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Cost accounting system
Costing
Reconciliation problems Is there any tricks to solve easily Reconciliation problems
Answers (5)
First always start with costing profit or loss , and 1st rule you should keep in mind is the information as per financial records is true and as per that only we have to reconcile For eg notional rent charged as per cost records but financial records does not have this then this income reduces so therefore in cost records we have to debit it ( general rule Inc in exp -Dr , decrease in ex - cr, inc in income - cr , decrease in income - Dr) In case of accounts Dr cr but if it is statement Dr items should be subtracted and credit items should be added Under absorption - Dr Over absorption - cr this rule is vise versa for closing stock alone
SREEABITHA SENTHILKUMAR
First always start with costing profit or loss , and 1st rule you should keep in mind is the information as per financial records is true and as per that only we have to reconcile For eg notional rent charged as per cost records but financial records does not have this then this income reduces so therefore in cost records we have to debit it ( general rule Inc in exp -Dr , decrease in ex - cr, inc in income - cr , decrease in income - Dr) In case of accounts Dr cr but if it is statement Dr items should be subtracted and credit items should be added Under absorption - Dr Over absorption - cr this rule is vise versa for closing stock alone
Is is similar to BRS sums right our goal is to start with costing p&l and go to financial p/l
SREEABITHA SENTHILKUMAR
Yes, mostly in the question itself it will given that start from costing profit and loss or else also we have to start from that only
So we must start from costing p/l always right?
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