The net profit shown by financial A/c's of a company amounted to Rs. 2,85,500 while profit...

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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

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Reconciliation of Profits Financial Profit Rs 285500 Cost Profit Rs 388600 Reconcili... View the full answer