Author Topic: Reason for variation between the cost and financial profit  (Read 14 times)

Offline MD. ABDUR ROUF

  • Jr. Member
  • **
  • Posts: 73
  • Test
    • View Profile
    • Google Scholar
Reason for variation between the cost and financial profit
« on: December 08, 2018, 01:41:33 PM »
Items shown only in the financial accounts: There are certain types of items appear in financial books but not in cost books. The items may be classified as under:-
(a)Purely financial Charges:
          (i)    Loss on sales of fixed assets
          (ii)   Interest bank loan, mortgages and debentures
          (iii) Expenses of capital nature
          (iv)  Loss due to machinery scrap
          (v)  Cash discount etc.
(b) Purely financial Incomes:
         (i)   Rent on sublet
         (ii)  Profit on the sales of fixed assets
         (iii) Interest and dividend received
         (iv) Discount or commission received
(c) Appropriation of profits:
        (i) Donation and charities
        (ii) Income tax
        (iii) Dividend paid
        (iv)Transfers to reserve and sinking funds
Dr. Md. Abdur Rouf
Assistant Professor of Accounting
Faculty of Business and Economics
Daffodil International University