Vous êtes sur la page 1sur 4

Solution:Date Particulars LF Debit (Rs.) 78.74 78.74 Credit(Rs.


Anand’s account 1 To Suspense account


(Being Anand’s account rectified which was wrongly credited to wrong account) Suspense account Dr To Purchase account (Being over debit of purchase rectified) 9 9


Repairs account Dr 3 To Building account (Being wrong debit given to building account rectified) B’s account 4 To Discount received account Dr

158 158

80 80

(Being discount received from. B omitted earlier and now brought to account) Sales account 5 To Old furniture account Dr 125.05 125.05

(Being sale of old furniture wrongly transferred to sales account rectified)

Suspense Account Date Particulars To Difference in Trial balance To Purchase account Amount Rs. 69.74 9.00 78.74 Date Particulars By Anand's a/c Amount Rs. 78.74 78.74

To help the management in planning. creditors. machine hours or product units for the purpose of analysis. how to report. information system. Financial data is presented for a definite period. which form to report. operation research etc. say 1 year or a quarter. 600000 . monitoring and controlling. which form to report. Income Statement (Profit and loss a/c) Balance sheet Cash flow statement. how much to report. Overall organization. It is a statutory requirement What to report.Solution:- Dimension Users Purpose Need Expression of information Reporting timing and frequency Time perspective Sources of principles Reporting entity Form od reports Financial accounting The primary users of financial accounting information are external users like shareholders. etc. are decided by the management as per the needs of the company or management. Responsibility centres within the organization. Reports are prepared on a continuous basis. etc. monthly. Management accounting The primary users of management accounting are internal users like top. employees. when to report. government authorities. policies and convention (GAAP). how much to report. It oriented towards the future. middle and lower level managers. It makes uses of other disciplines like economics. etc. Solution:Balance sheet Liabilities Capital Rs. when to report. Reporting financial performance and financial position to enable the users to take financial decision. It is a discipline by itself and has its own principles. management. It is optional what to report. It focuses on historical data. It may adopt any measurement unit like labour hours. MIS reports Performance report Control reports Cost statement Variance statements Budgets Estimate statements Flowcharts. how to report. Accounting information is always expressed in terms of money. decision making. are stipulated by Law or Standards. weekly or even daily. Assets 500000 Fixed Assets Rs.

88 0.33 5.000 9.53 0.500 Total Amount Cost/Unit 0.26 1.000 10.000 22.400 (33.000 + 4.67 28.000 200 200 2.0000 1.000 4.800) Solution:Preparation of cost sheet Units produced 17.100 Particulars Raw materials consumed Direct Wages Direct Expense (900 X 5) Prime cost Add: Factory overheads FACTORY/ WORK COST Add: Admin.Reserves and Surplus Long-term Debt Current Liabilities Total 250000 150000 200000 1100000 Inventories Debtors Bank Total 200000 250000 50000 1100000 Solution:Statement Showing Cash Flow from Operating Activities Net Loss Add: Decrease in current assets Decrease in Stock Decrease in prepaid expenses Increase in current liabilities Increase in outstanding expenses Increase in bills payable Less: Increase in current assets Increase in short term loan to the employees Increase in bills receivable Decrease in creditors Decrease in provision for doubtful debts Net cash lost in operating activities (38. Overheads (20% of work cost) Amount 15.200) (69.700 .200 (36.600) 3.000) 2.500 0.

000 X 1. It is very helpful in taking managerial decisions.000 2. assuming fixed expenses to remain constant.000 X 0. Management costing Only variable costs are included. and selling and distribution costs.50 1.50 4. volume and profit. Different unit costs are obtained at different levels of output because of fixed expenses remaining the same. CVP relationship is an integral part of marginal costing.000 units) Profit (16. Products are charged only with variable cost. whether to accept the export order or not etc.000) Sales (16. Both the fixed and variable are included to ascertain the cost. Costs are classified according to functional basis such as production cost. Stock of work-in-progress and fixed goods are valued at the marginal cost. Eg:.000 64. Hence marginal costing does not lead to over or under absorption of fixed overheads. The apportionment of fixed expenses on an arbitrary basis gives rise to over or under absorption of overheads.50 Solutions:Absorption Costing It Is known as fully costing.000 24.50 = 24. Costs are classified according to the behavior of costs.Cost of Production Add: Selling overheads (16.fixed costs and variable costs. .000) 34.50 2. Fixed costs are recovered from contribution. It considers the additional cost involved.50) Add: opening stock of Fixed goods Less: Closing stock of fixed goods (1100 X 2) Cost of Sales (sold 16.200 8. Difference between sales and managerial cost is contribution and difference between contribution and fixed cost is profit/loss.00 0. It fails to establish relationship of cost. It affects managerial decisions in certain areas.whether to buy or manufacture.000 X 4 = 64. Fixed cost of a particular period is charged to that very period and is not carried over to the next period. office and administrative cost.200) 40. Managerial cost remains same at different levels of output because variable expenses vary in the same proportion in which output varies.000 Nil (2. Difference between sales and total cost (managerial and fixed cost) is profit. A portion of fixed cost is carried forward to the next period because closing stock of work-inprogress and fixed goods are valued at the cost of production which is inclusive of fixed cost.