Sundar Limited maintains its Cost Accounting System on the basis of Non-Integral System of Accounting. The following transactions arose during the…

CA Intermediate · Cost and Management Accounting · PYQS · September 2025
Sundar Limited maintains its Cost Accounting System on the basis of Non-Integral System of Accounting. The following transactions arose during the month of August, 2025: Particulars Amount (₹) Materials purchased on credit 10,25,000 Materials issued to production (Direct) 5,55,000 Direct Wages allocated to production 3,00,000 Factory Overheads over-absorbed 2,20,000 Administration Overheads under-absorbed 1,40,000 Required: Journalize the above-mentioned transactions in Cost Books maintained on Non-Integrated System of Accounting.

Suggested Answer and Working Notes:

Journal entries are as follows: Dr. (₹) Cr. (₹) 1. Stores Ledger Control A/c Dr. To Cost Ledger Control A/c (Materials purchased) 10,25,000 10,25,000 OR Material Control A/c Dr. To Cost Ledger Control A/c 10,25,000 10,25,000 Stores Ledger Control A/c Dr. To Material Control A/c 10,25,000 10,25,000 2. Work-in-Process Control A/c Dr. To Store Ledger Control A/c (Materials issued to production) 5,55,000 5,55,000 3. Work-in-Process Control A/c Dr. To Wages Control A/c (Direct wages charged to production) 3,00,000 3,00,000 4. Factory Overheads Control A/c Dr. To Costing Profit & Loss A/c (Factory overheads over absorbed) 2,20,000 2,20,000 5. Costing Profit & Loss A/c Dr. To Administrative Overhead Control A/c (Admin overheads under absorbed) 1,40,000 1,40,000

Topics: Cost Accounting Systems

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