CAPSTONE PROJECT: INTERNSHIP

KGK Group Student Internship in the Department of Accounting

KGK Group, Gems Tower

Submitted to

Ms. Piyawan Sunasuan

Capstone Project Teacher

Mahidol University International Demonstration School

Prepared by

Warinthorn Carawawiwatkul (Rungruang)

Grade 11 Section 1108

Mahidol University International Demonstration School

May 16, 2020

 CONTENTS

Worklog 3
Day 1 4
Day 2 6
Day 3 7
Day 4 8
Day 5 9
Day 6 10
Reflection 11
 INTRODUCTION

Date 21/10/2019 - 26/10/2019

Company KGK Gems Limited

Supervisor Ms. Pornvilai Sarnthamwutthikun

Manager Mr. Jitendra Rajpurohit

Work Log

Date Work Log Time

21 October 2019 ● Background of the Organization 9:00-18:00

(9 Hours)
● Import-Export

22 October 2019 ● Sales - Purchase Inventory 9:00-18:00

(9 Hours)

23 October 2019 ● Gain & loss / Exchange/ Trading Account 9:00-18:00

(9 Hours)

24 October 2019 ● Exchange - Income P&L 9:00-18:00

(9 Hours)

25 October 2019 ● Reporting 9:00-18:00

(9 Hours)

26 October 2019 ● Overview - Challenges in Business & Solution of 9:00-16:00

that Challenges (7 Hours)
DAY 1

21 October 2019

Introduction to the Organization & Import-Export

The supervisor demonstrated how the company was established in Thailand. He offered the report

and background information of their products to have knowledge in order to do accounting. In addition,

The accountants demonstrated how to record and collect data by checking the documents from the

exporting department which are import entry, invoice, airway bill. They will collect the data in the

programme and insert all of the documents in excel.

The KGK Group is the company of import-export gemstones. It was first established in Thailand

in a year. In the company, the main productions are precious gemstones and semi-precious gemstones.

There are 3 main types of precious gemstones which are Sapphire, Rubies, and Emerald. In addition, it

also has many types of semi-precious gemstones such as, Bi-color tourmaline, Aquamarines. In the

market, KGK Group gets the products by importing and purchasing in local sources which there are three

ways to get them. Firstly, the supplier would provide the amount of Gemstones in a local source.

Secondly, the company would order the products from the shipping organization. Finally, the

manufacturers are one of the sources that the company would choose to get the products. The main

documents which the company must have are import entry(custom document) required by the

government, Invoice, and Shipping document provided by the shipper. In the invoice, the company

contacts the shipper by sending an email. Consequently, the shippers would provide the products they

already have which the company can choose the quality of the products. Gemstones can be graded in the

process. The colour of gemstones can be classified by the shade. If the shade is light, the price would be

low. If the shade is dark, the price would be increasing and high. After grading color, the company would

focus on the source. Each mining could impact the cost of gemstones. Because solid value is removed
from there, each source is similar which makes it exclusively. Furthermore, gemstones are graded color

according to the clarity. When gemstones are removed from the source, there will be inclusion. Material

trapped inside minerals affects the price of the products. The inclusion can be mineral, water, gas, and

petroleum. At this time, the shipping company will ship the products at the airport. The company can get

the supplies completely. The business of KGK Gems is not only to bring goods and services from abroad

but also export the products throughout local and overseas areas. The company sells products to both local

and overseas customers. The business is worked by assorting the Gemstones quality of controlling in

order to achieve the demand of customers. Along with exporting, the company provides invoice to

customers in order to book the products. Similar to the importing process, the company will send the

products after customers finish with the mentioned process.

To collect and record the data, the export and import department will prepare the documents to

send them to the accounting department. The accountants will collect the data into the programme called

CD Organizer. It is used for recording the import-export document which shows cash flows in the

company. The company uses two currencies which the U.S. dollar is used for exporting and Thai baht is

used for importing. To add import entry into the programme, I need to fill in the document such as

Invoice, invoice number, and shipping company. As well as exporting data, the accountants provide me

documents which I can fill them into the programme. There are the process of exporting to make Invoice,

bill of lading, and finding shipping agents. As a result, the company can export the goods along with those

documents.
DAY 2

22 October 2019

Sales - Purchases Inventory

The assistance introduced the process of local purchase and sale. There are three categories of tax

rate such as tax 7 percent, 0 percent, and no charge. Furthermore, they determined how to calculate the

cash flow in the basic process.

Today, I have learned how many sections in accounting have in KGK Gems. There are 5 sections

in this department which are procurement department, sales department, accounts receivable, accounts

payable, and financial reporting. Procurement department is the process of finding and acquiring goods to

purchase, thus it has to provide invoice and import entry. If goods are imported inside Thailand, they must

provide a tax invoice. In addition, the sales department is the area of how goods are distributed among

customers. They must prepare an export entry invoice. They also have to prepare a tax invoice, if the

company exports inside the country. Furthermore, accounts receivable is the branch that allows customers

to pay back the amount of owed goods and services. Because customers do not purchase immediately

when goods are delivered, they are forced to pay back within an account date. When the customers pay

back the amount of goods or debt, accounts receivable will process and record the amounts. In contrast,

accounts payable is the area of when the company purchases debts. This department has to record the data

along with the cash flows. As a result, financial reporting will collect all the documents from each

department to record into the programme.

There are 3 types of local purchase and sale. In Thailand, The sales tax rate stands at 7 percent

which charge consumers based on the products. In contrast, taxation is not charged when accounts
receivable is an authorized company. Thus, taxation is not included in the products, they completely have

authorized documents. The tax rate would be 0 percent. If the products are imported through the airport

by individuals. The purchase tax rate is allowed to not include in the products. In order to purchase and

sell in the local, an invoice is required to be printed.

When the products are distributed, the amount of products in stocks are decreased. Because of the

company, the business is about the minerals and gemstones, the price of each product is different. To

calculate the stock, the method is first in first out which means the products that are purchased first have

to sell first. The information is stored in Excel which the price is separated differently.

DAY 3
23 October 2019
Gain & loss / Exchange/ Trading account

In trading across two currencies, there are gains and loss in exchange. They illustrated when there
are two currencies, the business would face gain and loss in business.
According to import goods, the selling rate is used to compare the exchange rate between Thai
baht and US dollars. When the company purchases and imports goods, they do not purchase immediately
to account payable. The accountants would record liability on credit. However, when the company
exports the products, they will export at buying rates to accounts receivable which is collected in debit.
Furthermore, there will be gain and loss in exchange both in account payable and receivable. If the
exchange rate of the entered invoice is higher than the repay of the company, there is an exchange gain.
On the other hand, an exchange loss can occur when the exchange rate that receivable has accrued
expense is lower. When the company obtains an exchange loss, it would be recorded on debit. If the
company obtains an exchange gain, it would be collected in credit. The exchange rate is used for
converting between 2 currencies impacting the change in cash flow of the company. The reference of the
exchange rate is from the Bank of Thailand. KGK Gems use UOB to transfer and do business.
DAY 4
24 October 2019
Exchange - Income Profits & Loss

In this activity, the supervisor demonstrated how Financial Account Statement can be categorized
into 3 sections which are Trading Accounting, Profits & Loss Accounting, and Balance sheet.
Profit and Loss

Income

Local sale 50

Overseas sale 550

Balance(Total Income) 600

Cost of Goods Sold -340

Gross Profit 260

Sale and Administration Expenses -140

Net Profit 120

Corporate Income Tax 20% -24

Net Profits after deduct Corporate Income Tax 96

Cost of Good Sold

Cost of Goods Sold

Opening Inventory 100

Purchase (local & overseas) 100

Balance 200

Shipping Expense-import 20

Ending Inventory 120

Total Cost of Goods Sold 340

Sale and Administration Expenses
 Sale and Administration Expenses

Electricity 40

Salary 100

140

DAY 5
25 October 2019
The Difficulties in Business
In business, there are difficulties the company may face which the supervisor demonstrated what
are the difficulties and how to solve those problems which are Customer Overdue Payment, Inventory
Holding, and Over Budget Expenses. Additionally, they illustrated some cases in the real world.
There are three major difficulties which are customer overdue payment, Inventory Holding, and
over budget expenses. As a result, accounting has to solve the difficulties by making reports, informing
sales people, and informing the buying team consequently.
For Example (Customer overdue payment)
Date​ :​ 01/09/2019
Customer A ;
orders go ods 300,000 Due date: 60 days, 30 Oct
orders goods 200,000 Due date: 7 days, 8th Sep

Customer Name Out Amount Overdue 30 days 60 days

Company A 500,000 200,000 300,000

DAY 6
26 October 2019
Overview - Challenges in business & Solution

The supervisor re-examined formally with all of knowledge for a whole week and summarized it
in a short term. In a similar way, the supervisor and assistant revised what are the challenges in a business
and provided the solution to each problem.

For Example (Inventory Holding)

From observation, lot C cannot be sold in several months which it is considered as outstanding
products. Thus, accounting would analyze which products should not purchase and which
products should purchase.
Lot No. CTS Amount 1 Month 3 Months 6 Months
(0-30 days) (31-90 days) (91-180 days)

A 100 1000 1000 (sold)

B 25 1800 1800(sold)

C 29 1500 1500 (sold)

For example (Overbudgets Expenses)

In order to make a report, it improves the company to observe cash flow easily which they can
know what areas they can improve.

Expenses Allowed Budget Expense Tentative Expense Different Budget

(Annual) (6 Months) (Annual)

Gift to customer 5000 3000 6000 +1000

Rent 12000 6000 12000 +2000

Traveling 8000 4100 8200 +200

 REFLECTION

Why did I decide to choose Accounting Internship at KGK Group?

The reason why I chose this internship is because I am interested in the faculty of Commerce and
Accountancy Chulalongkorn. I want to know what accounting is in real life and fields of
experience such as attitudes, beliefs, relationships. I think that everyone should have the basic
knowledge of business. It plays an important role in our life. People have to analyze and manage
all the time. For example, I use accounting skills to calculate grades to improve it or to analyze
the subject that I am weak in and spend more time with it. These skills are very helpful and it is
basic to use in everyday life. Accounts are the eyes and brian of the business which entered the
data in the system. People can plan to improve and take business on the growth side. Thus, it
grows my interest to select this department and learn the process related to it. In addition, KGK
group is the company that produces gems. I am interested in gems including jewelry, diamond. I
want to know how they are manufactured and who are the company’s target. Furthermore, I want
to prepare skills and basic information before entering the university. It helps me to discover my
way in the future.

What are some Difficulties or Challenges during the Internship? How to solve it?
During the internship, I had met different ranges of ages. Many people are greeting me.
However, I did not feel comfortable making conversation with them. Thai has a wide range of
languages and it is complicated to talk with adults. Working among different people, I improved
my social skills a little bit. It helps me get a lot of experiences such as working in a real field.
There is a lot more pressure than I thought because one mistake leads to multiple mistakes. As a
result, I can adapt with all people here in a few days. They invite me in the conversation and help
me to reduce stress. They teach me to learn many tasks which I also learned a lot from them. I
had a great time during my internship.

What did I get from an Accounting Internship?

There are a lot of things that this internship gave me. I was briefed about the entire working of
the company in a summary way to understand the accounting work more easily. KGK gets the
products by importing and purchasing in a local source which is done by the purchase
department in which they raise their demand to the supplier according to the requirement. The
goods are defined with few measurements which are as under commodity, origin, color, clarity,
and cut. All these factors are easier to understand while doing the training of the goods grading
practically, as it is not a theoretical subject. I was supposed to view the type of stone in actuality
but due to not having the knowledge of the grading of the stone it was impossible to grade them.
After attending the accounting department, I can explain all the processes regarding the
accounting done to operate the business. However, It is not only the experience and knowledge
but also the society. I know different kinds of people which there are both good and bad
behaviors of them. I have experienced and developed social skills which helps me to manage
when there are many types of people. It gives the opportunities to solve problems further.
Because teamwork will result the best in the company, it gives benefits for cooperating with
others.