prepare profit and loss account both as per financial records and as per cost record 622032

The following figures have been extracted from the financial accounts of V Ltd. for the first year of its operations:

Direct materials consumed	50,000
Productive wages	30,000
Factory overheads	16,000
Administrative overheads	7,000
Selling and distribution overheads	9,600
Bad debts written off	800
Preliminary expenses written off	400
Legal charges	100
Dividend received	1,000
Interest received on bank deposits	200
Sales (12,000 units)	1,20,000

Closing stock:

Finished stock (400 units)	3,200
Work-in-progress	2,400

The cost accounts for the same period reveal that direct materials consumed was Rs. 56,000, factory overheads are recovered at 20% on prime cost, administration overheads are recovered at 60 paise per unit of production, selling and distribution overheads at 80 paise per unit sold.

Prepare profit and loss account both as per financial records and as per cost records. Also reconcile the profits as per the two records.