In a non-integrated accounting system two different sets of accounting records are maintained for Financial Accounting and Cost Accounting purposes. This system is also called as 'cost ledger accounting system'. The Cost Accounts are also maintained in double entry bookkeeping as in the case of Financial Accounts. The non-integrated system of accounting is followed in the following situations when: (a) [...]
In this article we will discuss about:- 1. Benefits of Integrated Accounting System 2. Prerequisites for Integration of Accounts 3. Accounting Entries under Both Methods. CIMA defines that "integrated accounting system refers to the interlocking of the financial and cost accounting systems to ensure all relevant expenditure is absorbed into the cost accounts. Under this accounting system transactions are classified [...]
The following points highlight the top eleven principal accounts to be maintained in cost ledger. The principal accounts are: 1. General Ledger Adjustment Account 2. Stores Ledger Control Account 3. Wages Control Account 4. Work-in-Progress Ledger Control Account 5. Finished Goods Ledger Control Account 6. Factory Overhead Control Account 7. Administration Overhead Control Account 8. Cost of Sales Account and [...]