Model: Memorandum reconciliation statement
A manufacturing company disclosed a net loss of Rs. 1,73,500 as per their cost accounts for the year ended March 31, 2010. The financial accounts however disclosed a net loss of Rs. 2,55,000 for the same period. The following information was revealed as a result of scrutiny of the figures of both the sets of accounts.
|
(i) Factory overheads under-absorbed |
20,000 |
|
(ii) Administration overheads over-absorbed |
30,000 |
|
(iii) Depreciation charged in financial accounts |
1,62,500 |
|
(iv) Depreciation charged in cost accounts |
1,37,500 |
|
(v) Interest on investments not included in cost accounts |
48,000 |
|
(vi) Income tax provided |
27,000 |
|
(vii) Interest on loan funds in financial accounts |
1,22,500 |
|
(viii) Transfer fees (credit in financial books) |
12,000 |
|
(ix) Stores adjustment (credit in financial books) |
7,000 |
|
(x) Dividend received |
16,000 |
You are required to prepare a memorandum reconciliation account.