Following Profit & Loss Account is provided from the financial accounts of XYZ Pvt. Ltd. for the year ended 31st March: Particulars (₹)…

(i) Statement calculating profit as per cost records Particulars (₹) Materials 75,00,000 Wages 37,50,000 Direct Expenses Nil Prime Cost 1,12,50,000 Add: Factory Overhead @ 120% of wages 45,00,000 Gross Factory Cost 1,57,50,000 Less: Closing WIP (5,25,000) Factory Cost of (50,000 + 3,075) units 1,52,25,000 Add: Admn. Overhead @ 20% of Factory cost 30,45,000 1,82,70,000 Less: Closing Stock of finished goods (3,075 units) (10,58,507)* Cost of Goods sold (50,000 units) 1,72,11,493 Add: Selling & Dist. Overhead @15 per unit 7,50,000 Cost of sales (50,000 units) 1,79,61,493 Sales of 50,000 units 1,87,50,000 Profit 7,88,507 *Closing Stock of finished goods = (3,075 units / 53,075 units) x 1,82,70,000 = 10,58,507 (ii) Reconciliation Statement Particulars (₹) (₹) Profit as per Cost Accounts 7,88,507 Add: Factory overheads over-absorbed (₹ 45,00,000 -33,75,000) 11,25,000 Admn. overhead over-absorbed (₹ 30,45,000 - 19,50,000) 10,95,000 Difference in the valuation of closing stock of finished goods (₹ 11,25,000 -10,58,507) 66,493 22,86,493 30,75,000 Less: Selling & Dist. Overhead under-absorbed (₹ 13,50,000 - 7,50,000) 6,00,000 Goodwill written off 15,00,000 Interest on loan 1,50,000 22,50,000 Profit as per financial accounts 8,25,000