CA Inter P4 · Chapter 7 · Question 1 of 8
Under a non-integrated (cost ledger) accounting system, the account in the cost ledger that records the double entry for items coming from the financial books is the:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Cost Ledger Control Account (General Ledger Adjustment Account)
Explanation
In non-integrated accounts the cost ledger is self-balancing through the Cost Ledger Control Account, also called the General Ledger Adjustment Account. Items such as purchases, wages paid and expenses, which originate in financial accounts, are debited to the relevant control accounts and credited to this account.
More Cost Accounting Systems MCQs
- Q3If closing stock is valued at a higher figure in cost accounts than in financial accounts, then (other things being equal):
- Q4Under an integrated accounting system, the journal entry for direct material issued to production is:
- Q5The entry to record factory overheads absorbed into production in the cost ledger is:
- Q6Which of the following items appears only in the financial accounts and not in the cost accounts?
- Q7Profit as per financial accounts is ₹2,85,000. Factory overheads were under-absorbed in cost accounts by ₹14,000, administration overheads…