Page 43 - Cost Accounting - Ready Reckoner

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CHAPTER – 14

Integral Accounts

This financial system aims at integrating financial and cost accounts in same set
of books, thus avoiding the need to reconcile financial and costing profits.

The scheme of journal entries in integrated accounting can be easily
remembered as take debit from cost accounts and credit from financial accounts (except
in case of sale and return entries).

Sl. Transaction Financial Cost Accounts Integral Accounts
No. Accounts

(i) Credit purchase of Purchases A/c Dr Material Control A/c Dr Material Control A/c Dr
Material To, Creditors A/c To, General Ledger A/c To, Creditors

Cash Purchase of Purchases A/c Dr Material Control A/c Dr Material Control A/c Dr
materials To Bank/Cash A/c To, General Ledger A/c To, Cash A/c
(iii) Purchase of special Purchases A/c Dr WIP Control A/c Dr WIP Control A/c Dr
material for direct To, Cash/Creditors. To, General Ledger Adj A/c To, Cash or Creditors A/c
use in job A/c
(iv) Purchase of materials Purchases A/c Dr Factory OH control A/c Dr Factory OH control A/c Dr
for repairs To, Cash/Creditors. To, General Ledger Adj A/c To, Cash / Creditors A/c
A/c