Reconciliation of cost and financial accounts in the modern computer a

1.	Reconciliation of cost and financial accounts in the modern computer age is redundant . comment
Answer» Where cost accounts and financial accounts are separately maintained in two different sets of books, the profit or loss shown by one may not agree with that shown by other. Therefore, it becomes NECESSARY that PERIODICALLY the profit or loss shown by the two sets of accounts is reconciled. A memorandum of reconciliation is PREPARED showing the reasons for difference between the RESULTS disclosed by each system. It is done to CHECK the arithmetical accuracy of both sets of accounts as well as to detect mistakes committed in the accounts.

Reconciliation of cost and financial accounts in the modern computer age is redundant . comment

Answer»

Where cost accounts and financial accounts are separately maintained in two different sets of books, the profit or loss shown by one may not agree with that shown by other. Therefore, it becomes NECESSARY that PERIODICALLY the profit or loss shown by the two sets of accounts is reconciled.

A memorandum of reconciliation is PREPARED showing the reasons for difference between the RESULTS disclosed by each system. It is done to CHECK the arithmetical accuracy of both sets of accounts as well as to detect mistakes committed in the accounts.

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