2. Stores transactions are recorded in the stores control account. This account is debited with the cost of stores purchased corresponding credit being given to cash or sundry creditors depending whether the purchase is made for cash or on credit. 3. Wages control account is debited with the wages paid, contra credit is taken in cash or bank account 4. Overhead expenses are debited to the overhead control account, corresponding credit being given to cash or band account or the sundry creditors. 5. Transactions relating to material, labour cost overheads are posted in the stores wages and overhead control account after making suitable cost analysis and tat the end of the period transfer of the totals is made to the wok in progress accounts by crediting various control accounts. The day to day cost analysis made for this purpose is known as making third etc. These entries do not mean entries in the same sense a entry of transaction in the ledger but such entries are simply a sort of cash analysis. 6. All advance payments are credited and accruals debited to the respective control account by contra entries in the prepayments and accrual accounts. 7. Capital asset account is debited and respective control accounts are credited in the process of cost analysis of capital expenditure. It is also important to note that integrated accounts are like a hybrid between non-integrated and the financial system of accounting as in case of the non-integrated system, No personal or real accounts are prepared and all entries are passed through the general ledger adjustment account. In the financial accounting system, there is no base of the cost accounting. In the integrated system of accounting, personal and real accounts are prepared but there exists a base of the cost accounting system r59 For Example. The same entry when passed through the three systems of accounting look like: Particulars Financial Integrated Non-Integrated Material Purchased Purchase A/c.. Dr. Stores Ledger Control Ac... Dr. Stores Ledger Control A/c... To Sundry Cr/Bank Ale To Sundry Cr/Bank Ale To General Ledger Adjustment Alc Payment of Wages Wages Alc Dr Wages Control Ale... Dr. Wages Control Alc... To Cash/Bank A/C To Cash Bank A/C To General Ledger A/C Dr Dr While passing entries in any system of accounting, follow the steps: 1. Visualise the accounting entry in the financial system of accounting; 2. Then replace the cost head, by the head in the costing system of accounting: 3. In case of the non-integrated system, and additional step is replacing any personal or real A/c by the General Ledger Adjustment A/c. Illustration 1 Pass Journal Entries in the Cost Books (non-integrated systems for the following transactions. (a) Materials worth 50,000 returned to stores from job (b) Gross total wages paid 296,000. (c) Employer's contribution to PF and State Insurance amount to 34000. (d) Wages analysis book detailed 340,000 direct labour, (e) 24,000 towards indirect factory labour (1) $20,000 towards salaries to office staff and 16,000 for salaries to selling and distribution staff