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