Summer Internship Report

ON
“Empirical Execution of Accounting Data”
A REPORT SUBMITTED IN PARTIAL FULFILLMENT OF THE
REQUIREMENT FOR THE AWARD OF THE DEGREE OF
BACHELOROF COMMERCE
IN C.S.J.M. UNIVERSITY KANPUR U.P.

SUBMITTED BY
MUSTAFA KHAN
(ROLL NO 21016004122)

UNDER THE
GUIDANCEOF

DR PRADEEP KUMAR TRIPATHI

Department of commerce
D.A.V. post graduate college
Kanpur, 208001

Period of Research Project/Survey from 2023 to 24

YEAR OF SUBMISSION 2024

 CERTIFICATE OF GUIDANCE

This is to certify that the Research Project/Survey Work

entitled “Empirical Execution of Accounting Data” Mustafa Khan (Roll No:
21016004122) was conducted under my supervision in partial fulfillment of
the degree of Bachelor of Commerce in C.S.J.M. University Kanpur U.P. I
attest that this project is the original work of the student and has not been
previously submitted for any other degree or diploma in this or any other
institution or University for academic qualification.

Place: Kanpur
Date: …………

Signature of Mentor

(Dr. Pradeep Kumar Tripathi)

Department of Commerce
D.A-V College
Kanpur U.P.
 STUDENT'S DECLARATION

1, Mustafa Khan, hereby declare that the Project Work titled

“Empirical Execution of Accounting Data” is the original work
done by me and submitted to the Department of Commerce, D.A.V
College, Kanpur, (C.S.J.M. University, Kanpur- U.P.) in partial
fulfillment of requirements for the award of degree of Bachelor of
Commerce under the Supervision of Dr. Pradeep Kumar Tripathi.

Place: Kanpur
Date: 27-03-2024

Signature of the Student

Mustafa Khan
Roll No 21016004122
 CERTIFICATE OF COMPLETION

I, (Mustafa Khan), hereby certify that I have completed my work at (Rahman

Industries Limited). From 01-02-2024 to 29-02-2024. During this period, I have
diligently performed my duties and responsibilities to the best of my abilities.
I am grateful for the opportunity to gain practical experience and develop
valuable skills during my time at (Rahman Industries Limited). I would like to
express my appreciation to the entire team for their guidance and support
throughout this journey.
I am confident that the knowledge and experience gained here will serve as a
strong foundation for my future endeavors. Thank you for the opportunity to be a
part of (Rahman Industries Limited).

Place: Kanpur
Dated:27-03-2024

Student Signature
Mustafa Khan
B.Com VI Semester
Roll No
21016004122
 ACKNOWLEDGMENT

I would like to express my sincere gratitude to the following individuals and

organizations for their invaluable support and contributions to the completion of
this project:

Dr. Pradeep Kumar Tripathi For their guidance, expertise, and unwavering support
throughout the duration of this project.
Dr. Pradeep Kumar Tripathi, Friends, Family Members For their encouragement,
valuable insights, and assistance in various aspects of this project.

I am also thankful to (Additional Individuals or Groups) for their assistance,

encouragement, and understanding during this endeavor.

Lastly, I extend my deepest appreciation to all those who have contributed

directly or indirectly to this project's success.

(Your Signature)
(Mustafa Khan)

4
 ABSTRACT

The transition from manual to computerized accounting systems has

revolutionized the way financial transactions are recorded and managed in
contemporary business environments, particularly in India. This shift has not
only streamlined accounting processes but also introduced a range of features
and functionalities to enhance efficiency and accuracy. This paper delves into
the concept of computerized accounting systems, outlining their key
characteristics and benefits. Additionally, it explores the practical
implementation of such systems through a case study of Rehman Industries
Ltd., a Chartered Accountant Partnership Firm. The study elucidates the
objectives, scope, and methodology employed, including primary and
secondary data collection methods. Through findings gathered during the
internship, insights are provided into the transformative impact of computerized
accounting systems on traditional accounting practices, emphasizing improved
accuracy, efficiency, and compliance. The conclusion reflects on the
significance of these systems in modern accounting, highlighting the integration
of software such as Tally, Excel, and Spectrum, as well as emerging tools like
MARG, in facilitating comprehensive financial management.

5
 TABLE OF CONTNTEN

Sr. No. Particulars

1 Introduction

2 Company Profile

3 Terminologies

4 Objectives of SIP

5 Scope of SIP

6 Need of SIP

7 Contribution during SIP

9 Research Methodology

10 Findings

11 Conclusion

12 Suggestions

6
7
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.

8
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 firm.

9
REHMAN INDUSTRIED LTD.

We are a Chartered 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

Mumbai, Nagpur, +91 90960 50501 [email protected]

Amravati, Kishangarh

11
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

12
 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.

13
 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 softwares like

Tally, Excel, Computax, Spectrum, etc

15
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 is 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.

17
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 enhance the skill do that work in effective way it’s important for the

organisation.

 Providing financial services and achieving organisation 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.

19
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.

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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.

21
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.

22
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.

 Letter of Mutuation in NMC records, Santosh Mourya letter & letter of

transfer of Meter, Entries in various vouchers, Records maintenance in Excel.

2nd Week
 Minutes of Meeting, Editing & recreating reconcilliation of Swimming pool

Electricity bills, Downloading of 3CD from gst website & mailing to Brijesh

Sharma, Checking and updating Balance Sheet of Roystonea.

 Scanning of Balance Sheet of Manav vikas seva sanstha, Editing of Minutes,

Statewise GSTR3B Updation in Excel, Balance sheet updation in excel.

 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.,

23
 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

statewise GST working.

3rd Week
 Updation of names & expiry dates & RERA master sheet updation.

 Stock Audit of Chanvim Engineering Pvt. Ltd. : Stock auditing of Godown,

General store, 3P, Aluminium items, Finished goods, Refrigerator items.

International Accounting : Chauddagram Restaurent, Dubai

 Journal voucher entries of LPG Gas of June & August.

 Journal entries of Al Jahez Foodstuff Trading

 Downloading of AIS & TIS.

24
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.

 All journal entries of October pdf, some entries of Abdullah mobiles

(Converted all suspense a/c to cash a/c's)

25
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.

26
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

27
 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.

28
 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.

29
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.

30
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. 

31