Question

3. A company maintains separate Cost and Financial Accounts, and the costing profit for
2016 differed to that revealed in the Financial Accounts, which was shown as 50,000.
Following information is available:
Cost Accounts Financial Accounts
₹
₹ F
Opening stock of raw material 5,000
5,500
Closing stock of raw material
4,000
5,300
Opening stock of finished goods 12,000
15,000
Closing stock of finished goods 14,000
16,000
(ii) Dividend of 1,000 was received by the company.
(iii) A machine with net book value of 10,000 was sold during the year for 18,000.
(iv) The company charged 10% interest on its opening capital employed of 80,000 to
its process costs.
You are required to determine the profit figure which was shown in the Cost Accounts.​

Answer 1

Answer:

From the following prepare Bank Reconciliation statement in the books of

Rajath and co., as on 30.9.2020.

a. Overdraft balance as per cashbook Rs. 28,470.

b. Interest allowed by bank of Rs.200 was entered twice in the cash

book.

c. It was found that total of one page on the payment side of the cash

book which was Rs. 1,250 was written as Rs.1,520 on the next page.

d. A cheque of Rs.32,000 issued to Insurance company was not yet

presented for payment

e. Out of cheques issued for Rs.7,500 cheques of Rs.5,000 were

presented for payment till the date.

f. Out of the cheques presented for payment one cheque of Rs.700

was not honored due to some technical reasons. No entry was passed

in the cash book for dishonor.