Cost Control Accounts (Integrated & Non Integrated Accounts) - Dani Ki Costing - CA IPCC Video Lectures

Cost Control Accounts (Integrated & Non Integrated Accounts) - Dani Ki Costing - CA IPCC Video Lectures

Cost Control Accounts (Integrated & Non Integrated Accounts) - Dani Ki Costing - CA IPCC Video Lectures | Cost Control Accounts (Integrated & Non Integrated Accounts) - Dani Ki Costing - CA IPCC Video Lectures | Cost Control Accounts (Integrated & Non Integrated Accounts) - Dani Ki Costing - CA IPCC Video Lectures | Cost Control Accounts (Integrated & Non Integrated Accounts) - Dani Ki Costing - CA IPCC Video Lectures

Back to the chapter list of the CA IPCC Video Lectures Index

Dani Ki Costing
IPCC Video Lectures
Cost Control Accounts (Integrated & Non Integrated Accounts)
Lecture 1	Part 1
	Part 2
	Part 3
	Part 4
	Part 5
	Part 6
	Part 7
	Part 8
	Part 9
The End

Back to the chapter list of the CA IPCC Video Lectures Index

Cost Control Accounts (Integrated and Non – Integrated Accounts)

To measure the efficiency of any business, the prerequisite is that, the accounts must be properly maintained. To maintain uniformity in accounts, accounting standards are issued. But there can be other main classification in accounts i.e. Integrated and Non – Integrated Accounts. Maintenance of accounts may differ from business to business as per the nature of business. Some business may be carrying out trading activities or in some business manufacturing may also be involved.

The case where Accounts as per Cost and Accounts as per finance are not maintained separately, such a system is known as Integrated Accounting system. All the transactions relating to manufacturing such as stores inward, stores transfer, stock loss etc which are known as cost transactions and all the transactions such as sales, interest received, salary paid, etc which are known as financial transactions are all recorded in one accounting system and no bifurcation of transaction is made.

While in the case of non – integrated accounts, all the transactions relevant to cost accounts are recorded in the cost accounting system and the transaction as per Financial Accounts are recorded in the Financial accounting system. At the end of the period, reconciliation has been made between profits derived as per both accounting systems and reasons for such difference are found out for the purpose of decision making and accuracy.

Integrated accounting system has its own advantages such as it requires less times and less efforts in preparing the same along with saving the time and resources. While the non – integrated accounting system has its own advantage that it can easily deal with notional expenses like interest, rent, etc. Accounts like cost ledger control accounts, stores ledger control accounts, etc are prepared in Non – integrated accounting system.