Costing Accounting Concepts of Integral and non integral accounting, different procedure for cost accounting and financial accounting

1. - VR Talsaniya

4. Accounting
Integral Non -Integral
All accounts
prepared together
i.e. financial as
well as cost A/cs
Financial A/cs
& cost A/cs
prepared
separately

5. 1.Fixed cost including in closing stock
W
I
P
F
G
C
O
G
S
P
&
L
SALE
DM
DL
ABNORMAL
Profit
OHs
Admin.OHs S & D OHs
OR
1
2
3
4
5 6
7
8
9
10

6. DM
MCC A/C
Particulars Rs. Rs.Particulars
To. Op. stock
By. Cl. stock
To. Purchase :-
Cash & bank
Creditor
To. Purchase Exp.
By. WIP A/c
By. Normal loss
By. Abnormal loss
By. Goods does out
By any reason
SV
By. AOHs CC A/c

7. DL
LCC A/C
Particulars Rs. Rs.Particulars
To. Cash & Bank
To. Creditors A/c
By. WIP A/c
By. OTP :-
By. Idle time :-
Normal
Abnormal
Need of work
Customer demand
Working
Non-working
Abnormal
√
P&L
OHs A/c
Drs
√
OHs A/c
P&L
By. AOHs CC A/c

8. Particulars Rs. Rs.Particulars
To. Cash & Bank
To. Creditors A/c
By. WIP A/c
By. P & L A/c :-
P&L
P&L
OHs
FOHs CC A/C
To. LCC A/c
Idle time
OTP
To. Over Absorp.
Bal. C/f
P & L A/c
WIP A/c (S/R)
VOHs & FOHs
VOHs
Total OHs
FOHs
By. Under Absorp.
Bal. C/f
P & L A/c
WIP A/c (S/R)
(marginal)
Abs.d

9. WIP
WIP A/C
Particulars Rs. Rs.Particulars
To. Op. stock
By. Cl. stock
To. MCC A/c
To. Abn. Gain
By. WIP A/c
By. Normal loss
By. Abnormal loss
By. Goods does out
By any reason
SV
To. LCC A/c
To. FOHs CC A/c
VOHs & Total OHs
F/G A/c
i.e. factory cost

10. There two approaches for AOHs
1. India opinion 2. Foreign opinion
Will be charged to
final product
i.e. on COP .
Will be charged to
sold product
i.e. on COS.
FC ******
+ AOH *******
COP ***********
COGS ******
+ AOH
+ S&D
*******
COP ***********
Admin.OH
s

11. AOHs A/C
Particulars Rs. Rs.Particulars
To. Cash & bank
By. P & L A/c
To. MCC A/c
By. F/G A/c (V/ V+F)
By. P & L A/c
By. COGS (V/ V+F)
To. LCC A/c
To. Creditors A/c
Admin.OHs
Option - 1
F OHs (marginal)
Option - 2
F OHs (marginal)

12. S & D A/C
Particulars Rs. Rs.Particulars
To. Cash & bank
By. P & L A/c
By. COGS (V/ V+F)
To. Creditors A/c
S & D OHs
F OHs (marginal)
F/G A/C
Particulars Rs. Rs.Particulars
To. Op. Stock
By. Reason A/c
By. P & L A/c (Abn.)
To. AOHs A/c
(V/ V+F) (goods goes out by any way)
To. WIP A/c
(Factory cost)
By. COGS A/c
By. Cl. Stock A/c

13. S & D A/C
Particulars Rs. Rs.Particulars
By. Cash & bank
By. Creditors A/c
COGS A/C
Particulars Rs. Rs.Particulars
To. F/G A/c By. Costing P & L A/c
To. AOHs A/c
(V/ V+F)
Sale A/C
To. S & D A/c
(V/ V+F)
To. Costing P & L A/c
Op-2

14. Costing P&L A/C
Particulars Rs. Rs.Particulars
To. COGS A/c
By. ProfitTo.
By. Sales A/c
To. Under Abs FOHs
To. Abnormal loss
To. F OHs(if marginal)
MCC
LCC( Idle+OTP )
F/G A/c
By. Over Abs FOHs
AOHs
S & D Exp.
( Sales – COGS )( COGS – Sales )

15. Accounting
Integral Non -Integral
All accounts
prepared together
i.e. financial as
well as cost A/cs
Financial A/cs
& cost A/cs
prepared
separately

16. Cr
All financial Accounts
Cr
Dr
Dr
Dr
Cr
Dr
Cr
Cr Dr DrCrCr Dr
General ledger adjustment A/c