SV Ltd. has furnished you the following information from the financial books for the year ended 31 March 1998.
Profit and loss account for the year ended 31 March 1998
|
Opening stock |
Rs |
Sales |
Rs |
|
500 units at Rs 35 each |
17,500 |
10,250 units |
7,17,500 |
|
Materials consumed |
2,60,00 |
Closing Stock |
|
|
Wages |
1,50,000 |
250 units at Rs 50 each |
12,500 |
|
Gross profit c/d |
3,02,500 |
||
|
7,30,000 |
7,30,000 |
||
|
Factory overheads |
94,750 |
Gross profit b/d |
3,02,500 |
|
Administration overheads |
1,06,000 |
Interest |
250 |
|
Selling expenses |
55,000 |
Rent received |
10,000 |
|
Bad debts |
4,000 |
||
|
Preliminary expenses |
5,000 |
||
|
Net profit |
48,000 |
||
|
3,12,750 |
3,12,750 |
The cost sheet shows the cost of materials as Rs 26 per unit and the labour cost as Rs 15 per unit. The factory overheads are absorbed at 60% of labour cost and administration overheads at 20% of factory cost. Selling expenses are charged at Rs 6 per unit. The opening stock of finished goods is valued at Rs 45 per unit.
You are required to prepare:
- A statement showing profit as per cost accounts for the year ended 31 March 1998.
- Statement showing the reconciliation of profit disclosed in cost accounts with the profit shown in the financial accounts.