Q. 1
Reconciliation Statement of Cost & Financial Accounting
Particulars
|
Amount
|
Amount
|
Profit as per Cost Account
Add: (i) Office and administrative expenses under
charged in financial A/c
(ii)
Selling and distribution expenses under charged in financial A/c
|
90
140
|
16,270
230
|
Less: (i) Factory expenses overcharged in
financial A/c
(ii)
Debenture interest shown only in financial A/c
|
500
1,000
|
16,500
1,500
|
Profit as per financial A/c
|
|
15,000
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Works/factory overhead (Exp.)
Office and administrative overheads (Exp.)
Selling and distribution overheads (Exp.)
Debenture Interest (Exp.)
|
11,500
4,590
6,640
-
|
12,000
4,500
6,500
1,000
|
(-) 500
(+) 90
(+) 140
(-) 1,000
|
Q. 2
Reconciliation Statement of Cost and Financial Account
Particulars
|
Amount
|
Amount
|
Profit as per Cost Account
Add: (i) Overhead overcharged in cost account
(ii)
Share transfer fess shown only in financial A/c
|
1,500
1,000
|
50,000
2,500
|
Less: (i) Director fees shown only in financial
A/c
(ii)
Doubtful debt shown only in financial A/c
(iii)
Depreciation shown only in financial A/c
(iv)
Provision for Income-tax
|
2,000
5,000
750
15,000
|
52,500
22,750
|
Profit as per financial A/c
|
|
29,750
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Overheads (Exp.)
Director fees (Exp.)
Doubtful debts (Exp.)
Depreciation
Share transfer fees (income)
Provision for Income tax (Exp.)
|
8,500
-
-
-
-
-
|
7,000
2,000
5,000
750
1,000
15,000
|
(+) 1,500
(-) 2,000
(-) 5,000
(-) 750
(+) 1,000
(+) 15,000
|
Q. 3
Reconciliation Statement
Particulars
|
Amount
|
Amount
|
Profit as per financial A/c
Add: (i) Opening Stock of raw material
overcharged in financial A/c
(ii)
Opening Stock of finished goods overcharged in financial A/c
(iii)
Loss of machine shown in financial A/c only.
|
500
3,000
2,000
|
50,000
5,500
|
Less: (i) Closing Stock of raw material
overcharged in financial A/c
(ii)
Closing Stock of finished goods overcharged in financial A/c
(iii)
Dividend received shown only in financial A/c
(iv)
Interest charged shown only in Cost A/c
|
1,300
2,000
1,000
8,000
|
55,500
12,300
|
Profit as per Cost Account
|
|
43,200
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
(i) Opening stock of raw material (Exp.)
(ii) Closing stock of raw material (Income)
(iii) Opening stock of finished goods (Exp.)
(iv) Closing stock of finished goods (Income)
(v) Dividend (Income)
(vi) Loss (Exp.)
(vii) Interest (Exp.)
|
5,500
5,300
15,000
16,000
1,000
2,000
-
|
5,000
4,000
12,000
14,000
-
-
8,000
|
(+) 500
(-) 1,300
(+) 3,000
(-) 2,000
(-) 1,000
(+) 2,000
(-) 8,000
|
Q. 4
Reconciliation of Cost and Financial Accounting
Particulars
|
Amount
|
Amount
|
Profit as per Cost A/c
Add: (i) Interest charged in cost account but
ignored in financial A/c
(ii)
Overhead charged in financial A/c but recovered in Cost A/c
|
6,000
4,800
|
1,65,300
10,800
|
Less: (i) Opening stock of material overcharged
in financial A/c
(ii)
Opening stock of work-in-progress overcharged in financial A/c
(iii)
Closing stock of material overcharged in Cost A/c
(iv)
Closing stock of work-in-progress overcharged in Cost A/c
(v)
Interest remitted in financial A/c but ignored in Cost A/c
(vi)
Preliminary Expenses shown only in financial A/c
|
400
1,000
1,600
800
800
13,000
|
1,76,100
17,600
|
Profit as per financial A/c
|
|
1,58,500
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Opening stock of material (Exp.)
Opening stock of work-in-progress (Exp.)
Closing stock of material (Income)
Closing stock of work-in-progress (Income)
Interest remitted (Exp.)
Interest charged (Exp.)
Preliminary Expenses (Exp.)
Overhead (Exp.)
|
32,600
20,000
36,000
16,000
-
6,000
-
1,26,000
|
33,000
21,000
34,400
15,200
800
-
13,000
1,21,200
|
(-) 400
(-) 1,000
(-) 1,600
(-) 800
(-) 800
(+) 6,000
(-) 13,000
(+) 4,800
|
Q. 5
Reconciliation Statement of Cost and Financial Account
Particulars
|
Amount
|
Amount
|
Profit as per Cost A/c
Add: (i) Selling expenses over-recovered in cost
A/c
(ii)
Discount received shown only in financial A/c
(iii)
Profit on sale of land shown only in financial A/c
|
400
260
2,340
|
19,770
3,000
|
Less: (i) Work expenses overcharged in financial
A/c
(ii)
Administrative expenses overcharged in financial A/c
(iii)
Depreciation is overcharged in financial A/c
(iv)
Closing stock is overcharged in Cost A/c
|
1,630
340
300
200
|
22,770
2,470
|
Profit as per financial A/c
|
|
20,300
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Closing stock (Income)
Work expenses (Exp.)
Selling Expenses (Exp.)
Administrative Expenses (Exp.)
Depreciation (Exp.)
Discount received (Income)
Profit on sale of land (Income)
|
4,280
10,500
7,500
5,000
800
-
-
|
4,080
12,130
7,100
5,340
1,100
260
2,340
|
(-) 200
(-) 1,630
(+) 400
(-) 340
(-) 300
(+) 260
(+) 2,340
|
Q. 6
Cost Sheet
Particulars
|
Amount
|
Opening Stock
Add: Purchase
|
2,47,179
82,154
|
Raw material consumed during the year
Add: Direct Wages
Less Closing Stock
|
3,29,333
24,867
78,197
|
Prime Cost
Add: Factory overheads
|
2,76,003
19,714
|
Work Cost
Add: Administrative overheads (3,46,500 x 3%)
|
2,95,717
10,395
|
Cost of production
Add: Selling and distribution overheads (3,46,500
x 5%)
|
3,06,112
17,325
|
Total Cost
Add: Profit
|
3,23,437
23,063
|
Sales
|
3,46,500
|
Reconciliation Statement of Cost & Financial Accounting
Particulars
|
Amount
|
Amount
|
Profit as per Cost A/c
Add: (i) Direct wages under-charged in financial
A/c
(ii)
Administration expenses under-charged in financial A/c
(iii)
Sundry income shown only in financial A/c
|
1,734
550
316
|
23,063
2,600
|
Less: (i) Closing stock is under-charged in
financial A/c
(ii)
Factory overhead is overcharged in financial A/c
(iii)
Selling expenses overcharged in financial A/c
|
3,076
1,112
4,851
|
25,663
9,039
|
Profit as per financial A/c
|
|
16,624
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Closing stock (Income)
Direct wages (Exp.)
Factory overheads (Exp.)
Administrative Expenses (Exp.)
Selling Expenses (Exp.)
Sundry Income
|
78,197
24,867
19,714
10,395
17,325
-
|
75,121
23,133
20,826
9,845
22,176
316
|
(-) 3,076
(+) 1,734
(-) 1,112
(+) 550
(-) 4,851
(+) 316
|
Q. 7
Reconciliation Statement of Cost & Financial Account
Particulars
|
Amount
|
Amount
|
Loss as per Cost A/c
Add: (i) Administrative expenses undercharged in
financial A/c
(ii)
Depreciation undercharged in financial A/c
(iii)
Interest received shown in financial A/c only
(iv)
Bank interest shown only in financial A/c
(v)
Store adjustment shown only in financial A/c
(iv)
Interest charged shown only in Cost A/c
|
1,700
1,300
8,000
750
475
6,000
|
(1,72,400)
18,225
|
Less: (i) preliminary expenses shown only in
financial A/c
(ii)
Works expenses overcharged in financial A/c
(iii)
Obsolescence Loss charged shown in financial A/c only
(iv)
Income tax provided in financial books only
(v)
Opening stock overcharged in financial A/c
(vi)
Closing stock undercharged in financial A/c
(vii)
Provision for doubtful debts shown in financial A/c only
|
800
3,120
5,700
40,300
1,400
2,400
150
|
(1,54,175)
53,870
|
Loss as per financial A/c
|
|
2,08,045
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Works overhead
Administrative overheads
Depreciation
Interest received
Obsolescence
Income tax
Bank interest
Stores adjustment
Opening Stock
Closing Stock
Preliminary Expenses
Interest
Provision for doubtful debts
|
-
+
12,500
-
-
-
-
-
52,600
52,000
-
6,000
-
|
+
-
11,200
8,000
5,700
40,300
750
475
54,000
49,600
800
-
150
|
(-) 3,120
(+) 1,700
(+) 1,300
(+) 8,000
(-) 5,700
(-) 40,300
(+) 750
(+) 475
(-) 1,400
(-) 2,400
(-) 800
(+) 6,000
(-) 150
|
Q. 8
Cost Sheet
Particulars
|
Amount
|
Amount
|
Opening Stock of raw material
Add: Purchase of raw material
Less: Closing Stock of raw material
|
4,000
24,000
(6,000)
|
|
Raw Material consumed during the year
Add: Wages
|
22,000
1,000
|
|
Prime Cost
Add: Factory overheads (25% on Prime Cost)
|
|
32,000
8,000
|
Factory Cost
Add: Office and administrative overheads
(75%
on factory exp.) (8,000 x 75%)
|
|
40,000
6,000
|
Cost of production
Add: Opening stock of finished goods
Less: Closing stock of finished goods
|
|
46,000
8,000
(2,000)
|
Cost of goods sold
Add: Profit (52,000 x 25%)
|
|
52,000
13,000
|
Sales
|
|
65,000
|
P/L A/c
Particulars
|
Amount
|
Particulars
|
Amount
|
To Opening stock of Raw Material
To Purchase of Raw Material
To Wages
To Opening stock of finished goods
To Work expenses
To Office expenses
To Net Profit
|
4,000
24,000
10,000
8,000
7,750
6,100
13,150
|
By Sales
By Closing stock of Raw Material
By Closing stock of finished goods
|
65,000
6,000
2,000
|
|
73,000
|
|
73,000
|
Reconciliation Statement of Cost & Financial A/c
Particulars
|
Amount
|
Amount
|
Profit as per Cost A/c
Add: (i) Works expenses undercharged in financial
A/c
|
|
13,000
250
|
Less: (i) Office expenses overcharged in
financial A/c
|
|
13,250
100
|
Profit as per financial A/c
|
|
13,150
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Works Expenses
Office Expenses
|
8,000
6,000
|
7,750
6,100
|
(+) 250
(-) 100
|
Q. 9
Cost Sheet
Particulars
|
Amount
|
Material Purchase (1,500 x 80)
Wages (900 x 80)
|
1,20,000
72,000
|
Prime Cost
Add: Works overhead (60% of wages)
|
1,92,000
43,200
|
Works Cost
Add: Office overhead (20% of works cost)
|
2,35,200
47,040
|
Cost of Production
Add: Profit
|
2,82,240
57,760
|
Sales
|
3,40,000
|
Reconciliation of Cost & Financial Account
Particulars
|
Amount
|
Amount
|
Profit as per Cost A/c
Add: (i) Works expenses undercharged in financial
A/c
|
|
57,760
200
|
Less: (i) Office expenses overcharged in
financial A/c
|
|
57,960
960
|
Profit as per financial A/c
|
|
57,000
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Works Expenses
Office Expenses
|
43,200
47,040
|
43,000
48,000
|
(+) 200
(-) 960
|
Q. 10
Cost Sheet
Particulars
|
Amount
|
Amount
|
Purchase of Material
Less: Closing stock of material
|
3,000
500
|
|
Raw Material consumed during the year
Add: Direct Wages
|
|
2,500
1,000
|
Prime cost
Add: Factory overhead (300% of direct wages)
|
|
3,500
3,000
|
Works Cost
Add: Selling overheads
|
|
6,500
1,500
|
Cost of production
Add: Distribution overhead
|
|
8,000
700
|
Total Cost
Add: Profit
|
|
8,700
11,300
|
Sales
|
|
20,000
|
Trading and Profit and Loss Account
Particulars
|
Amount
|
Particulars
|
Amount
|
To Purchase of Material
To Direct Wages
To Indirect Wages
To Indirect Expenses
To Bad debts
To Interest on overdraft
To Selling Expenses
To Distribution Expenses
To Net Profit
|
3,000
1,000
500
2,000
100
50
2,000
1,000
11,850
|
By Sales
By Closing stock of Raw Material
By Profit on sale of assets
|
20,000
500
1,000
|
|
21,500
|
|
21,500
|
Reconciliation of Cost & Financial A/c
Particulars
|
Amount
|
Amount
|
Profit as per Cost A/c
Add: (i) Manufacturing expenses undercharged in
financial A/c
(ii)
Profit on sale of assets shown only in financial A/c
|
500
1,000
|
11,300
1,500
|
Less: (i) Selling expenses overcharged in
financial A/c
(ii)
Distribution expenses overcharged in financial A/c
(iii)
Interest on overdraft shown only in financial A/c
(iv)
Bad debts shown only in financial A/c
|
500
300
50
100
|
950
|
|
|
11,850
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Manufacturing overhead
Selling overhead
Distribution expenses
Interest on overdraft
Profit on sale of assets
Bad debts
|
3,000
1,500
700
-
-
-
|
2,500
2,000
1,000
50
1,000
100
|
(+) 500
(-) 500
(-) 300
(-) 50
(+) 1,000
(-) 100
|
Q. 11
Cost Sheet
|
Unit-200
|
Unit-500
|
|
||
Particulars
|
A
|
B
|
Total
|
||
|
Per
|
Total
|
Per
|
Total
|
|
Material
Add: Direct Wages
|
12.5
10
|
2,500
2,000
|
7.50
6
|
3,750
3,000
|
6,250
5,000
|
Prime cost
Add: Works overhead
(100%
on direct wages.)
|
22.50
10
|
4,500
2,000
|
13.50
6
|
6,750
3,000
|
11,250
5,000
|
Works Cost
Add: Office & administrative overhead
(25%
on works cost)
|
|
6,500
1,625
|
|
9,750
2437.5
|
16,250
4062.5
|
Cost of Production
Add: Profit
|
|
8,125
1,875
|
|
1210.75
2812.5
|
20312.5
4687.5
|
Sales
|
50
|
10,000
|
30
|
15,000
|
25,000
|
Financial Profit & Loss A/c
Particulars
|
Amount
|
Particulars
|
Amount
|
To Material
A
= 12.50 x 200
B
= 7.50 x 500
To Direct Wages
A
= 10 x 200
B
= 6 x 500
To Works Expenses
To Office Expenses
To Net Profit
|
2,500
3,750
2,000
3,000
4,800
4,200
4,750
|
By Sales
A
= Rs. 50 x 200
B
= Rs. 30 x 500
|
10,000
15,000
|
|
25,000
|
|
25,000
|
Reconciliation Statement
Particulars
|
Amount
|
Profit as per Cost A/c
Add: (i) Work expenses undercharged in financial
A/c
|
4687.5
200
|
Less: Office and administrative expenses
overcharged in financial A/c
|
4887.5
137.5
|
Profit as per financial A/c
|
4,750
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Works Expenses
Office & administrative Expenses
|
5,000
4062.5
|
4,800
4,200
|
(+) 200
(-) 137.5
|
Q. 12
Cost Sheet
|
Unit-160
|
Unit-95
|
|
||
Particulars
|
Janta
|
Deluxe
|
Total
|
||
|
Per
|
Total
|
Per
|
Total
|
|
Material
Labour
|
28
48
|
4,480
7,680
|
32
58
|
3,040
5,510
|
7,520
13,190
|
Prime cost
Add: Factory overhead
(100%
on labour.)
|
76
48
|
12,160
7,680
|
76
58
|
8,550
5,510
|
20,710
13,190
|
Works Cost
Add: Office & administrative overhead
(25%
on works cost)
|
|
19,840
4,960
|
|
14,060
3,515
|
33,900
8,475
|
Cost of Production
Add: Profit
|
|
24,800
4,000
|
|
17,575
5,225
|
42,375
9,225
|
Sales
|
180
|
28,800
|
240
|
22,800
|
51,610
|
Financial Profit & Loss A/c
Particulars
|
Amount
|
Particulars
|
Amount
|
To Material
Janta
= 28 x 160
Deluxe
= 32 x 95
To Labour
Janta
= 48 x 160
Deluxe
= 58 x 95
To Works expenses
To Office expenses
To Net Profit
|
4,480
3,040
7,680
5,510
16,800
6,220
7,870
|
By Sales
Janta
= 180 x 160
Deluxe
= 240 x 95
|
28,800
22,800
|
|
51,600
|
|
51,600
|
Reconciliation Statement
Particulars
|
Amount
|
Profit as per Cost A/c
Add: (i) Office expenses undercharged in
financial A/c
|
9,225
2,255
|
Less: Works expenses overcharged in financial A/c
|
11,480
3,610
|
Profit as per financial A/c
|
7,870
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Works Expenses
Office Expenses
|
13,190
8,475
|
16,800
6,220
|
(-) 3,610
(+) 2,255
|
Q. 14
Cost Sheet
Particulars
|
Amount
|
Direct Material
Direct Wages
|
1,00,000
50,000
|
Prime Cost
Add: Works overhead:
Fixed =
(18,000/1,50,000*1,00,000)
12,000
Variable
12,000
|
1,50,000
24,000
|
Works Cost
Add: Office & administrative overhead
Fixed =
(9,000/1,50,000*1,00,000)
|
1,74,000
6,000
|
Cost of Production
Add: Selling & Distribution overhead
Fixed =
(3,000/1,50,000*1,00,000)
2,000
Variable 3,000
|
1,80,000
5,000
|
Total cost
Add: Profit as per Cost Accounting
|
1,85,000
15,000
|
Sales
|
2,00,000
|
Reconciliation Statement
Particulars
|
Amount
|
Amount
|
Profit as per Cost A/c
Less: (i) Works expenses overcharged in financial
A/c
(ii)
Office expenses overcharged in financial A/c
(iii)
Selling and distribution expenses overcharged in financial A/c
|
6,000
3,000
1,000
|
15,000
10,000
|
Profit as per financial A/c
|
|
5,000
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Works Expenses
Office Expenses
Selling & distribution expenses
|
24,000
6,000
5,000
|
30,000
9,000
6,000
|
(-) 6,000
(-) 3,000
(-) 1,000
|
Q. 15
Cost Sheet
Particulars
|
Amount
|
Material
Direct Wages
|
1,50,000
75,000
|
Prime Cost
Add: Factory overhead:
Fixed =
(25,000/1,25,000*1,50,000)
30,000
Variable 20,000
|
2,25,000
50,000
|
Works Cost
Add: Office & administrative overhead
Fixed =
(13,500/1,25,000*1,50,000)
|
2,75,000
16,200
|
Cost of Production
Add: Selling & Distribution overhead
Fixed =
(3,000/1,25,000*1,50,000)
3,600
Variable
6,000
|
2,91,200
9,600
|
Total cost
Add: Profit as per Cost Accounting
|
3,00,800
19,200
|
Sales
|
3,20,000
|
Reconciliation Statement
Particulars
|
Amount
|
Amount
|
Profit as per Cost A/c
Add: (i) Factory expenses undercharged in
financial A/c
(ii)
Office & administrative expenses undercharged in financial A/c
(iii)
Selling and distribution expenses undercharged in financial A/c
|
5,000
2,700
600
|
19,200
8,300
|
Profit as per financial A/c
|
|
27,500
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Factory Expenses
Office & administrative Expenses
Selling & distribution expenses
|
50,000
16,200
9,600
|
45,000
13,500
9,000
|
(+) 5,000
(+) 2,700
(+) 600
|
Q. 16
Cost Sheet
Particulars
|
Amount
|
Material
Wages
|
2,00,000
1,00,000
|
Prime Cost
Add: Factory overhead:
Fixed = (36,000/16,000*20,000) 45,000
Variable
24,000
|
3,00,000
69,000
|
Works Cost
Add: Administrative overhead
Fixed = (18,000/16,000*20,000)
|
3,69,000
22,500
|
Cost of Production
Add: Selling & Distribution overhead
Fixed = (6,000/16,000*20,000) 7,500
Variable
6,000
|
3,91,500
13,500
|
Total cost
Less: Loss
|
4,05,000
(5,000)
|
Sales
|
4,00,000
|
Financial Profit & Loss A/c
Particulars
|
Amount
|
Particulars
|
Amount
|
To Material
To Wages
To Factory overhead
To Selling & distribution
To Administration
To Net Profit
|
2,00,000
1,00,000
60,000
12,000
18,000
10,000
|
By Sales
|
4,00,000
|
|
4,00,000
|
|
4,00,000
|
Reconciliation Statement
Particulars
|
Amount
|
Amount
|
Loss as per Cost A/c
Add: (i) Factory expenses undercharged in
financial A/c
(ii)
Administrative expenses undercharged in financial A/c
(iii)
Selling and distribution expenses undercharged in financial A/c
|
9,000
4,500
1,500
|
(5,000)
15,000
|
Profit as per financial A/c
|
|
10,000
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Factory overhead
Administrative overhead
Selling & distribution overhead
|
69,000
22,500
13,500
|
60,000
18,000
12,000
|
(+) 9,000
(+) 4,500
(+) 1,500
|
Q. 17
Cost Sheet
Particulars
|
Amount
|
Amount
|
Direct Material Consumption
Direct Wages
|
|
2,80,000
1,00,000
|
Prime Cost
Add: Factory overhead
|
|
3,80,000
76,000
|
Work Cost incurred
Less: Closing Stock of work-in-progress
|
|
4,56,000
80,000
|
Works Cost
Add: Office and administrative overhead
|
1,60,000
|
3,76,000
4,80,000
|
Cost of Production
Add: Opening Stock of finished goods
Less: Closing Stock of finished goods
(8,56,000/1,60,000*40,000)
|
1,60,000
-
40,000
|
8,56,000
-
2,14,000
|
Cost of goods sold
Add: Selling & distribution overhead
(1,20,000 x 4)
|
1,20,000
1,20,000
|
6,42,000
4,80,000
|
Total Cost
Less: Loss
|
2,40,000
1,20,000
|
11,22,000
(4,22,000)
|
Sale
|
1,20,000
|
7,00,000
|
Financial Profit & Loss A/c
Particulars
|
Amount
|
Particulars
|
Amount
|
To Material
To Direct Wages
To Factory overhead
To Administration overhead
To Selling & distribution
To Bad debts
To Preliminary Exp. (Written off)
To Legal charge
|
2,50,000
1,00,000
3,80,000
2,50,000
4,80,000
20,000
10,000
5,000
|
By Sales
By Dividend received
By Interest on deposit received
By Closing stock of finished goods
By Closing stock of work-in-progress
Be Net loss
|
7,00,000
50,000
10,000
1,20,000
80,000
5,35,000
|
|
14,95,000
|
|
14,95,000
|
Reconciliation Statement
Particulars
|
Amount
|
Amount
|
Loss as per Cost A/c
Add: (i) Direct material undercharged in
financial A/c
(ii)
Administrative expenses undercharged in financial A/c
(iii)
Dividend received shown only in financial A/c
(iii)
Interest on deposit received shown only in financial A/c
|
30,000
2,30,000
50,000
10,000
|
(4,22,000)
3,20,000
|
Less: (i) Factory Expenses overcharged in
financial A/c
(ii)
Bad debts shown only in financial A/c
(iii)
Preliminary expenses shown only in financial A/c
(iv)
Legal charges shown only in financial A/c
(v)
Closing stock of finished goods undercharged in financial A/c
|
3,04,000
20,000
10,000
5,000
94,000
|
(1,02,000)
(4,33,000)
|
Loss as per financial A/c
|
|
(5,35,000)
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Direct Material
Factory overhead
Administrative overhead
Selling & distribution overhead
Bad debts
Preliminary Exp.
Legal charges
Dividend received
Interest on deposit received
Closing stock of finished goods
Closing stock of work-in-progress
|
2,80,000
76,000
4,80,000
4,80,000
-
-
-
-
-
2,14,000
80,000
|
2,50,000
3,80,000
2,50,000
4,80,000
20,000
10,000
5,000
50,000
10,000
1,20,000
80,000
|
(+) 30,000
(-) 3,04,000
(+) 2,30,000
-
(-) 20,000
(-) 10,000
(-) 5,000
(+) 50,000
(+) 10,000
(-) 94,000
-
|
Q. 18
Cost Sheet
Particulars
|
Units
|
Amount
|
Direct Material
Direct Wages
|
|
2,000
1,000
|
Prime Cost
Add: Factory overhead (100% of wages)
|
|
3,000
1,000
|
Factory cost incurred
Less: Closing stock of work-in-progress
(60+40+40)
|
|
4,000
140
|
Factory Cost
Add: Office & administrative overheads (10%
of factory cost)
|
|
3,860
386
|
Cost of Production
Less: Closing stock of finished goods
(4,246/21,230*1,230)
|
21,230
1,230
|
4,246
246
|
Cost of goods sold
Add: Selling & distribution overhead (20,000
x 20)
|
20,000
|
4,000
400
|
Total Cost
Add: Profit
|
20,000
|
4,400
600
|
Sales
|
20,000
|
5,000
|
Production = Sales + Closing Stock – Opening Stock
= 20,000 + 1,230 – NIL
=21,230
Financial Profit & Loss A/c
Particulars
|
Amount
|
Particulars
|
Amount
|
To Material
To Wages
To Factory overhead
To Administration overhead
To Selling & distribution overhead
To Goodwill written off
To Interest paid on capital
To Net Profit
|
5,000
2,000
900
520
360
400
40
220
|
By Sales
By Closing Stock of work-in-progress
Materials 60
Labour 40
Factory
overhead 40
By Closing finished goods
|
5,000
140
300
|
|
5,440
|
|
5,440
|
Reconciliation Statement
Particulars
|
Amount
|
Amount
|
Profit as per Cost A/c
Add: (i) Factory overhead undercharged in
financial A/c
(ii)
Closing stock finished goods overcharged in financial A/c
(iii)
S/D overhead overcharged in CA
|
100
54
40
|
600
194
|
Less: (i) Office & administrative overhead
undercharged in CA
(ii)
Goodwill written off shown only in financial A/c
(iii)
Interest paid on capital shown only in financial A/c
|
134
400
40
|
794
574
|
Profit as per financial A/c
|
|
220
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Factory overhead
Administrative overhead
Selling & distribution overhead
Goodwill
Interest
Closing stock of finished goods
|
1,000
386
400
-
-
246
|
900
520
360
400
40
300
|
(+) 100
(-) 134
(+) 40
(-) 400
(-) 40
(+)54
|
Q. 19
Cost Sheet
Particulars
|
Units
|
Amount
|
Raw Material consumed (104 x 10,000)
Direct Wages (60 x 10,000)
|
|
10,40,000
6,00,000
|
Prime Cost
Add: Factory overhead (60% of labour cost)
|
|
16,40,000
3,60,000
|
Works Cost
Add: Office & administrative overhead
(20,00,000 x 20%)
|
|
20,00,000
4,00,000
|
Cost of Production
Add: Opening stock of finished goods (500 x 180)
|
10,000
500
|
24,00,000
90,000
|
Less: Closing stock of finished goods (240 x 250)
|
10,500
250
|
24,90,000
60,000
|
Cost of goods sold
Add: Selling & distribution overhead
|
10,250
|
24,30,000
2,46,000
|
Total Cost
Add: Profit
|
10,250
|
26,76,000
1,94,000
|
Sales
|
10,250
|
28,70,000
|
Production = Sales + Closing stock – Opening stock = 12,250 + 250 – 500 =10,000
Reconciliation Statement
Particulars
|
Amount
|
Amount
|
Profit as per Cost A/c
Add: (i) Rent received shown only in financial
A/c
(ii)
Opening stock of finished goods undercharged in financial A/c
(iii)
Selling & distribution expenses undercharged in financial A/c
(iv)
Interest shown only in financial A/c
|
40,000
20,000
26,000
1,000
|
1,94,000
87,000
|
Less: (i) Factory expenses overcharged in
financial A/c
(ii)
Administrative expenses overcharged in financial A/c
(iii)
Closing stock of finished goods undercharged in financial A/c
(iv)
Bad debts shown only in financial A/c
(v)
Preliminary expenses shown only in financial A/c
|
19,000
24,000
10,000
16,000
20,000
|
2,81,000
89,000
|
Profit as per financial A/c
|
|
19,200
|
Rough Calculation:
|
Cost Account
|
Financial Account
|
Differences
|
Factory overhead
Administrative overhead
Opening stock of finished goods
Closing stock of finished goods
Selling & distribution overhead
Bad debts
Preliminary exp.
Interest
Rent Received
|
3,60,000
4,00,000
90,000
60,000
2,46,000
-
-
-
-
|
3,79,000
4,24,000
70,000
50,000
2,20,000
16,000
20,000
1,000
40,000
|
-19,000
+24,000
+20,000
-10,000
+26,000
-16,000
-20,000
+1,000
+ 40,000
|