Question

Journalise the following transactions in the Cost Journal assuming that separate cost records are maintained :

	Particulars	Amount (Rs.)
(a)	Credit Purchases for Special job	1,000
(b)	Cash Purchases	1,000
(c)	Returns toSuppliers	1,000
(d)	Materials Returned from Production to Store	1,000
(e)	Materials transferred from Job No. 101 to job No. 102	1,000
(f)	Normal idle time of direct labour	1,000
(g)	Abnormal idle time of labour	1,000
(h)	Direct Expenses	1,000

	Particular	Amount(Rs.)
(i)	Production Overhead incurred	10,000	absorbed 9,900
(j)	Admn. Overhead incurred	10,000	absorbed 10,100
(k)	Selling and Distribution Overhead Incurred	10,000	absorbed 10,000
(l)	Material lost from stores by theft	1,000
(m)	Normal Shortage of materials in stores durlng physical verification	1,000
(n)	Excess of materials found in stores during physical verification	1,000
(o)	Depreciation on Plant and Machinery	10,000
(p)	Material purchased for immediate repair work	1,000
(q)	Return of indirect materials to stores	1,000
(r)	Spoiled work-abnormal	1,000
(s)	Cost of Sales	1,00,000
(t)	Sales	1,20,000
(u)	Transfer of cost incurred on capital order and capitalised in financial A/c.	10,000
(v)	Net profit	20,000

Answer 1

COST JOURNAL

 

Date		Particulars	L.F.	Deblt (Rs.)	Credit (Rs.)
	(a)	Work-In-progress Grand A/C. Dr. OR Special Job A/c. Dr		1.000
		To General Ledger Adjustment A/c.			1.000
		(Being the purchases made for special job)
	(b)	Stores ledger Control A/c.		1,000
		To General Ledger Adjustment A/c.			1,000
		(Being the cash purchases made)
	(c)	General Ledger Adjustment A/c Dr.		1,000
		To Stores Ledger Control A/c.			1,000
		(Being the materials returned from stores to suppliers)
	(d)	Stores Ledger control A/c Dr.		1,000
		To Work-in-Progress Control A/c.			1,000
		(Being the materials returned from  production to Stores)
	(e)	No entry is required in Cost Journal But in the Job Ledger. Job 102 is to be debited and Job 101 is to be credited
	(f)	Factory Overhead Control A/c. Dr.		1,000
		To wages Control A/c.			1,000
		(Being the normal amount of idle time of direct labour transferred to Factory overhead Control No)
	(g)	Costing Profit and Loss A/c. Dr.		1,000
		To Wages Control A/c.			1,000
		(Being the cost of abnormal idle time transferred to Costing Profit and Loss Account)
	(h)	Work-in-progress Control A/c. Dr.		1,000
		To General Ledger Adjustment A/c.			1,000
		(Being the direct expenses mcurred)
	(i)	Factory Overhead Control A/c. Dr.		10,000
		To General Ledger Adjustment A/c.			10,000
		(Being the amount incurred)
		Work-in-progress Control A/c. Dr.		9,900
		To Factory Overhead Control A/c.			9,900
		(Being the amount absorbed on production)
		Costing Profit and Loss Account Dr.		100
		To Factory Overhead Control A/c.			100
		(Being the amount of under-absorption transferred to Costing Profit and Loss Account)
	(j)	Admn. Overhead Control A/c. Dr.		10,000
		To General Ledger Adjustment A/c.			10,000
		(Being the amount incurred)
		Finished Goods Ledger Control Alc. Dr.		10,100
		To Admn. Overhead Control A/C.			10,100
		(Being the amount absorbed)
		Admn. Overhead Control A/c. Dr		100
		To Costing Profit and Loss A/c.			100
		(Being the amount of over-absorption transferred to Costing Profit and Loss. A/c.)
	(k)	Selling and Distribution Overhead Control A/c. Dr.		10,000
		To General Ledger Adjustment A/c.			10,000
		(Being the amount incurred)
		Cost of Sales Account Dr.		10,000
		To Selling and Distribution Overhead Control A/c.			10,000
		(Being the amount absorbed)
	(l)	Costing Profit and Loss A/c.      Dr.		1,000
		To Stores Ledger Control A/c.			1,000
		(Being the materials lost by theft being abnormal loss in nature)
	(m)	Factory Overhead Control A/c. Dr.		1,000
		To Stores Ledger Control A/c.			1,000
		(Being the amount of normal shortage treated as Factory overhead
	(n)	Stores Ledger Control A/c.   Dr.		1,000
		To Factory Overhead Control A/c.			1,000
		(Being the excess of materials found during physical verification)
	(o)	Factory Overhead Control A/c.   Dr.		10,000
		To General Ledger Adjustment A/c.			10,000
		(Being the depreciation on plant and machinery)
	(p)	Factory Overhead Control A/c. Dr.		1,000
		To General Ledger Adjustment A/c.			1,000
		(Being the materials pu1chased 101 repair work)
	(q)	Stores Ledger Control A/c. Dr.		1,000
		To Factory Overhead Control A/c.			1,000
		(Being the indirect materials returned to stores)
	(r)	Costing Profit and Loss A/c. Dr.		1,000
		To Work-in-progress Control A/c.			1,000
		(Being the abnormal spoilage transferred to Costing Profit and Loss Account)
	(s)	Cost of Sales A/c.           Dr.		1,00,000
		To Finished Goods Ledger Control A/c.			1,00,000
		(Being the cost of Sales transferred from finished Stock Account)
	(t)	General Ledger Adjustment A/c. Dr.		1,20,000
		To Costing Profit and Loss A/c.			1,20,000
		(Being the amount of sales transferred to Costing Profit and Loss Account)
	(u)	General Ledger Adjustment A/c. Dr.		10,000
		To Capital Order A/c.			10,000
		(Being the amount of capital order capitalised as an asset)
	(v)	Costing Profit and Loss Account Dr.		20,000
		To General Ledger Adjustment A/c.			20,000
		(Being the amount ofNet Profit Transferred to General Ledger Adjustment A/c)
		Note:
	(a)	If the under absorption or overabsorption is transferred to next year no entry is required
	(b)	If the Supplementary rate is applied
		Work-in-progress Centre] A/c. Dr.		100
		To Factory Overhead Control A/c.			100