Assignment Questions - INTEGRATED & NON-INTEGRATED ACCOUNTING SYSTEM

Assignment Questions

 

INTEGRATED & NON-INTEGRATED ACCOUNTING SYSTEM

 

Question 1.  Gain More Ltd. showed a net loss of Rs. 6,30,000 as per the financial accounts for the year ended 31^st March 2004.  The cost accounts however disclosed a loss of Rs. 5,00,000 for the same period.  On scrutiny of the two accounts of the following are available.

 

Particulars	Rs.
Factory OH under recovered	70,000
Administration OH over-recovered	30,000
Depreciation charged to financial accounts	1,50,000
Depreciation charged in cost accounts	1,20,000
Interest on investment not included in cost accounts	30,000
Income Tax provided in financial accounts	1,00,000
Stores adjustment (credit in financial accounts)	10,000

            Prepare a Memorandum Reconciliation Account.

 

2. Pass journal entries in the books of Non-Integrated Accounting system:

Direct wages paid to workers Rs. 1,000;

Material worth Rs. 100 is transferred from Job 1 to Job 2

Indirect wages paid to workers in the production (Rs. 700), administration (Rs. 500), selling and distribution departments (Rs. 300).

Overhead expenses incurred Rs. 500 (Production Rs.150; Administrative Rs.150; Selling and Distribution Rs.200)

 

 

 

3. Journalise the following transactions assuming that cost and financial transactions are integrated:

a. Raw materials purchased Rs.1,00,000;

b. Direct materials issued to production Rs.50,000

c. Wages paid (20% indirect) Rs.2,00,000;

d. Factory OH incurred Rs.44,000;

e. Finished products (at cost) Rs.2,80,000

f. Receipts from debtors Rs. 60,000

g. Payments to creditors Rs.81,000

 

4.  Find out Under recovery or Over recovery based on the following information;

Overhead	Financial A/c	Cost A/c	Difference
1. Factory OH	3,00,000	3,50,000	50,000
2. Administrative OH	4,50,000	4,20,000	30,000
3. Selling OH	2,20,000	2,10,000	10,000
4. Distribution OH	1,80,000	1,90,000	10,000
5. Opening stock	30,000	38,000	8,000
6. Closing stock	29,000	32,000	3,000

 

 

 

 

 

ANSWER HINTS
Question No.	Answer
1	Memorandum Reconciliation Account Total Rs. 7,00,000
2	Ref. Simplified Approach to costing theory book
3	Ref. Simplified Approach to costing theory book
4	1. Over recovered; 2. Under recovered; 3. Under recovered; 4. Over recovered; 5. Over recovered; 6.Over recovered;