During the year ended, 31st March 2007, the profit of a company as per financial Profit and Loss A/c was Rs.33, 248 as given below. Prepare a reconciliation statement and arrive at a profit as per cost accounts using the additional information given.

Profit and Loss Account

Debit Credit

Particulars

Amount- Rs.

Particulars

Amount – Rs.

To opening stock

4, 94, 358

By sales

6, 93, 000

To purchases

1, 64, 308

By sundry income

632

Less: Closing stock

1, 50, 242

5, 08, 424

To direct wages

46, 266

To factory overheads

41, 652

To administrative overheads

19, 690

To selling expenses

44, 352

To net profit

33, 248

Total

6, 93, 632

Total

6, 93, 632

The costing records show:

A. Closing stock Rs.1, 56, 394

B. Direct wages absorbed Rs.49, 734

C. Factory overheads absorbed Rs.39, 428

D. Administration expenses calculated @ 3% of sales

E. Selling expenses absorbed @ 5% of sales