During the year ended 31 March 1998 a company’s profit as per financial accounts was Rs 16,624.

Prepare a reconciliation statement and arrive at the profit as per cost accounts using the additional information given below:

Profit and loss account year ended 31 March 1998 Rs Rs Opening stock 2,47,179 Sales 3,46,500 Purchases 82,154 Closing stock 75,121 Direct wages 23,133 Sundry income 316 Factory overheads 20,826 Administration expenses 9,845 Selling expenses 22,176 Net profit 16,624 4,21,937 4,21,937 The costing records show:

(a) Closing stock = Rs, 78, 197;

(b) direct wages = Rs 24,867;

(c) factory overheads absorbed= Rs 19,714;

(d) administration expenses calculated at 3% of sales; and

(e) selling expenses absorbed at 5% of sales.