Following information is extracted as a result of scrutiny of the figures from both the financial accounts and cost accounts of CK Ltd. for the year…

CA Intermediate · Cost and Management Accounting · RTP · January 2025
Following information is extracted as a result of scrutiny of the figures from both the financial accounts and cost accounts of CK Ltd. for the year ending 31 st March: Particulars Amount (₹) Net Profit (as per cost accounts) 57,71,840 Under recovery of selling overheads in cost accounts 1,16,800 Under valuation of closing stock in cost accounts 1,64,000 Rent received credited in financial accounts 87,200 Bad debts provided in financial accounts 52,000 Income tax provided in financial accounts 2,54,400 Under recovery of administration overheads in cost accounts 1,50,400 You are required to PREPARE a Statement of Reconciliation showing the profit as per financial records.

Suggested Answer and Working Notes:

Statement of Reconciliation (Reconciling the profit as per costing records with the profit as per financial records) Particulars (₹) (₹) Net Profit as per Cost Accounts 57,71,840 Add: Under valuation of closing stock in cost accounts 1,64,000 Rent received credited in financial accounts 87,200 2,51,200 60,23,040 Less: Under recovery of selling overheads in cost accounts 1,16,800 Bad debts provided in financial accounts 52,000 Income tax provided in financial accounts 2,54,400 Under recovery of administration overheads in cost accounts 1,50,400 5,73,600 Profit as per Financial Accounts 54,49,440

Topics: Cost Accounting Systems

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