NAME : SADIA BIBI

CLASS : BSBA ( 4A )

REGISTERATION NO : 04151713061

SUBMITTED TO : Dr . RABIA MUSHTAQ

ORGANIZATION : PAC BOARD

OFFICE : REVOLVING FUND ( DIRECTORATE BUDGET AND ACCOUNTS )

INTERNSHIP REPORT FOR 15 DAYS

( 01/08/19 to 15/08/19 )

In these 15 days , I learnt about :-

 Balance sheet : Notes to financial statement are prepared and then all amounts in

notes are transferred to the heads in Balance sheet and comprehensive income

statement .

 Reconciliation statement : It is prepared when there is difference between cash

balance and bank balance . Bank statement and cash summary are matched and if

there is any difference , reconciliation statement is prepared .

 Sale invoice : Invoice is written proof of any transaction . If it is foreign sale

invoice , we receive it from Director Project AMF ( Aircraft Manufacturing

 Factory ) and if it is local sale invoice , we receive it from DSM ( Director Sale

and Marketing ) .

 Advance payment guarantee ( APG ) : It is received on the advance payment .

 Contract in case of letter of credit ( LC ) : Revolving fund receive 3 copies of

contract from DCP ( Directorate of central procurement ) . 1 copy is used to

maintain folder and 2 copies are sent to bank with IB-8 form . Bank will open the

LC . Revolving fund will receive 1 copy of LC and distribute the LC copy to

AMF and DCP . DCP will send 1 copy to vendor for checking and after

confirmation , contract begins .

 Contract in case of release order ( RO ) : Revolving fund will recieve 2 copies

of contract and folder is maintained . Documents will be provided by concerned

factory DBA ( Directorate Budget and Account ) and revolving fund will issue

cross cheque to bank where our account is kept . NBP ( National Bank of

Pakistan ) issue payment to vendor bank .

 Documents in case of LC and RO : Documents are received according to claim

made by vendor and terms and conditions in the contract ( 100 % , 80 % or 20 % ,

70 % or 30 % ) . Documents are received first and then payment is made in RO .

Payment is made first and then documents are received in LC .

 Rate Running Contract : In RRC , revolving fund receive purchase order and

payment is made . The store is not confirmed . RRC happened one time and then

amount of contract and amount of BG is increased on recoupment .

 Release of bank guarantee procedure : Vendor provide NDC ( No Demand

Certificate ) through DCP to Revolving fund . Revolving fund will provide

 original BG ( Bank Guarantee ) to DCP and it is handed to vendor for release .

Vendor cannot claim BG before 12 months .

 Bill of exchange : It is issued when the confirmation of payment and delivery of

store occurred at given time .

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