Archive about 'Interlocking/Integrated Accounts'
Tweet Cost Ledger Control Account is: Is popularly known as the “General Ledger Adjustment Account. This account is opened in Cost Ledger to complete double-entry. All items of income and expenditure taken from the financial accounts and all transfers from cost accounts to financial books are recorded in this account All transactions in the cost [...]
Illustration: Preparation Of A Reconciliation Statement Of Profits As Per Financial Books and As Per Cost Accounting Books
Tweet Question: Company XYZ maintains separate cost and financial ledgers. The financial accountant has prepared the following Profit Statement from the financial ledger: Income Statement For 31 st December 2007 Sales $ $ 188,300 Material purchases 73,200 Wages & Salaries 32,490 Expenses excluding depreciation 46,860 Depreciation 17,340 169,890 Stock Increase 2,800 167,090 21,210 Investment Income [...]
Tweet This Content Page helps you to navigate to all the articles relating to Costs And Financial Accounts. In each article, you can click to return to this Content Page. Click to the respective topic: COSTS AND THE FINANCIAL ACCOUNTS SECTION (1) Explain the Inter-locking or non-integrated accounts & its features (2) Explain the integrated [...]
Part 3: Reasons For The Differences/Discrepancies/Disagreement Of Profits As Per Cost Accounts and Financial Accounts?
Tweet When a company uses the interlocking or non-integrated system, there is a necessity to reconcile the profits between Cost Accounts and Financial Accounts Below discuss the reasons: 1.0 There are certain items which appear in financial books only and are not included in cost accounting books. The items are: INCOME: Profit on sale of [...]
Tweet Part 1 looks at what’s interlocking or non-integrated systems. This Part 2 looks at what’s integrated system accounting, its pre-requisites of installing the system and some of the advantages. Part 3 explains some of the reasons for the differences/discrepancies/disagreement of profits as per cost accounting book and the financial books. Integrated Accounts A system [...]
Tweet What is interlocking accounts? Also refer as non-integrated accounts When a business keeps its cost accounts separate from the financial accounts such system is called interlocking accounts Common features of Interlocking accounting/non-integrated accounting In the interlocking accounts, there is no double entry connection between the cost and financial accounts The cost and [...]