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Link between Financial and Cost Books
The link among the two sets of books is achieved via operating a cost ledger control account and a financial ledger control account. Cost Ledger Contra Account such in the financial and cost books respectively. All the items that affect the costs accounts are recorded in the cost ledger control account, the similar items are recorded in the financial ledger control accounts, however on the opposite side of the account thus the account completes the double entry. The Cost Ledger Control Account is only a memorandum entry and is hence made in addition to the common entries in the financial books of account.
What are the dependent and independent variables in Cost Accounting??
format of manufacturing,tradind,p/l a/c
These are losses on account of uncollectable debts. While the amount due from debtors is irrecoverable, it is termed as bad debts. Bad debts, being loss are closed through transfer
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