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Cost and financial accounts are maintained separately the difference between the end result of these two are required to be reconciled.
Reconciliation of cost and financial accounts ppt. Reconciliation of Cost and Financial Accounts Mahesh Chandra Sharma Associate Professor Department of commerce Shaheed Bhagat Singh Evening College University of Delhi email. ILLUSTRATIONThe Net Profit of a company for the year ended on 31st March 2004 was Rs. Reconciliation of Cost and Financial Accounts ensures that No Expense or Income has been left to record.
There are lots of items which are shown in the profit and loss account only when we make it as per financial accounting rules. Therefore it becomes necessary that periodically the profit or loss shown by the two sets of accounts. Reconciliation of intra-group operations at the transaction level.
There are lots of items which are shown in the profit and loss account only when we make it as per financial accounting rules. A bank reconciliation statement is a document that matches the cash balance on a companys balance sheet to the corresponding amount on its bank statement. Reconciliation of Cost and Financial Accounts Meaning Need Reconciliation of Costing and Financial Results Memorandum Reconciliation Account In a business concern cost accounts and financial accounts can be maintained on the basis of non-integral system or.
Where cost accounts and financial accounts are separately maintained in two different sets of books the profit or loss shown by one may not agree with that shown by other. This can be done by adopting integral or integrated accounts in the organisation wherein only one set of books is operated recording both financial and cost accounts. There are lots of items which are shown in costing profit and loss account only when we calculate profit as per cost accounting.
Page 1 Reconciliation of Cost and Financial Accounts Page 2 Reconciliation of Cost and Financial Accounts Reconciliation of Cost Accounts and Financial Accounts When cost accounts and financial accounts are maintained separately in two different sets of accounting books Non-integral System the profit or loss shown by the both may not agree. Dhrumil Shah SYBBA Div 2 Roll No- 101 Reconciliation of Cost Financial Accounts Cost Accounting 2. Reconciliation of cost and financial accounts mean tallying the profit or loss revealed by both set of accounts.
In business concern where Non-integrated Accounting System is followed. Meaning of Reconciliation of Cost and Financial Accounts Reconciliation of Cost and Financial Accounts is process to find all the reasons behind disagreement in profit which is calculated as per cost accounts and as per financial accounts. 1 Ascertain the reasons of difference between cost accounts and financial accounts.
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