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Mention four items which are purely financial charge, four items which are purely recorded in cost records and two items which take place in both the records. |
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Answer» Few items which are purely financial charge, which are only recorded in Cost accounting and few items which are common in both financial records and cost records are as under: Purely financial charge – examples: a) Loss on sale of capital assets b) Discount on bonds, debenture etc. c) Loss on investment d) Interest on bank loans and mortgages. e) Fines and penalties f) Provision for bad and doubtful debt g) Amount written off, goodwill, discount on debentures, preliminary expenses h) Loss due to theft, pilferage, etc. Items shown only in cost accounts: a) Notional rent, i.e., charges on owned premises. b) Notional salaries c) Depreciation on fully depreciated assets still in use. Items shown in both cost accounting and financial accounting: a) Depreciation on Plant and Machinery, Depreciation on office equipment etc. b) Factory rent, c) Salary of clerks, d) Salesman Commission etc. |
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