Following correct Accounting procedure is an important factor for the success of an organization, specially in today’s competitive business environment the theoretical part of Accounting was taught elaborately by the instructor. The practical implementation of theory is also important. Alltex Industries Limited has expanded in last few years. To acquire particular knowledge and to supplement our theoretical study, this was included in course curriculum to orient with the present business world. It was an opportunity for us to compare the theory in the context of practical business environment. This report present the existing Accounting practices in Alltex Industries Limited. Efforts were invested to explain the merits, demerits and problems of existing Accounting practice. Alltex Industries Limited is a large organization which is a hundred percent export oriented industry of Dying, Finishing and Printing Grey, Fabrics towards making of Home textile products for export. The Accounting section of the central office centrally controls Accounting procedure of Alltex Industries Limited. The report was firstly oriented the organization and then theoretical part related to the type of the organization is described briefly. After describing the current Accounting practice in the organization it was also project the deviation from theoretical aspect. The findings briefly mention and at last recommended few steps to improve Accounting practice for its better effectiveness.
1.1 Origin of the Report
The report was authorized in written by the course Instructor Major Khondaker Saifuzzaman on 02 March, 2008 to write a term paper on the course of Principles of Accounting as a part of MBA program. This is written by group 03 composed of five members. This report was submitted on 18 May 2008. 1.2 Problem and Purposes
1.2.1 Problem statement
This report seeks to address the following requirement:
To learn about the Accounting practice of Alltex Industries Limited.
The objectives of the report are as follows:
To know how to work practically with a business organization. To understand the actual Accounting practices by the organization and the deviation from theory.
Since the entire accounting process is of diverse perspective, this paper is kept limited to study a few of its aspects like preparation of income statement , statement of retained earnings, statement of cash flow and the preparation of balance sheet. 1.4 Limitation
The staff of Alltex Industries Limited was extremely busy and as such couldn’t provide more time for our cause. Although they have tried their best, more time would’ve been better for us. The required Accounting information for the report is somewhat confidential and as such there was hesitation on their part to disclose it fully.
In order to make the Term Paper comprehensive with accurate data we had to work hard and gather data from various primary and secondary sources. The methodology of acquiring data included the following, The information was gathered through interviews and conversations with the Account Officer from Mr. Shaidul Islam. Annual report of Alltex Industries Limited
Visit to the office of Alltex Industries Limited.
Accounting, a Business perspective by Roger H. Hermanson.
1.6 Report Preview
The report is divided into eight major sections. In the first section, introductory part and in the second section historical background of the organization is discussed. Theoretical part related to the organization is discussed in the third section. The fourth and fifth section discussed currently accounting practice used in Alltex Industries Limited and Notes for the Financial Statements. The deviation from theoretical aspect and advantages and disadvantages are highlighted in the sixth section. Finally chapter seven and eight are discussed about findings and recommendation of the study....