19069comp Sugans Pe2 Costacc Cp6

Non-|ntegrated, |ntegrated & Reconc|||at|on of
6ost and F|nanc|a| Accounts

0uest|on 1
wr|re snorr nore on 0osr leoger 0onrro| /ccounr {Va,, '996, 4 marksj
Answer
0osr leoger 0onrro| /ccounr. Tr|s corlro| accourl |s a|so popu|ar|y |roW as '0erera|
Ledger Adjuslrerl Accourl' |s opered |r Cosl Ledger lo corp|ele douo|e-erlry. A|| |lers ol
|rcore ard experd|lure la|er lror l|rarc|a| accourls ard a|| lrarslers lror cosl accourls lo
l|rarc|a| ooo|s are recorded |r lr|s accourl. 3|rce lre purpose ol lr|s accourl |s lo corp|ele
douo|e erlry |r lre cosl |edger, lrerelore a|| lrarsacl|ors |r lre cosl |edger rusl oe recorded
lrrougr lre 'Cosl Ledger Corlro| Accourl'. Tre oa|arce |r lr|s accourl W||| a|Ways oe equa| lo
lre lola| ol a|| lre oa|arces ol lre |rpersora| accourls.
0uest|on 2
/lrer rne annua| srock rak|ng ,ou come ro knou ol some s|gn|l|canr o|screpanc|es
oerueen oook srock ano pn,s|ca| srock. You garner rne lo||ou|ng |nlormar|on.
lrems $rock 0aro $rores leoger Pn,s|ca| 0neck 0osr/un|r
un|rs un|rs un|rs Rs.
/ 600 600 560 60
3 J80 J80 J85 40
0 750 780 720 '0
{aj wnar acr|on snou|o oe raken ro recoro rne |nlormar|on snoun aoove.
{oj $uggesr reasons lor rne snorrage ano o|screpanc|es o|sc|oseo aoove ano recommeno a
poss|o|e course ol acr|on o, managemenr ro prevenr lurure |osses.
{Your ansuer snou|o oe |n po|nrs ano ,ou neeo nor e|aoorarej.
Answer
[a} For recoro|ng rne |nlormar|on snoun |n rne quesr|on unoer cons|oerar|on, rne lo||ou|ng
acr|on ma, oe raken.
(|) Crec| lre sloc| card ard slores |edger. Tre correcl prys|ca| quarl|ly oe recorded.
(||) lrvesl|gale reasors lor sloc| |osses or ga|rs.
Cost Accounting
6.2
(|||) Aller ascerla|r|rg lre reasors lor sloc| |osses lre lo||oW|rg lrealrerl ray oe
lo||oWed:
(a) 0eo|l Faclory overread A/c
Cred|l 3lores Ledger Corlro| a/c
{|l rne snorrage |s norma|j
(o) 0eo|l Cosl|rg P & L A/c
Cred|l 3lores Ledger Corlro| A/c
{|l rne snorrage |s aonorma|j
(c) 0eo|l wor|-|r-progress A/c
Cred|l 3lores Ledger Corlro| A/c
{|l rne snorrage |s oue ro non-recoro|ng or snorr recoro|ng erc.j
(|v) Recl|l|cal|or erlry ray oe passed lor c|er|ca| errors.
(v) Aller ascerla|r|rg lre reasor lor sloc| ga|rs ar appropr|ale acl|or ray oe la|er as
lo||oWs:
(a) 0eo|l 3lores Ledger A/c
Cred|l Faclory 0verread A/c
{|l rne excess ol srock |s oue ro norma| causesj
(o) 0eo|l 3lores Ledger Corlro| A/c
Cred|l Cosl|rg P & L A/c
{|l rne excess ol srock |s oue ro aonorma| c|rcumsrancesj
(c) 0eo|l 3lores Ledger Corlro| A/c
Cred|l wor|-|r-progress A/c
{|l rne excess srock |s oue ro urong recoro|ng erc.j
(v|) r lre g|ver exarp|e, lre |osses are W|lr relererce lo |lers A (Rs. 0 x 10 ur|ls =
Rs. 2,100 ard C (Rs. 10 x 0 = Rs. 00). As lre reasors lor lrose |osses are rol
g|ver lrerelore lrey ray oe dec|ded lo P/L A/c ard 3lores Ledger Corlro| A/c oe
cred|led accord|rg|y.
(v||) Tre ga|rs are |r respecl ol sloc| |ler 8 (Rs. 10 x 5 = Rs.200). For lreal|rg ga|r ol
Rs. 200 3lores Ledger Corlro| A/c oe deo|led ard Cosl|rg P/L A/c cred|led.
(b} Reason for the shortage and d|screpanc|es:
(|) waslage ol raler|a| due lo spo||age, evaporal|or elc. Wr|cr ray oe rorra| or
aororra|.
(||) Corporerls |ssued lor producl|or W|lroul erlry or sloc| card ard slores |edger.
(|||) 3lores slall r|sread|rg l|gures or lre requ|s|l|ors.
Non-integrated, Integrated & Reconciliation of Cost and Financial Accounts
6.3
(|v) Trell ol sloc| lror slores.
(v) C|er|ca| errors |r slores |edger.
Recommenoeo 0ourse ol acr|on ro prevenr lurure |osses
(|) Erlry |r lre slores srou|d oe reslr|cled lo aulror|sed persors or|y.
(||) A|| |ssues ol sloc| srou|d oe aga|rsl proper sloc| requ|s|l|or s||p.
(||) 3lores srou|d lo||oW a sysler ol |rlerra| crec| lor a|| |lers ol sloc|.
(|||) Proper accourl|rg oe dore lor a|| sloc| rovererls.
(|v) Record|rg ol erlr|es |r slores |edger ard sloc| card srou|d oe rade carelu||y.
(v) 3loc| |lers Wr|cr core l|rsl |r lre slores srou|d oe |ssued l|rsl lo avo|d |oses due
lo deler|oral|or or ooso|escerce.
0uest|on 3
wnar are rne essenr|a| pre-requ|s|res ol |nregrareo accounr|ng s,srem?
{hov, '996, 200', 2008, 4, J marksj
Answer
Essent|a| pre-requ|s|tes of |ntegrated Account|ng 8ystem:
Tre esserl|a| pre-requ|s|les ol |rlegraled accourl|rg sysler |rc|ude lre lo||oW|rg:
1. Tre raragererl's dec|s|or aooul lre exlerl ol |rlegral|or ol lre lWo sels ol ooo|s.
3ore corcerrs l|rd |l uselu| lo |rlegrale uplo lre slage ol pr|rary cosl or laclory cosl
Wr||e olrer preler lu|| |rlegral|or ol lre erl|re accourl|rg records.
2. A su|lao|e cod|rg sysler rusl oe rade ava||ao|e so as lo serve lre accourl|rg
purposes ol l|rarc|a| ard cosl accourls.
3. Ar agreed roul|re, W|lr regard lo lre lrealrerl ol prov|s|or lor accrua|s, prepa|d
experses, olrer adjuslrerl recessary lor preparal|or ol |rler|r accourls.
1. Perlecl coord|ral|or srou|d ex|sl oelWeer lre slall respors|o|e lor lre l|rarc|a| ard cosl
aspecls ol lre accourls ard ar ell|c|erl process|rg ol accourl|rg docurerls srou|d oe
ersured.
urder lr|s sysler lrere |s ro reed lor a separale cosl |edger. 0l course, lrere W||| oe a
ruroer ol suos|d|ary |edgers; |r add|l|or lo lre uselu| Cuslorers Ledger ard lre 8ougrl
Ledger, lrere W||| oe : (a) 3lores Ledger; (o) 3loc| Ledger ard (c) Joo Ledger.
0uest|on 4
wnar are rne aovanrages ol |nregrareo accounr|ng? {hov.,'997,Va,, 2002, 4 marksj
Cost Accounting
6.4
Answer
/ovanrages ol lnregrareo /ccounr|ng.
lrlegraled Accourl|rg |s lre rare g|ver lo a sysler ol accourl|rg Wrereoy cosl ard
l|rarc|a| accourls are |epl |r lre sare sel ol ooo|s. 3ucr a sysler W||| rave lo allord lu||
|rlorral|or requ|red lor Cosl|rg as We|| as lor F|rarc|a| Accourls. lr olrer Words, |rlorral|or
ard dala srou|d oe recorded |r sucr a Way so as lo erao|e lre l|rr lo ascerla|r lre cosl
(logelrer W|lr lre recessary ara|ys|s) ol eacr producl, joo, process, operal|or or ary olrer
|derl|l|ao|e acl|v|ly. For |rslarce, purcrases are ara|ysed oy ralure ol raler|a| ard |ls erd-
use. Purcrases accourl |s e||r|raled ard d|recl posl|rgs are rade lo 3lores Corlro| Accourl,
wor|-|r-Progress accourl, or 0verread Accourl. Payro|| |s slra|grlWay ara|ysed |rlo d|recl
|aoour ard overreads. ll a|so ersures lre ascerla|rrerl ol rarg|ra| cosl, var|arces,
aororra| |osses ard ga|rs. lr lacl a|| |rlorral|or lral raragererl requ|res lror a sysler ol
Cosl|rg lor do|rg |ls Wor| proper|y |s rade ava||ao|e. Tre |rlegraled accourls g|ve lu||
|rlorral|or |r sucr a rarrer so lral lre prol|l ard |oss accourl ard lre oa|arce sreel car oe
prepared accord|rg lo lre requ|rererls ol |aW ard lre raragererl ra|rla|rs lu|| corlro| over
lre ||ao|||l|es ard assels ol |ls ous|ress.
Tre ra|r advarlages ol lrlegraled Accourl|rg are as lo||oWs:
(|) 3|rce lrere |s ore sel ol accourls, lrus lrere |s ore l|gure ol prol|l. lerce lre quesl|or
ol recorc|||al|or ol cosl|rg prol|l ard l|rarc|a| prol|l does rol ar|se.
(||) Trere |s ro dup||cal|or ol record|rg ol erlr|es ard ellorls lo ra|rla|r separale sel ol
ooo|s.
(|||) Cosl|rg dala are ava||ao|e lror ooo|s ol or|g|ra| erlry ard rerce ro de|ay |s caused |r
oola|r|rg |rlorral|or.
(|v) Tre operal|or ol lre sysler |s lac|||laled W|lr lre use ol recrar|zed accourl|rg.
(v) Cerlra||zal|or ol accourl|rg lurcl|or resu|ls |r ecorory.
0uest|on 5
wnar oo ,ou unoersrano o, |nregrareo accounr|ng s,srem? $rare |rs aovanrages ano pre-
requ|s|res.
Answer
lrlegraled (or lrlegra|) Accourls |s lre rare g|ver lo a sysler Wrereoy cosl ard
l|rarc|a| accourls are |epl |r lre sare sel ol ooo|s. 0ov|ous|y, lrer lrere W||| oe ro separale
sels ol ooo|s lor Cosl|rg ard F|rarc|a| purposes. lrlegraled Accourls W||| rave lo allord lu||
|rlorral|or requ|red lor Cosl|rg as We|| as lor F|rarc|a| Accourls. lr olrer Words, |rlorral|or
ard dala srou|d oe recorded |r sucr a Way as lo erao|e lre l|rr lo ascerla|r lre Cosl
|derl|l|ao|e acl|v|ly. For |rslarce, purcrases are ara|ysed oy ralure ol raler|a| ard |ls erd-
use. Purcrase accourls are e||r|raled ard d|recl posl|rgs are rade lo 3lores Corlro|
Accourl, wor|-|r-Progress Accourl, or 0verread Accourl. Payro|| |s slra|grlWay ara|ysed
6.5
|rlo d|recl |aour ard overreads. ll a|so ersures lre ascerla|rrerl ol rarg|ra| cosl, var|arces,
aororra| |osses ard ga|rs - |r lacl, a|| |rlorral|or lral raragererl requ|res lror a sysler
ol Cosl|rg lor do|rg |ls Wor| proper|y. Tre |rlegraled accourls g|ve lu|| |rlorral|or |r sucr a
rarrer so lral lre prol|l ard |oss accourl ard lre oa|arce sreel car oe prepared accord|rg
lo lre requ|rererls ol |aW ard lre raragererl ra|rla|rs lu|| corlro| over lre ||ao|||l|es ard
assels ol |ls ous|ress.
Tre ra|r advarlages ol lrlegraled Accourls are as lo||oWs:
(1) 3|rce lrere |s ore sel ol accourls, lrus lrere |s ore l|gure ol prol|l. lerce lre quesl|or ol
recorc|||al|or ol cosl|rg prol|l ard l|rarc|a| prol|l does rol ar|se.
(2) Trere |s ro dup||cal|or ol record|rg ol erlr|es ard ellorls |r lre separale sel ol ooo|s.
(3) Cosl|rg dala are ava||ao|e lror ooo|s ol or|g|ra| erlry ard rerce ro de|ay |s caused |r
(1) Tre operal|or ol lre sysler |s lac|||laled W|lr lre use ol recrar|sed accourl|rg.
(5) Cerlra||sal|or ol accourl|rg lurcl|or resu|ls |r ecorory.
Tre esserl|a| pre-requ|s|les lor |rlegraled accourls |rc|ude lre lo||oW|rg sleps.
1. Tre raragererl's dec|s|or aooul lre exlerl ol |rlegral|or ol lWo sels ol ooo|s. 3ore
corcerrs l|rd |l uselu| lo |rlegrale uplo lre slage ol pr|rary cosl or laclory cosl Wr||e
olrers preler lu|| |rlegral|or ol lre erl|re accourl|rg records.
2. A su|lao|e cod|rg sysler rusl oe rade ava||ao|e so as lo serve lo accourl|rg purposes
ol l|rarc|a| ard cosl accourls.
3. Ar agreed roul|re, W|lr regard lo lre lrealrerl ol prov|s|or lor accrua|s, prepa|d
experses, ard olrer adjuslrerls recessary lor preparal|or ol |rler|r accourls.
1. Perlecl co-ord|ral|or srou|d ex|sl oelWeer lre slall respors|o|e lor lre l|rarc|a| ard cosl
aspecls ol lre accourls ard ar ell|c|erl process|rg ol lre accourl|rg docurerls srou|d
oe ersured.
0uest|on
wr|re nores on lnregrareo /ccounr|ng {Va,, '999, '998, 4 marksj
Answer
lnregrareo /ccounr|ng
lrlegraled Accourl|rg |s lre rare g|ver lo a sysler ol accourl|rg Wrereoy cosl ard
l|rarc|a| accourls are |epl |r lre sare sel ol ooo|s. 3ucr a sysler W||| rave lo allord lu||
|rlorral|or requ|red lor cosl|rg as We|| as lor F|rarc|a| Accourls. lr olrer Words, |rlorral|or
ard dala srou|d oe recorded |r sucr a Way so as lo erao|e lre l|rr lo ascerla|r lre cosl
|derl|l|ao|e acl|v|ly. For |rslarce, purcrases ara|ysed oy ralure ol raler|a| ard |ls erd use.
Purcrases accourl |s e||r|raled ard d|recl posl|rgs are rade lo 3lores Corlro| Accourl,
wor|-|r-Progress accourls, or 0verread Accourl. Payro|| |s slra|grlWay ara|ysed |rlo d|recl
Cost Accounting
6.6
|aoour ard overreads. ll a|so ersures lre ascerla|rrerl ol rarg|ra| cosl, var|arces,
aororra| |osses ard ga|rs, lr lacl, a|| |rlorral|or lral raragererl requ|res lror a sysler ol
cosl|rg lor do|rg |ls Wor| proper|y |s rade ava||ao|e. Tre |rlegraled accourls g|ve lu||
|rlorral|or |r sucr a rarrer so lral lre prol|l ard |oss accourl ard lre oa|arce sreel car oe
prepared accord|rg lo lre requ|rererls ol |aW ard lre raragererl ra|rla|rs lu|| corlro| over
lre ||ao|||l|es ard assels ol |ls ous|ress.
Tre ra|r advarlages ol lrlegraled Accourl|rg are as lo||oWs:
(|) 3|rce lrere |s ore sel ol accourls, lrus lrere |s ore l|gure ol prol|l. lerce lre quesl|or
(||) Trere |s ro dup||cal|or ol record|rg ol erlr|es ard ellorls |r lre separale sel ol ooo|s.
(|||) Cosl|rg dala are ava||ao|e lror ooo|s ol or|g|ra| erlry ard rerce ro de|ay |s casued |r
(|v) Tre operal|or ol lre sysler |s lac|||laled W|lr lre use ol recrar|sed accourl|rg.
(v) Cerlra||sal|or ol accourl|rg lurcl|or resu|ls |r ecorory.
0uest|on 7
wn, |s |r necessar, ro reconc||e rne Prol|rs oerueen rne 0osr /ccounrs ano F|nanc|a|
/ccounrs? {Va,, 2004, 5 marksj
Answer
wrer lre cosl ard l|rarc|a| accourls are |epl separale|y, ll |s |rperal|ve lral lrese
srou|d oe recorc||ed, olrerW|se lre cosl accourls Wou|d rol oe re||ao|e. Tre recorc|||al|or ol
lWo sel ol accourls car oe rade, |l oolr lre sels corla|r sull|c|erl dela|| as Wou|d erao|e lre
causes ol d|llererces lo oe |ocaled. ll |s, lrerelore, |rporlarl lral |r lre l|rarc|a| accourls,
lre experses srou|d oe ara|ysed |r lre sare Way as |r cosl accourls. ll |s |rporlarl lo |roW
lre causes Wr|cr gerera||y g|ve r|se lo d|llererces |r lre cosls & l|rarc|a| accourls. Trese
are:
(|) llers |rc|uded |r l|rarc|a| accourls oul rol |r cosl accourls Appropr|al|or ol prol|ls
- lrcore-lax
- Trarsler lo reserve
- 0|v|derds pa|d
- 0oodW||| / pre||r|rary experses Wr|ller oll
Pure l|rarc|a| |lers
- lrleresl, d|v|derds
- Losses or sa|e ol |rveslrerls
- Experses ol Co's srare lrarsler oll|ce
- 0arages & pera|l|es
6.7
(||) llers |rc|uded |r cosl accourls oul rol |r l|rarc|a| accourls
- 0pporlur|ly cosl ol cap|la|
- Nol|ora| rerl
(|||) urder / 0ver aosorpl|or ol experses |r cosl accourls
(|v) 0|llererl oases ol |rverlory va|ual|or
Vol|val|or lor recorc|||al|or are:
- To ersure re||ao|||ly ol cosl dala
- To ersure ascerla|rrerl ol correcl producl cosl
- To ersure correcl dec|s|or ra||rg oy lre raragererl oased or Cosl & F|rarc|a|
dala
- To reporl lru|llu| l|rarc|a| / cosl dala.
0uest|on 8
wnar are rne reasons lor o|sagreemenr ol prol|rs as per cosr accounrs ano l|nanc|a|
accounrs? 0|scuss. {Va,, 2000, 4 marksj
Answer
Reasons for d|sagreement of prof|ts as per cost and f|nanc|a| accounts
Tre var|ous reasors lor d|sagreererl ol prol|ls sroWr oy lre lWo sels ol ooo|s v|z., cosl ard
l|rarc|a| ray oe ||sled as oe|oW:
1. llers appear|rg or|y |r l|rarc|a| accourls
Tre lo||oW|rg |lers ol |rcore ard experd|lure are rorra||y |rc|uded |r l|rarc|a|
accourls ard rol |r cosl accourls. Tre|r |rc|us|or |r cosl accourls r|grl |ead lo urW|se
rarager|a| dec|s|ors. Trese |lers are:
(|) lrcore:
(a) Prol|l or sa|e ol assels
(o) lrleresl rece|ved
(c) 0|v|derd rece|ved
(d) Rerl rece|vao|e
(e) 3rare Trarsler lees
(||) Experd|lure
(a) Loss or sa|e ol assels
(o) ur|rsured deslrucl|or ol assels
(c) Loss due lo scrapp|rg ol p|ar ard racr|rery
Cost Accounting
6.8
(d) Pre||r|rary experses Wr|ller oll
(e) 0oodW||| Wr|ller oll
(l) urderWr|l|rg corr|ss|or ard deoerlure d|scourl Wr|ller oll
(g) lrleresl or rorlgage ard |oars
(r) F|res ard pera|l|es
(|||) Appropr|al|or
(a) 0|v|derds
(o) Reserves
(c) 0|v|derd equa||zal|or lurd, 3|r||rg, lurd elc.
2. llers appear|rg or|y |r cosl accourls
Trere are sore |lers Wr|cr are |rc|uded |r cosl accourls oul rol |r l|rarc|a| accourl.
Trese are:
(a) Nol|ora| |rleresl or cap|la|;
(o) Nol|ora| rerl or prer|ses oWred.
3. urder or over-aosorpl|or ol overread
lr cosl accourls overreads are crarged lo producl|or al pre-delerr|red rales Wrere |r
l|rarc|a| accourls aclua| arourl ol overread |s crarged, lre d|llererce g|ves r|se urder-
or over-aosorpl|or; caus|rg a d|llererce |r prol|ls.
1. 0|llererl oases ol sloc| va|ual|or
lr l|rarc|a| ooo|s, sloc|s are va|ued al cosl or rar|el pr|ce, Wr|crever |s |oWer. lr cosl
ooo|s, roWever, sloc| ol raler|a|s ray oe va|ued or FlF0 or LlF0 oas|s ard Wor|-|r-
progress ray oe va|ued al pr|re cosl or Wor|s cosl. 0|llererces |r slore va|ual|or ray
lrus cause a d|llererce oelWeer lre lWo prol|ls.
5. 0eprec|al|or
Tre arourl ol deprec|al|or crarge ray oe d|llererl |r lre lWo sels ol ooo|s e|lrer
oecause ol lre d|llererl relrods ol ca|cu|al|rg deprec|al|or or lre rales adopled. lr
corpary accourls, lor |rslarce, lre slra|grl ||re relrod ray oe adopled Wrereas |r
l|rarc|a| accourls ll ray oe lre d|r|r|sr|rg oa|arce relrod.
0uest|on 9
'Reconc|||ar|on ol cosr ano l|nanc|a| accounrs |n rne mooern compurer age |s reounoanr.
0ommenr. {Va,, '998, 4 marksj
6.9
Answer
lr lre roderr corpuler age lre use ol corpuler |roW|edge ard accourl|rg sollWares
ras re|ped lre l|e|d ol F|rarc|a| ard Cosl Accourl|rg |r a o|g Way. lr lacl, corpulers Wor| al
a very r|gr speed ard car process vo|ur|rous dala lor gereral|rg des|red oulpul |r ro l|re.
0ulpul produced |s prec|se ard accurale. Corpulers car Wor| lor rours W|lroul ary lal|gue.
Trey car or|rg oul d|llererl F|rarc|a| Accourl|rg ard Cosl Accourl|rg slalererls ard reporls
accurale|y |r a preserlao|e lorr. F|rarc|a| accourls ard Cosl accourls sroW lre|r resu|ls
accurale|y ard prec|se|y, Wrer ra|rla|red or a corpuler sysler, oul lre prol|l sroWr oy ore
sel ol ooo|s ray rol agree W|lr lral ol lre olrer sel.
Tre ra|r reasors lor lre d|sagreererl ol lre prol|l l|gures sroWr oy lre lWo sel ol ooo|s |s
lre aoserce ol cerla|r |lers Wr|cr appear |r l|rarc|a| ooo|s or|y ard are rol recorded |r cosl
accourl|rg ooo|s. 3|r||ar|y, lrere ray oe sore |lers Wr|cr appear |r cosl accourls oul do
rol l|rd a p|ace |r lre l|rarc|a| ooo|s. 3ore exarp|es Wr|cr allecls |l are as oe|oW:
(|) Loss/prol|l or sa|e ol l|xed assels.
(||) Experses or slarp duly, d|scourl ard olrer experses re|al|rg lo lre |ssue ard lrarsler
ol srares ard deoerlures.
(|||) Fee rece|ved or |ssue ard lrarsler ol srares elc.
(|v) lrleresl or oar| |oar, rorlgage elc.
(v) lrleresl rece|ved or oar| depos|ls ard olrer |rveslrerls.
(v|) F|res ard pera|l|es
(v||) 0|v|derd rece|ved or |rveslrerls |r srares.
(v|||) Rerla| |rcore elc.
(|x) urder or over recovered experses.
(x) 0|llererce due lo vary|rg oas|s ol va|ual|or ol sloc| or |r lre raller ol crarg|rg
deprec|al|or.
urder lre s|lual|or ol d|llererl|a| prol|l l|gure sroWr oy l|rarc|a| ard cosl accourls, |l |s
recessary lo recorc||e lre resu|ls (prol|l/|oss) sroWr. 3ucr a recorc|||al|or proves ar|lrrel|ca|
accuracy ol dala, exp|a|rs reasors lor lre d|llererce |r lWo sels ol ooo|s ard allords re||ao|||ly
lo lrer. lerce, lre recorc|||al|or ol cosl ard l|rarc|a| accourls |s esserl|a| ard rol
redurdarl ever |r lre roderr age ol corpuler.
0uest|on 10
wnar are rne reasons lor o|sagreemenr ol Prol|rs as per F|nanc|a| accounrs ano 0osr
accounrs? 0|scuss? {hov, '999, 4 marksj
Cost Accounting
6.10
Answer
Reasors lor d|sagreererl ol 'Prol|ls as per F|rarc|a| accourls ard Cosl accourls are as
oe|oW. Trere are cerla|r |lers Wr|cr are |rc|uded |r F|rarc|a| accourls oul rol |r Cosl
Accourls. L||eW|se lrere are cerla|r |lers Wr|cr are |r Cosl Accourls oul rol |r F|rarc|a|
accourls.
Examp|es ol l|nanc|a| cnarges un|cn appear on|, |n l|nanc|a| oooks are.
(|) Loss or lre sa|e ol l|xed assels ard |rveslrerls.
(||) lrleresl or oar| |oars, rorlgage elc.
(|||) Experses re|al|rg lo lre |ssue ard lrarsler ol srares ard deoerlures |||e slarps duly
experses; d|scourl or srares ard deoerlures elc.
(|v) Pera|l|es ard l|res.
Examp|es ol |ncomes un|cn are recoroeo |n rne l|nanc|a| oooks on|, are.
(|) Prol|l or lre sa|e ol |rveslrerls ard l|xed assels.
(||) lrleresl rece|ved or |rveslrerls ard oar| depos|ls.
(|||) 0|v|derd rece|ved or |rveslrerl |r srares.
(|v) Fees rece|ved or |ssue ard lrarsler ol srares elc.
(v) Rerla| |rcore.
Trere are aororra| or spec|a| |lers ol experd|lure ard |rcore Wr|cr are rol |rc|uded |r
lre cosl ol producl|or. Tre|r |rc|us|or |r cosl ol producl|or, Wou|d resu|l |rlo |rcorrecl cosl
ascerla|rrerl. 0|llererl oases ol crarg|rg deprec|al|or a|so accourls lor lre d|sagreererl ol
prol|ls as per l|rarc|a| ard cosl accourls. 0|llererl relrods ol va|ual|or ol c|os|rg sloc|
adopled |r cosl ard l|rarc|a| accourls W||| a|so accourl lor lre d|llererce |r prol|ls urder
l|rarc|a| ard cosl accourls.
0uest|on 11
wn, |s |r necessar, ro reconc||e rne Prol|r oerueen 0osr /ccounrs ano F|nanc|a| /ccounrs?
{hov, 2002, 5 marksj
Answer
heeo lor reconc|||ar|on. wrer cosl ard l|rarc|a| accourls are ra|rla|red separale|y, lre
prol|l sroWr oy ore sel ol ooo|s ray rol agree W|lr lral ol lre olrer sel. lr sucr a s|lual|or, |l
oecores recessary lo recorc||e lre resu|ls (prol|l / |oss) sroWr oy lWo sels ol ooo|s.
0auses lor o|llerence oerueen prol|r snoun o, cosr ano l|nanc|a| accounrs
(|) Trere are cerla|r |lers Wr|cr appear |r l|rarc|a| ooo|s or|y ard are rol recorded |r cosl
accourl|rg ooo|s e.g. |oss or sa|e ol l|xed assels; experses or slarp duly; |rleresl or
oar| |oar elc. 3|r||ar|y, lrere ray oe sore |lers Wr|cr appear |r cosl accourls or|y
ard do rol l|rd a p|ace |r lre l|rarc|a| ooo|s e.g. rol|ora| rerl; ral|ora| |rleresl elc.
6.11
(||) lr cosl accourls, overreads are gerera||y aosoroed or lre oas|s ol a pre-delerr|red
overread rale, Wrereas |r l|rarc|a| accourls aclua| experd|lure or overreads |s
recorded, lr|s W||| a|so cause a d|llererce oelWeer lre l|gure ol prol|l sroWr urder
l|rarc|a| ard cosl accourl.
(||) 0|llererl relrods ol va|ual|or ol c|os|rg sloc| adopled |r cosl ard l|rarc|a| accourls W|||
a|so cause a d|llererce |r lre resu|ls sroWr oy lre lWo sels ol ooo|s. lr l|rarc|a|
accourls lre relrod gerera||y lo||oWed |s cosl or rar|el pr|ce, Wr|crever |s |ess
Wrereas |r cosl accourls d|llererl relrods ol pr|c|rg ol raler|a| |ssues sucr as LlF0,
FlF0, average elc are used.
(|||) use ol d|llererl relrods ol deprec|al|or |s a|so respors|o|e lor lre var|al|or ol prol|l
sroWr oy lWo sels ol ooo|s. lr l|rarc|a| accourls, deprec|al|or ray oe crarged
accord|rg lo Wr|ller doWr va|ue relrod Wrereas |r cosl accourls |s ray oe crarged or
lre oas|s ol lre ||le ol lre racr|re.
(|v) Aororra| |lers rol |rc|uded |r cosl accourls a|so causes a d|llererce |r prol|l. ll sucr
|lers ol experses are |rc|uded, cosl ascerla|red W||| rol oe correcl.
0uest|on 12
From rne lo||ou|ng oara ur|re up rne var|ous accounrs as ,ou env|sage |n rne cosr |eoger
ano prepare a rr|a| oa|ance as on J'
sr
Varcn '984.
{aj 3a|ance as on '
sr
/pr|| '98J.
Rs. {|n rnousanosj
Varer|a| 0onrro| ',240
work-|n-Progress 625
F|n|sneo Sooos ',240
Prooucr|on Dverneao 84
/om|n|srrar|ve Dverneao '20 {cr.j
$e|||ng & 0|srr|our|on Dverneao 65
Senera| leoger conrro| J,'J4
{oj Transacr|ons lor rne ,ear enoeo J'
sr
Varcn '984
Varer|a|
Purcnases 4,80'
lssueo ro .
Joos 4,774
Va|nrenance uorks 4'2
Cost Accounting
6.12
/om|n|srrar|on oll|ces J4
$e|||ng 0eparrmenr 72
0|recr wages ',49J
lno|recr wages 650
0arr|age lnuaro 84
Prooucr|on Dverneaos.
lncurreo 2,42J
/osoroeo J,59'
/om|n|srrar|on overneaos.
lncurreo 740
/||ocareo ro Prooucr|on 529
/||ocareo ro sa|es '48
$a|es overneaos.
lncurreo 642
/osoroeo 820
F|n|sneo gooos proouceo 9,584
F|n|sneo gooos so|o 9,77J
$a|es rea||sar|on '2,4J0
Answer
6ost Ledger
Cenera| Ledger Adjustment Account
0r. 0r.
Rs. '000 Rs. '000
To Cosl|rg Prol|l & Loss A/c 8y 8a|arce o/d 3,131
(3a|es) 12,130 8y Valer|a| Corlro| A/c 1,801
To 8a|arce c/d 3,22 8y wage Corlro| A/c 2,113
8y Producl|or 0verread
Corlro| A/c (carr|age) 81
Corlro| A/c 2,123
8y Adr|r|slral|or 0verread
Corlro| A/c Z10
8y 3e|||rg & 0|sl. Corlro| A/c 12
_____ 8y Cosl|rg Prol|l & Loss A/c 1,89
15,5 15,5
6.13
Hater|a| 6ontro| Account
0r. 0r.
Rs. '000 Rs. 000
To 8a|arce o/d 1,210 8y wlP Corlro| A/c 1,ZZ1
To 0erera| Ledger Adjuslrerl A/c 1,801 8y Producl|or 0verread
Corlro| A/c 112
8y Adr|r|slral|or 0verread
Corlro| A/c 31
8y 3e|||rg & 0|sl. 0verread
Corlro| A/c Z2
____ 8y 8a|arce c/d Z19
,011 ,011
wages 6ontro| Account
0r. 0r.
Rs.000 Rs. '000
To 0erera| Ledger Adjuslrerl A/c 2,113 8y wlP Corlro| A/c 1,193
____
Corlro| A/c 50
2,113 2,113
Product|on 0verhead 6ontro| Account
0r. 0r.
Rs.000 Rs 000
To 8a|arce o/d 81 8y wlP corlro| A/c 3,591
To Valer|a| Corlro| A/c 112 8y 8a|arce c/d 2
To 0erera| Ledger Adjuslrerl A/c 81
To wages Corlro| A/c 50
To 0erera| Ledger Adjuslrerl A/c 2,123 ____
3,53 3,53
work-|n progress 6ontro| Account
0r. 0r.
Rs. 000 Rs.000
To 8a|arce o/d 25 8y F|r|sred 0oods 9,581
To Valer|a| Corlro| A/c 1,ZZ1 Corlro| A/c
To wages Corlro| A/c 1,193 8y 8a|arce c/d 899
To Producl|or 0verread
Corlro| A/c 3,591 _____
10,183 10,183
Cost Accounting
6.14
Adm|n|strat|ve 0verhead 6ontro| Account
0r. 0r.
Rs.000 Rs.000
To Valer|a| Corlro| A/c 31 8y 8a|arce o/d 120
To 0erera| Ledger Z10 8y F|r|sred 0oods 529
Adjuslrerl A/c Corlro| A/c
To 8a|arce c/d 23 8y Cosl ol 3a|es A/c 118
Z9Z Z9Z
F|n|shed Coods 6ontro| Account
0r. 0r.
Rs. 000 Rs. 000
To 8a|arce o/d 1,210 8y Cosl ol 3a|es A/c 9,ZZ3
To Adr|r|slral|ve 0verread 529 8y 8a|arce c/d 1,580
Corlro| A/c
To wlP Corlro| A/c 9,581 _____
11,353 11,353
8e|||ng & 0|str|but|on 0verhead 6ontro| Account
0r. 0r.
Rs. '000 Rs. '000
To 8a|arce o/d 5 8y Cosl ol 3a|es A/c 820
To Valer|a| Corlro| A/c Z2
To 0erera| Ledger 12
Adjuslrerl A/c
To 8a|arce c/d 11 ___
820 820
6ost of 8a|es Account
0r. 0r.
Rs. 000 Rs. 000
To F|r|sred 0oods 9,ZZ3 8y Cosl|rg Prol|l & Loss A/c 10,Z11
Corlro| A/c
To 3e|||rg & 0|sl. 820
0verread Corlro| A/c
To Adrr. 0verread 118
Corlro| A/c ______ _____
10,Z11 10,Z11
6.15
6ost|ng Prof|t & Loss Account
0r. 0r.
Rs. '000 Rs. '000
To Cosl ol 3a|es A/c 10,Z11 8y 0erera| Ledger 12,130
To 0erera| Ledger 1,89 Adjuslrerl A/c
Adjuslrerl A/c _____ (3a|es) _____
12,130 12,130
Tr|a| a|ance as on 31
st
Harch, 1984
0r. 0r.
Rs. '000 Rs. 000
Valer|a| Corlro| A/c Z19
wor|-|r-progress Corlro| A/c 899
F|r|sred 0oods Ledger Corlro| A/c 1,580
Producl|or 0verread Corlro| A/c 2
Adrr. 0verread Corlro| A/c 23
3e|||rg & 0|sl. 0verread corlro| A/c 11
0erera| Ledger Adjuslrerl A/c ____ 3,22
3,290 3,290
Note : Adr|r|slral|ve 0verreads are gerera||y crarged lo F|r|sred 0oods A/c. lerce lre
express|or |r lre quesl|or 'Adr|r|slral|ve overreads a||ocaled lo producl|or'' ras
oeer |rlerpreled as 'Adr|r|slral|ve overreads a||ocaled lo l|r|sred producl|or' ard
accord|rg|y crarged lo F|r|sred 0oods A/c.
0uest|on 13
Tne lo||ou|ng oa|ances are snoun |n rne cosr |eoger ol v|nak lro. /s on J'
sr
Dcr. '98'.
0r. {Rs.j 0r. {Rs.j
work |n Progress /ccounr 7,056
Facror, Dverneao $uspense /ccounr J60
F|n|sneo $rock /ccounr 5,274
$rores leoger accounr 9,450
/omn. Dverneao $uspense /ccounr '80
Senera| leoger /ousrmenr /ccounr 22,J20
Cost Accounting
6.16
Transacr|ons lor rne ,ear enoeo J0
rn
$epremoer '982 uere.
Rs.
$rores |ssueo ro prooucr|on 45,J70
$rores purcnaseo 52,400
Varer|a| purcnaseo lor o|recr |ssue ro prooucr|on ','J5
wages pa|o {lnc|uo|ng |no|recr |aoour Rs. 2,520j 57,600
F|n|sneo gooos so|o ','8,800
/om|n|srrar|on expenses 5,400
$e|||ng expenses 6,000
Facror, overneaos '5,600
$rores |ssueo lor cap|ra| uork |n progress ',500
Rs.
F|n|sneo gooos rranslerreo ro uarenouse ',08,000
$rores |ssueo lor lacror, repa|rs 2,000
Facror, overneaos app||eo ro prooucr|on '6,8J0
/om. Dverneaos cnargeo ro prooucr|on 4,580
Facror, overneaos app||cao|e ro unl|n|sneo uork J,080
$e|||ng overneaos a||ocareo ro sa|es 5,500
$rores |osr oue ro l|re |n srores {hor |nsureoj '50
/om|n|srrar|on expenses on unl|n|sneo uork 850
F|n|sneo gooos srock on J0-9-'982 '4,274
You are requ|reo ro recoro rne enrr|es |n rne cosr |eoger lor rne ,ear enoeo J0
rn
$epremoer, '982 ano prepare a rr|a| oa|ance as on rnar oare.
Answer
6ost Ledger
Cenera| Ledger Adjustment Account
0r. 0r.
Rs. Rs.
To Cosl ol 3a|es A/c 1,18,800 8y 8a|arce o/d 22,320
To 8a|arce c/d 51,585 8y 3lores |edger corlro| A/c 52,100
8y wlP corlro| A/c 1,135
8y wages corlro| A/c 5Z,00
6.17
8y Faclory 0verread corlro| A/c 15,00
8y Adrr. 0verread corlro| A/c 5,100
8y 3e|||rg 0verread corlro| A/c ,000
_______ 8y Cosl|rg Prol|l & Loss A/c 12,930
1,Z3,385 1,Z3,385
8tores Ledger 6ontro| Account
Rs. Rs.
To 8a|arce o/d 9,150 8y wlP Corlro| A/c 15,3Z0
To 0er. Ledger Adj. A/c 52,100 8y Cap|la| wlP A/c 1,500
8y Faclory 0verread corlro| A/c 2,000
8y Cosl|rg P/L A/c 150
_____ 8y 8a|arce c/d 12,830
1,850 1,850
work-|n Progress 6ontro| A|c
Rs. Rs.
To 8a|arce o/d Z,05 8y F|r|sred 0oods Corlro| A/c 1,08,000
To 0er. Ledger Adj. A/c 1,135
To 3lores Ledger Corlro| A/c 15,3Z0 8y 8a|arce c/d 22,051
To wages Corlro| A/c 55,080
To Faclory 0verread Corlro| A/c 1,830
To Adrr. 0verread Corlro| A/c 1,580 _______
1,30,051 1,30,051
F|n|shed Coods 6ontro| Account
Rs. Rs.
To 8a|arce o/d 5,2Z1 8y Cosl ol 3a|es A/c 99,000
To wlP Corlro| A/c 1,08,000 8y 8a|arce c/d 11,2Z1
1,13,2Z1 1,13,2Z1
wages 6ontro| Account
Rs. Rs.
To 0er. Ledger Adj. A/c 5Z,00 8y wlP Corlro| A/c 55,080
_____ 8y Faclory 0verread Corlro| A/c 2,520
5Z,00 5Z,00
Cost Accounting
6.18
Factory 0verhead 6ontro| Account
Rs. Rs.
To Faclory overread
susperse A/c
30 8y wlP Corlro| A/c 1,830
To 0er. Ledger Adj. A/c 15,00 8y Faclory 0verread 3usperse A/c 3,080
To 3lores Ledger Corlro| A/c 2,000 8y Cosl|rg Prol|l & Loss A/c 5Z0
To wages Corlro| A/c 2,520 _____
20,180 20,180
Adm|n|strat|ve 0verhead 6ontro| Account
Rs. Rs.
To Adrr. 0verread 3usperse A/c 180 8y wlP Corlro| A/c 1,580
To 0er. Ledger Adj. A/c 5,100 8y Adrr. 0verread 3usp. A/c 850
____ 8y Cosl|rg Prol|l & Loss A/c 150
5,580 5,580
6ost 8a|es Account
Rs. Rs.
To F|r|sred 0oods Corlro| A/c 99,000 8y Cosl|rg Prol|l & Loss A/c 1,01,500
To 3e|||rg 0verread Corlro| A/c 5,500 ______
1,01,500 1,01,500
Factory 0verhead 8uspense Account
Rs. Rs.
To 8a|arce o/d 30 8y Faclory 0verread Corlro| A/c 30
To Faclory 0verread Corlro| A/c 3,080 8y 8a|arce c/d 3,080
3,110 3,110
Adm|n|strat|on 0verhead 8uspense Account
Rs. Rs.
To 8a|arce o/d 180 8y Adrr. 0verread Corlro| A/c 180
To Adr|r|slral|ve 0verread Corlro| A/c 850 8y 8a|arce c/d 850
1,030 1,030
8e|||ng 0verhead 6ontro| Account
Rs. Rs.
To 8a|arce o/d ,000 8y Cosl ol 3a|es A/c 5,500
____ 8y Cosl|rg Prol|l & Loss A/c 500
,000 ,000
6.19
6ap|ta| work |n Progress Account
Rs. Rs.
To 3lores Ledger Corlro| A/c 1,500 8y 8a|arce c/d 1,500
1,500 1,500
Rs. Rs.
To Cosl ol 3a|es A/c 1,01,500 8y 0er. Ledger Adj. A/c 1,18,800
To 3lores Ledger Corlro| A/c 150
To Faclory 0verread Corlro| A/c 5Z0
To 3e|||rg 0verread Corlro| A/c 500
To Adrr. 0verread Corlro| A/c 150
To 0er. Ledger Adj. A/c (Prol|l) 12,930 _______
1,18,800 1,18,800
Tr|a| a|ance
0r.{Rs.j 0r.{Rs.j
wor|-|r-Progress A/c 22,051
3lores Ledger Corlro| A/c 12,830
F|r|sred 0oods Corlro| A/c 11,2Z1
Faclory 0verread 3usperse A/c 3,080
Adrr. 0verread 3usperse A/c 850
Cap|la| wor| |r Progress A/c 1,500
0er. Ledger Adjuslrerl A/c _____ 51,585
51,585 51,585
0uest|on 14
Pass ourna| enrr|es |n rne cosr oooks, ma|nra|neo on non-|nregrareo s,srem, lor rne lo||ou|ng.
{|j lssue ol marer|a|s. 0|recr Rs. 5,50,000; lno|recr Rs. ',50,000
{||j /||ocar|on ol uages. 0|recr Rs. 2,00,000; lno|recr Rs. 40,000
{|||j unoer/Dver aosoroeo overneaos. Facror, {overj Rs. 20,000;
/om|n|srrar|on {unoerj Rs. '0,000
{hov, 2000, 6 marksj
Cost Accounting
6.20
Answer
Journa| Entr|es |n 6ost ooks
Ha|nta|ned on non-|ntegrated system
Rs. Rs.
(|) wor|-|r-Progress Ledger Corlro| A/c 0r. 5,50,000
Faclory 0verread Corlro| A/c 0r. 1,50,000
To 3lores Ledger Corlro| A/c Z,00,000
{3e|ng |ssue ol marer|a|sj
(||) wor|-|r Progress Ledger Corlro| A/c 0r. 2,00,000
Faclory 0verread corlro| A/c 0r. 10,000
To wages Corlro| A/c 2,10,000
{3e|ng a||ocar|on ol uages ano sa|ar|esj
(|||) Faclory 0verread Corlro| A/c 0r. 20,000
To Cosl|rg Prol|l & Loss A/c 20,000
{3e|ng rransler ol over aosorpr|on ol overneaoj
Cosl|rg Prol|l & Loss A/c 0r. 10,000
To Adr|r|slral|or 0verread Corlro| A/c 10,000
{3e|ng rransler ol unoer aosorpr|on ol overneaoj
0uest|on 15
/ compan, operares on n|sror|c oo cosr accounr|ng s,srem, un|cn |s nor |nregrareo u|rn
l|nanc|a| accounrs. /r rne oeg|nn|ng ol a monrn, rne open|ng oa|ances |n cosr |eoger uere.
Rs. {|n |aknsj
$rores leoger 0onrro| /ccounr 80
work-|n-Progress 0onrro| /ccounr 20
F|n|sneo Sooos 0onrro| /ccounr 4J0
3u||o|ng 0onsrrucr|on /ccounr '0
0osr leoger 0onrro| /ccounr 540
0ur|ng rne monrn, rne lo||ou|ng rransacr|ons rook p|ace.
Varer|a| Purcnaseo 40
lssueo ro prooucr|on 50
lssueo ro genera| ma|nrenance 6
lssueo ro ou||o|ng consrrucr|on 4
wages Sross uages pa|o '50
lno|recr uages 40
6.21
For ou||o|ng consrrucr|on '0
works Dverneaos /crua| amounr |ncurreo {exc|uo|ng |rems snoun
aoovej
'60
/osoroeo |n ou||o|ng consrrucr|on 20
unoer aosoroeo 8
Ra,a|r, pa|o
$e|||ng, o|srr|our|on ano
aom|n|srrar|on overneaos
sa|es
/r rne eno ol rne monrn, rne srock ol rau marer|a| ano uork-|n-progress uas Rs. 55 |akns
Rs. 25 |akns respecr|ve|,. Tne |oss ar|s|ng |n rne rau marer|a| accounr |s rreareo as lacror,
overneao. Tne ou||o|ng unoer consrrucr|on uas comp|ereo our|ng rne monrn. 0ompan,s gross
prol|r marg|n |s 20/ on sa|es.
Prepare rne re|evanr conrro| accounrs ro recoro rne aoove rransacr|ons |n rne cosr |eoger ol
compan,. {Va,, '996, '6 marksj
Answer
6ost Ledger 6ontro| A|c
{Rs. ln |aknsj
0r. 0r.
Rs. Rs.
To Cosl|rg P & L A/c 150 8y 8a|arce o/d 510
To 3lores Ledger Corlro| A/c 55 8y 3lores Ledger Corlro| A/c 10
To wlP Corlro| A/c 25 8y wages Corlro| A/c 150
To 8u||d|rg Corsl. A/c 11 8y wor|s 0verread Corlro| A/c 10
To F|r|sred 0oods Corlro| A/c 103 8y Roya|ly A/c 5
8y 3e|||rg 0|slr|oul|or ard
Adr|r|slral|or 0verreads A/c 25
___ 8y Cosl|rg Prol|l & Loss A/c 5Z
9ZZ 9ZZ
8tores Ledger 6ontro| A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 80 8y wlP Corlro| A/c 50
To Cosl Ledger Corlro| A/c 10 8y wor|s 0verread Corlro| A/c
8y 8u||d|rg Corsl. A/c 1
Cost Accounting
6.22
8y C|os|rg 8a|arce 55
8y wor| 0verread Corlro| A/c 5
___ (Loss) ___
120 120
work-|n-Progress 6ontro| A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 20 8y F|r|sred 0oods Corlro| A/c 333
To 3lores Ledger Corlro| A/c 50 8y C|os|rg 8a|arce 25
To wage Corlro| A/c 100
To wor|s 0verread Corlro| A/c 183
To Roya|ly A/c 5 ___
358 358
F|n|shed Coods 6ontro| A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 130 8y Cosl ol 0oods 3o|d A/c 30
{Reler work|ng horej
To wlP Corlro| A/c 333 8y 8a|arce 103
Z3 Z3
6ost of 8a|es A|c
0r. 0r.
Rs. Rs.
To Cosl ol 0oods 3o|d A/c 30 8y Cosl|rg P & L A/c 385
To 3e|||rg, 0|slr|oul|or 25
ard Adr|r|slral|or 0verreads A/c ___ ___
385 385
6ost|ng P & L A|c
0r. 0r.
Rs. Rs.
To Cosl ol 3a|es A/c 385 8y Cosl Ledger Corlro| A/c 150
To wor|s 0verread Corlro| A/c 8
To Cosl Ledger Corlro| A/c 5Z
(Prol|l) ___ ___
150 150
6.23
u||d|ng 6onstruct|on A|c
0r. 0r.
Rs.
To 8a|arce o/d 10 8y Cosl Ledger Corlro| A/c 11
To wage Corlro| A/c 10
To wor|s 0verread Corlro| A/c 20 __
11 11
works 0verhead 6ontro| A|c
0r. 0r.
Rs. Rs.
To 3lores Ledger Corlro| A/c 8y 8u||d|rg Corslrucl|or A/c 20
To wage Corlro| A/c 10 8y wlP Corlro| A/c 183
To Cosl Ledger Corlro| A/c 10 8y 8a|arce (Cosl|rg P & L A/c) 8
To 3lores Ledger Corlro| A/c (Loss) 5 ___
211 211
wages 6ontro| A|c
0r. 0r.
Rs. Rs.
To Cosl Ledger Corlro| A/c 150 8y wor|s 0verread Corlro| A/c 10
8y 8u||d|rg Corsl. A/c 10
___ 8y wlP Corlro| A/c 100
150 150
Roya|ty A|c
0r. 0r.
Rs Rs.
To Cosl Ledger Corlro| A/c 5 8y wlP Corlro| A/c 5
5 5
6ost of Coods 8o|d A|c
0r. 0r.
Rs. Rs.
To F|r|sred 0oods Corlro| A/c 30 8y Cosl ol 3a|es A/c 30
30 30
Cost Accounting
6.24
8e|||ng, 0|str|but|on and Adm|n|strat|on 0verheads A|c
0r. 0r.
Rs. Rs.
To Cosl Ledger Corlro| A/c 25 8y Cosl ol 3a|es A/c 25
25 25
Tr|a| a|ance
Rs. ln {|aknsj
0r. 0r.
To wlP Corlro| A/c 25
To F|r|sred 0oods Corlro| A/c 103
To Cosl Ledger Adjuslrerl A/c ___ 183
183 183
work|ng Note
ll 3.P. |s Rs. 100 lrer C.P. = Rs. 80
ll 3.P. |s Rs. 150 lrer C.P. =
100
80
. Rs Rs. 150 = 30 |a|rs.
0uest|on 1
/ 0ompan, operares separare cosr accounr|ng ano l|nanc|a| accounr|ng s,srems. Tne
lo||ou|ng |s rne ||sr ol Dpen|ng oa|ances as on '.04.200' |n rne 0osr leoger.
0eo|r 0reo|r
Rs. Rs.
$rores leoger 0onrro| /ccounr 5J,J75 --
wlP 0onrro| /ccounr ',04,595 --
F|n|sneo Sooos 0onrro| /ccounr J0,780 --
Senera| leoger /ousrmenr /ccounr ',88,750
Transacr|ons lor rne quarrer enoeo J0.06.200' are as unoer.
Rs.
Varer|a|s purcnaseo 26,700
Varer|a|s |ssueo ro prooucr|on 40,000
Varer|a|s |ssueo lor lacror, repa|rs 900
Facror, uages pa|o {|nc|uo|ng |no|recr uages Rs. 2J,000j 77,500
Prooucr|on overneaos |ncurreo 95,200
Prooucr|on overneaos unoer-aosoroeo ano ur|rren-oll J,200
$a|es 2,56,000
6.25
Tne 0ompan,s gross prol|r |s 25/ on Facror, 0osr. /r rne eno ol rne quarrer, wlP srocks
|ncreaseo o, Rs. 7,500.
Prepare rne re|evanr 0onrro| /ccounrs, 0osr|ng Prol|r ano loss /ccounr ano Senera| leoger
/ousrmenr /ccounr ro recoro rne aoove rransacr|ons lor rne quarrer enoeo J0.06.200'.
{hov, 200', '0 marksj
Answer
Cenera| Ledger Adj. A|c
0r. 0r.
Parr|cu|ars Rs. Parr|cu|ars Rs.
To 3a|es 2,5,000 8y 8a|arce o/d 1,88,Z50
To 8a|arce c/d 1,80,150 8y 3lores |edger corlro| A/c 2,Z00
8y wages corlro| A/c ZZ,500
8y 0verreads corlro| A/c 95,200
_______ 8y Cosl|rg Prol|l & Loss A/c 18,000
1,3,150 1,3,150
8tores |edger contro| A|c
0r. 0r.
To 8a|arce o/d 53,3Z5 8y wlP corlro| A/c 10,000
To 0erera| |edger adj. A/c 2,Z00 8y Faclory overread corlro| A/c 900
_____ 8y 8a|arce c/d 39,1Z5
80,0Z5 80,0Z5
w|P contro| A|c
0r. 0r.
To 8a|arce o/d 1,01,595 8y F|r|sred goods corlro| A/c 2,02,900
To 3lores |edger corlro| A/c 10,000 8y 8a|arce c/d 1,12,095
To wages corlro| A/c 51,500
To Faclory, 0/l corlro| A/c 1,15,900 _______
3,11,995 3,11,995
Cost Accounting
6.26
F|n|shed goods contro| A|c
0r. 0r.
To 8a|arce o/d 30,Z80 8y Cosl ol sa|es A/c 2,01,800
{Reler ro norej
To wlP corlro| A/c 2,02,900 8y 8a|arce c/d 28,880
2,33,80 2,33,80
Note:
Sross prol|r |s 25/ ol Facror, cosr or 20/ on sa|es.
lence cosr ol sa|es = Rs. 2,56,000 - 20/ ol Rs. 2,56,000 = Rs. 2,04,800
Factory overhead contro| A|c
0r. 0r.
To 3lores |edger corlro| A/c 900 8y Cosl|rg & prol|l |oss A/c 3,200
To wages corlro| A/c 23,000 8y wlP corlro| A/c 1,15,900
To 0erera| |edger adj. A/c 95,200 _______
1,19,100 1,19,100
6ost of sa|es A|c
0r. 0r.
To F|r|sred goods corlro| A/c 2,01,800 8y Cosl|rg Prol|l & Loss A/c 2,01,800
8a|es A|c
0r. 0r.
To Cosl|rg Prol|l & Loss A/c 2,5,000 8y 0LA A/c 2,5,000
wages contro| A|c
0r. 0r.
To 0erera| |edger adj. A/c ZZ,500 8y Faclory overread corlro| A/c 23,000
_____ 8y wlP corlro| A/c 51,500
ZZ,500 ZZ,500
6.27
6ost|ng Prof|t & Loss A|c
0r. 0r.
To Faclory 0 l Corlro| A/c 3,200 8y 3a|es A/c 2,5,000
To Cosl ol sa|es A/c 2,01,800
To 0erera| |edger adj. A/c 18,000
(Prol|l) _______ _______
2,5,000 2,5,000
Tr|a| a|ance (as on 30..2001}
0r. 0r.
Rs. Rs.
3lores |edger corlro| A/c 39,1Z5
wlP corlro| A/c 1,12,095
F|r|sred goods corlro| A/c 28,880
To 0erera| |edger adjuslrerl A/c ______ 1,80,150
1,80,150 1,80,150
0uest|on 17
/ l|re oesrro,eo some accounr|ng recoros ol a compan,. You nave oeen ao|e ro co||ecr
rne lo||ou|ng lrom rne spo||r papers/recoros ano as a resu|r ol consu|rar|on u|rn accounr|ng
srall |n respecr ol Januar, '997.
{|j lncomp|ere leoger Enrr|es.
Rau-Varer|a|s //c
Rs. Rs.
3eg|nn|ng lnvenror, J2,000
work-|n-Progress //c
Rs. Rs.
3eg|nn|ng lnvenror, 9,200 F|n|sneo $rock ',5',000
0reo|rors //c
Rs. Rs.
Dpen|ng 3a|ance '6,400
0|os|ng 3a|ance '6,200
Vanulacrur|ng Dverneaos //c
Rs. Rs.
/mounr $penr 29,600
Cost Accounting
6.28
F|n|sneo Sooos //c
Rs. Rs.
Dpen|ng lnvenror, 24,000
0|os|ng lnvenror, J0,000
{||j /oo|r|ona| lnlormar|on.
{'j Tne casn-oook snoueo rnar Rs. 89,200 nave oeen pa|o ro creo|rors lor rau-marer|a|.
{2j Eno|ng |nvenror, ol uork-|n-progress |nc|uoeo marer|a| Rs. 5,000 on un|cn J00 o|recr
|aoour nours nave oeen oookeo aga|nsr uages ano overneaos.
{Jj Tne oo caro snoueo rnar uorkers nave uorkeo lor 7,000 nours. Tne uage rare |s Rs. '0
per |aoour nour.
{4j Dverneao recover, rare uas Rs. 4 per o|recr |aoour nour.
You are requ|reo ro comp|ere rne aoove accounrs |n rne cosr |eoger ol rne compan,.
{Va,, '997, '2 marksj
Answer
6red|tors A|c
0r. 0r.
Rs. Rs.
To Casr & 8ar| (l) 89,200 8y 8a|arce o/d 1,100
To 8a|arce c/d 19,200 8y Purcrases 92,000
_______ {3a|anc|ng l|gurej _______
1,08,100 1,08,100
work-|n-progress A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 9,200 8y F|r|sred sloc| 1,51,000
To RaW-raler|a|s 53,000 8y 8a|arce c/d
(8a|arc|rg l|gure) Valer|a| (2): Rs.5,000
To wages (3) Z0,000 Laoour (2): Rs. 3,000 9,200
(Z,000 rrs. x Rs. 10) (300 rrs. x 1 rrs)
To 0verreads (1) 28,000 0verreads (2) 1,200
(Z,000 rrs. x Rs.1) (300 rrs. x Rs.1)
_______ _______
1,0,200 1,0,200
6.29
Raw-mater|a|s A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 32,000 8y wor|-|r-progress 53,000
To Purcrase 92,000 {/s aoovej
(As aoove) _______ 8y 8a|arce c/d Z1,000
1,21,000 1,21,000
F|n|shed Coods A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 21,000 8y Cosl ol sa|es 1,15,000
{3a|anc|ng l|gurej
To w.l.P. 1,51,000 8y 8a|arce c/d 30,000
(As aoove) _______ ______
1,Z5,000 1,Z5,000
Hanufactur|ng 0verheads A|c
0r. 0r.
Rs. Rs.
To 3urdr|es 29,00 8y w.l.P. 28,000
(Z000 x Rs.1)
8y urder-aosoroed
_____ 0verreads A/c 1,00
29,00 29,00
0uest|on 18
3PR l|m|reo keeps oooks on |nregrareo accounr|ng s,srem. Tne lo||ou|ng oa|ances
appear |n rne oooks as on /pr|| ',2002.
0r. {Rs.j 0r. {Rs.j
$rores 0onrro| //c 40,950 -
work-|n-progress //c J8,675 -
F|n|sneo Sooos //c 52,J25 -
3ank //c - 22,750
0reo|rors //c '8,200
F|xeo /ssers //c ',47,875 -
0eorors //c 27,J00 -
$nare 0ap|ra| //c - ',82,000
Cost Accounting
6.30
Prov|s|on lor 0eprec|ar|on //c - '',J75
Prov|s|on lor 0ouorlu| 0eors //c - J,725
Facror, Dverneaos Dursrano|ng //c - 6,250
Pre-Pa|o /om|n|srrar|on Dverneaos //c 9,975 -
Prol|r & loss //c - 72,800
J,'7,'00 J,'7,'00
Tne rransacr|ons lor rne ,ear enoeo Varcn J',200J, uere as g|ven oe|ou.
Rs. Rs.
0|recr wages ',97,925 --
lno|recr wages '',J75 2,09,J00
Purcnase ol marer|a|s {on creo|rj 2,27,500
Varer|a|s |ssueo ro prooucr|on 2,50,250
Varer|a| |ssueo lor repa|rs 4,550
Sooos l|n|sneo our|ng rne ,ear {ar cosrj 4,89,'25
0reo|r $a|es 6,82,500
0osr ol Sooos so|o 5,00,500
Prooucr|on overneaos aosoroeo ',09,200
Prooucr|on overneaos pa|o our|ng rne ,ear 9',000
Prooucr|on overneaos oursrano|ng ar rne eno ol ,ear 7,775
/om|n|srrar|on overneaos pa|o our|ng rne ,ear 27,J00
$e|||ng overneaos |ncurreo J',850
Pa,menr ro 0reo|rors 2,29,775
Pa,menr rece|veo lrom 0eorors 6,59,750
0eprec|ar|on ol Vacn|ner, '4,789
/om|n|srrar|on overneaos oursrano|ng ar rne eno ol ,ear 2,225
Prov|s|on lor oouorlu| oeors ar rne eno ol rne ,ear 4,590
Requ|reo.
wr|re up accounrs |n rne |nregrareo |eoger ol 3PR l|m|reo ano prepare a Tr|a| oa|ance.
{hov, 200J, '0 marksj
6.31
Answer
8tores 6ontro| A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 10,950 8y wlP A/c 2,50,250
To Cred|lors A/c 2,2Z,500 8y Producl|or overreads A/c 1,550
_______ 8y 8a|arce c/d 13,50
2,8,150 2,8,150
wages 6ontro| A|c
0r. 0r.
Rs. Rs.
To 8ar| 1,9Z,925 8y wor|-|r-Progress A/c 1,9Z,925
To 8ar| 11,3Z5 8y Producl|or overreads A/c 11,3Z5
2,09,300 2,09,300
work-|n-Progress A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 38,Z5 8y F|r|sr goods A/c 1,89,125
To wages corlro| A/c 1,9Z,925 8y 8a|arce c/d 1,0,925
To 3lores corlro| A/c 2,50,250
To Producl|or overreads A/c 1,09,200 _______
5,9,050 5,9,050
Product|on 0verheads A|c
0r. 0r.
Rs. Rs.
To wages corlro| A/c 11,3Z5 8y wlP A/c 1,09,200
To 3lores corlro| A/c 1,550 8y Prol|l & Loss A/c 11,039
To 8ar| 81,Z50 (urder-aosoroed overreads
(91,000 - ,250) wr|ller oll)
To Producl|or overreads Z,ZZ5
oulslard|rg
To Prov|s|or lor deprec|al|or 11,Z89 _______
1,23,239 1,23,239
Cost Accounting
6.32
F|n|shed goods A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 52,325 8y Cosl ol sa|es A/c 5,00,500
To wor|-|r-progress A/c 1,89,125 8y 8a|arce c/d 80,150
To Adrr. 0verreads A/c 39,500 _______
5,80,950 5,80,950
Adm|n|strat|on overheads A|c
0r. 0r.
Rs. Rs.
To Pre-pa|d adrr. 0verreads A/c 9,9Z5 8y F|r|sred goods A/c 39,500
To 8ar| 2Z,300
To Adrr. 0vrerreads oulslard|rg 2,225 _____
39,500 39,500
6ost of 8a|es A|c
0r. 0r.
Rs. Rs.
To F|r|sred goods A/c 5,00,500 To 3a|es A/c 5,32,350
To 3e|||rg overreads 31,850 ______
5,32,350 5,32,350
8a|es A|c
0r. 0r.
Rs. Rs.
To Cosl ol sa|es A/c 5,32,350 8y 0eolors A/c ,82,500
To Prol|l & Loss A/c 1,50,150 ______
,82,500 ,82,500
Factory overheads | Product|on 0verheads 0utstand|ng A|c
0r. 0r.
Rs. Rs.
To 8ar| ,250 8y 8a|arce o/d ,250
To 8a|arce c/d Z,ZZ5 8y Producl|or overreads Z,ZZ5
11,025 11,025
6.33
Prepa|d Adm|n|strat|on overheads A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 9,9Z5 8y Adrr. 0verreads A/c 9,9Z5
9,9Z5 9,9Z5
Prov|s|on for deprec|at|on A|c
0r. 0r.
Rs. Rs.
To 8a|arce c/d 2,11 8y 8a|arce o/d 11,3Z5
______ 8y Producl|or overreads A/c 11,Z89
2,11 2,11
Prov|s|on for doubtfu| debts A|c
0r. 0r.
Rs. Rs.
To 8a|arce c/d 1,590 8y 8a|arce o/d 3,Z25
_____ 8y Prol|l & Loss A/c 85
1,590 1,590
Prof|t & Loss A|c
0r. 0r.
Rs. Rs.
To Prov|s|or lor douollu| deols 85 8y 8a|arce o/d Z2,800
To Producl|or overreads 11,039 8y 3a|es A/c 1,50,150
To 8a|arce c/d 2,08,01 ______
2,22,950 2,22,950
0ebtors A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 2Z,300 8y 8ar| A/c ,59,Z50
To 3a|es A/c ,82,500 8y 8a|arce c/d 50,050
Z,09,800 Z,09,800
6red|tors A|c
0r. 0r.
Rs. Rs.
To 8ar| 2,29,ZZ5 8y 8a|arce o/d 18,200
To 8a|arce c/d 15,925 8y 3lores corlro|/Ac 2,2Z,500
2,15,Z00 2,15,Z00
Cost Accounting
6.34
F|xed Assets A|c
0r. 0r.
Rs. Rs.
1,1Z,8Z5 8y oa|arce c/d 1,1Z,8Z5
ank A|c
0r. 0r.
Rs. Rs.
To 0eolors ,59,Z50 8y 8a|arce o/d 22,Z50
8y 0|recl Wages 1,9Z,925
8y lrd|recl Wages 11,3Z5
8y Producl|or overreads 91,000
(Rs. 81,Z50 Rs.,250)
8y Adrr. 0verreads A/c 2Z,300
8y 3e|||rg overreads A/c 31,850
8y Cred|lors A/c 2,29,ZZ5
_______ 8y 8a|arce c/d 1Z,ZZ5
,59,Z50 ,59,Z50
Tr|a| a|ance
As on Harch 31, 2003
0r. 0r.
Rs. Rs.
3lores corlro| A/c 13,50
wor| |r Progress A/c 1,0,925
F|r|sred goods A/c 80,150
8ar| A/c 1Z,ZZ5
Cred|lors A/c 15,925
F|xed Assels A/c 1,1Z,8Z5
0eolors A/c 50,050
3rare cap|la| A/c 1,82,000
Prov|s|or lor deprec|al|or A/c 2,11
Prol|l & Loss A/c 2,08,01
Producl|or overreads oulslard|rg A/c Z,ZZ5
0ulslard|rg adr|r|slral|ve overreads A/c 2,225
Prov|s|or lor douollu| deol ______ 1,590
1,1,Z25 1,1,Z25
6.35
0uest|on 19
ln rne aosence ol rne 0n|el /ccounranr, ,ou nave oeen askeo ro prepare a monrns cosr
accounrs lor a compan, un|cn operares a oarcn cosr|ng s,srem lu||, |nregrareo u|rn rne
l|nanc|a| accounrs. Tne lo||ou|ng re|evanr |nlormar|on |s prov|oeo ro ,ou.
Rs. Rs.
3a|ances ar rne oeg|nn|ng ol rne monrn.
$rores leoger conrro| accounr 25,000
work |n progress conrro| accounr 20,000
F|n|sneo gooos conrro| accounr J5,000
Prepa|o Prooucr|on overneaos orougnr
loruaro lrom prev|ous monrn J,000
Transacr|ons our|ng rne monrn.
Varer|a|s purcnaseo 75,000
Varer|a| |ssueo
To Prooucr|on J0,000
To Facror, Va|nrenance 4,000 J4,000
Varer|a|s rranslerreo oerueen oarcnes
Tora| uages pa|o.
To 0|recr uorkers 25,000
To lno|recr uorkers 5,000 J0,000
0|recr uages cnargeo ro oarcnes 20,000
Recoroeo non-prooucr|ve r|me ol o|recr uorkers 5,000
$e|||ng ano o|srr|our|on overneaos |ncurreo 6,000
Drner Prooucr|on Dverneaos lncurreo '2,000
$a|es ',00,000
0osr ol F|n|sneo Sooos $o|o 80,000
0osr ol Sooos comp|ereo ano rranslerreo |nro l|n|sneo gooos our|ng rne monrn 65,000
Pn,s|ca| va|ue ol uork |n progress ar rne eno ol rne monrn 40,000
Tne prooucr|on overneao aosorpr|on rare |s '50/ ol o|recr uages cnargeo ro
uork |n progress
Requ|reo.
Prepare rne lo||ou|ng accounrs lor rne monrn.
{aj $rores leoger 0onrro| /ccounr.
{oj work |n Progress 0onrro| /ccounr.
{cj F|n|sneo Sooos 0onrro| /ccounr.
{oj Prooucr|on Dverneao 0onrro| /ccounr.
{ej Prol|r ano loss /ccounr.
Cost Accounting
6.36
Answer
(a} 8tores Ledger 6ontro| Account
Rs. Rs.
To 8a|arce o/d 25,000 8y wor| |r progress
To Cred|lors (or oar|) Z5,000 Corlro| A/c 30,000
Corlro| A/c 1,000
______ 8y 8a|arce c/d ,000
1,00,000 1,00,000
(b} work-|n Progress 6ontro| Account
Rs. Rs.
To 8a|arce o/d 20,000 8y F|r|sred 0oods 5,000
To 3lore Ledger Corlro| A/c 30,000 Corlro| A/c
To wages Corlro| A/c 20,000 8y 8a|arce c/d 10,000
To Producl|or 0verread {Pn,s|ca| va|uej
Corlro| A/c 30,000
{'50/ ol o|recr uagesj
To Prol|l & Loss A/c 5,000
{$rock Sa|nsj ______ ______
1,05,000 1,05,000
(c} F|n|shed Coods 6ontro| Account
Rs. Rs.
To 8a|arce o/d 35,000 8y Cosl ol 0oods A/c 80,000
To wor| |r progress Corlro| A/c 5,000 or
8y Prol|l & Loss A/c
______ 8y 8a|arce c/d 20,000
1,00,000 1,00,000
(d} Product|on 0verhead 6ontro| Account
Rs. Rs.
To 8a|arce o/d (Prepa|d arourl) 3,000 8y wor|-|r-Progress
To 3lores Ledger Corlro| A/c 1,000 Corlro| A/c 30,000
To wages Corlro| A/c {'50/ ol o|recr uagesj
0|recl wor|ers 5,000
lrd|recl wor|ers 5,000 10,000
To 8ar| 12,000
To Prol|l & Loss A/c 1,000
{Dver aosorpr|on, oa|anc|ng l|gurej ______ ______
30,000 30,000
6.37
A|lerral|ve|y lre over aosoroed overread ray oe carr|ed lorWard.
(e} Prof|t & Loss Account
Rs. Rs.
To F|r|sred goods 8y 3a|es A/c 1,00,000
Corlro| A/c 8y Producl|or 0verread
or Corlro| A/c 1,000
Cosl ol goods so|d A/c 80,000 8y wor|-|r-progress
To 3e|||rg & 0|slr|oul|or ,000 Corlro| A/c (3loc| ga|r) 5,000
0verreads A/c
To 8a|arce c/d 20,000 ______
1,0,000 1,0,000
Notes
(1) Valer|a|s lrarslerred oelWeer oalcres W||| rol allecl lre Corlro| Accourls.
(2) Nor-producl|or l|re ol d|recl Wor|ers |s a producl|or overread ard lrerelore W||| rol oe
crarged lo Wor| |r progress corlro| A/c.
(3) Producl|or overreads aosoroed |r wor| |r Progress Corlro| A/c W||| lrer equa| Rs.
30,000 (150 ol Rs. 20,000).
(1) lr lre wor| |r Progress Corlro| A/c lre excess prys|ca| va|ue ol sloc| |s la|er resu|l|rg
|r sloc| ga|r. 3loc| ga|r |s lrarslerred lo Prol|l & Loss A/c.
0uest|on 20
Dn J'
sr
Varcn, '989 rne lo||ou|ng oa|ances uere exrracreo lrom rne oooks ol rne $upreme
Vanulacrur|ng 0ompan,.
0r. 0r.
Rs. Rs.
$rores leoger 0onrro| //c J5,000
work |n Progress 0onrro| //c J8,000
F|n|sneo Sooos 0onrro| //c 25,000
0osr leoger 0onrro| //c _____ 98,000
98,000 98,000
Tne lo||ou|ng rransacr|ons rook p|ace |n /pr|| '989
Rs.
Rau Varer|a|s
Purcnaseo 95,000
Rerurneo ro supp||ers J,000
lssueo ro prooucr|on 98,000
Rerurneo ro srores J,000
Prooucr|ve uages 40,000
Cost Accounting
6.38
lno|recr |aoour 25,000
Facror, overneao expenses |ncurreo 50,000
$e|||ng ano /om|n|srrar|ve expenses 40,000
0osr ol l|n|sneo gooos rranslerreo ro uarenouse 2,'J,000
0osr ol Sooos so|o 2,'0,000
$a|es J,00,000
Facror, overneaos are app||eo ro prooucr|on ar '50/ ol o|recr uages, an, unoer/over
aosoroeo overneao oe|ng carr|eo loruaro lor aousrmenr |n rne suosequenr monrns. /||
aom|n|srrar|ve ano se|||ng expenses are rreareo as per|oo cosrs ano cnargeo oll ro rne Prol|r
ano loss /ccounr ol rne monrn |n un|cn rne, are |ncurreo.
$nou rne lo||ou|ng /ccounrs.
{aj 0osr leoger 0onrro| //c
{oj $rores leoger 0onrro| //c
{cj work |n Progress 0onrro| //c
{oj F|n|sneo gooos srock conrro| //c
{ej Facror, overneao conrro| //c
{lj 0osr|ng Prol|r ano loss //c
{gj Tr|a| 3a|ance as ar J0
rn
/pr||, '989
Answer
(a} 6ost Ledger 6ontro| A|c
0r. 0r.
Rs. Rs.
To Cosl|rg Prol|l & 3,00,000 8y 8a|arce o/d 98,000
Loss A/c (3a|es) 8y 3lores Ledger Corlro| A/c 95,000
To 3lores Ledger 3,000 8y wage Corlro| A/c 5,000
Corlro| A/c (Producl|ve Wages lrd|recl Wages)
To 8a|arce c/d 95,000 8y Faclory 0verread Corlro| A/c 50,000
8y 3e|||rg & Adrr. 0verread Experses 10,000
8y Cosl|rg, Prol|l & Loss A/c 50,000
_______ _______
3,98,000 3,98,000
6.39
(b} 8tores Ledger 6ontro| A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 35,000 8y Cosl Ledger Corlro| A/c 3,000
To Cosl Ledger Corlro| A/c 95,000 8y wor| |r Progress Corlro| A/c 98,000
To wor| |r Progress Corlro| A/c 3,000 8y 8a|arce c/d 32,000
1,33,000 1,33,000
(c} work-|n-Progress 6ontro| A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 38,000 8y 3lores Ledger Corlro| A/c 3,000
To 3lores Ledger Corlro| A/c 98,000 8y F|r|sred 0oods A/c 2,13,000
To wages Corlro| A/c 10,000 8y 8a|arce c/d 20,000
To Faclory 0verread Corlro| A/c 0,000 ______
2,3,000 2,3,000
(d} F|n|shed Coods 6ontro| A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 25,000 8y Cosl ol goods so|d A/c 2,10,000
To wor| |r Progress Corlro| A/c 2,13,000 8y 8a|arce c/d 28,000
_______ ______
2,38,000 2,38,000
(e} Factory 0verhead 6ontro| A|c
0r. 0r.
Rs. Rs.
To wage Corlro| A/c 25,000 8y wor| |r progress Corlro| A/c 0,000
{lnreresr laoourj 8y 8a|arce c/d 15,000
To Cosl Ledger Corlro| A/c 50,000 _____
Z5,000 Z5,000
Cost Accounting
6.40
(f} 6ost|ng Prof|t and Loss A|c
0r. 0r.
Rs. Rs.
To Cosl ol goods so|d A/c 2,10,000 8y Cosl Ledger Corlro| A/c 3,00,000
To 3e|||rg ard Adrr. 10,000 {$a|esj
0verread A/c
To Cosl Ledger Corlro| A/c 50,000
{0osr|ng prol|rj _______ ______
3,00,000 3,00,000
(g} Tr|a| a|ance (as at 30
th
Apr||, 1989}
0r. 0r.
Rs. Rs.
To 3lores Ledger Corlro| A/c 32,000
To wor|-|r-Progress Corlro| A/c 20,000
To F|r|sred 0oods Corlro| A/c 28,000
To Faclory 0verread Corlro| A/c 15,000
To Cosl Ledger Corlro| A/c ______ 95,000
95,000 95,000
work|ng Notes :
(1) wage 6ontro| A|c
0r. 0r.
Rs. Rs.
To Cosl Ledger Corlro| A/c 5,000 8y wor|-|r-Progress Corlro| A/c 10,000
______ 8y Faclory overread Corlro| A/c 25,000
5,000 5,000
(2) 8e|||ng & Adm|n|strat|on Expenses A|c
0r. 0r.
Rs. Rs.
To Cosl Ledger Corlro| A/c 10,000 8y Cosl|rg Prol|l & Loss A/c 10,000
10,000 10,000
(3) 6ost of Coods 8o|d A|c
0r. 0r.
Rs. Rs.
To F|r|sred 0oods Corlro| A/c 2,10,000 8y Cosl|rg Prol|l & Loss A/c 2,10,000
2,10,000 2,10,000
6.41
0uest|on 21
0urra Enrerpr|ses operares an |nregra| s,srem ol accounr| ng. You are requ|reo ro pass
rne Journa| Enrr|es lor rne lo||ou|ng rransacr|ons rnar rook p|ace lor rne ,ear enoeo J0-6-'990.
{harrar|ons are nor requ|reoj
Rs.
Rau Varer|a|s Purcnaseo {50/ on 0reo|rj 6,00,000
Varer|a|s lssueo ro Prooucr|on 4,00,000
wages Pa|o {50/ 0|recrj 2,00,000
wages 0nargeo ro Prooucr|on ',00,000
Facror, Dverneaos lncurreo 80,000
Facror, Dverneaos 0nargeo ro Prooucr|on ',00,000
$e|||ng ano 0|srr|our|on overneaos lncurreo 40,000
F|n|sneo Sooos ar 0osr 5,00,000
$a|es {50/ 0reo|rj 7,50,000
0|os|ng $rock h||
Rece|prs lrom 0eorors 2,00,000
Pa,menrs ro 0reo|rors 2,00,000
Answer
Journa| Entr|es under |ntegra| system
of account|ng for transact|ons tak|ng p|ace for the year ended on 30--1990
0r. 0r.
Rs. Rs.
3lores Ledger Accourl 0r. ,00,000
To 3urday Cred|lors Accourl 3,30,000
To Casr or 8ar| Accourl 3,00,000
wor|-|r-Progress Corlro| Accourl 0r. 1,00,000
To 3lores Ledger Corlro| Accourl 1,00,000
wages Corlro| Accourl 0r. 2,00,000
3e|||rg ard 0|slr|oul|or 0verreads Corlro| Accourl 0r. 10,000
To Casr or 8ar| Accourl 10,000
Cost Accounting
6.42
F|r|sred 3loc| Ledger Corlro| Accourl 0r. 5,00,000
To wor|-|r-Progress Corlro| Accourl 5,00,000
Cosl ol 3a|es Accourl 0r. 5,10,000
To F|r|sred 3loc| Ledger Corlro| Accourl 5,00,000
To 3e|||rg ard 0|slr|oul|or 0verreads Corlro| Accourl 10,000
3urdry 0eolors Accourl 0r. 3,Z5,000
Casr or 8ar| Accourl 0r. 3,Z5,000
To 3a|es Accourl Z,50,000
Casr or 8ar| Accourl 0r. 2,00,000
To 3urdry 0eolors Accourl 2,00,000
3urdry Cred|lors Accourl 0r. 2,00,000
To wages Corlro| Accourl 1,00,000
Faclory 0verreads Corlro| Accourl 0r. 1,00,000
To wages Corlro| Accourl 1,00,000
Faclory 0verreads Corlro| Accourl 0r. 80,000
To Casr or 8ar| Accourl 80,000
To Faclory 0verreads Corlro| Accourl 1,00,000
0uest|on 22
Tne lo||ou|ng oa|ances uere exrracreo lrom a compan,s |eoger as on J'
sr
0ecemoer '997.
Rs. Rs.
Rau marer|a|s conrro| //c 48,8J6
work-|n-progress conrro| //c '4,745
F|n|sneo srock conrro| //c 2',980
horma| |eoger conrro| //c ______ 85,56'
85,56' 85,56'
6.43
Furrner rransacr|on rook p|ace our|ng rne lo||ou|ng quarrer as lo||ous.
Rs.
Facror, overneao - a||ocareo ro wlP '',786
Sooos F|n|sneo - ar cosr J6,8J4
Rau marer|a|s purcnaseo 22,422
0|recr uages - a||ocareo ro wlP '8,J70
0osr ol gooos so|o 42,000
Rau marer|a|s - |ssueo ro prooucr|on '7,000
Rau marer|a|s - creo|reo o, supp||ers ',000
lnvenror, auo|r - rau marer|a| |osses ',J00
wlP reecreo {u|rn no scrap va|uej ',800
0usromers rerurns {ar cosrj ol l|n|sneo gooos J,000
Prepare a|| rne leoger /ccounrs |n 0osr leoger, {hov, '998, 8 marksj
Answer
Raw mater|a|s contro| A|c
0r. 0r.
Parr|cu|ars /mounr Parr|cu|ars /mounr
Rs. Rs.
To 8a|arce o/d 18,83 8y w.l.P. corlro| A/c 1Z,000
To Norra| |edger corlro| A/c 22,122 8y Norra| |edger corlro| A/c 1,000
8y Norra| |edger corlro| A/c 1,300
_____ 8y 8a|arce c/d 51,958
Z1,258 Z1,258
To 8a|arce o/d 51,958
work-|n-progress contro| A|c
0r. 0r.
Rs.
To 8a|arce o/d 11,Z15 8y F|r|sred sloc| corlro| A/c 3,831
To Nor|ra| |edger corlro| A/c 11,Z8 8y Nor|ra| |edger corlro| A/c 1,800
To RaW raler|a| corlro| A/c 1Z,000 8y 8a|arce c/d 23,2Z
To Norra| |edger corlro| A/c 18,3Z0 _____
1,901 1,901
To 8a|arce o/d 23,2Z
Cost Accounting
6.44
F|n|shed stock contro| A|c
0r. 0r.
Rs. Rs.
To 8a|arce o/d 21,980 8y Nor|ra| |edger corlro| A/c 12,000
To w.l.P. Corlro| A/c 3,831 8y 8a|arce c/d 19,811
To Nor|ra| |edger corlro| A/c 3,000 _____
1,811 1,811
To 8a|arce o/d 19,811
Nom|na| |edger contro| a|c
0r. 0r.
Rs. Rs.
To RaW raler|a| corlro| A/c 1,000 8y 8a|arce o/d 85,51
To RaW raler|a| corlro| A/c 1,300 8y RaW raler|a| corlro| A/c 22,122
To F|r|sred sloc| corlro| A/c 12,000 8y w.l.P. corlro| A/c 11,Z8
To w.l.P. corlro| A/c 1,800 8y w.l.P corlro| A/c 18,3Z0
To 8a|arce c/d 95,039 8y F|r|sred sloc| corlro| A/c 3,000
1,11,139 1,11,139
8y 8a|arce c/d 95,039
0uest|on 23
Tne lo||ou|ng l|gures are exrracreo lrom rne F|nanc|a| /ccounrs ol $e||ue| lro. For rne
,ear enoeo J'-'2-'984.
Rs. Rs.
$a|es {20,000 un|rsj 50,00,000
Varer|a|s 20,00,000
wages '0,00,000
Facror, Dverneaos 9,00,000
/om|n|srrar|ve Dverneaos 5,20,000
$e|||ng ano 0|srr|our|on Dverneaos J,60,000
F|n|sneo Sooos {',2J0 un|rsj J,00,000
work-|n-progress.
6.45
Varer|a|s 60,000
laoour 40,000
Facror, Dverneaos 40,000
',40,000
Sooou||| wr|rren oll 4,00,000
lnreresr pa|o on cap|ra| 40,000
ln rne cosr|ng recoros, Facror, Dverneao |s cnargeo ar '00/ ol wages, /om|n|srrar|on
Dverneao '0/ lacror, cosr ano $e|||ng ano 0|srr|our|on Dverneao ar rne rare ol Rs. 20 per
un|r so|o.
Prepare a sraremenr reconc|||ng rne prol|r as per 0osr Recoros u|rn rne prol|r as per
F|nanc|a| Recoros.
Answer
8e||we| Ltd.
Prof|t & Loss Account
(For the year ended 31
st
0ecember, 1984}
0r. 0r.
To 0per|rg 3loc| N|| 8y 3a|es (20,000 ur|ls) 50,00,000
To Valer|a|s 20,000 8y C|os|rg 3loc| (1,230 ur|ls) 3,00,000
To wages 10,00,000 8y wor|-|r-progress 1,10,000
To Faclory 0verreads 9,00,000
To Adr|r|slral|ve 0verreads 5,20,000
To 3e|||rg & 0|slr|oul|or 0verreads 3,0,000
To 0oodW||| Wr|ller oll 1,00,000
To lrleresl or Cap|la| 10,000
To Nel Prol|l 2,20,000 ________
51,10,000 51,10,000
6ost Prof|t & Loss 8tatement
(For the year ended 31
st
0ecember, 1984}
Rs.
Valer|a|s 20,00,000
wages 10,00,000
Pr|rce Cosl 30,00,000
Cost Accounting
6.46
/oo. Faclory 0verread _ 100 ol Wages 10,00,000
10,00,000
less. C|os|rg wor|-|r-progress 1,10,000
Faclory Cosl (20,000 1,230) ur|ls 38,0,000
Adr|r|slral|ve 0verreads _ 10 ol Faclory Cosl 3,8,000
12,1,000
less. C|os|rg 3loc| ol F|r|sred 0oods
1,230 ur|ls {$ee horej
2,1,000
Cosl ol Producl|or (20,000 ur|ls) 10,00,000
3e|||rg & 0|slr|oul|or 0verread _ Rs. 20 per ur|l 1,00,000
Cosl ol 3a|es (20,000 ur|ls) 11,00,000
3a|es Reverue (20,000 ur|ls) 50,00,000
Prol|l ,00,000
Note: Cosl ol 21,230 ur|ls |s Rs. 12,1,000. Trerelore, lre cosl ol ore ur|l |s Rs. 200.
lerce lre cosl ol 1,230 ur|ls |s Rs. 2,1,000.
A|ternat|ve|y : Adr|r|slral|ve overreads cou|d oe exc|uded lror lre cosl ol producl|or.
Reconc|||at|on 8tatement
Rs. Rs.
Prol|l as per Cosl Records ,00,000
/oo. Faclory 0verreads over-aosoroed
(Rs. 10,00,000 - Rs. 9,00,000) 1,00,000
3e|||rg & 0|slr|oul|or 0verread 0ver-aosoroed -
(Rs. 1,00,000 - Rs. 3,0,000) 10,000
0|llererce |r lre va|ual|or ol c|os|rg sloc| ol l|r|sred goods
(Rs. 3,00,000 - Rs. 2,1,000) 51,000 1,91,000
Z,91,000
less. Adr|r|slral|ve 0verread urderaosoroed
(Rs. 5,20,000 - Rs. 3,8,000) 1,31,000
0oodW||| Wr|ller oll re|ales lo
F|rarc|a| Accourls 1,00,000
lrleresl or Cap|la| 10,000 5,Z1,000
Prol|l as per F|rarc|a| Accourls 2,20,000
6.47
0uest|on 24
Tne l|nanc|a| recoros ol Vooern Vanulacrurers lro. revea| rne lo||ou|ng lor rne ,ear enoeo J0-
6-'986.
Rs. |n rnousanos
Rs.
$a|es {20,000 un|rsj 4,000
Varer|a|s ',600
wages 800
Facror, Dverneaos 720
Dll|ce ano /om|n|srrar|ve Dverneaos 4'6
$e|||ng ano 0|srr|our|on Dverneaos 288
F|n|sneo Sooos {',2J0 un|rsj 240
work-|n-progress 48
laoour J2
Dverneaos {Facror,j J2 ''2
Sooou||| ur|rren oll J20
lnreresr on 0ap|ra| J2
ln rne 0osr|ng recoros, lacror, overneao |s cnargeo ar '00/ uages, aom|n|srrar|on
overneao '0/ ol lacror, cosr ano se|||ng ano o|srr|our|on overneao ar rne rare ol Rs. '6 per
un|r so|o.
Prepare a sraremenr reconc|||ng rne prol|r as per cosr recoros u|rn rne prol|r as per
l|nanc|a| recoros ol rne compan,.
Answer
Prof|t & Loss Account of Hodern Hanufacturers
for the year ended 30--198
{Rs. |n rnousanosj
To Valer|a|s 1,00 8y 3a|es 1,000
(20,000 ur|ls)
To wages 800 8y C|os|rg 3loc|
To Faclory 0verreads Z20 8y F|r|sred 0oods 210
To 0ll|ce ard Adrr. 0verreads 11 1230 ur|ls
To 3e|||rg & 0|slr|oul|or 0verreads 288 wor|-|r-Progress 112
To 0oodW||| Wr|ller oll 320
To lrleresl or Cap|la| 32
To Nel Prol|l 1Z _____
1,325 1,352
Cost Accounting
6.48
Prof|t as per 6ost Record
Rs. ln rnousanosj
Valer|a|s 1,00
wages 800
Pr|re Cosl 2,100
Faclory 0verread 800
{'00/ ol uagesj
0ross Faclory Cosl 3,200
less. C|os|rg wlP 112
Faclory Cosl 3,088
(21,230 ur|ls)
Add: 0ll|ce & Adr|r|slral|ve 0verread 308.80
{'0/ ol Facror, 0osrj
Tola| Cosl ol oulpul 3,39.80
less. C|os|rg sloc| (1,230 ur|ls) ol F|r|sred 0oods 19.80
{$ee work|ng hore 'j
Cosl ol Producl|or ol 20,000 ur|ls 3,200.00
3e|||rg ard 0|slr|oul|or overread 320.00
(_ Rs. 1 p u.) _______
Cosl ol sa|es 3,520.00
(20,000 ur|ls)
3a|es Reverue 1,000.00
(20,000 ur|ls) _______
Prol|l 180.00
Rs. {,000j Rs. {,000j
Prol|l as per Cosl Accourls 180
/oo. Faclory overread 0veraosoroed 80
(800-Z20)
3e|||rg ard 0|slr|oul|or 0verread 0veraosoroed 32
(320-288)
C|os|rg sloc| overva|ued |r F|rarc|a| Accourls 13.20 152.2
(210-19.8) 35.20
less. 0ll|ce & Adr|r|slral|ve 0verread urderaosoroed 10Z.20
(11-308.80)
0oodW||| Wr|ller oll 320.00
lrleresl or Cap|la| 32.00 159.20
Prol|l as per F|rarc|a| Accourls 1Z.00
6.49
work|ng Note:
1. Cosl per ur|l ol l|r|sred good = Tola| Cosl ol oulpul
Tola| ruroer ol ur|ls produced
= Rs. 339.80 Trousard = Rs. 10
21,230 ur|ls
Cosl ol 1230 ur|ls = Rs. 10 x 1230 = Rs. 1,9,800
A|ternat|ve|y: Adr|r|slral|ve overreads cou|d oe exc|uded lror lre cosl ol producl|or.
0uest|on 25
S|ven oe|ou |s rne Trao|ng ano Prol|r ano loss /ccounr ol a 0ompan, lor rne ,ear enoeo
J'
sr
Varcn, '99J.
Rs. Rs.
To Varer|a|s 27,40,000 3, $a|es 60,00,000
To wages '5,'0,000 {60,000 un|rsj
To Facror, Expenses 8,J0,000 3, $rock {2,000 un|rsj ',60,000
To /omn. Expenses J,82,400 3, work-|n- Progress Rs.
To $e|||ng Expenses 4,50,000 Varer|a|s 64,000
To Pre||m|nar, wages J6,000
Expenses Facror, Expenses 20,000 ',20,000
wr|rren oll 60,000 3, 0|v|oeno rece|veo '8,000
To her Prol|r J,25,600 _______
62,98,000 62,98,000
Tne 0ompan, manulacrures sranoaro un|rs. ln rne 0osr /ccounrs.
{|j Facror, expenses nave oeen a||ocareo ro prooucr|on ar 20/ ol Pr|me 0osr;
{||j /om|n|srrar|ve expenses ar Rs. 6 per un|r proouceo; ano
{|||j $e|||ng expenses ar Rs. 8 per un|r so|o.
Prepare rne 0osr|ng Prol|r ano loss /ccounr ol rne compan, ano reconc||e rne same u|rn
rne prol|r o|sc|oseo o, rne F|nanc|a| /ccounrs.
Answer
Rs. Rs.
To Valer|a|s 2,Z,000 8y 3a|es 0,00,000
{work|ng hore 'j 8y C|os|rg 3loc| 1,Z2,1
To wages 11,Z1,000 {work|ng hore 4j
{work|ng hore 2j
To Faclory Experses 8,30,000
(20 ol Pr|re cosl v|z Rs. 11,50,000)
Cost Accounting
6.50
{Reler ro work|ng hore Jj
To Adr|r|slral|or Experses 3,Z2,000
(_ Rs. p.u. x 2,000 ur|ls)
To 3e|||rg Experses 1,80,000
(_ Rs. 8 p.u. x 0,000 ur|ls)
To Nel Prol|l 3,10,1 ________
1,Z2,1 1,Z2,1
Rs. Rs.
Prol|l as per Cosl Accourls 3,10,1
/oo. 0|v|derds rol |rc|uded |r Cosl Accourls 18,000
Faclory Experses overaosoroed |r Cosl Accourls 20,000
(Rs. 8,30,000 Rs. 8,10,000)
3e|||rg overreads overaosoroed |r Cosl Accourls
(Rs. 1,80,000 - Rs. 1,50,000) 30,000 8,000
1,08,1
less. Pre||r|rary experses rol |rc|uded |r Cosl Accourls 0,000
Adr|r|slral|ve experses urder aosoroed |r Cosl Accourls 10,100
(Rs. 3,82,100 - Rs. 3Z2,000)
C|os|rg sloc| overva|ued |r Cosl Accourls 12,1 83,01
(Rs 1,Z2,1 - Rs. 1,0,000)
{Reler ro work|ng hore 4j _______
work|ng Notes:
1. Valer|a| = Rs. 2Z,10,000 - Rs. 1,000 = 2,Z,000
2. wages = Rs. 15,10,000 - Rs. 3,000 = Rs. 11,Z1,000
3. Pr|re Cosl = Valer|a|swages = Rs. 2,Z,000 Rs.11,Z1,000= Rs. 11,50,000
1. C|os|rg 3loc| va|ue
=
2000 x
ur|ls 000 , 2
Experses . Adrr Experses Faclory wages Cosl Valer|a|
|
|
.
|
\
| + + +
= 000 , 2
000 , 2
000 , 52 , 53 . Rs
= Rs. 1,Z2,1
0uest|on 2
V/s $e||ue|| lro. nas lurn|sneo ,ou rne lo||ou|ng |nlormar|on lrom rne l|nanc|a| oooks lor
rne ,ear enoeo J'
sr
0ecemoer, '99J.
6.51
Profit & Loss Account
For the year ended 31
st
0ecember, 1993
Rs. Rs.
Dpen|ng srock ol l|n|sneo gooos. $a|es '0,250 un|rs J,58,750
500 un|rs Rs. '7.50 eacn 8,750 0|os|ng srock ol l|n|sneo gooos.
Varer|a|s consumeo ',J0,000 250 un|rs Rs. 25 eacn 6,250
wages 75,000
Sross Prol|r c/o ',5',250 _______
J,65,000 J,65,000
Facror, overneaos 47,J75 Sross Prol|r c/o ',5',250
/om|n|srrar|on overneaos 5J,000 lnreresr '25
$e|||ng expenses 27,500 Renr rece|veo 5,000
3ao 0eors 2,000
Pre||m|nar, expenses 2,500
her Prol|r 24,000 ______
',56,J75 ',56,J75
Tne cosr sneer snous. {|j rne cosr ol marer|a|s as Rs. 'J per un|r; {||j rne |aoour cosr as
Rs. 7.50 per un|r; {|||j rne lacror, overneaos are aosoroeo ar 60/ ol |aoour cosr; {|vj rne
aom|n|srrar|on overneaos are aosoroeo ar 20/ ol lacror, cosr; {vj se|||ng expenses are
cnargeo ar Rs. J per un|r; {v|j rne open|ng srock ol l|n|sneo gooos |s va|ueo ar Rs. 22.50 per
un|r.
You are requ|reo ro prepare.
{|j Tne cosr sneer snou|ng rne numoer ol un|rs proouceo ano rne cosr ol prooucr|on, o,
e|emenrs ol cosrs, per un|r ano |n rora|.
{||j Tne sraremenr ol prol|r or |oss as per cosr accounrs lor rne ,ear enoeo J'
sr
0ecemoer,
'99J.
(|||) Tne sraremenr snou|ng rne reconc|||ar|on ol prol|r or |oss as snoun o, rne cosr accounrs
u|rn rne prol|r as snoun o, rne l|nanc|a| accounrs.
Answer
(|} 6ost 8heet of H|s 8e||we|| Ltd. for 10,000 un|ts*
(for the year ended 31
st
0ec., 1993}
0osr per un|r Tora| 0osr
Rs. Rs.
Valer|a| 13.00 1,30,000
Laoour Z.50 Z5,000
Cost Accounting
6.52
Faclory 0verreads
0 ol Laoour Cosl 1.50 15,000
Faclory Cosl 25.00 2,50,000
Adr|r|slral|ve 0verreads
20 ol Faclory cosl 5.00 50,000
Tola| Cosl ol Producl|or 30.00 3,00,000
(||} 8tatement of Prof|t or Loss as per 6ost Accounts
st
0ec., 1993}
ho. ol un|rs /mounr {Rs.j
0per|rg sloc| ol l|r|sred goods; 500 x Rs. 22.50 500 11,250
/oo. Cosl ol Producl|or al Rs. 30 per ur|l 10,000 3,00,000
Tola| 10,500 3,11,250
less. C|os|rg sloc| ol l|r|sred goods _ Rs.30 per ur|l 250 Z,500
Cosl ol goods so|d 10,250 3,03,Z50
3e|||rg experses _ Rs. 3 per ur|l 10,250 30,Z50
Cosl ol sa|es 10,250 3,31,500
3a|es reverue 10,250 3,58,Z50
Prol|l 21,250
(|||} 8tatement show|ng the reconc|||at|on of Prof|t or Loss
as shown by 6ost and F|nanc|a| Account
Rs. Rs.
Prol|l as per Cosl Accourls -- 21,250
/oo. 3e|||rg experses over-aosoroed
(Rs. 30,Z50 - Rs. 2Z,500) 3,250
0verva|ual|or ol oper|rg sloc| |r Cosl Accourls
(Rs. 11,250 - Rs. 8,Z50) 2,500
lncome exc|uoeo 0osr /ccounrs.
lrleresl 125
Rerl 5,000 10,8Z5
35,125
less. unoer recover, ol overneaos |n 0osr /ccounrs
Faclory overreads:
(Rs. 1Z,3Z5 - Rs. 15,000 2,3Z5
Adr|r|slral|ve 0verreads 3,000
6.53
(Rs. 53,000 - Rs. 50,000)
0ver va|ual|or ol c|os|rg sloc| |r Cosl Accourls:
(Rs. Z,500 - Rs. ,250) 1,250
Expenses exc|uoeo lrom 0osr /ccounrs.
8ad 0eols 2,000
Pre||r|rary experses 2,500 11,125
Prol|l as per l|rarc|a| accourls 21,000
0uest|on 27
Tne 0n|el 0osr /ccounranr ol Dmega l|m|reo louno ro n|s surpr|se rnar rne prol|r uas rne
same as per cosr accounrs as ue|| as rne l|nanc|a| accounrs. le askeo n|s oepur, ro l|no our
rne reasons lor rne same. You are requ|reo ro ana|,se ano suggesr a Reconc|||ar|on $raremenr
|s necessar, or nor.
Answer
Cr|el Cosl Accourl ol V/s 0rega Lld. rol|ced lral lre prol|l ol lre corcerr urder Cosl
ard F|rarc|a| Accourl|rg 3yslers Was lre sare. Tr|s lacl |rd|cales lral lre corcerr Was
us|rg a ror-|rlegraled accourl|rg sysler. Tre l|gure ol prol|l urder Cosl ard F|rarc|a|
accourls W||| oe lre sare Wrer lre arourl ol lola| urder crarges equa| lo lre arourl ol lola|
overcrarges |r eacr sel ol ooo|s.
Tre slalererl ol prol|l urder Cosl Accourls |s usua||y prepared or lre oas|s ol
slardard/oudgeled l|gures |r respecl ol var|ous e|ererls ol cosl, Wrereas |l |s prepared or
aclua| oas|s urder l|rarc|a| accourls.
Cors|der lre lo||oW|rg assured slalererls ol prol|l as per Cosl ard F|rarc|a| Accourls
ol V/s 0rega Lld. lo ascerla|r lre reasors, Wr|cr accourl lor lre l|gure ol prol|l lo oe sare
urder lWo sels ol accourls.
8tatement of Prof|t of H|s 0mega Ltd. as per 6ost A|c
Rs. Rs.
0|recl Valer|a|: 2,Z5,000
(2,50,000 x Rs. 1.1)
0|recl Wages
2,50,000 x Rs. 0.Z5 1,8Z,500
Pr|me 0osr 1,2,500
/oo. Faclory overreads:
var|ao|e: 0,000
F|xed: Z5,000 1,35,000
Facror, 0osr 5,9Z,500
/oo. 0ll|ce 0verreads: 50,000
0osr ol Prooucr|on. ,1Z,500
Cost Accounting
6.54
/oo. 3e|||rg & 0|sl 0v.
var|ao|e: 30,000
F|xed: 3,500 93,500
Cosl ol 3a|es Z,11,000
Prol|l: 9,000
3a|es: Z,50,000
8tatement of Prof|t & Loss Account of H|s 0mega Ltd.
Rs. Rs.
To 0|recl Valer|a|s 3,00,000 8y 3a|es Z,50,000
To 0|recl wages 2,00,000 (2,50,000 ur|ls)
To Faclory experses 1,20,000
To 0ll|ce express 10,000
To 3e|||rg & 0|sl. Experses 80,000
To Lega| experses 1,000
To Nel prol|l 9,000 _______
Z,50,000 Z,50,000
Ar ara|ys|s ol Cosl ard F|rarc|a| prol|l slalererl |rd|cales lre lo||oW|rg lacls:
(1) Tre prol|l ol lre corcerr urder lWo sels ol accourls |s lre sare |.e. Rs. 9,000.
(2) A sur ol Rs. 25,000 |s urder crarged |r Cosl Accourls or accourl ol d|recl raler|a| cosl.
Tre esl|raled cosl or lr|s accourl Was Rs. 2,Z5,000 Wrereas aclua| cosl |rcurred
arourled lo Rs. 3,00,000.
(3) 3|r||ar|y, a sur ol Rs. 12,500 |s urder crarged |r Cosl Accourls or accourl ol d|recl
Wages. Esl|raled cosls Were Rs. 1,8Z,500 Wrereas aclua| cosls cores lo Rs. 2,00,000.
(1) A sur ol Rs. 1,000 loWards |ega| experses |s or|y crarged |r l|rarc|a| accourls ard Was
rol sroWr |r Cosl Accourls.
(5) A sur ol Rs. 15,000 d|llererce oelWeer oudgeled ard aclua| laclory overreads |s over-
crarged |r Cosl Accourls.
() A sur ol Rs. 10,000 d|llererce oelWeer oudgeled ard aclua| oll|ce overreads |s
overcrarged |r Cosl Accourls.
(Z) A sur ol Rs. 13,500 d|llererce oelWeer oudgeled ard aclua| se|||rg ard d|slr|oul|or
overreads |s overcrarged |r Cosl Accourls.
Trus, lre lola| arourl ol urder crarges |s equa| lo lola| arourl ol over crarges |r eacr
sel ol ooo|s ard |l |s equa| lo Rs. 38,500. As a resu|l, lre prol|l Was lre sare as per cosl
accourls as We|| as lre l|rarc|a| accourls. Tre aoove ara|ys|s a|so |rd|cales lral lrougr lre
l|gure ol prol|l urder lWo sels ol accourls |s sare oul lre l|gures ol raler|a|, |aoour ard
overread cosls d|ller. ll a|so po|rls oul |lers, Wr|cr are preserl |r l|rarc|a| accourls ard rol
|r cosl accourls.
6.55
Tre slalererl ol recorc|||al|or |s recessary, as lre lWo sels ol accourls are ror-
|rlegraled. ll |s or|y lre recorc|||al|or slalererl Wr|cr Wou|d |rd|cale lre arourl ol urder
crarges ard over-crarges lor d|llererl e|ererls ol cosl. Tre |roW|edge ol urder crarges ard
over-crarges Wou|d erao|e lre raragererl lo |r|l|ale recessary acl|or lor corlro| purposes.
For exarp|e, |r lre case ol V/s 0rega Lld., lre sur ol Rs. 25,000 rore ras oeer sperl or
lre raler|a|s lor lre rarulaclur|rg ol 2,50,000 ur|ls ol lre producl. Tr|s |s |roWr as raler|a|
cosl var|arce. Tr|s var|arce ray ar|se e|lrer due lo excess raler|a| usage or pr|ce
lrlorral|or aooul lre occurrerce ol var|arces |s prov|ded oy a slalererl ol recorc|||al|or lo
lre accourlarls, so lral recessary corlro| acl|or ray oe la|er. 3ucr a slalererl a|so
|rc|udes lre |lers Wr|cr rave rol oeer |rc|uded |r Cosl Accourls oul are preserl |r F|rarc|a|
Accourls.
0uest|on 28
Tne lo||ou|ng l|gures nave oeen exrracreo lrom rne F|nanc|a| /ccounrs ol a
Vanulacrur|ng F|rm lor rne l|rsr ,ear ol |rs operar|on.
Rs.
0|recr Varer|a| 0onsumpr|on 50,00,000
0|recr wages J0,00,000
Facror, Dverneaos '6,00,000
/om|n|srrar|ve Dverneaos 7,00,000
$e|||ng ano 0|srr|our|on Dverneaos 9,60,000
3ao 0eors 80,000
Pre||m|nar, Expenses ur|rren oll 40,000
lega| 0narges '0,000
0|v|oenos Rece|veo ',00,000
lnreresr Rece|veo on 0epos|rs 20,000
$a|es {',20,000 un|rsj ',20,00,000
0|os|ng $rocks.
F|n|sneo Sooos {4,000 un|rsj J,20,000
work |n Progress 2,40,000
Tne cosr accounrs lor rne same per|oo revea| rnar rne o|recr marer|a| consumpr|on uas Rs.
56,00,000. Facror, overneao |s recovereo ar 20/ on pr|me cosr. /om|n|srrar|on overneao |s
recovereo ar Rs. 6 per un|r ol prooucr|on. $e|||ng ano o|srr|our|on overneaos are recovereo ar
Rs. 8 per un|r so|o.
Prepare rne Prol|r ano loss /ccounrs oorn as per l|nanc|a| recoros ano as per cosr
recoros. Reconc||e rne prol|rs as per rne ruo recoros.
Cost Accounting
6.56
Answer
Prof|t and Loss Account
(As per f|nanc|a| records}
Rs. Rs.
To 0|recl Valer|a| 50,00,000 8y 3a|es 1,20,00,000
To 0|recl wages 30,00,000 (1,20,000 ur|ls)
To Faclory 0verreads 1,00,000 8y C|os|rg 3loc|
To 0ross Prol|l 29,0,000 wlP 2,10,000
F|r|sred 0oods 3,20,000
_________ (1,000 ur|ls) _________
1,25,0,000 1,25,0,000
To Adr|r|slral|or 0verreads Z,00,000 8y 0ross Prol|l o/d 29,0,000
To 3e|||rg ard 0|slr|oul|or 9,0,000 8y 0|v|derd 1,00,000
0verreads 8y lrleresl 20,000
To 8ad 0eols 80,000
To Pre||r|rary Experses
Wr|ller oll
10,000
To Lega| Crarges 10,000
To Nel Prol|l 12,90,000 ________
30,80,000 30,80,000
8tatement of 6ost and Prof|t
(As per 6ost Records}
Tora|
Rs.
0|recl Valer|a| 5,00,000
0|recl wages 30,00,000
Pr|re Cosl 8,00,000
Faclory 0verread 1Z,20,000
1,03,20,000
less. C|os|rg 3loc| (wlP) 2,10,000
wor|s Cosl (1,21,000 ur|ls 1,00,80,000
Adr|r|slral|or 0verread (1,21,000 ur|ls _ Rs. /- p.u.) Z,11,000
Cosl ol producl|or ol (1,21,000 ur|ls) 1,08,21,000
less. F|r|sred 0oods (1,000 ur|ls _ Rs. 8Z.29) 3,19,10
Cosl ol goods so|d (1,20,000 ur|ls) 1,01,Z1,810
6.57
3e|||rg ard 0|slr|oul|or 0verread (1,20,000 _ Rs. 8/- p.u.) 9,0,000
Cosl ol 3a|es 1,11,31,810
Nel prol|l (8a|arc|rg l|gure) 5,5,10
3a|es Reverue 1,20,00,000
8tatement of Reconc|||at|on of prof|t as obta|ned under 6ost and F|nanc|a| Accounts
Rs. Rs.
Prol|l as per Cosl Records 5,5,10
/oo. Excess ol Valer|a| Corsurpl|or ,00,000
Excess Faclory 0verread 1,20,000
Excess Adr|r|slral|or 0verread 11,000
0|v|derd Rece|ved 1,00,000
lrleresl Rece|ved 20,000 8,81,000
11,19,10
less. 8ad deols 80,000
Pre||r|rary experses Wr|ller oll 10,000
Lega| crarges 10,000
0ver-va|ual|or ol C|os|rg sloc| |r cosl
ooo|s (Rs. 3,19,10 - Rs. 3,20,000) 29,10 1,59,10
Prol|l as per F|rarc|a| Records 12,90,000
0uest|on 29
Tne lo||ou|ng |nlormar|on |s ava||ao|e lrom rne l|nanc|a| oooks ol a compan, nav|ng a
norma| prooucr|on capac|r, ol 60,000 un|rs lor rne ,ear enoeo J'
sr
Varcn, '995.
{|j $a|es Rs. '0,00,000 {50,000 un|rsj.
{||j Tnere uas no open|ng ano c|os|ng srock ol l|n|sneo un|rs.
{|||j 0|recr marer|a| ano o|recr uages cosr uere Rs. 5,00,000 ano Rs. 2,50,000 respecr|ve|,.
{|vj /crua| lacror, expenses uere Rs. ',50,000 ol un|cn 60/ are l|xeo.
{vj /crua| aom|n|srrar|ve expenses uere Rs. 45,000 un|cn are comp|ere|, l|xeo.
{v|j /crua| se|||ng ano o|srr|our|on expenses uere Rs. J0,000 ol un|cn 40/ are l|xeo.
{v||j lnreresr ano o|v|oenos rece|veo Rs. '5,000.
You are requ|reo ro.
{aj F|no our prol|r as per l|nanc|a| oooks lor rne ,ear enoeo J'
sr
Varcn, '995;
Cost Accounting
6.58
{oj Prepare rne cosr sneer ano ascerra|n rne prol|r as per cosr accounrs lor rne ,ear
enoeo J'
sr
Varcn, '995 assum|ng rnar rne |no|recr expenses are aosoroeo on rne
oas|s ol norma| prooucr|on capac|r,; ano
{cj Prepare a sraremenr reconc|||ng prol|rs snoun o, l|nanc|a| ano cosr oooks.
{Va,, '995, '6 marksj
Answer
wor||rg Nole:
st
Harch, 1995}
Rs. Rs
To 0|recl Valer|a| 5,00,000 8y 3a|es 10,00,000
To 0|recl wages 2,50,000 50,000 ur|ls
To Aclua| laclory experses 1,50,000 8y lrleresl ard
To Aclua| adr|r|slral|ve experses 15,000 0|v|derds 15,000
To Aclua| se|||rg ard d|slr|oul|or experses 30,000
To Prol|l 10,000 _______
10,15,000 10,15,000
(a) Prol|l as per l|rarc|a| ooo|s lor lre year erded 31
sl
Varcr, 1995 |s Rs. 10,000 (Reler lo
Wor||rg Nole).
(b} 6ost 8heet
st
Harch, 1995}
Rs.
0|recl Valer|a| 5,00,000
0|recl wages 2,50,000
Pr|re Cosl Z,50,000
Facror, expenses.
var|ao|e : Rs. 0,000
F|xed :
5
000 , 90 . Rs
1,35,000
wor|s Cosl : 8,85,000
Adr|r|slral|ve experses :
5
000 , 15 . Rs
3Z,500
6.59
Cosl ol producl|or 9,22,500
$e|||ng & o|srr|our|on expenses
var|ao|e : Rs. 18,000
F|xed :
5
000 , 12 . Rs
28,000
Cosl ol 3a|es 9,50,500
Prol|l 19,500
3a|es reverue 10,00,000
(c} 8tatement of Reconc|||at|on
(Reconc|||ng prof|t shown by F|nanc|a| and 6ost Accounts}
Rs. Rs.
Prol|l as per Cosl Accourls 19,500 -
/oo. lrcore lror |rleresl ard d|v|derds 15,000
1,500
less. Faclory experses urdercrarged |r Cosl Accourls
(Rs. 1,50,000 - Rs. 1,35,000)
15,000
Adr|r|slral|ve experses urdercrarged |r Cosl Accourls
(Rs. 15,000 - Rs. 3Z,500)
Z,500
3e|||rg & d|slr|oul|or experses urder-crarged |r Cosl Accourls
(Rs. 30,000 - Rs. 28,000)
2,000 21,500
_____
Prol|l |s per F|rarc|a| Accourls 10,000
0uest|on 30
Tne l|nanc|a| oooks ol a compan, revea| rne lo||ou|ng oara lor rne ,ear enoeo J'
sr
Varcn,
2002.
Dpen|ng $rock. Rs.
F|n|sneo gooos 875 un|rs 74,J75
work-|n-process J2,000
'.4.0' ro J'.J.02
Rau marer|a|s consumeo 7,80,000
0|recr laoour 4,50,000
Facror, overneaos J,00,000
Cost Accounting
6.60
Sooou||| ',00,000
/om|n|srrar|on overneaos 2,95,000
0|v|oeno pa|o 85,000
3ao 0eors '2,000
$e|||ng ano 0|srr|our|on Dverneaos 6',000
lnreresr rece|veo 45,000
Renr rece|veo '8,000
$a|es '4,500 un|rs 20,80,000
0|os|ng $rock. F|n|sneo gooos J75 un|rs 4',250
work-|n-process J8,667
Tne cosr recoros prov|oe as unoer.
- Facror, overneaos are aosoroeo ar 60/ ol o|recr uages.
- /om|n|srrar|on overneaos are recovereo ar 20/ ol lacror, cosr.
- $e|||ng ano o|srr|our|on overneaos are cnargeo ar Rs. 4 per un|r so|o.
- Dpen|ng $rock ol l|n|sneo gooos |s va|ueo ar Rs. '04 per un|r.
Tne compan, va|ues uork-|n-process ar lacror, cosr lor oorn F|nanc|a| ano 0osr Prol|r
Reporr|ng.
Requ|reo.
{j Prepare sraremenrs lor rne ,ear enoeo J'
sr
Varcn, 2002 snou
rne prol|r as per l|nanc|a| recoros
rne prol|r as per cosr|ng recoros.
{||j Presenr a sraremenr reconc|||ng rne prol|r as per cosr|ng recoros u|rn rne prol|r as per
F|nanc|a| Recoros. {Va,, 2002, '0 marksj
Answer
(|} 8tatement of Prof|t as per f|nanc|a| records
0R
Prof|t & Loss Account of the company
{lor rne ,ear enoeo Varcn J', 2002j
Rs. Rs.
To 0per|rg sloc| ol F|r|sred
goods
Z1.3Z5 8y 3a|es 20,80,000
To wor|-|r-process 32,000 8y C|os|rg sloc| ol l|r|sred
goods
11250
6.61
To RaW raler|a|s corsured Z,80,000 8y wor|-|r-Process 38,Z
To 0|recl |aoour 1,50,000 8y Rerl rece|ved 18,000
To Faclory overreads 3,00,000 8y lrleresl rece|ved 15,000
To 0oodW||| 1,00,000
To Adr|r|slral|or overreads 2,95,000
To 3e|||rg & d|slr|oul|or overreads 1,000
To 0|v|derd pa|d 85,000
To 8ad deols 12,000
To Prol|l 33,512 ________
22,22,91Z 22,22,91Z
8tatement of Prof|t as per cost|ng records
{lor rne ,ear enoeo Varcn J',2002j
Rs.
3a|es reverue (A)
{'4,500 un|rsj
20,80,000
0osr ol sa|es.
0per|rg sloc|
{875 un|rs x Rs. '04j
91,000
/oo. Cosl ol producl|or ol 11,000 ur|ls
{Reler ro uork|ng nore 2j
1Z,92,000
less. C|os|rg sloc| 18,000
|
|
.
|
\
|
ur|ls 000 , 11
ur|ls 3Z5 000 , 92 , 1Z . Rs
_______
Producl|or cosl ol goods so|d (11,500 ur|ls) 18,35,000
3e|||rg & d|slr|oul|or overreads
{'4,500 un|rs x Rs. 4j
58,000
________
Cosl ol sa|es: (8) 18,93,000
Prol|l: {(A) - (8) 1,8Z,000
Cost Accounting
6.62
(||} 8tatement of Reconc|||at|on
(Reconc|||ng the prof|t as per cost|ng records w|th the prof|t as per f|nanc|a| records}
Rs. Rs.
Prol|l as per Cosl Accourls 1,8Z,000
/oo. Adr|r|slral|or overreads over aosoroed 3,Z
(Rs. 2,98,Z - Rs. 2,95,000)
0per|rg sloc| overva|ued
(Rs. 91,000 - Rs. Z1,3Z5)
1,25
lrleresl rece|ved 15,000
Rerl rece|ved 18,000 83,292
2,Z0,292
less. Faclory overreads urder recovery
(Rs. 3,00,000 - Rs. 2,Z0,000)
30,000
3e|||rg & d|slr|oul|or overreads urder recovery
(Rs. 1,000 - Rs. 58,000)
3,000
C|os|rg sloc| overva|ued
(Rs. 18,000 - Rs. 11,250)
,Z50
0oodW||| 1,00,000
0|v|derd 85,000
8ad deols 12,000 2,3,Z50
Prol|l as per l|rarc|a| accourls 33,512
work|ng notes:
1. Number of un|ts produced
un|rs
3a|es 11,500
/oo. C|os|rg sloc| 3Z5
Tola| 11,8Z5
less. 0per|rg sloc| 8Z5
Nuroer ol ur|ls produced 11,000
6.63
2. 6ost 8heet
Rs.
RaW raler|a|s corsured Z,80,000
0|recl |aoour 1,50,000
Pr|re cosl 12,30,000
Faclory overreads
{60/ ol o|recr uagesj
2,Z0,000
Faclory cosl 15,00,000
/oo. 0per|rg Wor|-|r-process 32,000
less. C|os|rg Wor|-|r-process 38,Z
Faclory cosl ol goods produced 11,93,333
Adr|r|slral|or overreads
{20/ ol lacror, cosrj
2,98,Z
Cosl ol producl|or ol 11,000 ur|ls
{Reler ro uork|ng nore 'j
Cosl ol producl|or per ur|l:
1Z,92,000
128 . Rs
ur|ls 000 , 11
000 , 92 , 1Z . Rs
produced ur|ls ol . No
Producl|or ol Cosl Tola|
= = =
0uest|on 31
/ manulacrur|ng compan, o|sc|oseo a ner |oss ol Rs. J,47,000 as per rne|r cosr accounrs
lor rne ,ear enoeo Varcn J',200J. Tne l|nanc|a| accounrs nouever o|sc|oseo a ner |oss ol Rs.
5,'0,000 lor rne same per|oo. Tne lo||ou|ng |nlormar|on uas revea|eo as a resu|r ol scrur|n, ol
rne l|gures ol oorn rne sers ol accounrs.
Rs.
{|j Facror, Dverneaos unoer-aosoroeo 40,000
{||j /om|n|srrar|on Dverneaos over-aosoroeo 60,000
{|||j 0eprec|ar|on cnargeo |n F|nanc|a| /ccounrs J,25,000
{|vj 0eprec|ar|on cnargeo |n 0osr /ccounrs 2,75,000
{vj lnreresr on |nvesrmenrs nor |nc|uoeo |n 0osr /ccounrs 96,000
{v|j lncome-rax prov|oeo 54,000
Cost Accounting
6.64
{v||j lnreresr on |oan lunos |n F|nanc|a| /ccounrs 2,45,000
{v|||j Transler lees {creo|r |n l|nanc|a| oooksj 24,000
{|xj $rores aousrmenr {creo|r |n l|nanc|a| oooksj '4,000
{xj 0|v|oeno rece|veo J2,000
Prepare a memoranoum Reconc|||ar|on /ccounr {Va,, 200J, 8 marksj
Answer
Hemorandum Reconc|||at|on Accounts
0r. 0r.
Rs. Rs.
To Nel Loss as per Cosl|rg ooo|s 3,1Z,000 8y Adr|r|slral|or overreads over
recovered |r cosl accourls
0,000
To Faclory overreads urder aosoroed
|r Cosl Accourls
10,000 8y lrleresl or |rveslrerl rol |rc|uded
|r Cosl Accourls
9,000
To 0eprec|al|or urder crarged |r
Cosl Accourls
50,000 8y Trarsler lees |r F|rarc|a| ooo|s 21,000
To lrcore-Tax rol prov|ded |r Cosl
Accourls
51,000 8y 3lores adjuslrerl
(Cred|l |r l|rarc|a| ooo|s)
11,000
To lrleresl or Loar Furds |r
F|rarc|a| Accourls
2,15,000 8y 0|v|derd rece|ved |r l|rarc|a|
ooo|s
32,000
_______ 8y Nel |oss as per F|rarc|a| ooo|s 5,10,000
Z,3,000 Z,3,000
0uest|on 32
wr|re snorr nore on lnregrareo /ccounrs {Va,, '995, 4 marksj
Answer
lnregrareo /ccounrs. lrlegraled (or lrlegra|) Accourls |s lre rare g|ver lo a sysler
Wrereoy cosl ard l|rarc|a| accourls are |epl |r lre sare sel ol ooo|s. 0ov|ous|y, lrere W|||
oe ro separale sels ol ooo|s lor Cosl|rg ard F|rarc|a| purposes. lrlegraled Accourls W|||
rave lo allord lu|| |rlorral|or requ|red lor Cosl|rg as We|| as lor F|rarc|a| Accourls. lr olrer
Words, |rlorral|or ard dala srou|d oe recorded |r sucr a Way as lo erao|e lre l|rr lo
ascerla|r lre Cosl (logelrer W|lr lre recessary ara|ys|s) ol eacr producl joo, process,
operal|or or ary olrer |derl|l|ao|e acl|v|ly. For |rslarce, purcrases are ara|ysed oy ralure ol
raler|a| ard |ls erd-use. Purcrases accourl |s e||r|raled ard d|recl posl|rg are rade lo
6.65
3lores Corlro| Accourl, wor|-|r-Progress Accourl, or 0verread Accourl. Payro|| |s
slra|grlWay ara|ysed |rlo d|recl |aoour ard overreads. ll a|so ersures lre ascerla|rrerl ol
rarg|ra| cosl, var|arces, aororra| |osses ard ga|rs - |r lacl, a|| |rlorral|or lral
raragererl requ|res lror a sysler ol Cosl|rg lor do|rg |ls Wor| proper|y. Tre |rlegraled
accourls g|ve lu|| |rlorral|or |r sucr a rarrer so lral lre prol|l ard |oss accourl ard lre
oa|arce sreel car oe prepared accord|rg lo lre requ|rererls ol |aW ard raragererl
ra|rla|rs lu|| corlro| over lre ||ao|||l|es ard assels ol |ls ous|ress.
Tre ra|r advarlages ol lrlegraled Accourls are as lo||oWs:
1. 3|rce lrere |s ore sel ol accourls, lrus lrere |s ore l|gure ol prol|l. lerce lre quesl|or
2. Trere |s ro dup||cal|or ol record|rg ol erlr|es ard ellorls |r lre separale sel ol ooo|s.
3. Cosl|rg dala are ava||ao|e lror ooo|s ol or|g|ra| erlry ard rerce ro de|ay |s caused |r
1. Tre operal|or ol lre sysler |s lac|||laled W|lr lre use ol recrar|zed accourl|rg.
5. Cerlra||sal|or ol accourl|rg lurcl|or resu|ls |r ecorory.
Tre esserl|a| pre-requ|s|les lor |rlegraled accourls |rc|ude lre lo||oW|rg sleps.
1. Tre raragererl's dec|s|or aooul lre exlerl ol |rlegral|or ol lWo sels ol ooo|s. 3ore
corcerrs l|rd |l uselu| lo |rlegrale uplo lre slage ol pr|rary cosl or laclory cosl Wr||e
olrers preler lu|| |rlegral|or ol lre erl|re accourl|rg records.
2. A su|lao|e cod|rg sysler rusl oe rade ava||ao|e so as lo serve lre accourl|rg purposes
ol l|rarc|a| ard cosl accourls.
3. Ar agreed roul|re, W|lr regard lo lre lrealrerl ol prov|s|or ol accrua|s, prepa|d
experses, ard olrer adjuslrerls recessary lor preparal|or ol |rler|r accourls.
1. Perlecl coord|ral|or srou|d ex|sl oelWeer lre slall respors|o|e lor lre l|rarc|a| ard cosl
aspecls ol lre accourls ard ar ell|c|erl process|rg ol lre accourl|rg docurerls srou|d
oe ersured.
0uest|on 33
0ur|ng rne pn,s|ca| ver|l|car|on ol srores ol X lro. |r uas louno rnar '00 un|rs ol rau
marer|a| 'w,e' uas rerurneo ro rne supp||er nas nor oeen recoroeo. lrs purcnase |nvo|ce pr|ce
|s Rs. 5 per un|r un||e rne currenr sranoaro cosr |s Rs. 4.80 per un|r. Pass necessar, ourna|
enrr, ro recoro rne aousrmenr |n rne cosr |eoger ol X lro. {hov., '997,4 marksj
Cost Accounting
6.66
Answer
0r. 0r.
Rs. Rs.
0erera| |edger adjuslrerl a/c 500
To 3lores |edger A/c 180
To Valer|a| purcrase var|arce A/c 20
0uest|on 34
Tne lo||ou|ng l|gures nave oeen exrracreo lrom rne cosr recoros ol a manulacrur|ng un|r.
Rs.
$rores. Dpen|ng oa|ance J2,000
Purcnases ol marer|a| ',58,000
Transler lrom uork-|n-progress 80,000
lssues ro uork-|n-progress ',60,000
lssues ro repa|r ano ma|nrenance 20,000
0el|c|enc|es louno |n srock rak|ng 6,000
work-|n-progress. Dpen|ng oa|ance 60,000
0|recr uages app||eo 65,000
Dverneaos app||eo 2,40,000
0|os|ng oa|ance ol w.l.P. 45,000
F|n|sn prooucrs. Enr|re ourpur |s so|o ar a prol|r ol '0/ on acrua| cosr lrom uork-|n-
progress. wages |ncurreo Rs. 70,000, overneao |ncurreo Rs. 2,50,000.
lrems nor |nc|uoeo |n cosr recoros. lncome lrom |nvesrmenr Rs. '0,000, loss on sa|e ol
cap|ra| assers Rs. 20,000.
0rau up $rore 0onrro| accounr, work-|n-progress 0onrro| accounr, 0osr|ng Prol|r ano
loss accounr, Prol|r ano loss accounr ano Reconc|||ar|on sraremenr.
6.67
Answer
(A} 6ost|ng books
8tores 6ontro| Account
To oa|arce o/d 32,000 8y w.l.P. Corlro| A/c 1,0,000
To gerera| |edger adjuslrerl A/c 1,58,000 wor| overread corlro| a/c 20,000
To Wor| |r progress corlro| A/c 80,000 Cosl|rg Prol|l ard Loss a/c ,000
8a|arce c/d 81,000
2,Z0,000 2,Z0,000
w.|.P. 6ontro| Account
To oa|arce o/d 0,000 8y slores corlro| A/c 80,000
To slores corlro| A/c 1,0,000 8y cosl|rg prol|l ard |oss A/c
To d|recl Wages corlro| A/c 5,000 (Cosl ol sa|es) 1,00,000
To Wor|s overread corlro| A/c 2,10,000 8y oa|arce c/d 15,000
5,25,000 5,25,000
works overhead contro| account
To gerera| |edger adjuslrerl A/c 2,50,000 8y w.l.P. Corlro| A/c 2,10,000
To slore |edger corlro| A/c 20,000 8y cosl|rg prol|l & |oss A/c
(urder recovery)
30,000
2,Z0,000 2,Z0,000
To w.l.P. corlro| A/c
(Cosl ol sa|es)
1,00,000 8y gerera| |edger
adjuslrerl A/c
Cosl ol sa|es 1,00,000
10 prol|l 10,000 1,10,000
To Wor|s overread
corlro| A/c
30,000
To slores corlro| A/c
(srorlage)
,000
To prol|l 1,000
1,10,000 1,10,000
Cost Accounting
6.68
(} F|nanc|a| ooks
To oper|rg sloc| 8y sa|es 1,10,000
3lores 32,000 8y c|os|rg
sloc|:
w.l.P. 0,000 92,000 3lores 81,000
w.l.P. 15,000 1,29,000
To purcrases 1,58,000 8y |rcore
lror
|rveslrerl 10,000
To Wages |rcurred Z0,000 8y |oss 11,000
To overreads
|rcurred
2,50,000
To |oss or sa|e ol
cap|la| assels
20,000
5,90,000 5,90,000
Reconc|||at|on statement
Rs.
Prol|l as per cosl accourls 1,000
/oo.
lrcore lror |rveslrerl recorded |r l|rarc|a| accourls 10,000
11,000
less.
urder aosorpl|or ol Wages |r cosl accourls 5,000
Loss or sa|es ol cap|la| assel or|y |rc|uded |r l|rarc|a|
accourls
20,000 25,000
Loss as per l|rarc|a| accourls 11,000
0uest|on 35
Tne lo||ou|ng |s rne Trao|ng ano Prol|r & loss /ccounr ol Dmega l|m|reo.
0r. 0r.
To Varer|a|s consumeo 2J,0',000 3, $a|es
To 0|recr uages '2,05,750 {J0,000 un|rsj 48,75,000
To Prooucr|on Dverneaos 6,92,250 3, F|n|sneo gooos
To /om|n|srrar|on Dverneaos J,'0,J75 $rock {',000 un|rsj ',J0,000
6.69
To $e|||ng ano 0|srr|our|on Dverneaos J,68,875 3, work-|n-progress.
To pre||m|nar, Expenses ur|rren oll 22,750 Varer|a|s 55,250
To Sooou||| ur|rren oll 45,500 wages 26,000
To F|nes J,250 Prooucr|on
To lnreresr on Vorrgage 'J,000 Dverneaos '6,250 97,500
To loss on $a|e ol macn|ne '6,250 3, 0|v|oenos rece|veo J,90,000
To Taxar|on ',95,000
To her Prol|r lor rne ,ear J,8J,500 3, lnreresr on oank
oepos|rs
65,000
55,57,500 55,57,500
Dmega l|m|reo manulacrures a sranoaro un|r.
Tne 0osr /ccounr|ng recoros ol Dmega lro. snou rne lo||ou|ng.
{|j Prooucr|on overneaos nave oeen cnargeo ro uork-|n-progress ar 20/ on Pr|me
cosr.
{||j /om|n|srrar|on Dverneaos nave oeen recovereo ar Rs. 9.75 per l|n|sneo un|r.
{|||j $e|||ng & o|srr|our|on Dverneaos nave oeen recovereo ar Rs. 'J per un|r so|o.
{|vj Tne unoer- or Dver-aosorpr|on ol Dverneaos nas nor oeen rranslerreo ro cosr|ng
P/l //c.
Required:
{|j Prepare a prolorma 0osr|ng Prol|r & loss accounr, |no|car|ng ner prol|r.
{||j Prepare 0onrro| accounrs lor prooucr|on overneaos, aom|n|srrar|on Dverneaos ano
se|||ng & o|srr|our|on Dverneaos.
{|||j Prepare a sraremenr reconc|||ng rne prol|r o|sc|oseo o, rne cosr recoros u|rn rnar
snoun |n F|nanc|a| accounrs. {JJ4 = '0 Varksj
Answer
(|} 6ost|ng Prof|t & Loss A|c
Rs.
Valer|a|s 23,01,000
wages 12,05,Z50
Pr|re Cosl 35,0,Z50
Producl|or overreads (20 ol Pr|re Cosl) Z,01,350
12,08,100
less. wor| |r Progress 9Z,500
Varulaclur|rg cosl |rcurred dur|rg lre per|od 11,10,00
/oo. Adrr. 0rs (9.Z5 x 31000) 3,02,250
Cost Accounting
6.70
Cosl ol Producl|or 11,12,850
Less
C|. F|r|sred goods sloc|(
31000
1000
1112850 )
1,12,350
C003 12,Z0,500
Add 3e|||rg & d|slr|oul|or 0ls ( 30,000 Rs. 13) 3,90,000
Cosl ol 3a|es 1,0,500
Prol|l 2,11,500
3a|es 18,Z5,000
(||} Product|on 0h A|c
Rs Rs
To 0er |edger Adj. A/c ,92,250 8y wlP A/c Z,01,350
To 8a|. C/d 9,100
Z,01,350 Z,01,350
Admn. 0h A|c
Rs Rs
To 0er Ledger Adj. A/c 3,10,3Z5 8y F|r|sred goods A/c 3,02,250
8y oa| c/d 8,125
3,10,3Z5 3,10,3Z5
8e|||ng & 0|str|but|on 0hs A|c
Rs Rs
To 0er. Ledger Adj A/c 3,8,8Z5 8y Cosl ol 3a|es A/c 3,90,000
To oa| C/d 21,125
3,90,000 3,90,000
(|||} Reconc|||at|on 8tatement
Rs
Prol|ls as per cosl accourls 2,11,500
/oo. Prodr. 0ls over aosoroed 9,100
3e|||rg & d|slr|oul|or 0ls (0ver aosoroed) 21,125
0|v|derd rece|ved 3,90,000
lrleresl or oar| depos|ls 5,000 1,85,225
,99,Z25
less. Adrr 0rs urder-aosoroed 8,125
Pre||r|rary exp. W/oll 22,Z50
0oodW||| W/oll 15,500
F|res 3,250
6.71
lrleresl or Vorlgage 13,000
Loss or sa|e ol racr|rery 1,250
Taxal|or 1,95,000
wr|le-doWr ol F|r|sred sloc| (1,12,350 - 130,000) 12,350 3,1,225
0uest|on 3
wnar |s 'lnregrareo /ccounr|ng $,srem? $rare |rs aovanrages. {Va, 2007, 4 marksj
Answer
|ntegrated Account|ng 8ystem:
ll |s sucr a sysler ol accourl|rg Wrereoy cosl ard l|rarc|a| accourls are |epl |r lre
sare sel ol ooo|s. 0ov|ous|y, lrer lrere W||| oe ro separale sel ol ooo|s lor cosl|rg
ard l|rarc|a| records. lrlegraled accourls prov|de or reels oul lu||y lre |rlorral|or
requ|rererls lor cosl|rg as We|| as l|rarc|a| accourls.
Advarlages ol lrlegraled Accourl|rg 3ysler:
(|) Tre quesl|or ol recorc|||rg ol cosl|rg ard l|rarc|a| prol|ls does rol ar|se, as lrere |s
ore l|gure ol prol|l or|y.
(||) 0ue lo use ol ore sel ol ooo|s, lrere |s s|gr|l|carl exlerl ol sav|rg |r ellorls rade.
(|||) No de|ay |s caused |r oola|r|rg |rlorral|or as |l |s prov|ded lror ooo|s ol or|g|ra|
erlry.
(|v) ll |s ecoror|ca| as |l |s oased or lre corcepl ol cerlra||sal|or ol Accourl|rg
lurcl|or.
0uest|on 37
/30 lro. nas lurn|sneo rne lo||ou|ng |nlormar|on lrom rne l|nanc|a| oooks lor rne ,ear enoeo
J'sr Varcn, 2007.
Prol|r & loss /ccounr
Rs. Rs.
To Dpen|ng srock 3, $a|es {'0,250 un|rsj 28,70,000
{500 un|rs ar Rs. '40 eacnj 70,000 3, 0|os|ng srock
Varer|a| consumeo '0,40,000 {250 un|rs ar Rs. 200
eacnj
50,000
wages 6,00,000
Sross prol|r c/o '2,'0,000 ________
29,20,000 29,20,000
Cost Accounting
6.72
To Facror, overneaos J,79,000 3, Sross prol|r o/o '2,'0,000
/om|n|srrar|on overneaos 4,24,000 lnreresr ',000
$e|||ng expenses 2,20,000 Renr rece|veo 40,000
3ao oeors '6,000
Pre||m|nar, expenses 20,000
her prol|r ',92,000 ________
'2,5',000 '2,5',000
Tne cosr sneer snous rne cosr ol marer|a|s ar Rs. '04 per un|r ano rne |aoour cosr ar Rs.
60 per un|r. Tne lacror, overneaos are aosoroeo ar 60/ ol |aoour cosr ano aom|n|srrar|on
overneaos ar 20/ ol lacror, cosr. $e|||ng expenses are cnargeo ar Rs. 24 per un|r. Tne
open|ng srock ol l|n|sneo gooos |s va|ueo ar Rs. '80 per un|r.
You are requ|reo ro prepare.
{|j / sraremenr snou|ng prol|r as per 0osr accounrs lor rne ,ear enoeo J'sr Varcn,
2007; ano
{||j / sraremenr snou|ng rne reconc|||ar|on ol prol|r as o|sc|oseo |n 0osr accounrs u|rn
rne prol|r snoun |n F|nanc|a| accounrs. {Va, 2007, '0 marksj
Answer
(|} 8tatement of prof|t as per cost accounts
un|rs Rs.
0per|rg sloc| _ Rs. 180 per ur|l 500 90,000
Cosl ol producl|or _ Rs. 210 per ur|l
(Reler wor||rg Nole 1) 10,000 21,00,000
Tola| 10,500 21,90,000
less. C|os|rg sloc| _ Rs. 210 per ur|l 250 0,000
10,250 21,30,000
3e|||rg experses _ Rs. 21 per ur|l 2,1,000
Cosl ol sa|es 2,Z,000
Prol|l ______ 1,91,000
3a|es 10,250 28,Z0,000
6.73
work|ng Notes:
(1} 8tatement of 6ost (10,000 un|ts}
Tora| cosr 0osr per un|r
Rs. Rs.
Valer|a|s 10,10,000 101.00
wages ,00,000 0.00
Faclory 0verread 0 ol Wages 3,0,000 3.00
Faclory cosl 20,00,000 200.00
Adr|r|slral|ve overread 20 ol laclory cosl 1,00,000 10.00
Tola| cosl 21,00,000 210.00
(2} 8tatement of d|fferences between the two set of accounts:
F|rarc|a| A/c Cosl A/c 0|llererce Rerar|s
Rs. Rs. Rs.
Faclory overread 3,Z9,000 3,0,000 19,000 urder recovery
Adr|r|slral|ve
overread
1,21,000 1,00,000 21,000 urder recovery
3e|||rg experses 2,20,000 2,1,000 2,000 0ver recovery
0per|rg sloc| Z0,000 90,000 20,000 0ver recovery
C|os|rg sloc| 50,000 0,000 10,000 0ver recovery
(||} Reconc|||at|on 8tatement
Rs.
Prol|l as per cosl accourls 1,91,000
less. urder recovery ol 0verread |r Cosl A/c
Faclory 0verread 19,000
Adr|r|slral|ve 0verread 21,000 13,000
/oo. 0ver-recovery ol se|||rg overread |r Cosl A/c 2,000
/oo. 0ver-va|ual|or ol oper|rg sloc| |r Cosl A/c 20,000
less. 0ver-va|ual|or ol c|os|rg sloc| |r Cosl A/c 10,000
/oo. lrcore exc|uded lror Cosl A/c
Cost Accounting
6.74
lrleresl 1,000
Rerl 10,000 11,000
less. Experses exc|uded lror Cosl A/c
8ad deols 1,000
Pre||r|rary experses 20,000 3,000
Prol|l as per l|rarc|a| accourl 1,92,000
0uest|on 38
0|scuss rne reasons lor o|sagreemenr ol prol|rs as per 0osr /ccounr|ng ano F|nanc|a|
/ccounr|ng. {hovemoer 2007, 4 marksj
Answer
Reasors lor d|sagreererl ol prol|ls as per Cosl Accourl|rg ard F|rarc|a| Accourl|rg:
lrems |nc|uoeo |n rne l|nanc|a| accounrs our nor |n 0osr /ccounrs
(|) Appropr|al|or ol prol|ls
(|) lrcore lax
(||) Trarsler lo 0erera| Reserve
(|||) 0|v|derd pa|d
(|v) Arourl Wr|ller oll e.g. goodW|||, pre||r|rary experses, deoerlure d|scourl
elc.
(||) Vallers ol pure l|rarce
(|) lrleresl rece|ved or oar| depos|ls/|rveslrerls
(||) 0|v|derds rece|ved
(|||) Losses or sa|e ol |rveslrerl, ou||d|rg.
(|v) Prol|l or sa|e ol l|xed assels
(v) Trarsler lees
(v|) 0arages/pera|l|es
(|||) llers |rc|uded |r Cosl Accourl|rg
(|) 0pporlur|ly cosl ol ou||d|rg oWred.
(||) lrleresl or cap|la| erp|oyed |r producl|or
(|||) 3a|ary ol propr|elor.
(|v) urder / over aosoroed overreads |r Cosl Accourl|rg
(v) 0|llererces due lo vary|rg oas|s ol va|ual|or ol |rverlory.
6.75
0uest|on 39
Tne lo||ou|ng l|gures nave oeen exrracreo lrom rne cosr recoros ol a manulacrur|ng
compan,.
$rores Rs.
Dpen|ng 3a|ance 6J,000
Purcnases J,J6,000
Transler lrom work-|n-progress ',68,000
lssues ro work-|n-progress J,J6,000
lssues ro Repa|rs ano Va|nrenance 42,000
0el|c|enc|es louno |n $rock rak|ng '2,600
work-|n-progress.
Dpen|ng 3a|ance ',26,000
0|recr wages app||eo ',26,000
Dverneao /pp||eo 5,04,000
0|os|ng 3a|ance 84,000
F|n|sneo Prooucrs.
Enr|re ourpur |s so|o ar a Prol|r ol '0/ on acrua| cosr lrom uork-|n-progress.
Drners. wages |ncurreo Rs. ',47,000; Dverneao |ncurreo Rs. 5,25,000.
lncome lrom |nvesrmenr Rs. 2',000; loss on sa|e ol F|xeo /ssers Rs. 42,000.
0rau rne srores conrro| accounr, uork-|n-progress conrro| accounr, cosr|ng prol|r ano |oss
accounr, prol|r ano |oss accounr ano reconc|||ar|on sraremenr.
{Va, 2008,'0 marksj
Answer
8tores Ledger 6ontro| Account
Rs. Rs.
To 8a|arce c/d 3,000 8y wor|-|r-progress 3,3,000
To 0erera| Ledger
Adjuslrerl A/c 3,3,000
8y 0verread A/c 12,000
To wor|-|r-progress A/c 1,8,000 8y 0verread A/c
(0el|c|ercy Assured as
Norra|) 12,00
Cost Accounting
6.76
_______ 8y 8a|arce c/d 1,Z,100
5,Z,000 5,Z,000
work-|n-progress 6ontro| Account
Rs. Rs.
To 8a|arce o/d 1,2,000 8y 3lores Ledger Corlro| A/c 1,8,000
To 3lores Ledger
Corlro| A/c 3,3,000
8y Cosl|rg Prol|ls & Loss A/c
(F|r|sred goods al cosl
To wor|-|r-progress
A/c 1,2,000
8a|arc|rg l|gure) 8,10,000
To 0verread A/c
(app||ed) 5,01,000
8y 8a|arce c/d 81,000
10,92,000 10,92,000
6ost|ng Prof|t and Loss Account
Rs. Rs.
To wor|-|r-Progress A/c 8,10,000 8y
9,21,000
To 0erera| Ledger
Adjuslrerl A/c (Prol|l)
81,000
0erera| Ledger
Adjuslrerl A/c 3a|es
(8,10,000 81,000)
_______
9,21,000 9,21,000
F|nanc|a| Prof|t and Loss Account
Rs. Rs.
To 0per|rg 3loc| 8y 3a|es
9,21,000
3lores 3,000 8y lrcore lror
|rveslrerl
21,000
wlP 1,2,000 1,89,000 8y C|os|rg 3loc|
To Purcrases 3,3,000 3lores 1,Z,100
To wages 1,1Z,000 wlP 81,000 2,0,100
To 0verread 5,25,000 8y Loss 33,00
To Loss or sa|e ol l|xed
assels 12,000 _______
12,39,000 12,39,000
6.77
Rs.
Prol|l as per Cosl Accourl 81,000
/oo: lrcore lror |rveslrerl 21,000
1,05,000
less: urder aosorpl|or ol overread 9,00
Loss or sa|e ol l|xed assels 12,000 1,38,00
Loss as per l|rarc|a| accourl 33,00
Note: 0el|c|ercy |r sloc| la||rg ray oe lrealed as aororra| |oss ard |l car oe
lrarslerred lror slores |edger Corlro| Accourl lo Cosl|rg Prol|l ard Loss Accourl. Trer
corsequerl|a| crarges |r accourl|rg erlr|es |r overreads Corlro| Accourl ras lo oe
dore.
work|ng Notes:
0verheads 6ontro| Account
Rs. Rs.
To 3lores Ledger Corlro| A/c 12,000 8y wor|-|r-Progress 5,01,000
To 3lores Ledger Corlro| A/c
12,00
8y 8a|arced c/d 9,00
To wages Corlro| A/c
lrd|recl wages
(1,1Z,000 - 1,2,000) 21,000
To 0erera| Ledger Adjuslrerl A/c 5,25,000 _______
,00,00 ,00,00

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