Non-Integrated Accounts

 Meaning
◆ If the cost and financial transactions are kept
separately,the system is called Non-Integrated
Accounting System
 Important Ledgers to be Maintained
◆ General Ledger Control Account
◆ Stored Ledger Control Account
◆ W-I-P Control Account
◆ Finished Goods Control Accounts
 Scheme of Entries - Double Entries basis
 PRINCIPLE ACCOUNTS
 General Ledger Control Account
 Stored Ledger Control Account
 W-I-P Control Account
 Finished Goods Control Accounts
 Wage Control Account
 Manufacturing/Production/Works Overhead Account
 Administration Overhead Account
 Selling and Distribution Overhead Account
 Cost of Sales Account
 Costing Profit & Loss Account
 Overhead Adjustment Account
Cost Ledger Control Account
 Also known as General Ledger Adjustment
Account
 All items of expenditure are credited to this
account
 Sales are debited to this account
 Net profit/loss is transferred to this account
 Balances in this account represents the net total
of all the balances of the impersonal accounts
STORES LEDGER CONTROL ACCOUNT
 Debited with total of material purchases
 Credited with issues of materials
 Balance in this account represents the total
balance of all individual stores accounts
 Abnormal loss\gain in this account transferred
to Costing P & L a/c.
W-I-P CONTROL ACCOUNT
 Debited with the total cost Of production i.e,
◆ direct materials

◆ direct labour

◆ direct expenses

◆ production overhead recovered

 Credited with amount of finished goods completed

and transferred
 Balances in this account represents total balances
of jobs/w-i-p as shown several jobs accounts
FINISHED GOODS CONTROL
ACCOUNT
 Debited with
◆ value of goods trf. From w-i-p a/c

◆ administration cost recovered

 Credited with
◆ cost of goods sold and cost of sales a/c

 Balance this account represents value of

goods lying in hand.
OVERHEAD ADJUSTMENT
ACCOUNT
 the difference the overhead incurred and overhead
recovered transferred to this a/c.
 Debited with under recovery of overheads
 Credited with over recovery of overheads.
 Balance in this a/c. trf. to Costing P & L a/c.
 Another treatment of under/over absorbed
overheads is
◆ carry forward to the next financial year by
means of Overhead Suspense(Reserve) A/c.
RECONCILIATION OF COST AND
FINANCIAL ACCOUNTS
Causes which gives rise to
differences in the Cost and
Financial Accounts
 Items included in the financial accounts but not in cost
accounts
◆ Appropriation of Profits

◆ Matters of pure finance

◆ Items included in the cost accounts only (notional

expenses)
◆ Under and Over recovered expenses

 Difference due to varying basis of valuation

INTEGRATED (OR INTEGRAL)
ACCOUNTING SYSTEM
MEANING AND IMPORTANT
POINTS
 Meaning
 Integrated Accounts is the name given to a system of accounting whereby cost
and financial accounts are kept in the same set of books
 Important Points
 For Costing it provided information useful for ascertaining the cost of each
product,job,process,operation of any other identifiable activity and for carrying
necessary analysis
 For Financial accounts preparing profit and loss account and the balance sheets as
peer the requirement of the law and also helps in exercising effective control over
the liabilities and assets of its business.