SUMMER INTERNSHIP REPORT ON “FINALISATION OF

ACCOUNTS IN COMMERCIAL ESTABLISHMNET” AT RYK

FREIGHT & FORWARDERS PVT LTD

SUBMITTED BY
SHANMUGAM.S
REGISTER NO: 531800388
IN PARTIAL FUFILMENT FOR THE AWARD OF
MASTERS DERGEE IN COMMERCE
UNIVERSITY OF MADRAS

2018-2020

AGURCHAND MANMULL JAIN COLLEGE

MEENAMBAKKAM, CHENNAI - 600114.
 CERTIFICATE

This is to certify that the summer internship report on, “FINALISATION OF

ACCOUNTS IN COMMERCIAL ESTABLISHMENTS” at RYK
FREIGHT & FORWARDERS PVT LTD submitted by SHANMUGAM.S is
a bonafide work in partial fulfilment of the requirements for the award of
Master’s Degree in Commerce (2018-2020) A.M.JAIN COLLEGE,
affiliated to THE UNIVERSITY OF MADRAS.

Head of the department

Place: CHENNAI

Date:

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 DECLARATION

I SHANMUGAM.S Post Graduate student of the Department of Commerce,

A.M.JAIN COLLEGE hereby declare that I have submitted the summer
internship report on “FINALISATION OF ACCOUNTS IN
COMMERCIAL ESTABLISHMENTS” at RYK FREIGHT &
FORWARDERS PVT LTD as a part of the course requirement.

I further declare that the information presented in this report is true and orginal
to the best of my knowledge.

Candidate’s Signature

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 ACKNOWLEDGEMENT

I am immensely thankful to the RYK FREIGHT & FORWARDERS PVT

LTD management for providing a conducive ambience and state of the art
infrastructure, aiding me to fulfil my academic assignments during these one
month of my work experience in your company.
I extend my sincere thanks to Mr. CT. SHANMUGAM DIRECTOR OF
RYK FREIGHT FORWARDERS PVT LTD for his continuous guidance and
support during the internship tenure from 14/05/2019 to 13/06/2019.

My heartfelt thanks are due to Mr. Vijay Kumar Accountant of RYK

FREIGHT & FORWARDERS PVT LTD for his unstinting encouragement
and invaluable support in completing this internship.
I express my warm thanks with a dep sense of gratitude to Mr. Vijay Kumar
Accountant of RYK FREIGHT & FORWARDERS PVT LTD for providing
the right direction and much needed support with his vital inputs in the conduct
of the survey and execution of this internship report.
I am indebted to all the employees of RYK FREIGHT FORWARDERS PVT
LTD and the Respondents, for their guidance and cooperation extended in
completion of my internship.
To the almighty, I owe everything

SHANMUGAM.S

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Contents
CHAPTER 1: INTRODUCTION ........................................................................................................................ 6
CHAPTER 2: TYPES OF FREIGHT FORWARDERS ................................................................................... 9
CHAPTER 3: OBJECTIVE ...............................................................................................................................11
CHAPTER 4: LIMITATIONS ..........................................................................................................................12
CHAPTER 5: PROFILE OF THE ORGANIZATION ...................................................................................13
CHAPTER 6: JOB PROFILE ...........................................................................................................................16
CHAPTER 7: JOB EXPERIENCE ...................................................................................................................17
CHAPTER 8: SUMMARY AND CONCLUSION ...........................................................................................33

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CHAPTER 1: INTRODUCTION
A freight forwarder, forwarder, or forwarding agent, also known as a non-vessel
operating common carrier (NVOCC), is a person or company that organizes shipments
for individuals or corporations to get goods from the manufacturer or producer to a
market, customer or final point of distribution. Forwarders contract with a carrier or often
multiple carriers to move the goods. A forwarder does not move the goods but acts as an
expert in the logistics network. These carriers can use a variety of shipping modes,
including ships, airplanes, trucks, and railroads, and often do utilize multiple modes for
a single shipment. For example, the freight forwarder may arrange to have cargo moved
from a plant to an airport by truck, flown to the destination city, and then moved from the
airport to a customer's building by another truck.
International freight forwarders typically handle international shipments and have
additional expertise in preparing and processing customs documentation and performing
activities pertaining to international shipments.
Information typically reviewed by a freight forwarder includes the commercial
invoice, shipper's export declaration, bill of lading and other documents required by the
carrier or country of export, import, and/or transhipment. Much of this information is now
processed in a paperless environment.
The FIATA shorthand description of the freight forwarder as the "Architect of
Transport" illustrates the commercial position of the forwarder relative to its client. In
Europe, some forwarders specialize in "niche" areas such as rail-freight, and collection
and deliveries around a large port.
History of freight forwarding services
One of the earliest freight forwarders was Thomas Meadows and Company
Limited of London, England, established in 1836. According to "Understanding the
Freight Business," written and published by the executive staff of Thomas Meadows and
Company in 1972, the advent of reliable rail transport and steamships created demand for
the fledgling freight forwarding industry. Trade developed between Europe and North
America, creating additional demand. The first international freight forwarders were
innkeepers in London who held and re-forwarded the personal effects of their hotel
guests.
The original function of the forwarder was to arrange for carriage by contracting
with various carriers. Forwarder responsibilities included advice on documentation and
customs requirements in the country of destination. His correspondent agent overseas
looked after his customers' goods and kept him informed about matters that would affect
the movement of goods.

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 In modern times, the forwarder accepts the same responsibilities. It operates either
as a domestic carrier or otherwise with a corresponding agent overseas or with his own
branch-office. In a single transaction, the forwarder may be acting as a carrier (principal)
or as an agent for his customer or both.
Freight Forwarders main functions
Following the sequential order of international trade operations, the freight
forwarders perform the following functions:
 Advice on export costs, including freight costs, port expenses, consular fees,
special documentation costs, insurance costs and merchandise costs.
 Planning the most appropriate route for a shipment, taking into account the
perishable or dangerous nature of the goods, cost, transit time and safety.
 Reservation and contracting of the necessary cargo space on a ship, aircraft, train
or truck.
 Advising and contracting insurance for transportation of the merchandise on behalf
of the client and, if applicable, assistance in the event of an accident.
 Advice on the most appropriate way to transport cargo and carry out the procedures
for packing, stowing and loading the merchandise.
 Preparation and presentation of Transport and Trade Documents required for
export and import, such as the CMR, Bill of Lading, Airway Bill, etc.
 Handling with customs agents abroad to ensure that goods and documents comply
with customs regulations.
 Acting as an intermediary in customs negotiations around the world to guide the
cargo efficiently.
 Use of e-commerce, Internet technology and satellite systems to allow real-time
tracking of the transport of goods.
 Advice on legislation affecting international trade, political and social situations
(strikes) as well as other factors that may affect the movement of goods.
Freight forwarders as agents or principals
A freight forwarder acts as an agent when he performs functions on behalf of, and
under the instructions of, the principal (the exporter or importer). As an agent, the
forwarder will procure the services of third parties who will perform the packing, storage,
transport, handling and customs clearance of the goods. The agent thus acts as an
intermediary, “introducing”, in a manner of speaking, the principal to the service
providers. The principal then enters into direct contractual relations with the service
providers. Consequently, the forwarders are generally not liable for the errors or breaches
of the service providers. As with other agents, the forwarder owes the principal various

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duties, including the duty to inform and the duty of diligence (see Chapter 5 on agency
law).
When the forwarder acts as a principal, it contracts directly the exporter or importer
(the “customer”). The customer will deal only with the forwarder, who will issue a single
bill to the customer for the total amount of services rendered. As a principal, the forwarder
is generally liable for the errors or breaches of the sub-contracted service providers.
It is also possible for a forwarder to enter into “hybrid” arrangements, acting as
agent for certain functions and as principal for others.

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CHAPTER 2: TYPES OF FREIGHT FORWARDERS

There are different types of freight forwarders, depending on the activities they
carry out and also the title they have that allows them to be accredited in certain Official
Registers, which is obligatory to carry out certain activities. From the highest to the
lowest level of services, the following types of operators and agents can be distinguished
as freight forwarders:

a. Consolidators/NVOCC (Non-Vessel Operating Common Carriers)

This function involves grouping or assembling diverse shipments from various
customers so as to make up full container loads, thus obtaining lower freight rates. Some
consolidators offer regular shipments on seagoing vessels that they do not own; these are
referred to as NVOCCs.

b. Multimodal (or intermodal) transport operators (MTO´S)

A multimodal transport operator offers “one-stop shopping” for traders. This
enables traders to completely outsource or sub-contract their export logistics to a single
service provider. Multimodal transport operators typically offer “door-to-door” transport,
with coverage of all related functions such as insurance, customs, warehousing, etc.

c. Customs brokers
These parties act as the agents of exporters and importers in order to process
customs declarations and other formalities and pay duties and taxes. Because they may
be liable for very large payments of duties or fines, customs brokers are usually bonded
by banks or insurance companies. Traders should take care to give precise directions and
limits to customs brokers to avoid incurring liability in the event that an unexpectedly
high tariff or fine makes it uneconomical to process a particular shipment.

d. Port (sea port, airport or cargo terminal) agent

This agent represents the shipper at the point where the goods are transferred from
one transport mode (typically, from a truck or lorry) to another (as to a seagoing vessel
or airplane).

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e. Air freight agent (air waybill agent)
These agents process shipments for airlines and may have the authority to issue air
waybills. Frequently, the air freight agent also handles custom clearance.

f. Road haulage brokers

Road transport is characterized in many countries by the proliferation of small
service providers. Road haulage brokers acts as intermediaries between road carriers and
shippers and are usually paid by commission.

g. Loading brokers
These brokers act as the agents of ship owners to obtain and process cargo
shipments. Commonly, a freight forwarder will represent the shipper while a loading
broker represents the ship owner, so that there are two intermediaries between the
customer and the transport provider.

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CHAPTER 3: OBJECTIVE

 To develop business contacts who may prove useful in finding a job or

acting as reference in the future,
 To learn the experience in maintaining the book of accounts,
 To develop the skills of the accountant for the company,
 To know the various duties of the accountant in the company,
 To know how to file GST-returns in the company,
 To gain exposure and practical experience in the application of
theoretical knowledge to real-world business situations and
 To gain professional attitude, maturity and growth.

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CHAPTER 4: LIMITATIONS

 Since the internship is for a very short period (4 weeks), it is rather

difficult to gain all the experience and knowledge of the internal
working.
 Since there are lot of work and the time period is very shot it is difficult
to work in all areas for the given responsibilities.
 Since from our college 6 students went for the internship to the company,
it is difficult to act as the team leader for other 5 students it is difficult
to divide the job and give to them.
 Due to such a time constraint (4 weeks), the intern does not get an
opportunity to explore all departments of the company, therefore we can
concentrate only on the accounts department of the company.
 Confidentiality of data by the bank was one of the limitations of this
internship.

Therefore, the internship program was undergone at RYK FREIGHT &

FORWARDERS PVT LTD, Linghi Chetty Street, Paris, Chennai for a period
of 4 weeks.

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CHAPTER 5: PROFILE OF THE ORGANIZATION

RYK FREIGHT & FORWARDERS PVT LTD:

RYK FREIGHT & FORWARDERS PVT LTD was established in 1998 as a
Private Limited company by its previous directors and in 2005 the company was
purchased by Mr. CT. S. Chidambaram who was the founder and the first director of the
CTS groups of companies. Mr. CT. S. Chidambaram and his son Mr. CT. Shanmugam
was the directors for the company. Before the starting of our internship program Mr. CT.
S. Chidambaram was died on 08.05.2019 at the age of 59 and his daughter-in-law Mrs.
Egammai Shanmugam was appointed as the director of the company on 20/05/2019. It is
the clearing and forwarding company. Which has the main business of clearing the goods
from harbour to their customer’s warehouse. With the help of his subsidiary firm SHRI
MUTHU TRANSPORT which has more than 20 Tankers and Lorries for taking their
goods from port and delivery it to their customers on time. The main customer of the
company are Kaleesuwari Private Limited, KTV etc. for them they are clearing the import
edible oil from the port and paying necessary custom duties on behalf of the customers.
There is no GST for the company even though the company pay a GST at 5% on the
amount received from the customer. So that their customers can get the benefit of
“INPUT TAX CREDIT” (ITC) for their company. Their main service is to clearing the
goods from the customs station. If the customer’s request for transport of goods with the
help of Shri Muthu Transports the Company will provide the transport services also. The
office is located in Chennai, Thoothukudi and Visakhapatnam. At present the directors
of the company are Mr. CT. Shanmugam and Mrs. CT. Egammai Shanmugam and Mr.
CT. Shanmugam is the General Manager of the company. The company has got The Port
Trust Award for the year 2014 on 15 Aug 2015 in Chennai Port Trust.
The subsidiary companies and the firm which the company’s directors have
substantial in which I had to do my internship work. They are:
CTS Group of company includes the following companies.
 CT.S. CONSTRUCTION.
 CT.S. TRAVELS AND TOURS.
 SHRI MUTHU TRANSPORT.
 SHRI MUTHU ENERGIES.

CT.S. CONSTRUCTION:
It is a construction company which was the first company started by Mr. CT. S.
Chidambaram in the CTS Group of Companies in the year 1995 and it was a sole

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proprietorship concern. The firm first catch the market and various project by way of
making the contract to the land owners that the firm will give certain amount of amount
for the land and give a flat for the owners in their land. Now a day’s most of the
construction company are following the same way in order to get new projects like
building apartments. Apart from building the apartment the firm also constructed the
various individual houses. Firm have constructed more than 100 projects in and around
Chennai city especially in Adambakkam and other parts of Tamil Nadu and the firm also
engaged in real estate business in Chennai, Sivaganga, Madurai and other parts of Tamil
Nadu and other parts of south India. During recent year there were not more projects
when compare to last 2 decades. After the death of the Mr. CT. S. Chidambaram the
owner of the concern the firm was dissolved and final accounts of the business up to the
date of his death and it is file to the corporation and permission for formed in the same
name has been obtained under the ownership of Master. Ct. S. Chidambaram (Minor)
Grandson of Late CT. S. Chidambaram. According to the Guardians and Wards Act,
1980, business is controlled by his father Mr. CT. Shanmugam. Now the major decision
are taken by Mr. CT. Shanmugam according to the Guardians and Wards Act, 1980. He
has the substantial interest in the firm.

CT.S. TRAVELS AND TOURS:

CT.S. Travels & Tours is the transport company it was owned by Mr. CT.
Shanmugam and it is a sole proprietorship concern. Which was started in the year 2008
with 2 buses at present there are 4 buses. Which has been started with the idea of one fine
night our trip to our native seemed so tough, it was the confusion to take a series of buses
to reach native or prefer a car to reach, but both looked quite tedious. If we took a bus,
we had to break our journey multiple times. If it was the car, we had to make sure the
driver was awake and alert. Thanks to that Day!!! It would have been simpler if we had
a direct bus to our native. Rather than waiting for somebody else to start, WE STARTED.
Our idea for CT. S. Travels & Tours was born. At first the company was start with 2
Buses from Chennai to Keelasivalpatti and return on daily basis up and down trip on
every night after that the company purchased 2 more buses rout from Chennai to
Pudukkottai and return on the daily basis up and down trip for every night in the week in
all months. The office are located at Chennai Koyambedu, Bathalagundu, Cumbam,
Keelasivalpatti, Thirupathur, Pudukkottai and Vairavanpatti.

SHRI MUTHU TRANSPORT:

Shri Muthu Transport firm was a sole proprietorship concern which was owned by
one of the director of RYK FRIEGHT & FORWARDERS Mr. CT. Shanmugam and it

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was formed in the year 2012 after purchase RYK FRIEGHT & FORWARDERS. This
company mainly a service provider company which provide transport service to the RYK
FRIEGHT & FORWARDERS and other companies. In this company they have more
than 20 tankers and Lorries for carrying the load from the port harbour and delivery to
the customer’s warehouse and factories and various other services like inter and intra
state carriage of goods is also done by the firm.

SHRI MUTHU ENERGIES:

Shri Muthu Energies was a petrol bunk which was owned by Mr. CT. S.
Chidambaram it was sole proprietorship concern and was started couple of years before
only. After the death of the former owned Mr. CT. S. Chidambaram the ownership was
transferred to his daughter in law Mrs. Egammai Shanmugam. The petrol bunk was
located in Keelasivalpatti, Sivaganga District, Tamil Nadu. In This petrol bunk there are
3 products which are sold they are High Speed Diesel (HSD), Petrol (MS), 2T Oil and
Other engine oils.

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CHAPTER 6: JOB PROFILE

I worked as the financial assistant in the finance department of the above

mentioned company. The following are the works which are provided to our financial
Team. They are:
 To pass the journalise entries of the companies in tally,
 To maintain the cash book and bank book of the companies,
 To maintain the vouchers of the companies,
 To audit the previous year accounts of the above mentioned companies,
 To file GST returns for the companies,
 To Recording of sales in Petrol Bunks,
 To help accountant in the company for change in director of the private
Limited Company,
 To apply DIN number for the newly appointed director of the company
and
 To Dissolution and reformation of the sole proprietorship Concern and
form it with the same name.

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CHAPTER 7: JOB EXPERIENCE
 To maintain the vouchers of the companies:
Voucher preparation is very important and responsible job of an accountant. Before
he prepares the vouchers, he has to clear the following terms:
What is Voucher?
First of all, we would like to understand the meaning of voucher. Voucher is a very
primary accounting record which shows the authenticity of the transactions in any
business. In business so many transactions take place. To record any transaction in
account books, first of all a voucher is need to be prepared by the accountant. Therefore,
we call the vouchers as the base of the accounting system.
Voucher is prepared by the accountant with the help of source document. Source
document means any proof relating to the business transactions. These documents include
bills, bank deposit slips, cheque book counter foils, challans and other details which show
the happening of any transaction in a business.
The proforma of a voucher different from company to company but all the
vouchers have almost same details which are to be shown in it. A voucher shows the
following details such as
 Serial number of voucher
 Type of Voucher
 Date of Voucher
 Debit Column
 Credit Column
 Amount in figures and words.
 Total Column
 Particulars column in which brief description of the transaction is being
mentioned
 Signature of accountant
 Signature of Manager or other authorised person.
 In Case of Payment Vouchers the signature of receivers is also shown.
Types of Vouchers: Generally, the following types of vouchers are prepared in a business
firm:
 Cash Payment Voucher
 Bank Payment Voucher or Cheque Payment Voucher
 Cash Receipt Voucher

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  Bank Receipt Voucher or Cheque Receipt Voucher
 Contra Voucher
 Purchase Voucher
 Sales Voucher
Duties of Accountant in respect of preparation of any voucher:
Vouchers are the base of whole accounting system. The accountant has to be very
careful while preparing the vouchers. Voucher is an initial document of accounting
system. If there is any mistake while preparing the voucher then everything, automatically
will become wrong. Therefore, an accountant must follow the following procedure while
preparing the vouchers.
 He must verify the supporting documents thoroughly in respect of date, amount,
nature of transactions etc.
 The supporting documents must be approved by an appropriate authority.
 Then, the accountant has to select the type of voucher to be prepared for the
transaction.
 He must have the thorough knowledge of accounting rules.
 He has to make sure that the total of debit and credit side of voucher are equal.
 The accountant must have good command over the various accounting heads which
are supposed to be debited or credited.
Simple Rules of Accounting:
As we know that the voucher contains debit and credit part. But what is debit and
what is credit? One has to understand it very thoroughly because whole accounting
system depends on debit and credit. In accounting system we follow the double entry
system. It means that according to the nature of transaction, one account head is to be
debited while other account head is to be credited with the same amount.
Account head means a name of account under which all similar type of transactions
are recorded. For example: All expenses relating to printing and stationery will be
debited under “Printing & Stationery Expenses Account” head. All Sales will be recorded
under “Sales Account” and so on. These accounting heads are prepared after keeping in
view the requirement of management or by concerned laws. Normally, the nature of the
transactions are self-explained by the account heads. Therefore the accountant should
enter the vouchers correctly to the respective “head of accounts”. While preparing the
vouchers the golden rule of accounting should be followed.
First: Debit what comes in, Credit what goes out.
Second: Debit all expenses and losses, Credit all incomes and gains.

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 Third: Debit the receiver, Credit the giver.

 To pass the journalise entries of the companies in tally:

Today world is a digital word, therefore every company now a day are maintain
the account in the digital form by using the software’s like Tally EPR 9. In this company
the accounting software which has be maintained is Tally.ERP 9
What is Tally.ERP9?
Tally.ERP 9 is one of the most popular accounting software used in India. It is a
complete enterprise software for small & medium enterprises.
Tally.ERP 9 is a perfect business management solution and GST software with an
ideal combination of function, control and in built customisability.
Tally.ERP 9 permits business owners and their associates to interact more in
accounts related discussions and is a complete product which retains its original
simplicity but yet offers comprehensive business functionalities such as Accounting,
Finance, Inventory, Sales, Purchase, Point of Sales, Manufacturing, Costing, Job Costing,
Payroll and Branch Management along with compliance capabilities for Excise, TDS,
TCS, and now GST too!
The job of the accountant is to carefully journalise the transactions of the business.
The entries should be passed in the accounting software and the basic accounting
principles should be followed on journalising the transactions. The accounts should be
posted in the respective heads it can be find out with the help of using the “Golden rules
of accounts”. The entries are made based on the vouchers. Which is the primary
accounting record which shows the authenticity of the transactions in any business.

 To maintain the cash book and bank book of the companies:

Maintaining books of accounts is the primary accounting record which shows the
authenticity of the transactions in any business. Therefore, it is important to the
accountant to maintain the books of accounts of the firm. The books should be maintained
according to the basic principles of accounting and the journal entries should be passed
according to the Indian Accounting Standard. With the help of the bookkeeping the final
accounts of the company can be made and maintain book of accounts is compulsory
according to the requirement under Law.

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Important of maintaining the books of accounts:
1. Bookkeeping Helps You Budget
Bookkeeping is important because it helps you budget. When income and expenses
are properly organized, it makes it easier to review financial resources and expenses. A
budget creates a financial roadmap for your business. With a budget, you can plan for
future expenses and the anticipated resources that would cover those expenses.
2. Tax Preparation
In most cases, your business has to file a tax return every year. And every year,
millions of business owners are scrambling through their desk to find missing paperwork.
Sound familiar? The tax filing process can be made more efficient by simply having a
bookkeeping function within your company. Bookkeeping is important for filing your
personal tax return too. As a business owner, a large part of your income comes from
your business. In order to know how much you earned, you have to know what your
business earned first. With a bookkeeping process in place, you can have financial
information ready for tax time. Instead of scrambling for receipts or invoices, all of your
financial information is organized on one central system.
3. Organization
Being organized is a skill every business owner should have. You should be able
to find information regarding your business at any time. There are a few parties that are
interested in your company’s financial records – the IRS, employees, customers,
investors, and lenders. Being able to provide the information requested by these parties
are vital to your ongoing operation. If you don’t provide records requested the IRS, that
could mean penalties and fees. If you don’t provide records requested by investors or
lenders that could mean a stoppage of cash flow and so on. Being disorganized with your
books could cause your relationships with these parties to be compromised or terminated
altogether. By definition, bookkeeping is the organization of financial information.
Keeping your financial records organized makes it easier to locate and provide to
appropriate parties.
4. Analysis
Bookkeeping is important because it helps with business analysis. It is a tool used
by management to analyse business performance. The product of bookkeeping is
financial statements. Financial statements should be regularly generated and used for
analysis. While analysing financial statements, you can track your cash inflows and
outflows. Bookkeeping gives you information on which business lines are working or not

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working. This type of analysis allows to focus on your company’s strengths and improve
on its weaknesses.
5. Better Decision Making
With analysis comes better decision making. In order to make the best decisions
possible, you need to have access to all available information. Bookkeeping provides this
information. How can you expect to make profitable decisions without financial
information to back it up?
6. Planning Purposes
Bookkeeping presents the past financial performance of your company. In order to
plan for the future, you have to have a good understanding of the past. Bookkeeping will
give you the clear picture of what exactly works or doesn’t work. Bookkeeping not only
helps with planning for strategic purposes but also plays a major role in tax planning. It
gives your CPA the necessary information to properly categorize revenues and expenses.
With bookkeeping, you and your CPA can structure certain expenses to be more
favourable. For example, if you have regular meetings with your clients, you might decide
to provide lunch during your meetings. This has favourable tax benefits for your business.
7. Easy Reporting to Investors
Investors want to know the financial performance of your business to be able to
want to quantify the value of their investment. Financial statements do just that. The
balance sheet, income statement, and cash flow statement all present the value of your
business. As stated previously, the product of bookkeeping is financial statements.
Bookkeeping allows investors to have up-to-date and accessible information. Investors
will be able to make better, well informed, decisions which is the ultimate purpose of
bookkeeping. Bookkeeping is not only for current investors but for future investors too.
Prospective investors are more likely to invest in your business when you have organized
financial information. Think about it, if you were an investor, would you invest in a
company that didn’t have accessible and organized financial records?
8. Financial Management
Bookkeeping is important because it allows you to take control of your business’
finances. Bookkeeping paints a clear picture of how you spend money. You can see
outstanding invoices owed by you or your customers. You will benefit from paying your
bills on time and receiving payment for your products or services on time too. It’s this
delicate balance of cash inflow and outflow that will keep your business going.

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9. Peace of Mind
Disorganized books can weigh heavy on your mind as a business owner. With all
of the other factors of running a business, your bookkeeping should not be keeping you
up at night. When your books are complete, you can rest easy knowing that your
company’s financial information is review ready. Banks or the IRS no longer have to give
you anxiety. Instead, you’ll find your mind at ease and more focused on other elements
of your business.
10. Track Profit and Growth
Bookkeeping is important because it shows your business’ profitability. For
example, the income statement is one of the financial statements that is prepared from
your bookkeeping. On the income statement, you can see if your business is profitable or
not. Without this information, it is impossible to know how well (or not so well) you’re
doing. Bookkeeping also helps with tracking growth. Over time, you will accumulate
months and years of data. With this data, you can observe trends and gain a greater
understanding of your business cycles and compare results across periods.
11. Better Cash Flow
Bookkeeping improves your cash flow. The routine recording of revenues,
expenses, liabilities, and receivables, will allow you to track when your customer and
vendor invoices are paid. As a business, you want to ensure that your customer invoices
are being paid in a timely manner. The sooner, the better. Paying your vendor invoices
should also be done in a timely manner, to avoid any late fees.
How does bookkeeping help improve cash flow?
Because bookkeeping provides information regarding your outstanding invoices –
customer/vendor name, amount, date issued and due date – which can be used to
implement better cash flow policies. Some examples are shortening the amount of time
you allow your customers to pay you. On the flip side, you can delay the payment of
vendor invoices by waiting until a day or two before the due date. By doing so, you are
increasing the average amount of cash you have on a hand at any given time.
12. Greater Focus on Strategy
Tactical and strategic planning is the core of what you do as a business owner.
You’re always thinking of ways to grow and develop your business. With bookkeeping
as a tool, you are closer to your short and long-term goals. You should use the information
that bookkeeping offers to focus on strategy. You can track the results of your strategy
with bookkeeping and adjust goals accordingly.

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13. Easier IRS Audit
In the unfortunate circumstance, you are audited by the IRS, you want to make sure
your books are in order. Messy books prolong the auditing process, making your business
more susceptible to fees and penalties. If the IRS feels that your books are disorganized
or outdated, they have more motivation to impose penalties. When faced with an audit,
it’s best to make their job as easy as possible by providing what they request in a timely
matter. Otherwise, you give them time to find more issues with your company.
14. Requirement under Law
Last, but certainly not least, the law requires you to keep financial records for your
company. Depending on your legal structure, the law requires you to keep financial
records separate from your personal expenses. Failing to do so, can lead to termination
of your business.

 To audit the previous year accounts:

As the part of the work it is necessary to audit the previous year accounts. It is
necessary to find out the whether the book of accounts are maintained properly are not.
First of all the voucher has to be checked whether they are in chronological order are not
if any of the voucher is missing the voucher numbers should be noted. Have to check
whether all the vouchers are attached which the supporting document if not that should
also be noted.
Next is to check whether all the book entries are correctly passed are not whether
there is any mistake in the amount entered, the calculation the total, corresponding error
etc. should be taken noted.
Next step is to find out the whether the balance in the cash book and current balance
are the same and the pass book bank balance and the bank book balance are same or not.
If not so the preparation of the bank reconciliation of statement becomes necessary. The
reasons for the difference can also be find out.
Next step is the preparation of the final accounts that is to prepare the trading and
profit and loss account of the concern. To check the financial position of the business.
The noted mistakes should be reported to the senior accountant and the
management (Directors) of the company.
Ratifying the errors:
For the missing vouchers the new vouchers has to be created. For the missing
journal entries the corresponding journal entries has to be made and for the errors like

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error of omission, error of commission, error of principle etc. Should be rectified by
entering corresponding journal entries should be made in the books.
The tally report and the calculated final report should be tallied if not there are any
difference the between the two should be find out.

Benefits of auditing:
Anyone whose business has a number of staff, functions, office locations or
technical systems that she/he is not personally and solely operating may run the risk of
errors or irregularities occurring in their business. It is also desirable to check and deter
fraud by carrying out a regular audit.
An audit helps to identify weaknesses in the accounting systems and enables us to
suggest improvements.
An audit assures directors not involved in the accounting functions on a day-to-
day basis that the business is running in accordance with the information they are
receiving, and helps reduce the scope for fraud and poor accounting.
An audit facilitates the provision of advice that can have real financial benefits for
a business, including how the business is running, what margins can be expected and how
these can be achieved. Advice can cover anything from the tightening of internal controls,
to reducing the risk of fraud or tax planning.
An audit will enhance the credibility and reliability of the figures being submitted
to prospective purchasers. If an owner manager is planning on selling in the next 3 years,
it may be beneficial to carry out regular audits.
An audit may be advantageous if a company is growing and likely to exceed the
turnover threshold in the near future, in order to avoid having to revisit the previous years’
figures, once the threshold has been reached.
An audit adds credibility to published information for employees, customers,
suppliers, investors and tax authorities.
Credit ratings may be affected by not having an audit. Suppliers may not be
prepared to give appropriate credit limits. Banks and trade suppliers rely in part on credit
rating agencies’ assessment of the company, and will look more favourably on companies
that have an audit.
The HMRC may consider the figures to be less reliable. In the event of insurance
claims, loss adjusters often have more faith in audited accounts.
An audit provides assurance to shareholders (if they are not directors closely
involved in the business) that the figures in the accounts show a true and fair view.
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  To file GST returns for the companies:
For the clearing forwarding company the GST rate is 0%. Even though the services for
clearing and forwarding has no GST rate the company is filling 5% GST rate on their
services.
Now a days the filing of GST return is easier because the filing of GST can be done
through online. https://www.gst.gov.in/ is the portal through company can login there ID
and file their returns.
The GST returns are filed based on the value of the services rendered and the
amount received from the customers for the services provided. It will be helpful for the
customers for getting input tax credit while they filing their companies or firms GST
Return’s.

 To Recording of sales in Petrol Bunks:

Shri Muthu Energies is the petrol bunk unit and it is located in keelasivalpatti. The
petrol bunk has four petrol filling units and four diesel selling unit and one oil filling unit
(2Toil). Total there are nine unit in the petrol bunk.
The total sales of the petrol and the diesel is calculated with the help of Microsoft-
excel. Because the sale of the petrol and diesel cannot be approximately calculated using
any other method.
The sales can only be calculated by using the difference between the total stock
sold up to the previous day and the total sale of stock up to the end of the day or change
in price of the product (Petrol, Diesel and 2T Oil).
The difference is calculated and multiplied with petrol and diesel rate on that
particular date. For each and every day the sale for the particular date has to follow using
the above mentioned method.
In case of change in rate of the petrol and diesel the difference between the between
the total sales of stock up to or before the change in price and the total sales after the
change in price of the stock.
After finding the total sales. The journal entry has to be passed and the entry in the
Tally should also be passed. The stock has to be regularly update to find out the sales
made for each and every day. Journal entries for the sale in the books and tally should be
passed.
The format for calculating the total sales of petrol and the diesel is has follows

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 SRI MUTHU ENERGIES
No.2/72 D, Amman Sannathi Street,
Kilasivalpatti,Tirupathur - 630205
DATE : STAFF'S NAME :
PETROL (PER LTR) Rate of Pertol
RATE
SHIFT : __________
DAY DIESEL (PER LTR) Rate of Diesel

METER READING
DIESEL (HSD) PETROL (MS)
I 1-1 Opening Stock of Total Sales I 1-2 Opening Stock of Total Sales
Closing Stock of Total Sales Closing Stock of Total Sales
Difference Difference

II 2-1 Opening Stock of Total Sales II 2-2 Opening Stock of Total Sales
Closing Stock of Total Sales Closing Stock of Total Sales
Difference Difference

III 3-1 Opening Stock of Total Sales III 3-2 Opening Stock of Total Sales
Closing Stock of Total Sales Closing Stock of Total Sales
Difference Difference

IV 4-1 Opening Stock of Total Sales IV 4-2 Opening Stock of Total Sales
Closing Stock of Total Sales Closing Stock of Total Sales
Difference Difference

Total sales of Diesel Total sales of Petrol

DIESEL (HSD) TOTAL READING : ___________________

Total sales of Diesel
X Per
Rate
Ltr Rs.________
of Diesel = _____________________/-
Total Amount of sales
PETROL (MS) TOTAL READING : ___________________
Total sales of Petrol
X Per
Rate
Ltr Rs.________
of Petrol = _____________________/-
Total Amount of sales
L. OIL TOTAL READING : ___________________
Total Sales of 2T Oil
X PerRate
Ltr Rs.________
of 2T Oil = _____________________/-
Total Amount of sales
opening Closing
stock of stock of
total sales total sales TOTAL = Total Amount of sales

 To help accountant in the company for change in director of the

private Limited Company:
Appointment of a New Director in case of Death of an Existing Director
Since the success of any corporation is heavily dependent on the calibre and
integrity of its directors, the management of the company should be placed in responsible
hands. As a consequence, the appointment of directors is strictly regulated by law.

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 Chapter XI of the Companies Act, 2013 provides extensively for the appointment
and qualification of directors. However, it is essential to look at the procedure involved
in appointing a new director in the event of an existing director’s death.
First, it is essential to understand what is meant by a casual vacancy.
Casual Vacancy
A casual vacancy occurs when the office of a director is vacated before the expiry
of his term. Normally, there are four situations in which a casual vacancy occurs:
 Resignation by the director
 Disqualification of the director
 Death of the Director
 Insolvency of the director
In the event of the creation of a casual vacancy, it should be filled by the provisions
of the Companies Act, 2013 and subject to the Articles of Association of the Company.
In case a director of a private company dies, then the provision for filling the casual
vacancy is laid down in Section 152(2) of the Companies Act, 2013. It states that unless
expressly provided under the Act, every director of the private company shall be
appointed by the company in the general meeting. Therefore the casual vacancy can only
be filled up through appointment in a general meeting. This also means that the directors
are barred from filling up the casual vacancy by themselves.
After the death of the Director of the company. The company files the e-FORM
DIR-12 as per Companies Act 2013 for removing a director.
Within 7 Day of the Conduct of meeting the e-FORM DIR-12 should be submitted
to the registrar of companies or in the official website
http://www.mca.gov.in/MinistryV2/homepage.html. In the website the company has to
login to their user id and they should fill in the e-FORM.
A New director in place of the Death of the director, with help of special notice he
can be appoint by company in general meeting or by the Board Meeting. A director so
appointed shall hold office till the date he/she had not removed.
Every new director appointment is required to file DIR – 12 within 30 Days of
passing of resolution.
CONSEQUENCES OF NOT FILING OF FORM DIR-12:
If the company not filed the e-form DIR-12 within 30 days of
appointment/Resignation, then penalty will be applicable as follows;

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 Up to 15 Days then One time of actual Government Fees
More than 15 Days – 30 Days than 2 times of Actual Government Fees
More than 30 Days – 60 Days than 4 times of Actual Government Fees
More than 180 Days than 10 times of Actual Government Fees
If company fail to file DIR 12 within 300 Days from date of passing resolution
then company need to pay 12 times of Actual Government Fees plus Compounding
offence.

 To apply DIN number for the newly appointed director of the

company:
The concept of a Director Identification Number (DIN) has been introduced for the
first time with the insertion of Sections 266A to 266G of Companies (Amendment) Act,
2006. As such, all the existing and intending Directors have to obtain DIN within the
prescribed time-frame as notified.
Steps to apply DIN:
DIR-3 Form: Any person intending to become a director in an existing company
shall have to make an application in e-Form DIR-3 for allotment of DIN and should
follow the prescribed procedure.
DIR-6 Form: Form to make changes to any particulars uploaded in DIR-3 Form
Procedure to be followed while filling e-Form DIR-3
1. Offline e-Filing: e-Form DIR-3 has to follow the offline e-Filing process. For
more details regarding the same visit: e-Filing FAQs
2. Supporting Documents: Attach the photograph and scanned copy of supporting
documents. I.e. proof of identity, and proof of residence as per the guidelines. Physical
documents are not required to submit at DIN cell. Along with the supporting documents,
verification by the applicant for applying for allotment of Director Identification Number
(DIN) shall also be attached. This shall contain the Name, Father's name, date of birth,
present address, and text of declaration and physical signature of the applicant.
3. Digital Signature: The e-Form shall have to be digitally signed and shall be
uploaded on MCA21 portal.
4. Fee Payment: Upon upload, pay the fees for DIR-3 e-Form. Only electronic
payment of the fees shall be allowed (i.e. Net banking / Credit Card / NEFT). No Challan
payment will be accepted under procedure of DIN allotment.

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 The user is required to get himself / herself registered on the MCA21 Portal to
obtain login id, Login to the MCA21 portal and click on 'e-Form upload' link available
under the 'e-Forms' tab for uploading the e-Form DIR- 3. e-Form DIR-3 will be processed
only after the DIN application fee is paid.
5. Generation of DIN: Upon upload and successful payment, In case Form DIR-3
details have not been identified as potential duplicate, Approved DIN shall be generated
and if the details have been identified as potential duplicate, Provisional DIN shall be
generated.

6. Processing of DIR-3 Form: In case, DIR-3 is a potential duplicate, the MCA

DIN cell will be examine the e Form DIR-3 and same shall be disposed of within one or
two days.
 To Dissolution and reformation of the sole proprietorship Concern
and form it with the same name.
The dissolution of a sole proprietorship involves the following steps:
The first step is to inform clients you are winding up the business. Most states
allow a sole proprietor to close shop without any formalities. However, it's important to
dissolve in an orderly manner. Send letters to your customers explaining the reason for
the closure and thank them for their loyalty.
Notify creditors you are dissolving the business and request for a final bill to enable
you to settle all outstanding obligations.
Settle all your outstanding business liabilities. If your business assets cannot cover
your debts, you have to pay the balance from your assets.
Reserve enough money for unknown creditors and miscellaneous expenses. If the
business has an ongoing case to settle liabilities, set aside enough funds to meet your
obligations in case the outcome is not in your favour.
Sell off any business assets that you don't need. All the business assets of a sole
proprietorship will be in your name, so you can sell whatever is left after taking care of
your business obligations.
If the dissolution was due to the death or disability of the sole proprietor, the
representative either working alone or using a collection agency should try to recover all
accounts payable. It's possible that the owner left instructions on collection and assets
liquidation in a will or trust document. Using the instruction as a guide, the representative
should liquidate the business inventory and assets, and then inform customers and
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creditors of the dissolution. Assets liquidation can provide the funds required to pay loans
and debts of the business. The representative should also close the business' bank
accounts and investment accounts to forestall any tax issues.
The sole proprietorship must apply for the cancellation of its fictitious business
name, or "doing business as" if it uses one. The cancellation process will be handled by
the same agency that registered the name.
Where applicable, fulfil federal and state tax obligations. If you have employees,
pay final payroll taxes.
Save and file final tax reports to relevant federal and state tax bodies. The
representative must inform the IRS and state tax authorities of the sole proprietor's death,
and file a final tax return for the year of death before closing the business.
The business owner or representative must cancel any state or local licenses or
permits.
The deceased business owner may leave a will or trust agreement transferring its
assets to a beneficiary. The beneficiary will become the custodian of any remaining
business assets and pay off its liabilities. If the beneficiary wishes to continue the
business, then he or she will become personally liable to its liabilities, except the business
is registered as an entity under a new name.
The reformation of a sole proprietorship in the same name involves the following
steps:
The sole proprietorship firm can only be reformed in the same when the sole
proprietor is related to the deceased business owner. The family member of the deceased
sole Proprietor can only form the sole proprietor concern in the same name. Person other
than then the family member cannot form the concern in the same name according to the
enforcement of law.
Even a minor can become the sole proprietor. But the guardian for the minor should
be appointed because according to the Indian Contract Act 1936 a minor cannot enter into
the contract however he can enjoy the benefits of the contract.
Therefore becomes necessary to appoint a guardian to a minor in case of entering
into the contract. In that case the guardian will be responsible for the management of the
business.

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  To help in preparation of necessary documents for apply mudra
loan for the firm
Pradhan Mantri Mudra Yojana
Micro Units Development & Refinance Agency Ltd. (MUDRA) is a new
institution set up by Government of India to provide funding to the non-corporate, non-
farm sector income generating activities of micro and small enterprises whose credit
needs are below ₹10 Lakh.
Under the aegis of Pradhan Mantri MUDRA Yojana (PMMY), MUDRA has
created three products i.e. 'Shishu', 'Kishore' and ‘Tarun’ as per the stage of growth and
funding needs of the beneficiary micro unit. These schemes cover loan amounts as below:
Shishu: covering loans up to ₹50,000
Kishore: covering loans above ₹50,000 and up to ₹5,00,000
Tarun: covering loans above ₹5,00,000 and up to ₹10,00,000
All Non-Corporate Small Business Segment (NCSBS) comprising of
proprietorship or partnership firms running as small manufacturing units, service sector
units, shopkeepers, fruits/vegetable vendors, truck operators, food-service units, repair
shops, machine operators, small industries, food processors and others in rural and urban
areas, are eligible for assistance under Mudra.
Bank branches would facilitate loans under Mudra scheme as per customer
requirements. Loans under this scheme are collateral free loans.
Document required for applying mudra loan:
The following the document which are required for applying the mudra loan. They
are:
1. Mudra application Form
2. BIL/RBC application form
3. Photo identity and age proof
4. Address proof
5. Ownership proof of residence/office
6. Business vintage proof
7. Bank statement (last 12 months)
8. Income tax return (last 2 years)

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  To act as the team leader
In our college we totally 6 students went for the internship to the same company. I
was given the leadership role and 5 other students are subordinates for me. The work was
large. So I decided to divide us into three teams. Divide the work into three parts and
assign each part to each team. And to change the work in the next week, so that we can
get work experience in all areas.
The three teams are
Team I – Shanmugam S and Rakkesh S
Team II – Rajesh V and Sankar M
Team III – Keerthivasan S and Santhosh Kumar V
Work load into three parts
Part I – To pass the journalise entries of the companies in tally, to file
GST returns for the companies, to help accountant in the company for change
in director of the private Limited Company, to help in preparation of necessary
documents for apply mudra loan for the firm, to apply DIN number for the
newly appointed director of the company and to Dissolution and reformation
of the sole proprietorship Concern and form it with the same name.
Part II – To audit the previous year accounts of the above mentioned
companies, to maintain the cash book and bank book of the companies, to
maintain the vouchers of the companies.
Part III – To Recording of sales in Petrol Bunks and to pass the journalise
entries in tally.

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CHAPTER 8: SUMMARY AND CONCLUSION
To summarize this report, the first chapter was an explanation about Clearing
and forwarding agencies, Second chapter deals with the types of forwarding agency. The
third and fourth chapters deals with the objectives and the limitations of this internship.
The fifth chapter covers details regarding the profile of the place of internship, i.e. RYK
FREIGHT & FORWARDERS PVT LTD. In the sixth chapter, details relating to my
job profile and seventh chapter, details relating to my job experience for 4 weeks are
explained briefly.

The internship at RYK FREIGHT & FORWARDERS PVT LTD, Linghi

Chetty Street, Paris, Chennai was an interesting learning opportunity. Even though this
internship I got the opportunity to observe the staff’s work and I would like to thank my
trainer, Mr. Vijay Kumar for the same. This internship also helped in improving the
leadership skills, as already mentioned, the internship helped in learning about the
practical part of the accounting system from the companies point of view. All in all, this
internship was a truly splendid and fascinating experience.

I would like to express my heartfelt thanks to the faculty of the Commerce

Department of my college for presenting me with an opportunity for experiencing and
exploring a part of our country’s accounting sector.

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