SUMMER INTERNSHIP PROJECT
“Empirical Execution of Accounting Data”
Submitted to
Rashtrasant Tukadoji Maharaj Nagpur University, Nagpur
Submitted by
Mr. Navin Vinod Hedaoo
Company Guide
Mr. Arun Joshi
Faculty Guide
Prof. Dr. Prashant Manusmare
Department of Management Sciences and Research,
J.M Patel College Of Science, Commerce and Arts, Bhandara
Academic Year: 2023-24
Dept. of Management Science &
Research
J.M. patel college
CERTIFICATE
This is to certify that the investigation describes in this report titled
“Empirical Execution of Accounting Data” has been carried out by
Mr. Navin Vinod Hedaoo during the summer internship Project. This
study was done in the organization of “Radhakrishna extraction in
partial fulfillment of the requirement for the degree of Master of
Business Administration of R.T.M.N.U., Nagpur. This work is the own
work of the candidate, complete in all respect and is to sufficiently high
standard to warrant it's submission to the said degree. The assistance
and resources used for the work are duly acknowledged.
Prof. Dr. Prashant Manusmare
(Faculty Guide)
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ACKNOWLEDGEMENT
I would like to express my gratitude and appreciation to all those who gave me
the possibility to complete this summer internship project in “Radhekrishna
extractions Pvt Ltd” and I am sincerely thankful to them for providing this
opportunity to me.
I am extremely thankful to Mr. Arun Joshi for guiding me throughout this
project and continuously encouraging me. It would not have been possible to
complete this project without his support.
I am also thankful to all the faculty members of Department of Management
Sciences and Research, J.M Patel College of Science, Commerce and Arts,
Bhandara and particularly my mentor Dr. Prashant Manusmare for helping me
during this project.
Finally, I am grateful to my family and friends for their unending support.
Navin Vinod Hedaoo
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Sr. No. Particulars Page No.
1 Introduction 6
2 Company Profile 8
3 Terminologies 10
4 Objectives of SIP 13
5 Scope of SIP 17
6 Need of SIP 20
7 Contribution during SIP 22
8 Limitations 28
9 Research Methodology 29
10 Findings 32
11 Conclusion 33
12 Suggestions 34
13 Bibliography 35
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INTRODUCTION
In the present day, accountants no longer record every transaction of a company or
any corporate body with the help of pen and pencils using a ledger book. After the
birth of computers and the emergence of digitalization in most professional sectors
in India, accounting is also computerized.
For the past few decades, computerized data has been used mainly in the field of
science and technology. However, as the years go by, computerized accounting
systems are also becoming quite common.
Several accounting firms still perform book-keeping manually, while most firms
comprise financial transactions that can be a lot for a manual accounting process.
Moreover, the complicated financial transactions of a firm are quite difficult to be
recorded manually. That led to the introduction of the concept of computerized
accounting systems.
Before you learn the meaning of computerized accounting, it is important to know
about the various factors to consider before using such a system.
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Features of Computerized Accounting Systems
The characteristic features of computerized accounting systems are as follows –
a. Components of computerized accounting systems are software programs
which are installed on a company machine, network server or accessed
remotely with the help of the Internet.
b. Such a system allows accounting professionals to set up income and expense
accounts such as purchases and sales accounts, salary distribution account,
advertising expenses account, etc.
c. The process of computerized accounting systems includes programs that can
be used to manage and control bank accounts, prepare company budgets, etc.
d. Depending upon the program and how advanced it is, accountants can also
construct tax documents, handle company payroll, and manage project
expenses properly.
e. Programs in this system can be customized as per user demands. This
feature helps every accounting professional to meet the requirements of their
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firm.
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Radhekrishna extraction Pvt Ltd
We are a Accountant Partnership Firm with team of qualified and motivated
professionals, offering integrated one-stop services. We primarily focus on
Accounting, Audit & Assurance, Management Advisory, Consultation in Taxation,
Economic and Other related laws and Transaction Advisory Services.
We have exceptional and leading-edge expertise in the areas of Statutory Audit of
listed companies, Statutory Audit of NBFC, Internal Audit, International
Accounting, RERA, Direct Taxation, International Taxation, Goods & Services
Tax, Corporate Laws, Foreign Exchange Laws and Debt and Equity Advisory
Services. From the experience gained by the founding partner, it is understood that
there is a huge vacuum in the Indian professional services sector, where the firms
have expertise in independent domains but are not equipped with a holistic
approach to assist the client’s business. The genesis of our firm is to fill this
vacuum and provide integrated solution to client’s business. To withstand the ever-
increasing competition faced by corporates in the vibrant global economy coupled
with increasing responsibilities on human resources, we aim at enhancing the
economic well-being of an organization by providing timely services which add
significant value addition to the client’s business.
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VISION: -
“Our vision is simple-becoming leading consultancy firm operating
worldwide. With the intent of upholding the ethics of financial affairs, not only we
streamline your economic operations, but we also elevate the goodwill to a whole
new level with our consultancy services.”
MISSION: -
Becoming a leader to provide legal and financial services in economy to get
more opportunity for an organization.
Offices Contact Email
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TERMINOLOGIES
Bookkeeping Terminology
Accounts Payable – Outstanding payments the company currently owes to
suppliers, vendors, and Creditors — essentially any bills the company still
has yet to pay.
Accounts Receivable – Outstanding payments the company is currently owed
by all customers or clients. Basically, this is anything the company bills out.
Balance Sheet – A financial document that reconciles all the company's assets
with their liabilities and equity.
Costs of Goods Sold – The total money spent to produce goods and
services, including production, labor, storage and material costs.
Current Assets – Capital that has immediate value (typically that which will
be used within one year), including cash, sellable products or accounts
receivable.
Equity – All capital currently invested in the company, including any profits
that have been re-invested as retained earnings.
Expenses – Any additional money spent operating the company that's not
associated with the production of sellable products and services. Examples
of
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expenses include office supplies, lease for the place of business and
employee wages.
Fixed Assets – Assets with long-term value, such as land and property, tools
and machinery, or vehicles.2
General Ledger – Record of all financial transactions across all of a
company's accounts, which is maintained continuously for the entire life of
the company.
Income Statement – All outstanding debts owed by the company. This
could include accounts payable, loans, liens on property or other long-term
investments.
Liabilities – Outstanding payments the company is currently owed by all
customers or clients. Basically, this is anything the company bills out.
Net Income – The company's total profit (or loss, if negative) once costs and
expenses are subtracted from revenue.
Revenue – All incoming money from selling products and services or
generated through a company's additional assets, before expenses are taken
into account. Also referred to as "gross income."
Terminology Used in Calculations
Credit – An entry on a balance sheet that decreases asset values and/or
increases liability and equity values.
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Debit – An entry on a balance sheet that increases asset values and/or
decreases liability and equity values (or incoming payments)
Return on Investment (ROI) – Used to determine how much of the money
spent producing goods and services was recouped in profits. You find ROI
by calculating a ratio of a business’s net income to total assets.
Present Value (PV) – The amount a future sum of money is currently worth
today. Because a company can invest existing funds in order to collect interest
or ROI in the future, a particular sum of money may not be worth the same
thing now as it will be in the future. Accountants may use present value
calculations to determine the true value of sales to be paid in the future, or to
aid in investment decisions.
Types of Accountants
Auditors – Auditors evaluate a company's financial records for accuracy,
check for mistakes and discrepancies, and some may issue evaluations of
profitability. Auditors may be internal or external (independent) of the
company being audited.
Management Accountant – Management accountants work on a company's
internal financial records and processes to aid in business planning,
cost/revenue analysis and management of financial operations.
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Public Accountant – Public accountants — who by and large must earn
Certified Public Accountant, or CPA, status — may work with individuals or
large corporations to prepare all relevant tax and financial documents
required by the IRS.
OBJECTIVES OF THE STUDY
To implement my overall accounting skills practically via entering accounting
data online.
To secure a challenging position to expand my learnings, knowledge, and
skills.
To utilize my training and skills, while making a significant contribution to
the success of the company.
To gain an experience in high-level professional corporate environment.
It is an alternative corporate business form that offers the benefits of limited
liability to the partners at low compliance costs.
To gain a practical experience of operating various accounting software’s
like Tally, Excel, Computax, Spectrum, etc.
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1. Identification and recording of transactions
The primary object of accounting is to identify the financial transactions and to
record these systematically in the books of accounts. As a result, the true nature of
each and every transaction is known without much exercise of memory.
With this end in view, the transactions are primarily recorded in general and in a
special journal and later on permanently various accounts are kept in the ledger.
2. Ascertainment of results
Every business concern is interested to know its operating results at the end of a
particular period.
The amount of profit or loss for a particular period of a business concern can be
ascertained by preparing an income statement with the help of ledger account
balances of revenue nature. Surplus or deficit of revenue for a particular period of a
non-trading concern can also be ascertained by preparing income and expenditure
account or statement.
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3. Ascertainment of financial affairs
Ascertainment of debts-liabilities, property, and assets i.e., total financial affairs of
an organization at a particular date are another important object of accounting.
Financial affairs of concern at a particular date can be ascertained by preparing a
balance sheet. The balance sheet is the statement of assets and liabilities of concern
at a particular date.
4. Keeping accounts of cash
Cash book is a prominent book of the books of accounts. Cash receipts and cash
payments are accounted for in this book. A number of daily cash receipts, payments,
cash in hand and cash at the bank can be known from this book. Fraud, forgery,
and misappropriation of money are reduced by keeping cash book scientifically
and accurately.
5. Control over assets and liabilities
For running a business successfully, a businessman is to acquire various assets like
land, building, machinery, etc.
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He is to face various debts and liabilities like accounts payable, notes payable,
loan, bank overdraft, etc. side by side with die acquisition of assets. The actual
position of these debts-liabilities, property, and assets can be ascertained through
the proper keeping of accounts.
A businessman can take the right steps for controlling the quantity of assets
decrease and liability increase.
If the entity is required to file any form/application/document, then it needs
to be filed in an electronic form.
It is enhancing the skill do that work in effective way it’s important for
the organization.
Providing financial services and achieving organization goal.
To secure employment with a reputable company, where I can utilize my skills
and business studies background to the maximum.
A highly organized and hard-working individual looking for a responsible
position to gain practical experience.
To make use of my interpersonal skills to achieve goals of a company that
focuses on customer satisfaction and customer experience.
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SCOPE OF STUDY
1. To provide consultancy and accounting services as per the procedures & rules
described in companies Act’1956.
2. Changes required to be incorporated for preparation of final accounts as per the
companies Act and the guidelines of ICAI required to be followed.
3. Ensuring the day-to-day accounting transactions of payments, receipts, sales and
purchases, other miscellaneous expenses and inventory accounting are entered in
SAP on daily basis. Working knowledge with regards to basic data entry, report
generation in SAP environment are essential.
4. Preparation, maintenance and updating of Fixed Assets Register as per the
Standard Accounting Bench marks.
5. To generate monthly trial balance including priced stores ledger, funds flow
statement and final accounts (profit and loss account, Balance Sheet quarterly, Half
Yearly and annual final accounts) along with necessary schedules as required by
the Internal Audit, Statutory Audit, Tax Audit and as per Corporate Office
Guidelines.
6. Evolve the costing system with the help of departmental staff and suggest the
suitable methods for setting up of standards for regular costing system.
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7. Analysis of Debtors and creditors on daily basis and reconciliation of the same
& inter Unit accounts on monthly basis, preparation of Bank Reconciliation on
Fortnight basis in SAP environment.
8. Preparation of Half year and Annual Budget and consolidation thereof, and
analysis of variance based on actual vs budgeted and actual vs target.
9. Scrutinizing all ledger accounts at regular intervals in SAP environment.
10. Passing regular journal entries, making month end provisions, month end
closings and preparation of Monthly Profit and Loss account to submit the same to
Corporate Office.
11. Responsible for Statutory compliance under various acts such as Companies
Act, Income Tax Act, Central Excise, Service Tax, VAT, CST etc.
12. Responsible for quarterly E-TDS returns and monthly VAT returns and any
other statutory returns pertaining to Finance and Accounts, as and when required.
13. Preparation and generation of Management information /reports as when
required by both local management and Corporate Office.
14. Co-ordination with Internal and Statutory auditors, providing the data for audit
and addressing audit queries / observations under the guidance of
GM/AM(F&A)/OFAs related to Finance and Accounts.
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NEED OF THE STUDY
It Helps in Evaluating the Performance of Business
Your financial records reflect the results of operations as well as the financial
position of your small business or corporation. In other words, they help you
understand what’s going on with your business financially. Not only will clean
and up to date records help you keep track of expenses, gross margin, and possible
debt, but it will help you compare your current data with the previous accounting
records and allocate your budget appropriately.
It Ensures Statutory Compliance
Laws and regulations vary from state to state, but proper accounting systems and
processes will help you ensure statutory compliance when it comes to your
business.
The accounting function will ensure that liabilities such as sales tax, VAT, income
tax, and pension funds, to name a few, are appropriately addressed.
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It Helps to Create Budget and Future Projections
Budgeting and future projections can make or break a business, and your financial
records will play a crucial role when it comes to it.
Business trends and projections are based on historical financial data to keep
your operations profitable. This financial data is most appropriate when provided
by well-structured accounting processes.
It Helps in Filing Financial Statements
Businesses are required to file their financial statements with the Registrar of
Companies. Listed entities are required to file them with stock exchanges, as well
as for direct and indirect tax filing purposes. Needless to say, accounting plays a
critical role in all these scenarios.
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CONTRIBUTION DURING SIP
Working hours: - 8 hrs. per day.
Working days: - 6 days
1st Week
Data analysis of various companies
Checking of missing balances amounts
Tally Entries (Rebate & Discount)
Updation of clients' passwords to ms excel via spectrum, Creation of sales
bills & printing.
2nd Week
Minutes of Meeting, Editing & recreating reconciliation of Swimming pool
Electricity bills, downloading of 3CD from gst website & mailing to Brijesh
Sharma, Checking and updating Balance Sheet of Roystonea.
Statewise GSTR-1 working in excel, checking of balances of M4 PTE FZE
in tally, made H.O., Branch & Customer Copy of Edelweiss Broking Ltd
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Letter to Mr. Virendra Nimkar for payment of overdue apt. maintenance, Form
SH4 Share Transfer, Letter to Investors Protection Cell
Share Entries & Editing of letter of Payment of Overdue Apartment
Maintenance, DSC Validity name updation of remaining clients.
RERA: Rechecking of sales details & correction. Checking of SHEL
state wise GST working.
3rd Week
Updation of names & expiry dates & RERA master sheet updation.
Journal voucher entries of LPG Gas of June & August.
Journal entries of Al Jahez Foodstuff Trading
Downloading of AIS & TIS.
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4th Week
Made ledgers of various creditors & purchases accounts. Journal entries of
Al Mamzar packaging, Al Manama general food items & various creditors.
Made ledgers & journal entries of Poseidon General Trading, Majlis plastic
& containers, etc.
Journal entries of Chauddagram Restaurent of nov jan pdf.
Abdullah Mobiles receipt vouchers & some entries of Oct pdf.
5th Week
Remaining journal entries of July pdf & completed all the entries of
Chauddagram Restaurent, Downloaded company data of 33 companies,
Digitally signed in UDPL Balance Sheet, GST working.
Downloading of company data & director master data, Auditing of purchase
& sales vouchers of both the companies of December month.
Exported tally data of Suspense a/c ledger & mailed to V Tech Enterprises.
B2B working in excel.
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Bank statement entries of Rak Bank, International bank entries. Auditing of
purchase voucher of July 21
Bank statement entries of Rak Bank, International bank entries. Auditing of
purchase voucher of July 21
6th Week
Invoices entries in Tally, E verification of ITR3, Cash sales entries.
Filled RTGS forms, RTGS received & payment entries in tally.
Cash sales entries, Sent quaterly VAT reports of various companies.
Updation of profit & loss a/c & balance sheet in vertical format, Exported
quaterly VAT reports to Sajid Sheikh
Downloaded FORM 26AS & AIS of 1 client, drafted a letter for
discrepency, made Balance Sheet in both the formats of Seema Hurkat for
the F.Y.2023-24 & made vertical balance sheet for the F.Y. 2023-24
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7th Week
Excel working of payments for July 21, Amount adjustments of Sundry
Debtors of companies.
Reconcilled sales i.e receipt vouchers from all the companies & found the
missing amounts, Excel working of receipts & payments of various companies
Bank statements of RAK Bank & VAT amounts.
Found missing amounts in receipts & payments of all the companies, bank
statement entries of Seema Sarda, Shares purchase entries & bank
statements of ICICI bank.
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LIMITATIONS
Duration of the internship was quite small.
Working hours were 8, so was’t able to invest my time into other important
tasks.
At times the data available for study can be too large, which makes it a
time consuming tasks.
Sometimes it happens that the server & internet connection is low &
accounting tasks are put on hold.
In bank statements, sometimes closing balances doesn’t match, so it
becomes a time consuming task to reverify previous balances by checking or
altering tally entries.
Sometimes server issue comes from the main system which disables all
other systems work which makes the work delay.
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RESEARCH METHODOLOGY
In mainly, I used two types of data collection methods for this research
purpose
1. Primary data
2. Secondary data
1. Primary data
This report has prepared through extensive use of primary data. It is
collected from group of people who are related with this company the
following method are used in collecting primary data.
Primary data is the data that is collected for the first time through personal
experiences or evidence, particularly for research. It is also described as
raw data or first-hand information. The mode of assembling the
information is costly, as the analysis is done by an agency or an external
organisation, and needs human resources and investment. The investigator
supervises and controls the data collection process directly.
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The data is mostly collected through observations, physical testing, mailed
questionnaires, surveys, personal interviews, telephonic interviews, case
studies, and focus groups, etc.
2. Secondary data :
Secondary data is collected from the company’s collected from the
company’s manuals report and brochures through company’s records.
Secondary data is a second-hand data that is already collected and
recorded by some researchers for their purpose, and not for the current
research problem. It is accessible in the form of data collected from
different sources such as government publications, censuses, internal
records of the organisation, books, journal articles, websites and reports,
etc.
This method of gathering data is affordable, readily available, and saves
cost and time. However, the one disadvantage is that the information
assembled is for some other purpose and may not meet the present
research purpose or may not be accurate.
The type of research which I have used is the qualitative research,
Qualitative research describes qualities or characteristics. It is collected
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using questionnaires, interviews, or observation, and frequently appears in
narrative form. For example, it could be notes taken during a focus group
on the quality of the food at Cafe Mac, or responses from an open- ended
questionnaire. Qualitative data may be difficult to precisely measure and
analyse. The data may be in the form of descriptive words that can be
examined for patterns or meaning, sometimes through the use of coding.
Coding allows the researcher to categorize qualitative data to identify
themes that correspond with the research questions and to perform
quantitative analysis.
Observational Data –
Observational data are captured through observation of a behavior or
activity. It is collected using methods such as human observation, open-
ended surveys, or the use of an instrument or sensor to monitor and record
information -- such as the use of sensors to observe noise levels at the
Mpls/St Paul airport. Because observational data are captured in real time,
it would be very difficult or impossible to re-create if lost.
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FINDINGS
Departments at Office
Company Audit.
Direct, Excise, And Service Tax.
International Accounting & International Tax.
GST Compliance, Audit, And Training.
Company Secretarial Services.
Cost Accountancy.
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CONCLUSION
From the internship, it was seen that how manual accounting is converted to
practical accounting by usage of various softwares.
Basic concepts of accounts which was introduced from class 11th were
actually included while implementation in tally software.
For GST work, various softwares like Spectrum & Computax were used.
Every voucher entry & specially share purchase & sales entries were
recorded in the systematical way in tally.
Stock audit was done & it was found that in every manufacturing unit,
accurate number of stocks must be there in order to meet the demand for the
consumers so that no discrepancy can be taken out
From the vouching, it was found that some purchase or sales bills were
missing from the accounting data, so it created awareness for an auditor to
identify missing entries & to alter it.
There came a new software i.e. MARG which is actually used in dealing
with broad business accounting.
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SUGGESTIONS
Main server system should be technically fine so that it won't create a barrier
for other systems.
Rotational work should be distributed among the employees so that each &
every employee must be aware about everything.
Hardware systems & other devices should be of good quality & quantity so
that it won't create a lack of electronic equipments i.e (Monitor, keyboard,
mouse, cpu, LAN connection, printer)
Staff should be encouraged to communicate more frequently with each other
in English with the employees to create a formal corporate atmosphere.
Work should be prioritised according to the urgent requirement of
completion so that important tasks would get complete on time.
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BIBLIOGRAPHY
Data extraction from the corporate register provided by the
accountant.
Data extraction of workdone from ms excel.
Accounting pdf from google chrome.
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