Super kings

PRESENTED BY……..

SAVIL
SAGAR
TANUJ
PRAVIN
ROHAN…

PRESENTED TO……..

PROF. PANDIT
RECONCILIATION OF COST
AND FINANCIAL ACCOUNT
 ROAD MAP………

 INTRODUCTION
 DEFINITION & MEANING
 TREATMENT OF FINANCIAL ACCOUNT
 NEED FOR RECONCILIATION
 REASONS
 RECONCILIATION PROCEDURE
 PROBLEM
 CONCLUSION
INTRODUCTION
DEFINITION & MEANING……
TREATMENT OF FINANCIAL ACCOUNT

• FINANCIAL INCOME

• FINANCIAL EXPENSES
NEEDS FOR RECONCILIATION
REASONS FOR DIFFRENCE IN
PROFIT

A. ITEMS APPROPRIATED OR
CHARGED TO PROFIT BUT NOT FOUND IN
COST ACCOUNT

B. PURELY FINANCIAL MATTERS

NOT FOUND IN COST ACCOUNT
 CONTD…….

C. TREATMENT OF ITEMS IN
COST BOOKS AND FINANACIAL
BOOKS

D. DIFFERENCES IN THE
VALUATION OF STOCK AND WORK
IN PROGRESS
 E. DEPRECIATION

F. ABNORMAL
LOSSES AND GAINS
RECONCILIATION
PROCEDURE

 TWO APPROACHES-

RECONCILIATION STATEMENT
MEMORANDUM
RECONCILIATION
MEMORANDUM OF ASSOCIATION
AMOUNT
AMOUNT
PARTICULAR (RS.) PARTICULAR (RS.)

TO …………………….. XXXXX BY PROFIT AS PER COST A/C XXXXX

TO……………………… XXXXX BY……………………. XXXXX

TO…………………….. XXXXX BY ………………….. XXXXX

TO…………………….. XXXXX BY………………….. XXXXX

TO…………………….. XXXXX BY………………….. XXXXX

TO PROFIT AS PER
FINANCIAL A/C XXXXX

TOTAL XXXXX TOTAL XXXXX

 In a factory works overhead are absorbed at 60% of labour
cost and office overhead are 20% of work cost. Prepare
1. Cost sheet
2.Trading & Profit & Loss Account
3.Reconciliation Statement
If Total expenditure consist of material Rs.2,00,000; wages
Rs.1,50,000; factory expenses Rs. 1,00,000 & office expenses
Rs.85,000.
10% of the output is stock at the end and sales are Rs.
5,20,000.
COST SHEET
Particulars Amount
Materials 2,00,000
Wages 1,50,000
Prime Cost 3,50,000
Factory Overhead(60% 0f Rs.1,50,000) 90,000
Works Cost 4,40,000
Office Overhead(20% of works cost) 88,000
Cost Of Production 5,28,000
Cost of goods sold : Rs

5,28,000 * 90 4,75,200
100
Profit 44,800
sales 5,20,000

Profit as per cost account = Rs.44,800

Dr. TRADING AND P & L ACCOUNT Cr.

Particulars Amt Particulars Amt

To Materials 2,00,000 By Sales 5,20,000
To Wages 1,50,000 By Closing Stock 52,800

To Gross Profit c/d 2,22,000

5,72,800 5,72,800
To Factory 1,00,000 By Gross Profit b/d 2,22,000
Expenses
To Office Expenses 85,000

To Net Profit c/d 37800

2,22,800 2,22,800
 Reconciliation Statement :-
Rs
Profit as per cost account 44800

Add:- Overcharged in cost

account : office overhead 3000
47800
Less:- Undercharged in cost
account : factory overhead 10000
Profit as per financial records 37800
THANK U……