cpsa project

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


LUCKNOW

C a r g o P l a c e m e n t & S h i p p i n g A g e n c y P v t L t d M u m b a i Page 36

TO ANALYSE THE PRACTICAL USES OF GAAP

Submitted By

SATYA BRAT

(Roll No. : PG/08/35S)


LUCKNOW


Certificate

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:

C a r g o P l a c e m e n t & S h i p p i n g A g e n c y P v t L t d M u m b a i 6

ABSTRACT

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


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


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

TABLE OF CONTENT:

S NO. CONTENT PAGE NO.1 certificate 4


2 Abstract 5

3. Acknowledgement 6

4. declaration 7

5. Table of content 8-9

6. Introduction background 10-14

7. Mission 15

8. SWOT analysis 33-34

9. Competitor 35-36

10. Objective 37-53

11. Analysis and interpretation 54-55

12. Research finding 56-57

13. Analysis of finding 58-60

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

References


Chapter no.1

Introduction and background

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

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.”


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!"


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;

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:


AIR/SEA EXPORT PROCESS:


CMD

CEO

GENRAL MANAGER

OPERATIONOPERATION ACCOUNTINGACCOUNTING MARKETINGMARKETING FORWARDINGFORWARDING

AIR EXPORT/IMPORTAIR EXPORT/IMPORT

SEA EXPORT/IMPORTIMPORT

SENIOR ACCOUNTANTSENIOR ACCOUNTANT

BRANCH SECTIONBRANCH SECTION

OUTSTANDING SECTIONOUTSTANDING SECTION

BILLING SECTIONBILLING SECTION

PAYMENT SECTIONPAYMENT SECTION

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.

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.


Packing list

Invoice

(Submitted in bank)

(export/import code copy) it

used for checking Registration

After being registered

in Custom

AIR/SEA IMPORT PROCESS:


SDF form

IEC Copy

Custom

Shipping bill filed in custom

Shipping no. is given

Costing

Examining report

Report handed to Steamer Company

Shipping copy

Custom copy

Export copy

Exchange control copy

Warehouse copy

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:

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

Shipping gives as proof


Bill of landing

IGM no.

Import general manifest

Exporter issue

Cost

insurance freight

Cost & freight

Freight on bill

Issued by ShippingCompany Prepared by

CPSA to custom

Provided by custom if

TR 6 + checklist is ok

Clients of CPSA


Invoice details

Invoice term

C&F

FOB

CIF

Checklist

Bill of entry

TR 6 given to bank for payment

D/O delivery order

Cargo is examined by custom

There are some clients of CPSA which are given

below.

Aban Offshore Ltd.

Aegies BPO Ltd.

Amol Paper Mills Ltd.

Archies Ltd.

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.

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,

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

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:


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.

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

- 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. IndiaTel: 022-2825 0581/2/3/4 Fax: 022-2825 0585

E-mail: [email protected] Website: www. cargoplacement.com


http://www.cargoplacement.com/

mailto:[email protected]

BRANCHES OF CPSA IN INDIA:

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.

Delhi Delhi

CalcuttaCalcutta

ChennaiChennai

BangaloreBangalore

CochinCochin

IndoorIndoor

Mumbai (Head office)

Mumbai (Head office)


Lack of communication. Very long product development time. Poor brand awareness.

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.


http://images.google.co.in/imgres?imgurl=http://www.followupsuccess.com/wp-content/uploads/2008/11/business-threat-men-holding.jpg&imgrefurl=http://www.followupsuccess.com/2008/11/19/swot-analysis-identifying-your-threats/&usg=__gKeytkDzkL6x4EBMAnySZZxVRnE=&h=344&w=351&sz=148&hl=en&start=26&tbnid=89Dll0Xn0t2AfM:&tbnh=118&tbnw=120&prev=/images%3Fq%3Dpicture%2Bof%2Bthe%2B%2Bcompany%2527s%2BSWOT%2Banalysis%26gbv%3D2%26ndsp%3D20%26hl%3Den%26sa%3DN%26start%3D20

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


http://maps.google.co.in/maps/place?cid=5974594100417576365&q=shipping+companies+in+mumbai+india&gl=in&hl=en&cd=8&cad=src:pplink&ei=cAboSpzMJ4XKuwPRwfX-CA







Challenge Logistics

Jawaharlal Nehru Port Trust

Pacific Shipping

RK Shipping

Vanguard Marine

United Shippers

Nhava Sheva International Container Terminal

Great Eastern Shipping

Mumbai Port Trust

Shipping Group


Objective of the project


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.


Chapter no. 2


Analysis & Interpretation

GAAP

The phrase "generally accepted accounting principles" (or

"GAAP") consists of three important sets of rules:

(1) The basic accounting principles and guidelines,

(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.


http://www.accountingcoach.com/terms/G/generally-accepted-accounting-principles.html

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

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.

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).


http://en.wikipedia.org/wiki/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

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

C a r g o P l a c e m e n t & S h i p p i n g A g e n c y P v t L t d M u m b a i

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;

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

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.


http://www.ehow.com/about_4679160_what-gaap-matching-principle.html

ANALYSIS


LEDGE

R RECONCILIATION:

LEDGER:

The General Ledger is the official record of all financial and

current year budgetary transactions.

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.


http://www.college-cram.com/study/accounting/presentations/721





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.

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.

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.


AUDITING


AUDITING:

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.

Some users may prefer to also include a description column

that allows more details about the reason for the transaction


http://www.wisegeek.com/what-is-a-running-balance.htm

Step followed in audit of cash book:

Auditing has done for knowing the truthiness’ of the

recorded data.

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

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:


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:

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:


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


Research

finding

Practical uses of GAAP in overall analysis:

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:

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:


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.

Chapter no. 4


Analysis of

finding

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.

Chapter no.5


Limitation of

project


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.


Chapter no.6

Suggestion


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.


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.

Ledger 2008-09.

Voucher files.

Quotation file.


http://www.icai.com/

http://www.google.com/

http://www.cargoplacement.com/

cpsa project

Documents