During the year a companys profits have been estimated from the costing system to be Rs. 46,126, whereas the financial accounts audited by the auditors disclose a profit of Rs. 33,248. Given the following information, you are required to prepare a reconciliation statement showing clearly the reasons for the difference:

(a). Stock ledger closing balance is Rs. 1,56,394; 

(b). Credit balance in wages control account is Rs. 49,734; 

(c). Credit balance in factory overhead control account is Rs. 39,428; 

(d). Administration expenses are charged to sales at 3% of selling price in cost accounts; 

(e). Selling price includes 5% (on sales) provision for selling expenses; 

(f). Sundry incomes is not considered in cost accounts.

Transcribed Image Text:

To Opening Stock To Purchases Less: Closing Stock To Direct Wages To Factory Overhead To Gross Profit c/d To Administration Expenses To Slling Expenses To Net Profit Rs. 4,94,358 1,64,308 6,58,666 1,50,242 5,08,424 46,266 41,652 96,658 6,93,000 19,690 44,352 33,248 97,290 By Sales By Gross Profit b/d By Sundry Income Rs. 6,93,000 6,93,000 99,658 632 97,290