(it) Present a statement reconcflmg the profit as per oostfng records with the profit as p_lf ~

7 80 000
Rs

100000

12000
85000
74 375
32 000

300000

295000
4 50 000

61000

38667
2080000
18 000
45000

41250

The company values work-in-process at factory cost for both Financial and Cost Profit Reporting

[CA ~ 20l1l)J
The flnanoal books of a company reveal the followsng data for the year ended 31st March 2007

Selling and d1str1bution overheads are charged at Rs.4 per unit sold

Prepare Statements for the year ended 31st March, 2007 show
Administration o\lerheads are recovered at 20% of factory cost.

Opening Stock of fimshed goods Is valued at Rs 104 per unit

Faclory overheads are absorbed at 60% of direct wages
Wor.k..Jl1)f'09ress 01 04 2006 to 31 03 2007

the profit as per financial records

Cloalng Stock: Fin stled goods 375 ul"llts

the profit as per costing records

The cost records provide as under.
~Ut.tg and Olstrlbut1on Overheads

Work-m-progress
Administration overheads
Finished goods 875 units

Raw matenals consumed

Factory overheads

8afes 14 500 Units

O,,.,,lng Stock:

lntiJrest n,celved
RentreceiVed
DJWlend pald
orred Labour

Reoords.
Particulars

Bad Debts

Rt,qultfld.
Goodwlll

•
-

(
1,51,250
47,375 Gross Profit cld
Factory overheads 125
53 000 Interest
Administration overheads 5,000
27,500 Rent received
Selling expenses
2,000
Bad Debts
2,500
Preliminary expenses
Net Profit 24-ropo 1,56,375
1,56,375
In the costing records, Factory Overhead 1s charged at 100% of Wages, Admin1strabon Ovemead cost of materials as Rs. 13 per
un,t; (ii) the labour cost as
10% of factory cost and Selling and D1stnbut1on Overhead at the rate of Rs 20 per unit sold The cost sheet shows (i) the rbed at 60% of labour cost; (iv)
the
factory overheads are abso are
Rs 7 50 per un,t, (11i) the ry cost; (v) selling expenses
Required: Prepare a Statement reconciling the Profit as per Cost Records with the profit as pe are absorbed at 20% of facto 22 SO per
Financial Records. [8 Com J adm1n1strat on overheads hed goods 1s valued at Rs
Solut on charged at Rs 3 per un,t,
(vi) the opening stock of finis
-.- unit.
You are required to prepare: and the cost of product on
by
the number of unUs produced
) The cost sheet showing
and in total.
eleme ts of costs, per unit ember.
for the year ended 31 Dec
it or loss as per cost accounts
f - a statement of prof
1993 shown by the cost accoun s
nciliat,on of profit or loss as
111 e s atement showing the reco
-
cial accounts.
he profit as shown by the finan
Question 26
Mis Sellwe/1 Lid hes furnished you the following information from the tinanc,a/ boo~s tor
the year ended 3111 December, 1993~
Profit & Loss Account
_..(211..QOOIIIIII) For the year ended 311 ' December, 1993 Rs.
.... o- ■ Operung stock of finished goods.
Rs.
Sales 10, 250 units
B, 750 Clos,ng stock of fin;shed goods
3,58 750
Ml d110o ■ 500 units @Rs. 17 50 each 6 250
1111d anOJ ■tta ■ dl 1, 30,000 250 units @ Rs. 25 each
thad GocG1( 1.230
Mef enars consumed
75,000
....
"+_,_-In ptJiPI I I:
laMut'

Wages
Gross Profit c!d
1,51,250
~.65,000
3,65,0GO
Fw*;ry O.at:ea d
Goc,dl.a Wt off
lnlfnlt paki on captlal
 0 3
The following figures are ava1 able from financial acco nts for the year ended 3 s March 20X1
Rs 5000
Direct Matena Consun1ption Rs 2 50 000 Legal Charges
50,000 f 11 wing Information and reque ts you to rep re s
Direct Wages 00 000 0Mdend Reoe ved
10,000 1 I Cost Ac:counls iJ1as arnved al Profit & Lo"s A coun or
Factory Overheads 3 80 000 Interest on Oepos t Rece :ed
Adm n stration Overheads 2 50,000 Sa es 1 20,000 units 7 00 000
Pro t & loss Account for the year ended 31 t 20X1
Se ling and D stnbu~on Overheads 4 80.000 C SHl Sock:
Bad Debts 20 000 ;:,hed Stock - 40 000 units 20,0
P 1nary Expenses ( tten off) 10 O rk-tn-progress 80000 Sales 10,250 un1ls
e s acco n..s revea 17,5 0 Clos ng Stock
h 250 un lS @ Rs 50
□-rect atenal Cons • n. Rs 2 80 000. 2 60, 00
oto 0V ead recovered al O on Pnme Cost 1 50
Ad stra o Overhead al Rs 3 per unit of produdio
Set d D s b on Ove head at Rs 4 per un t sold
eq red: P _.,..._re
P-.. and Loss Acoounl
and Loss Account
rec;)(1CI the profits d"sclosed by t e Costing Profit and Loss Accoun and F ~"1""1!51
ACOJ nt.
A nur turing comp•ony di ~loscd a not los of R .3147 000 oc. par their cost accounts for the y.,
nd d Mu h 31, 2007 TI10 11,u1nu1al coounts huw var disolo ed a net loss of Rs 510,000 for the
A•""1'""d TI, fbllow1ng 1nfo11nnl1on wos rocolvod as a r ;;,LIii of scrutiny of the figures o( both the
,x:n~ ot ocounts,
13.12 Tuls1an's Cost Accountlng for CA~PCC
Rs
are recovered at Rs 6 per unit produced Selling and D1str1bution Overheads are recovered at Rs 8 (i acttiry Ov rho d under absorbed 40000
per unit sold (11) Aclmtnl tmt,on Ovc rh ds ovcr-absorod 60
Required: Prepare the Profit and Loss Staternent both as per financial records and as per cost (II) Depraclallon ch 1rg d Ii, Financial Account~ 3 000
reco ds. Reconc,le the profits as per the two records [CA] ( v) O proaotron 1..harg d In Cost Accounts 2 75000
Profit and Loss Account {As Per Fmancral Records) (v) Int st 011 11,vc tn,onts not tnoluded ln Cost Accounts 96000
Solution (v ) lncom tax provided 54000
(,,) lnte st on loon funds In Financial Accounts 2 4J.Wl#V
(vl11) Transf r rees (credit In financial books) 4000
(tx) Store dJustn,ant (credit 1n financial books) 4
(x) D1VJdend received 32 000
Required: Prep re a Memorandum Reconcfllation Account. CA 'May, ,cuv,,111
l,LU UUU
actur1.ig Firm b PROBLEM 8
The Folowing figures have been extrac
ted from the Anandal Accounts of a Manuf
the first year of its operation: Ra The following tnformation s available from the financial books of a cornpany having a normaJ
50,00.000 producuon capacity of 60 000 units for the year ended 31st March, 20X1
Direct Material Consumption 30,00,000 (i) Sales Rs 1O00 000 (50 ooo unrts
OireclWeges 16,00,000
7,00,000 (it There was no opening and closing stock of fintShed units
Fador y OYerhead$
Adminastrattve Overheads 9,80.000 ("'1 D1reot Material and Direct Wages cost were Rs. 5,00 ooo and Rs. 2 so ooo re pee e(¥
Setting and Distribution Overheads 80.000 1v Actual Factory Expenses were Rs 1 50 000 of which 60°/o are fixed
Bad Debts 40.000 (v) Actual Adm1n1strabve Expenses were Rs 45,000 whtoh are complete y fix
Prefmmary Expenses wntten off 10,000 vi Actua Se hng and Distribution Expenses were Rs. 30,000 of which 40°/o are frx.ed
Lega Charges 1,00.000 v nterest and d1v1dends received Rs. 15.000
D vktends Received 20,000 You are required to :
In erest Recefv ed on Deposits 120,00,000
a F nd ou profit as per financial books for tpe year ended 31st March 20X1
Sales (1,20 000 units)
Closing Stocks: 3,20,000 b Prepare the cost sheet and ascertain the profit as per cost accounts for the year e ded 31
Ftntshed Goods (4,000 unlts) 2,40,000 arch 20X assuming that the indirect expenses are absorbed on l e b1~ of
Work rr,progress mption was
reveal that the dir~+ material consu produ on capa01ty and and cost bo
The cost accounts for the same period Prtme Cos Adm• tstrabon Overhe
ads c p epare a statement reconciling profits shown by financ1a
recovered at 20%
Rs 56,00 000 Factory Overheads are
 8 Dlrodl Wfl,98 80.012
c 0 11 001 Gxpon fJ,334
O p111 n0 ~ t (A" B ~ C) 2,83,218
E procJuction 0v mo d (2!.,0"/4 or Rs. AO 072) 2.00, 180
F Add Opening WIP 24,146
G LC 9 Clo lng WtP 24,020 PROBLEM 1
rt Work C0t,1 (E F G) 4,83,524 Prepare a Reconciliation Slaten1ent rron1 lhe following lnforn1allon :
I Admln tr&llon Expcm @ f 2 s r unit on 1 ,,7410 unttf 31 480
Work-ln..Progress Ledger ,C ontrol .Account (Cost Books)
J Co•,! of GOOd Produced ( H • IJ
K Add Op nlng Stoek Of f lnl h d GOOd (2,000 units)
6 1 ,004
63238
- Particulars Rs
Parllcu/ars Rs.
1.,, L!J:; cro
In s1oek. of f lnl h ct Good (2,600 µnl ) 65,020
To Raw M:iterial Used 24,000 By Cost of:
M Co~ of good old (16 640 ufrlll J ( J • K L) 6, 13 222 60,000
To Direct Labour 30.000 Contracts ccnlpleted
N Soll1ng & DI ribut on Exp n @ R 4 p( r unit on 16,640 unlto 62 60
To Direct Expenses 12,000 Finished goods 54,000
O Co t of le ( M ..., N) 5 By Balance (Being work-in-progress) 6,000
To Stores usea 18,000
P. P1•ofil 4 18
To Works Over.head 21,000
O Sal 6,2 00 To Office Overhead 15,000
Memo ndum Account re ·onoltlng 1h ~,,om hown In Iha Finan, fal & Co t Accoufit for th Y ar ·1.20,000 1,20,000
ellded 31 llow
Cost Summary
R ---
f t Profit as hown n tho Rarficulars Cost Price Contract Price Profit
48 920 Cost AecOunt Rs. Rs.
Val1Jat on Dirt ronoo In Slook ValuatJon
Opening Stock Contracts completed 60,000 90,000 30,000
360 Raw Mat rlal Sales of finfshed goods 42,000 48.000 6,000
652 Ctoslng Stock
F1ntehed GoorJ 36.000
Discount Reoolved
WI? 1.720 Inter t & Dividend Roo
21 578 S II 01 t11buton E.Jcpen
Ov orb d)
Pro Ov m d
(Ov orbed)
• - - -
■
- -- - -Reconciliation of Cost Financial Accounts 13.27
pro\lides you the following information and requests you to prepare Manufacluring Trading
C. Add : Other ltems of Expenses excluded from
& Loss Aocount for the year ended 31st Marcil 20X1 Cost Accounts
Preliminary Expenses written off
COST SHEET Debenture interest 75,000
Production . 5 740 units D. Less : ltem of Income excluded from
Cost Accounts
30.000 1,05,000
Rs. Miscellaneous 'Receipts
45,000
Raw Matena Consumed Profit as per Cost Accounts
Open Stock 5 2.26,100
You are required to prepar e the
Add Purohases following accounts as they would appear in lhe Costing
COSt g Stock 47804 (i) Raw-material Control Ne Ledger:
(Ii) Work-in-progress Control AJc
(iii) Finished Goods Control Ale
(iv) Cost of Sales Ale and
(v) Costing Profit & Loss Ale
[CA)
The Profit and Loss Account as shown In the financial books of a company for the year ended 31.3.20X1
tog~ther with a statement of reconc1tiation between the profil as per financial and cost accounts is

Cr.

15,00,000

2.23,000
45,000

17,68,000

1,63,000

3,100
Rs.
5tatement showing Reconciliation of Profit as per Financial and Cost Accounts
98,000

72.000
53.000

1,200
1,300

1,000
2,000

1,650
750
5,500

2.400
Rs.
Profit & Loss Account for the year ended 31.3.20X1

Miscellaneous Receipts
F.actol) s 5
Ad Ove eart~ 1
Se . . ~ses

Work-in-progress
Finished Goods
Closing Stock :
Bad Debts 4.~

Raw-material
Prat na 5
Ne Pro ,
3

Sales
Rs.

Opening Stock o
Openmg Stock C)

Closing Stock'-J
Closing Stock'-J
Reconcd at1on Account

Opening Stock~
Work-in~progress : Closing Stock C)
17,68,000
Rs

1,63,000
30,000
2,20,000
75,000
2,00,000
1,70,000
2.00,000
2, 10,000
5,00,000
P tas Co Acoouts 4850 Pro as r Fi
OVID bsOrbe s mg Expenses 6 500 Unde absori)ed
Over vaiua · n m Ope;, g SttJCk 5000 U der-absorbed m

Difference in valuation of Stock .

70,000'
e es

---

Profit as per Financial Accounts

250 Ova

Rs.

50,000
90,000
,!l.4t;.11Ll._.,t 0
Re 10000 Ssd Debts

Preliminary Expenses wrilten off

Work-in-progress
Selling & Distribution Expenses

Finished Goods
Finished Goods

Raw-materials :
Pre nary Expenses

Add : Raw-materials
70250

Administration Expenses
Raw-material Purchases

Total (A)

(A) - (B)
Total (8)
Factory Overheads

Debenture Interest
Work-in-progress
Opening Stock :

Finished Goods
PROBLEM 4

Direct Wages
Raw-material

less :
given below ;

Particulars
Net Profit
Dr.

B.
A
 Reconciliation of Cost Financial Accounts 13.23
Dr.
Profit and Loss Account (For the year........ )
Cr.
Rs.
To Wages R,;.
33,000 By Contracts completed
To Direct Materials 90,000
25,200 By Sales of finished goods .i1EJ O ,..
To Stores used
18,600 By Stock of finished goods 10,800
To Chargeable Expenses
To Gross Profit c/d
10,800 By Work-in-progress s.,oo
66,900
1,54,500 1,54,500
To Works Expenses 24,000 By Gross Profit b/d 66,900
To Office Expenses 13,200
To Net Profit 29,700
~
66,900 66,900
[CA]