From the following Profit and Loss A/c, prepare a Memorandum Reconciliation Account, showing the profit as per the Cost Accounts.
Profit And Loss A/c
|
Particulars |
Amount – Rs. |
Particulars |
Amount – Rs. |
|
To office salaries |
11, 282 |
By gross profit |
54, 648 |
|
To office expenses |
6, 514 |
By dividends received |
400 |
|
To salesmen’s salaries |
4, 922 |
By interest received |
150 |
|
To sales expenses |
9, 304 |
||
|
To distribution expenses |
2, 990 |
||
|
To loss on sale of machinery |
1, 950 |
||
|
To fines |
200 |
||
|
To discount on debentures |
100 |
||
|
To net profit |
17, 936 |
||
|
Total |
55, 198 |
Total |
55, 198 |
|
To income tax |
8, 000 |
By net profit |
17, 936 |
|
To reserve |
1, 000 |
||
|
To dividend |
4, 000 |
||
|
To balance c/d |
4, 936 |
||
|
Total |
17, 936 |
Total |
17, 936 |
The Cost Accountant of the company has ascertained a profit of Rs.19, 636 as per his books.