Internship Report

ON
Accounting Practice in
CHATTOGRAM INTERNATIONAL MEDICAL COLLEGE HOSPITAL (CIMCH)

& CHATTOGRAM INTERNATIONAL DENTAL COLLEGE HOSPITAL (CIDCH)

(This report is presented for the fulfillment of the requirement for the Degree of Masters of
Business Administration under CUCBA, University of Chittagong, Bangladesh.)

SUBMITTED TO

Dr. Ranjit Kumar Chowdhury

Professor
Department of Accounting
UNIVERSITY OF CHITTAGONG

SUBMITTED BY

Iftekhar Hossen
9th Batch (EV)
ID: 163071006
Major – Accounting
SESSION: 2015-2016
Center for Business Administration
UNIVERSITY OF CHITTAGONG

Page 1 of 41
 LETTER OF TRANSMITTAL
Date………

To
Dr. Ranjit Kumar Chowdhury
Professor
Department of Accounting
UNIVERSITY OF CHITTAGONG

Subject: Submission of Internship Report

Sir,

This is my pleasure to present my internship report entitled "Accounting Practice in CIMCH &
CIDCH" which is prepared as a formal part of the MBA program of Center for Business
Administration, University of Chittagong.

Consequently, I am transmitting this report to your very concern. Hopefully, you will notice the
report informative approach as a hallmark of my hard work. In case of any future clarification or
elaboration regarding this report I would welcome the opportunity to consult with you to explore
how my findings could best meet your needs.

I sincerely hope that all my effort will be a success if you go through this report. It would be great
pleasure of me if you kindly accept my report forgive me for any shortcoming and mistake.

Sincerely yours,

____________

IftekharHossen
9th Batch (EV)
ID: 163071006
Major - Accounting
SESSION: 2015-2016

Page 2 of 41
Center for Business Administration
UNIVERSITY OF CHITTAGONG

Letter of Acceptance

I am enormously pleased to certify that Iftekhar Hossen a student of Chittagong University

Center for Business Administration, 9th Batch ID. No: 163071006, University of Chittagong has
completed his Internship Program under my supervision. He has completed his Internship Report
in “Accounting Practice in CIMCH & CIDCH”. He exploded the subject matter reviewed all the
relevant literatures and examined the necessary sources for collecting relevant information.

I therefore certify and convinced to allow Iftekhar Hossen, to submit his report as I am pleased
to declare that this report is solely completed under my supervision and has not been submitted
elsewhere previously to any other institution.

I wish him all the success.

.............................................

Dr. Ranjit Kumar Chowdhury

Professor
Department of Accounting
UNIVERSITY OF CHITTAGONG

Page 3 of 41
 Letter of Authorization

Iftekhar Hossen
Sabila Mansion,
Goribullah Sha Housing Society,
Khulshi-1, Chittagong.

Dear Mr. Iftekhar

Internship

We are pleased to inform that your assignment as an Intern, in the Accounts & Finance Division
of CIMCH & CIDCH, with effect from March 1st 2018. The assignment expected to be
completed within 3 months for which you will receive an allowance of Tk 10,000 per month.
You will report to Mr. Azad Chowdhury, Head of Accounts & Finance Division.

We expect your sincere effort for successful completion of the assignment.

With Regards

____________

Prof. Dr. Muslim Uddin Sabuj

Secretary
Board of Trustees
CIMCH & CIDCH

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 Acknowledgement

The almighty Allah, who is perfect in knowledge and wisdom, all praises and gratitude to Him
for giving me the capability to undertake and complete this report in spite of my limitations.

As an academic part of the MBA program I was placed in CIMCH & CIDCH for three months
internship. I am very fortunate that I have received utmost and sincere guidance and cooperation
from various persons while preparing this report.

First of all I would like to thank my Supervisor Professor Dr. Ranjit Kumar Chowdhury,
Department of Accounting, University of Chittagong providing me detailed feedback and
advice on this report. He always gave me his suggestions in making this study as flawless as
possible
.
My cordial thanks to Mr. Azad Chowdhury, Head of Accounts & Finance Division and also
my internship coordinator for being so nice with me and helping me in all aspects in spite of his
busy schedule.

In CIMCH & CIDCH my special thanks to Prof. Dr. Muslim Uddin Sabuj to give me the
opportunity to complete my internship in such a prestigious organization like CIMCH & CIDCH.

All the officers and staffs of CIMCH & CIDCH were very considerate and helpful. I would like
to thanks Mr. Md. Hasan- Senior Accounts Officer and Mr. Md. Nurul Absar- Accounts
Officer. They provided me with all assistance to complete my internship successfully. I thank
them for being so friendly and cordial.

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 ABSTRACT

Accounts and Finance division has a pivotal role in ensuring sustenance of any organization
because it plays an important role in preventing and detecting fraud and protecting the
organization's resources. This study has found many factors that are relevant for accounting
sector. Most of the business studies students like to work in Bank, financial or Non-financial
organization and Garments. But I would like to work in service oriented organization for example
Hospital, Orphanage, Community Clinic, Legal Aid Services and Volunteer Services
Organizations where I can learn different things. These kind of organizations give me mental
satisfaction as well as here I can play an important role for social welfare.

CIMCH & CIDCH is one of the famous private medical college in Chittagong which has already
gained huge positive reputation in the city as well as the country. CIDC was established in 2003
and CIMC was established in 2013 under IUC trust.

In this report, First Chapter is the introductory part as usual. In this part some discussion about
Introduction, Background of the study, Objectives of the study, Methodology of the study and
Limitation of the study are presented.

Second Chapter shows about CIMCH and CIDCH’s profile summary, History, Vision, Mission,
Goal & Objectives, Management & Board of Trustees and At a Glance of the organization.

Third Chapter shows Accounting and recording process of CIMCH & CIDCH

Fourth Chapter shows Finding of the study.

Fifth Chapter shows the Recommendation and Conclusive opinion of the company.

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 TABLE OF CONTENTS

SL. PAGE
CHAPTERS PARTICULARS
NO. NO.
Letter of Transmittal 01
Letter of Acceptance 02
Letter of Authorization 03
Acknowledgement 04
Abstract 06
Table of Contents 07

CHAPTER 01 INTRODUCTORY PART

1.0 Introductory Summary
1.1 Introduction
1.2 Background of the study
1.3 Scope of the Study
1.4 Objective of the Study
1.5 Methodology of the Study
1.6 Limitation of the Study

CHAPTER 02 COMPANY PROFILE

2.0 Organization’s Profile Summary
2.1 About CIMCH & CIDCH
2.2 Logo of CIMCH & CIDCH
2.3 Slogans of the organization
2.4 Vision, Mission & Goal
2.5 Members of the BOT & Management
2.6 General Administration of BOT
2.7 Accounting Practice systems in CIDCH & CIMCH

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CHAPTER 03

3.0 Accounting Practice in CIDCH & CIMCH

3.1 Accounting Practice in CIDCH & CIMCH
3.2 Cash Book
3.3 Bank Book
3.4 Student Ledger Book
3.5 General Ledger Book
3.6 Customized Software
3.7 Cheque Register Book
3.8 Monthly report
3.9 Income source
3.10 Direct and Indirect Expenses
3.11 Patient Turn over
3.12 Financial Statement

CHAPTER 04 FINDINGS
5.0 Findings Summary

CHAPTER 05 RECOMMENDATIONS & CONCLUSION

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Page 9 of 41
 INTRODUCTORY PART

1.1 Introduction:

The essential characteristics of accounting are identification, measurement, and communication

of financial information about economic entities to interested parties. Accounting is an

information system which provides information regarding debt outstanding, sales increasing or

decreasing, cash, asset, profit or loss and so forth. An efficient accounting system is beneficial for

every organization. Financial accounting is the process that culminates in the preparation of

financial report on the enterprise as a whole for the use by both internal and external parties.

Users of those financial reports include investors, creditors, director and governments agencies.

However, managerial accounting is the process of identifying, measuring analyzing, and

communicating financial information needed by management plan, evaluate and control an

organization’s operations.

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A standard accounting cycle –

Identification
and measurment
of Transaction &
Other events
Closing
Journaliz
ation

Financial Postin
Statments g

Adjuste Trial
d Trial Adjust Balance
Balance ments Prepara
tion

When the steps have been completed, the sequence starts over again in the next accounting.

1.2 Background of the study

In the last two years MBA classes, we studied our courses on business studies from theoretical

aspects. There were few scopes to learn practical knowledge about business and its environment,

theory and practices both are inter-related to each other and both are equally important.

Knowledge will not be fulfilled without gaining practical knowledge and that is only possible in

the practical field. MBA program that allows us to study and analyze a selected organization in

order to get practical knowledge which also facilitates use of theoretical knowledge. As a part of

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MBA program, I was also assigned to prepare a report about “Accounting Practice in CIMCH &

CIDCH”. We know that accounts & finance department plays an important role in every

organization. As I have been working in CIMCH & CIDCH as an intern for three months,

practical knowledge has been gathered on Accounting and the report is aimed to work on overall

activities about accounting.

1.3 Objective of the study:

1.4.1 General Objective:

The General Objective is to prepare & submit a report on the topic “Accounting Practice

in CIMCH & CIDCH”.

1.4.2 Specific Objective:

i. To know the processes of recording journal, ledger, contra entry.
ii. To know the accounting concept and overview of the CIMCH & CIDCH
iii. To evaluate the present performance of the CIMCH & CIDCH

1.4 Scope of the study:

My job in CIMCH & CIDCH was to work in Accounts & Finance Department. I was assisting

accounts officers. The team consisted of five people excluding me. First few days I do not have to

do anything except observing them and I was asked to learn by communicating and staying with

Accounts & Finance Department. At the first month my primary work was to learn how to

operate a customize software which is used for maintaining company account. Then, I practically

involved in work with the Accounts & Finance Department team. I was mainly handling Cash

book, Debit voucher posting,Credit voucher posting, Journal voucher posting, Contra voucher

posting, Supplier bill posting, Supplier ledger posting, cheque register book, Bank reconciliation
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and Daily Income posting. Where I kept record of each cheque received payment from client. In

addition I had to make a notification report every day according to the cheques drawing date. It is

worth to mention that, I had great opportunity to be a part of audit of the company. As a result, I

had to extend my internship period. At that time my responsibility was to find out the total

account receivable, all departments requisition of the year 2017 and 2018 with detail break up. To

be part of the team it is responsible for maintaining an efficient and accurate Accounting

function.Basically, I had to verify calculations, maintained cheque book register and prepared

cheques for payment.

1.5 Methodology of the study

a) Population of the study

b) Sample of the study

c) Primary sources

d) Secondary sources

Population of the study

The target population included in the research is the personnel who had gone under accounting
process at office of CIMCH & CIDCH. No probability, convenience and judgmental sampling
have been used. This has been done in congruence with the objective of the study. Total

population of the studies is Accounts and Finance Director, officers and sttafs. Again, for each
stratum respondent has been selected on convenience and judgmental method

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Sample of the study

i. Mr. Azad Chowdhury Sr. Assistant Director, Head of Accounts & Finance Division
ii. Mr. Md. Hasan, Sr. Officer, Accounts & Finance Division
iii. Mr. Md. NurulAbsar, Officer, Accounts & Finance Division
iv. Mr. Nasir Uddin, Officer, Accounts & Finance Division
v. Mr. Mukim Ali, Accountant, Accounts & Finance Division
vi. Cash In-charge, Accounts & Finance Division
vii. Cash Assistant, Accounts & Finance Division

Primary sources

Primary sources of data collection from Chattagram International Dental College Hospitalare not

available but I have tried to collect information on internal control practices within the companies

in the ACFD, this study used survey method. A questionnaire, consisting of various separate

questions was prepared. These questions were primarily close ended; additional questions

captured descriptive comments. With a view to getting an overview of the current situation of

hospital sector in Bangladesh. These are as follows:

1. Face to face conversation with the institutions officers and staffs

2. Direct conversation with theofficers and staffs

3. Personal investigation with the officersand staffs

4. Study of different files of different section of the institution.

5. Practical deskwork.

Under each category, there are separate question(s) for the respondents. Respondents are the

members of top management of the company’s and the ACFD officers/Staffs.

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But the secondary sources are:

i. Keeping daily diary

ii. Annual Report of CIMCH & CIDCH

iii. Various reporting data & printing materials of CIMCH &CIDCH

iv. Audited Report

v. Browsing Internet.

vi. Different kinds of ICAB books

Techniques used in this report:

I had excess to see company’s voucher, ledger, audit report and so forth.

Moreover, studying in university course, course text book and search engine was

helpful to accumulate theoretical knowledge with practical.

Financial performance analysis of this institute by using liquidity ratio, operating

efficiency ratio and profitability ratio.

1.6 Limitation of the study:

This internship tenure far doing the work on such an important topic is not really sufficient.

Moreover this is an individual work where only as individual person need to undertake the whole

process done alone but the time frame work did not permit me and my work done in my job

station as a scientific manner and also it is very difficult for me to make a comprehensive

qualitative survey within a stipulated time. In all respect some limitation and weakness remain

within which I failed to escape by any means. These are follows:

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 To continue this report it requires a big deal in time. As an employee I have a very few

time to prepare this report, which is not enough

 It requires lot of assistance from all level officers and staffs but as a medical sector

everyone are so busy in doing their respective duties.

 As an employee of this institute, it’s difficult to maintain report after completing daily

works & don’t have enough time to give the information elaborately.

 Its needs to proper support & guideline from respective superior to make this effective

report.

 In many cases the relevant authorities are not aware about internship report& they are

unwillingness to provide data due to confidentiality.

 It is too much difficult to comment and suggest based on this data of the report.

 Website of the organization wasn’t effective to gather valuable information.

 Lack of organizing chain of command

 Lack of instruction book, and any change. They are following traditional accounting.

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Page 17 of 41
2.1 About CIMCH & CIDCH :
CIMCH & CIDCH is one of the famous private medical and dental college in Chittagong which

has already gained huge positive reputation in the city as well as the country. These are the sister

concern of IUC Trust.Chattagram International Dental College (CIDC) started its journey in

2003and Chattagram International Medical College (CIMC) started its journey in 2013. Its large

and beautiful campus has been built in 1.5 acre of own land. It has been providing world Class

MBBS and BDS degree for students from all over the world. Current students already proved

their worth through their performance in their first professional examination. CIMC has a state of

the art 250 bed medical hospital, Chattagram International Medical College (CIMC) adjacent to

it. CIMCH started its operations in 2007. Initially it started with 70 bed medical hospital. Over

the period of time a number of treatment facilities added, modern equipment’s included and it has

been the hospital of 250 beds. CIDC has a state of the art Dental Hospital named Chattagram

International Dental Hospital (CIDCH) adjacent to it. Initially it started with 4 dental chairs. Over

the period of time a number of treatment facilities added, modern equipment`s included and

dental chairs have been increased to 50.Since establishment it has been contributing to the society

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with its specialized treatment facilities as well as providing training and research facilities for its

students and doctors.

2.2 Logo of CIMCH & CIDCH :

2.3 Slogans of the organization :

Quality with Morality

2.4 Mission, Vision & Goals :

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 Mission and Vision

Mission:

The mission of CIMCH & CIDCH is to establish and run one stop medical services and global

standard medical educational institutions which include

 Medical College

 500 bed Hospital

 Medical Technology Institution

 Nursing College

Vision:

The vision of CIMCH & CIDCH is to be a world class educational and medical institution

having the following long term objectives:

 To be a model in providing quality medical education and best healthcare service is the

country.

 To contribute significantly to achieving Millennium Development Goal (MDG)

 Operate internationally in Global Standers in collaboration with international

organization in teaching and medical treatment.

 Establish and maintain Islamic environment in all aspects.

Goal of the Company:

a. To serve the country.

b. To achieve national .
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 c. To ensure employment opportunity.
d. To contribute in the GDP.
e. To
f. Increase the competitiveness in the medical services.
g. Ensuring welfare for the employee.
h. Ensuring the hygienic environment at workplace.

2.5 Members of the BOT Management:

Board of Trustees

Chairman

Senior Vice
Vice Chairman Treasurer Members Secretary
Chairman

Member-1

Member-1

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 Member-1

Member-1

Member-1

Member-1

2.6 General Administration of BOT :

General Administration

Board of Trustees

and LMD HRD PDD STAD

ACFD ACAD
Beatification

-College
Extra -MOH &
-Purchase -HR Planning -Salary -Civil FW
-Beautification Curriculum
Procurement & Policy -Bill -Electrical -BM & DC
-Cleanness Activity
-Store & -Recruitment Receiving/Pay -ICT -DG
-Security -Hostel
Ware House & Selection -Financial Health
Procedure -Cultural
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-Transport -Trainning -CU
-Accounting Activity
-Maintenance & -Dean
Procedure -Public
-Legal and Development
2.7 Accounting Practice in CIMCH & CIDCH:

Daily tasks :

 Cash book
 Debit Voucher posting
 Credit voucher posting
 Journal Voucher posting
 Contra Voucher posting
 Student ledger posting (Per student Tuition fee, Development fee, Hostel
fee, Exam fee, late fee, Session fee & Interne fee etc.)
 Fund analysis
 Cash register
 Cheque register
 Cost analysis
 Profit or loss analysis
 Student dues collection
 Supplier bill posting
 Suppliers (party) ledger posting

Monthly tasks:

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 Profit & Loss Accounts
 Provident Fund
 Kollayan Fund
 Source Tax
 VAT
 Depreciation
 Loan A/C
 Bank reconciliation
 Balance Sheet

Yearly:

 Budget
 Audit
 Tax assessment
 Credit rating

Report

 Receipt & Payment

 P/L Account
 Department wise Income Statement
 Bank Reconciliation
 Monthly Suppliers (Liabilities) bill
 Monthly Liabilities (Bank loan) Report
 Hostel Income Expenses report
 Consolidated Income Expenses report
 Student collection dues list

Meeting

 Weekly departmental meeting

 Monthly central FC meeting
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 Monthly college FC meeting
 Monthly store co-ordination meeting
 Weekly purchase co-ordination meeting
 Bank meeting (per 2 month)
 HR co-ordination meeting (per month)

Software

 Wansoft Edu Tuition Management System

 Wansoft Hospital Management System
 Tally ERP9

Audit Company
 Nasir Mohammad & Company

Materials

 Salary certificate
 Student Clearness certificate
 Student collection book
 Bill of voucher

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Accounting practice in
cimch&cidch Page 26 of 41
3.1 Accounting practice of CIMCH & CIDCH:

Throughout my internship period, I found that CIMCH & CIDCH keep its daily transaction

record by maintaining four books and keep software record. Those books are cash book, bank

book, students' ledger book, general ledger book and software.

3.2 Cash book:

In the cash book, the organization maintains their daily cash transactions. Any types of cash

received like from client, withdrew from owns bank account, service charge and loan from bank,

other organization or chairman. Afterwards, daily cash expenses are also recorded. It is

worthwhile to mention that every transaction is record from the journal voucher. Journal voucher

refers to a voucher which functions as a journal book. It keeps transaction with date and

explanation.

3.3 Bank book:

Bank book is kept to record all transaction regarding bank. Organization is maintaining two

types of bank account in the same bank. One of them is current account and other is SND.

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Current account is to maintain small amount and frequent transaction whereas SND account is

maintained for big amount transaction. Bank book play a vital role in bank reconciliation. Most

of the time clients deposit in company's bank account. Often bank charge for online transaction

or letter of credit purpose. In this circumstance bank book and bank statement from bank are the

primary sources of data for bank reconciliation.

3.4 Students' ledger book:

Students' ledger book is maintained to keep the record of students' transaction history. Students'

ledger book shows the number of students, total due outstanding as well as a particular student's

total due, last date of payment, total advance and so on. Here are some points

Clinical Fee

Donation for Development Charge

Exam Fee Income

Hostel Admission Fee

Hostel Charge

Internee Certificate Fee

Internee Fee

Late Fee

Log Book Fee

Registration Fee Income

Tuition Fee

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3.5 General ledger book:

General ledger book has huge number of accounts head. Most of those are expense of the

organization. Usually conveyance, office maintenance, rent, bill, legal fees, entertainment

advertisement, salary, tax account recorded in this ledger book. In addition, there is also patient

receivable which is the control ledger, under this ledger cash collection are maintained.

Furthermore, purchase account is also a control ledger under which local purchase and Import

purchase recorded by the organization.

3.6 Customized software:

There is customized software in the organization to maintain their account. The software is not

good enough for accounting. The software is limited use only, to illustrate, it cannot record

general ledger book's account head but it is useful for maintaining some transaction. As a result

the software lost its importance. In contrast, I felt myself there are lack of professional person to

operate this software otherwise the limitation of the software might be outweigh compared to the

advantage of using this software.

3.7 Cheque register book:

CIMCH & CIDCH maintain cheque register book which has very significant role. This book

record the information regarding cheque received from students'. In this register book it is found

the date of cheque received, Student name, bank name and cheque number, amount of taka,

drawing date, expired date. In addition, this book can inform account management department

regarding total number of cheque, total amount in taka, number of cash cheque, expired cheque

as well as invalid cheque.

3.8 Monthly report:

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Monthly report shows the expenses and received money from any sources. Monthly report made

on the basis of monthly income, expenditure, cash book, bank book and general ledger book.

Monthly report is essential in the end of every month's financial meeting.

3.9 Income source:

Student collection (Tuition fee, Development fee, Hostel fee, Exam fee, late fee,

Session fee & Interne fee etc.)

Lab service

Hospital service

Canteen (Gas bill, WASA bill & Rent etc)

Pharmacy (Medicine sale)

Zakat collection

Donation

Grant

Other (miscellaneous income)

3.10 Direct and Indirect Expenses:

 Revenue expenditure (Salary, Administrative exp., Utility exp etc.)

 Capital expenditure (machinery purchase)

 ADP ( Land & Construction work)

3.11 Patient turn over:

Serial no. Particular Present Target

CIMCH
1 Outdoor 125 160
2 Indoor 100 130
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 3 O.T 5 10
CIDCH
1 New Patient 45 70
2 Old patient 22 40

3.12 Financial statement:

Financial statements reflect the collection, tabulation, and the final summarization of the

accounting date.

There are some statements are involved:

1. Statement of financial position

2. Statement of comprehensive income & Expenditure

3. Ratio analysis

4. Notes of the statement

5. Profit and loss accounts

6. Income statement

Statement of financial position shows the financial condition of the organization at the end of the

period whereas income statement measures the results of operation during the period. Then, the

statement of comprehensive income & Expenditure reports the total income and expenditure during

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 the period. Ratio analysis shows solvency ratio, profitability ratio and turnover ratio. Finally, notes

of the statement.

CIMCH and CIDCH

STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE , 2017

NOTE Amount in Taka Amount in Taka

PROPERTY & ASSETS S 30 June,2017 30 June,2016
A
. NON-CURRENT PROPERTY & ASSETS -
Fixed Assets (At Cost Less-Depreciation) 01 - -
Intangible Assets 02 - -
- -
B
. CURRENT ASSETS
Inventory 03 - -
Advances,Deposits & Prepayments 04 - -
Cash & Cash Equivalents 05 - -
- -
C
. CURRENT LIABILITIES
Liabilities for Expenses 06 - -
Accounts Payable 07 - -
Bank Overdraft 08 - -
- -
D
. NET CURRENT ASSETS ( B -C) - -

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 TOTAL (A+D) - -
E. FUND & LIABILITIES
General fund 09 - -
Fund From IUCT - -
Fund Transferred From College-CIDC - -
Fund Transferred From CIMC - -
Loan 10 - -
TOTAL (E) - -

CIMCH and CIDCH

STATEMENT OF COMPREHENSIVE INCOME & EXPENDITURE
FOR THE YEAR 30 JUNE , 2017

NOTE Amount in Taka Amount in Taka

S 30 June,2017 30 June,2016

Revenue 11 - -
Other Revenue 12 - -
- -

Less: Costs to Revenue 13 - -

Comprehansive excess of Income over Expenditure

before Administrative Expenses - -

Less:Administrative Expenses : 14 - -

Comprehansive excess of Expenditure over Income

trasnferred to General Fund - -

Page 33 of 41
 CIMCH and CIDCH

RATIO ANALYSIS:

(i) SOLVANCY RATIO: Result Standard

(a) Current Assets Ratio:
Current Assets -
- - -
Current Liabilities = - =

(b) Quick Asset Ratio:

Quick Assets* -
- - -
Current Liabilities = - =

*Quick Assets= (Current Assets)-(Stock+Advances)

(ii) PROFITABILITY RATIO:

(a) Gross Earning Ratio:

Gross Earning -
- -
Total Revenue = - =

(b) Net Earning Ratio:

Net Earning -
- -
Total Revenue = - =
(iii
) TURNOVER RATIO:

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 (a) Turnover Ratio:
Total Revenue -
- -
Total Net Assets = - =

Basis of Preparation, Presentation and Disclosures of Financial Statements

Statement of Compliance

The financial statements have been prepared on going concern basis in accordance with Bangladesh Financial
Reporting Standards (BFRS), other applicable laws in Bangladesh.
Basis of Measurement
These financial statements have been prepared under the ‘historical cost’ convention.
Functional and Presentation Currency

These financial statements are prepared in Bangladesh Taka which is the both functional currency and
presentation currency of the Hospital.
Use of Estimates and Judgments
Estimates and underlying assumptions are reviewed on an ongoing basis.
Reporting Period
The financial period of the Hospital covers one calendar year from 01 July to 30 June.

Application of Standard
Following BFRS have been applied in preparing financial statements during the year under review:
BAS - 1 Presentation of Financial Statement
BAS - 8 Accounting policies, changes in accounting estimates and errors.
BAS - 10 Events after the reporting period
BAS - 12 Income Taxes
BAS - 16 Property & Equipment
BAS - 18 Revenue
BAS - 23 Borrowing Costs
BAS - 37 Provisions, contingent liabilities & contingent Assets

Property and equipment

Recognition and measurement

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Items of property and equipment are measured at cost less accumulated depreciation and accumulated impairment
losses, if any. The cost of an item of property and equipment comprises its purchase price, import duties and non-
refundable taxes (after deducting trade discount and rebates) and any costs directly attributable to bring the assets
to the location and condition necessary for it to be capable of operating in the intended manner.

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SWOT Analysis means companies Qualitative performance Analysis, it must be consideredfor
evaluating organization’s financial performance. SWOT Analysis means analyzing the
Strengths, Weaknesses, Opportunities and Threats of the organizations to know thepresent
conditions. This is very common analysis to determine the company’s capabilities of doing
effectiveness. SWOT Analysis of my own observations is

Strength
 Reputation of the company
 Exceptional quality and professionalism in its service offering to thepatients
 Excellent patients service
 An experienced and dedicated senior management team
 Strong relationship with existing patients
 Good Infrastructure

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  Trusted employees
 Wide network and International affiliation

Weakness
 Limited financial capacity
 Relatively higher administrative expenses
 High turnover ratio of employees
 Higher level of financial risk
 Lack of experienced personnel
 Few employee motivation schemes
 Unqualified employees
 Lack of job commitment of the employees

Opportunity
 If proper marketing is carried out to make it more attractive to people, it will be very good
source of their fund.
 Better services provided by CIMCH & CIDCH is very attractive as it gives very high
response to the patients
 Patients become more concern regarding the quality of goods rather than price

Threat
 The market is becoming dreadfully competitive
 Continuously increasing VAT and tax on imported goods
 Changing bank policy into increase foreign reserve l

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Page 39 of 41
 Recommendations

Working at CIMCH &CIDCH was a great experience for me. I have learnt many things
throughout my internship period. From my little knowledge what I have some recommendations
as follows:

CIMCH & CIDCH have a very few employee at ACFD department whereas the work pressure is
high. So the department could increase their workforce and share the work together. Secondly, to
increase the rate of work efficiency they need faster computer with user friendly operating
system. There is customized accounting software in the organization which is not beneficial.
They should update or add more features in that software and appoint a professional operator so
that it might save time, money, labor and execute an impact for the long run.

Conclusion

CIMCH & CIDCH is a leading edge medical & Dental Hospital. CIMC & CIDCis also one of the
best institute in Bangladesh. This was an added challenge to all the accounting staffs as the listing
the accountability of the organization has gained a higher reach. The Accounts department took
the challenge and proved their spirit by the timely publication of yearly Annual Financial
Reports. Each and every section in the department deserves to be complemented. In this report, I
have tried my level best to identify management accounting technique and procedures used by
CIMCH & CIDCH. What and how CIMCH & CIDCH use accounting information for decision
making and external financial reporting along with describing the procedure and systems of using
accounting information. In this report, I imply our acquired knowledge from accounting course
and try to comply with the techniques procedure and systems followed by the organization.

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 Reference
Books:

1. Managerial Accounting Ray H. Garrison Eric W. Noreen

2.Intermediate Accounting Kieso, Weygandt, Warfield 10th Edition 3. “Cost
Accounting: A Managerial Approach”, Prentice Hall, Inc.; 12th Edition, 2007. 4.
“International Financial Reporting Standard”; International Accounting Standard
Board; as approved at 1 January, 2008.

Websites:

 http://en.wikipedia.org  http://www.iasplus.com 
http://blogs.payscale.com/compensation/ 
http://www.sciencedirect.com/science/article/pii/0030507372900475 
http://smallbusiness.chron.com/advantages-intrinsic-extrinsic-motivation-11246.html 
http://webster.commnet.edu/apa/  http://banglapedia.search.com.bd/HT/A_0049.htm
 http://www.dhakanews.info/ 
http://www.bdyellowbook.com/catalog/BusinessServices/ 
http://www.emeraldinsight.com/researchregister 
http://dx.doi.org/10.1108/09604520410528653  http://www.ask.com/question/what-is-
the-role-of-the-human-resources-department

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