Cost account ledger system, Cost Accounting

Assignment Help:

Cost Account Ledger System

A cost account ledger system is essential to analyze accounting information in order such costs may be accumulated for individual cost centers and charged to cost units. The information in the cost ledger will be employed for a range of planning, decision and control making reasons. 

- The cost ledger control account in the financial ledger is a memorandum account that records the financial information that has been extracted for employ in the cost ledger.

- The financial ledger control in the cost ledger has two main reasons as:

(i) It creates the cost ledger self-balancing:  It gets the place of an asset liability accounts in that one leg of the double entry would appear the financial ledger for all transaction as an example of the purchase of material on credit would be credited to sundry creditors control account in the financial ledger. In the cost ledger, it is credited to the financial ledger control account.

(ii) It enables an internal check to be performed via comparing its balances along with that of the cost ledger control account in the financial ledger.  Both must record a balance that represents stock balances or Raw material, W.I.P and financial goods the total profit, while all other transactions have been completed.  Any type of difference should be reconciled and investigated.  Hence the final trial balance in the cost ledger will appears:

 

Dr

Cr

 Stores Ledger Control a/c

x

 

 W.I.P. control a/c

x

 

 Finished Goods Control a/c

x

 

 Costing Profit and Loss a/c

 

x

 Financial Ledger Control a/c

 

x


Related Discussions:- Cost account ledger system

Earnings per share, Daisy Ltd has a net profit after tax of $3 400 000 for ...

Daisy Ltd has a net profit after tax of $3 400 000 for the year ending 30 June 2012.  For the entire financial year Daisy Ltd had two million $1.00 cumulative preference shares on

Contemporary Management accounting issue, Hello, I am writing a report ab...

Hello, I am writing a report about a contemporary management accounting issue, and i can''t really seem to understand the guidelines well. What kind of topic can i use to write a

Calculate the amount of annual investment return rates, Using the table bel...

Using the table below, calculate the amount of overall increase of your purchasing power over the period of 5 years given the annual investment return rates and annual inflation ra

Goal definition and communication - standard costing, Goal Definition and C...

Goal Definition and Communication - Behavioural Aspects of Standards Goal Definition The desired goals should be clearly defined to individuals, departments and the organ

Compute the cost of good sold and the ending inventory value, Beginning inv...

Beginning inventory on March 1 consisted of 2,000 units each costing $11.20. During March, the following was purchased for inventory: Date Purchase

Costs and revenues over a range of activity levels, 1. Single product or si...

1. Single product or single mix of products 2. Variable cost, fixed cost and selling price are constant 3. The level of production will equal the level of sales Example:

EXPECTED CASH COLLECTIONS.PRACTICE QUESTIONS, WORKED EXAMPLES OF EXPECTED C...

WORKED EXAMPLES OF EXPECTED CASH COLLECTIONS PATTERNS

Identify the stakeholders and organization, i.   Identify the organization ...

i.   Identify the organization ii.  Identify the stakeholders iii. Give the major requirements for the IT application iv. Reflect on how difficult it was to do the require

Calculate the loss in consumer surplus, (a) Calculate the number of US impo...

(a) Calculate the number of US imports with and without the tariff. (b) Calculate the dead weight loss of the tariff. (c) Calculate the loss in consumer surplus resulting fro

Prepare a statement of financial balance sheet, The Accountant has also ask...

The Accountant has also asked for you to assist in preparing the statement of financial position (balance sheet) for the Construction in Building partnership for the year ended 30

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd