Tax Finance Info: Reconciliation of Cost & Financial Accounts

<div dir="ltr" style="text-align: left;" trbidi="on">
<div style="text-align: center;">
<b><span style="font-size: large;">Reconciliation of Cost & Financial Accounts - Dani Ki Costing - CA IPCC Video Lectures</span></b></div>
<div style="text-align: justify;">
<br /></div>
<div style="text-align: justify;">
Reconciliation of Cost & Financial Accounts - Dani Ki Costing - CA IPCC Video Lectures | Reconciliation of Cost & Financial Accounts - Dani Ki Costing - CA IPCC Video Lectures | Reconciliation of Cost & Financial Accounts - Dani Ki Costing - CA IPCC Video Lectures | Reconciliation of Cost & Financial Accounts - Dani Ki Costing - CA IPCC Video Lectures</div>
<br />
<div class="separator" style="clear: both; text-align: center;">
<img border="0" height="241" src="https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEibwZjeEv9tPdSe2nzh7K9s5vWszWGkcnJ7dZ9zB2zPzuGbjBn-wO-ygdOfrRWMwNtCyJnT-LQ840OxAFzmaQmTY7Wc6zHw99IWvunbln9lSr4ISBxGh7XzfeFem_Lj6_R9yJZMOJDu5wNZ/s1600/Reconciliation+of+Cost+&+Financial+Accounts+-+CA-IPCC.jpg" width="320" /></div>
<br />
<div style="text-align: center;">
<span style="font-size: large;"><b>Back to the chapter list of the CA IPCC Video Lectures <a href="http://www.taxfinanceinfo.com/2013/10/ca-ipcc-costing-all-chapters-on-youtube.html">Index</a></b></span></div>
<br />
<div align="center">
<table border="0" cellpadding="0" cellspacing="0" class="MsoNormalTable" style="border-collapse: collapse; margin-left: -1.15pt; mso-padding-alt: 0in 5.4pt 0in 5.4pt; mso-yfti-tbllook: 1184; width: 465px;">
 <tbody>
<tr style="height: 26.25pt; mso-yfti-firstrow: yes; mso-yfti-irow: 0;">
  <td colspan="2" nowrap="" style="background: #4F6228; border: solid windowtext 1.0pt; height: 26.25pt; mso-border-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 349.0pt;" valign="bottom" width="465"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><u><span style="color: white; font-size: 20.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">Dani
  Ki Costing<o:p></o:p></span></u></b></div>
</td>
 </tr>
<tr style="height: 26.25pt; mso-yfti-irow: 1;">
  <td colspan="2" nowrap="" style="background: #4F6228; border-top: none; border: solid windowtext 1.0pt; height: 26.25pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 349.0pt;" valign="bottom" width="465"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<b><span style="color: white; font-size: 20.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;">IPCC
  Video Lectures<o:p></o:p></span></b></div>
</td>
 </tr>
<tr style="height: 52.5pt; mso-yfti-irow: 2;">
  <td colspan="2" style="background: #4F6228; border-top: none; border: solid windowtext 1.0pt; height: 52.5pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 349.0pt;" valign="bottom" width="465"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-size: 27px; text-align: left;"><span style="color: white;"><b>Reconciliation</b></span></span><b><span style="color: white; font-size: 20.0pt; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"> of Cost & Financial Accounts<o:p></o:p></span></b></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 3;">
  <td colspan="2" nowrap="" style="background: #EBF1DE; border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 349.0pt;" valign="bottom" width="465"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<br /></div>
</td>
 </tr>
<tr style="height: 15.75pt; mso-yfti-irow: 4;">
  <td nowrap="" style="background: #EBF1DE; border-top: none; border: solid windowtext 1.0pt; height: 15.75pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 218.4pt;" valign="bottom" width="291"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-size: 12pt;">Lecture
  1<o:p></o:p></span></div>
</td>
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.75pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=jys7pWoxNOo"><span style="color: blue;">Part
  1</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 5;">
  <td nowrap="" rowspan="9" style="background: #EBF1DE; border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 218.4pt;" valign="bottom" width="291"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<br /></div>
</td>
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=GzhrtQt2DS0"><span style="color: blue;">Part
  2</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 6;">
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=VxsB9plZp5Q"><span style="color: blue;">Part
  3</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 7;">
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=R9hiREQpLGc"><span style="color: blue;">Part
  4</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 8;">
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=JcmIuZXIi9c"><span style="color: blue;">Part
  5</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 9;">
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=L0nAL8a17Ps"><span style="color: blue;">Part
  6</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 10;">
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=Lh43SOqWafs"><span style="color: blue;">Part
  7</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 11;">
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=Y7Ln5PVsugU"><span style="color: blue;">Part
  8</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 12;">
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=qlUfZbXLJJ0"><span style="color: blue;">Part
  9</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 13;">
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
</td>
 </tr>
<tr style="height: 15.75pt; mso-yfti-irow: 14;">
  <td colspan="2" nowrap="" style="background: #EBF1DE; border-top: none; border: solid windowtext 1.0pt; height: 15.75pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 349.0pt;" valign="bottom" width="465"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<br /></div>
</td>
 </tr>
<tr style="height: 15.75pt; mso-yfti-irow: 15;">
  <td nowrap="" style="background: #EBF1DE; border-top: none; border: solid windowtext 1.0pt; height: 15.75pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 218.4pt;" valign="bottom" width="291"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-size: 12pt;">Lecture
  2 <o:p></o:p></span></div>
</td>
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.75pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=aSJjJekBwUw"><span style="color: blue;">Part
  1</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 16;">
  <td nowrap="" rowspan="3" style="background: #EBF1DE; border-top: none; border: solid windowtext 1.0pt; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-left-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 218.4pt;" valign="bottom" width="291"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<br /></div>
</td>
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=qXlUbsOGZPg"><span style="color: blue;">Part
  2</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 17;">
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<u><span style="color: blue; mso-ascii-font-family: Calibri; mso-bidi-font-family: Calibri; mso-fareast-font-family: "Times New Roman"; mso-hansi-font-family: Calibri;"><a href="https://www.youtube.com/watch?v=5N9o7hGXK9I"><span style="color: blue;">Part
  3</span></a><o:p></o:p></span></u></div>
</td>
 </tr>
<tr style="height: 15.0pt; mso-yfti-irow: 18;">
  <td nowrap="" style="background: #EBF1DE; border-bottom: solid windowtext 1.0pt; border-left: none; border-right: solid windowtext 1.0pt; border-top: none; height: 15.0pt; mso-border-bottom-alt: solid windowtext .5pt; mso-border-right-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 130.6pt;" valign="bottom" width="174"><div class="MsoNormal" style="margin-bottom: 0.0001pt;">
<br /></div>
</td>
 </tr>
<tr style="height: 15.75pt; mso-yfti-irow: 19; mso-yfti-lastrow: yes;">
  <td colspan="2" nowrap="" style="background: #EBF1DE; border-top: none; border: solid windowtext 1.0pt; height: 15.75pt; mso-border-alt: solid windowtext .5pt; mso-border-top-alt: solid windowtext .5pt; padding: 0in 5.4pt 0in 5.4pt; width: 349.0pt;" valign="bottom" width="465"><div align="center" class="MsoNormal" style="margin-bottom: 0.0001pt; text-align: center;">
<span style="font-size: 12pt;">The
  End<o:p></o:p></span></div>
</td>
 </tr>
</tbody></table>
</div>
<br />
<div style="text-align: center;">
<b><span style="font-size: large;">Back to the chapter list of the CA IPCC Video Lectures <a href="http://www.taxfinanceinfo.com/2013/10/ca-ipcc-costing-all-chapters-on-youtube.html">Index</a></span></b></div>
<br />
<div style="text-align: center;">
<span style="font-size: large;"><b><u>Reconciliation of Cost & Financial Accounts</u></b></span></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US">The units many a
times prepares integrated accounts and many a times non – integrated accounts
are also prepared. Integrated accounts means accounts as per costing and as per
finance are all in one while in non – integrated accounting separate accounts
are maintained as per cost and as per finance. There will always be difference
between accounts maintained as per cost and accounts maintained as per finance.
To make the cost accounts reliable, reconciliation is made to know the reasons
of difference between both accounts. 
Reconciliation is numerical in financial in nature.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US">Reconciliation
is required because many items of financial accounts such as income tax,
dividends, goodwill, interest, losses on sale of investment etc are not
included in cost accounts while items like opportunity cost of capital,
notional loss etc which form part of cost account but are not a part of
financial accounts. There may be difference in financial and cost accounts due
to under or over – absorption of overheads, different base of stock valuation
and many other matters. Reconciliation is useful to ascertain correct product
cost and ensure correct decision making.<o:p></o:p></span></div>
<div class="MsoNormal" style="text-align: justify;">
<br /></div>
<br />
<div class="MsoNormal" style="text-align: justify;">
<span lang="EN-US">Reconciliation
is prepared in three main steps commencing from ascertaining profit as per
financial accounts, then ascertaining profit as per cost accounts and at last
reconciliation of both profits is made. The only reason behind preparation of
reconciliation of cost and financial accounts is the maintenance of non – integrated
accounts. It is not required to be prepared when the integrated accounts are
prepared as both accounts as per finance and cost is one and the same.</span></div>
</div>

Reconciliation of Cost & Financial Accounts - Dani Ki Costing - CA IPCC Video Lectures

Reconciliation of Cost & Financial Accounts - Dani Ki Costing - CA IPCC Video Lectures Reconciliation of Cost & Financial Acco...

+ Read more »