3.

1 COMPANY PROFILE

3.1.1 Brief Description of the Company

Tech Valley Solutions Ltd. (TVSL), one of the leading IT Solutions providers in
Bangladesh, was founded on 23 November 2009. TVSL is established as a private
limited company under the company Act of 1994, with a view to serve as a one-stop IT
solution provider in Bangladesh.

TVSL has started upgrading its existing man power with internationally recognized
certifications in every sector of its operation and in some special cases, acquired
more experienced and professional people with excellent customer service support in
mind.

The company has in its possession the best computer engineers, programmers and most
dynamic sales squad in our country concerning educational background and experience.
Having adequate expertise, the company has earned the capability to serve the local need
of IT with proper support & maintenance services. These made the company as one of the
leading IT Company of the country.

The services offered by TVSL is regarded by the customers as skillful and friendly
because they are executed by professionals bearing in mind the importance of a customer
as well as due to the competence of their technological knowledge. Their aim is to give
the customer an efficient and reliable system for maximum productivity as well as lowest
possible expenditure of maintenance.

Head office of the company is situated at 139 Lake Circus, Kalabagan, Dhaka-1205.
Besides that, they have three different branches established in Dhanmondi and Babani of
Dhaka and OR Nizam Road of Chittagong.

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Presently a total of 205 employees are working in those branches of the company to
provide service and supports to their customers.

3.1.2 MISSION

The Company is dedicated to excellence in:

 Set the corporate goal to establish the company as one stop solution provider for
Bangladesh;
 Expand Specific Solution Business by making alliance with Strategic Partners;
 Reinforce Suppliers, Customers & Channel Partners Relationship;
 Set the new standard of working environment;
 Become the industry leader by 2015.

3.1.3 VISION

The vision of the company is “To become the most trusted and reliable partner along the
Information and communication technology value chain in Bangladesh.”

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3.1.4 Overview of the Company

Name Tech Valley Solutions Ltd.

Date of incorporation 23 November 2009
Address 139 Lake Circus, Kalabagan, Dhaka-1205
Ownership Type Private Limited Company
Nature of Business Information Technology
Accounting Software Tally ERP 9.0
Web http://www.tvsl-bd.com
email info@tvsl-bd.com
Fax 880-2-8116124

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3.2 ACCOUNTING INFORMATION SYSTEM (AIS) OF TECH VALLEY
SOLUTIONS LTD

I have performed tasks to analyze the Accounting Information System (AIS) of Tech
Valley Solutions Ltd. AIS of the company is discussed in four steps namely- Concept,
Observation, Findings, and eventually Recommendation.

Recording of Transaction

All transactions in the company are recorded by vouchers. Vouchers are written
instrument that serves to confirm or witness (vouch) for a transaction equipped with all
essential source (supporting) documents. The following types of vouchers are maintained
in Tech Valley Solutions Ltd.:

 Debit Voucher (Cash & Bank)

 Credit Voucher (Cash & Bank)
 Journal Voucher

3.2.1 Debit Voucher (Cash & Bank):

CONCEPT:

Debit Vouchers are prepared for recording of various expenditures of the organization.
Necessary supporting documents must be enclosed with the voucher.

Content of a Debit Voucher (Cash & Bank):

1. Name of the organization

2. Address of the organization
3. Type of the voucher
4. Voucher number
5. Date of Voucher

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 6. Head of Account
7. Name of Payee
8. Debit Column
9. Credit Column
10. Amount (In figure)
11. Amount (In words)
12. Total Column
13. A brief narration about the transaction
14. Signature of Prepared By
15. Signature of Checked By
16. Signature of Approved By
17. Signature of receiver

OBSERVATION:

Tech Valley Solutions Ltd maintains their Debit Vouchers separately for cash & Bank.
Cash Debit Voucher is named as Cash Payment Voucher and Bank Debit Voucher is
named as Bank Payment Voucher.

Contents of both the Voucher are portrayed below:

SL# Cash Payment Voucher SL# Bank Payment Voucher
1 Name of the organization 1 Name of the organization
Head of Account Head of Account
2 Address of the organization 2 Address of the organization
3 Type of the voucher 3 Type of the voucher
4 Voucher number 4 Voucher number
5 Date of voucher 5 Date of voucher
6 Head of account 6 Head of account
7 Name of Payee 7 Name of Payee
8 Invoice No. 8 Invoice No.
9 Debit Column 9 Debit Column

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10 Credit Column 10 Credit Column
11 Amount (In figure) 11 Amount (in figure)
12 Amount (in words) 12 Amount (in words)
13 Total Column 13 Total Column
14 A brief narration of the transaction 14 A brief narration of the transaction
15 Signature of Prepared By 15 Signature of Prepared By
16 Signature of Checked By-1 16 Signature of Checked By-1
17 Signature of Checked By-2 17 Signature of Checked By-2
18 Signature of Approved By 18 Signature of Approved By

FINDINGS:

During my observation, it was found that the below-mentioned points are not available in
the debit vouchers:

 Signature of Receiver
 Narration of transaction field was not filled.

Instead, they maintain a new point named as “Invoice No” for the traceability of the
transaction. They also maintain two signature of “Checked By” to ensure two-step
scrutiny of the correctness of the voucher.

RECOMMENDATION:

It is recommended to incorporate “Signature of Receiver” in the debit vouchers. A brief

narration of the transaction should be mentioned in the vouchers.

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3.2.2 Credit Voucher (Cash & Bank)

CONCEPT:

Credit Vouchers are prepared to record any sort money inflow (Cash or Bank) in an
organization. Like Debit Vouchers, these vouchers are also must be supported by source
documents.
Content of a Credit Voucher (Cash & Bank) includes:

1. Name of the organization

2. Address of the organization
3. Type of the voucher
4. Voucher number
5. Date of Voucher
6. Head of Account
7. Name of Payer
8. Debit Column
9. Credit Column
10. Amount (In figure)
11. Amount (In words)
12. Total Column
13. A brief narration about the transaction
14. Signature of Prepared By
15. Signature of Checked By
16. Signature of Approved By

OBSERVATION:

The company maintains their Credit Voucher separately for cash & Bank as like as Debit
Voucher. Cash Credit Voucher is named as Cash Receipt Voucher and Bank Credit
Voucher is named as Bank Receipt Voucher.

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Content of both the Vouchers are mentioned below:
SL# Cash Receipt Voucher SL Bank Receipt Voucher
#
1 Name of the organization 1 Name of the organization
2 Address of the organization 2 Address of the organization
3 Type of voucher 3 Type of voucher
4 Voucher number 4 Voucher number
5 Date of Voucher 5 Date of Voucher
6 Head of account 6 Head of account
7 Name of Payer 7 Name of Payer
8 Invoice No 8 Invoice No
9 Debit Column 9 Debit Column
10 Credit Column 10 Credit Column
11 Amount (in figure) 11 Amount (in figure)
12 Amount (in words) 12 Amount (in words)
13 Total Column 13 Total Column
14 A brief naration about the transaction 14 A brief naration about the transaction
15 Signature of prepared by 15 Signature option of prepared by
16 Signature of Checked By 16 Signature option of checked by
17 Signature of approved by 17 Signature option of approved by

FINDINGS:

During my observation, it was found that they maintain a new point named as “Invoice
No” for the traceability of the transaction. They also maintain two signature of “Checked
By” to ensure two-step scrutiny of the correctness of the voucher.

RECOMMENDATION:

Based on my observation, I do not recommend anything to amend the credit vouchers of

Tech Valley Solutions Ltd.

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3.2.3 Journal Voucher

CONCEPT:

Accounting transactions that do not include cash or Bank are recorded through Journal
Voucher. Transactions like depreciation, non-cash adjustments are of that nature. Like
other vouchers, essential supporting documents are required to be attached accordingly.

Contents of Journal Voucher include:

1. Name of the organization

2. Address of the organization
3. Type of the voucher
4. Voucher number
5. Date of Voucher
6. Head of Account
7. Name of Account
8. Debit Column
9. Credit Column
10. Amount (In figure)
11. Amount (In words)
12. Total Column
13. A brief narration about the transaction
14. Signature of Prepared By
15. Signature of Checked By
16. Signature of Approved By

OBSERVATION:

It was observed that Journal Voucher of Tech Valley Solutions Ltd contains the following
points:

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 1. Name of the organization
2. Address of the organization
3. Type of the voucher
4. Voucher number
5. Date of Voucher
6. Head of Account
7. Name of Account
8. Debit Column
9. Credit Column
10. Amount (In figure)
11. Amount (In words)
12. Total Column
13. A brief narration about the transaction
14. Signature of Prepared By
15. Signature of Checked By
16. Signature of Approved By

FINDINGS:

During my observation, it is found that Journal Vouchers of Tech Valley Solutions Ltd.
are maintained properly and they are prepared as and when any such transaction takes
place. However, they sometimes do not mention the brief narration of the transaction.

RECOMMENDATION:

It is recommended to mention a brief narration of each transaction in the journal

vouchers.

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3.2.4 Ledger

CONCEPT:

The Ledger contains individual accounts for each type of Income, Expense, Asset,
Liability and Capital account.

Organizations maintain separate Ledgers for different types of transactions. For example,
the Ledger may be split into General Ledger, Receivables Ledger and Payables Ledger,
and separate books may be maintained for Cash and each Bank Account instead of a
consolidated Cash and Bank Book.

OBSERVATION:

In Tech Valley Solutions Ltd., all transactions are recorded in their respective ledgers
electronically through Tally ERP 9.0.

FINDINGS:

During my observation, it is found that Tech Valley Solutions Ltd does not maintain any
physical books for that purpose.

RECOMMENDATION:

Based on my observation, I do not recommend anything with regard to recording of

ledgers of Tech Valley Solutions Ltd.

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3.2.5 Fixed Assets Register:

CONCEPT:

Fixed assets are very important for business. Without fixed assets, businessman
cannot perform his duties with best way. All fixed assets make businessman versatile in
every activity of business. So, it is very important to maintain a Fixed Assets Register.

A fixed assets register should contain the following points:

1. Serial number
2. Asset Description
3. Value of assets
4. Location of assets
5. Depreciation of assets
6. Rate of depreciation
7. Method of depreciation
8. Date of disposal of assets
9. Identification marks
10. Date and voucher number of recording of particular assets
11. Remarks

OBSERVATION:

During my observation, it is found that Tech Valley Solutions Ltd does not maintain any
Fixed Assets Register for recording the Fixed Assets. They only keep the information in
an excel sheet that contains the following points:

1. Asset Description
2. Value of assets
3. Location
4. Depreciation of assets

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 5. Rate of depreciation
6. Method of depreciation
7. Date and voucher number of recording of particular assets
8. Remarks

FINDINGS:

It was found that they do not maintain the following information:

 Serial Number
 Date of disposal
 Identification marks

RECOMMENDATION:

It is recommended that Tech Valley Solutions Ltd. should maintain a proper Fixed Asset
Register as Fixed Assets play a very important role in a business.

3.2.6 Recording Process:

CONCEPT:

Recording of transactions follows a process. That is:

Transaction

Generation of Voucher

Recording in Journal

Posting into Ledger

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At the end of the year

Balancing of Ledger

Generation of Voucher

Recording in Journal

OBSERVATION:

It is observed in Tech Valley Solutions Ltd. that they follow the following recording
process:

After each Transaction

Transaction

Generation of Voucher

Recording in Journal

Posting into Ledger

At the end of the year

Balancing of Ledger

Generation of Voucher

Recording in Journal

FINDINGS:

No deviance is found.

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RECOMMENDATION:

No recommendation is needed.

3.2.7 Generation of Trial Balance

CONCEPT:

The Trial Balance is a statement showing the balance in each account as on a particular
date. It is generated by listing all the accounts in the Ledger with the balance in each
account appearing against its name. Under the Double Entry System of Accounting, the
totals of the Debit and Credit side of the Trial Balance will always be equal.

A Trial Balance should contain the following points:

1. Name of Company
2. Date
3. Name of Account
4. Ledger Folio
5. Debit Column
6. Credit Column
7. Total Column

OBSERVATION:

As per observation, Tech Valley Solutions Ltd.’s Trial balance contains the following
points:

1. Name of Company
2. Date
3. Name of Account
4. Debit Column

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 5. Credit Column
6. Total Column

FINDINGS:

It was found that Trial Balance does not contain the following point:

 Ledger Folio
.
RECOMMENDATION:

No recommendation is needed as presence of Ledger Folio is not important as one can

find the traces easily from the Trial Balance as is electronically generated.

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3.2.8 Statement of Comprehensive Income

CONCEPT:

The statement of comprehensive income illustrates the financial performance and results
of operations of a particular company or entity for a period of time.

The statement of comprehensive income must disclose the followings:

1. Total income from different sources

2. Cost of Goods Sold
3. Total of Inventory/Stocks
4. Details of all kind of expenses
5. Total of Net Profit/Loss

OBSERVATION:

As per my observation, Tech Valley Solutions Ltd. maintains its Statement of

Comprehensive Income in the name of Profit & Loss accounts through their AIS. The
following information are available in the statement:

1. Total income from different sources

2. Cost of Goods Sold
3. Total of Inventory/Stocks
4. Details of all kind of expenses
5. Total of Net Profit/Loss

FINDINGS:

According to my observation, Tech Valley Solutions Ltd maintains the Statement of

Comprehensive Income properly.

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RECOMMENDATION:

If possible, it is recommended that the company should change the name of the statement
with the help of their software developer.

3.2.9 Statement of Financial Position:

CONCEPT:

The Statement of Financial Position or Balance Sheet is a summary of the financial

balances of a business organization. Assets, liabilities and ownership equity are listed as
of a specific date, such as the end of its financial year. A balance sheet is often described
as a "snapshot of a company's financial condition".

The Balance Sheet must also disclose the followings:

1. Details of current assets

2. Details of Fixed assets with accumulated depreciation
3. Details of Current Liabilities
4. Details of Long-term Liabilities
5. Details of Share Capital and Reserves

OBSERVATION:

Tech Valley Solutions Ltd. maintains its Statement of Financial Position in the name of
Balance Sheet in their AIS, which contains the following points:

1. Details of current assets

2. Details of Fixed assets with accumulated depreciation
3. Details of Current Liabilities
4. Details of Long-term Liabilities
5. Details of Share Capital and Reserves

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FINDINGS:

As per the observation, it is found that the company maintains its Statement of Financial
Positions in a proper way.

RECOMMENDATION:

If possible, it is recommended that the company should change the name of the statement
with the help of their software developer.

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