(When profits as per financial and cost accounts are given). The net profit of A. Co. Ltd. appeared at $41,800 as per financial records for the year ending 31st March, 2019. The cost books, however,...

Extracted text: (When profits as per financial and cost accounts are given). The net profit of A. Co. Ltd. appeared at $41,800 as per financial records for the year ending 31st March, 2019. The cost books, however, showed a net profit of $1,11,900 for the same period. A scrutiny of the figures from both the sets of accounts revealed the following facts : 2$ Works overhead under-recovered in costs Administrative overheads over-recovered in costs 1,500 850 Depreciation charged in financial accounts Depreciation recovered in costs Interest on investments not included in costs 5,600 6,250 3,000 2,850 20,150 Loss due to obsolescence charged in financial accounts Income-tax reserve made in financial accounts Bank interest and transfer fee credited in financial books 370 Stores adjustment (credit) in financial books Value of opening stock in 230 24,800 26,300 25,000 23,000 2,000 1,000 5,000 : Cost accounts Financial accounts Value of closing stock in Cost accounts : : Financial accounts Interest charged in cost accounts Imputed rent charged in cost accounts Goodwill written off Loss on the sale of furniture 600 Selling and distribution expenses not charged in cost accounts Donations to Prime Minister's Relief Fund 10,000 5,100 9,000 20,500 Transfer to Debenture Redemption Fund Transfer to Dividend Equalisation Fund Prepıre (i) a statement showing the reconciliation of net profit as per cost accounts and net 1own in the financial books; (ii) Memorandum Reconciliation Account. profit as