Find out the memorandum reconciliation account, Cost Accounting

Find Out the Memorandum Reconciliation Account

The givens are the final accounts of a company for the year ending on date 31st December 1999. Manufacturing Trading Loss and Profit Appropriation Account as:

 Total Factory Costs     c/d

 311,000

 Sales

480,000

 Finished Goods:  opening stock

20,000

 

 

 Cost of Goods Manufactured

 

 

 

 And Transferred b/d

311,000

 

 

 

331,000

 

 

 Less Closing stock

(22,000)

 

 

 

309,000

 

 

 Gross Profit c/d

171,000

 

______

 

480,000

 

480,000

 Expenses

 

 

 

 Office Salaries:          

35,000

 Gross Profit b/d

171,000

 Office Expenses:

20,000

 Dividends Received

3,000

 Salesman Commissions         

18,000

 Interest on Bank Deposits

1,000

 Selling Expenses:

15,000

 

 

 Loss on sale of land

1,000

 

 

 Distribution Expenses

13,000

 

 

 Interest on Mortgage

2,000

 

 

 Fines   

1,000

 

 

 Net Profit c/d

  70,000

 

______

 

175,000

 

175,000

 Taxation

  24,000

 Net Profit b/d

70,000

 Transfers to General Reserve

    9,000

 Retained Earnings b/f

36,000

 Ordinary share dividend

18,000

 

 

 Preference Dividends

11,000

 

 

 Goodwill written off

  37,000

 

_______

 

106,000

 

106,000

 

 

 Retained Profit b/f     

37,000

Additional Information

1.  The cost accounting records appears as given:

2. Profits were shs.114, 000.  Office expenses and office salaries provided for as in the financial books

(i) Opening Stocks:     

Raw Materials            26,000

Work in Progress       21,000

Finished Goods          23,000

(ii) Closing Stocks:  Raw Materials          30,000

                             Work in Progress      20,000

                             Finished Goods         24,000

Required 

Prepare a memorandum Reconciliation account.

Solution

Memorandum Reconciliation Account as:

 

 

Profits as Per Cost Books

 

114,000

Items not Debited in Cost A/Cs           

 

Items not Credited in Cost A/Cs

 

 

Stock Differences:  Opening Stocks

 

Dividends Received    

3,000

 

   Of Raw Materials               

1,000

Interest Received       

1,000

 

Loss on Sale of Plant              

1,000

Differences in Stocks

 

 

Fines                           

1,000

W.I.P. (Opening Stocks)

2,000

 

Interest on Mortgage

2,000

 Opening Finished Goods

3,000

 

Selling Expenses         

15,000

W.I.P: Closing stocks  

1,000

 

Salesman Commission                       

18,000

 

10,000

 

Distribution Expenses            

13,000

 

 

 

Stock Differences:

 

 

 

 

Raw Materials: Closing                      

1,000

 

 

 

Finished Goods:             Closing

2,000

 

 

 

Net Profit as Per the Financial Books: 

 

70,000

 

 

 

______

 

124,000

 

 

124,000

 

Working

 

Financial A/Cs

Cost  A/Cs

Differences

Work in Progress:  Opening Stocks:

29,000

21,000

2,000

Finished Goods:  Opening Stocks:

20,000

23,000

3,000

Raw Materials:  Opening Stocks:

27,000

26,000

1,000

Closing Stocks: 

 

 

 

Work in Progress:

21,000

20,000

1,000

Finished Goods:

22,000

24,000

2,000

Raw Materials:

29,000

30,000

1,000

 

Posted Date: 2/6/2013 12:05:20 AM | Location : United States







Related Discussions:- Find out the memorandum reconciliation account, Assignment Help, Ask Question on Find out the memorandum reconciliation account, Get Answer, Expert's Help, Find out the memorandum reconciliation account Discussions

Write discussion on Find out the memorandum reconciliation account
Your posts are moderated
Related Questions
ADescribe the impact of different types of standards on motivations, and specifically, the likely effect on motivation of adopting the labor standard recommended for Geeta & Compan

XYZ Inc. plans to raise $5,000,000 external financing through issuing bonds, and is considering two options: regular bonds and zero couple bonds.  The regular bonds will have coupo

how to prepare separate accounts for each process given having been givent normal loss,output,overhead and output passes to next process

Approach in Cost Accounting Cost accounting is based on the framework or concept of cost centers that is all the costs incurred throughout the production process contain to be

Why are the main contribution teams can make to an organisation? What are the conditions necessary in organisations if people are to work effectively in teams? * Describe what tea

UTILITY OF BREAK EVEN POINT IN MANAGERIAL DECISION MAKING 1. It assists in determination of sales mix 2. It assists in exploring new markets 3. It assists in deciding abo

a company has the budget for manufacturing overhead based on direct labor hours. budgeting at 10,000 direct labor hours are as follows. Variable costs= 160000 Fixed Costs

Cost accounting as a descriptive or analytical discipline