Reconciliation of Cost and Financial Accounts

What is a Memorandum Reconciliation Account? Reconciliation of Cost and Financial Accounts may also be presented in the form of an account prepared on memorandum basis. Such an account is known as “Memorandum Reconciliation Account“. The amount of profit as per cost accounts is shown on the credit side of this account. The various items …

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Introduction of Reconciliation of Cost and Financial Accounts Cost accounts are maintained independent of financial accounts. These two accounts have different aims to fulfill. In the financial account, expenses are recorded in a subjective form, that is, according to their nature in a strict sense of the term. On the other hand, the cost accounts …

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