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Receipts of income from share transfer Rs.200 Provision made for Income tax Rs.48500 Profit as per cost accounts 1,45,000 950 cxcess depreciation in cost books Interest on investments in financial books Share transfer fee in financial books 495 200 1,645 1,46,645 3500 Factory overhead under recovered Office overhead under recovered Income tax provided in financial books 1500 48500 53500 529 Problem: The Net profit of Sundar Co., Ltd., appeared at Rs.8200 as per financial records for the year ending 31st March 2003. The cost books should showed a Net profit of Rs.90,000 for the same period A scrutiny of the figures from both the sets of accounts showed the following facts. 1. Factory overhead under recovered in costs 2,000 2. Adrniriistrative overhead over recovered in costs 1,000 3. Depreciation charged in financial books 4,500 4. Depreciation recovered in Costs 7,000 5. Interest on investments not included in costs3,000 6. Goodwill written off in financial books 6,000 7. Preliminary expenses written off in financial books 5,000 8. Income tax provided in financial books v: 10,000 9. Loss due to obsolescence charged in financial books 3,500 10. Bank interest and transfer fee credited in financial books 9,000 11. Stores Adjustments credited in financial books 9,000 12. Value of opening stock: a) Cost a/c 7000 b) Financial a/c9000 13. Value of closing stock: a) Cost a/c 12000 b) Financial a/c 8000 c) Interest charged in cost a/c 6000 d) Loss and sale of furniture 1000 Prepare a statement showing the reconciliation between the figure of net profit as per cost A/Cs and figure of net profit as shown in the financial books

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