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Answer Posted / smitha
Accounting Year was started From April 1st because
Financial year starts From April 1st of every year and ends
in next financial yearthat is on march 31st so that the
company can report the transactions of the businesss of
that particular business and prepare a balance sheet .An by
preparing the balance sheet the aufditor will come to know
whether the company has any profit or Loss for the company
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hdn Systems Pvt. Ltd., manufactures a consumer durable which passes through two processes M and N. From the following details prepare necessary process ledger accounts bringing out clearly the cost of the product at each stage. Process ‘M’ Process ‘N’ Materials (Rs.) 30,000 3,000 Labour (Rs.) 10,000 12,000 Overheads (Rs.) 7,000 8,600 Input (units) 20,000 17,500 Normal loss 10% 4% Scrap value of loss (per unit) Re. 1.00 Rs. 2.00 There is no opening or closing W-I-P or stock at processes. Final output from the process ‘N’ was 17,000 units
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