From the following profit and loss account and additional information given, prepare: (a) a cost sheet and (b) reconciliation statement Profit and loss account
|
Particulars |
Rs |
Particulars |
Rs |
|
To opening stock |
8,000 |
By sales |
1,85,000 |
|
To purchases |
52,000 |
By closing stock (materials) |
15,000 |
|
To wages |
28,000 |
||
|
To factory expenses |
12,000 |
||
|
To administration expenses |
10,000 |
||
|
To selling and distribution expenses |
14,000 |
||
|
To patents (written off) |
6,000 |
||
|
To net profit c/d |
70,000 |
||
|
2,00,000 |
2,00,000 |
In costing, opening materials were shown at Rs 7,000. The factory overheads were absorbed at Rs 14,000. Administration overhead charges 10% of works cost and selling overheads was 10% of sales.
Hint: Closing materials are shown in costing at the same value as in financial accounts as it cannot be found separately.