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Costing
How it's reconsiled in the sum can some one explain the problem ?
Answers (2)
The following procedure is recommended for preparing a reconciliation statement: (1) First of all find out the profits of difference between cost accounts and financial accounts (2) Take Profit of cost accounts as base (3) Add items overcharged of expenses in cost accounts (4) Add items of incomes under recorded in cost accounts (5) Deduct items of incomes over recorded in cost Accounts (6) Add amount of over valuation of stock in cost accounts (7) Deduct amount of under valuation of stock in cost accounts (8) Add amount of under valuation of closing stock in cost Accounts (9) Deduct amount of over valuation of closing stock in cost accounts (10) After adding or deducting all the items, the resulting profits will be the profit or loss as per financial books (11) If the starting point of profit in as per financial account, the above items will be reversed.