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Doubt in Cost accounting system

Can someone clearly explain with examples how reconciliation is done between cost nd final accounts profits !


Sachin M

Sachin M

CA Inter

280

13-Feb-20 20:41

28

Answers (2)

Take any of the profits as base...Then analyse the reason for variance .Then check it's impact in profit of the books we have taken as base.... For eg:- if you are taking cost books as base...Start from the profit of cost records.... 1. Factory overhead over absorbed 2000 Analyse this one. More expense is absorbed in cost records and so profit in cost records are understated..Therefore add it with the profit... So analyse each item and it's impact in profit then reconcile


george joseph

george joseph

CA Inter

5K+

16-Feb-20 04:40

Similar to bank reconciliation in cpt accounts


VIJAYA SARADHI MAGANTI

VIJAYA SARADHI MAGANTI

CA Foundation

850

03-Mar-20 03:16