RECONCILIATION OF COST AND FINANCIAL ACCOUNT-
We have to compromise of cost and money related records like compromise of bank proclamations and money book. With this, we can discover the distinction in benefit or misfortune which are appeared according to cost accounts and monetary records
Compromise of Cost and Financial Accounts is procedure to discover every one of the explanations for difference in benefit which is ascertained according to cost accounts and according to money related records. There are bunches of things which are appeared in the benefit and misfortune account just when we make it according to monetary bookkeeping rules. There are heaps of things which are appeared in costing benefit and misfortune account just when we compute benefit according to cost bookkeeping.
Assume, we have assumed the benefit or misfortune according to budgetary records, we change it according to cost accounts. Toward the finish of modifications, we see same benefit according to cost accounts. In the event that we have taken benefit according to cost account, we need to alter things according to money related records. For this reason, we put forth compromise Expression.
Second . We need to modify things according to cost accounts
In this, we take the benefit according to budgetary records to start with, we include every one of the circumstances which we have appeared in less in over first Case. We deduct every one of the things which we have appeared above in Add in first Case. After this, adjust will be the benefit or misfortune according to cost accounts.