Reconcliation query

This query is : Resolved

pratapchaudhary (Querist)
Follow

14 January 2015 Pls tell us that at the time of reconciliation if we are taking profit/loss of cost A/c as base then why we deduct undervaluation thing from cost A/c if it is undercharged in Cost A/c.Why we did not add it in cost A/c as the item is undercharged in Cost A/c

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

14 January 2015 no no no... seems to be some confusion.... What you are saying is correct...

Going from Cost A/c profit to Financial Profit, the undercharged cost MUST be added so as to arrive at profit as per financial A/c

Can you quote some numerical example?

pratapchaudhary

pratapchaudhary (Querist)
Follow

15 January 2015 there is an question in which we are taking cost A/c Profit as base .and the adjustment is....
Factory Overhead is undercharged in cost A/c by Rs 5500 .If we take as per the logic then we will add it in cost A/c but in reality it is not done. and the adjustment which i have mentioned is of IPCC question paper.pls help me in the query.pls

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

15 January 2015 What you are saying is CORRECT. It MUST be added.

(One small curiosity...since you mentioned IPCC.... read the question VERY meticulously If it is same what you are saying in this query.... your contention is CORRECT...
Another stray possibility is "Printing Mistake)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now