According to the costing books of Bright Co. Ltd, the net profit was Rs. 55,560. Prepare a reconciliation statement explaining the reasons for the difference in profits from the following:
Profit and Loss Account for the Year Ended 31.12.2009
|
Particulars |
Particulars |
||
|
To opening stock |
31,340 |
By sales |
8,73,400 |
|
To purchases |
7,34,800 |
By closing stock |
42,120 |
|
To direct wages |
31,300 |
||
|
To works overhead |
41,120 |
||
|
To gross profit c/d |
76,960 |
||
|
915 520 |
9,15,520 |
||
|
To administration overhead |
26,920 |
By gross profit b/d |
76,960 |
|
To selling overhead |
2,480 |
||
|
To net profit |
47,560 |
||
|
76,960 |
76,960 |
The costing records show the following:
|
(a) Closing stock |
51,260 |
|
(b) Direct wages recovered during the year |
33,440 |
|
(c) Works overhead recovered |
37,120 |
|
(d) Administration overhead charged |
30,920 |
|
(e) Selling expenses charged |
1,480 |