Native Co. Ltd suffered a loss of Rs 25,000 as per the financial accounts. On comparison with its costing records for the same year, the following differences were observed: Prepare a reconciliation statement, with the help of the differences.
|
Rs |
|
|
Overvaluation of opening stock of materials in cost books |
1,200 |
|
Under valuation of closing stock of finished goods in financial books |
3,000 |
|
‘Dormant’ materials written off (in financial books) |
1,000 |
|
Under absorption of overheads |
4,000 |
|
Fines levied by Municipality |
500 |
|
Debenture interest paid |
2,000 |