X Ltd. provides the following profit and loss A/c for the year 2009.
Profit and Loss A/c of X Ltd for the Year Ended 31.12.2009
|
Particulars |
Particulars |
||
|
To materials |
50,000 |
By sales |
1,20,000 |
|
To wages |
20,000 |
By closing stock of finished goods |
10,000 |
|
To works expenses |
15,000 |
By work-In-progress |
|
|
To office expenses |
10,000 |
Material 1,500 |
|
|
To provision for |
20,000 |
Wages 1,000 |
|
|
Income tax |
|||
|
To net profit |
18,000 |
Work expenses 500 |
3,000 |
|
1,33,000 |
1,33,000 |
The production was 10,000 units of which 9,000 units were sold. Absorption of overhead in cost accounts was on unit basis. The pre-determined rates were works overhead at Rs. 2 per unit and the office overhead Rs. 1.50 per Unit.
Prepare: (1) Cost sheet and (2) Reconciliation statement