The following is the summarized version of trading and profit and loss account of Continental Enterprises Limited for the year ended 31 March 1998.
|
Rs |
Rs |
|||
|
To materials |
48,000 |
By sales |
96,000 |
|
|
To wages |
36,000 |
By closing stock of |
||
|
finished goods |
20,400 |
|||
|
To works expenses |
24,000 |
By work in progress: |
||
|
To gross profit c/d |
14,400 |
Material |
3,000 |
|
|
Wages |
1,800 |
|||
|
Work expenses |
1,200 |
|||
|
6,000 |
||||
|
1,22,400 |
1,22,400 |
|||
|
To administration expenses |
6,000 |
By gross profit b/d |
14,400 |
|
|
To net profit |
8,400 |
|||
|
14,400 |
14,400 |
During the year, 6,000 units were manufactured and 4,800 of these were sold.
The costing records show that works overheads have been estimated at Rs 3 per unit produced and administration overheads at Rs 1.50 per unit produced. The costing books show a profit of Rs 11,040.
Prepare a statement a cost and profit and reconcile the profit as per cost accounts and financial books.