Wednesday, April 12, 2017

Jain and Narang Cost Accounting Book Solved - Reconciliation of Cost and Financial Account

Q. 1
Reconciliation Statement of Cost & Financial Accounting
Particulars
Amount
Amount
Profit as per Cost Account
Add: (i) Office and administrative expenses under charged in financial A/c
(ii) Selling and distribution expenses under charged in financial A/c

90
140
16,270

230

Less: (i) Factory expenses overcharged in financial A/c
(ii) Debenture interest shown only in financial A/c

500
1,000
16,500

1,500

Profit as per financial A/c

15,000

Rough Calculation:

Cost Account
Financial Account
Differences
Works/factory overhead (Exp.)
Office and administrative overheads (Exp.)
Selling and distribution overheads (Exp.)
Debenture Interest (Exp.)
11,500
4,590
6,640
-
12,000
4,500
6,500
1,000
(-) 500
(+) 90
(+) 140
(-) 1,000


Q. 2
Reconciliation Statement of Cost and Financial Account
Particulars
Amount
Amount
Profit as per Cost Account
Add: (i) Overhead overcharged in cost account
(ii) Share transfer fess shown only in financial A/c

1,500
1,000
50,000

2,500

Less: (i) Director fees shown only in financial A/c
(ii) Doubtful debt shown only in financial A/c
(iii) Depreciation shown only in financial A/c
(iv) Provision for Income-tax

2,000
5,000
750
15,000
52,500



22,750
Profit as per financial A/c

29,750
Rough Calculation:

Cost Account
Financial Account
Differences
Overheads (Exp.)
Director fees (Exp.)
Doubtful debts (Exp.)
Depreciation
Share transfer fees (income)
Provision for Income tax (Exp.)
8,500
-
-

-
-
-
7,000
2,000
5,000

750
1,000
15,000
(+) 1,500
(-) 2,000
(-) 5,000

(-) 750
(+) 1,000
(+) 15,000

Q. 3
Reconciliation Statement
Particulars
Amount
Amount
Profit as per financial A/c
Add: (i) Opening Stock of raw material overcharged in financial A/c
(ii) Opening Stock of finished goods overcharged in financial A/c
(iii) Loss of machine shown in financial A/c only.

500
3,000
2,000
50,000


5,500

Less: (i) Closing Stock of raw material overcharged in financial A/c
(ii) Closing Stock of finished goods overcharged in financial A/c
(iii) Dividend received shown only in financial A/c
(iv) Interest charged shown only in Cost A/c

1,300
2,000
1,000
8,000
55,500



12,300
Profit as per Cost Account

43,200
Rough Calculation:

Cost Account
Financial Account
Differences
(i) Opening stock of raw material (Exp.)
(ii) Closing stock of raw material (Income)
(iii) Opening stock of finished goods (Exp.)
(iv) Closing stock of finished goods (Income)
(v) Dividend (Income)
(vi) Loss (Exp.)
(vii) Interest (Exp.)
5,500
5,300
15,000
16,000
1,000
2,000
-
5,000
4,000
12,000
14,000
-
-
8,000
(+) 500
(-) 1,300
(+) 3,000
(-) 2,000
(-) 1,000
(+) 2,000
(-) 8,000

Q. 4
Reconciliation of Cost and Financial Accounting
Particulars
Amount
Amount
Profit as per Cost A/c
Add: (i) Interest charged in cost account but ignored in financial A/c
(ii) Overhead charged in financial A/c but recovered in Cost A/c

6,000
4,800
1,65,300

10,800

Less: (i) Opening stock of material overcharged in financial A/c
(ii) Opening stock of work-in-progress overcharged in financial A/c
(iii) Closing stock of material overcharged in Cost A/c
(iv) Closing stock of work-in-progress overcharged in Cost A/c
(v) Interest remitted in financial A/c but ignored in Cost A/c
(vi) Preliminary Expenses shown only in financial A/c

400
1,000
1,600
800
800
13,000
1,76,100





17,600
Profit as per financial A/c

1,58,500
Rough Calculation:

Cost Account
Financial Account
Differences
Opening stock of material (Exp.)
Opening stock of work-in-progress (Exp.)
Closing stock of material (Income)
Closing stock of work-in-progress (Income)
Interest remitted (Exp.)
Interest charged (Exp.)
Preliminary Expenses (Exp.)
Overhead (Exp.)
32,600
20,000
36,000
16,000
-
6,000
-
1,26,000
33,000
21,000
34,400
15,200
800
-
13,000
1,21,200
(-) 400
(-) 1,000
(-) 1,600
(-) 800
(-) 800
(+) 6,000
(-) 13,000
(+) 4,800

Q. 5
Reconciliation Statement of Cost and Financial Account
Particulars
Amount
Amount
Profit as per Cost A/c
Add: (i) Selling expenses over-recovered in cost A/c
(ii) Discount received shown only in financial A/c
(iii) Profit on sale of land shown only in financial A/c

400
260
2,340
19,770


3,000

Less: (i) Work expenses overcharged in financial A/c
(ii) Administrative expenses overcharged in financial A/c
(iii) Depreciation is overcharged in financial A/c
(iv) Closing stock is overcharged in Cost A/c

1,630
340
300
200
22,770



2,470
Profit as per financial A/c

20,300
Rough Calculation:

Cost Account
Financial Account
Differences
Closing stock (Income)
Work expenses (Exp.)
Selling Expenses (Exp.)
Administrative Expenses (Exp.)
Depreciation (Exp.)
Discount received (Income)
Profit on sale of land (Income)
4,280
10,500
7,500
5,000
800
-
-
4,080
12,130
7,100
5,340
1,100
260
2,340
(-) 200
(-) 1,630
(+) 400
(-) 340
(-) 300
(+) 260
(+) 2,340

Q. 6
Cost Sheet
Particulars
Amount
Opening Stock
Add: Purchase
2,47,179
82,154
Raw material consumed during the year
Add: Direct Wages
Less Closing Stock
3,29,333
24,867
78,197
Prime Cost
Add: Factory overheads
2,76,003
19,714
Work Cost
Add: Administrative overheads (3,46,500 x 3%)
2,95,717
10,395
Cost of production
Add: Selling and distribution overheads (3,46,500 x 5%)
3,06,112
17,325
Total Cost
Add: Profit
3,23,437
23,063
Sales
3,46,500
Reconciliation Statement of Cost & Financial Accounting
Particulars
Amount
Amount
Profit as per Cost A/c
Add: (i) Direct wages under-charged in financial A/c
(ii) Administration expenses under-charged in financial A/c
(iii) Sundry income shown only in financial A/c

1,734
550
316
23,063


2,600

Less: (i) Closing stock is under-charged in financial A/c
(ii) Factory overhead is overcharged in financial A/c
(iii) Selling expenses overcharged in financial A/c

3,076
1,112
4,851
25,663


9,039
Profit as per financial A/c

16,624
Rough Calculation:

Cost Account
Financial Account
Differences
Closing stock (Income)
Direct wages (Exp.)
Factory overheads (Exp.)
Administrative Expenses (Exp.)
Selling Expenses (Exp.)
Sundry Income
78,197
24,867
19,714
10,395
17,325
-
75,121
23,133
20,826
9,845
22,176
316
(-) 3,076
(+) 1,734
(-) 1,112
(+) 550
(-) 4,851
(+) 316

Q. 7
Reconciliation Statement of Cost & Financial Account
Particulars
Amount
Amount
Loss as per Cost A/c
Add: (i) Administrative expenses undercharged in financial A/c
(ii) Depreciation undercharged in financial A/c
(iii) Interest received shown in financial A/c only
(iv) Bank interest shown only in financial A/c
(v) Store adjustment shown only in financial A/c
(iv) Interest charged shown only in Cost A/c

1,700
1,300
8,000
750
475
6,000
(1,72,400)





18,225

Less: (i) preliminary expenses shown only in financial A/c
(ii) Works expenses overcharged in financial A/c
(iii) Obsolescence Loss charged shown in financial A/c only
(iv) Income tax provided in financial books only
(v) Opening stock overcharged in financial A/c
(vi) Closing stock undercharged in financial A/c
(vii) Provision for doubtful debts shown in financial A/c only

800
3,120
5,700
40,300
1,400
2,400
150
(1,54,175)






53,870
Loss as per financial A/c

2,08,045
Rough Calculation:

Cost Account
Financial Account
Differences
Works overhead
Administrative overheads
Depreciation
Interest received
Obsolescence
Income tax
Bank interest
Stores adjustment
Opening Stock
Closing Stock
Preliminary Expenses
Interest
Provision for doubtful debts
-
+
12,500
-
-
-
-
-
52,600
52,000
-
6,000
-
+
-
11,200
8,000
5,700
40,300
750
475
54,000
49,600
800
-
150
(-) 3,120
(+) 1,700
(+) 1,300
(+) 8,000
(-) 5,700
(-) 40,300
(+) 750
(+) 475
(-) 1,400
(-) 2,400
(-) 800
(+) 6,000
(-) 150

Q. 8
Cost Sheet
Particulars
Amount
Amount
Opening Stock of raw material
Add: Purchase of raw material
Less: Closing Stock of raw material
4,000
24,000
(6,000)

Raw Material consumed during the year
Add: Wages
22,000
1,000

Prime Cost
Add: Factory overheads (25% on Prime Cost)

32,000
8,000
Factory Cost
Add: Office and administrative overheads
(75% on factory exp.) (8,000 x 75%)

40,000

6,000
Cost of production
Add: Opening stock of finished goods
Less: Closing stock of finished goods

46,000
8,000
(2,000)
Cost of goods sold
Add: Profit (52,000 x 25%)

52,000
13,000
Sales

65,000
P/L A/c
Particulars
Amount
Particulars
Amount
To Opening stock of Raw Material
To Purchase of Raw Material
To Wages
To Opening stock of finished goods
To Work expenses
To Office expenses
To Net Profit
4,000
24,000
10,000
8,000
7,750
6,100
13,150
By Sales
By Closing stock of Raw Material
By Closing stock of finished goods
65,000
6,000
2,000

73,000

73,000
Reconciliation Statement of Cost & Financial A/c
Particulars
Amount
Amount
Profit as per Cost A/c
Add: (i) Works expenses undercharged in financial A/c

13,000
250

Less: (i) Office expenses overcharged in financial A/c


13,250
100
Profit as per financial A/c

13,150
Rough Calculation:

Cost Account
Financial Account
Differences
Works Expenses
Office Expenses
8,000
6,000
7,750
6,100
(+) 250
(-) 100

Q. 9
Cost Sheet
Particulars
Amount
Material Purchase (1,500 x 80)
Wages (900 x 80)
1,20,000
72,000
Prime Cost
Add: Works overhead (60% of wages)
1,92,000
43,200
Works Cost
Add: Office overhead (20% of works cost)
2,35,200
47,040
Cost of Production
Add: Profit
2,82,240
57,760
Sales
3,40,000
Reconciliation of Cost & Financial Account
Particulars
Amount
Amount
Profit as per Cost A/c
Add: (i) Works expenses undercharged in financial A/c

57,760
200

Less: (i) Office expenses overcharged in financial A/c

57,960
960
Profit as per financial A/c

57,000

Rough Calculation:

Cost Account
Financial Account
Differences
Works Expenses
Office Expenses
43,200
47,040
43,000
48,000
(+) 200
(-) 960

Q. 10
Cost Sheet
Particulars
Amount
Amount
Purchase of Material
Less: Closing stock of material
3,000
500


Raw Material consumed during the year
Add: Direct Wages

2,500
1,000
Prime cost
Add: Factory overhead (300% of direct wages)

3,500
3,000
Works Cost
Add: Selling overheads

6,500
1,500
Cost of production
Add: Distribution overhead

8,000
700
Total Cost
Add: Profit

8,700
11,300
Sales

20,000
Trading and Profit and Loss Account
Particulars
Amount
Particulars
Amount
To Purchase of Material
To Direct Wages
To Indirect Wages
To Indirect Expenses
To Bad debts
To Interest on overdraft
To Selling Expenses
To Distribution Expenses
To Net Profit
3,000
1,000
500
2,000
100
50
2,000
1,000
11,850
By Sales
By Closing stock of Raw Material
By Profit on sale of assets 
20,000
500
1,000

21,500

21,500
Reconciliation of Cost & Financial A/c
Particulars
Amount
Amount
Profit as per Cost A/c
Add: (i) Manufacturing expenses undercharged in financial A/c
(ii) Profit on sale of assets shown only in financial A/c

500
1,000
11,300

1,500

Less: (i) Selling expenses overcharged in financial A/c
(ii) Distribution expenses overcharged in financial A/c
(iii) Interest on overdraft shown only in financial A/c
(iv) Bad debts shown only in financial A/c

500
300
50
100




950


11,850
Rough Calculation:

Cost Account
Financial Account
Differences
Manufacturing overhead
Selling overhead
Distribution expenses
Interest on overdraft
Profit on sale of assets
Bad debts
3,000
1,500
700
-
-
-
2,500
2,000
1,000
50
1,000
100
(+) 500
(-) 500
(-) 300
(-) 50
(+) 1,000
(-) 100

Q. 11
Cost Sheet

Unit-200
Unit-500

Particulars
A
B
Total

Per
Total
Per
Total

Material
Add: Direct Wages
12.5
10
2,500
2,000
7.50
6
3,750
3,000
6,250
5,000
Prime cost
Add: Works overhead
(100% on direct wages.)
22.50

10
4,500

2,000
13.50

6
6,750

3,000
11,250

5,000
Works Cost
Add: Office & administrative overhead
(25% on works cost)

6,500

1,625

9,750

2437.5
16,250

4062.5
Cost of Production
Add: Profit


8,125
1,875

1210.75
2812.5
20312.5
4687.5
Sales
50
10,000
30
15,000
25,000
Financial Profit & Loss A/c
Particulars
Amount
Particulars
Amount
To Material
A = 12.50 x 200
B = 7.50 x 500
To Direct Wages
A = 10 x 200
B = 6 x 500
To Works Expenses
To Office Expenses
To Net Profit

2,500
3,750

2,000
3,000
4,800
4,200
4,750
By Sales
A = Rs. 50 x 200
B = Rs. 30 x 500

10,000
15,000

25,000

25,000
Reconciliation Statement 
Particulars
Amount
Profit as per Cost A/c
Add: (i) Work expenses undercharged in financial A/c
4687.5
200

Less: Office and administrative expenses overcharged in financial A/c
4887.5
137.5
Profit as per financial A/c
4,750
Rough Calculation:

Cost Account
Financial Account
Differences
Works Expenses
Office & administrative Expenses
5,000
4062.5
4,800
4,200
(+) 200
(-) 137.5

Q. 12
Cost Sheet

Unit-160
Unit-95

Particulars
Janta
Deluxe
Total

Per
Total
Per
Total

Material
Labour
28
48
4,480
7,680
32
58
3,040
5,510
7,520
13,190
Prime cost
Add: Factory overhead
(100% on labour.)
76
48
12,160
7,680
76
58
8,550
5,510
20,710
13,190
Works Cost
Add: Office & administrative overhead
(25% on works cost)

19,840
4,960

14,060
3,515
33,900
8,475
Cost of Production
Add: Profit


24,800
4,000

17,575
5,225
42,375
9,225
Sales
180
28,800
240
22,800
51,610
Financial Profit & Loss A/c
Particulars
Amount
Particulars
Amount
To Material
Janta = 28 x 160
Deluxe = 32 x 95
To Labour
Janta = 48 x 160
Deluxe = 58 x 95
To Works expenses
To Office expenses
To Net Profit 

4,480
3,040

7,680
5,510
16,800
6,220
7,870
By Sales
Janta = 180 x 160
Deluxe = 240 x 95

28,800
22,800

51,600

51,600
Reconciliation Statement
Particulars
Amount
Profit as per Cost A/c
Add: (i) Office expenses undercharged in financial A/c
9,225
2,255

Less: Works expenses overcharged in financial A/c

11,480
3,610
Profit as per financial A/c
7,870

Rough Calculation:

Cost Account
Financial Account
Differences
Works Expenses
Office Expenses
13,190
8,475
16,800
6,220
(-) 3,610
(+) 2,255

Q. 14
Cost Sheet
Particulars
Amount
Direct Material
Direct Wages
1,00,000
50,000
Prime Cost
Add: Works overhead:
Fixed = (18,000/1,50,000*1,00,000)                                                                                  12,000
Variable                                                                                                                                   12,000
1,50,000


24,000
Works Cost
Add: Office & administrative overhead
Fixed = (9,000/1,50,000*1,00,000)
1,74,000

6,000
Cost of Production
Add: Selling & Distribution overhead
Fixed = (3,000/1,50,000*1,00,000)                                                                                      2,000
Variable                                                                                                                                     3,000
1,80,000


5,000
Total cost
Add: Profit as per Cost Accounting
1,85,000
15,000
Sales
2,00,000
Reconciliation Statement
Particulars
Amount
Amount
Profit as per Cost A/c
Less: (i) Works expenses overcharged in financial A/c
(ii) Office expenses overcharged in financial A/c
(iii) Selling and distribution expenses overcharged in financial A/c

6,000
3,000
1,000
15,000


10,000
Profit as per financial A/c

5,000
Rough Calculation:

Cost Account
Financial Account
Differences
Works Expenses
Office Expenses
Selling & distribution expenses
24,000
6,000
5,000
30,000
9,000
6,000
(-) 6,000
(-) 3,000
(-) 1,000

Q. 15
Cost Sheet
Particulars
Amount
Material
Direct Wages
1,50,000
75,000
Prime Cost
Add: Factory overhead:
Fixed = (25,000/1,25,000*1,50,000)                                                                                  30,000
Variable                                                                                                                                   20,000
2,25,000


50,000
Works Cost
Add: Office & administrative overhead
Fixed = (13,500/1,25,000*1,50,000)
2,75,000

16,200
Cost of Production
Add: Selling & Distribution overhead
Fixed = (3,000/1,25,000*1,50,000)                                                                                      3,600
Variable                                                                                                                                     6,000
2,91,200


9,600
Total cost
Add: Profit as per Cost Accounting
3,00,800
19,200
Sales
3,20,000

Reconciliation Statement
Particulars
Amount
Amount
Profit as per Cost A/c
Add: (i) Factory expenses undercharged in financial A/c
(ii) Office & administrative expenses undercharged in financial A/c
(iii) Selling and distribution expenses undercharged in financial A/c

5,000
2,700
600
19,200


8,300
Profit as per financial A/c

27,500
Rough Calculation:

Cost Account
Financial Account
Differences
Factory Expenses
Office & administrative Expenses
Selling & distribution expenses
50,000
16,200
9,600
45,000
13,500
9,000
(+) 5,000
(+) 2,700
(+) 600

Q. 16
Cost Sheet
Particulars
Amount
Material
Wages
2,00,000
1,00,000
Prime Cost
Add: Factory overhead:
Fixed = (36,000/16,000*20,000)                                                                                         45,000
Variable                                                                                                                                   24,000
3,00,000


69,000
Works Cost
Add: Administrative overhead
Fixed = (18,000/16,000*20,000)     
3,69,000

22,500
Cost of Production
Add: Selling & Distribution overhead
Fixed = (6,000/16,000*20,000)                                                                                             7,500
Variable                                                                                                                                     6,000
3,91,500


13,500
Total cost
Less: Loss  
4,05,000
(5,000)
Sales
4,00,000
Financial Profit & Loss A/c
Particulars
Amount
Particulars
Amount
To Material
To Wages
To Factory overhead
To Selling & distribution
To Administration
To Net Profit
2,00,000
1,00,000
60,000
12,000
18,000
10,000
By Sales
4,00,000

4,00,000

4,00,000
Reconciliation Statement
Particulars
Amount
Amount
Loss as per Cost A/c
Add: (i) Factory expenses undercharged in financial A/c
(ii) Administrative expenses undercharged in financial A/c
(iii) Selling and distribution expenses undercharged in financial A/c


9,000
4,500
1,500
(5,000)


15,000
Profit as per financial A/c

10,000
Rough Calculation:

Cost Account
Financial Account
Differences
Factory overhead
Administrative overhead
Selling & distribution overhead
69,000
22,500
13,500
60,000
18,000
12,000
(+) 9,000
(+) 4,500
(+) 1,500

Q. 17
Cost Sheet
Particulars
Amount
Amount
Direct Material Consumption
Direct Wages

2,80,000
1,00,000
Prime Cost
Add: Factory overhead

3,80,000
76,000
Work Cost incurred
Less: Closing Stock of work-in-progress

4,56,000
80,000
Works Cost
Add: Office and administrative overhead

1,60,000
3,76,000
4,80,000
Cost of Production
Add: Opening Stock of finished goods
Less: Closing Stock of finished goods (8,56,000/1,60,000*40,000)
1,60,000
-
40,000
8,56,000
-
2,14,000
Cost of goods sold
Add: Selling & distribution overhead (1,20,000 x 4)
1,20,000
1,20,000
6,42,000
4,80,000
Total Cost
Less: Loss

2,40,000
1,20,000
11,22,000
(4,22,000)
Sale
1,20,000
7,00,000

Financial Profit & Loss A/c
Particulars
Amount
Particulars
Amount
To Material
To Direct Wages
To Factory overhead
To Administration overhead
To Selling & distribution
To Bad debts
To Preliminary Exp. (Written off)
To Legal charge
2,50,000
1,00,000
3,80,000
2,50,000
4,80,000
20,000
10,000
5,000
By Sales
By Dividend received
By Interest on deposit received
By Closing stock of finished goods
By Closing stock of work-in-progress

Be Net loss
7,00,000
50,000
10,000
1,20,000
80,000

5,35,000

14,95,000

14,95,000

Reconciliation Statement
Particulars
Amount
Amount
Loss as per Cost A/c
Add: (i) Direct material undercharged in financial A/c
(ii) Administrative expenses undercharged in financial A/c
(iii) Dividend received shown only in financial A/c
(iii) Interest on deposit received shown only in financial A/c

30,000
2,30,000
50,000
10,000
(4,22,000)



3,20,000

Less: (i) Factory Expenses overcharged in financial A/c
(ii) Bad debts shown only in financial A/c
(iii) Preliminary expenses shown only in financial A/c
(iv) Legal charges shown only in financial A/c
(v) Closing stock of finished goods undercharged in financial A/c

3,04,000
20,000
10,000
5,000
94,000
(1,02,000)




(4,33,000)
Loss as per financial A/c

(5,35,000)

Rough Calculation:

Cost Account
Financial Account
Differences
Direct Material
Factory overhead
Administrative overhead
Selling & distribution overhead
Bad debts
Preliminary Exp.
Legal charges
Dividend received
Interest on deposit received
Closing stock of finished goods
Closing stock of work-in-progress
2,80,000
76,000
4,80,000
4,80,000
-
-
-
-
-
2,14,000
80,000
2,50,000
3,80,000
2,50,000
4,80,000
20,000
10,000
5,000
50,000
10,000
1,20,000
80,000
(+) 30,000
(-) 3,04,000
(+) 2,30,000
-
(-) 20,000
(-) 10,000
(-) 5,000
(+) 50,000
(+) 10,000
(-) 94,000
-

Q. 18
Cost Sheet
Particulars
Units
Amount
Direct Material
Direct Wages

2,000
1,000
Prime Cost
Add: Factory overhead (100% of wages)

3,000
1,000
Factory cost incurred
Less: Closing stock of work-in-progress (60+40+40)

4,000
140
Factory Cost
Add: Office & administrative overheads (10% of factory cost)

3,860
386
Cost of Production
Less: Closing stock of finished goods (4,246/21,230*1,230)
21,230
1,230
4,246
246
Cost of goods sold
Add: Selling & distribution overhead (20,000 x 20)
20,000
4,000
400
Total Cost
Add: Profit
20,000
4,400
600
Sales
20,000
5,000

Production = Sales + Closing Stock – Opening Stock
= 20,000 + 1,230 – NIL
=21,230
Financial Profit & Loss A/c
Particulars
Amount
Particulars
Amount
To Material
To Wages
To Factory overhead
To Administration overhead
To Selling & distribution overhead
To Goodwill written off
To Interest paid on capital
To Net Profit 
5,000
2,000
900
520
360
400
40
220
By Sales
By Closing Stock of work-in-progress
Materials                               60
Labour                                    40
Factory overhead                 40

By Closing finished goods
5,000



140

300

5,440

5,440
Reconciliation Statement
Particulars
Amount
Amount
Profit as per Cost A/c
Add: (i) Factory overhead undercharged in financial A/c
(ii) Closing stock finished goods overcharged in financial A/c
(iii) S/D overhead overcharged in CA

100
54
40
600


194

Less: (i) Office & administrative overhead undercharged in CA
(ii) Goodwill written off shown only in financial A/c
(iii) Interest paid on capital shown only in financial A/c

134
400
40
794


574
Profit as per financial A/c

220
Rough Calculation:

Cost Account
Financial Account
Differences
Factory overhead
Administrative overhead
Selling & distribution overhead
Goodwill
Interest
Closing stock of finished goods
1,000
386
400
-
-
246
900
520
360
400
40
300
(+) 100
(-) 134
(+) 40
(-) 400
(-) 40
(+)54

Q. 19
Cost Sheet
Particulars
Units
Amount
Raw Material consumed (104 x 10,000)
Direct Wages (60 x 10,000)

10,40,000
6,00,000
Prime Cost
Add: Factory overhead (60% of labour cost)

16,40,000
3,60,000
Works Cost
Add: Office & administrative overhead (20,00,000 x 20%)

20,00,000
4,00,000
Cost of Production
Add: Opening stock of finished goods (500 x 180)
10,000
500
24,00,000
90,000

Less: Closing stock of finished goods (240 x 250)
10,500
250
24,90,000
60,000
Cost of goods sold
Add: Selling & distribution overhead
10,250
24,30,000
2,46,000
Total Cost
Add: Profit
10,250
26,76,000
1,94,000
Sales
10,250
28,70,000
Production = Sales + Closing stock – Opening stock  = 12,250 + 250 – 500 =10,000
Reconciliation Statement
Particulars
Amount
Amount
Profit as per Cost A/c
Add: (i) Rent received shown only in financial A/c
(ii) Opening stock of finished goods undercharged in financial A/c
(iii) Selling & distribution expenses undercharged in financial A/c
(iv) Interest shown only in financial A/c

40,000
20,000
26,000
1,000
1,94,000



87,000

Less: (i) Factory expenses overcharged in financial A/c
(ii) Administrative expenses overcharged in financial A/c
(iii) Closing stock of finished goods undercharged in financial A/c
(iv) Bad debts shown only in financial A/c
(v) Preliminary expenses shown only in financial A/c

19,000
24,000
10,000
16,000
20,000
2,81,000




89,000
Profit as per financial A/c

19,200
Rough Calculation:

Cost Account
Financial Account
Differences
Factory overhead
Administrative overhead
Opening stock of finished goods
Closing stock of finished goods
Selling & distribution overhead
Bad debts
Preliminary exp.
Interest
Rent Received
3,60,000
4,00,000
90,000
60,000
2,46,000
-
-
-
-
3,79,000
4,24,000
70,000
50,000
2,20,000
16,000
20,000
1,000
40,000
-19,000
+24,000
+20,000
-10,000
+26,000
-16,000
-20,000
+1,000
+ 40,000


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