Cost accounting system

Costing

For royalty paid (red marked in image) In book its related to production and its cleared no doubts on it. But what entry should be given if it is not related to production in non integrated system and integrated system ?

Balaji R

CA Final

★ 20K+

22-Sep-21 12:17

634

Answers (1)

It depends on the purpose for which royalty is paid. If it is in relation to general administration then similar treatment as any other admin OH. If it is in relation to sales and distribution then similar treatment as any other S&D OH.

Sudha Reddy

CA Final

★ 20K+

23-Sep-21 14:45