and sales invoices. 7) It facilitates a system of codification of accounts and transactions. 8) It facilitates grouping of the various accounts. 9) It generates different reports quickly.

Advantage Of Computerized Accounting System

The computerized accounting system has various advantages over the manual system which are given below :1. High Speed :The accounting speed of a computer is much faster than that of a human being. 2. High Reliability : The extent of reliability of the information generated by a computer is immense . the reliability remains the same despite the volume of the work whereas the reliability of a human work can be doubtful in case of voluminous work. 3. Accuracy : the accuracy of a computer cannot be doubted once a particular program is fed. All the results based on such program would be 100% accurate whereas the results produced by a human

being can very carelessness, etc.

due

to

fatigue,

4. Updation of information : All the related records in a computer get automatically updated once any information is purchased in, whereas in case of manual accounts all the records will have to be altered one by one. 5. Efficiency: The computer based accounting systems ensure better and efficient use of resources and time. 6. Legibility : The data displayed on a computer screen is clear and legible thus avoiding errors caused by untidy writing in a manual accounting system. 7. Lower cost : The cost of maintaining accounts under the computerized system is

much lower as compared to the manual system. 8. Timely Reporting : In computerized accounting system facilitates the generation of the management information system (MIS) reports at a very high speed which enables the management to quick decisions ,whereas the generation of the same reports manually is very time consuming and less accurate. 9. Flexible Reporting : In computerized system , the data can be processed further to obtain the desired report. For example ,the debtors owing more than Rs. 10,000 or 20,000 or 50,0000 can be obtained very easily. 10. Storage and Retrieval : It enables the users to store data in a manner that does not

require a large amount of physical space which is in the form hard-disks, CD-Roms ,floppies that occupy a fraction of physical space as compared to the books of accounts in the form of ledger ,Journal and other accounting registers.

Limitation of computerized accounting system

Despite many advantages offered by a computerized accounting system it is not free from limitations. Various limitations of a computerized accounting system are as follows: 1. Staff opposition: Introduction of computers lead to a lot of retrenchment

as well as complication of activities which result in resistance of the staff. 2. High cost of training:The sophisticated computerized accounting packages generally require specialized staff personnel, which leads to heavy amount of cost of training. 3. Adverse effects on health: The excessive use of computers may lead to various health problems like eye strains, back aches, muscular pains etc. 4. Security problems: Fraud and embezzlements are usually committed on a computerized accounting system through alteration of data. People responsible for tampering of data can

not be located in a computerized set up whereas the same can be easily done in case of manual records. 5. System failure : System failure due to hardware failures, attack by viruses, system down etc. are the usual problems faced by a computerized accounting system. 6. Wastage of time: A lot of significant time is wasted when an organization switches over to the computerized accounting system due to changes in the working environment and other adjustments.

7. Lot of errors: The computer system is unable to detect unknown and unanticipated errors.

Some Basic Accounting Terms

 Accounting : Accounting is the art of recording, classifying, summarizing the transactions in a significant manner and in term of money which are ,in part at least, of a financial character and interpreting the results thereof. Assets : anything which will enable a business enterprise to get cash or a benefit in future is an asset. For example, land machinery ,building, stock, bank balance etc. Income revenue. goods is of goods : Income is different from Amount received from sale of called Revenue and the cost sold is called Expenditure.

Surplus of revenue called Income.

over

expenses

is

Expenses : Expense is the cost incurred in producing and selling the goods and services. Stock : The term stock includes the value of those goods which are lying unsold at the end of accounting period. Liabilities : It refers to the amount which the firm owes to outsiders(excepting the amount owed to proprietors).

 Journal : A Journal original entry in which recorded in the order occur i.e., chronological

is a book of transactions are in which they order.

Leger : The book which contains a classified and permanent record of all the transactions of a business is called the ledger. Trial balance : The statement prepared with the ledger balances, at the end of financial year(or at any other date) to find out whether debit total agrees with credit total is called Trial Balance.

 Financial Statement : Financial statement refers to such statements which report the profitability and the financial position of the business at the end of the accounting period. Profit and Loss account : A profit and loss account is an account into which all gains and losses are collected, in order to ascertain the excess of gains over the losses or vice versa. Balance sheet : Balance sheet is a statement at a particular date showing on one side the traders property and possessions and on other hand the liabilities.

Project work

The project assigned` to me by The Co-operative Sugar Mills Kaithal during my 4 weeks training, was a practical work of recording of the Transfer vouchers into computerized accounting system. During my training I did entry of transfer vouchers of nine months i.e., since May 2010 to Jan 2011

Meaning of voucher : A voucher is a document which provides the authorization to pay and on the basis of which the business transactions are, first of all, recorded in the books of accounts. A separate voucher is prepared for each transaction and it specifies the accounts to be debited or credited. The form of voucher varies from firm to firm since vouchers are printed separately by different firms in there own names. There are two types of vouchers: - Cash voucher - Non-cash vouchers / Transfer vouchers Cash Vouchers : Cash vouchers are prepared for cash transactions i.e., cash receipts and cash payments.

Transfer Vouchers: These vouchers are prepared for non-cash transactions such as : - For credit purchase or credit sale of goods - For credit purchase or credit sale of investments - For credit purchase or credit sale of fixed assets - For return of goods purchased or sold on credit - For providing depreciation - For writing off bad debts Contents of Transfer Vouchers: Usually the following information is contained in non cash voucher : i. Date of preparing voucher. ii. Serial number of voucher. iii. Name of account debited name of account credited. iv. Narration i.e., a brief explanation of the transaction together with necessary details. v. Net amount of transaction. vi. Source document number.

Format of A Transfer Voucher

TRANSFER VOUCHER
THE KAITHAL CO-OPERATIVE SUGAR MILLS LTD. KAITHAL ( HARYANA )

Voucher No...
DEBIT

Date.....
AMOUNT

_____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ ____________________________________________________________ _____________________________________Total_Rs_______________ _CREDIT____________________________________________________ ____________________________________________________________ ____________________________________________________________ ____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _____________________________________________________________ _______________________________________TotalRs._____________

Accountant

c.a.o

cashier

During recording of transfer vouchers on computerized accounting system were following : 1. Sometimes instead of selecting the name from the list wrong name is written then it becomes difficult to find out this error. 2. Sometimes wrong amount is entered. 3. It was difficult to write narration for me because of not having the knowledge of the subject. 4. Sometimes wrong date was entered then it becomes difficult to manipulate it as there have to change in the columns of excel sheet. 5. Sometimes because of having too similar name or more than one of same name than it becomes difficult to choose the right one. In such condition I used to note down the problems on paper. 6. If there would not be any name which is required then for that name new account was prepared in ledger option.

FORMAT OF RECORDING IN COMPUTERISED ACCOUNTING SYSTEM

Voucher No. Date
NAME

Name

select

Debit
Credit

Amount Narration
NAME AMOUNT Dr. AMOUNT Cr. NARRATION DATE

STEPS OF RECORDING OF TRANSFER VOUCHERS STEP 1 Voucher number is entered then press enter. STEP 2 Date is entered then press enter. STEP 3 Name is entered (only few words) then a list of resemble names occurs in the right hand side showing in dictionary order then press enter.. STEP 4 The required name is selected then press enter.. STEP 5 Select between debit and credit options then press enter. STEP 6 Amount is entered then press enter. STEP 7 Narration is written then press enter doubles times. Then entry is automatically entered into excel sheet.

BIBLIOGRAPHY
ACCOUNTANCY -D.K.GOEL ORGANISATION DOCUMENTS