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TO ANALYSE THE PRACTICAL USES

OF GAAP
S
Project Report
Submitted To
SCHOOL OF MANAGEMENT SCIENCES
S
S
For The Award Of

Post Graduate Diploma In Management

DDDF
Submitted By
SATYA BRAT
(Roll No. : PG/08/35)
DDDF

SCHOOL OF MANAGEMENT SCIENCES


LUCKNOW

TO ANALYSE THE PRACTICAL USES


OF GAAP

Cargo Placement & Shipping Agency Pvt Ltd Mumbai


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Submitted By
SATYA BRAT
(Roll No. : PG/08/35S)

SCHOOL OF MANAGEMENT SCIENCES


LUCKNOW

Certificate

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This is to certify that the project report entitled “TO ANALYSE
THE PRACTICAL USES OF GAAP (GENRALLY ACCEPTED
ACCOUNTING PRINCIPLE)” has been prepared by Mr. SATYA
BRAT in partial fulfillment of the requirement for the award of
POST GRADUATE DIPLOMA IN MANAGEMENT from “SCHOOL
OF MANAGEMENT SCIENCES LUCKNOW” has been carried out
under my supervision and guidance and that no part of report
has been submitted for the award of any other degree.

Place: MUMBAI Signature of


project Guide

Date:

ABSTRACT

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The task of developing this project has been carried out in the
Partial fulfillment of the requirement for the award of the “POST
GRADUATE DEPLOMA IN MANAGEMENT”.

Summer training project “TO ANALYSE THE PRACTICAL USES


OF GAAP” in CARGO PLACEMENT AND SHIPPING AGENCY
PVT LIMITED MUMBAI has been developed as per the
requirement of the objective. We endeavored as best as it was
possible to make this project requirement fulfilling.

The project has been developed for analyzing the practical


uses of GAAP in the company according to professional
courses. We have tried our best to avail and utilize the GAAP in
the organization.
The summer training project reports the user to retrieve all the
factors (i.e. Ledger reconciliation, all types of Auditing etc).

ACKNOWLEDGEMENT

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I am extremely grateful to Mr. SUDHIR SHARAN PGDM (IIM-A)
for giving me an opportunity to do summer training project in
“CARGO PLACEMENT AND SHIPPING AGENCY PVT LIMITED
MUMBAI”.

I would like express my deep gratitude and sincere thank to


MR.ABHISHEK SINHA (CEO) for his encouragement and
guidance through our summer training.

My special thank to the principle for his supportive role and


advice and valuable Suggestions which helped me.

Finally I thank all other faculty member of the “SCHOOL OF


MANAGEMENT SCIENCES LUCKNOW” for their constant
support without which study would not have been successful.

Place: MUMBAI SATYA BRAT

Date:

Declaration

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I hereby declare that the summer training
project report entitled “TO ANALYSE THE
PRACTICAL USES OF GAAP (GENRALLY
ACCEPTED ACCOUNTING PRINCIPLE) is
prepared by MR.SATYA BRAT under the
guidance of DR.SUDHIR SHARAN (PGDM IIM-A).

I also declare that this project is towards the


partial fulfillment of the requirement for the
Post Graduate Diploma in Management FROM
“SCHOOL OF MANAGEMENT SCIENCES
LUCKNOW” has been the result of my own and
this project has not been formed A basis for
the award of any other degree.

Place: MUMBAI
SATYA BRAT

Dat

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TABLE OF CONTENT:

S CONTENT PAGE NO.


NO.
1 certificate 4

2 Abstract 5

3. Acknowledgement 6

4. declaration 7

5. Table of content 8-9

6. Introduction 10-14
background

7. Mission 15

8. SWOT analysis 33-34

9. Competitor 35-36

10. Objective 37-53

11. Analysis and 54-55


interpretation

12. Research finding 56-57

13. Analysis of finding 58-60

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15. Suggestion 61

16. References 62

CHAPTER PLAN

Chapter 1: Introduction & Background

1. Company Profile
 Organization History
 Vision & Mission
 Structure
 AIR/SEA Export/import process
 Clients of CPSA
 Services of CPSA
 Location
 SWOT
 Competitor
2. Objective of the Project

Chapter 2: Analysis & Interpretation


Chapter 3: Research Findings

Chapter 4: Analysis of Finding/conclusion

Chapter 5: Limitations of the project

Chapter 6: Suggestion & Recommendations

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References

Chapter no.1

Introduction
and
background
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COMPANY CPSA:

Earliest its name was


world line cargo.
Taking a dynamic turn in international freight forwarding and
logistics

With the advent of a globalize economy, increased liberalization


and erasure of restricted trade, free movement of goods has
grown by leaps and bounds.

It has also made international freight forwarding increasingly


complex, imposing heavy demands on clearing agencies in
terms of documentation, procedures, policies, monitoring,
checks and day-to-day updates.

Taking a dynamic turn to meeting tomorrow's needs today is


Cargo Placement, a company established two decades ago, to
render professional services to customers. The commitment to
respond to changing trends, speed of transportation and
technological advancement, has today helped the company

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establish a worldwide base making Cargo Placement, a
distinctive solutions provider in international freight forwarding.

The company is an MTO (Multimodal Transport Operator)


approved by the “Director General of Shipping”. With wide
options and packages in transportation modes, warehousing
facilities and distribution services, the company makes world-
wide movement of goods, a door-to-door experience!

The company has a dedicated team of professionals


committed to exploring the best offer in terms of delivery
schedules and rate packages.

Their integrity and efficiency has gone a long way in attracting


a noteworthy list of prestigious clients, making Cargo
Placement, a forerunner in the business.

“Faster. Safer. Surer. All along.”

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As the CMD of the company, C. P. Sajeevan
brings to his business, uncanny foresight
based on over two decades of professional experience.
Professionally qualified, Sajeevan is a holder of “Custom House
Agents License” and has extensive experience in Customs and
Port operations related to imports and exports at all ports and
ICDs in the country.
The competence of his organization stems from his expertise in
Customs Tariff, Classifications, Policies and Procedures
including Export incentives / benefits.

"For over a decade now, my company has been responsible for


innovative steps in handling international movement of goods. It
is part of a constant urge to do things better than what we did
yesterday. We believe incisive knowledge of various business
processes can alone fulfill that urge!"

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Mission

To lead the way in ensuring smooth and unhindered global


movement of goods across widespread destinations and by
strictly adhering to international norms and local laws of the
land;

To keep pace with rapidly changing technologies and new


trends in the business;

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To strive for customer satisfaction through services, fulfilling
individual business-based requirements and in doing so, to
ensure that our actions are guided by the unfailing direction of
the principles by which we stand.

Organizational structure of the


CPSA:

CMD

CEO

GENRAL
MANAGER

OPERATION ACCOUNTING MARKETING FORWARDING

AIR EXPORT/
SENIOR ACCOUNTANT
IMPORT

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SEA EXPORT/ BRANCH SECTION
IMPORT
IMPORT
OUTSTANDING
SECTION

BILLING SECTION

PAYMENT SECTION

AIR/SEA EXPORT PROCESS:


The air/sea export process of CPSA is given
below.
1) INVOICE.
2) PACKING LIST
3) SDF FORM (Submitted in bank)
4) IEC copy (export/import code copy): It is used for

checking the registration.


After being registered in custom-
 Shipping bill filed in custom.
 Shipping no is given.
 Costing
 Examining report.

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 Handed over report to the steamer

company.
1) Shipping copy.
2) Custom duty.
3) Export copy.
4) Exchange control copy.
5) Warehouse copy

At last after handing over the report to the steamer company the
duplicate copy of custom, export, exchange control& warehouse
copy is handed over to custom along with invoice
detail and packing list.
Invoice

Packing list

SDF form
(Submitted in bank)

IEC Copy (export/import code copy)


it used for checking
Registration
Custom After being
registered
in
Custom

Shipping bill filed in custom

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Shipping no. is given

Report handed to
Steamer Company Costing

Examining report
Shipping copy

Custom copy

Export copy

Exchange control copy

Warehouse copy
AIR/SEA IMPORT PROCESS:

The air/sea import process of CPSA is


given below.

1) Bill of lading (shipping gives as proof)

2) IGM No. (Import general manifest) it is given by shipping


company (CPSA).

3) Invoice details. (exporter issues)

4) Invoice term:

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 CIF (cost insurance freight)
 C&F (cost & freight)
 FOB (Freight on bill)

5) Checklist is prepared by CPSA to custom.

6) Bill of entry provided by custom (if checklist is OK+ TR6

Chalan):
 TR6 is given to bank for payment.
 D/O (delivery order) is issued by shipping

company.
 Cargo is examined by custom

Bill of
landing
Shipping gives as
proof

IGM no. Import general


manifest

Invoice
details Exporter issue

Invoice
term

CIF
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Cost
insurance
freight

Cost & freight C&F

TR 6 given
to bank for FOB
payment Freight on bill

Issued by D/O
Checklist
Shipping delivery
Company order Prepared by
CPSA to custom

Bill of
Cargo is entry
examined
by custom Provided by
custom if
TR 6 + checklist is
ok
Clients of CPSA

There are some clients of CPSA which are given


below.

 Aban Offshore Ltd.


 Aegies BPO Ltd.
 Amol Paper Mills Ltd.
 Archies Ltd.

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 AIA Engg. Ltd.
 Ashish Life Science India Pvt. Ltd.
 Banaras Beads Limited
 Bharti Teletech Ltd.
 Bhavani Untensils Ltd.
 Biostadt India Ltd.
 Cable & Wireless
 Chimanlal Fein Paper P. Ltd.
 Convergys India.
 Dabur India Ltd.
 Essar Group
 Endeka Ceramics Ltd.
 Exclusive Steel Ltd.
 Expeditors
 Famy Care Ltd.
 Golden Tobacco Co. Ltd.
 Glasstech India (Industries) P. Ltd.
 Hotel Le Meridien
 Hotel Holiday Inn
 Johnson Matthey Group
 Jindal Steel & Power Co. Ltd.
 Khanna Paper Mills Ltd.
 Mahindra & Mahindra Ltd.
 Mangalam Alloys Ltd.
 Mangalore Refinery & Petrochemicals Ltd.

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 Meta Copper & Alloys Ltd.
 Merck Specialities P. Ltd.
 Mitsui & Co. Ltd
 New Fire Engineers Ltd.
 Osram India P. Ltd.
 Paras Dairy Group

 Praj Industries Ltd.

 Precision Gears Ltd.

 Print House India P. Ltd.

 Quacker Chemicals Ltd.

 RSEB

 Semikron Electronics P. Ltd.

 Sequent Scientific Ltd.

 Strides Research & Speciality Chemicals Ltd.

 Sahara India

 Toshiba

Product /services:

The product and services of CPSA are given


below.

Export:
 Consultancy on Policy, Procedures,

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 Tariff and Project Exports

 Documentation

 Transportation

 Customs clearance

 Port clearance

 Palletisation

 Freight bookings

 Warehousing

 Pre-shipment documentation

 Post shipment documentation

 Drawback claims

 DEEC auditing

Special Features:
 Daily updates and follow-ups

 Representative offices all over the country

 International Logistic support

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 Guaranteed clearance within free period

 Excellent rapport with related departments and offices

 Personalized services

Special Services :

The CPSA provides some special services.

 Facility for trading in Bond

 Re-export to third country.

 Clearance under licenses.

 Clearance for EOUs, STPIs and SEZs.

Import:

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The company CPSA provides import
services which are given below.
 Consultancy on Policy, Procedures,

 Tariff and Project Imports

 Pre-shipment documentation

 Project Registration

 Customs clearance

 Port clearance

 Transportation including ODC's

 Manpower supply & site handling

 Post Shipment documentation

 Warehousing & distribution

 Reconciliation of projects

REGULATORY PAYMENT OF CPSA:

The regulatory payments of CPSA are


given below.

 Payment of service tax.

 Payment of TDS (Tax deducted at sources.)

 Quarterly TDS return.

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 Provident fund payment.

 Payment of FBT(Fringe benefit tax)

 Advance tax payment.

 ESIC payment (employee state insurance


commission.)

 Service tax return.

 Filling of income tax return.

 Tax audit report.

 Payment of profession tax.

Projects of CPSA:

Some of the prestigious names whose projects he


has undertaken for documentation, clearing and transportation
of vital machinery.

 Nhava Sheva Port Construction Phase I Client: Mitsui


& Co. Ltd.

 - Phase II Client : Hyundai Corporation

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 - Sanjay Gandhi PGI of Medical Science, Lucknow
Client: Nissho Iwai

 - 2x500 MW Anpara Thermal Power Station, UPSEB


Client: Mitsui & Co. Ltd.
 - Purulia Hydel Project, WBSEB Client: Toshiba

Corporation
 Paras Dairy Group second hand dairy products

manufacturing units

 - Mangalore Refinery & Petrochemicals Ltd.

 - Various projects of NTPC.

LOCATION OF CPSA:

HEAD OFFICE:

Cargo Placement & Shipping Agencies P. Ltd.


227, Sahar Cargo Estate, Near Bombay Cambridge School, J.B.
Nagar, Andheri (E), Mumbai - 400 099. India
Tel: 022-2825 0581/2/3/4
Fax: 022-2825 0585

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E-mail: sales@cargoplacement.com
Website: www. cargoplacement.com

BRANCHES OF CPSA IN INDIA:

Delhi

Indoor Calcutta

Mumbai (Head
office)

Cochin Chennai

Bangalore

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STRENGTHS:

 Good cooperation among employees.


 Efficient services process.
 Strong network between branches.
 Very good reputation.
 Superior services.
 Highly qualified workforce.
 Strong relationships with key industry
members.
 Strong financial resources.
 Good management.

WEAKNESSES:

 Very congested office.


 Lack of innovation.
 Poor adaptability to market conditions.
 Lack of communication.
 Very long product development time.
 Poor brand awareness.

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OPPORTUNITY:
[Type OOOPP

 Emerging markets.
 Growing demand of services.
 Changing customer interest through good
services.
 New product/services uses.
 New regulations.
 New distribution channels.

text box anywhere in the document. Use the Text Box Tools tab to change the formatting
of the pull quote text box.]

THREATS:
 New competitor.
 Potential loss of financial backing.
 New regulations.
 Market saturation.

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Competitor:

The competitor of CPSA is given bellow.

The Great Eastern Shipping Company Limited.

Indial shipping pvt ltd .

Ocean Links Shipping Pvt Ltd.

Shahi Shipping Limited.

Damani Shipping Pvt Ltd.

Francis Shipping Agency.

Tolani Shipping Co Ltd .

Marine Management Services Pvt. Ltd.

Bharti shipyard.

ABG shipping limited.

AL-Ameen Exporters

Aqualogistics

Challenge Logistics

Jawaharlal Nehru Port Trust

Pacific Shipping

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RK Shipping

Vanguard Marine

United Shippers

Nhava Sheva International Container Terminal

Great Eastern Shipping

Mumbai Port Trust

Shipping Group

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Objective of the
project

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 My main objective to analyses the practical uses of GAAP

(generally accepted accounting principle) in CPSA (Cargo


placement and shipping agency pvt limited Mumbai.)

 To know the uses of GAAP in ledger reconciliation, in audit

of cash book, quotation and invoice, and audit of voucher


and bank report form.

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Chapter no. 2

Analysis &
Interpreta GAAP

tion The phrase


"generally accepted accounting principles" (or "GAAP")
consists of three important sets of rules:

(1) The basic accounting principles and guidelines,

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(2) The detailed rules and standards issued by FASB and its
predecessor the Accounting Principles Board (APB), and

(3) The generally accepted industry practices.

If a company distributes its financial statements to the public, it


is required to follow generally accepted accounting principles in
the preparation of those statements. Further, if a company's
stock is publicly traded, federal law requires the company's
financial statements be audited by independent public
accountants. Both the company's management and the
independent accountants must certify that the financial
statements and the related notes to the financial statements
have been prepared in accordance with GAAP.

Financial accounting is information that must be


assembled and reported objectively. Third-parties who must rely
on such information have a right to be assured that the data are
free from bias and inconsistency, whether deliberate or not. For
this reason, financial accounting relies on certain standards or

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guides that are called "Generally Accepted Accounting
Principles" (GAAP)

Principles derive from tradition, such as the concept of


matching. In any report of financial statements (audit,
compilation, review, etc.), the preparer/auditor must indicate to
the reader whether or not the information contained within the
statements complies with GAAP.

 Principle of regularity: Regularity can be defined as

conformity to enforced rules and laws.

 Principle of consistency: The consistency principle

requires accountants to apply the same methods and


procedures from period to period.

 Principle of sincerity: According to this principle, the

accounting unit should reflect in good faith the reality of


the company's financial status.

 Principle of the permanence of methods:

This principle aims at allowing the coherence and


comparison of the financial information published by
the company.

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 Principle of non-compensation: One should show the

full details of the financial information and not seek to


compensate a debt with an asset, revenue with an
expense, etc.

 Principle of prudence: This principle aims at showing

the reality "as is”: one should not try to make things
look prettier than they are. Typically, revenue should be
recorded only when it is certain and a provision should
be entered for an expense which is probable.
 Principle of continuity: When stating financial
information, one should assume that the business will
not be interrupted. This principle mitigates the principle
of prudence: assets do not have to be accounted at their
disposable value, but it is accepted that they are at their
historical value (see depreciation).

 Principle of periodicity: Each accounting

entry should be allocated to a given period, and split


accordingly if it covers several periods. If a client pre-
pays a subscription (or lease, etc.), the given revenue
should be split to the entire time-span and not counted

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for entirely on the date of the transaction.

 Principle of Full Disclosure/Materiality: All information

and values pertaining to the financial position of a


business must be disclosed in the records.

Every day, accountants make judgments about how to record


business transactions. They often base their decisions on the
financial objectives of the companies for which they work. Other
times they turn to generally accepted accounting principles
(GAAP) to steer their decisions.

Generally accepted accounting principles, or GAAP for short,


are the accounting rules used to prepare and standardize the
reporting of financial statements, such as balance sheets,
income statements and cash flow statements.

GAAP is implemented through measurement


principles and disclosure principles. Measurement
principles recognize and determine the timing and basis of
items that enter the accounting cycle and impact the financial
statements, such as the period in which transactions will be
recorded. Disclosure principles determine what specific
numbers and other information are essential to be presented in
financial statement

Basically, GAAP is concerned with:

 The measurement of economic activity;

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 The time when such measurements are to be made and
recorded;
 The disclosures surrounding this activity; and
 The preparation and presentation of summarized economic
information in financial statements.

Benefits of GAAP:

1. Companies that comply with the GAAP Matching


Principle can accurately evaluate their performance over
a given accounting period because all expenses are
matched with the corresponding revenue.

2. These values can determine the exact return on


investment for specific expenses, and also determine the
actual profitability of certain initiatives such as investing
in new operational equipment or when buying
advertising.

3. In order to minimize errors and provide


accurate reporting of accounts throughout the
accounting period , companies can recognize
expenses and revenue as they occur within a giving period of
time.

4.The GAAP matching principle recognizes expenses when


they are incurred, and when they distinguishes between

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deferred and accrued revenue in order to determine its actual
value for the business at a certain point in time.

Without GAAP, companies would be free to decide for


themselves what financial information to report and how to
report it, making things quite difficult for investors and creditors
who have a stake in that company. Because financial statements
prepared under GAAP are intended to reflect an economic
reality.

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ANALYSIS

LEDGER RECONCILIATION:
LEDGER:

The General Ledger is the official record of all financial and


current year budgetary transactions.

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The general ledger is where all accounting transactions are
posted in a double entry system using debits (on the left) and
credits (on the right) for each transaction. An additional column
to the far right can keep a running total of activity in the
account, similar to your checkbook.

The debit and credit entries impact at least two ledger accounts
and it is usual to capture enough information in each leg of the
entry to be able to identify the other one. To extend the
comparison to your checkbook, if you also had a register for the
types of income and expenses you receive and pay, you could
set up a general ledger for yourself.

The general ledger provides data for the Balance Sheet and
either the Single-Step Income Statement or the Multi-Step
Income Statement (depending on which one the company
prepares.) The ledger can be electronic or physical depending
on whether you are using computer software or a manual
system.

The general ledger is the core of the company’s


financial records. These constitute the central “books” of
your system, and every transaction flows through the
general ledger. These records remain as a permanent track
of the history of all financial transactions since day one of
the life of your company.

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Reconciliation:

By reconciliation, we mean the comparing and reviewing of all


source documents to their corresponding entry into the general
ledger and expecting a match as to dollar
Amount, vendor, and source document/invoice number.

Steps followed in ledger reconciliation:

 We have taken the ledger of two parties, one is the CPSA


and one is another party.

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 After that we check the recorded amount in ledger by both
parties.

 Whatever amount recorded by both party is same or

different.

 If amount not recorded what, reason behind it.

 If amount is recorded different by party then finding the

differences.

 We see that which party is less/excess amount recorded, it


noted down in a page.

 And knowing that what will impact the recorded


less/excess amount on the business.

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AUDITING

AUDITING:

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To audit means to go through the process of examining and
verifying a company's financial records and supporting
documents.

While a business might go through an audit for any number of


reasons, such as wanting to attract investors, get a loan, or sell
the business, for many business people the word "audit" is
welded to the words "income tax".

AUDIT OF CASH BOOK:

Cashbooks are simple accounting books that are used to


record basic information about cash receipts and payments.

Providing an easy way of keeping up with how much money is


coming in and what bills are getting paid, the cashbook can be
effectively utilized by just about anyone.

The design of the sheets in a cash book is essentially a series of


columns. Like any accounting book, there is room provided to
add titles to each column.

This allows the end user to decide how much information about
each transaction will be entered into the cash book.

Generally, the date of the transaction, the amount, source of the


cash in or the recipient of the cash out, and the running balance
of cash on hand are considered basic.

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Some users may prefer to also include a description column
that allows more details about the reason for the transaction

Step followed in audit of cash book:

 Auditing has done for knowing the truthiness’ of the

recorded data.

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 In the auditing we check the cash book through voucher
file.

 Whatever amount is recorded in cash book its vouchers


available or not.

 The voucher amount and cash book amount are same or


different

 If amount is different what reason behind it.

 If any vouchers not available what reason.

 We see that if any payment happens above 5000, its

revenue stamped or not.

 We also see that any payment can not become


Rs 20000.

AUDITING OF QUOTATION AND INVOICE

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In the auditing of quotation and invoice we check the amount
of quotation and invoice.

Many time some amount which is recorded in quotation but


not recorded in invoice as vice-versa.

It was happens because party has passed the quotation but


the expenses not recorded in quotation and make the invoice
to the party.

Step followed in auditing of quotation and


invoice:

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 In invoice there are two type of amount one is taxable and
other is non taxable we check only taxable amount.

 In this we check that what amount recorded in quotation it


has been recorded in invoice or not.

 If recorded, then same amount or different amount.

 If amount founded different, to knowing the reason we


check that mount has been pass by the party or not.

 Finding which amount is recorded in quotation but not


recorded in invoice.

 And which amount is recorded invoice but not recorded in


quotation.

AUDITING OF VOUCHER AND BANK


REPORT FORM:

Voucher:

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A cash voucher is defined as any voucher, stamp or similar
document capable of being exchanged for a sum of money that
is greater than, equal to or not substantially less than the
expense incurred in providing the voucher by the person who
provides it.

Thus a voucher that is exchangeable for, say, £100 worth of


goods or £10 in cash, is unlikely to be a cash voucher and will
fall to be dealt with as non-cash voucher

The cash voucher legislation was introduced to counter specific


holiday pay stamp schemes. It is unlikely to have wide
application elsewhere, although it may catch, for example,
Premium Bonds.

Step follow in audit of voucher and bank report form:

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 For the auditing of voucher and bank report form
we need the voucher file of company and bank
report form.

 We check that whatever amount recorded in bank


report form its voucher available or not in file.

 If not available what is the reason.

 Which vouchers not available in file we noted in a


paper and further see that, voucher through
computer software?

Chapter no.3

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Research
finding

Practical uses of GAAP in overall


analysis:

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After the above analysis we find that how GAAP principle
applicable.

The entity concept or principle:

According to this principle the owner of the business is always


separated and distinct from the business or enterprise.
Business is treated here as a separate “unit “or “entity”. All the
business transaction is recorded in book of such an “entity” or
an artificial body.
The business and business and the business man are separate
according to this principle.
This principle is applicable in this organization because the
books maintained separately.

Matching concept or principle:

On the basis of this principle income statement is prepared. In


simple words, expanses are the cost of revenue. The company
prepared profit and loss account and balance sheet for
matching the revenue & expanses and assets & liability.
We founded that the matching principle followed by the CPSA
(cargo placement& shipping agency pvt ltd.)
Money measurement concept or principle:

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According to this principle each principle and event
are measurable in the term of money.
This principle is applicable in auditing of cash book because
whatever truncation happens in cash its voucher available as a
proof.

The periodicity concept or principle:

Financial accounts are prepared for the transaction happening


within a specific period for a year, and at the end of such period,
financial statement are prepared to ascertain the result of the
business. Thus, the above-stated period with a span of 12 month
is known as accounting period.
The company makes all the account from time to time like
ledger, profit and loss account, balance sheet, and audited of
balance sheet , audit of cash book, audit of bank report form etc.

The going concern concept or principle:

The going concern principle tells that the will going


continuously. It will never stop. This principle is applicable in
this organization because they maintain all the account timely
so they assume that company will go continuously.

The cost concept or principle:

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Under this principle, an asset will be recorded in the books at
its cost, the price paid or to be paid to acquire the said asset. It
means the asset will be recorded on the historical cost. This
principle is also applicable in this organization.

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Chapter no. 4

Analysis of
finding

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After the above analysis we find that the GAAP principles are
applicable in CPSA. Those principles
are given bellow.

 The entity principle.

 Matching principle.

 Money measurement principle.

 The periodicity principle

 The going concern principle.

 The cost principle.

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Chapter no.5

Limitation of
project

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 The one main limitation of this project is that I have
only analyzed the GAAP principle in MUMBAI
branch.
 Maximum data collected through websites.
 Analysis has done on the base some past data.

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Chapter no.6

Suggesti
on

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 After the above analysis we can
say that the CPSA should be following the
GAAP principle.

 Because it will help in the growth of the


organization.

 It will also show the true position of


company.

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References:

The references are-

www.cargoplacement.com
www.google.com
www.icai.com

 Financial accounting book.


 ICAI monthly journal.
 Organizational data.
 Cash book 2008-09.

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 Ledger 2008-09.
 Voucher files.
 Quotation file.

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