Archive about 'Interlocking/Integrated Accounts'

Illustration: Preparation Of A Reconciliation Statement Of Profits As Per Financial Books and As Per Cost Accounting Books

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

8,180

Profit

29,390

The profit [...]

CONTENT PAGE ON COSTS AND THE FINANCIAL ACCOUNTS SECTION

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.
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COSTS AND THE FINANCIAL ACCOUNTS SECTION

(1) Explain the Inter-locking or non-integrated accounts & its features

(2) Explain the integrated accounting , pre-requisites and advantages [...]

Part 3: Reasons For The Differences/Discrepancies/Disagreement Of Profits As Per Cost Accounts and Financial Accounts?

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 assets, Interest received, [...]

Integrated Accounting System(Part 2 Of 3)

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 of accounting where the cost [...]

Interlocking Accounting Or Non-Integrated Accounting System(Part1of3)

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 financial accounts are operated separately hence there [...]