AeBee Ltd. disclosed a net loss of 9,02,200 as per their cost accounts for the year ending 31 st March. However, the financial accounts disclosed a…

CA Intermediate · Cost and Management Accounting · MTP · May 2025
AeBee Ltd. disclosed a net loss of 9,02,200 as per their cost accounts for the year ending 31 st March. However, the financial accounts disclosed a net loss of 13,26,000 for the same period. On scrutiny of both the sets of accounts, following information was revealed- Particulars (₹) (i) Depreciation charged in Financial Accounts 8,45,000 (ii) Factory Overheads under-absorbed in Cost Accounts 7,41,000 (iii) Depreciation charged in Cost Accounts 7,15,000 (iv) Interest on investments not included in Cost Accounts 3,12,000 (v) Administration Overheads over-absorbed in cost accounts 1,56,000 (vi) Income-tax provided 1,40,400 (vii) Dividend received 83,200 (viii) Stores adjustment (credit in financial books) 36,400 PREPARE a memorandum Reconciliation Account.

Suggested Answer and Working Notes:

Memorandum Reconciliation Accounts Dr. (₹) Cr. (₹) To Net Loss as per Costing books 9,02,200 By Administration overheads over recovered in cost accounts 1,56,000 To Factory overheads under absorbed in Cost Accounts 7,41,000 By Interest on investment not included in Cost Accounts 3,12,000 To Depreciation under charged in Cost Accounts 1,30,000 By Stores adjustment (Credit in financial books) 36,400 To Income-Tax not provided in Cost Accounts 1,40,400 By Dividend received in financial books 83,200 By Net loss as per Financial books 13,26,000 19,13,600 19,13,600

Topics: Cost Accounting Systems

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