Chapter 12
Cost reconciliation statement
NEB Class 12 past exam questions
Past questions and answers
7 questions set from this chapter, 1 of them more than once. Most repeated first.
- Asked 2 times
- 2083 Baishakh · 3 marks
- 2079 Jestha · 5 marks
The comparison between cost accounts and financial accounts reveals the following information:
a. Net profit as per cost account: Rs. 3,50,000
b. Bank interest credited in financial records: Rs. 2,000
c. Work overhead under-recorded in cost account: Rs. 10,000
d. Income tax recorded in financial account: Rs. 80,000
Required: Prepare a Cost Reconciliation Statement.
Answer
Cost Reconciliation Statement
| Particulars | Rs |
|---|---|
| Net profit as per cost account | 3,50,000 |
| Add: Bank interest credited only in financial account | 2,000 |
| 3,52,000 | |
| Less: Works overhead under-recorded in cost account | (10,000) |
| Less: Income tax recorded only in financial account | (80,000) |
| Net profit as per financial account | 2,62,000 |
Working notes
- Bank interest is income found only in the financial account, so it is added.
- Works overhead under-recorded means the cost account charged too little, so cost profit is overstated; it is deducted.
- Income tax is charged only in the financial account (an appropriation not in cost accounts); it is deducted.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2082 Baishakh · 5 marks
On comparison of cost and financial accounts, the following facts were disclosed:
a) Net profit as per cost account: Rs. 25,000
b) Factory overhead over recorded in cost account: Rs. 10,000
c) Over valuation of opening stock in cost account: Rs. 5,000
d) Depreciation under recorded in cost account: Rs. 3,000
Required:
Cost reconciliation statement.
Answer
Cost Reconciliation Statement
| Particulars | Rs | Rs |
|---|---|---|
| Net profit as per cost account | 25,000 | |
| Add: Factory overhead over-recorded in cost account | 10,000 | |
| Add: Over-valuation of opening stock in cost account | 5,000 | 15,000 |
| 40,000 | ||
| Less: Depreciation under-recorded in cost account | (3,000) | |
| Net profit as per financial account | 37,000 |
Working notes
- Factory overhead over-recorded: the cost account charged more expense than the financial account, so cost profit is understated; add.
- Opening stock over-valued in the cost account: a higher opening stock raises the cost of goods sold, so cost profit is understated; add.
- Depreciation under-recorded: the cost account charged less expense, so cost profit is overstated; deduct.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2082 Supplementary · 3 marks
Following information are given:
a. Net profit shown by financial account Rs. 40,000.
b. Interest received only recorded in financial account Rs. 5,000.
c. Over valuation of closing stock in cost account Rs. 15,000.
d. Office overhead under recorded in cost account Rs. 10,000.
Required: Cost reconciliation statement.
Answer
Cost Reconciliation Statement (starting from financial profit)
| Particulars | Rs | Rs |
|---|---|---|
| Net profit as per financial account | 40,000 | |
| Less: Interest received (recorded only in financial account) | (5,000) | |
| 35,000 | ||
| Add: Over-valuation of closing stock in cost account | 15,000 | |
| Add: Office overhead under-recorded in cost account | 10,000 | 25,000 |
| Net profit as per cost account | 60,000 |
Working notes
- Interest received is a financial income not taken in cost accounts, so it is deducted.
- Closing stock over-valued in the cost account raises cost profit above financial profit, so it is added to reach cost profit.
- Office overhead under-recorded in the cost account means cost accounts charged less expense, so cost profit is higher; it is added.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2081 Baishakh · 3 marks
On reconciliation of cost and financial account following facts were located:
Heads of Expenses Financial Account (Rs.) Cost Account (Rs.) Depreciation 65,000 85,000 Closing stock 25,000 20,000 Dividend received 5,000 – Profit as per cost account – 95,000
Required:
Reconciliation statement of cost and financial account
Figure: Table of reconciliation data.
Answer
Reconciliation Statement of Cost and Financial Accounts
| Particulars | Rs |
|---|---|
| Profit as per cost account | 95,000 |
| Add: Excess depreciation charged in cost account (85,000 − 65,000) | 20,000 |
| Add: Higher closing stock in financial account (25,000 − 20,000) | 5,000 |
| Add: Dividend received (only in financial account) | 5,000 |
| Profit as per financial account | 1,25,000 |
Working notes
- Cost account charged Rs 20,000 more depreciation, so financial profit is higher; add.
- Closing stock is Rs 5,000 higher in the financial account, so financial profit is higher; add.
- Dividend received is income found only in the financial account; add.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2080 Baishakh · 3 marks
On comparison between cost accounting and financial accounting, following facts were located:
i) Profit as shown by financial accounting Rs. 80,000
ii) Office expenses over recorded in financial accounting by Rs. 15,000
iii) Depreciation over recorded in cost accounting by Rs. 5,000
iv) Income tax payment of Rs. 6,000 only recorded in financial accounting
Required:
Reconciliation statement of financial accounting and cost accounting
Answer
Reconciliation Statement (financial profit to cost profit)
| Particulars | Rs |
|---|---|
| Profit as per financial accounts | 80,000 |
| Add: Office expenses over-recorded in financial accounts | 15,000 |
| Add: Income tax recorded only in financial accounts | 6,000 |
| 1,01,000 | |
| Less: Depreciation over-recorded in cost accounts | (5,000) |
| Profit as per cost accounts | 96,000 |
Working notes
- Office expenses over-recorded in the financial accounts lowered financial profit; add back.
- Income tax is a financial charge not found in cost accounts; add back.
- Excess depreciation in cost accounts lowered cost profit only; deduct.
Answer checked by Claude Sonnet · Oct 21, 2026
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- 2079 Model Set B · 3 marks
Following facts were discovered from cost and financial accounting:
a. Net profit as per financial account Rs. 77,000.
b. Over valuation of opening stock in cost account Rs. 20,000.
c. Administrative expenses under absorbed in cost account Rs. 30,000.
d. Dividend received recorded in financial account Rs. 20,000.
Required: Cost reconciliation statement.
Answer
Reconciliation statement (from financial profit to cost profit)
| Particulars | Rs | Rs |
|---|---|---|
| Net profit as per financial accounts | 77,000 | |
| Add: Administrative expenses under-absorbed in cost accounts | 30,000 | 30,000 |
| Less: Over-valuation of opening stock in cost accounts | (20,000) | |
| Less: Dividend received (financial income only) | (20,000) | (40,000) |
| Profit as per cost accounts | 67,000 |
- Administrative expenses charged in cost accounts were Rs 30,000 less than the actual expense charged in the financial accounts, so cost profit is higher.
- Opening stock was over-valued in the cost accounts, which raised the cost of goods sold and lowered cost profit.
- Dividend received is a financial income that is not recorded in cost accounts, so it is deducted.
Working: .
Answer checked by Claude Sonnet · Oct 21, 2026
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- NEB Class 12 2079 Accounting Model Question Set A · 3 marks
On reconciliation of Financial and Cost Accounting, following facts were disclosed:
i. Profit shown by cost account Rs. 420,000.
ii. Works overhead under recorded in cost account Rs. 25,000.
iii. Office overhead under recovered in financial account Rs. 15,000.
iv. A profit on sale of fixed assets was shown in financial account Rs. 5,000.
Required: Cost reconciliation statement [3]
Answer
Cost Reconciliation Statement (cost profit to financial profit)
| Particulars | Rs |
|---|---|
| Profit as per cost account | 4,20,000 |
| Less: Works overhead under-recorded in cost account | (25,000) |
| Add: Office overhead under-recovered in financial account | 15,000 |
| Add: Profit on sale of fixed assets (only in financial account) | 5,000 |
| Profit as per financial account | 4,15,000 |
Working notes
- Works overhead under-recorded in the cost account: cost profit is overstated relative to financial profit; deduct.
- Office overhead under-recovered in the financial account: the financial account charged Rs 15,000 less expense, so financial profit is higher; add.
- Profit on sale of fixed assets appears only in the financial account; add.
Answer checked by Claude Sonnet · Oct 21, 2026
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Questions from NEB Class 12 2083 Accounting (Board exam, Baishakh 2083), NEB Class 12 2082 Accounting (Board exam, Baishakh 2082), NEB Class 12 2082 Accounting Supplementary Set A (Grade-increment / supplementary exam, Set A), NEB Class 12 2081 Accounting (Board exam, Baishakh 2081), NEB Class 12 2080 Accounting (Board exam, Baishakh 2080), NEB Class 12 2079 Accounting (Board exam, Jestha 2079), NEB Class 12 2079 Accounting Model Question Set A (NEB model paper, Set A) and NEB Class 12 2079 (2023) Accounting 1041 Model Question Set B (NEB model question paper, Set B, 2079 (2023); Set A is already on the site as neb-model-2079). Answers are written for this site; check them against your class notes.
Chapter titles and hours from the official syllabus ↗