The net profit shown by financial A/c's of a company amounted to Rs. 2,85,500 while profit...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The net profit shown by financial A/c's of a company amounted to Rs. 2,85,500 while profit as per cost accounts for that period was Rs. 388600 on reconciliation The following differences were noticed. a) The following items were included in the Financial books: Director fees (Dr) 6500 Bank interest (Cr) 300 a. b. c. Incometax(Dr) 83000 ) Bad and doubtful debts for Rs.5700 were written off in financial books. :) Overhead in cost accounts absorbed were Rs.85000 with the actual were Rs.83200. d) A net loss of Rs.10,000 on sale of old machinery was dealt with in the Financial books. Reconcile the profits between the cost and financial accounts. S30 Profit as per cost Accounts Add: Income credited in financial A/c's: Bank interest Overabsorption of overhead in cost accounts (85000-83200) Less: Expenses and loss in Financial books Director fee Income tax Bad and doudful debts Loss on sale of machinery Profit as per Financial Accounts. Problem: Stores Adjustments (credit) in Financial books Loss due to depreciation in Stock values charged in Financial a/cs 388600 300 1800 2100 6500 83000 5700 10000 390700 105200 285500 The Net profit of a Manufacturing Co., Ltd. appeared of Rs.64377 as per financial Records for the year ended 31st March 2003. The cost books however showed a net profit of Rs. 86,200 for the same period. Prepare a reconciliation statement from the following information. Works overhead under recovered in costs 1560 Administrative overhead over-recovered in costs Depreciation charged in financial Accounts Depreciation recovered in costs Interest on investments not included in costs Loss due to obsolescence charged in financial A/Cs Income tax provided in Financial A/Cs Bank Interest credited in Financial A/Cs 850 5600 6250 4000 2850 20150 375 237 3375 The net profit shown by financial A/c's of a company amounted to Rs. 2,85,500 while profit as per cost accounts for that period was Rs. 388600 on reconciliation The following differences were noticed. a) The following items were included in the Financial books: Director fees (Dr) 6500 Bank interest (Cr) 300 a. b. c. Incometax(Dr) 83000 ) Bad and doubtful debts for Rs.5700 were written off in financial books. :) Overhead in cost accounts absorbed were Rs.85000 with the actual were Rs.83200. d) A net loss of Rs.10,000 on sale of old machinery was dealt with in the Financial books. Reconcile the profits between the cost and financial accounts. S30 Profit as per cost Accounts Add: Income credited in financial A/c's: Bank interest Overabsorption of overhead in cost accounts (85000-83200) Less: Expenses and loss in Financial books Director fee Income tax Bad and doudful debts Loss on sale of machinery Profit as per Financial Accounts. Problem: Stores Adjustments (credit) in Financial books Loss due to depreciation in Stock values charged in Financial a/cs 388600 300 1800 2100 6500 83000 5700 10000 390700 105200 285500 The Net profit of a Manufacturing Co., Ltd. appeared of Rs.64377 as per financial Records for the year ended 31st March 2003. The cost books however showed a net profit of Rs. 86,200 for the same period. Prepare a reconciliation statement from the following information. Works overhead under recovered in costs 1560 Administrative overhead over-recovered in costs Depreciation charged in financial Accounts Depreciation recovered in costs Interest on investments not included in costs Loss due to obsolescence charged in financial A/Cs Income tax provided in Financial A/Cs Bank Interest credited in Financial A/Cs 850 5600 6250 4000 2850 20150 375 237 3375
Expert Answer:
Answer rating: 100% (QA)
Reconciliation of Profits Financial Profit Rs 285500 Cost Profit Rs 388600 Reconcili... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these accounting questions
-
Sanggul Biru Sdn Bhd (SBSB), a resident company located in Marang, Terengganu and involved in producing and supplying cosmetic products for Malaysian and international market. The company prepares...
-
The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...
-
The management of Matunda Matamu Limited has presented the following trading and profit and loss account for the year ended 31 December 2019: Ksh. *000 Ksh. *000' Sales Less cost of sales: 18.500...
-
Draw a plausible mechanism for each of the following transformations: (a) (b) [TSOH] MENH2 -H20
-
David Corporation issued 100,000 shares of $20 par value, cumulative, 8% preferred stock on January 1, 2011, for $2,100,000. In December 2013, David declared its first dividend of $500,000....
-
EMI Inc. is a public company that operates numerous movie theatres in Canada. Historically, it operated as a trust and its business model consisted of distributing all of its earnings to shareholders...
-
Describe the six strategies of financial planning.
-
Sydney Company had retained earnings of $56,000 and total stockholders equity of $75,000 at the beginning of 20X1. During 20X1 the company had net income of $21,000, declared and paid cash dividends...
-
Sheridan Company, a machinery dealer, leased a machine to Dexter Corporation on January 1, 2020. The lease is for an 8-year period and requires equal annual payments of $29,776 at the beginning of...
-
Drago Company produces a line of brass-based products, one of which is a flow control valve (for regulating the flow of water). The production of this valve requires the use of specialized equipment...
-
. a, integrated marketing communications O b. promotional selling O c. relationship marketing O d. creative selling QUESTION 24 Jennifer Aniston has been the face of Aveeno products for years. This...
-
Samuel Corp. provides the following information: EBIT = $386.50 Tax (TC ) = 35% Debt = $810 RU = 15% What is the value of Samuel's equity?
-
You may attempt this question 3 more times for credit. A research division of a large consumer electronics company has developed a new type of mp3 player. The project will require an immediate cash...
-
I need 5 ppt's and A script paper to explain these 5 ppt's ppt1-2 Analyze the current situation of SUBWAY during the epidemic, what decisions were made and analyze the market share in China. ppt3...
-
A loan, A, is repaid with semi-annual payments of $1000. The first payment is due May 26, 2022 and the last payment is due May 26, 2027. If the interest rate on the loan is j2 = 7% and the loan was...
-
3. Jill is single makes $69,000 in the year 2024. How much does Jill pay in FICA taxes? 4. Eddie is single and makes $193,000 in the year 2024. How much does Eddie pay in FICA taxes? 5. Jake is...
-
Using the true location coordinates and the coordinates from the randomly generated test points from QGIS how do you how to use the diagonal sum value and the total number of test points to determine...
-
Select a mass spectrometric technique with the highest mass resolution for identifying an unknown compound being eluted from a liquid chromatography column
-
Three years of combined data for two firms appear below (in millions). The two firms experienced similar growth rates in revenues during the three-year period. One of these firms is Accenture Ltd., a...
-
Effective financial statement analysis requires an understanding of a firms economic characteristics. The relations between various financial statement items provide evidence of many of these...
-
Explain why market-to-book multiples demonstrate less variance over time and across firms than do price-earnings multiples.
-
\(\frac{3}{14}+\frac{8}{21}\) Perform the indicated operations. Reduce to lowest terms.
-
\(\frac{13}{24}-\frac{4}{117}\) Perform the indicated operations. Reduce to lowest terms.
-
\(\frac{14}{27} \div \frac{7}{12}\) Perform the indicated operations. Reduce to lowest terms.
Study smarter with the SolutionInn App